# EDGAR Filing Document

**Accession Number:** 0002087419
**File Stem:** 0001104659-25-092204
**Filing Date:** 2025-9
**Character Count:** 1377506
**Document Hash:** b22099fc09334a3a65592a986f6477c8
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001104659-25-092204.hdr.sgml**: 20250923

**ACCESSION NUMBER**: 0001104659-25-092204

**CONFORMED SUBMISSION TYPE**: S-1

**PUBLIC DOCUMENT COUNT**: 56

**FILED AS OF DATE**: 20250923

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** PSB Financial, Inc.
- **CENTRAL INDEX KEY:** 0002087419

**ORGANIZATION NAME:**
- **EIN:** 000000000
- **STATE OF INCORPORATION:** MD
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** S-1
- **SEC ACT:** 1933 Act
- **SEC FILE NUMBER:** 333-290457
- **FILM NUMBER:** 251331154

**BUSINESS ADDRESS:**
- **STREET 1:** 202 NORTH MAIN STREET
- **CITY:** DEER LODGE
- **STATE:** MT
- **ZIP:** 59722
- **BUSINESS PHONE:** 406-846-2202

**MAIL ADDRESS:**
- **STREET 1:** 833 E MICHIGAN STREET
- **STREET 2:** SUITE 1800
- **CITY:** MILWAUKEE
- **STATE:** WI
- **ZIP:** 53202

[**TABLE OF CONTENTS**](#TOC)

#### As filed with the Securities and Exchange Commission on September 22, 2025

#### Registration No. 333-

### UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549

### FORM S-1

#### REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933
**PSB Financial, Inc.** 

(Exact Name of Registrant as Specified in Its Charter)

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| | | |
|:---|:---|:---|
| **Maryland** <br> (State or Other Jurisdiction of <br> Incorporation or Organization)  | **6036** <br> (Primary Standard Industrial <br> Classification Code Number)  | **39-4296886** <br> (I.R.S. Employer <br> Identification Number)  |

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#### 202 North Main St. P.O. Box 191 Deer Lodge, Montana 59722 (406) 846-2202
(Address, Including Zip Code, and Telephone Number, Including Area Code, of Registrant's Principal Executive Offices)

#### Phillip K. Willett President and Chief Executive Officer 202 North Main St. P.O. Box 191 Deer Lodge, Montana 59722 (406) 846-2202
(Name, Address, Including Zip Code, and Telephone Number, Including Area Code, of Agent for Service)

#### Copies to:

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| | |
|:---|:---|
| **Jason E. Kuwayama, Esq. <br> C.J. Wauters, Esq. <br> Godfrey & Kahn, S.C. <br> 833 East Michigan St., Suite 1800 <br> Milwaukee, Wisconsin 53202 <br> (414) 273-3500**  | **Michael Krebs, Esq. <br> Kate Henry, Esq. <br> Nutter, McClennen & Fish, LLP <br> 155 Seaport Boulevard <br> Boston, Massachusetts <br> (617) 439-2000**  |

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**Approximate date of commencement of proposed sale to the public**: As soon as practicable after this registration statement becomes effective.

If any of the securities being registered on this Form are to be offered on a delayed or continuous basis pursuant to Rule 415 under the Securities Act of 1933, check the following box: ☐

If this Form is filed to register additional shares for an offering pursuant to Rule 462(b) under the Securities Act, please check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering: ☐

If this Form is a post-effective amendment filed pursuant to Rule 462(c) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering: ☐

If this Form is a post-effective amendment filed pursuant to Rule 462(d) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering: ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company" and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☐ Accelerated filer ☐ <br> Non-accelerated filer ☒ Smaller reporting company ☒ <br> Emerging growth company ☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 7(a)(2)(B) of the Securities Act. ☐

 **The registrant hereby amends this registration statement on such date or dates as may be necessary to delay its effective date until the registrant shall file a further amendment which specifically states that this registration statement shall thereafter become effective in accordance with Section 8(a) of the Securities Act of 1933 or until the registration statement shall become effective on such date as the Securities and Exchange Commission, acting pursuant to said Section 8(a), may determine.** 

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#### PROSPECTUS
![[MISSING IMAGE: lg_psbfinancialinc-4c.jpg]](lg_psbfinancialinc-4c.jpg)

 **(Proposed Holding Company for Pioneer State Bank, successor to Pioneer Federal Savings and Loan Association) Up to 1,380,000 Shares of Common Stock (Subject to Increase to up to 1,587,000 Shares)** 

PSB Financial, Inc., referred to as "PSB Financial" throughout this prospectus, is offering shares of its common stock for sale in connection with the conversion of Pioneer Federal Savings and Loan Association, referred to as "Pioneer Federal" throughout this prospectus, from the mutual form of organization to the stock form of organization as a new entity to be known as "Pioneer State Bank." There is currently no market for our common stock. We expect our common stock to be quoted on the OTCQB Market operated by OTC Markets Group following the completion of the stock offering and conversion. We are an "emerging growth company" as defined in the Jumpstart Our Business Startups Act of 2012, referred to as the "JOBS Act" throughout this prospectus.

The shares of common stock are first being offered for sale in a subscription offering in priority order (i) to members of Pioneer Federal with at least $50 on deposit as of the close of business on June 30, 2024, (ii) to the employee stock ownership plan of Pioneer State Bank; (iii) to members of Pioneer Federal with at least $50 on deposit as of the close of business on [ ], 2025, and (iv) to other members of Pioneer Federal as of the close of business on [ ], 2025. Shares not purchased in the subscription offering may be offered for sale to the general public in a community offering, with a preference given to natural persons (including trusts of natural persons) residing in Beaverhead and Powell Counties in Montana. Any shares of common stock not purchased in the subscription offering or the community offering may be offered for sale to the public through a syndicate of broker-dealers, referred to as the "syndicated community offering" throughout this prospectus. The syndicated community offering, if held, may commence before the subscription offering and the community offering (including any extensions) have expired. However, no shares purchased in the subscription offering or the community offering will be issued until any syndicated community offering is completed. We may sell up to 1,587,000 shares of common stock because of demand for the shares of common stock or changes in market conditions, without resoliciting subscribers. We must sell a minimum of 1,020,000 shares to complete the stock offering and conversion.

The minimum purchase order is 25 shares. Generally, no individual, or individuals acting through a single qualifying account held jointly, may purchase more than 30,000 shares ($300,000) of common stock, and no person or entity, together with associates or persons acting in concert with such person or entity, may purchase more than 60,000 shares ($600,000) of common stock, in all categories of the stock offering combined.

The subscription offering will expire at 12:00 noon, Mountain time, on [ ], 2025. We expect that the community offering, if held, may expire at the same time. We may extend the expiration date of the subscription offering and any community offering without notice to you until [ ], 2026, or longer if the Division of Banking & Financial Institutions of the State of Montana, referred to as the "MDOB" throughout this prospectus, and the Federal Deposit Insurance Corporation, referred to as the "FDIC" throughout this prospectus, approve a later date. No single extension may exceed 90 days and the stock offering must be completed by [ ], 2026. Once submitted, orders are irrevocable unless the subscription offering and/or the community offering are terminated or extended, with regulatory approval, beyond [ ], 2026, or the number of shares of common stock to be sold is increased to more than 1,587,000 shares or decreased to less than 1,020,000 shares. If the subscription offering and any community offering are extended beyond [ ], 2026, all subscribers will be notified and given the opportunity to confirm, change or cancel their orders. If you do not respond to the notice of extension, we will promptly return your funds with interest or cancel your deposit account withdrawal authorization. If the number of shares to be sold in the stock offering is increased to more than 1,587,000 shares or decreased to less than 1,020,000 shares, we will resolicit subscribers, and all funds delivered to us to purchase shares of common stock in the subscription offering and any community offering will be returned promptly with interest. Funds received in the subscription offering and any community offering will be held in a segregated account at Pioneer Federal and will earn interest at 0.77% per annum until completion or termination of the stock offering.

Keefe, Bruyette & Woods, Inc., referred to as "KBW" throughout this prospectus, will assist us in selling our shares of common stock on a best-efforts basis in the subscription offering and any community offering, and will serve as sole manager for any syndicated community offering. KBW is not required to purchase any shares of common stock we are offering for sale.

#### OFFERING SUMMARY Price: $10.00 per share

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Minimum**  | **Midpoint**  | **Maximum**  | **Adjusted Maximum**  |
| Number of shares  | 1020000 | 1200000 | 1380000 | 1587000 |
| Gross offering proceeds  | $10200000 | $12000000 | $13800000 | $15870000 |
| Estimated offering expenses, excluding selling agent fees and expenses<sup>(1)</sup>  | $1700000 | $1700000 | $1700000 | $1700000 |
| Selling agent fees and expenses<sup>(1)(2)</sup>  | $300000 | $300000 | $300000 | $300000 |
| Estimated net proceeds  | $8200000 | $10000000 | $11800000 | $13870000 |
| Estimated net proceeds per share<sup>(1)</sup>  | $8.04 | $8.33 | $8.55 | $8.74 |

---

(1) See "The Stock Offering and Conversion — Plan of Distribution; Selling Agent and Underwriter Compensation" for a discussion of KBW's compensation for the stock offering including any additional compensation to be received by KBW and other broker-dealers in the event of a syndicated community offering.

(2) Excludes records agent fees and expenses payable to KBW, which are included in estimated offering expenses. See "The Stock Offering and Conversion — Records Management."

#### This investment involves a degree of risk, including the possible loss of principal. See "Risk Factors" beginning on page 14 .
 *These securities are not deposits or savings accounts and are not insured or guaranteed by the FDIC or any other governmental agent. None of the Securities and Exchange Commission, the MDOB, the FDIC, the Board of Governors of the Federal Reserve System or any state securities regulator has approved or disapproved of these securities or determined if this prospectus is accurate or complete. Any representation to the contrary is a criminal offense.*![[MISSING IMAGE: lg_keefebruyettewoods-bw.jpg]](lg_keefebruyettewoods-bw.jpg)

For assistance, contact the Stock Information Center at [ ] toll-free.

The date of this prospectus is [ ], 2025.

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![[MISSING IMAGE: mp_financial-4c.jpg]](mp_financial-4c.jpg)

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#### **TABLE OF CONTENTS**

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| | |
|:---|:---|
| | **Page**  |
| **[SUMMARY](#tSUF1)**  | [1](#tSUF1) |
| **[RISK FACTORS](#tRIFA)**  | [14](#tRIFA) |
| **[SELECTED FINANCIAL AND OTHER DATA OF PIONEER FEDERAL](#tSFAO)**  | [29](#tSFAO) |
| **[FORWARD-LOOKING STATEMENTS](#tFOST)**  | [31](#tFOST) |
| **[HOW WE INTEND TO USE THE PROCEEDS FROM THE STOCK OFFERING](#tHWIT)**  | [33](#tHWIT) |
| **[OUR DIVIDEND POLICY](#tODP)**  | [34](#tODP) |
| **[MARKET FOR THE COMMON STOCK](#tMFTC)**  | [35](#tMFTC) |
| **[HISTORICAL AND PRO FORMA REGULATORY CAPITAL COMPLIANCE](#tHAPF)**  | [36](#tHAPF) |
| **[CAPITALIZATION](#tCAP)**  | [37](#tCAP) |
| **[PRO FORMA DATA](#tPFD)**  | [39](#tPFD) |
|  **[MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS](#tMDAA)**  | [45](#tMDAA) |
| **[BUSINESS OF PSB FINANCIAL](#tBOPF)**  | [60](#tBOPF) |
| **[BUSINESS OF PIONEER FEDERAL](#tBOPF1)**  | [62](#tBOPF1) |
| **[REGULATION AND SUPERVISION](#tRAS)**  | [79](#tRAS) |
| **[TAXATION](#tTAX)**  | [90](#tTAX) |
| **[MANAGEMENT](#tMAN)**  | [92](#tMAN) |
| **[SUBSCRIPTIONS BY DIRECTORS AND EXECUTIVE OFFICER](#tSBDA)**  | [103](#tSBDA) |
| **[THE STOCK OFFERING AND CONVERSION](#tTSOA)**  | [103](#tTSOA) |
| **[Restrictions on Acquisition of PSB Financial](#tRAPF2)**  | **[124](#tRAPF2)**  |
| **[Description of Capital Stock of PSB Financial](#tDCSO2)**  | [128](#tDCSO2) |
| **[TRANSFER AGENT](#tTRAG)**  | [129](#tTRAG) |
| **[EXPERTS](#tEXP)**  | [130](#tEXP) |
| **[CHANGE IN AUDITOR](#tCIA)**  | [130](#tCIA) |
| **[LEGAL MATTERS](#tLEMA)**  | [130](#tLEMA) |
| **[WHERE YOU CAN FIND ADDITIONAL INFORMATION](#tWYCF)**  | [131](#tWYCF) |
|  **[INDEX TO FINANCIAL STATEMENTS OF PIONEER FEDERAL SAVINGS AND LOAN ASSOCIATION](#tITFS)**  | **[F-1](#tITFS)**  |

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#### SUMMARY
 *The following summarizes the significant aspects of Pioneer Federal's mutual-to-stock conversion and the related offering of common stock by PSB Financial. It may not contain all of the information that is important to you. For additional information, you should read this entire document carefully, including the financial statements and the related notes and the section entitled "Risk Factors," before making an investment decision.* 

#### PSB Financial, Inc.
PSB Financial, a newly formed Maryland corporation, is offering for sale shares of its common stock in connection with the conversion of Pioneer Federal from a mutual savings association (meaning it has no stockholders) to Pioneer State Bank, a Montana stock bank. As a mutual savings bank, all depositors are members of and have voting rights in Pioneer Federal as to all matters requiring a vote of members. The following diagram depicts Pioneer Federal's current organizational structure:

![[MISSING IMAGE: fc_psbfinanc1-bw.jpg]](fc_psbfinanc1-bw.jpg)

On September 10, 2025, Pioneer Federal formed Pioneer State Bank, a new Montana state-chartered banking entity formed for the purpose of facilitating the conversion. Upon the completion of the stock offering and the receipt of the necessary approvals from the MDOB, the FDIC and the Federal Reserve, Pioneer Federal will merge with and into Pioneer State Bank, with Pioneer State Bank surviving the merger. We refer in this prospectus to the merger of Pioneer Federal with and into Pioneer State Bank, and the related effects on Pioneer Federal, as the "conversion."

![[MISSING IMAGE: fc_psbfinanc2-bw.jpg]](fc_psbfinanc2-bw.jpg)

Following the merger, Pioneer Federal, having been merged with and into Pioneer State Bank, will cease to have members and its former members will no longer have voting rights in Pioneer Federal. All voting rights formerly vested in Pioneer Federal will be vested in PSB Financial as the sole stockholder of Pioneer State Bank. The stockholders of PSB Financial will possess exclusive voting rights with respect to PSB Financial common stock.

Upon completion of the stock offering and conversion, PSB Financial will be 100% owned by its stockholders (including Pioneer Federal members who subscribe in the offering) and Pioneer State Bank will be 100% owned by PSB Financial.

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The following diagram depicts our organizational structure after the completion of the stock offering and conversion:

![[MISSING IMAGE: fc_psbfinanc3-bw.jpg]](fc_psbfinanc3-bw.jpg)

PSB Financial was incorporated on September 11, 2025 and has not engaged in any business to date. Upon completion of the stock offering and conversion, PSB Financial will register as a bank holding company and will be subject to regulation and examination by the Board of Governors of the Federal Reserve System, referred to as the "Federal Reserve Board" throughout this prospectus, see "Regulation and Supervision."

PSB Financial's principal office is located at 202 North Main St., Deer Lodge, MT 59722, and the telephone number at that address is (406) 846-2202.

#### Pioneer Federal
Pioneer Federal is a state chartered mutual savings and loan association regulated by the MDOB and the FDIC. Pioneer Federal is also a member of the Federal Home Loan Bank of Des Moines (the "FHLB"). Pioneer Federal is a community-oriented financial institution serving southwestern Montana. We conduct our business from our main office in Deer Lodge, Montana, and our branch office, located in Dillon, Montana. Our loan portfolio consists primarily of one- to four-family residential mortgage loans. To a substantially lesser extent, we also originate commercial real estate loans, construction and land development loans, commercial loans, home equity loans and lines of credit, and consumer and automobile loans. We offer a variety of deposit accounts including non-interest-bearing demand accounts, interest-bearing demand accounts, savings accounts and certificates of deposit. In addition, we offer electronic banking services including mobile banking as well as online banking and bill pay.

We consider our primary market area for loan originations and deposit gathering to be Beaverhead and Powell Counties, as well as Deer Lodge, Granite, Silver Bow, Madison, Lewis & Clark counties and contiguous areas, in the western region of Montana. Both Deer Lodge and Dillon are close to the population hub of Butte, Montana, with Dillon approximately 60 miles southwest of Butte and Deer Lodge approximately 35 miles northwest of Butte.

Our primary market area is predominately rural with centralized town centers. According to the latest available data from the United States Census Bureau, Beaverhead County has a population of approximately 9,590 and Powell County has a population of approximately 7,240. The primary economic drivers in our market area are agriculture, tourism, and energy and resources including forest and mineral products. The market area economy has a focus on general agriculture, including cattle/sheep ranching and outdoors activities with a cross-section of other economic sectors including mining, healthcare and services. Various national parks or forestlands are located in the region.

Agriculture is one of the primary economic drivers for Beaverhead County, with cattle and hay the primary agriculture activities. Both market area counties have a large tourism economic sector, as the area is known for its outdoor recreational activities including fishing, snowmobiling, and hiking with both counties containing various national protected areas and national forests. Major employers in the primary market area include the Montana State Prison, Barrett Hospital and Healthcare, and High Divide Minerals, Inc., a large talc mine. In addition, other major employers include the local public schools, the University

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of Montana Western, Deer Lodge Medical Center, and various government agencies, including the U.S. Forest Service and the Bureau of Land Management.

Our loan portfolio consists primarily of fixed-rate mortgage loans secured by one- to-four family residential properties. To a significantly lesser extent, Pioneer Federal also originates commercial loans, construction and land development loans, home equity lines of credit and consumer and automobile loans. Essentially all of the commercial real estate and non-real estate loans in our portfolio reflect purchased participations. Pioneer Federal has not historically sold conforming, fixed-rate residential mortgage loans with longer terms into the secondary market.

We originate loans through employee and director marketing and advertising efforts, our existing customer base, walk-in customers and referrals from customers.

We generally do not purchase loans, except for participation interests in loans originated by other financial institutions acting as the lead lender. We generally originate loans for retention in our loan portfolio, allowing for continued direct contact with the borrower over the life of the loan. We historically have not sold loans off of our balance sheet. At June 30, 2025, we had no loans held-for-sale and $824,000 of loans serviced for others.

Our primary revenue source is interest income earned on loans and investments. Noninterest income is not a significant revenue source.

At June 30, 2025, we had total assets of $113.3 million and total deposits of $85.8. We had net interest income of $1.7 million for the six months ended June 30, 2025, and $3.2 million and $3.3 million for the years ended December 31, 2024 and 2023, respectively.

Our main office is located at 202 North Main Street, Deer Lodge, Montana, and the telephone number at that address is (406) 846-2202. Our website address is *www.pioneerfed.com*. Information on our website is not incorporated into this prospectus and should not be considered part of this prospectus.

#### Business Strategy
Our principal objective is to build long-term value for our stockholders and positively impact our communities, customers and employees by operating a strong and trusted community savings association focused on serving our regional market area. Our current business strategy, which represents the business strategy that we intend to continue for the foreseeable future following the conversion as Pioneer State Bank, includes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Continuing to focus on originating fixed-rate one- to four-family residential mortgage loans and residential construction/permanent loans for retention in the loan portfolio;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Modestly increasing relative volume of commercial loans, including real estate and non-real estate secured loans, by expanding our commercial underwriting and credit administration staff, while seeking to manage credit and other risks related to commercial lending;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Managing credit risk to maintain an acceptably low level of nonperforming assets, representing a continuation of our historical ability to minimize nonperforming assets by employing experienced credit professionals, having well-defined policies and procedures, appropriate loan underwriting criteria and active credit monitoring;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Continuing efforts to grow low-cost "core" deposits, which we anticipate will provide additional fee income through ancillary services and fees that the deposit accounts may generate;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Remaining a community-oriented institution and relying on high quality service to maintain and build our local customer base;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Strengthening our digital-based banking capabilities, including through a new main data processing vendor anticipated in 2026, to remain an attractive option for current and potential customers, recognizing that customers can be expected to seek out banking institutions that have a technology platform that offers sufficient digital banking services; and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • In addition to organic growth, we may consider expansion opportunities in our market area or in contiguous markets that we believe would enhance our franchise value and stockholder returns. These opportunities may include establishing new, or *de novo*, branch offices, acquiring branch offices, establishing loan production offices, or acquiring other financial institutions. We are considering branching opportunities that may arise in our primary market area, including a potential branch office in western Montana in late 2026 or the first six months of 2027.

We expect the strategies outlined above to guide our investment of the net proceeds of the stock offering. We intend to continue to pursue these business strategies after the conversion and the stock offering, subject to any changes necessitated by future market conditions and other factors.

See "Business of Pioneer Federal" and "Management's Discussion and Analysis of Financial Condition and Results of Operations — Business Strategy" for a further discussion of our business strategy.

#### Pioneer State Bank
Pioneer State Bank is a newly chartered Montana commercial stock bank, incorporated on September 10, 2025. Pioneer State Bank has had no operations and will not operate independently prior to the conversion, having been formed for the purpose of facilitating the conversion. Upon the completion of the stock offering and the approval of the MDOB and the FDIC, Pioneer Federal will merge with and into Pioneer State Bank. The directors and officers of Pioneer State Bank are the directors and officers of Pioneer Federal. Pioneer State Bank will succeed to all of the rights, obligations, duties and liabilities of Pioneer Federal, and all banking operations previously conducted by Pioneer Federal will be conducted through Pioneer State Bank. As a Montana state-chartered bank, Pioneer State Bank will be subject to examination and regulation by the MDOB, as its chartering authority, and is also subject to examination by the FDIC, its primary federal regulatory and deposit insurer.

#### Reasons for the Stock Offering and Conversion
Our principal objective is to build long-term value for our stockholders and positively impact our communities, customers and employees by operating a strong and trusted community savings association focused on serving our regional market area. Our current business strategy, which represents the business strategy that we will continue following the conversion as Pioneer State Bank, includes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Continuing to focus on originating fixed-rate one- to four-family residential mortgage loans and residential construction/permanent loans for retention in the loan portfolio;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Modestly increasing the capabilities and balances of commercial loans, including real estate and non-real estate secured loans, while seeking to limit the related risks, such as interest rate risk, credit risk and liquidity risk;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Managing credit risk to maintain an acceptably low level of nonperforming assets, representing a continuation of our historical ability to minimize nonperforming assets by employing experienced credit professionals, having well-defined policies and procedures, appropriate loan underwriting criteria and active credit monitoring;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Continuing efforts to grow low-cost "core" deposits, which we define as checking accounts, savings accounts, money market accounts, and certificates of deposit not exceeding $250,000;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Remaining a community-oriented institution and relying on high quality service to maintain and build our local customer base;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Strengthening our digital-based banking capabilities, including through our use of a new main data processing vendor anticipated to begin in 2026, to remain an attractive option for current and potential customers, recognizing that customers can be expected to seek out banking institutions that have a technology platform that offers sufficient digital banking services; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Seeking to expand operations primarily through organic growth while also considering branching opportunities that may arise in the primary market area, including a potential branch office in western Montana in late 2026 or the first six months of 2027.

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We expect these strategies to guide our investment of the net proceeds of the stock offering. We intend to continue to pursue these business strategies after the conversion and stock offering, subject to changes necessitated by future market conditions, regulatory restrictions and other factors.

See "The Stock Offering and Conversion" for a more complete discussion of our reasons for conducting the stock offering and conversion.

#### Terms of the Stock Offering
PSB Financial is offering for sale between 1,020,000 and 1,380,000 shares of common stock to eligible members of Pioneer Federal and to the employee stock ownership plan of Pioneer State Bank in a subscription offering. To the extent shares remain available, we may offer shares for sale in a community offering, with a preference given to natural persons (and trusts of natural persons) residing in Beaverhead and Powell Counties in Montana. We may also offer for sale shares of common stock not purchased in the subscription offering or in any community offering to the general public in a syndicated community offering. The number of shares of common stock to be sold may be increased to up to 1,587,000 shares as a result of demand for the shares of common stock in the stock offering or changes in market conditions. Once submitted, orders are irrevocable unless the number of shares of common stock offered for sale is increased to more than 1,587,000 shares or decreased to fewer than 1,020,000 shares, or the stock offering is extended beyond [ ], 2026. Subscribers will not have the opportunity to change or cancel their stock orders once submitted. If the stock offering is extended beyond [ ], 2026, we will resolicit subscribers and you will have the opportunity to confirm, change or cancel your order within a specified period of time. If you do not respond during that period of time, your stock order will be cancelled and your deposit account withdrawal authorizations will be cancelled or your funds submitted will be returned promptly with interest at 0.77% per annum. If the number of shares offered for sale is increased to more than 1,587,000 shares or decreased to less than 1,020,000 shares, all subscribers' stock orders will be cancelled, their deposit account withdrawal authorizations will be cancelled and funds delivered for the purchase of shares of common stock in the stock offering will be returned promptly with interest at 0.77% per annum. We will give these subscribers an opportunity to place new orders for a specified period of time.

The shares of common stock are being offered for sale at a purchase price of $10.00 per share. All investors will pay the same purchase price per share, and investors will not be charged a commission to purchase shares of common stock in the stock offering. KBW, our marketing agent for the stock offering, will use its best efforts to assist us in selling shares of our common stock but is not obligated to purchase any shares of common stock in the stock offering.

#### Important Risks of Owning PSB Financial Common Stock
Before you order shares of our common stock, you should read the "Risk Factors" section beginning on page 14 of this prospectus.

#### How We Determined the Offering Range and the $10.00 per Share Purchase Price
The amount of common stock PSB Financial is offering for sale is based on an independent appraisal of the estimated pro forma market value of PSB Financial, assuming the stock offering and conversion are completed. Feldman Financial Advisors, Inc., referred to as "Feldman Financial" throughout this prospectus, our independent appraiser, has estimated that, as of September 2, 2025, this market value was $12.0 million. Based on applicable federal regulations, this market value forms the midpoint of a valuation range with a minimum of $10.2 million and a maximum of $13.8 million. Based on this valuation and the $10.00 per share purchase price, the number of shares of common stock being offered for sale in the stock offering ranges from a minimum of 1,020,000 shares to a maximum of 1,380,000 shares. We may sell up to 1,587,000 shares of common stock because of demand for the shares or changes in market conditions without resoliciting subscribers. The $10.00 per share purchase price was selected primarily because it is the price most commonly used in mutual-to-stock conversions of financial institutions.

The independent appraisal is based in part on Pioneer Federal's financial condition and results of operations, the pro forma effect of the additional capital raised by the sale of shares of common stock in the stock offering and an analysis of a peer group of 10 publicly traded thrift holding companies with total

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assets ranging from $2,783.8 million to $987.5 million as of September 2, 2025 that Feldman Financial considered comparable to PSB Financial. In selecting the peer group, Feldman Financial considered certain key criteria such as asset size, stock exchange listing, capital level, profitability and other financial characteristics, operating strategy, and market area. Because of the regulatory appraisal guidelines and the limited number of publicly traded savings institutions and thrift holding companies, the selection process by Feldman Financial resulted in each of the peer group companies having total assets greater than Pioneer Federal's asset size. The peer group also exhibited moderately higher profitability levels than Pioneer Federal. Feldman Financial believed that the peer group's similar operating fundamentals and business strategies with regard to Pioneer Federal provided a meaningful basis of comparison for valuation pricing purposes. When preparing the independent appraisal, Feldman Financial made downward adjustments for earnings growth and viability, liquidity of the stock issue, and marketing of the stock issue. The downward adjustment for earnings growth and viability was prompted by Pioneer Federal's lower return on average assets and less favorable efficiency ratio as compared to the peer group companies. The downward adjustment for the liquidity of the issue took into consideration the lower number of shares to be outstanding and the lower market capitalization expected in comparison to the peer group companies. The downward adjustment for marketing of the issue was based on the risk and uncertainty related to a new offering in the current environment of market volatility. For additional information, including the list of peer group companies, see "The Stock Offering and Conversion — Determination of Share Price and Number of Shares to be Issued."

The following table presents a summary of selected pricing ratios for the peer group companies and for PSB Financial (on a pro forma basis) utilized by Feldman Financial in its independent appraisal. See "The Stock Offering and Conversion — Determination of Share Price and Number of Shares to be Issued" for information regarding the peer group companies. These ratios are based on PSB Financial's book value, tangible book value and core earnings at and for the 12 months ended June 30, 2025. The peer group ratios are based on financial data as of June 30, 2025 and stock prices as of September 2, 2025. Compared to the average pricing of the peer group, our pro forma pricing ratios at the midpoint of the offering range indicated a premium of 165.8% on a price-to-core earnings basis and a discount of 47.9% on a price-to-tangible book value basis.

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| | | | |
|:---|:---|:---|:---|
| | **Price-to-core <br> earnings <br> multiple<sup>(1)</sup>**  | **Price-to-book <br> value ratio**  | **Price-to-tangible <br> book value <br> ratio**  |
|  **PSB Financial (pro forma basis, assuming completion of the stock <br> offering and conversion)<sup>(2)</sup>**  |  |  |  |
| &nbsp;&nbsp;&nbsp; Adjusted Maximum  | 55.56x | 52.22% | 52.22% |
| &nbsp;&nbsp;&nbsp; Maximum  | 50.00x | 48.31% | 48.31% |
| &nbsp;&nbsp;&nbsp; Midpoint  | 45.45x | 44.46% | 44.46% |
| &nbsp;&nbsp;&nbsp; Minimum  | 40.00x | 40.14% | 40.14% |
|  **Valuation of peer group companies, all of which are fully converted (historical basis):**  |  |  |  |
| &nbsp;&nbsp;&nbsp; Average  | 17.10x | 82.30% | 85.37% |
| &nbsp;&nbsp;&nbsp; Median  | 16.44x | 83.67% | 84.84% |

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(1) Price-to-earnings multiples calculated by Feldman Financial for the independent appraisal are based on an estimate of "core" or recurring earnings. These ratios are different from those presented in "Pro Forma Data."

(2) Pro forma pricing ratios for PSB Financial calculated by Feldman Financial for the independent appraisal are based on pro forma financial data at and for the 12 months ended June 30, 2025. These ratios are different from those presented in "Pro Forma Data."

 **The independent appraisal does not indicate trading market value. Do not assume or expect that our valuation as indicated in the appraisal means that after the stock offering and conversion the shares of our common stock will trade at or above the $10.00 per share purchase price. Furthermore, Feldman Financial used the pricing ratios presented in the appraisal to estimate our pro forma appraised value for regulatory purposes** 

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 **and not to compare the relative value of shares of our common stock with the value of the common stock of the institutions in the peer group. The value of the common stock of any company may be affected by a number of factors such as financial performance, asset size and market location.** 

For a more complete discussion of the amount of common stock we are offering for sale and the independent appraisal, see "The Stock Offering and Conversion — Determination of Share Price and Number of Shares to be Issued."

#### How We intend to Use the Proceeds from the Stock Offering
We believe the stock holding company form of organization will provide us with access to additional resources to expand the products and services we offer our customers. Our primary reasons for converting and raising additional capital through the stock offering are to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Strengthen PSB Financial's capital base by retaining up to 50% of net proceeds;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Invest at least 50% of the net proceeds in Pioneer State Bank with contributions ranging from $4.1 million to $6.9 million;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Fund the Employee Stock Ownership Plan ("ESOP") to purchase shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Enhance our strategic financial flexibility;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Allow us the flexibility to pay cash dividends to shareholders in the future;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Enhance investment portfolio for growth;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Support general corporate purposes for long-term stability;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Expand lending capabilities and product offerings; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Invest in securities for diversified income streams.

For more information, see "How We Intend to Use the Proceeds from the Stock Offering."

#### Persons Who May Order Shares of Common Stock in the Stock Offering
We are offering the shares of common stock in a subscription offering in the following descending order of priority:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (i) First, to members of Pioneer Federal with at least $50 on deposit as of the close of business on June 30, 2024;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (ii) Second, to Pioneer State Bank's employee stock ownership plan, which will receive, without payment, nontransferable subscription rights to purchase in the aggregate up to 10% of the shares of common stock sold in the stock offering. We expect the employee stock ownership plan to purchase up to 8% of the shares of common stock sold in the stock offering;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (iii) Third, to members of Pioneer Federal with at least $50 on deposit as of the close of business on [ ], 2025; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (iv) Fourth, to other members not otherwise in (i) or (ii) of Pioneer Federal as of the close of business on [ ], 2025.

Shares of common stock not purchased in the subscription offering may be offered for sale in a community offering, with a preference given to the local community, natural persons (and trusts of natural persons) residing in Beaverhead and Powell Counties in Montana. If held, the local community offering may begin concurrently with, during or after the subscription offering. We may also offer for sale shares of common stock not purchased in the subscription offering or in any community offering to the general public through a syndicated community offering, which would be managed by KBW. We have the right to accept or reject, in our sole discretion, orders received in any community offering or syndicated community offering. Any determination to accept or reject stock orders in any local community offering or syndicated community offering will be based on the facts and circumstances available to management at the time of the determination.

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If we receive orders for more shares than we are offering for sale, we may not be able to fill your order, in full or in part. Shares will be allocated first to categories in the subscription offering. A detailed description of the subscription offering, the community offering and the syndicated community offering, as well as a discussion regarding allocation procedures, can be found in the section of this prospectus entitled "The Stock Offering and Conversion."

#### Limits on How Much Common Stock You May Purchase
The minimum number of shares of common stock that may be purchased is 25.

Generally, no individual, or individuals acting through a single qualifying account held jointly, may purchase more than the greater of: (i) 30,000 shares ($300,000) of common stock. If any of the following persons purchase shares of common stock, their purchases, in all categories of the stock offering combined, when combined with your purchases, cannot exceed 60,000 shares ($600,000) of common stock:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • your spouse, or relatives of you or your spouse, who reside with you;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • most companies, trusts or other entities in which you are a trustee, have a substantial beneficial interest or hold a senior position; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • other persons who may be your associates or who may be acting in concert with you.

Unless we determine otherwise, persons having the same address and persons exercising subscription rights through qualifying accounts registered to the same address will be subject to the overall purchase limitation of 60,000 shares ($600,000). See the detailed definitions of "associate" and "acting in concert" in the section of this prospectus entitled "The Stock Offering and Conversion — Limitations on Common Stock Purchases."

Federal regulations provide that such purchase limitation may be further increased to 9.99%, provided that orders for shares of common stock exceeding 5.0% of the shares of common stock sold in the stock offering do not exceed in the aggregate 10.0% of the number of shares of the common stock sold in the stock offering. Any request to purchase additional shares of common stock in the event the purchase limitation is so increased will be determined by our Board of Directors in its sole discretion.

Subject to any required regulatory approval, we may increase or decrease the purchase limitations at any time. See the detailed description of the purchase limitations in the section of this prospectus entitled "The Stock Offering and Conversion — Limitations on Common Stock Purchases."

#### How You May Purchase Shares of Common Stock in the Subscription Offering and in any Community Offering
In the subscription offering and any community offering, you may pay for your shares only by:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • personal check, bank check or money order, from the purchaser, made payable directly to PSB Financial, Inc.;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • authorizing us to withdraw available funds (without any early withdrawal penalty) from your Pioneer Federal deposit account(s), other than checking accounts, or individual retirements accounts (IRAs). To use funds from a checking account, submit a check; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • cash.

Cash will only be accepted at Pioneer Federal's main office and will be converted to a bank check. **Please do not submit cash by mail.** 

Pioneer Federal is prohibited by law from lending funds to anyone to purchase shares of common stock in the stock offering. Additionally, you may not use any type of third-party check to pay for shares of common stock. Wire transfers will not be accepted. You may not submit a Pioneer Federal line of credit check for payment. You may not designate withdrawal from a Pioneer Federal account with check-writing privileges; instead, you may submit a check. If you request a direct withdrawal, we reserve the right to interpret that as your authorization to treat those funds as if we had received a check for the designated amount

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and will immediately withdraw the amount from your checking account(s). You may not authorize direct withdrawal from a Pioneer Federal IRA. See "Using Individual Retirement Account Funds to Purchase Shares of Common Stock."

You may subscribe for shares of common stock in the subscription offering and any community offering by delivering a completed and signed original stock order form, together with full payment payable to PSB Financial, Inc. or authorization to withdraw funds from one or more of your Pioneer Federal deposit accounts, provided that the stock order form is received before 1:00 p.m., Mountain time, on [ ], 2025, which is the expiration of the subscription offering period. You may submit your stock order form and payment by mail using the stock order reply envelope provided or by paying for overnight delivery to the address listed on the stock order form. You may also hand-deliver stock order forms to our offices, located at 202 North Main St., Deer Lodge, Montana and 32 N. Washington St., Dillon, Montana. **Do not mail stock order forms to any of Pioneer Federal's offices.** 

See "The Stock Offering and Conversion — Procedure for Purchasing Shares in the Subscription Offering and any Community Offering."

#### Using Individual Retirement Account Funds to Purchase Shares of Common Stock
You may be able to subscribe for shares of common stock using funds in your Pioneer Federal IRA or other retirement account. If you wish to use some or all of the funds in your Pioneer Federal IRA or other retirement account, the applicable funds must be first transferred to a self-directed account maintained by an independent custodian or trustee, such as a brokerage firm, and the purchase must be made through that account. If you do not have such an account, you will need to establish one *before* placing your stock order. An annual administrative fee may be payable to the independent custodian or trustee. Because individual circumstances differ and the processing of retirement fund orders takes additional time, we recommend that you contact our Stock Information Center as soon as possible, *but in no event less than two weeks before the [ ], 2025 subscription deadlin*e, for assistance with purchases using funds in your IRA or other retirement account you may have at Pioneer Federal or elsewhere. Whether you may use such funds to purchase shares in the stock offering may depend on timing constraints and, possibly, limitations imposed by the institution where the funds are held. See "The Stock Offering and Conversion — Procedure for Purchasing Shares in the Subscription Offering and any Community Offering — Using Individual Retirement Account Funds."

#### Purchases by Directors and Executive Officer
We expect our directors and executive officer, together with their associates, to subscribe for 102,700 shares ($1,027,000) of common stock in the stock offering, representing 10.1% of shares to be outstanding based on the sale of stock at the minimum of the offering range. However, there can be no assurance that any individual director or executive officer, or the directors and executive officer as a group, will purchase any specific number of shares of our common stock. They will pay the same price per share that all others who purchase shares of common stock in the stock offering will pay. Our directors and executive officer are subject to the same minimum purchase requirements and purchase limitations as other participants in the stock offering as set forth under "— Limits on How Much Common Stock You May Purchase." Purchases by our directors and executive officer and their associates will be included in determining whether the required minimum number of shares have been subscribed for in the stock offering. For more information, see "Subscriptions by Directors and Executive Officer."

#### Deadline for Submitting Orders for Shares of Common Stock in the Subscription Offering and any Community Offering
The deadline for submitting orders to purchase shares of common stock in the subscription offering and in any community offering is 12:00 noon, Mountain time, on [ ], 2025, unless we extend this deadline. If you wish to purchase shares of common stock, a properly completed and signed original stock order form, together with full payment, must be received (*not postmarked*) by 12:00 noon, Mountain time. Although we will make reasonable attempts to provide this prospectus and offering materials to holders of subscription rights, the subscription offering and all subscription rights will expire at 12:00 noon, Mountain time, on [ ], 2025, regardless of whether we have been able to locate each person entitled to

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subscription rights. See "The Stock Offering and Conversion — Procedure for Purchasing Shares in the Subscription Offering and any Community Offering — Expiration Date."

#### You May Not Sell or Transfer Your Subscription Rights
Applicable regulations prohibit you from selling or transferring your subscription rights. If you order shares of common stock in the subscription offering, you will be required to certify that you are purchasing the common stock for yourself and that you have no agreement or understanding to sell or transfer your subscription rights or the shares that you are purchasing. We intend to take legal action, including reporting persons to federal or state agencies, against anyone who we believe has sold or transferred his or her subscription rights. We will not accept your order if we have reason to believe you have sold or transferred your subscription rights. **On the stock order form, you cannot add the names of others for joint stock registration who do not have subscription rights or who qualify only in a lower subscription rights priority than you do**. Taking this action may jeopardize your subscription rights. In addition, the stock order form requires that you list all deposit accounts, giving all names on each account and the account number at the applicable eligibility date. Failure to provide this information, or providing incomplete or incorrect information, may result in a loss of part or all of your share allocation.

#### Steps We May Take if We Do Not Receive Orders for the Minimum Number of Shares
If we do not receive valid orders for at least 1,020,000 shares of common stock, we may take additional steps in order to issue the minimum number of shares of common stock in the offering range. Specifically, we may:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • increase the purchase limitations; and/or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • seek regulatory approval to extend the stock offering beyond [ ], 2026.

If we extend the stock offering beyond [ ], 2026, we will resolicit subscribers and you will have the opportunity to confirm, change or cancel your order within a specified period of time. If you do not respond during that period of time, your stock order will be cancelled and your deposit account withdrawal authorizations will be cancelled or your funds submitted will be returned promptly with interest at 0.77% per annum from the date the stock order was processed.

If one or more purchase limitations are increased, we will not resolicit all subscribers. However, subscribers in the subscription offering who ordered the maximum amount and who indicated a desire to be resolicited on the stock order form will be given the opportunity to increase their subscriptions up to the newly applicable purchase limit. We may increase the individual or aggregate purchase limitations to an amount generally not to exceed 5.0% of the common stock sold in the stock offering. See "The Stock Offering and Conversion — Limitations on Common Stock Purchases."

#### Conditions to Completion of the Stock Offering and Conversion
The Board of Directors of Pioneer Federal has approved the plan of conversion. In addition, the FDIC has conditionally approved the plan of conversion and the Federal Reserve Board has conditionally approved PSB Financial's application to become the bank holding company of Pioneer State Bank. We cannot complete the stock offering and conversion unless:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • The plan of conversion is approved by at least a majority of votes eligible to be cast by members of Pioneer Federal (depositors of Pioneer Federal). A special meeting of members to consider and vote upon the plan of conversion has been scheduled for [ ], 2025;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • We sell at least 1,020,000 shares of common stock, which is the minimum of the offering range; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • We receive the final approval required from the MDOB and the FDIC to complete the Conversion and the final approval required from the Federal Reserve Board with respect to PSB Financial's holding company application.

Any approval by the MDOB, the FDIC or the Federal Reserve Board does not constitute a recommendation or endorsement of the plan of conversion.

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#### Our Dividend Policy
Following completion of the stock offering and conversion, our Board of Directors will be authorized to declare dividends on our common stock, subject to statutory and regulatory requirements. However, no decision has been made with respect to the amount, if any, and timing of any dividend payments. The payment and amount of any dividend payments will depend upon a number of factors, including the following: regulatory capital requirements; our financial condition and results of operations; our other uses of funds for the long-term value of stockholders; tax considerations; statutory and regulatory limitations; and general economic conditions. See "Our Dividend Policy" for additional information.

#### Market for Common Stock
We anticipate that the common stock sold in the stock offering will be quoted on the OTCQB Market operated by OTC Markets Group following the completion of the stock offering and conversion. See "Market for the Common Stock." KBW has advised us that it intends to make a market in our common stock following the stock offering, but it is under no obligation to do so. See "Market for the Common Stock."

#### Delivery of Shares of Stock
All shares of common stock of PSB Financial sold in the stock offering will be issued in book entry form and held electronically on the books of our transfer agent. Stock certificates will not be issued. A statement reflecting ownership of shares of common stock sold in the stock offering will be mailed by our transfer agent to the persons entitled thereto at the address noted by them on their stock order form as soon as practicable following consummation of the stock offering. Shares of common stock sold in any syndicated community offering may be delivered electronically through The Depository Trust Company. We expect trading in the common stock to begin on the business day of or on the business day immediately following the completion of the stock offering and conversion. **Until a statement reflecting ownership of shares of common stock is available and delivered to purchasers, it is possible that purchasers may not be able to sell the shares of common stock that they have purchased, even though trading in the common stock will have begun.** Your ability to sell the shares of common stock before receiving your statement will depend on arrangements you may make with a brokerage firm.

#### Possible Change in the Offering Range
Feldman Financial will update its independent appraisal before we complete the stock offering and conversion. If, as a result of demand for the shares or chances in market conditions, Feldman Financial determines that our pro forma market value has increased, we may sell up to 1,587,000 shares in the stock offering without further notice to you. If our pro forma market value at that time is either below $10.2 million or above $15.87 million, then, after consulting with the MDOB and the FDIC, we may:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • terminate the stock offering, cancel deposit account withdrawal authorizations and promptly return all funds received in the stock offering with interest at 0.77% per annum;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • set a new offering range; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • take such other actions as may be permitted by the MDOB, the FDIC, the Federal Reserve Board, the Financial Industry Regulatory Authority ("FINRA") and the Securities and Exchange Commission (referred to in this prospectus as the "SEC").

If we set a new offering range, we will promptly return funds, with interest at 0.77% per annum, received in the stock offering, cancel deposit account withdrawal authorizations and commence a resolicitation. In a resolicitation, we will notify subscribers of their right to place a new stock order for a specified period of time.

#### Possible Termination of the Stock Offering
We may terminate the stock offering at any time before the special meeting of members of Pioneer Federal that has been called to vote on the plan of conversion, and at any time after member approval with

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the concurrence of the MDOB and the FDIC. If we terminate the stock offering, we will promptly return funds and cancel deposit withdrawal authorizations, as described above.

#### Benefits to Management and Potential Dilution to Stockholders Resulting from the Stock offering and Conversion
We expect Pioneer State Bank's ESOP, which is a tax-qualified retirement plan for the benefit of all of our employees being established in connection with the stock offering and conversion, to purchase up to 8% of the shares of common stock that we sell in the stock offering. If we receive orders for more shares of common stock than the maximum of the offering range, the ESOP will have first priority to purchase shares over this maximum, up to a total of 8% of the shares of common stock that we sell in the stock offering. This would reduce the number of shares available for allocation to eligible depositors of Pioneer State Bank. For further information, see "Management — Executive Compensation — Employee Stock Ownership Plan."

Purchases by the ESOP in the stock offering will be included in determining whether the required minimum number of shares have been sold in the stock offering. Subject to market conditions and receipt of regulatory approval, the ESOP may instead elect to purchase shares of common stock in the open market following the completion of the stock offering in order to fill all or a portion of its intended subscription.

We also intend to implement a stock-based benefit plan no earlier than six months after completion of the conversion. Stockholder approval of this plan will be required, and the stock-based benefit plan cannot be implemented until at least six months after the completion of the conversion according to applicable federal regulations. If adopted within 12 months following the completion of the conversion, and provided that upon completion of the stock offering Pioneer State Bank has at least a 10% tangible capital to assets ratio, FDIC conversion regulations would allow for the stock-based benefit plan to reserve a number of shares of common stock equal to not more than 4% of the number of shares sold in the stock offering, or up to 55,200 shares of common stock at the maximum of the offering range, for restricted stock awards to key employees and directors, at no cost to the recipients. If adopted within 12 months following the completion of the conversion, the stock-based benefit plan will also reserve a number of shares equal to not more than 10% of the number of shares of common stock sold in the stock offering, or up to 138,000 shares of common stock at the maximum of the offering range, for the exercise of stock options granted to key employees and directors. If the stock-based benefit plan is adopted after one year from the date of the completion of the conversion, the 4% and 10% limitations described above will no longer apply, and we may adopt a stock-based benefit plan encompassing more than 138,000 shares of our common stock assuming the maximum of the offering range. We have not yet determined whether we will present this plan for stockholder approval within 12 months following the completion of the conversion or whether we will present this plan for stockholder approval more than 12 months after the completion of the stock offering and conversion.

The following table summarizes the number of shares of common stock and aggregate dollar value of grants (valuing each share granted at the offering price of $10.00) that would be available under a stock-based benefit plan if such plan is adopted within one year following the completion of the stock offering and conversion and Pioneer Federal has at least a 10% tangible capital to assets ratio at that time. The table shows the dilution to stockholders if all these shares are issued from authorized but unissued shares, instead of shares purchased in the open market. The table also sets forth the number of shares of common stock to be acquired by the ESOP for allocation to all employees. A portion of the stock grants shown in the table below may be made to non-management employees.

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Number of Shares to be Granted or Purchased<sup>(1)</sup>**  | **Number of Shares to be Granted or Purchased<sup>(1)</sup>**  | **Number of Shares to be Granted or Purchased<sup>(1)</sup>**  | **Dilution <br> Resulting <br> from <br> Issuance of <br> Shares for <br> Stock <br> Benefit <br> Plans**  | **Value of Grants<sup>(2)</sup>**  | **Value of Grants<sup>(2)</sup>**  |
| | **At Minimum <br> of Offering <br> Range**  | **At <br> Adjusted <br> Maximum <br> of Offering <br> Range**  | **As a <br> Percentage of <br> Common <br> Stock to be <br> Issued**  | **Dilution <br> Resulting <br> from <br> Issuance of <br> Shares for <br> Stock <br> Benefit <br> Plans**  | **At <br> Minimum of <br> Offering <br> Range**  | **At <br> Adjusted <br> Maximum of <br> Offering <br> Range**  |
|  Employee stock ownership plan  | 81600 | 126960 | 8.00% | **—(3)** | $816000 | $1269600 |
| Stock awards  | 40800 | 63480 | 4.00% | 3.85% | 408000 | 634800 |
| Stock options  | 102000 | 158700 | 10.00% | 9.09% | 499800 | 777630 |
| &nbsp;&nbsp;&nbsp; Total  | 224400 | 349140 | 22.00% | 12.28% | $1723800 | $2682030 |

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(1) The stock-based benefit plan may award a greater number of options and shares, respectively, if the plan is adopted more than 12 months after the completion of the conversion.

(2) The actual value of restricted stock awards will be determined based on their fair value as of the date grants are made. For purposes of this table, fair value is assumed to be the same as the offering price of $10.00 per share. The fair value of stock options has been estimated at $4.90 per option using the Black-Scholes option pricing model with the following assumptions: a grant-date share price and option exercise price of $10.00; dividend yield of 0%; an expected option life of 10 years; a risk-free interest rate of 4.24%; and a volatility rate of 28.65% based on an index of publicly traded financial institutions. The actual expense of stock options granted under a stock-based benefit plan will be determined by the grant-date fair value of the options, which will depend on a number of factors, including the valuation assumptions used in the option pricing model ultimately adopted, which may or may not be the Black-Scholes model.

(3) Represents the dilution of stock ownership interest. No dilution is reflected for the employee stock ownership plan because these shares are deemed to be purchased in the stock offering.

#### Income Tax Consequences
PSB Financial and Pioneer Federal have received an opinion from their counsel, Godfrey & Kahn, S.C., regarding the material federal income tax consequences of the merger and stock offering. PSB Financial and Pioneer Federal have also received an opinion of Wipfli LLP, tax advisors to PSB Financial and Pioneer Federal, regarding the material Montana state income tax consequences of the merger and stock offering. As a general matter, the merger and stock offering are expected to qualify as a "reorganization" under Section 368(a)(1)(F) of the Code for federal and state income tax purposes and no gain or loss will be recognized to either Pioneer Federal or Pioneer State Bank as a result of the merger. Gain or loss, if any, will be realized by account holders of Pioneer Federal, but only in an amount not in excess of the fair market value, if any, of the non-transferrable subscription rights received. See "The Stock Offering and Conversion — Material Income Tax Consequences" for a complete discussion of the income tax consequences of the stock offering and conversion.

#### How You Can Obtain Additional Information — Stock Information Center
Our banking personnel may not, by law, assist with investment-related questions about the stock offering. If you have questions regarding the stock offering and conversion, call our Stock Information Center at **[ ]** (toll-free). The Stock Information Center is open Monday through Friday between 9:00 a.m. and 3:00 p.m., Mountain time, excluding bank holidays.

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#### RISK FACTORS
 ***You should carefully consider the following risk factors, in addition to all other information in this prospectus, in evaluating an investment in the shares of common stock.***

#### Risks Relating to Our Strategy

#### We may not be able to successfully execute our strategic plan.
An important goal of our recently adopted strategic plan is increasing, in an orderly and diligent manner, our commercial real estate lending as a percentage of our loan portfolio. For a more complete discussion of our strategic plan, see "The Stock Offering and Conversion — Reasons for the Conversion". The key assumptions underlying our strategic plan include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • that we will be able to attract and retain qualified personnel, including seasoned commercial loan officers, credit analysts and other commercial loan professionals, required to increase our volume of commercial real estate and multifamily loan originations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • that we will be able to fund our loan growth by growing deposits with our overall cost of funds at a rate consistent with our expectations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • that we will be able to successfully originate high-quality commercial real estate that performs over time in accordance with our expectations; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • that there will be no material change in the competitive dynamics in our market, including as a result of us seeking to increase our market share.

It is possible that one or more factors, including factors outside of our control, may hinder or prevent us from achieving our strategic objectives. For example, hiring, training and retaining seasoned commercial lending personnel in western Montana is costly and challenging, and we may not be able to timely increase the number of commercial loan officers and other commercial loan professionals sufficiently to achieve the growth in commercial real estate lending that we seek.

Similarly, we operate in a highly competitive banking market in which it can be expensive to attract and retain deposits. Our ability to compete successfully depends on a number of factors, including customer convenience, quality of service, personal contacts, pricing and range of products. In addition, we may not be able to effectively implement new technology-driven products and services or be successful in marketing these products and services to our customers. If we are unsuccessful in competing for new depositors or retaining our current depositors, we may be forced to rely more heavily on borrowings and other sources of funding to operate our business and meet withdrawal demands, thereby adversely affecting our net interest margin and financial performance.

If one or more of the key assumptions underlying our strategic plan prove incorrect, we may not be able to successfully execute our strategic plan, and any shortfall may be material.

#### Risks Related to Our Lending Activities

#### Our concentration in residential mortgage loans — particularly one- to four-family residential mortgage loans — exposes us to lending risks .
At June 30, 2025, one- to four-family residential mortgage loans (including residential construction loans) totaled $78.0 million or 90.0% of total loans. One- to four-family residential mortgage lending is generally sensitive to regional and local economic conditions that significantly impact the ability of borrowers to meet their loan payment obligations, making loss levels difficult to predict. Declines in real estate values could cause some of our residential mortgages to be inadequately collateralized, which would expose us to a greater risk of loss if we seek to recover on defaulted loans by selling the real estate collateral.

#### Our commercial real estate loans involve credit risks that could adversely affect our financial condition and results of operations.
At June 30, 2025, commercial real estate loans totaled $4.4 million or 5.1% of total loans. Given their larger balances and the complexity of the underlying collateral, commercial real estate loans generally have

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more risk than the one- to four-family residential real estate loans we originate. Commercial real estate loans also typically involve larger loan balances to single borrowers or groups of related borrowers compared to one- to four-family residential mortgage loans. In addition, if we foreclose on commercial real estate loans, our holding period for the collateral may be longer than for residential property if there are fewer potential purchasers of the collateral. Furthermore, if loans that are collateralized by commercial real estate become troubled and the value of the real estate has been significantly impaired, then we may not be able to recover the full contractual amount of principal and interest that we anticipated at the time we originated the loan. Because the repayment of commercial real estate loans depends on the successful management and operation of the borrower's properties or related businesses, their repayment can be affected by adverse conditions economic conditions and in the local real estate market. A downturn in the real estate market or the local economy could adversely impact the value of properties securing the loan or the revenues from the borrower's business, thereby increasing the risk of nonperforming loans. As our commercial real estate loan portfolio increases, the corresponding risks and potential for losses from these loans may also increase.

#### The geographic concentration of our loan portfolio and lending activities makes us vulnerable to a downturn in the local economy.
A majority of our loans are made to borrowers and secured by collateral within our primary market area. As a result, we face greater risk of loan defaults and losses if there is economic downturn in our primary market area, as adverse economic conditions may have a negative effect on the ability of our borrowers to make timely repayments on their loans. A number of factors, including a return of recessionary conditions and/or negative developments in the domestic and international credit markets may significantly affect the markets in which we do business, the value of our loans, investments, and collateral securing our loans, and our ongoing operations, costs and profitability. Any of these negative events may result in higher-than-expected loan delinquencies, increase our levels of nonperforming and classified assets, and reduce demand for our products and services, which may cause us to incur losses and may adversely affect our capital, liquidity and financial condition.

#### If our allowance for credit losses is not sufficient to cover actual credit losses, our earnings could decrease.
We make various assumptions and judgments about the collectability of our loan portfolio, including the creditworthiness of our borrowers and the value of the real estate and other assets serving as collateral for the repayment of many of our loans. In determining the amount of the allowance for credit losses, we review our loans and our loss and delinquency experience, and we evaluate economic conditions. If our assumptions or the results of our analyses are incorrect, our allowance for credit losses may not be sufficient to cover losses inherent in our loan portfolio, resulting in additions to our allowance. In addition, our emphasis on loan growth and on increasing our portfolios of commercial real estate loans and commercial business loans, as well as any future credit deterioration, could require us to increase our allowance for credit losses in the future. Material additions to our allowance would materially decrease our net income. As of June 30, 2025, our allowance for credit losses was $1,099,000.

In addition, our bank regulators and independent auditors periodically review our allowance for credit losses and, as a result of such reviews, we may be required to increase our provision for credit losses or recognize further loan charge-offs. However, regulatory agencies and independent auditors are not directly involved in the process of establishing the allowance for credit losses, as the process is our responsibility and any adjustment of the allowance is the responsibility of our management. Any increase in our allowance for credit losses or loan charge-offs as a result of such review or otherwise may have a material adverse effect on our financial condition and results of operations.

#### We are subject to environmental liability risk associated with lending activities or properties we own.
In the course of business, we may acquire, through foreclosure, properties securing loans originated or purchased that are in default. Particularly in commercial real estate lending, there is a risk that material environmental violations could be discovered on these properties. In this event, we might be required to remedy these violations at the affected properties at our sole cost and expense. The cost of remedial action could substantially exceed the value of affected properties. We may not have adequate remedies against the

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prior owner or other responsible parties and could find it difficult or impossible to sell the affected properties. These events could have an adverse effect on our financial condition and results of operations.

#### Risks Related to Market Interest Rates

#### Prevailing high market interest rates have reduced, and may continue to reduce, our profits and asset values.
Net income is the amount by which net interest income and noninterest income exceed noninterest expense and the provision for credit losses. Net interest income makes up a majority of our income and is based on the difference between:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • the interest income we earn on interest-earning assets, such as loans and securities; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • the interest expense we pay on interest-bearing liabilities, such as deposits and borrowings.

Our interest-bearing liabilities generally have shorter contractual maturities than our interest-earning assets. Furthermore, the rates we earn on our other interest-earning assets and the rates we pay on our interest-bearing liabilities are generally fixed for a contractual period of time. This imbalance can create significant earnings volatility because market interest rates change over time. Generally, in a period of rising interest rates, the interest income we earn on our interest-earning assets may not increase as rapidly as the interest we pay on deposits and other interest-bearing liabilities. Conversely, in a period of declining interest rates, the interest income we earn on our interest-earning assets may decrease more rapidly than the interest we pay on our interest-bearing liabilities, as borrowers prepay mortgage loans and as mortgage-backed securities and callable investment securities are called, requiring us to reinvest those cash flows at lower, prevailing interest rates.

The higher-interest rate environment prevailing since March 2022, when the Federal Open Market Committee voted to increase the federal funds rate multiple times from a range of 0.00% to 0.25% to a range of 5.25% to 5.50% on July 26, 2023, coupled with the inverted interest rate yield curve until recently, has had an adverse effect on our net interest spread. An inverted interest rate yield curve is where short-term interest rates (which are typically the interest rates at which we and other financial institutions borrow funds and incur interest expense) are higher than long-term interest rates (which are typically the rates at which we and other financial institutions lend funds and earn interest income). Our net interest spread increased to 2.90% for the six months ended June 30, 2025, from 2.63% for the six months ended June 30, 2024.

Changes in market interest rates may also negatively affect the value of our assets, including the value of our investment securities available for sale, and ultimately affect our earnings. The value of investment securities available for sale generally decreases when market interest rates rise and generally increase when market interest rates decline. As of June 30, 2025 and December 31, 2024, net unrealized losses on investment securities available for sale were $575,000 and $777,000, respectively,

For further discussion of how changes in interest rates could impact us, see "Management's Discussion and Analysis of Financial Condition and Results of Operations — Management of Market Risk."

#### Risks Related to Laws and Regulations
 **Changes in laws and regulations and the cost of regulatory compliance with new laws and regulations may adversely affect our operations and/or increase our costs of operations.** 

Pioneer Federal is, and Pioneer State Bank will be, subject to extensive regulation, supervision and examination by the MDOB and the FDIC. PSB Financial will be subject to extensive regulation, supervision and examination by the Federal Reserve Board. Such regulation and supervision govern the activities in which an institution and its holding company may engage and is intended primarily for the protection of the federal deposit insurance fund and the depositors of Pioneer State Bank rather than the protection of PSB Financial's stockholders. Regulatory authorities have extensive discretion in their supervisory and enforcement activities, including the imposition of restrictions on our operations, the classification of our assets and determination of the adequacy of the level of our allowance for credit losses. These regulations, along with existing tax, accounting, securities, insurance and monetary laws, rules, standards, policies, and interpretations,

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control the methods by which financial institutions conduct business, implement strategic initiatives and tax compliance, and govern financial reporting and disclosures. Any change in such regulation and oversight, whether in the form of regulatory policy, regulations, legislation or supervisory action, may have a material impact on our operations. Further, changes in accounting standards can be both difficult to predict and involve judgment and discretion in their interpretation by us and our independent accounting firm. These changes could materially impact, potentially even retroactively, how we report our financial condition and results of operations.

#### Failure to comply with the USA PATRIOT Act, Bank Secrecy Act, or other laws and regulations could result in fines or sanctions.
The USA PATRIOT and Bank Secrecy Acts require financial institutions to develop programs to prevent financial institutions from being used for money laundering and terrorist activities. If such activities are suspected, financial institutions are obligated to file suspicious activity reports with FinCEN. These rules require financial institutions to establish procedures for identifying and verifying the identity of customers seeking to open new financial accounts. Failure to comply with these regulations could result in fines or sanctions, including restrictions on pursuing any acquisitions or establishing or acquiring new branches. The policies and procedures we have adopted that are designed to assist in compliance with these laws and regulations may not be effective in preventing violations of these laws and regulations. Furthermore, these rules and regulations continue to evolve and expand.

#### Monetary policies and regulations of the Federal Reserve Board could adversely affect our business, financial condition and results of operations.
In addition to being affected by general economic conditions, our earnings and growth are affected by the policies of the Federal Reserve Board. An important function of the Federal Reserve Board is to regulate the money supply and credit conditions. Among the instruments used by the Federal Reserve Board to implement these objectives are open market purchases and sales of U.S. government securities, adjustments of the discount rate and changes in banks' reserve requirements against bank deposits. These instruments are used in varying combinations to influence overall economic growth and the distribution of credit, bank loans, investments and deposits. Their use also affects interest rates charged on loans or paid on deposits. The monetary policies and regulations of the Federal Reserve Board have had a significant effect on the operating results of financial institutions in the past and are expected to continue to do so in the future. The effects of such policies upon our business, financial condition and results of operations cannot be predicted.

 **We are an "emerging growth company," and any decision on our part to comply with certain reduced reporting and disclosure requirements applicable to emerging growth companies could make our common stock less attractive to investors.** 

PSB Financial qualifies as an "emerging growth company" under the JOBS Act. For as long as it continues to be an emerging growth company, it may choose to take advantage of exemptions from various reporting requirements applicable to public companies that are not available to emerging growth companies, including, but not limited to, reduced disclosure obligations regarding executive compensation in our periodic reports and proxy statements, and exemptions from the requirements of holding a non-binding advisory vote on executive compensation. As an emerging growth company, PSB Financial also will not be subject to Section 404(b) of the Sarbanes-Oxley Act of 2002, which would require that our independent auditors audit our internal control over financial reporting. In addition, as an emerging growth company, we expect to elect to take advantage of the extended transition periods for adopting new or revised financial accounting standards until the date they are required to be adopted by private companies (however, if any new or revised financial accounting standards would not apply to private companies, we would not be able to delay their adoption). Accordingly, our financial statements may not be comparable to those of public companies that adopt new or revised financial accounting standards as of an earlier date. Investors may find our common stock less attractive since we have chosen to rely on these exemptions. If some investors find our common stock less attractive as a result of any choices to reduce future disclosure, there may be a less active trading market for our common stock and the price of our common stock may be more volatile.

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 **We are also a "smaller reporting company," and even if we no longer qualify as an emerging growth company, any decision on our part to comply with certain reduced reporting and disclosure requirements applicable to smaller reporting companies could make our common stock less attractive to investors.** 

In addition to qualifying as an emerging growth company, PSB Financial qualifies as a "smaller reporting company" under the federal securities laws. For as long as it continues to be a smaller reporting company, we may choose to take advantage of exemptions from various reporting requirements applicable to public companies that are not available to companies that are not smaller reporting companies, including, but not limited to, reduced financial disclosure obligations and reduced disclosure obligations regarding executive compensation in our periodic reports and proxy statements. If some investors find our common stock less attractive as a result of any choices to reduce future disclosure, there may be a less active trading market for our common stock and the price of our common stock may be more volatile.

#### Risks Related to Economic Conditions

#### Inflation can have an adverse impact on our business and on our customers.
Inflation risk is the risk that the value of assets or income from investments will be worth less in the future as inflation decreases the value of money. While the United States has experienced a relatively low and stable inflation rate since the 1980s, inflation reached record highs in 2021 and 2022 in the wake of the COVID-19 pandemic. The year-over-year inflation rate was 7% at the end of 2021 and 6.5% at the end of 2022. As inflation increases and market interest rates rise, the value of our investment securities, particularly those with longer maturities, would decrease, although this effect can be less pronounced for floating rate instruments. In addition, inflation generally increases the cost of goods and services we use in our business operations, such as electricity and other utilities, which increases our noninterest expenses. Our customers are also affected by inflation and the rising costs of goods and services used in their households and businesses, which could have a negative impact on their ability to repay their loans with us or result in decreases in borrowing and deposits.

 **We have a high concentration of loans secured by real estate in our market area. Adverse economic conditions, both generally and in our market area, could adversely affect our financial condition and results of operations.** 

We have relatively few loans outside of our market area. Consequently, we have a greater risk of loan defaults and losses in the event of an economic downturn in our market area, as adverse economic conditions may have a negative effect on the ability of our borrowers to make timely payments of their loans. A return of recessionary conditions, inflationary pressure and/or negative developments in the domestic and international credit markets may significantly affect the markets in which we do business, the value of our loans, investments, and collateral securing our loans, and our ongoing operations, costs and profitability. Any of these negative events may result in higher-than-expected loan delinquencies, increase our levels of nonperforming and classified assets, and reduce demand for our products and services, which may cause us to incur losses and may adversely affect our capital, liquidity and financial condition.

 **A worsening of economic conditions could reduce demand for our products and services and/or increase our level of nonperforming loans, which could adversely affect our financial condition and results of operations.** 

Unlike larger financial institutions that are more geographically diversified, our profitability depends primarily on the general economic conditions in our primary market area. A deterioration in local economic conditions could result in any or all of the following consequences, which could have a material adverse effect on our business, financial condition, liquidity and results of operations, and could more negatively affect us compared to financial institutions with a more geographically diverse footprint:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • demand for our products and services may decline;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • loan delinquencies, problem assets and foreclosures may increase;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • collateral for loans, especially real estate, may decline in value, reducing customers' future borrowing power and the value of assets and collateral associated with existing loans; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • the net worth and liquidity of loan guarantors may decline, impairing their ability to honor commitments to us.

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Moreover, a significant decline in general economic conditions caused by inflation, recession, tariffs and international trade disputes, acts of terrorism, an outbreak of hostilities or other international or domestic calamities, an epidemic or pandemic, increased unemployment, natural disasters or other factors beyond our control could further impact these local economic conditions and could further negatively affect the financial results of our banking operations. In addition, deflationary pressures, while possibly lowering our operating costs, could have a significant negative effect on our borrowers, especially our business borrowers, and the values of underlying collateral securing loans, which could negatively affect our financial performance.

#### The soundness of other financial institutions could adversely affect us.
Our ability to engage in routine funding transactions could be adversely affected by the actions and commercial soundness of other financial institutions. Financial services institutions are interrelated as a result of trading, clearing and counterparty relationships. We have exposure to several different counterparties, and we routinely execute transactions with counterparties in the financial industry, including brokers, dealers, and other financial institutions. Defaults by, or even rumors or questions about, one or more financial services institutions, or the financial services industry generally, could lead to market-wide liquidity problems and losses or defaults by us or by other institutions and organizations. Many of these transactions expose us to credit risk in the event of default of our counterparty. In addition, our credit risk may be exacerbated when the collateral held by us cannot be liquidated or is liquidated at prices insufficient to recover the full amount of the financial instrument exposure due to us. There can be no assurance that any such losses would not materially and adversely affect our financial condition and results of operations.

#### Risks Related to Our Funding
 **If we are unable to generate core deposits, we may be required to rely more heavily on wholesale funding strategies for funding and liquidity needs, which could have an adverse effect on our profitability.** 

We must maintain sufficient funds to respond to the needs of depositors and borrowers. Deposits have traditionally been Pioneer Federal's primary source of funds for use in lending and investment activities. We also receive funds from loan repayments, investment maturities and income on other interest-earning assets. While we emphasize generating transaction accounts, we cannot guarantee if and when this will occur. Further, the considerable competition for deposits in our market area also has made, and may continue to make, it difficult for us to obtain reasonably priced deposits. Moreover, deposit balances can decrease if customers perceive alternative investments as providing a better risk/return tradeoff. If we are not able to increase our lower-cost transactional deposits at a level necessary to fund our asset growth or deposit outflows, we may be forced to seek other sources of funds, including other certificates of deposit, Federal Home Loan Bank advances, brokered deposits and lines of credit to meet the borrowing and deposit withdrawal requirements of our customers, which may be more expensive and have an adverse effect on our net interest margin and profitability. In addition, if our capital levels fell such that we were no longer considered "well capitalized," under federal law we would be subject to restrictions on accepting brokered deposits and on paying above-market rates for deposits. Additionally, if, based on a decrease in our tangible equity, the Federal Home Loan Bank of Des Moines were to determine that we have inadequate capital levels, in its discretion, it may limit our ability to utilize Federal Home Loan Bank advances.

#### Our funding sources may prove insufficient to replace deposits at maturity and support our future growth.
We must maintain sufficient funds to respond to the needs of depositors and borrowers. As a part of our liquidity management, we use a number of funding sources in addition to core deposit growth and repayments and maturities of loans and investments. As we continue to grow, we are likely to depend more on these other sources, which may include Federal Home Loan Bank borrowings and brokered deposits, among others. Adverse operating results or changes in industry conditions could lead to difficulty or an inability to access these additional funding sources. Our financial flexibility will be severely constrained if we are unable to maintain our access to funding or if adequate financing is not available to accommodate future growth at acceptable interest rates. If we are required to rely more heavily on more expensive funding sources to support future growth, our revenues may not increase proportionately to cover our costs. In this case, our operating margins and profitability would be adversely affected. Moreover, if Pioneer State

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Bank at any point ceases to be categorized as "well capitalized" under banking regulations, it would be prohibited from accepting or renewing brokered deposits without FDIC consent.

#### Risks Related to Competitive Matters

#### Strong competition within our market area may limit our growth and profitability.
Competition in the banking and financial services industry is intense. We compete with commercial banks, savings institutions, mortgage brokerage firms, credit unions, finance companies, mutual funds, insurance companies, brokerage and investment banking firms, financial technology (or "fintech") companies, and unregulated or less regulated non-bank entities. Many of these competitors are substantially larger than us and have substantially greater resources and higher lending limits than we have and offer certain services that we do not or cannot provide. In addition, some of our competitors offer loans with lower interest rates and/or more attractive terms than loans we offer. Competition also makes it increasingly difficult and costly to attract and retain qualified employees. We expect competition to increase in the future as a result of legislative, regulatory and technological changes and the continuing trend of consolidation in the financial services industry. Our profitability depends upon our continued ability to successfully compete for business and qualified employees in our market area. The greater resources and deposit and loan products offered by some of our competitors may limit our ability to increase our interest-earning assets. See "Business of Pioneer Federal — Competition."

#### Our small size makes it more difficult for us to compete.
Our small asset size makes it more difficult to compete with other financial institutions that are larger and can more easily afford to invest in the marketing and technologies needed to attract and retain customers. Because our principal source of income is the net interest income we earn on our loans and investments after deducting interest paid on deposits and other sources of funds, our ability to generate the revenues needed to cover our expenses and finance such investments is limited by the size of our loan and investment portfolios. Accordingly, we are not always able to offer new products and services as quickly as our competitors. Our lower earnings may also make it more difficult to offer competitive salaries and benefits. Finally, as a smaller institution, we are disproportionately affected by the continually increasing costs of compliance with new banking and other regulations and will be disproportionately affected by the incremental expenses associated with being a publicly traded company.

 **The grant of bank charters and special purpose charters by the Office of the Comptroller of the Currency to fintech companies could present a market risk to us.** 

In July 2018, the Office of the Comptroller of the Currency announced that it would begin to accept and evaluate charters for entities that wanted to conduct certain components of a banking business pursuant to a federal charter, known as a special purpose national bank charter. An institution with a special purpose national bank charter may engage in paying checks, lending money and taking deposits. The Office of the Comptroller of the Currency has granted national bank charters to companies that were previously non-bank fintech companies. Recipients of any special purpose national bank charters or bank charters to fintech applicants' charters may undertake business activities that are competitive with the activities of Pioneer State Bank, which could increase our competition and result in a material adverse effect on our financial condition and results of operations.

#### Risks Related to Operational Matters
 **We depend on our management team and other key employees to implement our business strategy and execute successful operations and we could be harmed by the loss of their services.** 

We depend on the services of the members of our management team who direct our strategy and operations, particularly our President and Chief Executive Officer who also currently serves as our principal financial officer. Our management and lending personnel possess substantial expertise, extensive knowledge of our markets and key business relationships. Our loss of these persons, or our inability to hire additional

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qualified personnel, could impact our ability to implement our business strategy and could have a material adverse effect on our results of operations and our ability to compete in our markets. See "Management."

#### We face significant operational risks because of our reliance on technology. Our information technology systems may be subject to failure, interruption or security breaches.
Information technology systems are critical to our business. Our business requires us to collect, process, transmit and store significant amounts of confidential information regarding our customers, employees and our own business, operations, plans and business strategies. We use various technology systems to manage our customer relationships, general ledger, securities investments, deposits, and loans. Our computer systems, data management and internal processes, as well as those of third parties, are integral to our performance. Our operational risks include the risk of malfeasance by employees or persons outside our company, errors relating to transaction processing and technology, systems failures or interruptions, breaches of our internal control systems and compliance requirements, and business continuation and disaster recovery. There have been increasing efforts by third parties to breach data security at financial institutions. Such attacks include computer viruses, malicious or destructive code, phishing attacks, denial of service or information or other security breaches that could result in the unauthorized release, gathering, monitoring, misuse, loss or destruction of confidential, proprietary and other information, damages to systems, or other material disruptions to network access or business operations. We have established policies and procedures to prevent or limit the impact of system failures, interruptions and security breaches, including privacy breaches and cyber-attacks. Although we take protective measures and believe that we have not experienced any of the data breaches described above, the security of our computer systems, software, and networks may be vulnerable to breaches, unauthorized access, misuse, computer viruses, or other malicious code and cyber-attacks that could have an impact on information security. Because the techniques used to cause security breaches change frequently, we may be unable to proactively address these techniques or to implement adequate preventative measures.

If there is a breakdown in our internal control systems, improper operation of systems or improper employee actions, or a breach of our security systems, including if confidential or proprietary information were to be mishandled, misused or lost, we could suffer financial loss, loss of customers and damage to our reputation, and face regulatory action or civil litigation. Any of these events could have a material adverse effect on our financial condition and results of operations. Insurance coverage may not be available for such losses, or where available, such losses may exceed insurance limits.

 **Our transition to a new main data processing platform, which is scheduled for 2026, could significantly disrupt the continuity of our banking services including branch, telephone, online and mobile banking.** 

We are scheduled to transition to a new main data processing platform vendor in 2026. The transition to a new main data processing platform is a complex undertaking, requiring substantial planning and coordination between the bank and its data processing vendors. From time to time, other banks have experienced significant disruptions in the continuity of their banking services including branch, telephone, online and mobile banking as the result of technical problems encountered during the conversion of a core data processing platform to a new platform. Any significant disruption in the continuity of our banking services could have a material adverse effect on our business, financial condition and operating results.

#### We outsource critical operations to third-party service providers. Systems failures, interruptions and cybersecurity breaches could have a material adverse effect on us .
We outsource a majority of our data processing requirements to third-party providers. Accordingly, our operations are exposed to the risk that these vendors will not perform according to our contractual agreements with them, or we also could be adversely affected if such an agreement is not renewed by the third-party vendor or is renewed on terms less favorable to us. If our third-party providers encounter difficulties, or if we have difficulty communicating with those service providers, our ability to adequately process and account for transactions could be affected, and our business operations could be adversely affected, which could have a material adverse effect on our financial condition and results of operations. Threats to information security also exist in the processing of customer information through various other vendors and their personnel, and our third-party service providers may be vulnerable to unauthorized

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access, computer viruses, phishing schemes and other security breaches. We may have to expend additional resources to protect against the threat of such security breaches and computer viruses, or to alleviate problems caused by such security breaches or viruses. To the extent that the activities of our third-party service providers or the activities of our customers involve the storage and transmission of confidential information, security breaches and viruses could expose us to claims, regulatory scrutiny, litigation costs and other possible liabilities. To our knowledge, the services and programs provided to us by third parties have not experienced any material security breaches. However, the existence of cyber-attacks or security breaches at third parties with access to our data, such as vendors, may not be disclosed to us in a timely manner.

#### Our Board of Directors relies to a large degree on management and outside consultants in overseeing cybersecurity risk management.
Our Board of Directors has appointed an Information Systems Officer, who is largely responsible for overseeing information systems security. We also have an Information Technology Committee to assist in directing the information technology functions of our business. Both the Information Systems Officer and Information Technology Committee provide reports to our Board.

Pioneer Federal also engages outside consultants to support its cybersecurity efforts. The directors of Pioneer Federal do not have formal training or significant experience in cybersecurity risk management in other business entities comparable to Pioneer Federal or to the future businesses of Pioneer State Bank or PSB Financial.

 **We are a community bank and our ability to maintain our reputation is critical to the success of our business. The failure to do so may materially adversely affect our performance.** 

We are a community bank, and our reputation is one of the most valuable components of our business. A key factor in implementing our business strategy is our reputation for customer service and knowledge of local markets to expand our presence by capturing new business opportunities from existing and prospective customers in our market area and contiguous areas. Threats to our reputation can come from many sources, including adverse sentiment about financial institutions generally, unethical practices, employee misconduct, failure to deliver minimum standards of service or quality, compliance deficiencies, cybersecurity incidents and questionable or fraudulent activities of our customers. Social media may exacerbate the risk of negative publicity, including by amplifying and accelerating the dissemination of rumors and disinformation. The Financial Stability Board, an international body that monitors and makes recommendations about the global financial system, released a report in October 2024 acknowledging the potential for social media to facilitate or accelerate deposit runs through the propagation of information, including rumors or false information. In its report, the Financial Stability Board noted that the repetition of information in social media, which users experience through the re-posting or liking of other people's posts, can reinforce a message and may make the message more believable. Negative publicity regarding our business, employees, or customers, with or without merit, may result in the loss of customers and employees, costly litigation and increased governmental regulation, all of which could adversely affect our business and operating results.

 **The cost of additional finance and accounting systems, procedures and controls in order to satisfy our new public company reporting requirements will substantially increase our expenses.** 

As a result of the completion of the stock offering and conversion, we will become a publicly traded reporting company, meaning that we will be required to file periodic financial reports under the Securities Exchanges Act of 1934, as amended (the "Exchange Act"). The obligations of being a public company, including our periodic reporting obligations, will require significant expenditures and place additional demands on our management team. We will make changes to our internal controls and procedures for financial reporting and accounting systems to meet our reporting obligations as a public company. Any failure to achieve and maintain an effective internal control environment could have a material adverse effect on our business and stock price. In addition, we may need to hire additional compliance, accounting and financial staff with appropriate public company experience and technical knowledge, and we may not be able to do so in a timely fashion. As a result, we may need to rely on outside consultants to provide these services for us until qualified personnel are hired. These obligations will increase our operating expenses and could divert management's attention from our operations.

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 **We are subject to litigation risk, and any pending or potential litigation may have an adverse effect on our business, financial condition and results of operations.** 

Although we are not a party to any material pending or potential legal proceedings, pending or potential legal proceedings, including class action lawsuits, can pose significant financial and other risks to our organization. Prosecuting or defending against a lawsuit or other legal proceeding is often costly. Legal issues, such as lawsuits, unenforceable contracts, and adverse judgments, can potentially disrupt our operations, potentially materially reduce our earnings, capital and liquidity, and otherwise materially and adversely affect our business, financial condition, results of operations, and reputation.

#### Acquisition and other growth-driven transactions and initiatives involve execution, financial and other risks.
Although we presently have no definitive plans or agreements to engage in any acquisitions or material growth initiatives, a significant element of our business strategy is to pursue acquisition and growth opportunities that complement our business plan and strategies should they arise. Among the execution risks of acquisitions are failure to identify and compete for acquisition candidates, failure to effectively integrate the operations of an acquired institution with our own, and failure to effectively manage the operations of the larger combined company so as to realize the expected benefits, financial and otherwise, of a transaction. Expansion initiatives involve significant upfront expenses and similar execution risks, including cost overruns, failure to effectively manage expanded operations or to compete in expanded markets so as to realize the expected benefits of such initiatives. From a financial perspective an acquisition could involve significant cash expenditures and/or a material increase in the number of our outstanding shares of common stock, which could materially dilute stockholder value by diluting stockholders' equity per share and earnings per share. In addition, a portion of the purchase price of an acquisition may likely be allocated to goodwill and other identifiable intangible assets. Under current accounting rules, if goodwill or other identifiable intangible assets becomes impaired, we would be required to incur a non-cash impairment charge which could have a material adverse effect on our earnings, stockholders' equity, and stock price. Pursuit of acquisitions and material growth initiatives may also disrupt our business by diverting management time and resources away from our daily business operations.

#### Risks Related to Accounting Matters

#### Changes in management's estimates and assumptions may have a material impact on our financial statements and our financial condition or operating results.
In preparing this prospectus, as well as in preparing the periodic reports PSB Financial will be required to file under the Securities Exchange Act of 1934, as amended (the "Exchange Act"), upon the completion of the stock offering and conversion, including PSB Financial's financial statements, our management is and will be required under applicable rules and regulations to make estimates and assumptions as of a specified date. These estimates and assumptions are based on management's best estimates as of that date and are subject to substantial risk and uncertainty. Materially different results may occur as circumstances change and additional information becomes known. Areas requiring significant estimates and assumptions by management include our evaluation of the adequacy of our allowance for credit losses and the fair value of financial instruments.

#### Changes in accounting standards could affect reported earnings.
The bodies responsible for establishing accounting standards, including the Financial Accounting Standards Board, the SEC and other regulatory bodies, periodically change the financial accounting and reporting guidance that governs the preparation of our financial statements. These changes can be hard to predict and can materially impact how we record and report our consolidated financial condition and results of operations, in some cases, we could be required to apply new or revised guidance retroactively.

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#### Risks Related to the Stock Offering
 **We will have a relatively high capital level after the completion of the stock offering. We expect our return on equity to be low following the stock offering and conversion, which could negatively affect the trading price of our shares of common stock.** 

Net income divided by average stockholders' equity, known as "return on equity," is a ratio many investors use to compare the relative performance of financial institutions. Our return on average equity was 0.81% for the six months ended June 30, 2025, 1.24% for the year ended December 31, 2024 and 1.49% for the year ended December 31, 2023. Our average equity to average assets was 16.41% for the six months ended June 30, 2025, 16.10% for the year ended December 31, 2024, and 15.34% for the year ended December 31, 2023. Our total equity capital was $18.4 million as of June 30, 2025. Assuming the completion of the stock offering and conversion, our pro forma consolidated stockholders' equity at June 30, 2025 is estimated to be between $25.4 million at the minimum of the offering range and $30.4 million at the adjusted maximum of the offering range. We expect our return on equity to be lower than our peers unless and until we are able to leverage our capital, including the additional capital from the stock offering. Our return on equity also will be negatively affected by added expenses associated with our ESOP and the stock-based benefit plans we intend to adopt after the completion of the stock offering and conversion, as well as the additional costs that we will incur as a publicly traded company, including our periodic reporting obligations. Our ability to increase earnings organically is relatively limited primarily given our small size and the demographics of our market area. Unless and until we can increase our earnings and leverage our capital including the capital raised in the stock offering, we expect that our return on equity will be low, which may have an adverse effect on the trading price of our shares of common stock.

#### The future price of our shares of common stock may be less than the $10.00 purchase price per share in the stock offering.
If you purchase shares of common stock in the stock offering, you may not be able to sell them at or above the $10.00 purchase price. The aggregate purchase price of the shares of common stock sold in the stock offering is based upon an independent third-party appraisal of the pro forma market value of PSB Financial. The appraisal is not intended, and should not be construed, as a recommendation of any kind as to the advisability of purchasing shares of our common stock, and is based on certain estimates, assumptions and projections, all of which are subject to change from time to time. Our aggregate pro forma market value as reflected in the final independent appraisal may exceed the market price of our shares of common stock after the completion of the stock offering and conversion, which may result in our stock trading below the initial offering price of $10.00 per share. After the shares of our common stock begin trading, the trading price of the common stock will be determined by the marketplace and will be influenced by many factors outside of our control, including prevailing interest rates, investor perceptions, securities analyst research reports and general industry, geopolitical and economic conditions. Publicly traded stocks, including stocks of financial institutions, often experience substantial market price volatility. This is particularly true of stocks with a low trading volume, which we anticipate to be the case for PSB Financial. Price fluctuations in our common stock may be unrelated to our operating performance.

 **There will be a limited trading market in our common stock, which could hinder your ability to sell our common stock and may lower the market price of the stock.** 

We have never issued stock and, therefore, there is no current trading market for the shares of common stock. Upon completion of the stock offering and conversion, we expect our common stock will be quoted on the OTCQB Market. We expect that our "public float," which is the total number of our outstanding shares of common stock less the number of shares held by our ESOP and by our directors and executive officers, and which is used as a measure of shares available for trading, will be relatively low comparable to the holding companies of other community banks of comparable size to Pioneer State Bank. The limited trading market could also result in a wider spread between the "bid" and "ask" prices for the common stock, which could make it more difficult to sell a large number of shares at one time and could mean a sale of a large number of shares at one time could depress the market price.

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 **You may not be able to sell your shares of common stock until you have received a statement reflecting ownership of shares, which will affect your ability to take advantage of any changes in the stock price immediately following the stock offering.** 

A statement reflecting ownership of the shares of common stock you purchased in the stock offering may not be delivered to you for several days after the completion of the stock offering and conversion and the commencement of trading in the common stock. Your ability to sell the shares of common stock before receiving your ownership statement will depend on arrangements you may make with a brokerage firm, and you may be unable sell your shares of common stock until you have received your ownership statement. As a result, you may not be able to take advantage of any changes in the price of the common stock price once trading commences following the completion of the stock offering and conversion.

#### A significant percentage of our common stock will be held by our directors and executive officer and benefit plans.
We expect that our directors and executive officer, together with their associates, will subscribe for 102,700 shares of common stock in the stock offering. In addition, we intend to establish an ESOP that will purchase 8.0% of the shares sold in the stock offering. As a result, upon consummation of the stock offering and conversion, an aggregate up to 184,300 shares, or 18.1%, and 213,100 shares, or 15.4%, of our outstanding common stock would be held by our directors and executive officer and their associates and by our ESOP based on the minimum and maximum of the offering range, respectively. Further, additional shares would be held by management following the implementation of an equity incentive plan, which we intend to implement no earlier than six months following the completion of the stock offering and conversion following the receipt of stockholder approval. The Articles of Incorporation ("Articles") of PSB Financial permit the Board of Directors to amend or repeal any provision contained in the Articles without shareholder approval unless otherwise required by the Articles or the Maryland General Corporation Law. All rights conferred upon stockholders are granted subject to this reservation. Any amendment or repeal of any provision of the Articles that is required to be or is directed by the Board of Directors to be submitted for consideration and vote by the stockholders must be approved by at least two-thirds (2/3) of all votes entitled to be cast. Certain sections of the Articles contain supermajority voting provisions that require that the holders of at least 80% of PSB Financial's outstanding shares of voting stock approve any amendments thereto. The Bylaws of PSB Financial may be amended or repealed exclusively by the Board of Directors without stockholder approval. If our directors and executive officer and their associates and benefit plans hold more than 20% of our outstanding common stock following the completion of the stock offering and conversion, the shares held by these individuals and benefit plans could be voted in a manner that would ensure that the 80% supermajority needed to approve such action could not be attained. For more information on the restrictions included in the articles of incorporation and bylaws of PSB Financial, see "Restrictions on Acquisition of PSB Financial."

 **We have broad discretion in using the net proceeds of the stock offering. Our failure to effectively deploy the net proceeds may have an adverse effect on our financial performance.** 

We intend to contribute between $4.1 million and $5.9 million of the net proceeds of the stock offering (or $6.9 million at the adjusted maximum of the offering range) to Pioneer State Bank. We may use the remaining net proceeds to invest in short-term investments and for general corporate purposes. We also expect to use a portion of the net proceeds we retain to fund a loan to our ESOP to purchase shares of common stock in the stock offering. Pioneer State Bank may use the net proceeds it receives to fund new loans, expand its retail banking franchise by establishing or acquiring new branches or for other general corporate purposes. However, except for funding the loan to the ESOP, we have not allocated specific amounts of the net proceeds for any of these purposes, and we will have broad discretion in determining the amount of the net proceeds we apply to different uses and when we apply or reinvest such proceeds. Also, certain of these uses, such as establishing or acquiring new branches, will require the approval of our bank regulators. We have not established a timetable for investing the net proceeds, and we cannot predict how long we will require to invest the net proceeds. Accordingly, we may not invest the proceeds in a way that would be most beneficial to PSB Financial, its stockholders or Pioneer State Bank. Our failure to reinvest these funds effectively would reduce our profitability and may adversely affect the value of our common stock. For additional information see "How We Intend to Use the Proceed from the Stock Offering."

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#### Our stock-based benefit plans will increase our expenses and reduce our income.
We intend to adopt one or more new stock-based benefit plans after the stock offering and conversion, subject to stockholder approval, which will increase our annual compensation and benefit expenses related to the stock options and stock awards granted to participants under the new stock-based benefit plans. The actual amount of these new stock-related compensation and benefit expenses will depend on the number of options and stock awards granted under the plans, the fair market value of our stock or options on the date of grant, the vesting period, and other factors which we cannot predict at this time. If we adopt stock-based benefit plans within 12 months following the stock offering and conversion, the shares of common stock reserved for issuance pursuant to awards of restricted stock and grants of options under such plans would be limited to 4% and 10%, respectively, of the number of shares of our common stock sold in the stock offering. If we adopt stock-based benefit plans more than 12 months after the completion of the stock offering and conversion, we may adopt plans that allow for greater amounts of awards and options and, therefore, we could award restricted shares of common stock or grant options in excess of these amounts, which would further increase costs.

Our ESOP intends to purchase 8% of the shares of common stock sold in the stock offering. The estimated cost of acquiring these shares is between $816,000 at the minimum of the offering range and $1.3 million at the adjusted maximum of the offering range, assuming it is able to purchase all such shares in the stock offering. We will record an annual ESOP expense in an amount equal to the fair value of shares of common stock committed to be released to participating employees for that year. If our common stock appreciates in value over time, this compensation expense will increase. For further information, see "Management — Benefits to be Considered Following Completion of the Stock Offering and Conversion."

 **We have not determined when we will adopt one or more new stock-based benefit plans. Stock-based benefit plans adopted more than 12 months following the completion of the conversion may exceed regulatory restrictions on the size of stock-based benefit plans adopted within 12 months, which would further increase our costs.** 

If we adopt stock-based benefit plans more than 12 months following the completion of the stock offering and conversion, then grants of shares of common stock or stock options under our proposed stock-based benefit plans may exceed 4% and 10%, respectively, of the number of shares of common stock sold in the stock offering. Stock-based benefit plans that provide for awards in excess of these amounts would increase our costs beyond the amounts estimated in "— Our stock-based benefit plans will increase our expenses and reduce our income." Stock-based benefit plans that provide for awards in excess of these amounts could also result in dilution to stockholders in excess of that described in "— The implementation of stock-based benefit plans may dilute your ownership interest. Historically, stockholders have approved these stock-based benefit plans." Although the implementation of stock-based benefit plans would be subject to stockholder approval, the timing of the implementation of such plans will be at the discretion of our Board of Directors.

#### The implementation of stock-based benefit plans may dilute your ownership interest.
We intend to adopt one or more new stock-based benefit plans following the stock offering and conversion, the implementation of which will require stockholder approval. These plans may be funded either through open market purchases of our common stock or from the issuance of authorized but unissued shares of common stock. Our ability to repurchase shares of our common stock to fund these plans will be subject to many factors, including applicable regulatory restrictions on stock repurchases, the availability of stock in the market, the trading price of our stock, our capital levels, alternative uses for our capital and our financial performance. While our intention is to fund the new stock-based benefit plans through open market purchases, stockholders would experience a 10% dilution in ownership interest if newly issued shares of our common stock are used to fund stock options in an amount equal to 9.1% of the number of shares sold in the stock offering, and all such stock options are exercised, and a 3.9% dilution in ownership interest if newly issued shares of our common stock are used to fund shares of restricted common stock in an amount equal to 4% of the number of shares sold in the stock offering. Such dilution would also reduce earnings per share. If we adopt the plans more than 12 months following the stock offering and conversion, new stock-based benefit plans would not be subject to these size limitations and stockholders could experience even greater dilution.

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#### Our stock value may be negatively affected by applicable regulations that restrict stock repurchases.
Applicable regulations generally restrict us from repurchasing our shares of common stock during the first year following the completion of the stock offering and conversion. Stock repurchases are a capital management tool that can enhance the value of a company's stock, and our inability to repurchase our shares of common stock during the first year following the stock offering may negatively affect our stock price.

#### Various factors may make takeover attempts more difficult to achieve.
Certain provisions of our articles of incorporation and bylaws and federal banking laws, including regulatory approval requirements, could make it more difficult for a third party to acquire control of PSB Financial without our Board of Directors' approval. Under regulations applicable to the conversion, for a period of three years following completion of the conversion, no person may offer to acquire or acquire beneficial ownership of more than 10% of our outstanding shares of common stock without prior approval of the Federal Reserve Board. Under federal law, subject to certain exemptions, a person, entity or group must notify the Federal Reserve Board and receive the Federal Reserve Board's non-objection before acquiring control of a bank holding company or a savings and loan holding company. There also are provisions in our articles of incorporation and bylaws that we may use to delay or block a takeover attempt. Furthermore, shares of restricted stock and stock options that we may grant to employees and directors, stock ownership by our management and directors and other factors may make it more difficult for companies or persons to acquire control of PSB Financial without the consent of our Board of Directors and may increase the cost of an acquisition. Taken as a whole, these statutory or regulatory provisions and provisions in our articles of incorporation and bylaws could result in our being less attractive to a potential acquirer and therefore could adversely affect the market price of our common stock. For additional information, see "Restrictions on Acquisition of PSB Financial" and "Management — Benefits to be Considered Following Completion of the Stock Offering and Conversion."

 **Our articles of incorporation provide that, subject to limited exception, state and federal courts in the State of Maryland are the sole and exclusive forum for certain stockholder litigation matters, which could limit our stockholders' ability to obtain a favorable judicial forum for disputes with us or our directors, officers, and other employees.** 

The articles of incorporation of PSB Financial provide that, unless PSB Financial consents in writing to the selection of an alternative forum, the sole and exclusive forum for (i) any derivative action or proceeding brought on behalf of PSB Financial, (ii) any action asserting a claim of breach of a fiduciary duty owed by any director, officer or other employee of PSB Financial to PSB Financial or its stockholders, (iii) any action asserting a claim arising pursuant to any provision of the Maryland General Corporation Law, or (iv) any action asserting a claim governed by the internal affairs doctrine will be conducted in a state or federal court located within the State of Maryland, in all cases subject to the court's having personal jurisdiction over the indispensable parties named as defendants. This exclusive forum provision does not apply to claims arising under the federal securities laws. This exclusive forum provision may limit a stockholder's ability to bring a claim in a judicial forum it finds favorable for disputes with PSB Financial and its directors, officers, and other employees or may cause a stockholder to incur additional expense by having to bring a claim in a judicial forum that is distant from where the stockholder resides, or both. In addition, if a court were to find this exclusive forum provision to be inapplicable or unenforceable in a particular action, we may incur additional costs associated with resolving the action in another jurisdiction, which could have a material adverse effect on our financial condition and results of operations.

 **You may not revoke your decision to purchase PSB Financial common stock in the subscription offering or in any community offering after you send us your stock order form.** 

Funds submitted or automatic withdrawals authorized in connection with the purchase of shares of common stock in the subscription offering and in any community offering will be held by us until the completion or termination of the stock offering and conversion, including any extension of the expiration date and consummation of any syndicated community offering. Because the completion of the stock offering and conversion will be subject to regulatory approvals and an update of the independent appraisal, among other factors, there may be one or more delays in completing the stock offering and conversion. Orders

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submitted in the subscription offering and in any community offering are irrevocable, and purchasers will have no access to their funds unless the stock offering is terminated, or extended beyond [ ], 2026, or the number of shares to be sold in the stock offering is decreased to fewer than 1,020,000 shares or increased to more than 1,587,000 shares.

#### The distribution of subscription rights could have adverse income tax consequences.
If the subscription rights granted in connection with the stock offering are deemed to have an ascertainable value, receipt of such rights may be taxable in an amount equal to such value. Whether subscription rights are considered to have ascertainable value is an inherently factual determination.

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#### SELECTED FINANCIAL AND OTHER DATA OF PIONEER FEDERAL
The following tables set forth selected historical financial and other data of Pioneer Federal at the dates and for the periods indicated. The information for the six months ended June 30, 2025 and 2024 is not audited but, in the opinion of management, includes all adjustments necessary for a fair presentation. All of these adjustments are normal and recurring. The results of operations for the six months ended June 30, 2025 are not necessarily indicative of the results of operations that may be expected for the entire year. The information at and for the years ended December 31, 2024 and 2023 is derived in part from, and should be read together with, the audited financial statements and related notes beginning at page F-1 of this prospectus.

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| | | | | |
|:---|:---|:---|:---|:---|
| |  | | **At December 31,**  | **At December 31,**  |
| | **At June 30, 2025**  | **At June 30, 2025**  | **2024**  | **2023**  |
|  |  |  | **(ln thousands)**  |  |
| **Selected Financial Condition Data:** |  |  |  |  |
| Total assets  |  | $113259 | $112109 | $112728 |
| Cash and cash equivalents  |  | 9199 | 6433 | 10193 |
| Investment securities available for sale  |  | 9412 | 9538 | 11304 |
| Investment securities held to maturity  |  | 1850 | 2005 | 2836 |
| Loans, net  |  | 85132 | 86327 | 81036 |
| Premises and equipment, net  |  | 4977 | 5118 | 4715 |
| Federal Home Loan Bank stock  |  | 427 | 428 | 422 |
| Cash value of bank owned life insurance  |  | 754 | 744 | 764 |
| Total deposits  |  | 85842 | 85090 | 86071 |
| Federal Home Loan Bank advances  |  | 8000 | 8000 | 8000 |
| Total equity capital  |  | 18428 | 18154 | 17829 |

---

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **For the Six Months ended <br> June 30,**  | **For the Six Months ended <br> June 30,**  | **For the Six Months ended <br> June 30,**  | **For the Years Ended <br> December 31,**  | **For the Years Ended <br> December 31,**  |
| | **2025**  | **2025**  | **2024**  | **2024**  | **2023**  |
|  |  |  | **(In thousands)**  | **(In thousands)**  |  |
| **Selected Operating Data:** |  |  |  |  |  |
| Total interest income  |  | $2600 | $2436 | $5015 | $4381 |
| Total interest expense  |  | 867 | 864 | 1822 | 1089 |
| Net interest income  |  | 1733 | 1572 | 3193 | 3292 |
| (Recovery of) provision for credit losses on loans  |  | (105) |  | 68 | 18 |
|  (Recovery of) provision for credit losses on unfunded loan commitments  |  |  |  | (39) | 17 |
| Net interest income after provision for credit losses  |  | 1838 | 1572 | 3164 | 3257 |
| Total noninterest income  |  | 128 | 414 | 495 | 269 |
| Total noninterest expense  |  | 1831 | 1722 | 3362 | 3136 |
| Income before income taxes  |  | 135 | 264 | 297 | 390 |
| Income tax expense  |  | 9 | 59 | 73 | 133 |
| Net income  |  | $126 | $205 | $224 | $257 |

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| | | | | |
|:---|:---|:---|:---|:---|
| | **At or For the <br> Six Months <br> Ended <br> June 30,**  | **At or For the <br> Six Months <br> Ended <br> June 30,**  | **At or For the <br> Years Ended <br> December 31,**  | **At or For the <br> Years Ended <br> December 31,**  |
| | **2025**  | **2024**  | **2024**  | **2023**  |
| **Performance Ratios<sup>(1)</sup>:** |  |  |  |  |
| Return on average assets  | 0.23% | 0.37% | 0.20% | 0.23% |
| Return on average equity  | 1.37% | 2.31% | 1.24% | 1.49% |
| Interest rate spread<sup>(2)</sup>  | 2.90% | 2.63% | 2.65% | 2.79% |
| Net interest margin<sup>(3)</sup>  | 3.28% | 2.99% | 3.03% | 3.04% |
| Noninterest expense as a percentage of average assets  | 3.28% | 3.08% | 2.99% | 2.78% |
| Efficiency ratio<sup>(4)</sup>  | 98.37% | 86.69% | 91.17% | 88.06% |
|  Average interest-earning assets as a percentage of average interest- bearing liabilities  | 123.26% | 121.85% | 122.25% | 124.52% |
| **Capital Ratios:** |  |  |  |  |
| Average equity as a percentage of average assets  | 16.41% | 15.87% | 16.10% | 15.34% |
| Tier 1 capital as a percentage of average assets  | 17.01% | 16.95% | 16.80% | 16.42% |
| **Asset Quality Ratios:** |  |  |  |  |
| Allowance for credit losses as a percentage of total loans  | 1.27% | 1.33% | 1.37% | 1.38% |
|  Allowance for credit losses as a percentage of nonperforming <br> loans  | 153.03% | 94.68% | 70.37% | 191.06% |
| Allowance for credit losses as a percentage of non-accrual loans  | 986.21% | 0.00% | 206.53% | 0.00% |
| Non-accrual loans as a percentage of total loans  | 0.13% | 0.00% | 0.67% | 0.00% |
|  Net recoveries (charge-offs) as a percentage of average outstanding loans  | (0.01)% | 0.00% | 0.00% | 0.00% |
| Nonperforming loans as a percentage of total loans  | 0.83% | 1.40% | 1.95% | 0.72% |
| Nonperforming loans as a percentage of total assets  | 0.63% | 1.06% | 1.53% | 0.53% |
| Total nonperforming assets as a percentage of total assets  | 0.63% | 1.06% | 1.53% | 0.53% |
| **Other Ratios:** |  |  |  |  |
| Total loans as a percentage of total deposits  | 100.91% | 99.59% | 103.35% | 95.92% |
| **Other Data:** |  |  |  |  |
| Number of offices  | 2 | 2 | 2 | 2 |
| Number of full-time employees  | 21 | 20 | 20 | 20 |
| Number of part-time employees  | 0 | 0 | 1 | 0 |

---

(1) Performance ratios for the six months ended June 30, 2025 and 2024 are annualized.

(2) Represents the difference between the weighted average yield on interest-earning assets and the weighted average cost of interest-bearing liabilities.

(3) Represents net interest income as a percentage of average interest-earning assets.

(4) Represents noninterest expenses divided by the sum of net interest income and noninterest income.

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#### FORWARD-LOOKING STATEMENTS
This prospectus contains forward-looking statements, which can be identified by the use of words such as "estimate," "project," "believe," "intend," "anticipate," "assume," "plan," "seek," "expect," "may," "should," "indicate," "would," "believe," "contemplate," "continue," "target" and words of similar meaning. These forward-looking statements include, but are not limited to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • statements of our goals, intentions and expectations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • statements regarding our business plans, prospects, growth and operating strategies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • statements regarding the quality of our loan and investment portfolios; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • estimates of our risks and future costs and benefits.

These forward-looking statements are based on our current beliefs and expectations and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond our control. In addition, these forward-looking statements are subject to assumptions with respect to future business strategies and decisions that are subject to change. We are under no duty to and do not take any obligation to update any forward-looking statements after the date of this prospectus.

The following factors, among others, could cause actual results to differ materially from the anticipated results or other expectations expressed in the forward-looking statements:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • general economic conditions, either nationally or in our market areas, which are worse than expected including as a result of employment levels and labor shortages, and the effects of inflation, a potential recession or slowing of economic growth;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • inflation and changes in the interest rate environment that reduce our margins and yields, the fair value of financial instruments, our level of loan originations, or increase the level of defaults, losses and prepayments on loans we have made and will make in the future;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • changes in the level and direction of loan delinquencies and write-offs and changes in estimates of the adequacy of the allowance for credit losses;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • our ability to access cost-effective funding;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • our ability to maintain adequate liquidity, primarily through deposits;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • fluctuations in real estate values and in the conditions of the residential real estate and commercial real estate markets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • demand for loans and deposits in our market area;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • our ability to implement and change our business strategies, and the expense related to such implementation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • increased competition among depository and other banking and non-banking institutions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • adverse changes in the securities markets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • changes in laws or government regulations or policies affecting financial institutions, including changes in regulatory fees, capital requirements and insurance premiums;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • changes in the quality or composition of our loan or investment portfolios;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • technological changes that may be more difficult, resources intensive or expensive than expected;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • the inability of third-party providers to perform as expected;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • a failure or breach of our operational or information security systems or infrastructure, including cyberattacks;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • our ability to manage market risk, credit risk and operational risk;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • our ability to efficiently and successfully enter new markets and capitalize on growth opportunities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • changes in consumer spending, borrowing and savings habits;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • changes in accounting policies and practices, as may be adopted by the bank regulatory agencies, the Financial Accounting Standards Board, the SEC or the Public Company Accounting Oversight Board;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • our ability to retain key employees; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • changes in the financial condition, results of operations or future prospects of issuers of securities that we own.

Because of these and a wide variety of other uncertainties, our actual future results may be materially different from the results indicated by these forward-looking statements. See "Risk Factors" beginning on page 14 of this prospectus.

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#### HOW WE INTEND TO USE THE PROCEEDS FROM THE STOCK OFFERING
Although we cannot determine what the actual net proceeds from the sale of the shares of common stock in the stock offering will be until the stock offering is completed, we anticipate that the net proceeds will be between $8.2 million and $11.8 million, or $13.9 million if the offering range is increased by 15%.

We intend to distribute the net proceeds as follows:

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Based Upon the Sale of $10.00 Per Share of:**  | **Based Upon the Sale of $10.00 Per Share of:**  | **Based Upon the Sale of $10.00 Per Share of:**  | **Based Upon the Sale of $10.00 Per Share of:**  | **Based Upon the Sale of $10.00 Per Share of:**  | **Based Upon the Sale of $10.00 Per Share of:**  | **Based Upon the Sale of $10.00 Per Share of:**  | **Based Upon the Sale of $10.00 Per Share of:**  |
| | **1,020,000 Shares**  | **1,020,000 Shares**  | **1,200,000 Shares**  | **1,200,000 Shares**  | **1,380,000 Shares**  | **1,380,000 Shares**  | **1,587,000 Shares<sup>(1)</sup>**  | **1,587,000 Shares<sup>(1)</sup>**  |
| | **Amount**  | **Percent <br> of Net <br> Proceeds**  | **Amount**  | **Percent <br> of Net <br> Proceeds**  | **Amount**  | **Percent <br> of Net <br> Proceeds**  | **Amount**  | **Percent <br> of Net <br> Proceeds**  |
| Offering proceeds  | $10200000 |  | $12000000 |  | $13800000 |  | $15870000 |  |
| Less: offering expenses  | 2000000 |  | 2000000 |  | 2000000 |  | 2000000 |  |
| &nbsp;&nbsp;&nbsp; Net offering proceeds<sup>(2)</sup>  | $8200000 |  | $10000000 |  | $11800000 |  | $13870000 |  |
| Distribution of net proceeds: |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; To Pioneer State Bank  | $4100000 | 50.00% | $5000000 | 50.00% | $5900000 | 50.00% | $6935000 | 50.00% |
| &nbsp;&nbsp;&nbsp; To fund loan to ESOP  | 816000 | 10.00% | 960000 | 9.60% | 1104000 | 9.40% | 1270000 | 9.20% |
| Retained by PSB Financial  | $3284000 | 40.00% | $4040000 | 40.40% | $4796000 | 40.60% | $5665000 | 40.80% |

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(1) As adjusted to give effect to an increase in the number of shares, which could occur due to a 15% increase in the offering range to reflect demand for the shares or changes in market conditions following the commencement of the stock offering.

(2) Assumes that all shares of common stock are sold in the subscription offering and any community offering.

Payments for shares of common stock made through withdrawals from deposit accounts at Pioneer Federal will not result in the receipt of new funds for investment but will reduce Pioneer Federal's deposits. The net proceeds may vary because total offering expenses may be more or less than our estimates. For example, our expenses would increase if there were a syndicated community offering to sell shares of common stock not purchased in the subscription offering and any community offering.

PSB Financial intends to loan funds to the ESOP to purchase shares of common stock in the stock offering. It may also use the proceeds it retains from the stock offering:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • to invest in securities consistent with our investment policy;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • to repurchase shares of its common stock, in compliance with applicable regulatory requirements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • to pay cash dividends to stockholders, if declared by our Board of Directors; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • for other general corporate purposes.

Except for the loan to the ESOP, PSB Financial has not quantified its plans for use of the net proceeds of the stock offering for each of the foregoing purposes. Initially, we intend to invest a substantial portion of the net proceeds in investment grade securities, including securities issued by U.S. Government agencies and mortgage-backed securities issued by U.S. Government agencies and U.S. Government-sponsored enterprises.

See "Our Dividend Policy" for a discussion of our expected dividend policy. Under applicable federal regulations, we may not repurchase shares of our common stock during the first year following the completion of the stock offering and conversion, except when extraordinary circumstances exist and with prior regulatory approval, or except to fund management recognition plans (which would require notification to the FDIC) or tax-qualified employee stock benefit plans.

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Pioneer State Bank will receive a capital contribution from PSB Financial equal to at least 50% of the net offering proceeds. Assuming a capital contribution of 50%, we anticipate that PSB Financial will contribute to Pioneer Federal $4.1 million, $5.0 million, $5.9 million and $6.9 million of the net offering proceeds at the minimum, midpoint, maximum, and adjusted maximum of the offering range, respectively.

Pioneer State Bank may use the net proceeds it receives from the stock offering:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • to fund new loans;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • to invest in securities consistent with its investment policy;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • to enhance existing products and services;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • to expand its banking franchise by establishing or acquiring new branches as opportunities arise, although we do not currently have any understandings or agreements to establish or acquire new branches; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • for other general corporate purposes.

Pioneer State Bank has not quantified its plans for use of the net proceeds of the stock offering for each of the foregoing purposes. Initially, a substantial portion of the net proceeds will be invested in securities issued by U.S. Government agencies and mortgage-backed securities issued by U.S. Government agencies and U.S. Government-sponsored enterprises. The use of the proceeds outlined above may change based on many factors, including, but not limited to, changes in interest rates, equity markets, laws and regulations affecting the financial services industry, our relative position in the financial services industry, the attractiveness of opportunities to expand our operations through establishing or acquiring new branches, our ability to receive regulatory approval for any such expansion activities, and overall market conditions.

We expect our return on equity to decrease upon the completion of the stock offering and conversion until we are able to reinvest effectively the additional capital raised in the stock offering. See "Risk Factors — Risks Related to the Stock Offering — Our failure to effectively deploy the net proceeds may have an adverse effect on our financial performance."

#### OUR DIVIDEND POLICY
Following completion of the stock offering and conversion, our Board of Directors will have the authority to declare dividends on our shares of common stock, subject to statutory and regulatory requirements. However, no decision has been made with respect to the payment of dividends. In determining whether to pay a cash dividend and the amount of such cash dividend, the Board of Directors is expected to take into account a number of factors, including capital requirements, our financial condition and results of operations, other uses of funds for the long-term value of stockholders, tax considerations, statutory and regulatory limitations and general economic conditions. We cannot assure you that any dividends will be paid or that, if paid, will not be reduced or eliminated in the future. Special cash dividends, stock dividends or returns of capital, to the extent permitted by regulations and policies of the Federal Reserve Board, MDOB and FDIC, may be paid in addition to, or in lieu of, regular cash dividends.

PSB Financial expects to file a consolidated federal income tax return with Pioneer Federal. Accordingly, it is anticipated that any cash distributions that we make to our stockholders would be treated as cash dividends and not as a non-taxable return of capital for federal and state income tax purposes. Additionally, in accordance with applicable federal regulations, during the three-year period following the stock offering, we will not take any action to declare an extraordinary dividend to stockholders that would be treated by recipients as a tax-free return of capital for federal income tax purposes.

PSB Financial's articles of incorporation authorized the issuance of preferred stock. No shares of preferred stock will be issued in the stock offering and conversion. If we issue preferred stock in the future, which the Board of Directors is authorized to do without further action by our stockholders, the holders of preferred stock may have a priority over the holders of our shares of common stock with respect to the payment of dividends. For a further discussion concerning the payment of dividends on our shares of common stock, see "Description of Capital Stock of PSB Financial — Common Stock." Any dividends we may declare and pay will depend, in part, upon receipt of dividends from Pioneer State Bank, because

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dividends from Pioneer State Bank will be our primary source of income. Applicable federal regulations impose limitations on dividends and other capital distributions by savings institutions like Pioneer State Bank. See "Regulation and Supervision — Federal Banking Regulation — Capital Distributions."

Any payment of dividends by Pioneer State Bank to PSB Financial that would be deemed to be drawn out of Pioneer State Bank's bad debt reserves, if any, would require Pioneer State Bank to pay taxes at the then-current tax rate on the amount of earnings deemed to be removed from the reserves for such distribution. Pioneer State Bank does not intend to make any distribution to us that would create such a federal tax liability. See "Taxation."

#### MARKET FOR THE COMMON STOCK
PSB Financial is a newly formed company and has never issued capital stock. All of the issued and outstanding stock of Pioneer State Bank will be owned by PSB Financial. PSB Financial expects that its common stock will be quoted on the OTCQB Market operated by OTC Markets Group upon the completion of the stock offering and conversion. KBW intends to make a market in PSB Financial's common stock, but is not obligated to do so.

The development of an active trading market depends on the existence of willing buyers and sellers, the presence of which is not within our control, or that of any market maker. The number of active buyers and sellers of the shares of common stock at any particular time may be limited. Furthermore, we cannot assure you that, if you purchase shares of common stock, you will be able to sell them at or above $10.00 per share purchase price. Purchasers of common stock in this stock offering should have long-term investment intent and should recognize that we anticipate that our "public float," which is the total number of our outstanding shares of common stock less the number of shares held by our ESOP and by our directors and executive officer, and which is used as a measure of shares available for trading, will be relatively low comparable to the holding companies of other community banks of comparable size to Pioneer State Bank. This may make it difficult to sell the common stock after the stock offering and may have an adverse impact on the price at which the common stock can be sold.

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#### HISTORICAL AND PRO FORMA REGULATORY CAPITAL COMPLIANCE
As of June 30, 2025, Pioneer Federal exceeded all of the applicable regulatory capital requirements and was considered "well capitalized." At June 30, 2025, Pioneer Federal had opted in, and was in compliance with, the community bank leverage ratio framework. The following table sets forth the historical equity capital and regulatory capital of Pioneer Federal at June 30, 2025, and its pro forma equity capital and regulatory capital after giving effect to the sale of shares of common stock at $10.00 per share. The table assumes Pioneer State Bank receives from PSB Financial $4.1 million, $5.0 million, $5.9 million and $6.9 million at the minimum, midpoint, maximum, and adjusted maximum of the offering range, respectively. See "How We Intend to Use the Proceeds from the Stock Offering."

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| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | | | **Pioneer Federal Pro Forma at June 30, 2025 Based Upon the Sale in the Stock Offering of:<sup>(1)</sup>**  | **Pioneer Federal Pro Forma at June 30, 2025 Based Upon the Sale in the Stock Offering of:<sup>(1)</sup>**  | **Pioneer Federal Pro Forma at June 30, 2025 Based Upon the Sale in the Stock Offering of:<sup>(1)</sup>**  | **Pioneer Federal Pro Forma at June 30, 2025 Based Upon the Sale in the Stock Offering of:<sup>(1)</sup>**  | **Pioneer Federal Pro Forma at June 30, 2025 Based Upon the Sale in the Stock Offering of:<sup>(1)</sup>**  | **Pioneer Federal Pro Forma at June 30, 2025 Based Upon the Sale in the Stock Offering of:<sup>(1)</sup>**  | **Pioneer Federal Pro Forma at June 30, 2025 Based Upon the Sale in the Stock Offering of:<sup>(1)</sup>**  | **Pioneer Federal Pro Forma at June 30, 2025 Based Upon the Sale in the Stock Offering of:<sup>(1)</sup>**  |
| | **Pioneer Federal at <br> June 30, 2025**  | **Pioneer Federal at <br> June 30, 2025**  | **Minimum**  | **Minimum**  | **Midpoint**  | **Midpoint**  | **Maximum**  | **Maximum**  | **Adj. Maximum**  | **Adj. Maximum**  |
| | **Pioneer Federal at <br> June 30, 2025**  | **Pioneer Federal at <br> June 30, 2025**  | **1,020,000 Shares**  | **1,020,000 Shares**  | **1,200,000 Shares**  | **1,200,000 Shares**  | **1,380,000 Shares**  | **1,380,000 Shares**  | **1,587,000 Shares<sup>(2)</sup>**  | **1,587,000 Shares<sup>(2)</sup>**  |
| | **Amount**  | **Percent of <br> Assets**  | **Amount**  | **Percent of <br> Assets**  | **Amount**  | **Percent of <br> Assets**  | **Amount**  | **Percent of <br> Assets**  | **Amount**  | **Percent of <br> Assets**  |
|  | **(Dollars in thousands)**  | **(Dollars in thousands)**  | **(Dollars in thousands)**  | **(Dollars in thousands)**  | **(Dollars in thousands)**  | **(Dollars in thousands)**  | **(Dollars in thousands)**  | **(Dollars in thousands)**  | **(Dollars in thousands)**  | **(Dollars in thousands)**  |
| Total equity capital  | $18428 | 16.27% | $21304 | 18.22% | $21988 | 18.67% | $22672 | 19.12% | $23458 | 19.62% |
| Tier 1 leverage capital<sup>(3)</sup>  | $19003 | 17.00% | $21879 | 18.95% | $22563 | 19.40% | $23247 | 19.85% | $24033 | 20.35% |
| Tier 1 leverage capital requirement  | 5589 | 5.00% | 5773 | 5.00% | 5815 | 5.00% | 5856 | 5.00% | 5904 | 5.00% |
| Excess  | $13414 | 12.00% | $16106 | 13.95% | $16748 | 14.40% | $17391 | 14.85% | $18129 | 15.35% |
| Reconciliation of capital infused into Pioneer Federal: |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp; Proceeds to Pioneer State Bank  |  |  | $4100 |  | $5000 |  | $5900 |  | $6935 |  |
| &nbsp;&nbsp; Less: Common stock acquired by ESOP  |  |  | (816) |  | (960) |  | (1104) |  | (1270) |  |
| &nbsp;&nbsp; Less: Common stock acquired by stock-based incentive <br> plan  |  |  | (408) |  | (480) |  | (552) |  | (635) |  |
| &nbsp;&nbsp; Pro forma increase  |  |  | $2876 |  | $3560 |  | $4244 |  | $5030 |  |

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(1) Pro forma capital levels assume that the ESOP purchases 8% of the shares of common stock sold in the stock offering with funds to be lent by PSB Financial and that the stock-based equity plan purchases 4% of the number of shares of common stock sold in the stock offering for restricted stock awards. Pro forma capital calculated under U.S. generally accepted accounting principles ("GAAP") and regulatory capital have been reduced by the amount required to fund these plans. See "Management" for a discussion of the ESOP. The grant of options under the stock-based incentive plan does not require a capital funding adjustment. No effect has been given to the issuance of additional shares of PSB Financial common stock pursuant to the exercise of options under a stock-based benefit plan.

(2) As adjusted to give effect to an increase in the number of shares which could occur due to a 15% increase in the offering range to reflect demand for the shares or changes in market conditions following the commencement of the stock offering.

(3) Tier 1 leverage capital levels are shown as a percentage of total average assets.

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#### CAPITALIZATION
The following table presents the historical capitalization of Pioneer Federal at June 30, 2025 and the pro forma consolidated capitalization of PSB Financial at the same date after giving effect to the stock offering and conversion, based upon the assumptions set forth under the section entitled "Pro Forma Data."

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | | **PSB Financial Pro Forma at June 30, 2025 Based on the Sale in the Stock <br> Offering at $10.00 per Share of:**  | **PSB Financial Pro Forma at June 30, 2025 Based on the Sale in the Stock <br> Offering at $10.00 per Share of:**  | **PSB Financial Pro Forma at June 30, 2025 Based on the Sale in the Stock <br> Offering at $10.00 per Share of:**  | **PSB Financial Pro Forma at June 30, 2025 Based on the Sale in the Stock <br> Offering at $10.00 per Share of:**  |
| | **Pioneer Federal at <br> June 30, 2025**  | **1,020,000 <br> Shares**  | **1,200,000 <br> Shares**  | **1,380,000 <br> Shares**  | **1,587,000 <br> Shares<sup>(1)</sup>**  |
|  | **(Dollars in thousands, except per share amounts)**  | **(Dollars in thousands, except per share amounts)**  | **(Dollars in thousands, except per share amounts)**  | **(Dollars in thousands, except per share amounts)**  | **(Dollars in thousands, except per share amounts)**  |
| Deposits<sup>(2)</sup> | $85842 | $85842 | $85842 | $85842 | $85842 |
| Borrowings  | 8000 | 8000 | 8000 | 8000 | 8000 |
| &nbsp;&nbsp;&nbsp; Total deposits and <br> borrowings  | $93842 | $93842 | $93842 | $93842 | $93842 |
| **Stockholders' equity:** |  |  |  |  |  |
|  Preferred stock, $0.01 par value, 500,000 shares authorized  | $— | $— | $— | $— | $— |
|  Common stock, $0.01 par value, 5,000,000 shares authorized; shares to be issued as <br> shown<sup>(3)</sup>  |  | 10 | 12 | 14 | 16 |
| Additional paid-in capital<sup>(4)</sup>  |  | 8190 | 9988 | 11786 | 13854 |
| Retained earnings<sup>(5)</sup>  | 18733 | 18733 | 18733 | 18733 | 18733 |
|  Accumulated other comprehensive income (loss)  | (305) | (305) | (305) | (305) | (305) |
| **Less:** |  |  |  |  |  |
|  Common stock held by <br> ESOP<sup>(6)</sup>  |  | (816) | (960) | (1104) | (1270) |
|  Common stock to be acquired by <br> stock-based benefit plan<sup>(7)</sup>  |  | (408) | (480) | (552) | (635) |
| Total stockholders' equity  | $18428 | $25404 | $26988 | 28572 | $30393 |
| **Pro Forma Shares Outstanding:** |  |  |  |  |  |
| Shares sold in stock offering  |  | 1020000 | 1200000 | 1380000 | 1587000 |
| Total shares outstanding  |  | 1020000 | 1200000 | 1380000 | 1587000 |
|  Total stockholders' equity as a percentage of total <br> assets<sup>(2)</sup>  | 16.27% | 21.13% | 22.15% | 23.15% | 24.27% |
|  Tangible equity as a percentage of tangible assets<sup>(2)</sup>  | 16.27% | 21.13% | 22.15% | 23.15% | 24.27% |

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(1) As adjusted to give effect to an increase in the number of shares of common stock that could occur due to a 15% increase in the offering range to reflect demand for shares or changes in market conditions following the commencement of the subscription and community offerings.

(2) Does not reflect withdrawals from deposit accounts for the purchase of shares of common stock in the stock offering and conversion. These withdrawals would reduce pro forma deposits and assets by the amount of the withdrawals.

(3) No effect has been given to the issuance of additional shares of PSB Financial common stock pursuant to the exercise of options under a stock-based benefit plan. If the plan is implemented within the first year after the closing of the stock offering and conversion, an amount up to 10% of the number of shares of PSB Financial common stock sold in the stock offering will be reserved for issuance upon the

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exercise of options under the plan. The grant of options under the stock-based benefit plan does not require a capital funding adjustment.

(4) On a pro forma basis, common stock and additional paid-in capital have been revised to reflect the number of shares of PSB Financial common stock to be outstanding.

(5) The retained earnings of Pioneer State Bank will be substantially restricted after the stock offering and conversion. See "The Stock Offering and Conversion — Liquidation Rights" and "Regulation and Supervision."

(6) Assumes that 8% of the shares sold in the stock offering will be acquired by the ESOP and will be financed by a loan from PSB Financial. The loan will be repaid principally from Pioneer State Bank's contributions to the ESOP. Since PSB Financial will lend the funds to the ESOP, this debt will be eliminated through consolidation and no liability will be reflected on PSB Financial's financial statements. Accordingly, the amount of shares of common stock acquired by the ESOP is shown in this table as a reduction of total stockholders' equity.

(7) If approved by PSB Financial's stockholders, a stock-based benefit plan may purchase an aggregate number of shares of common stock equal to 4% of the number of shares of common stock sold in the stock offering (or possibly a greater percentage it the plan is implemented more than one year after completion of the stock offering and conversion, or a lesser percentage if Pioneer State Bank were to have a Tier 1 leverage ratio of less than 10.0% within one year of the completion of the stock offering and conversion). Stockholder approval of the stock-based benefit plan, and purchases by the plan, may not occur earlier than six months after the completion of the stock offering and conversion. The shares may be acquired directly from PSB Financial or through open market purchases. The funds to be used by the stock-based benefit plans to purchase the shares will be provided by PSB Financial. Assumes a number of shares of common stock equal to 4% of the number of shares of common stock sold in the stock offering are available for grant under a stock-based benefit plan will be purchased in the open market by PSB Financial. The dollar amount of common stock to be purchased is based on the $10.00 per share offering price in the stock offering and represents unearned compensation. This amount does not reflect possible increases or decreases in the value of common stock relative to the uttering price. As PSB Financial accrues compensation expense to reflect the vesting of shares pursuant to the stock-based benefit plan, the credit to equity will be offset by a charge to noninterest expense.

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#### PRO FORMA DATA
The following tables summarize historical data of Pioneer Federal and pro forma data of PSB Financial at and for the six months ended June 30, 2025 and at and for the year ended December 31, 2024. This information is based on assumptions set forth below and in the footnotes to the table, and should not be used as a basis for projections of the market value of the shares of PSB Financial common stock following the stock offering and conversion.

The net proceeds in the tables are based upon the following assumptions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • all shares of common stock will be sold in the subscription offering and any community offering;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • our ESOP will purchase 8% of the shares of common stock sold in the stock offering, funded by a loan from PSB Financial. The loan will be repaid in substantially equal payments of principal and interest (at the applicable federal rate then currently in effect) over a 25-year period; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • estimated expenses of the stock offering, including fees and expenses to be paid to KBW, are $2.0 million.

Pro forma earnings on net proceeds for the six months ended June 30, 2025 and the year ended December 31, 2024 have been calculated assuming the stock has been sold at the beginning of the period and the net proceeds have been invested at a yield of 3.79% and 4.38%, which is the yield on the five-year U.S. Treasury Note rate as of June 30, 2025 and December 31, 2024, respectively. In light of current market interest rates, we consider this rate to reflect the pro forma reinvestment rate more accurately than the arithmetic average of the weighted average yield earned on our interest-earning assets and the weighted average rate paid on our deposits, which is the reinvestment rate generally required by federal regulations. The pro forma after-tax yield on the net offering proceeds is assumed to be 2.74% and 3.16% as of June 30, 2025 and December 31, 2024, respectively, based on an effective tax rate of 27.75%.

We calculated historical and pro forma per share amounts by dividing historical and pro forma amounts of consolidated net income and stockholders' equity by the indicated number of shares of common stock. We adjusted the earnings figures to give effect to the shares of common stock purchased by the ESOP. We computed per share amounts for each period as if the shares of common stock were outstanding at the beginning of the period, but we did not adjust per share historical or pro forma stockholders' equity to reflect the earnings on the estimated net proceeds.

The pro forma tables give effect to the implementation of a stock-based benefit plan. Subject to the receipt of stockholder approval, we have assumed that the stock-based benefit plan will acquire for restricted stock awards a number of shares of common stock equal to 4% of the number of shares of common stock sold in the stock offering at the same price for which they were sold in the stock offering. We assume that shares of common stock are granted under the plan in awards that vest over a five-year period.

We have also assumed that the stock-based benefit plan will grant options to acquire shares of common stock equal to 10% of our outstanding shares of common stock. In preparing the table below, we assumed that stockholder approval was obtained, that the exercise price of the stock options and the market price of the stock at the date of grant were $10.00 per share and that the stock options have a term of ten years and vested over five years. We applied the Black-Scholes option pricing model to estimate a grant-date fair value of $4.90 for each option. In addition to the terms of the options described above, the Black-Scholes option pricing model assumed an estimated volatility rate of 28.65% for the shares of common stock, a dividend yield of zero percent, an expected option life of 10 years, and a risk-free interest rate of 4.24%. Finally, we assumed that 25% of the stock options were non-qualified options granted to directors, resulting in a tax benefit (at an assumed tax rate of 27.5%) for a deduction equal to the grant date fair value of the options.

We may reserve shares for the exercise of stock options and the grant of stock awards under a stock-based benefit plan in excess of 10% and 4%, respectively, of our total outstanding shares if the stock-based benefit plan is adopted more than one year following the stock offering and conversion. In addition, we may grant options and award shares that vest more rapidly than over a five-year period if the stock-based benefit plan is adopted more than one year following the stock offering and conversion.

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As discussed under "How We Intend to Use the Proceeds from the Stock Offering," PSB Financial intends to contribute to Pioneer Federal $4.1 million, $5.0 million, $5.9 million and $6.9 million of the net offering proceeds at the minimum, midpoint, maximum, and adjusted maximum of the offering range, respectively. PSB Financial will retain the remainder of the net offering proceeds and use a portion to make a loan to the ESOP and retain the remainder for future use.

The pro forma table does not give effect to: (i) withdrawals from deposit accounts at Pioneer Federal to purchase shares of common stock in the stock offering: (ii) Pioneer Federal's results of operations after the stock offering and conversion; or (iii) changes in the market price of the shares of common stock after the stock offering and conversion.

The following pro forma information may not represent the financial effects of the stock offering and conversion at the date on which the stock offering and conversion actually occurs and you should not use the table to indicate future results of operations. Pro forma stockholders' equity represents the difference between the stated amount of our assets and liabilities, computed according to GAAP. We did not increase or decrease stockholders' equity to reflect the difference between the carrying value of loans and other assets and their market value. Pro forma stockholders' equity is not intended to represent the fair market value of the shares of common stock and may be different than the amounts that would be available for distribution to stockholders if we liquidated. Pro forma stockholders' equity does not give effect to the impact of intangible assets, bad debt reserve or the liquidation account we will establish in connection with the stock offering and conversion in the unlikely event we are liquidated.

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| | | | | |
|:---|:---|:---|:---|:---|
| | **At or for the Six Months Ended June 30, 2025 Based on the Sale at <br> $10.00 Per Share of:**  | **At or for the Six Months Ended June 30, 2025 Based on the Sale at <br> $10.00 Per Share of:**  | **At or for the Six Months Ended June 30, 2025 Based on the Sale at <br> $10.00 Per Share of:**  | **At or for the Six Months Ended June 30, 2025 Based on the Sale at <br> $10.00 Per Share of:**  |
| | **Minimum <br> 1,020,000 <br> Shares**  | **Midpoint <br> 1,200,000 <br> Shares**  | **Maximum <br> 1,380,000 <br> Shares**  | **Adjusted <br> Maximum <br>1,587,000 Shares<sup>(1)</sup>** |
|  | **(Dollars in thousands, except per share amounts)**  | **(Dollars in thousands, except per share amounts)**  | **(Dollars in thousands, except per share amounts)**  | **(Dollars in thousands, except per share amounts)**  |
| Gross offering proceeds  | $10200 | $12000 | $13800 | $15870 |
| Less: Estimated expenses  | (2000) | (2000) | (2000) | (2000) |
| &nbsp;&nbsp;&nbsp; Estimated net proceeds  | 8200 | 10000 | 11800 | 13870 |
| &nbsp;&nbsp;&nbsp; Less: Common stock acquired by ESOP<sup>(2)</sup>  | (816) | (960) | (1104) | (1270) |
| &nbsp;&nbsp;&nbsp; Less: Common stock acquired by stock-based benefit plans<sup>(3)</sup>  | (408) | (480) | (552) | (635) |
| &nbsp;&nbsp;&nbsp; Estimated net proceeds  | $6976 | $8560 | $10144 | $11965 |
| **<u>For the Six Months Ended June 30, 2025</u>** |  |  |  |  |
| Consolidated net income: |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Historical  | $126 | $126 | $126 | $126 |
| Pro forma adjustments: |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Income on adjusted net proceeds  | 96 | 117 | 139 | 164 |
| &nbsp;&nbsp;&nbsp; ESOP<sup>(2)</sup>  | (12) | (14) | (16) | (18) |
| &nbsp;&nbsp;&nbsp; Stock awards<sup>(4)</sup>  | (29) | (35) | (40) | (46) |
| &nbsp;&nbsp;&nbsp; Stock options<sup>(4)</sup>  | (47) | (55) | (63) | (72) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Pro forma net income  | $134 | $139 | $146 | $154 |
| Income per share: |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Historical  | $0.13 | $0.11 | $0.10 | $0.09 |
| Pro forma adjustments: |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Income on adjusted net proceeds  | 0.10 | 0.11 | 0.11 | 0.11 |
| &nbsp;&nbsp;&nbsp; ESOP<sup>(2)</sup>  | (0.01) | (0.01) | (0.01) | (0.01) |
| &nbsp;&nbsp;&nbsp; Stock awards<sup>(3)</sup>  | (0.03) | (0.03) | (0.03) | (0.03) |
| &nbsp;&nbsp;&nbsp; Stock options<sup>(4)</sup>  | (0.05) | (0.05) | (0.05) | (0.05) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Pro forma earnings per share  | $0.14 | $0.13 | $0.12 | $0.11 |

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| | | | | |
|:---|:---|:---|:---|:---|
| | **At or for the Six Months Ended June 30, 2025 Based on the Sale at <br> $10.00 Per Share of:**  | **At or for the Six Months Ended June 30, 2025 Based on the Sale at <br> $10.00 Per Share of:**  | **At or for the Six Months Ended June 30, 2025 Based on the Sale at <br> $10.00 Per Share of:**  | **At or for the Six Months Ended June 30, 2025 Based on the Sale at <br> $10.00 Per Share of:**  |
| | **Minimum <br> 1,020,000 <br> Shares**  | **Midpoint <br> 1,200,000 <br> Shares**  | **Maximum <br> 1,380,000 <br> Shares**  | **Adjusted <br> Maximum <br> 1,587,000 Shares<sup>(1)</sup>**  |
|  | **(Dollars in thousands, except per share amounts)**  | **(Dollars in thousands, except per share amounts)**  | **(Dollars in thousands, except per share amounts)**  | **(Dollars in thousands, except per share amounts)**  |
|  Offering price to pro forma net earnings per share **(Offering Price to annualized pro forma EPS)**  | 35.71x | 38.46x | 41.67x | 45.45x |
|  Number of shares used in earnings per share calculations  | 940032 | 1105920 | 1271808 | 1462579 |
| **<u>At June 30, 2025</u>** |  |  |  |  |
| Stockholders' equity: |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Historical  | $18428 | $18428 | $18428 | $18428 |
| &nbsp;&nbsp;&nbsp; Estimated net proceeds  | 8200 | 10000 | 11800 | 13870 |
| &nbsp;&nbsp;&nbsp; Less: Common stock acquired by ESOP<sup>(2)</sup>  | (816) | (960) | (1104) | (1270) |
| &nbsp;&nbsp;&nbsp; Less: Common stock acquired by stock-based benefit plans<sup>(3)</sup>  | (408) | (480) | (552) | (635) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Pro forma stockholders' equity<sup>(5)</sup>  | $25404 | $26988 | $28572 | $30393 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Pro forma tangible stockholders' equity<sup>(5)</sup>  | $25404 | $26988 | $28572 | $30393 |
| Stockholders' equity per share: |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Historical  | $18.07 | $15.36 | $13.35 | $11.61 |
| &nbsp;&nbsp;&nbsp; Estimated net proceeds  | 8.04 | 8.33 | 8.55 | 8.74 |
| &nbsp;&nbsp;&nbsp; Less: Common stock acquired by ESOP<sup>(2)</sup>  | (0.80) | (0.80) | (0.80) | (0.80) |
| &nbsp;&nbsp;&nbsp; Less: Common stock acquired by stock-based benefit plans<sup>(3)</sup>  | (0.40) | (0.40) | (0.40) | (0.40) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Pro forma stockholders' equity per share<sup>(5)</sup>  | $24.91 | $22.49 | $20.70 | $19.15 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Pro forma tangible stockholders' equity per share<sup>(5)</sup>  | $24.91 | $22.49 | $20.70 | $19.15 |
| &nbsp;&nbsp;&nbsp; Offering price as percentage of pro forma stockholders' equity per Share **(Pro Forma price to book value)**  | 40.14% | 44.46% | 48.31% | 52.22% |
| &nbsp;&nbsp;&nbsp; Offering price as percentage of pro torma tangible stockholders' equity per share **(Pro forma price to tangible book value)**  | 40.14% | 44.46% | 48.31% | 52.22% |
| &nbsp;&nbsp;&nbsp; Number of shares outstanding for pro forma book value per share Calculations  | 1020000 | 1200000 | 1380000 | 1587000 |

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| | | | | |
|:---|:---|:---|:---|:---|
| | **At or for the Year Ended December 31, 2024 Based on the Sale at $10.00 Per <br> Share of:**  | **At or for the Year Ended December 31, 2024 Based on the Sale at $10.00 Per <br> Share of:**  | **At or for the Year Ended December 31, 2024 Based on the Sale at $10.00 Per <br> Share of:**  | **At or for the Year Ended December 31, 2024 Based on the Sale at $10.00 Per <br> Share of:**  |
| | **Minimum <br> 1,020,000 Shares**  | **Midpoint <br> 1,200,000 Shares**  | **Maximum <br> 1,380,000 Shares**  | **Adjusted Maximum <br> 1,587,000 Shares<sup>(1)</sup>**  |
|  | **(Dollars in thousands, except per share amounts)**  | **(Dollars in thousands, except per share amounts)**  | **(Dollars in thousands, except per share amounts)**  | **(Dollars in thousands, except per share amounts)**  |
| Gross offering proceeds  | $10200 | $12000 | $13800 | $15870 |
| Less: Estimated expenses  | (2000) | (2000) | (2000) | (2000) |
| &nbsp;&nbsp;&nbsp; Estimated net proceeds  | 8200 | 10000 | 11800 | 13870 |
| &nbsp;&nbsp;&nbsp; Less: Common stock acquired by ESOP<sup>(2)</sup>  | (816) | (960) | (1104) | (1270) |
| &nbsp;&nbsp;&nbsp; Less: Common stock acquired by stock-based benefit plans<sup>(3)</sup>  | (408) | (480) | (552) | (635) |

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| | | | | |
|:---|:---|:---|:---|:---|
| | **At or for the Year Ended December 31, 2024 Based on the Sale at $10.00 Per <br> Share of:**  | **At or for the Year Ended December 31, 2024 Based on the Sale at $10.00 Per <br> Share of:**  | **At or for the Year Ended December 31, 2024 Based on the Sale at $10.00 Per <br> Share of:**  | **At or for the Year Ended December 31, 2024 Based on the Sale at $10.00 Per <br> Share of:**  |
| | **Minimum <br> 1,020,000 Shares**  | **Midpoint <br> 1,200,000 Shares**  | **Maximum <br> 1,380,000 Shares**  | **Adjusted Maximum <br> 1,587,000 Shares<sup>(1)</sup>**  |
|  | **(Dollars in thousands, except per share amounts)**  | **(Dollars in thousands, except per share amounts)**  | **(Dollars in thousands, except per share amounts)**  | **(Dollars in thousands, except per share amounts)**  |
| &nbsp;&nbsp;&nbsp; Estimated net proceeds, as adjusted  | $6976 | $8560 | $10144 | $11965 |
| **<u>For the Year Ended December 31, 2024</u>** |  |  |  |  |
| Consolidated net income: |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Historical  | $224 | $224 | $224 | $224 |
| Pro forma adjustments: |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Income on adjusted net proceeds  | 221 | 271 | 321 | 379 |
| &nbsp;&nbsp;&nbsp; ESOP<sup>(2)</sup>  | (24) | (28) | (32) | (37) |
| &nbsp;&nbsp;&nbsp; Stock awards<sup>(3)</sup>  | (59) | (69) | (80) | (92) |
| &nbsp;&nbsp;&nbsp; Stock options<sup>(4)</sup>  | (93) | (109) | (126) | (145) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Pro forma net income  | $269 | $289 | $307 | $329 |
| Income per share: |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Historical  | $0.24 | $0.20 | $0.18 | $0.15 |
| Pro forma adjustments: |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Income on adjusted net proceeds  | 0.24 | 0.25 | 0.25 | 0.26 |
| &nbsp;&nbsp;&nbsp; ESOP<sup>(2)</sup>  | (0.03) | (0.03) | (0.03) | (0.03) |
| &nbsp;&nbsp;&nbsp; Stock awards<sup>(3)</sup>  | (0.06) | (0.06) | (0.06) | (0.06) |
| &nbsp;&nbsp;&nbsp; Stock options<sup>(4)</sup>  | (0.10) | (0.10) | (0.10) | (0.10) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Pro forma earnings per share  | $0.29 | $0.26 | $0.24 | $0.22 |
|  Offering price to pro forma net earnings per share  | 34.48x | 38.46x | 41.67x | 45.45x |
|  Number of shares used in earnings per share calculations  | 941664 | 1107840 | 1274016 | 1465118 |
| **<u>At December 31, 2024</u>** |  |  |  |  |
| Stockholders' equity: |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Historical  | $18154 | $18154 | $18154 | $18154 |
| &nbsp;&nbsp;&nbsp; Estimated net proceeds  | 8200 | 10000 | 11800 | 13870 |
| &nbsp;&nbsp;&nbsp; Less: Common stock acquired by ESOP<sup>(2)</sup>  | (816) | (960) | (1104) | (1270) |
| &nbsp;&nbsp;&nbsp; Less: Common stock acquired by stock-based benefit plans<sup>(3)</sup>  | (408) | (480) | (552) | (635) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Pro forma stockholders' equity<sup>(5)</sup>  | $25130 | $26714 | $28298 | $30119 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Pro forma tangible stockholders' equity<sup>(5)</sup>  | $25130 | $26714 | $28298 | $30119 |
| Stockholders' equity per share: |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Historical  | $17.80 | $15.13 | $13.16 | $11.44 |
| &nbsp;&nbsp;&nbsp; Estimated net proceeds  | 8.04 | 8.33 | 8.55 | 8.74 |
| &nbsp;&nbsp;&nbsp; Less: Common stock acquired by ESOP<sup>(2)</sup>  | (0.80) | (0.80) | (0.80) | (0.80) |
| &nbsp;&nbsp;&nbsp; Less: Common stock acquired by stock-based benefit plans<sup>(3)</sup>  | (0.40) | (0.40) | (0.40) | (0.40) |

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| | | | | |
|:---|:---|:---|:---|:---|
| | **At or for the Year Ended December 31, 2024 Based on the Sale at $10.00 Per <br> Share of:**  | **At or for the Year Ended December 31, 2024 Based on the Sale at $10.00 Per <br> Share of:**  | **At or for the Year Ended December 31, 2024 Based on the Sale at $10.00 Per <br> Share of:**  | **At or for the Year Ended December 31, 2024 Based on the Sale at $10.00 Per <br> Share of:**  |
| | **Minimum <br> 1,020,000 Shares**  | **Midpoint <br> 1,200,000 Shares**  | **Maximum <br> 1,380,000 Shares**  | **Adjusted Maximum <br> 1,587,000 Shares<sup>(1)</sup>**  |
|  | **(Dollars in thousands, except per share amounts)**  | **(Dollars in thousands, except per share amounts)**  | **(Dollars in thousands, except per share amounts)**  | **(Dollars in thousands, except per share amounts)**  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Pro forma stockholders' equity per share<sup>(5)</sup>  | $24.64 | $22.26 | $20.51 | $18.98 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Pro forma tangible stockholders' equity per share<sup>(5)</sup>  | $24.64 | $22.26 | $20.51 | $18.98 |
| &nbsp;&nbsp;&nbsp; Offering price as percentage of pro forma stockholders' equity per Share **(Pro forma price to book value)**  | 40.58% | 44.92% | 48.76% | 52.69% |
| &nbsp;&nbsp;&nbsp; Offering price as percentage of pro <br> torma tangible stockholders' equity <br> per share **(Pro forma price to** <br> **tangible book value)**  | 40.58% | 44.92% | 48.76% | 52.69% |
| &nbsp;&nbsp;&nbsp; Number of shares outstanding for pro forma book value per share Calculations  | 1020000 | 1200000 | 1380000 | 1587000 |

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(1) As adjusted to give effect to an increase in the number of shares which could occur due to a 15% increase in the offering range to reflect demand for the shares or changes in market conditions following the commencement of the stock offering.

(2) Assumes that the ESOP will purchase 8% of the shares of common stock sold in the stock offering. For purposes of this table, the funds used to acquire these shares are assumed to have been borrowed by the ESOP from PSB Financial. Pioneer State Bank intends to make annual contributions to the ESOP in an amount at least equal to the required principal and interest payments on the debt. Pioneer State Bank's total annual payments on the ESOP debt are based upon 25 equal annual installments of principal and interest. Financial Accounting Standards Board Accounting Standards Codification 718-40. "Employers' Accounting for Employee Stock Ownership Plans" ("ASC 718-40") requires that an employer record compensation expense in an amount equal to the fair value of the shares committed to be released to employees. The pro forma adjustments assume that the shares are allocated in equal annual installments based on the number of loan repayment installments assumed to be paid by Pioneer State Bank, the fair value of the common stock remains equal to the subscription price and the ESOP expense reflects an effective tax rate of 27.75%. The unallocated shares are reflected as a reduction of stockholders' equity. No reinvestment is assumed on proceeds contributed to fund the ESOP. The pro forma net income for the six months ended June 30, 2025 assumes that 1,632, 1,920, 2,208 and 2,539 shares were committed to be released during the period at the minimum, midpoint, maximum, and adjusted maximum of the offering range, respectively. The pro forma net income for the year ended December 31, 2024 assumes that 3,264, 3,840, 4,416 and 5,078 shares were committed to be released during the period at the minimum, midpoint, maximum, and adjusted maximum of the offering range, respectively. According to ASC 718-40, only the shares committed to be released during the period were considered outstanding for purposes of income per share calculations.

(3) If approved by PSB Financial's stockholders, a stock-based benefit plan may purchase an aggregate number of shares of common stock equal to 4% of the number of shares sold in the stock offering (or possibly a greater percentage if the plan is implemented more than one year after completion of the stock offering and conversion, or a lesser percentage if Pioneer State Bank were to have a Tier 1 leverage ratio of less than 10.0% within one year of the completion of the stock offering and conversion). Stockholder approval of the stock-based benefit plan, and purchases by the plan, may not occur earlier than six months after the completion of the stock offering and conversion. The shares may be acquired directly from PSB Financial or through open market purchases. The funds to be used by the stock-based benefit plans to purchase the shares will be provided by PSB Financial. The table assumes that

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (i) the stock-based benefit plan acquires the shares through open market purchases at $10.00 per share, (ii) 20% of the amount contributed to the stock-based benefit plan is amortized as an expense during the period, and (iii) the stock-based benefit plan expense reflects an effective tax rate of 27.75%. Assuming stockholder approval of the stock-based benefit plan and that shares of common stock equal to 4% of the number of shares sold in the stock offering are awarded through the use of authorized but unissued shares of common stock, stockholders would have their ownership and voting interests diluted by approximately 3.85%.

(4) If approved by PSB Financial's stockholders, a stock-based benefit plan may grant options to acquire an aggregate number of shares of common stock equal to 10% of the number of shares to be sold in the stock offering (or possibly a greater percentage if the plan is implemented more than one year after completion of the stock offering and conversion). Stockholder approval of the stock-based benefit plan may not occur earlier than six months after the completion of the stock offering and conversion. In calculating the pro forma effect of the stock options to be granted under a stock-based benefit plan, it is assumed that the exercise price of the stock options and the trading price of the common stock at the date of grant were $10.00 per share, the estimated grant-date fair value determined using the Black-Scholes option pricing model was $4.90 for each option, and the aggregate grant-date fair value of the stock options was amortized to expense on a straight-line basis over a five-year vesting period of the options. The actual expense of the stock options to be granted under the stock-based benefit plan will be determined by the grant-date fair value of the options, which will depend on a number of factors, including the valuation assumptions used in the option pricing model ultimately adopted. Under the above assumptions, the adoption of the stock-based benefit plan will result in no additional shares under the treasury stock method for purposes of calculating earnings per share. There can be no assurance that the actual exercise price of the stock options will be equal to the offering price of $10.00 per share. If a portion of the shares to satisfy the exercise of options under the stock-based benefit plans is obtained from the issuance of authorized but unissued shares, our net income per share and stockholders' equity per share would decrease. Assuming stockholder approval of the stock-based benefit plan and that shares of common stock used to fund stock options (equal to 10% of the number of shares sold in the stock offering) are awarded through the use of authorized but unissued shares of common stock, stockholders would have their ownership and voting interests diluted by approximately 9.09%

(5) The retained earnings of Pioneer State Bank will be substantially restricted after the conversion. See "Our Dividend Policy," "The Stock Offering and Conversion — Liquidation Rights" and "Regulation and Supervision." The number of shares used to calculate pro forma stockholders' equity per share is equal to the total number of shares to be outstanding upon completion of the stock offering and conversion.

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#### MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
This discussion and analysis reflects our financial statements and other relevant statistical data and is intended to enhance your understanding of our financial condition and results of operations. The information in this section has been derived from the financial statements, which appear beginning on page F-1 of this prospectus. You should read the information in this section in conjunction with the business and financial information regarding PSB Financial provided in this prospectus.

#### Overview
After the completion of the conversion and stock offering, PSB Financial will conduct its operations primarily through Pioneer State Bank, the stock-bank successor to Pioneer Federal. Pioneer Federal's business consists primarily of accepting deposits from the general public and investing those deposits, together with funds generated from operations, in residential real estate loans and, to a lesser extent, commercial real estate loans, construction and land development loans, commercial loans, home equity loans and lines of credit, and consumer loans. We also invest in securities, which have historically consisted primarily of U.S. government and agency securities, mortgage-backed securities and obligations issued by U.S. government sponsored enterprises, and state and municipal securities. We offer a variety of deposit accounts including checking accounts, savings accounts, money market accounts and certificate of deposit accounts. Pioneer Federal is subject to comprehensive regulation and examination by the FDIC. Pioneer State Bank will in all material respects be the same bank as Pioneer Federal, subject to comprehensive regulation and examination by the FDIC.

Our results of operations depend primarily on our net interest income. Net interest income is the difference between the interest income we earn on our interest-earning assets and the interest we pay on our interest-bearing liabilities. Our results of operations also are affected by our provisions for credit losses, noninterest income and noninterest expense. Noninterest income currently consists primarily of service charges on deposit accounts, other service charges and fees, and income from bank owned life insurance. Noninterest expense currently consists primarily of expenses related to salaries and employee benefits, occupancy and equipment, data processing, contract services, director fees, FDIC deposit insurance premiums, and other expenses.

We invest in bank owned life insurance to provide us with a funding source to offset some costs of our benefit plan obligations. Bank owned life insurance provides us with noninterest income that is nontaxable. Federal regulations generally limit our investment in bank owned life insurance to 25% of our Tier 1 capital plus our allowance for credit losses. At June 30, 2025, our investment in bank owned life insurance was $754,000, which was within this investment limit.

Our results of operations also may be affected significantly by general and local economic and competitive conditions, changes in market interest rates, governmental policies and actions of regulatory authorities.

#### Business Strategy
Our principal objective is to build long-term value for our stockholders and positively impact our communities, customers and employees by operating a strong and trusted community savings association focused on serving our regional market area. Highlights of our current business strategy, which represents the business strategy that we will continue following the conversion as Pioneer State Bank, include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Continuing to focus on originating fixed-rate one- to four-family residential mortgage loans and residential construction/permanent loans for retention in the loan portfolio;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Modestly increasing the capabilities and balances of commercial loans, including real estate and non-real estate secured loans, while seeking to limit the related risks, such as interest rate risk, credit risk and liquidity risk;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Managing credit risk to maintain an acceptably low level of nonperforming assets, representing a continuation of our historical ability to minimize nonperforming assets by employing experienced

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credit professionals, having well-defined policies and procedures, appropriate loan underwriting criteria and active credit monitoring;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Continuing efforts to grow low-cost "core" deposits, which also can be expected to provide additional fee income;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Remaining a community-oriented institution and relying on high quality service to maintain and build our local customer base;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Strengthening our digital-based banking capabilities, including through a new main data processing vendor anticipated in 2026, to remain an attractive option for current and potential customers, recognizing that customers can be expected to seek out banking institutions that have a technology platform that offers sufficient digital banking services; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Seeking to expand operations primarily through organic growth while also considering branching opportunities that may arise in the primary market area, including a potential branch office in western Montana in late 2026 or the first six months of 2027.

We expect these strategies to guide our investment of the net proceeds of the stock offering. We intend to continue to pursue these business strategies after the conversion and stock offering, subject to changes necessitated by future market conditions, regulatory restrictions and other factors.

#### Anticipated Increase in Noninterest Expense
Following the completion of the conversion and stock offering, our noninterest expense is expected to increase because of the increased costs associated with operating as a public company and the increased compensation expenses associated with the purchase of shares of common stock by our employee stock ownership plan and the possible implementation of a stock-based benefit plan, if approved by our stockholders, no earlier than six months after the completion of the conversion and stock offering. See "Summary — Benefits to Management and Potential Dilution to Stockholders Resulting from the Conversion and Stock Offering;" "Risk Factors — Risks Related to the Stock Offering — Our stock-based benefit plans will increase our expenses and reduce our income;" and "Management — Benefits to be Considered Following Completion of the Conversion and Stock Offering."

#### Critical Accounting Policies and Use of Critical Accounting Estimates
The discussion and analysis of the financial condition and results of operations are based on our financial statements, which are prepared in conformity with GAAP. The preparation of these financial statements requires management to make estimates and assumptions affecting the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities, and the reported amounts of income and expenses. We consider the accounting policies discussed below to be critical accounting policies. The estimates and assumptions that we use are based on historical experience and various other factors and are believed to be reasonable under the circumstances. Actual results may differ from these estimates under different assumptions or conditions, resulting in a change that could have a material impact on the carrying value of our assets and liabilities and our results of operations.

The JOBS Act contains provisions that, among other things, reduce certain reporting requirements for qualifying public companies. As an "emerging growth company" we may delay adoption of new or revised accounting pronouncements applicable to public companies until such pronouncements are made applicable to private companies. We intend to take advantage of the benefits of this extended transition period. Accordingly, our financial statements may not be comparable to companies that comply with such new or revised accounting standards.

The following represent our critical accounting policies:

***Allowance for Credit Losses (ACL)***. The allowance for credit losses is the estimated amount considered necessary to cover inherent, but unconfirmed, credit losses in the loan portfolio at the balance sheet date. The allowance is established through the provision for losses on loans which is charged against income, in determining the allowance for credit losses, management makes significant estimates and has identified this policy as one of our most critical accounting policies. Pioneer Federal adopted the Current Expected

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Credit Loss (CECL) accounting standard effective January 1, 2023, using the Weighted Average Remaining Maturity (WARM) method. The WARM method calculates an average annualized historical Net Charge-off (NCO) rate for a specific segment of a loan portfolio over a defined lookback period. The WARM factor represents the estimated remaining life of the loan portfolio segment, adjusted for scheduled amortization and estimated prepayments. Qualitative adjustments (Q factors) are incorporated to account for factors not captured by the historical data, such as current economic conditions and forecasts that might differ from historical trends. The ACL calculation is the average annual NCO rates multiplied by the estimated remaining life of the loan portfolio segment (WARM factor) and then adjusted by the Q factors to arrive at the estimated ACL. The allowance for credit losses as a percentage of loans year-over-year are as follows: December 31, 2023 — $1,141,000, or 1.38% of total loans, December 31, 2024 — $1,208,000, or 1.37% of total loans; June 30, 2025 — $1,099,000, or 1.27% of total loans.

Management performs a quarterly evaluation of the allowance for credit losses. Consideration is given to a variety of factors in establishing this estimate including, but not limited to, current economic conditions, delinquency statistics, geographic and industry concentrations, the adequacy of the underlying collateral, the financial strength of the borrower, results of internal loan reviews and other relevant factors. This evaluation is inherently subjective as it requires material estimates that may be susceptible to significant change.

The analysis has two components, specific and general allowances. The specific allowance is for unconfirmed losses related to loans that require individual evaluation with expected credit losses being measured by determining the present value of expected future cash flows or, for collateral-dependent loans, the fair value of the collateral adjusted for market conditions and selling expenses. If the fair value of the loan is less than the loan's carrying value, a charge is recorded for the difference. The general allowance, which is for loans reviewed collectively, is determined by segregating the remaining loans by type of loan, risk weighting (if applicable) and payment history. We also analyze historical loss experience, delinquency trends, general economic conditions and geographic and industry concentrations. This analysis establishes historical loss percentages and qualitative factors that are applied to the loan groups to determine the amount of the allowance for credit losses necessary for loans that are reviewed collectively. The qualitative component is critical in determining the allowance for credit losses as certain trends may indicate the need for changes to the allowance for credit losses based on factors beyond the historical loss history. Not incorporating a qualitative component could misstate the allowance for credit losses. Actual credit losses may be significantly more than the allowances we have established which could result in a material negative effect on our financial results.

***Deferred Tax Assets***. We use the asset and liability method of accounting for income taxes. Under this method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Deferred tax assets are reduced by a valuation allowance when it is more likely than not that some portion of the deferred tax asset will not be realized. We exercise significant judgment in evaluating the amount and timing of recognition of the resulting tax liabilities and assets. These judgments require us to make projections of future taxable income. The judgments and estimates we make in determining our deferred tax assets, which are inherently subjective, are reviewed on a continual basis as regulatory and business factors change. Determining the proper valuation allowance for deferred taxes is critical in properly valuing the deferred tax asset and the related recognition of income tax expense or benefit. Any reduction in estimated future taxable income may require us to record a valuation allowance against our deferred tax assets.

***Fair Value Measurements***. The fair value of a financial instrument is defined as the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. We estimate the fair value of a financial instrument and any related asset impairment using a variety of valuation methods. Where financial instruments are actively traded and have quoted market prices, quoted market prices are used for fair value. When the financial instruments are not actively traded, other observable market inputs, such as quoted prices of securities with similar characteristics. may be used, if available, to determine fair value. When observable market prices do not exist, we estimate fair value. These estimates are subjective in nature and imprecision in estimating these factors can impact the amount

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of gain or loss recorded. For a detailed description of the fair values measured at each level of the fair value hierarchy and the methodology we use, see Note 14 of the notes to the financial statements.

#### Comparison of Financial Condition at June 30, 2025 and December 31, 2024
***Total Assets***. Total assets increased $1.2 million, or 1.0%, since December 31, 2024. The increase was primarily comprised of an increase in cash and cash equivalents of $2.8 million, which was partially offset by decreases in investment securities available for sale of $126,000, investment securities held to maturity of $155,000 and net loans of $1.2 million.

***Cash and Cash Equivalents***. Cash and cash equivalents increased by $2.8 million, or 43.0%, to $9.2 million at June 30, 2025, compared to $6.4 million at December 31, 2024. This increase was primarily due to an increase of deposits, as well as paydowns of loan balances, investment securities available for sale and investment securities held to maturity.

***Investment Securities Available for Sale***. Investment securities available for sale decreased by $126,000, or 1.3%, since December 31, 2024. The decline was a result of maturities and principal payments on mortgage-backed securities and collateralized mortgage obligation securities. No purchases of investment securities available for sale occurred during the six months ended June 30, 2025. The market value adjustment on investment securities available for sale improved $202,000 during the six months ended June 30, 2025 from ($777,000) at December 31, 2024 to ($575,000) at June 30, 2025.

***Investment Securities Held to Maturity***. Investment securities held to maturity decreased by $155,000, or 7.8%, from $2.0 million at December 31, 2024 to $1.9 million at June 30, 2025. This decrease was the result of principal payments on mortgage-backed securities and collateralized mortgage obligation securities and one maturity of an SBA pool.

***Loans, Net***. Net loans decreased $1.2 million, or 1.4%, to $85.1 million at June 30, 2025 compared to $86.3 million at December 31, 2024. Although loan demand was down during the six month period, this was due primarily to the market value of residential real estate which has continued to price out local market borrowers. The decline in net loans was primarily due to normal loan repayments and the payoff of one large residential real estate loan. Residential one- to four-family mortgage loans (including residential construction loans) decreased $1.1 million, or 1.4%, from $79.1 million at December 31, 2024 to $78.0 at June 30, 2025. Commercial real estate loans increased $248,000, or 5.9%, from $4.2 million at December 31, 2024 to $4.4 million at June 30, 2025. Commercial construction and land development loans decreased by $167,000, or 8.8%, from $1.9 million at December 31, 2024 to $1.7 million at June 30, 2025. Commercial loans decreased $411,000, or 26.0%, from $1.6 million at December 31, 2024 to $1.2 million at June 30, 2025. Consumer loans increased $130,000, or 10.8%, from $1.2 million at December 31, 2024 to $1.3 million at June 30, 2025.

During the six months ended June 30, 2025, we originated $5.7 million in loans represented by $3.2 million in one-to four-family residential mortgage loans, $1.3 million in construction and land development loans, $576,000 in commercial loans, and $503,000 in consumer loans.

***Deposits***. Deposits increased to $85.8 million at June 30, 2025, an increase of $752,000, or 0.88%, from $85.1 million at December 31, 2024. Non-maturity deposits increased $3.8 million while time deposits decreased by $3.0 million. The majority of the non-maturity deposit increase was due to a small number of large public funds depositors. At June 30, 2025, the aggregate amount of all uninsured deposits (deposits in excess of FDIC insurance limit of $250,000) was $19.0 million (of which $1.7 million were preferred deposits with debt securities pledged against such deposits) and the aggregate amount of all uninsured time deposits was $6.5 million.

***Borrowings***. There was $8.0 million outstanding at both June 30, 2025 and December 31, 2024 from the Federal Home Loan Bank of Des Moines. The borrowing originated in September 2023 and the purpose was for the construction of a new facility in Deer Lodge as well as funding loan growth. At June 30, 2025, Pioneer Federal had access to up to $37.7 million of advances from the Federal Home Loan Bank of Des Moines compared to $36.5 million at December 31, 2024.

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***Total Equity Capital***. Total equity capital increased $275,000, or 1.5%, to $18.4 million at June 30, 2025, compared to $18.2 million at December 31, 2024. Retained earnings were increased by net income of $126,000 and a decrease in accumulated other comprehensive loss of $149,000 during the six months ended June 30, 2025.

***Average Balances and Yields***. The following table sets forth average balance sheets, average yields and costs, and certain other information for the periods indicated. No tax-equivalent yield adjustments have been made, as the effects are immaterial. Average balances are daily average balances. Non-accrual loans are included in average balances only. Average yields include the effect of deferred fees, discounts, and premiums that are amortized or accreted to interest income or interest expense. Net deferred loan fees/costs are immaterial.

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **For the Six Months Ended June 30,**  | **For the Six Months Ended June 30,**  | **For the Six Months Ended June 30,**  | **For the Six Months Ended June 30,**  | **For the Six Months Ended June 30,**  | **For the Six Months Ended June 30,**  |
| | **2025**  | **2025**  | **2025**  | **2024**  | **2024**  | **2024**  |
| | **Average <br> Outstanding <br> Balance**  | **Interest**  | **Average <br> Yield/Rate<sup>(4)</sup>**  | **Average <br> Outstanding <br> Balance**  | **Interest**  | **Average <br> Yield/Rate<sup>(4)</sup>**  |
|  | **(Dollars in thousands)**  | **(Dollars in thousands)**  | **(Dollars in thousands)**  | **(Dollars in thousands)**  | **(Dollars in thousands)**  | **(Dollars in thousands)**  |
| **Interest-earning assets:** |  |  |  |  |  |  |
| Interest-bearing deposits  | $6775 | $100 | 2.95% | $5179 | $146 | 5.64% |
| Investment securities  | 11984 | 158 | 2.64% | 14657 | 169 | 2.31% |
| Loans  | 86537 | 2322 | 5.37% | 84955 | 2102 | 4.95% |
| Other investments  | 427 | 20 | 9.37% | 428 | 19 | 8.88% |
| &nbsp;&nbsp;&nbsp; Total interest-earning assets  | 105723 | 2600 | 4.92% | 105219 | 2436 | 4.63% |
| Noninterest-earning assets  | 7222 |  |  | 7740 |  |  |
| Allowance for credit losses  | (1204) |  |  | (1141) |  |  |
| &nbsp;&nbsp;&nbsp; Total assets  | $111741 |  |  | $111818 |  |  |
| **Interest-bearing liabilities:** |  |  |  |  |  |  |
| Interest-bearing demand deposits  | $13054 | 13 | 0.20% | $13939 | 14 | 0.20% |
| Savings deposits  | 34927 | 192 | 1.10% | 33263 | 183 | 1.10% |
| Certificates of deposit  | 29794 | 489 | 3.28% | 31148 | 493 | 3.17% |
| &nbsp;&nbsp;&nbsp; Total interest-bearing deposits  | 77775 | 694 | 1.78% | 78350 | 690 | 1.76% |
| Federal Home Loan Bank advances  | 8000 | 173 | 4.33% | 8000 | 174 | 4.35% |
| &nbsp;&nbsp;&nbsp; Total interest-bearing liabilities  | 85775 | 867 | 2.02% | 86350 | 864 | 2.00% |
| Noninterest-bearing demand deposits  | 6706 |  |  | 6483 |  |  |
| Other noninterest-bearing liabilities  | 920 |  |  | 1239 |  |  |
| &nbsp;&nbsp;&nbsp; Total liabilities  | 93401 |  |  | 94072 |  |  |
| Total equity capital  | 18340 |  |  | 17746 |  |  |
| &nbsp;&nbsp;&nbsp; Total liabilities and equity capital  | $111741 |  |  | $111818 |  |  |
| Net interest income  |  | $1733 |  |  | $1572 |  |
| Net interest rate spread<sup>(1)</sup>  |  |  | 2.90% |  |  | 2.63% |
| Net interest-earning assets<sup>(2)</sup>  | $19948 |  |  | $18869 |  |  |
| Net interest margin<sup>(3)</sup>  |  |  | 3.28% |  |  | 2.99% |
|  Average interest-earning assets to interest-bearing liabilities  | 123.26% |  |  | 121.85% |  |  |

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(1) Net interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average rate of interest-bearing liabilities.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

(2) Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities.

(3) Net interest margin represents net interest income divided by average total interest-earning assets.

(4) Annualized.

#### Comparison of Financial Condition at December 31, 2024 and 2023
***Total Assets***. Total assets were $112.1 million at December 31, 2024, a decrease of $619,000, or 0.6%, compared to $112.7 million at December 31, 2023. The variances were primarily due to a decrease in cash and investment securities offset by an increase in net loans, which evened out a flat growth year.

***Cash and Cash Equivalents***. Cash and cash equivalents decreased by $3.8 million, or 36.9% to $6.4 million at December 31, 2024 from $10.2 million at December 31, 2023. The decrease was primarily due to the increase in net loans to $86.3 million at December 31, 2024 up from $81.0 million at December 31, 2023, a $5.3 million increase, or 6.5%.

***Investment Securities Available for Sale***. Investment securities available for sale decreased by $1.8 million, or 15.6%, since December 31, 2023. The decline was a result of maturities and principal payments on mortgage-backed securities and collateralized mortgage obligation securities. No purchases of investment securities available for sale occurred during the year ended December 31, 2024. The market value adjustment on investment securities available for sale improved $137,000 during the year ended December 31, 2024 from ($914,000) at December 31, 2023 to ($777,000) at December 31, 2024.

***Investment Securities Held to Maturity***. Investment securities held to maturity decreased by $830,000, or 29.3%, from $2.8 million at December 31, 2023 to $2.0 million at December 31, 2024. This decrease was the result of principal payments on mortgage-backed securities and collateralized mortgage obligation securities.

***Loans, Net***. Net loans increased by $5.3 million, or 6.5%, to $86.3 million at December 31, 2024 from $81.0 million at December 31, 2023. During the year ended December 31, 2024, loan originations totaled $16.2 million, comprised of $9.0 million of one-to-four family residential mortgage loans, $3.7 million in construction and land development loans, $2.6 million of commercial loans, and $806,000 of consumer loans.

During the year ended December 31, 2024, one-to-four family residential mortgage loans (including residential construction loans) increased $4.1 million, or 5.5%, to $79.1 million from $75.0 million at December 31, 2023. Commercial real estate loans increased $1.3 million, or 43.1%, from $2.9 million at December 31, 2023 to $4.2 million at December 31, 2024. Commercial construction and land development loans increased $1.1 million, or 129.5%, to $1.9 million from $0.8 million at December 31, 2023. Commercial loans decreased by $1.1 million, or 41.2%, to $1.6 million at December 31, 2024 from $2.7 million at December 31, 2023. Consumer loans increased by $173,000, or 16.7% to $1.2 million at December 31, 2024 from $1.0 million at December 31, 2023.

Increases in loan balances reflect our strategy to grow our loan portfolio, continuing to focus primarily on owner-occupied one-to-four family residential real estate loan and commercial loans. Management intends to continue this strategy in future periods.

***Deposits***. Deposits increased by $981,000, or 1.1%, to $85.1 million at December 31, 2024 from $86.1 at December 31, 2023. Non-maturity deposits decreased $3.3 million while time deposits increased by $2.3 million. The majority of the non-maturity deposit decrease was due to non-maturity deposits transferring to time deposits. At December 31, 2024, the aggregate amount of all uninsured deposits (deposits in excess of FDIC insurance limit of $250,000) was $17.6 million (of which $1.4 million were preferred deposits with debt securities pledged against such deposits) and the aggregate amount of all uninsured time deposits was $8.1 million.

Management continued its strategy of pursuing growth in demand accounts and lower cost core deposits with market conditions affecting this strategy in the current year. Management intends to continue its efforts to increase core deposits, with an emphasis on growth in consumer and business demand deposits.

***Total Equity Capital***. Total equity capital increased by $324,000, or 1.8%, to $18.2 million at December 31, 2024 from $17.8 million at December 31, 2023. The increase resulted from accumulated other

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comprehensive loss decreasing $100,000 (as a result of market value adjustment of investment securities available for sale due to market interest rates decreasing during the year) and $224,000 from net income during the year ended December 31, 2024.

***Average Balances and Yields***. The following table sets forth average balance sheets, average yields and costs, and certain other information for the years indicated. No tax-equivalent yield adjustments have been made, as the effects are immaterial. Average balances are calculated using daily average balances. Non-accrual loans are included in average balances only. Average yields include the effect of deferred fees, discounts, and premiums that are amortized or accreted to interest income or interest expense. Net deferred loan fees/costs are immaterial.

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | **For the Year Ended December 31,**  | **For the Year Ended December 31,**  | **For the Year Ended December 31,**  | **For the Year Ended December 31,**  | **For the Year Ended December 31,**  | **For the Year Ended December 31,**  | **For the Year Ended December 31,**  |
| | **2024**  | **2024**  | **2024**  | **2023**  | **2023**  | **2023**  | **2023**  |
| | **Average <br> Outstanding <br> Balance**  | **Interest**  | **Average <br> Yield/Rate**  | **Average <br> Outstanding <br> Balance**  | **Interest**  | **Average <br> Yield/Rate**  | **Average <br> Yield/Rate**  |
|  |  |  | **(Dollars in thousands)**  | **(Dollars in thousands)**  |  |  |  |
| **Interest-earning assets:** |  |  |  |  |  |  |  |
| Interest-bearing deposits  | $4828 | $257 | 5.32% | $10274 | $254 |  | 2.47% |
| Investment securities  | 12640 | 343 | 2.71% | 15248 | 371 |  | 2.43% |
| Loans  | 87341 | 4376 | 5.01% | 82300 | 3748 |  | 4.55% |
| Other investments  | 428 | 39 | 9.11% | 444 | 8 |  | 1.80% |
| &nbsp;&nbsp;&nbsp; Total interest-earning assets  | 105237 | 5015 | 4.77% | 108266 | 4381 |  | 4.05% |
| Noninterest-earning assets  | 8177 |  |  | 5636 |  |  |  |
| Allowance for credit losses  | (1141) |  |  | (1122) |  |  |  |
| &nbsp;&nbsp;&nbsp; Total assets  | $112273 |  |  | $112780 |  |  |  |
| **Interest-bearing liabilities:** |  |  |  |  |  |  |  |
| Interest-bearing demand deposits  | $12856 | 27 | 0.21% | $14718 | 29 |  | 0.20% |
| Savings deposits  | 32628 | 366 | 1.12% | 34045 | 287 |  | 0.84% |
| Certificates of deposit  | 32602 | 1080 | 3.31% | 30182 | 657 |  | 2.18% |
| &nbsp;&nbsp;&nbsp; Total interest bearing deposits  | 78086 | 1473 | 1.89% | 78945 | 973 |  | 1.23% |
| Federal Home Loan Bank advances  | 8000 | 350 | 4.38% | 8000 | 116 |  | 1.45% |
| Other interest-bearing liabilities |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Total interest-bearing liabilities  | 86086 | 1823 | 2.12% | 86945 | 1089 |  | 1.25% |
| Noninterest-bearing demand deposits  | 6474 |  |  | 7256 |  |  |  |
| Other noninterest-bearing liabilities  | 1633 |  |  | 1278 |  |  |  |
| &nbsp;&nbsp;&nbsp; Total liabilities  | 94193 |  |  | 95479 |  |  |  |
| Total equity capital  | 18080 |  |  | 17301 |  |  |  |
| &nbsp;&nbsp;&nbsp; Total liabilities and equity capital  | $112273 |  |  | $112780 |  |  |  |
| Net interest income  |  | $3192 |  |  | $3292 |  |  |
| Net interest rate spread<sup>(1)</sup>  |  |  | 2.65% |  |  |  | 2.80% |
| Net interest-earning assets<sup>(2)</sup>  | $19151 |  |  | $21321 |  |  |  |
| Net interest margin<sup>(3)</sup>  |  |  | 3.03% |  |  |  | 3.04% |
|  Average interest-earning assets to interest-bearing liabilities  | 122.25% |  |  | 124.52% |  |  |  |

---

(1) Net interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average rate of interest-bearing liabilities.

(2) Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities.

(3) Net interest margin represents net interest income divided by average total interest-earning assets.

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#### Rate/Volume Analysis
The following table presents the effects of changing rates and volumes on our net interest income for the periods indicated. The rate column shows the effects attributable to changes in rate (changes in rate multiplied by prior volume). The volume column shows the effects attributable to changes in volume (changes in volume multiplied by prior rate). The total column represents the sum of the prior columns. For purposes of this table, changes attributable to both rate and volume, which cannot be segregated have been allocated proportionately based on the changes due to rate and the changes due to volume. There were no out-of-period items or adjustments required to be excluded from the table below.

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| | | | |
|:---|:---|:---|:---|
| | **Six Months Ended June 30, 2025 vs. June 30, 2024**  | **Six Months Ended June 30, 2025 vs. June 30, 2024**  | **Six Months Ended June 30, 2025 vs. June 30, 2024**  |
| | **Increase (Decrease) Due to:**  | **Increase (Decrease) Due to:**  | **Total Increase <br> (Decrease)**  |
| | **Volume**  | **Rate**  | **Total Increase <br> (Decrease)**  |
|  | **(ln thousands)**  | **(ln thousands)**  | **(ln thousands)**  |
| **Interest-earning assets:** |  |  |  |
| Interest-bearing deposits  | 84 | (130) | (46) |
| Investment securities  | (52) | 41 | (11) |
| Loans  | 40 | 180 | 220 |
| Other investments  |  | 1 | 1 |
| &nbsp;&nbsp;&nbsp; Total interest-earning assets  | 72 | 92 | 164 |
| **Interest-bearing liabilities:** |  |  |  |
| Interest-bearing demand deposits  | (1) |  | (1) |
| Savings deposits  | 9 |  | 9 |
| Certificates of deposit  | (27) | 23 | (4) |
| &nbsp;&nbsp;&nbsp; Total interest-bearing deposits  | (19) | 23 | 4 |
| Federal Home Loan Bank advances  |  | (1) | (1) |
| &nbsp;&nbsp;&nbsp; Total interest-bearing liabilities  | (19) | 22 | 3 |
| Change in net interest income  | 91 | 70 | 161 |

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| | | | |
|:---|:---|:---|:---|
| | **Year Ended December 31, 2024 vs. 2023**  | **Year Ended December 31, 2024 vs. 2023**  | **Year Ended December 31, 2024 vs. 2023**  |
| | **Increase (Decrease) Due to:**  | **Increase (Decrease) Due to:**  | **Total Increase <br> (Decrease)**  |
| | **Volume**  | **Rate**  | **Total Increase <br> (Decrease)**  |
|  | **(ln thousands)**  | **(ln thousands)**  | **(ln thousands)**  |
| **Interest-earning assets:** |  |  |  |
| Interest-bearing deposits  | (3) | 6 | 3 |
| Investment securities  | (86) | 58 | (28) |
| Loans  | 238 | 390 | 628 |
| Other investments  |  | 31 | 31 |
| Total interest-earning assets  | 149 | 485 | 634 |
| **Interest-bearing liabilities:** |  |  |  |
| Interest-bearing demand deposits  | (4) | 2 | (2) |
| Savings deposits  | (11) | 90 | 79 |
| Certificates of deposit  | 56 | 367 | 423 |
| Total interest-bearing deposits  | 41 | 459 | 500 |
| &nbsp;&nbsp;&nbsp; Federal Home Loan Bank advances  |  | 234 | 234 |
| Total interest-bearing liabilities  | 41 | 693 | 734 |
| Change in net interest income  | 108 | (208) | (100) |

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#### Comparison of Operating Results for the Six Months Ended June 30, 2025 and 2024
***General***. Net income for the six months ended June 30, 2025 was $126,000, a decrease of $79,000 or 38.6%, compared to $205,000 for the six months ended June 30, 2024. The decrease was due to the one-time gain on the sale of Deer Lodge location in 2024 of $311,000, partially offset by a $104,000 recovery of credit losses on loans, professional fees of $90,000 incurred in 2025 in preparation for the conversion, and a $161,000 increase in net interest income from the six months ended June 30, 2024 compared to six months ended June 30, 2025.

***Interest Income***. Interest income for the six months ended June 30, 2025 increased by $164,000, or 6.7%, from $2.4 million for the six months ended June 30, 2024 to $2.6 million for the six months ended June 30, 2025. This increase is a result of a 10.5% increase in loan interest and fees, 26.8% decrease in interest-bearing deposit and other investment interest, and a 6.6% decrease in interest from investment securities.

The average balance of loans during the six months ended June 30, 2025 increased by $1.6 million, or 1.9%, from the average balance for the six months ended June 30, 2024, while the average yield on loans increased 42 basis points to 5.37% for the six months ended June 30, 2025, from 4.95% for the six months ended June 30, 2024. The increase in average yield on loans was due to the rising interest rate environment.

The average balance of investment securities decreased by $2.7 million, or 18.2%, to $12.0 million for the six months ended June 30, 2025, from $14.7 million for the six months ended June 30, 2024 while the average yield on investment securities increased by 33 basis points to 2.64% for the six months ended June 30, 2025, from 2.31% for the six months ended June 30, 2024. This increase in yield resulted from the rising interest rate environment.

***Interest Expense***. Total interest expense for the six months ended June 30, 2025 increased $3,000, or 0.3%, to $867,000 for the six months ended June 30, 2025 from $864,000 for the six months ended June 30, 2024.

The average balance of interest-bearing demand deposits decreased by $885,000, or 6.3%, to $13.1 million for the six months ended June 30, 2025, from $13.9 million for the six months ended June 30, 2024, while the average rate on interest-bearing demand deposits remained at 0.20% for both the six months ended June 30, 2025 and 2024. The rate environment for interest-bearing demand deposits remained stable.

The average balance of savings deposits increased by $1.7 million, or 5.0%, to $34.9 million for the six months ended June 30, 2025, from $33.3 million for the six months ended June 30, 2024, while the average rate on savings deposits remained at 1.10% for both the six months ended June 30, 2025 and 2024. The rate environment for savings deposits remained stable.

The average balance of certificates of deposits decreased by $1.4 million, or 4.3%, to $29.8 million for the six months ended June 30, 2025, from $31.1 million for the six months ended June 30, 2024, while the average rate on certificates of deposits increased 11 basis points to 3.28% for the six months ended June 30, 2025, from 3.17% for the six months ended June 30, 2024. This increase in rate resulted from accounts being moved from lower priced long-term certificates of deposit accounts to short-term higher interest certificates of deposit accounts.

***Net Interest Income***. For the six months ended June 30, 2025, net interest income was $1.7 million, an increase of $161,000 or 10.2%, from the $1.6 million in net interest income for the six months ended June 30, 2024. The increase was due to an increase in net interest rate spread to 2.90% for the six months ended June 30, 2025 from 2.63% for the six months ended June 30, 2024.

***Provision for (Recovery of) Credit Losses***. The provision for (recovery of) credit losses was ($104,000) for the six months ended June 30, 2025 and $0 for the six months ended June 30, 2024. The allowance for credit losses was $1.1 million, or 1.27% of total loans, as of June 30, 2025, compared to $1.1 million, or 1.33% of total loans, as of June 30, 2024.

***Noninterest Income***. Noninterest income decreased $286,000, or 69.1%, to $128,000 for the six months ended June 30, 2025 compared to $414,000 for the six months ended June 30, 2024. We had a gain on the sale of old bank location in Deer Lodge of $311,000 in June 2024.

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***Noninterest Expense***. Noninterest expense increased $109,000, or 6.3%, to $1.8 million for the six months ended June 30, 2025 from $1.7 million for the six months ended June 30, 2024. During the six months ended June 30, 2025, additional professional fees of $90,000 were incurred in preparation for the conversion. Depreciation expense also increased by $19,000 for the six months ended June 30, 2025 compared to the same period in 2024 due to the new building in Deer Lodge.

***Provision for Income Taxes***. The provision for income taxes decreased $51,000, or 85.0%, to $9,000 for the six months ended June 30, 2025 compared to $60,000 for the six months ended June 30, 2024. The decrease was primarily due to the gain on sale of the building located at 401 Milwaukee Ave, Deer Lodge, Montana, of $311,000 during June 2024. The effective tax rates were 6.6% and 22.6% for the six months ended June 30, 2025 and 2024, respectively. The primary reason for the decrease in the six months ended June 30, 2025, effective tax rate was the $104,000 recovery of credit losses.

#### Comparison of Operating Results for the Years Ended December 31, 2024 and 2023
***General***. Net income for the year ended December 31, 2024 was $224,000, a decrease of $33,000, or 12.8%, compared to $257,000 for the year ended December 31, 2023. The decrease in net income was primarily due to a $76,000 decrease in cash value of life insurance, a $237,000 increase in depreciation expense, and a $134,000 increase in provision for deferred income taxes which were offset by an increase in noninterest income from the sale of the Deer Lodge building in June 2024 of $311,000.

***Interest Income***. Interest income increased by $634,000, or 14.5%, to $5.0 million at December 31, 2024 from $4.4 million at December 31, 2023. The increase in interest income is attributed primarily to a $628,000, or 16.8% increase in loan interest income, and a $31,000, or 387.5% increase in other investment interest income, partially offset by a $28,000, or 7.5% decrease in investment securities interest income. The increased loan interest income in 2024 is attributable to a higher overall loan interest rate environment.

The average balance of loans during the year ended December 31, 2024 increased by $5.0 million, or 6.1%, from the year ended December 31, 2023. The average yield on loans increased to 5.01% for the year ended December 31, 2024 from 4.55% for the year ended December 31, 2023.

The average balance of investment securities decreased $2.6 million to $12.6 million for the year ended December 31, 2024 from $15.2 million for the year ended December 31, 2023. The average yield on investment securities increased to 2.71% for the year ended December 31, 2024 from 2.43% for the year ended December 31, 2023. The increase in the average yield on investment securities was primarily due to the rising market interest rate environment.

***Interest Expense***. Total interest expense increased $734,000, or 67.4%, to $1.8 million for the year ended December 31, 2024 from $1.1 million for the year ended December 31, 2023. The increase was primarily due to a full year of paying interest on an $8.0 million borrowing from the FHLB that was originated in September 2023. Interest paid on FHLB borrowings increased from $116,000 in 2023 to $350,000 in 2024. There was an increase in the average cost of interest-bearing deposits to 1.89% for the year ended December 31, 2024 from 1.23% for the year ended December 31, 2023, reflecting the rising market interest rate environment. The average balance of interest-bearing deposits decreased by $859,000, or 1.1%. to $78.1 million for the year ended December 31, 2024 from $78.9 million for the year ended December 31, 2023.

***Net Interest Income***. Net interest income decreased $100,000, or 3.0%, to $3.2 million for the year ended December 31, 2024 compared to $3.3 million for the year ended December 31, 2023. The decrease reflects the decrease in the interest rate spread to 2.65% for the year ended December 31, 2024 from 2.80% for the year ended December 31, 2023, while average net interest-earning assets decreased $2.2 million year-to-year. The net interest margin decreased to 3.03% for the year ended December 31, 2024 from 3.04% for the year ended December 31, 2023. Both the interest rate spread and net interest margin decreased due to the rising interest rate environment, along with interest-earning assets repricing more slowly than interest-bearing liabilities.

***Provision for (Recovery of) Credit Losses***. The provision for credit losses on loans increased by $50,000 for the year ended December 31, 2024 from the year ended December 31, 2023. The allowance for credit losses increased by $68,000, or 5.9%, to $1.2 million at December 31, 2024 from $1.1 million at

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December 31, 2023. The allowance for credit losses represented 1.37% of total loans at December 31, 2024 and 1.38% of total loans as of December 31, 2023. The determination of the adequacy of the allowance for credit losses was based primarily on the low balances of nonperforming loans, delinquent loans and net charge offs in both periods. The provision for (recovery of) credit losses on unfunded loan commitments decreased by $56,000 for the year ended December 31, 2024 from the year ended December 31, 2023. The reserve for unfunded loan commitments decreased $39,000, or 52.9%, to $35,000 at December 31, 2024 from $74,000 at December 31, 2023.

The increase in the provision for credit losses was primarily attributable to a $5.4 million, or 6.5% increase in gross loans during the year ended December 31, 2024, along with increases in nonperforming and delinquent loans year-to-year. Total nonperforming loans were $1.7 million at December 31, 2024, compared to $597,000 million at December 31, 2023. Total loans past due 30 days or greater were $1.7 million and $597,000 at December 31, 2024 and 2023, respectively. As a percentage of nonperforming loans, the allowance for credit losses was 70.37% at December 31, 2024 compared to 191.06% at December 31, 2023.

The allowance for credit losses reflects the estimate management believes to be appropriate to cover current expected credit losses which were inherent in the loan portfolio at December 31, 2024 and 2023. While management believes the estimates and assumptions used in the determination of the adequacy of the allowance are reasonable, such estimates and assumptions could be proven incorrect in the future, and the actual amount of future provisions may exceed the amount of past provisions. Any such increase in future provisions that may be required may adversely impact the Pioneer State Bank's financial condition and results of operations. Furthermore, as an integral part of its examination process, the FDIC will periodically review our allowance for credit losses. The FDIC may have judgements different than those of management, and we may determine to increase our allowance as a result of these regulatory reviews.

***Noninterest Income***. Noninterest income totaled $495,000 for the year ended December 31, 2024, an increase of $227,000, or 84.7%, from $268,000 for the year ended December 31, 2023. The increase was primarily due to a $311,000 gain on the sale of the previous Deer Lodge location due to the construction of a new Deer Lodge location.

***Noninterest Expense***. Noninterest expense increased $227,000, or 7.2%, to $3.4 million for the year ended December 31, 2024, compared to $3.1 million for the year ended December 31, 2023. The increase was primarily attributable to an increase in depreciation expense of $237,000 for the new building in Deer Lodge.

***Provision for Income Taxes***. The provision for income taxes decreased by $60,000, or 45.1%, to $73,000 for the year ended December 31, 2024, compared to $133,000 for the year ended December 31, 2023. The decrease was due primarily to a $30,000 decrease in tax on investment securities or 12.0% and a $260,000 increase to occupancy expenses. The effective tax rates were 24.7% and 34.1% for the years ended December 31, 2024 and 2023, respectively. The decrease in the effective tax rate was primarily due to the added costs of construction and occupancy of our new Deer Lodge office.

#### Management of Market Risk
***General***. Our most significant form of market risk is interest rate risk because, as a financial institution, the majority of our assets and liabilities are sensitive to changes in interest rates. Therefore, a principal part of our operations is to manage interest rate risk and limit the exposure of our financial condition and results of operations to changes in market interest rates. All directors participate in discussions during the regular board meetings evaluating the interest rate risk inherent in our assets and liabilities, and the level of risk that is appropriate. These discussions take into consideration our business strategy, operating environment, capital, liquidity and performance objectives consistent with the policy and guidelines approved by them.

Our asset/liability management strategy attempts to manage the impact of changes in interest rates on net interest income, our primary source of earnings. Among the techniques we are using to manage interest rate risk are:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • maintaining capital levels that exceed the thresholds for well-capitalized status under federal regulations;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • maintaining a high level of liquidity;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • growing our core deposit accounts;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • managing our investment securities portfolio so as to reduce the average maturity and effective life of the portfolio; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • continuing to diversify our loan portfolio by adding more commercial real estate loans and commercial loans, which typically have shorter maturities and/or balloon payments.

By following these strategies, we believe that we are better positioned to react to increases and decreases in market interest rates.

We have not engaged in hedging activities, such as engaging in futures or options. We do not anticipate entering into similar transactions in the future.

***Economic Value of Equity***. We compute amounts by which the net present value of our assets and liabilities (economic value of equity or "EVE") would change in the event of a range of assumed changes in market interest rates. This model uses a discounted cash flow analysis and an option-based pricing approach to measure the interest rate sensitivity of net portfolio value. The model estimates the economic value of each type of asset, liability and off-balance sheet contract under the assumptions that the United States Treasury yield curve increases instantaneously by 100, 200 and 300 basis point increments or decreases instantaneously by 100, 200 and 300 basis point increments.

The following table sets forth, as of June 30, 2025, the calculation of the estimated changes in our EVE that would result from the designated immediate changes in the United States Treasury yield curve.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **At June 30, 2025**  | **At June 30, 2025**  | **At June 30, 2025**  | **At June 30, 2025**  | **At June 30, 2025**  | **At June 30, 2025**  |
|  |  |  |  | **EVE as a Percentage of Present <br> Value of Assets<sup>(3)</sup>**  | **EVE as a Percentage of Present <br> Value of Assets<sup>(3)</sup>**  |
| **Change in Interest Rates <br> (basis points)<sup>(1)</sup>**  | **Estimated <br> EVE<sup>(2)</sup>**  | **Estimated Increase (Decrease) in <br> EVE**  | **Estimated Increase (Decrease) in <br> EVE**  | **EVE Ratio<sup>(4)</sup>**  | **Increase <br> (Decrease) <br> (basis points)**  |
| **Change in Interest Rates <br> (basis points)<sup>(1)</sup>**  | **Estimated <br> EVE<sup>(2)</sup>**  | **Amount**  | **Percent**  | **EVE Ratio<sup>(4)</sup>**  | **Increase <br> (Decrease) <br> (basis points)**  |
|  | **(Dollars in thousands)**  | **(Dollars in thousands)**  | **(Dollars in thousands)**  | **(Dollars in thousands)**  | **(Dollars in thousands)**  |
| 300  | 15235 | (3116) | -16.98% | 13.47% | (276) |
| 200  | 16210 | (2141) | -11.67% | 14.33% | (190) |
| 100  | 17246 | (1105) | -6.02% | 15.25% | (98) |
| -  | 18351 |  |  | 16.23% | 0 |
| (100)  | 19459 | 1108 | 6.04% | 17.21% | 98 |
| (200)  | 20649 | 2298 | 12.52% | 18.26% | 203 |
| (300)  | 21928 | 3577 | 19.49% | 19.39% | 316 |

---

(1) Assumes an immediate uniform change in interest rates at all maturities.

(2) EVE is the discounted present value of expected cash flows from assets, liabilities and off-balance sheet contracts.

(3) Present value of assets represents the discounted present value of incoming cash flows on interest-earning assets.

(4) EVE Ratio represents EVE divided by the present value of assets.

The table above indicates that at June 30, 2025, we would have experienced a 12.52% increase in EVE in the event of an instantaneous 200 basis point decrease in market interest rates and a 11.67% decrease in EVE in the event of an instantaneous 200 basis point increase in market interest rates.

The following table sets forth, as of December 31, 2024, the calculation of the estimated changes in our EVE that would result from the designated immediate changes in the United States Treasury yield curve.

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---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **At December 31, 2024**  | **At December 31, 2024**  | **At December 31, 2024**  | **At December 31, 2024**  | **At December 31, 2024**  | **At December 31, 2024**  |
|  |  |  |  | **EVE as a Percentage of Present Value <br> of Assets<sup>(3)</sup>**  | **EVE as a Percentage of Present Value <br> of Assets<sup>(3)</sup>**  |
| **Change in Interest Rates <br> (basis points)<sup>(1)</sup>**  | **Estimated <br> EVE<sup>(2)</sup>**  | **Estimated Increase (Decrease) in <br> EVE**  | **Estimated Increase (Decrease) in <br> EVE**  | **EVE Ratio<sup>(4)</sup>**  | **Increase <br> (Decrease) <br> (basis points)**  |
| **Change in Interest Rates <br> (basis points)<sup>(1)</sup>**  | **Estimated <br> EVE<sup>(2)</sup>**  | **Amount**  | **Percent**  | **EVE Ratio<sup>(4)</sup>**  | **Increase <br> (Decrease) <br> (basis points)**  |
|  | **(Dollars in thousands)**  | **(Dollars in thousands)**  | **(Dollars in thousands)**  | **(Dollars in thousands)**  | **(Dollars in thousands)**  |
| 300  | 14680 | (3730) | -20.26% | 13.08% | (332) |
| 200  | 15852 | (2558) | -13.89% | 14.12% | (228) |
| 100  | 17093 | (1317) | -7.15% | 15.23% | (117) |
| -  | 18410 |  |  | 16.40% | 0 |
| (100)  | 19743 | 1333 | 7.24% | 17.59% | 119 |
| (200)  | 21166 | 2756 | 14.97% | 18.85% | 245 |
| (300)  | 22688 | 4278 | 23.24% | 20.21% | 381 |

---

(1) Assumes an immediate uniform change in interest rates at all maturities.

(2) EVE is the discounted present value of expected cash flows from assets, liabilities and off-balance sheet contracts.

(3) Present value of assets represents the discounted present value of incoming cash flows on interest-earning assets.

(4) EVE Ratio represents EVE divided by the present value of assets.

The table above indicates that at December 31, 2024, we would have experienced a 14.97% increase in EVE in the event of an instantaneous 200 basis point decrease in market interest rates and a 13.89% decrease in EVE in the event of an instantaneous 200 basis point increase in market interest rates.

The following table sets forth, as of December 31, 2023, the calculation of the estimated changes in our EVE that would result from the designated immediate changes in the United States Treasury yield curve.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **At December 31, 2023**  | **At December 31, 2023**  | **At December 31, 2023**  | **At December 31, 2023**  | **At December 31, 2023**  | **At December 31, 2023**  |
|  |  |  |  | **EVE as a Percentage of Present Value <br> of Assets<sup>(3)</sup>**  | **EVE as a Percentage of Present Value <br> of Assets<sup>(3)</sup>**  |
| **Change in Interest Rates <br> (basis points)<sup>(1)</sup>**  | **Estimated <br> EVE<sup>(2)</sup>**  | **Estimated Increase (Decrease) in <br> EVE**  | **Estimated Increase (Decrease) in <br> EVE**  | **EVE Ratio<sup>(4)</sup>**  | **Increase <br> (Decrease) <br> (basis points)**  |
| **Change in Interest Rates <br> (basis points)<sup>(1)</sup>**  | **Estimated <br> EVE<sup>(2)</sup>**  | **Amount**  | **Percent**  | **EVE Ratio<sup>(4)</sup>**  | **Increase <br> (Decrease) <br> (basis points)**  |
|  | **(Dollars in thousands)**  | **(Dollars in thousands)**  | **(Dollars in thousands)**  | **(Dollars in thousands)**  | **(Dollars in thousands)**  |
| 300  | 14700 | (3205) | -17.90% | 13.05% | (284) |
| 200  | 15716 | (2189) | -12.23% | 13.95% | (194) |
| 100  | 16781 | (1124) | -6.28% | 14.89% | (100) |
| -  | 17905 |  |  | 15.89% | 0 |
| (100)  | 19049 | 1144 | 6.39% | 16.91% | 102 |
| (200)  | 20266 | 2361 | 13.19% | 17.99% | 210 |
| (300)  | 21566 | 3661 | 20.45% | 19.14% | 325 |

---

(1) Assumes an immediate uniform change in interest rates at all maturities.

(2) EVE is the discounted present value of expected cash flows from assets, liabilities and off-balance sheet contracts.

(3) Present value of assets represents the discounted present value of incoming cash flows on interest-earning assets.

(4) EVE Ratio represents EVE divided by the present value of assets.

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The table above indicates that at December 31, 2023, we would have experienced a 13.19% increase in EVE in the event of an instantaneous 200 basis point decrease in market interest rates and a 12.23% decrease in EVE in the event of an instantaneous 200 basis point increase in market interest rates.

***Change in Net Interest Income***. The following table sets forth, at June 30, 2025, the calculation of the estimated changes in our net interest income ("NII") that would result from the designated immediate changes in the United States Treasury yield curve.

---

| | | |
|:---|:---|:---|
| **At June 30, 2025**  | **At June 30, 2025**  | **At June 30, 2025**  |
| **Change in Interest Rates <br> (basis points)<sup>(1)</sup>** | **Net Interest Income Year 1 <br> Forecast**  | **Year 1 Change from Level**  |
|  | **(Dollars in thousands)**  | **(Dollars in thousands)**  |
| +300  | 3465 | -3.75% |
| +200  | 3511 | -2.47% |
| +100  | 3556 | -1.22% |
| Level  | 3600 | 0.00% |
| -100  | 3696 | 2.67% |
| -200  | 3784 | 5.11% |
| -300  | 3861 | 7.25% |

---

(1) Assumes an immediate uniform change in interest rates at all maturities.

The table above indicates that at June 30, 2025, we would have experienced a 5.11% increase in net interest income in the event of an instantaneous 200 basis point decrease in market interest rates and a 2.47% decrease in net interest income in the event of an instantaneous 200 basis point increase in market interest rates.

The following table sets forth, at December 31, 2024, the calculation of the estimated changes in our NII that would result from the designated immediate changes in the United States Treasury yield curve.

---

| | | |
|:---|:---|:---|
| **At December 31, 2024**  | **At December 31, 2024**  | **At December 31, 2024**  |
| **Change in Interest Rates <br> (basis points)<sup>(1)</sup>** | **Net Interest Income Year 1 <br> Forecast**  | **Year 1 Change from Level**  |
|  | **(Dollars in thousands)**  | **(Dollars in thousands)**  |
| +300  | 2917 | -9.94% |
| +200  | 3025 | -6.61% |
| +100  | 3132 | -3.30% |
| Level  | 3239 | 0.00% |
| -100  | 3373 | 4.14% |
| -200  | 3496 | 7.93% |
| -300  | 3611 | 11.49% |

---

(1) Assumes an immediate uniform change in interest rates at all maturities.

The table above indicates that at December 31, 2024, we would have experienced a 7.93% increase in net interest income in the event of an instantaneous 200 basis point decrease in market interest rates and a 6.61% decrease in net interest income in the event of an instantaneous 200 basis point increase in market interest rates.

The following table sets forth, as of December 31, 2023, the calculation of the estimated changes in our net interest income that would result from the designated immediate changes in the United States Treasury yield curve.

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---

| | | |
|:---|:---|:---|
| **At December 31, 2023**  | **At December 31, 2023**  | **At December 31, 2023**  |
| **Change in Interest Rates <br> (basis points)<sup>(1)</sup>** | **Net Interest Income Year 1 <br> Forecast**  | **Year 1 Change from Level**  |
|  | **(Dollars in thousands)**  | **(Dollars in thousands)**  |
| +300  | 3197 | -4.96% |
| +200  | 3254 | -3.27% |
| +100  | 3309 | -1.63% |
| Level  | 3364 | 0.00% |
| -100  | 3489 | 3.72% |
| -200  | 3599 | 6.99% |
| -300  | 3702 | 10.05% |

---

(1) Assumes an immediate uniform change in interest rates at all maturities.

The table above indicate that at December 31, 2023, we would have experienced a 6.99% increase in net interest income in the event of an instantaneous 200 basis point decrease in market interest rates and a 3.27% decrease in net interest income in the event of an instantaneous 200 basis point increase in market interest rates.

Certain shortcomings are inherent in the methodologies used in the interest rate risk modeling methodologies summarized above. Modeling changes in EVE and NII require making certain assumptions that may or may not reflect the manner in which actual yields and costs respond to changes in market interest rates. For instance, the EVE and NII tables presented above assume that the composition of our interest-sensitive assets and liabilities existing at the beginning of a period remains constant over the period being measured and assumes that a particular change in interest rates is reflected uniformly across the yield curve regardless of the duration or repricing of specific assets and liabilities. However, the shape of the yield curve changes constantly and the value and pricing of our assets and liabilities, including our deposits, may not closely correlate with changes in market interest rates. Accordingly, although the EVE and NII tables may provide an indication of our interest rate risk exposure at a particular point in time and in the context of a particular yield curve, such measurements are not intended to and do not provide a precise forecast of the effect of changes in market interest rates on EVE and NII and will differ from actual results.

EVE and NII calculations also may not reflect the fair values of financial instruments. For example, a decrease in market interest rates can increase the fair values of our loans, deposits and borrowings. Conversely, an increase in market interest rates can decrease the fair value of our loans, deposits and borrowings.

#### Liquidity and Capital Resources
Liquidity describes our ability to meet the financial obligations that arise in the ordinary course of business. Liquidity is primarily needed to meet the borrowing and deposit withdrawal requirements of our customers and to fund current and planned expenditures. Our primary sources of funds are deposits, principal and interest payments on loans and securities, and proceeds from maturities of securities. We also have the ability to borrow from the Federal Home Loan Bank of Des Moines. At June 30, 2025, we had $8.0 million in borrowings from the Federal Home Loan Bank of Des Moines with additional capacity to borrow $37.7 million.

While maturities and scheduled amortization of loans and securities are predictable sources of funds, deposit flows and loan prepayments are greatly influenced by general interest rates, economic conditions, and competition. Our most liquid assets are cash and short-term investments. The levels of these assets depend on our operating, financing, lending, and investing activities during any given period.

Our cash flows are comprised of three primary classifications: cash flows from operating activities, cash flows from investing activities, and cash flows from financing activities. For the six months ended June 30, 2025, cash flows from operating, investing, and financing activities resulted in a net increase in cash and cash equivalents of $2.8 million. Net cash provided by investing activities amounted to $1.7 million,

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primarily due to a net decrease in loans. Net cash provided by financing activities amounted to $834,000, primarily due to a net increase in deposits of $753,000. Net cash provided by operating activities amounted to $187,000, primarily due to a change in operating assets and liabilities.

For the year ended December 31, 2024, cash flows from operating, investing, and financing activities resulted in a net decrease in cash and cash equivalents of $3.8 million. Net cash provided by operating activities amounted to $320,000, primarily due to net income of $224,000. Net cash used in investing activities amounted to $3.1 million, primarily due to a net increase in loans of $5.4 million, partially offset by proceeds from maturities of investment securities available for sale of $1.8 million and maturities of investment securities held to maturity of $835,000. Net cash used in financing activities amounted to $965,000, primarily due to a net decrease in deposits.

For the year ended December 31, 2023, cash flows from operating, investing, and financing activities resulted in a net increase in cash and cash equivalents of $4.1 million. Net cash provided by operating activities amounted to $392,000, primarily due to net income of $257,000. Net cash used in investing activities amounted to $5.0 million, primarily due to purchase of premises and equipment of $3.3 million, net increase in loans of $3.5 million offset by proceeds from maturities of investment securities available for sale of $1.7 million and investment securities held to maturity of $428,000. Net cash provided by financing activities amounted to $8.7 million, primarily due to proceeds from the Federal Home Loan Bank advance of $8.0 million and a net increase in deposits of $795,000. For further information, see the statements of cash flows contained in the financial statements appearing elsewhere in this prospectus.

We monitor our liquidity position on a daily basis. We anticipate that we will have sufficient funds to meet our current funding commitments. Based on our deposit retention experience and current pricing strategy, we anticipate that a significant portion of maturing time deposits will be retained.

At June 30 2025, Pioneer State Bank was categorized as well-capitalized under regulatory capital guidelines. Management is not aware of any conditions or events since the most recent notification that would change our category. For further information, see Note 4 to the notes to financial statements.

***Off -Balance Sheet Arrangements***. At June 30, 2025, we had $205,000 of outstanding commitments to originate loans, $2.0 million in unused commercial line of credit commitments and $2.8 million of unfunded home equity loans. At June 30, 2025, certificates of deposit and individual retirement accounts that are scheduled to mature on or before June 30, 2026 totaled $25.5 million. Management expects that a substantial portion of the maturing certificates of deposit will be renewed. However, if a substantial portion of these deposits is not retained, we may utilize Federal Home Loan Bank of Des Moines advances or raise interest rates on deposits to attract new accounts, which may result in higher levels of interest expense.

#### Recent Accounting Pronouncements
For a discussion of the impact of recent accounting pronouncements, see Note 1 of the notes to the financial statements appearing elsewhere in this prospectus.

#### Impact of Inflation and Changing Prices
The financial statements and related data presented in this prospectus have been prepared according to GAAP which require the measurement of financial position and operating results in terms of historical dollars without considering changes in the relative purchasing power of money over time due to inflation. The primary impact of inflation on our operations is reflected in increased operating costs. Unlike most industrial companies, virtually all of the assets and liabilities of a financial institution are monetary in nature. As a result, interest rates, generally, have a more significant impact on a financial institution's performance than does inflation. Interest rates do not necessarily move in the same direction or to the same extent as the prices of goods and services.

#### BUSINESS OF PSB FINANCIAL
PSB Financial was incorporated in the State of Maryland on September 11, 2025, and has not engaged in any business to date. Upon completion of the stock offering and conversion, it will own all of the issued and outstanding capital stock of Pioneer State Bank. We intend to contribute at least 50% of the net proceeds

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from the stock offering to Pioneer State Bank. PSB Financial will retain the remainder of the net proceeds from the stock offering and use a portion of the retained net proceeds to make a loan to the ESOP. In the future, we may use the net proceeds to repurchase shares of common stock, subject to our capital needs, regulatory limitations and other factors. We will invest our initial capital as discussed in "How We Intend to Use the Proceeds from the Stock Offering."

Upon the completion of the stock offering and conversion, PSB Financial will be the holding company of Pioneer State Bank and will be authorized to pursue other business activities permitted by applicable laws and regulations. See "Regulation and Supervision — Holding Company Regulation" for a discussion of the activities that are permitted for bank holding companies.

Following the stock offering and conversion, our cash flow will depend on earnings from the investment of the net proceeds from the stock offering that we retain, and any dividends we receive from Pioneer State Bank. Pioneer State Bank will be subject to regulatory limitations on the amount of dividends that it may pay. See "Regulation and Supervision — Federal Banking Regulation — Capital Distributions."

Initially, PSB Financial will neither own nor lease any property, but will instead pay a fee to Pioneer State Bank for the use of its premises, equipment and furniture. At the present time, we intend to employ only persons who are officers of Pioneer State Bank to serve as officers of PSB Financial. However, we will periodically use the support staff of Pioneer State Bank. We will pay a fee to Pioneer State Bank for the time its employees devote to PSB Financial; however, these individuals will not be separately compensated by PSB Financial. PSB Financial may hire additional employees, as appropriate, to the extent it expands its business in the future.

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#### BUSINESS OF PIONEER FEDERAL

#### General
We conduct our business from our main office in Deer Lodge, Montana, and our branch office, located in Dillon, Montana. Our loan portfolio consists primarily of one- to four-family residential mortgage loans. To a substantially lesser extent, we also originate commercial real estate loans, construction and land development loans, commercial loans, home equity loans and lines of credit, and consumer and automobile loans. We offer a variety of deposit accounts including non-interest-bearing demand accounts, interest-bearing demand accounts, money market accounts, savings accounts and certificates of deposit. In addition, we offer electronic banking services including mobile banking as well as online banking and bill pay. We are subject to comprehensive regulation and examination by MDOB and the FDIC, our primary federal regulator.

Our main office is located at 202 North Main Street, Deer Lodge, Montana, and the telephone number at that address is (406) 846-2202. Our website address is *www.pioneerfed.com*. Information on our website is not incorporated into this prospectus and should not be considered part of this prospectus.

#### Market Area
We consider our primary market area for loan originations and deposit gathering to be Beaverhead and Powell Counties, as well as Deer Lodge, Granite, Silver Bow, Madison, Lewis & Clark counties and contiguous areas, in the western region of Montana. Both Deer Lodge and Dillon are close to the population hub of Butte, Montana, with Dillon approximately 60 miles southwest of Butte and Deer Lodge approximately 35 miles northwest of Butte.

Our primary market area is predominately rural with centralized town centers. According to the latest available data from the United States Census Bureau, Beaverhead County has a population of approximately 10,100, and Powell County has a population of approximately 7,200. The primary economic drivers in our market area are agriculture, tourism, and energy and resources including forest and mineral products. The market area economy has a focus on general agriculture, including cattle/sheep ranching and outdoors activities with a cross-section of other economic sectors including mining, healthcare and services. Various national parks or forestlands are located in the region.

Agriculture is one of the primary economic drivers for Beaverhead County, with cattle and hay the primary agriculture activities. Both market area counties have a large tourism economic sector, as the area is known for its outdoor recreational activities including fishing, snowmobiling, and hiking with both counties containing various national protected areas and national forests. Major employers in the primary market area include the Montana State Prison, Barrett Hospital and Healthcare, and High Divide Minerals, Inc., a large talc mine. In addition, other major employers include the local public schools, the University of Montana Western, Deer Lodge Medical Center, and various government agencies, including the U.S. Forest Service and the Bureau of Land Management.

Key demographic and economic indicators for Pioneer Federal's market area include population, number of households and household/per capita income levels. The two market areas of Beaverhead and Powell Counties have a total population of 17,300 as of 2025, with Powell County containing the city of Deer Lodge and Beaverhead County containing the town of Dillon. The two counties are not contiguous.

However, Beaverhead and Powell Counties continue to witness above average, if slowing, growth relative to the United States, which is generally consistent with the State of Montana. Beaverhead and Powell Counties experienced a 1.1% and 1.2% growth rate, respectively, from 2019 to 2025, with Beaverhead County projected to continue growth around 1.2% from 2025 to 2029 and Powell County expected to see growth around 0.7% in the same period. The United States population grew approximately 0.4% from 2019 to 2025 and is expected to grow at a rate of approximately 0.5% from 2025 to 2029. The projected growth statistics for Beaverhead and Powell Counties are roughly on par with the State of Montana from 2025 to 2029.

Median household and per capita income levels in Beaverhead and Powell Counties were below the state and national averages, with per capita income levels closer to the respective state and national figures. Over the next five years, income levels in the market area are projected to follow national trends, at lower

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growth rates than the most recent periods, and the two market area counties both recording similar rates of increase in income as the state and nation. Specifically, household income in Beaverhead and Powell Counties grew at 0.9% and 0.8%, respectively, from 2019 to 2025, which is roughly the same as the statewide average of 1.0% but outpaces the United States average of 0.6%. Median household income, which is $63,124 for Beaverhead County and $64,818 for Powell County, grew at a pace of 6.1% and 4.8%, respectively, from 2019 to 2025 as compared to statewide growth of 4.9% over the same period. Annual growth rate for median income in Beaverhead and Powell Counties is expected to be approximately the same as the United States at 1.7% from 2025 to 2029, marginally lagging behind the statewide projected average growth of 1.9%.

Age distribution measures indicated that both market area counties reported an overall older population base than the state and nation. The age distribution, along with detailed growth data, is presented below:

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Year**  | **Year**  | **Year**  | **Year**  | **Year**  | **Year**  | **Annual Growth Rate**  | **Annual Growth Rate**  |
| | **2019**  | **2019**  | **2025**  | **2025**  | **2029**  | **2029**  | **2019 – 2025**  | **2025 – 2029**  |
|  |  |  |  |  |  |  | **(%)**  | **(%)**  |
| **<u>Population (000)</u>** |  |  |  |  |  |  |  |  |
| USA |  | 329236 |  | 337644 |  | 345736 | 0.4% | 0.5% |
| Montana  |  | 1065 |  | 1154 |  | 1210 | 1.3% | 0.9% |
| Powell, MT  |  | 6.7 |  | 7.2 |  | 7.5 | 1.2% | 0.7% |
| Beaverhead, MT  |  | 9.5 |  | 10.1 |  | 10.8 | 1.1% | 1.2% |
| **<u>Households (000)</u>** |  |  |  |  |  |  |  |  |
| USA |  | 125019 |  | 129687 |  | 133187 | 0.6% | 0.5% |
| Montana  |  | 450 |  | 477 |  | 501 | 1.0% | 1.0% |
| Powell, MT  |  | 2.4 |  | 2.5 |  | 2.6 | 0.8% | 0.8% |
| Beaverhead, MT  |  | 4.2 |  | 4.5 |  | 4.8 | 0.9% | 1.4% |
| **<u>Median Household income ($)</u>** |  |  |  |  |  |  |  |  |
| USA |  | 63174 |  | 78770 |  | 88719 | 3.7% | 1.7% |
| Montana  |  | 54154 |  | 72066 |  | 79306 | 4.9% | 1.9% |
| Powell, MT  |  | 48980 |  | 64818 |  | 70411 | 4.8% | 1.7% |
| Beaverhead, MT  |  | 44265 |  | 63124 |  | 63124 | 6.1% | 1.7% |
| **<u>Per Capita income ($)</u>** |  |  |  |  |  |  |  |  |
| USA |  | 34902 |  | 44561 |  | 48539 | 4.2% | 1.7% |
| Montana  |  | 32511 |  | 41567 |  | 46125 | 4.2% | 2.1% |
| Powell, MT  |  | 34593 |  | 38230 |  | 41660 | 1.7% | 1.7% |
| Beaverhead, MT  |  | 30185 |  | 41754 |  | 46049 | 5.6% | 2.0% |
| **<u>2025 Age Distribution (%)</u>**  | **0 – 14 Yrs.**  | **0 – 14 Yrs.**  | **15 – 34 Yrs.**  | **15 – 34 Yrs.**  | **35 – 54 Yrs.**  | **35 – 54 Yrs.**  | **55 – 69 Yrs.**  | **70+ Yrs.**  |
| USA |  | 17.3 |  | 26.5 |  | 25.2 | 18.1 | 12.8 |
| Montana  |  | 16.5 |  | 25.8 |  | 24.2 | 18.9 | 14.6 |
| Powell, MT  |  | 12 |  | 24.3 |  | 26.9 | 21.4 | 15.4 |
| Beaverhead, MT  |  | 13.2 |  | 27.5 |  | 21.3 | 20.6 | 17.3 |
| **<u>2025 HH Income Dist. (%)</u>**  | **Less Than <br> $25,000**  | **Less Than <br> $25,000**  | **$25,000 to <br> $50,000**  | **$25,000 to <br> $50,000**  | **$50,000 to <br> $100,000**  | **$50,000 to <br> $100,000**  | **$100,000+**  |  |
| USA |  | 15.1 |  | 17.3 |  | 28.2 | 39.3 |  |
| Montana  |  | 15.5 |  | 19.4 |  | 31 | 34.2 |  |
| Powell, MT  |  | 13.2 |  | 27.3 |  | 32 | 27.5 |  |
| Beaverhead, MT  |  | 19.6 |  | 20.3 |  | 31.5 | 28.6 |  |

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Source: S&P Capital IQ.

Annual changes in household trends were similar to the population trends, but at similar or lower levels, a result of a nationwide trend toward smaller household sizes. Such population and household trends are projected to continue over the next five years, with Beaverhead County reporting higher growth in population and households.

#### Competition
We face strong competition within our primary market area, both in making loans and attracting retail deposits. Our market area includes some large money centers and regional banks, but it consists primarily of community banks, a savings institution, and credit unions. We also face competition for loans from mortgage banking firms, consumer finance companies credit unions, internet-based institutions, and fintech companies; with respect to deposits, we face additional competition from money market funds, brokerage firms, mutual funds, and insurance companies.

At June 30, 2024 (the most recent date for which FDIC information is publicly available), we were ranked third among the five FDIC-insured financial institutions with offices in our market share areas of Beaverhead and Powell Counties, with a two-county combined deposit market share of 17.37%. Our deposit market share of 28.57% in Powell County is second among three FDIC-insured financial institutions; our deposit share in Beaverhead County is 12.06%, which ranks third among three FDIC-insured financial institutions. In the broader banking market that is substantially consistent with our primary market area described above, and which includes both the City of Butte, Montana and the counties of Beaverhead and Powell, we ranked tenth among FDIC-insured financial institutions, having a market share of 4.54% as of June 30, 2024.

#### Lending Activities
***General***. Pioneer Federal's loan portfolio consists primarily of fixed-rate mortgage loans secured by one- to four-family residential properties. To a significantly lesser extent, Pioneer Federal also originates commercial loans, construction and land development loans, home equity lines of credit and consumer and automobile loans. A substantial portion of the commercial real estate and non-real estate loans in our portfolio reflect purchased participation loans. We originate loans primarily for retention in our portfolio. We are not an active seller of loans, and Pioneer Federal has not historically sold conforming, fixed-rate residential mortgage loans with longer terms into the secondary market.

The Federal Reserve began increasing interest rates in March 2022 in response to elevated inflation rates. By July 2023, the Federal Reserve had increased the base federal funds target rate by a total of 11 times to 5.50%, while the prime rate of interest had increased to 8.50%. While this helped reduce the inflation rate, until recently the treasury yield curve was continuously inverted since July 2022, the longest period on record. In general, the inverted yield curve caused funding costs to remain high in relation to other shorter-term indexes used in pricing banking assets. The recent three interest rate reductions by the Federal Reserve from September through December 2024 have provided some relief from the higher rate environment, and the yield curve is essentially flat in the short term and a modestly rising slope for terms of 1 year to 30 years.

The current higher interest rate environment has benefited financial institutions as adjustable-rate loans have repriced upward, either immediately for prime based loans, or over a period of time. However, more recently, funding costs have risen substantially as institutions react to the need to retain funds to support the on-balance sheet loan portfolio and the related liquidity levels. Residential loan demand, particularly for refinance transactions, has been substantially impacted by rising interest rates, and the remaining lending sectors may be impacted by various uncertainties in the economic environment, thus indicating some limitations on bank lending and activity in the near-term future.

Regarding factors that most directly impact the banking and financial services industries, the Federal Reserve reduced market interest rates in 2024, totaling 1.0%. Such rate decreases were enacted in response to the Federal Reserve's statutory goals of lower inflation and lower unemployment. The median sales price of an existing home in the United States, which recorded notable increases through 2022, has fluctuated

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in recent periods. After declining in late 2023 and reaching a low of $378,600 in January 2024, the average subsequently increased to $426,900 in June 2024 and then declined to $393,400 in January 2025. Through May 2025, such values increased to $422,800. These figures compare favorably to the generational low of $169,000 recorded in March 2009 during the national recession.

***Detailed Loan Portfolio Composition***. The following table sets forth the composition of our loan portfolio by type of loan at the dates indicated. There were no loans held for sale at any date indicated.

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | | | **At December 31,**  | **At December 31,**  | **At December 31,**  | **At December 31,**  |
| | **At June 30, 2025**  | **At June 30, 2025**  | **2024**  | **2024**  | **2023**  | **2023**  |
| | **Amount**  | **Percent**  | **Amount**  | **Percent**  | **Amount**  | **Percent**  |
|  | **(Dollars in thousands)**  | **(Dollars in thousands)**  | **(Dollars in thousands)**  | **(Dollars in thousands)**  | **(Dollars in thousands)**  | **(Dollars in thousands)**  |
| Commercial: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Other construction and land/land development  | $1742 | 2.01% | $1909 | 2.17% | $832 | 1.01% |
| &nbsp;&nbsp;&nbsp; Farmland  |  |  |  |  | 110 | 0.13% |
| &nbsp;&nbsp;&nbsp; Commercial real estate  | 4421 | 5.10% | 4173 | 4.76% | 2916 | 3.53% |
| &nbsp;&nbsp;&nbsp; Agricultural production  | 10 | 0.01% | 15 | 0.02% | 26 | 0.03% |
| &nbsp;&nbsp;&nbsp; Commercial and industrial  | 1112 | 1.28% | 1516 | 1.72% | 2608 | 3.16% |
| &nbsp;&nbsp;&nbsp; Municipal  | 49 | 0.06% | 51 | 0.06% | 56 | 0.07% |
| Residential real estate: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Residential construction  | 1225 | 1.41% | 2323 | 2.64% | 1532 | 1.85% |
| &nbsp;&nbsp;&nbsp; Revolving, open-end  | 2508 | 2.90% | 1763 | 2.00% | 1516 | 1.84% |
| &nbsp;&nbsp;&nbsp; First liens  | 73212 | 84.52% | 74275 | 84.46% | 71561 | 86.68% |
| &nbsp;&nbsp;&nbsp; Junior liens  | 1007 | 1.16% | 707 | 0.80% | 368 | 0.45% |
| Consumer  | 1337 | 1.55% | 1207 | 1.37% | 1034 | 1.25% |
|  | 86623 | 100.00% | 87939 | 100.00% | 82559 | 100.00% |
| Less: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Allowance for credit losses  | 1099 |  | 1208 |  | 1141 |  |
| &nbsp;&nbsp;&nbsp; Net deferred loan fees  | 392 |  | 404 |  | 382 |  |
| &nbsp;&nbsp;&nbsp; Loans, net  | $85132 |  | $86327 |  | $81036 |  |

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***Contractual Maturities***. The following table sets forth the contractual maturities of our total loan portfolio at June 30, 2025. Demand loans, loans having no stated repayment schedule or maturity, and overdraft loans are reported as being due in one year or less. Because the tables present contractual maturities and do not reflect repricing or the effect of prepayments, actual maturities may differ.

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Other <br> Construction and <br> land/land <br> development**  | **Commercial <br> real estate**  | **Agricultural <br> production**  | **Commercial <br> and industrial**  | **Municipal**  |
|  | **(In thousands)**  | **(In thousands)**  | **(In thousands)**  | **(In thousands)**  | **(In thousands)**  |
| Amounts due in: |  |  |  |  |  |
| One year or less  | $852 | $— | $10 | $811 | $— |
| After one year through two years  |  | **—** |  | 17 |  |
| After two years through three years  |  |  |  | 31 |  |
| After three years through five years  | 14 | 428 |  | 138 |  |
| After five years through 10 years  | 785 | 1621 |  | 115 | 49 |
| After 10 years through 15 years  | 91 | 2055 |  |  |  |
| After 15 years  |  | 317 |  |  |  |
| Total  | $1742 | $4421 | $10 | $1112 | $49 |

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Residential <br> construction**  | **Revolving, <br> open-end**  | **First liens**  | **Junior liens**  | **Consumer**  | **Total**  |
|  | **(In thousands)**  | **(In thousands)**  | **(In thousands)**  | **(In thousands)**  | **(In thousands)**  | **(In thousands)**  |
| Amounts due in: |  |  |  |  |  |  |
| One year or less  | $— | $**—** | $5 | $— | $121 | $1799 |
| After one year through two years  |  | **—** | 81 |  | 130 | 228 |
| After two years through three years  |  |  | 136 | 54 | 394 | 615 |
| After three years through five years  |  | 15 | 516 | 55 | 438 | 1604 |
| After five years through 10 years  |  | 126 | 2893 | 898 | 230 | 6717 |
| After 10 years through 15 years  |  |  | 10615 |  | 24 | 12785 |
| After 15 years  | 1225 | 2367 | 58966 |  |  | 62875 |
| Total  | $1225 | $2508 | $73212 | $1007 | $1337 | $86623 |

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The following table sets forth our fixed and adjustable-rate loans at June 30, 2025 that are contractually due after June 30, 2026.

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| | | | |
|:---|:---|:---|:---|
| | **Due After June 30, 2026**  | **Due After June 30, 2026**  | **Due After June 30, 2026**  |
| | **Fixed**  | **Adjustable**  | **Total**  |
|  | **(In thousands)**  | **(In thousands)**  | **(In thousands)**  |
| Commercial: |  |  |  |
| &nbsp;&nbsp;&nbsp; Other construction and land/land development  | $890 | $852 | $1742 |
| &nbsp;&nbsp;&nbsp; Farmland  |  |  |  |
| &nbsp;&nbsp;&nbsp; Commercial real estate  | 3078 | 1343 | 4421 |
| &nbsp;&nbsp;&nbsp; Agricultural production  | 10 |  | 10 |
| &nbsp;&nbsp;&nbsp; Commercial and industrial  | 227 | 885 | 1112 |
| &nbsp;&nbsp;&nbsp; Municipal  | 49 |  | 49 |
| Residential real estate: |  |  |  |
| &nbsp;&nbsp;&nbsp; Residential construction  | 1225 |  | 1225 |
| &nbsp;&nbsp;&nbsp; Revolving, open-end  |  | 2508 | 2508 |
| &nbsp;&nbsp;&nbsp; First liens  | 73212 |  | 73212 |
| &nbsp;&nbsp;&nbsp; Junior liens  | 1007 |  | 1007 |
| Consumer  | 1337 |  | 1337 |
| &nbsp;&nbsp;&nbsp; Total loans  | $81035 | $5588 | $86623 |

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***One- to Four-Family Residential Mortgage Lending***. Fixed-rate one- to four-family residential real estate loans total $74.2 million, as of June 30, 2025, making these loans the large majority of our loans at 85.7%. Fixed-rate one- to four-family residential real estate loans originated in the primary market area are generally underwritten to Fannie Mae secondary market standards. Pioneer Federal generally charges a modest premium on the interest rate compared to market competitors as the loans are not sold into the secondary market, allowing direct contact with the borrower over the life of the loan. Loans in this category vary, with terms of up to 30 years. Loan-to-value ("LTV") ratios on residential mortgage loans are limited to 80% of purchase price or appraised value, whichever is lower. Pioneer Federal does not offer or originate higher risk loans such as subprime loans on one- to four-family family property.

***HELOC***. Pioneer Federal originates HELOCs and home equity loans (revolving, open-end), which are generally made for owner-occupied homes, and are secured by first or second mortgages on residences. The balance of these loans was $2.5 million, or 2.9% of total loans as of June 30, 2025. HELOCs have a 10-year revolving period with a 20-year amortization term, as the customer has the option to extend the 10-year revolving period when each 10-year period is coming due. HELOCs are fixed-rate for first six months and then are indexed to the Wall Street Journal Prime Rate plus a 1.0% margin. A 0.125% rate

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reduction option is available for auto pay and the same rate reduction is offered if the deposit account is located at Pioneer Federal. The LTV ratio for home equity loans and lines of credit is generally up to 80%, taking into account any superior mortgage on the collateral property. HELOCs are generally underwritten in the same manner as Pioneer Federal's one- to four-family residential loans.

***Construction***. As of June 30, 2025, Pioneer Federal had $3.0 million in residential construction and other construction and land loans, equal to 3.4% of total loans. Pioneer Federal originates one-close construction/permanent loans, primarily to individuals for the construction of their primary residences and occasionally to contractors and builders of single-family homes. These loans combine the construction financing and the permanent mortgage into one closing, and after the construction period the loan converts to a permanent one-to four-family residential mortgage loan. Residential construction loans are underwritten to the same guidelines for permanent residential mortgage loans. Construction loans generally can be made with a maximum LTV ratio of 80% of the estimated appraised market value upon completion of the project. Pioneer Federal also originates a limited amount of land development loans to complement the construction lending activities, as such loans are generally secured by lots that will be used for residential development.

***Commercial***. Commercial real estate loans and commercial loans (including agriculture production and municipal loans) have not historically comprised a significant portion of our total loan portfolio. While we expect that one- to four-family residential real estate lending will continue to be the primary emphasis of our lending operations, we intend to modestly increase our emphasis on commercial real estate loans and commercial loans in an effort to increase loan portfolio yield.

Pioneer Federal's commercial loan portfolio consists of approximately 20 loans and had a principal balance of $5.6 million as of June 30, 2025, which is approximately 6.5% of our portfolio. As noted above, Pioneer Federal has not historically originated in-house commercial loans and instead has purchased loan participations of commercial loans (real estate and non-real estate) through purchase relationships with two Montana-based financial institutions. The commercial loans in portfolio are secured by both owner-occupied and non-owner-occupied properties, along with business related assets with essentially all loans secured by property within Montana. The commercial real estate and non-real estate loans (participations) are generally fixed rate for the first five years of the loan with an interest rate generally of the Wall Street Journal Prime Rate plus 1.0%. The interest rate adjusts every five years thereafter. Commercial real estate loans generally have terms up to 25 years. LTVs of commercial mortgage loans are generally limited to 75% of the purchase price or appraised value, whichever is lower.

***Consumer Loans***. At June 30, 2025, consumer loans totaled $1.3 million, or 1.6% of total loans. Our consumer loan portfolio generally consists of loans secured predominately by automobiles and trucks (new and used). Consumer loans have fixed interest rates and terms up to eight years with two isolated instances of terms of 15 and 31 years, with loan to value ratios generally up to 80% of invoice price (for new vehicles) or 75% of the lesser of National Automobile Dealers Association trade-in value (for used vehicles) or purchase price.

#### Loan Originations, Purchases and Sales
We originate loans through employee and director marketing and advertising efforts, our existing customer base, walk-in customers and referrals from customers.

We generally do not purchase loans, except for a participation interest in loans originated by other financial institutions acting as the lead lender. At June 30, 2025, our largest purchased participation interest had an outstanding balance of $1.0 million, representing a 31% participation interest in a $4.0 million commercial real estate loan secured by a Powell County medical center. At June 30, 2025 we also had a line of credit participation purchased with a maximum credit of $1.8 million, representing 2.2% participation interest in an $81.5 million loan, secured by government-backed accounts receivable. As of June 30, 2025, we are not aware of any participation interests for which the loan is nonperforming.

We generally originate loans for retention in our loan portfolio, allowing for continued direct contact with the borrower over the life of the loan. We historically have not sold loans off of our balance sheet. At June 30, 2025, we had no loans held-for-sale and $824,000 of loans serviced for others.

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#### Loan Underwriting Risks
***Commercial Real Estate Loans and Multi-family Real Estate Loans***. Loans secured by commercial real estate or multi-family properties generally have larger balances and involve a greater degree of risk than one- to four-family residential real estate loans. The primary concern in commercial real estate lending and multi-family lending is the borrower's creditworthiness and the feasibility and cash flow potential of the underlying business or multi-family property. To monitor cash flows on income properties, we require borrowers and loan guarantors to provide quarterly, semi-annual or annual financial statements, depending on the size and complexity of the commercial real estate loans. In case of loan participations, we request this information from the lead financial institution, if and to the extent called for in the loans. We generally require that the properties securing these real estate loans have an aggregate debt service ratio, including the guarantor's cash flows and the borrower's other projects, of at least 1.20x.

Although most of our commercial portfolio consists of loan participations, if we were to foreclose on a commercial real estate loan or a multi-family loan, the marketing and liquidation period to convert the real estate asset to cash can be lengthy with substantial holding costs. In addition, vacancies, deferred maintenance, repairs and market stigma can result in prospective buyers expecting sale price concessions to offset their real or perceived economic losses for the time it takes them to return the property to profitability. After significant increases in property values from 2019 to 2025 following the COVID-19 pandemic, we also expect property values to experience smaller relative increases going forward. Depending on the individual circumstances, initial charge-offs and subsequent losses on these loans can be unpredictable and substantial.

***Commercial Loans.*** Unlike residential real estate loans, which generally are made on the basis of the borrower's ability to make repayment from his or her employment or other income, and which are secured by real property whose value tends to be more easily ascertainable, commercial loans are of higher risk and typically are made on the basis of the borrower's ability to make repayment from the cash flows of the borrower's business, and the collateral securing these loans may fluctuate in value. Commercial loans originated in house or purchased loan participations are made primarily on the identified cash flows of the borrower and secondarily on the underlying collateral securing the debt. Collateral for commercial loans typically consists of real estate, equipment, accounts receivable, or inventory. Credit support provided by the borrower for most of these loans is based on the liquidation of the pledged collateral and enforcement of a personal guarantee, which we strive to acquire on all commercial loans. Further, any collateral securing such loans may depreciate over time, may be difficult to appraise and may fluctuate in value. As a result, the availability of funds for the repayment of commercial loans may depend substantially on the success of the business itself.

***Construction and Land Development Loans***. Our construction loans are based upon estimates of costs and values associated with the completed project. Underwriting is focused on the borrowers' financial strength, credit history and demonstrated ability to produce a quality product and effectively market and manage their operations.

Construction lending involves additional risks when compared to permanent lending. Funds are advanced upon the progress and security of the project, which is of uncertain value before its completion. Because of the uncertainties inherent in estimating construction costs, as well as the market value of the completed project and the effects of governmental regulation of real property, it is relatively difficult to evaluate accurately the total funds required to complete a project and the related loan-to-value ratio, in addition, generally during the term of a construction loan, interest may be funded by the borrower or disbursed from an interest reserve set aside from the construction loan budget. These loans often involve the disbursement of substantial funds with repayment substantially dependent on the success of the ultimate project and the ability of the borrower to sell or lease the property or obtain permanent take-out financing, rather than the ability of the borrower or guarantor to repay principal and interest. If the appraised value of a completed project proves to be overstated, we may have inadequate security for the repayment of the loan upon completion of construction of the project and may incur a loss. Land development loans have substantially similar risks.

***Consumer Loans***. Consumer loans may entail greater risk than residential real estate loans, particularly in the case of consumer loans that are unsecured or secured by assets that depreciate rapidly. Repossessed collateral for a defaulted consumer loan may not provide an adequate source of repayment for the outstanding

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loan and a small remaining deficiency often does not warrant further substantial collection efforts against the borrower. Consumer loan collections depend on the borrower's continuing financial stability and therefore are likely to be adversely affected by various factors, including job loss, divorce, illness or personal bankruptcy. Furthermore, the application of various federal and state laws, including federal and state bankruptcy and insolvency laws, may limit the amount that can be recovered on such loans.

#### Loan Approval Procedures and Authority
Our lending is subject to written, non-discriminatory underwriting standards and origination procedures. Decisions on loan applications are made on the basis of detailed applications submitted by the prospective borrower and property valuations. Our policies require that for all real estate loans that we originate, property valuations must be performed by outside independent state-licensed appraisers approved by our Board of Directors. The loan applications are designed primarily to determine the borrower's ability to repay the requested loan, and the more significant items on the application are verified through use of credit reports, financial statements and tax returns.

By law, the aggregate amount of loans that we are permitted to make to any one borrower or a group of related borrowers is generally limited to 20% of Pioneer Federal's unimpaired capital and surplus. At June 30, 2025, our largest credit relationship to one borrower had an outstanding balance of $1.9 million and is secured by real property. At June 30, 2025, this loan was performing according to its original terms.

We have a Directors Loan Committee, which consists of our President and Chief Executive Officer and elected Directors, and an Officers Loan Committee, which consists of the President and Chief Executive Officer, Credit Administration, and the vice presidents. The Directors Loan Committee has approval authority up to $625,000 depending on the loan type. The Officers Loan Committee has approval authority up to $500,000 depending on the loan type. Individual loan officers have approval authority up to $350,000 depending on the loan type. All loans that exceed the approval authority of the Directors Loan Committee are submitted to the Board of Directors for review and disposition.

Generally, we require property and extended coverage casualty insurance in amounts at least equal to the principal amount of the loan or the value of improvements on the property, depending on the type of loan. In addition, we require an escrow for flood insurance (where appropriate) and generally request an escrow for property taxes and insurance. We allow borrowers to pay their own taxes and property and casualty insurance as long as proof of payment is provided.

#### Delinquencies, Classified Assets and Nonperforming Assets
***Delinquencies***. As of June 30, 2025, there were $111,000 of non-accruing loans and no other real estate owned ("OREO") Managing credit risk is a priority for Pioneer Federal and it is expected that substantial effort and resources will continue to be committed for purposes of monitoring and evaluating credit risk exposure on an ongoing basis. The loan portfolio consists primarily of consumer lending products and therefore ongoing financial monitoring is limited to the review and monitoring of delinquency rates.

***Delinquency Procedures***. When a borrower becomes 17 days past due on a loan, we attempt to contact the borrower by mail. Phone calls are made, and delinquency letters are mailed to borrowers at specific delinquency intervals of 30, 45 and 90 days. Once the loan is considered in default, generally at 90 days past due, a letter is sent to the borrower explaining the total amount due to bring the loan current and ask for a payment plan, the loan is placed on non-accrual status, and additional efforts are made to contact the borrower. If the borrower does not respond, we generally initiate foreclosure proceedings when the loan is 120 days past due. If the loan is reinstated, foreclosure proceedings will be discontinued and the borrower will be permitted to continue to make payments, in certain instances, we may modify the loan to allow the borrower to reorganize his or her financial affairs. All delinquent loans are reported to the board of directors each month.

Commercial real estate and non-real estate loans are typically rated at the time of origination or purchase and reviewed at least annually or more regularly if warranted. Currently, many of the commercial loans are purchased from long-term participation partners. These commercial loans are reviewed by

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management along with the overall relationship with the participation partners. Any changes to risk ratings will be presented to the Board of Directors. Delinquent commercial loans are presented to the Board.

To track Pioneer Federal's asset quality and the adequacy of valuation allowances, Pioneer Federal has established asset classification policies and procedures which are consistent with regulatory guidelines. Asset classifications are reviewed by senior management and the Board, while delinquent loans are reviewed monthly. Pursuant to these procedures, when needed, Pioneer Federal establishes additional valuation allowances to cover anticipated losses in classified or non-classified assets.

Pioneer Federal maintains stringent collection policies and procedures to ensure the return of non-performing assets to earning status as quickly as possible. In cases where the borrower is willing to cooperate and implement a payment plan, Pioneer Federal may delay the decision to foreclose. Repayment schedules may be entered into with delinquent borrowers if management determines this resolution is more advantageous to Pioneer Federal.

In terms of Pioneer Federal's strategies to minimize OREO, Pioneer Federal generally tries to sell the property at a price that is no less than its net book value; however, Pioneer Federal will consider slight discounts to the appraised value to expedite the return of the asset to an earning status. Marketing of OREO generally involves listing the property for sale.

Pioneer Federal seeks to maintain OREO in good condition to enhance the marketability of the property. If and when we acquire real estate as a result of foreclosure or by deed in lieu of foreclosure, the real estate is classified as other real estate owned until it is sold. The real estate is recorded at estimated fair value at the date of acquisition, less estimated costs to sell, and any write-down resulting from the acquisition is charged to the allowance for credit losses. Subsequent decreases in the value of the property are charged to operations. After acquisition, all costs in maintaining the property are expensed as incurred. Costs relating to the development and improvement of the property, however, are capitalized to the extent of estimated fair value less estimated costs to sell. At June 30, 2025, we had no real estate acquired as a result of foreclosure or by deed in lieu of foreclosure.

***Loan Modifications to Borrowers Experiencing Financial Difficulty***. We occasionally modify loans to extend the term or make other concessions to help a borrower stay current on his or her loan and to avoid foreclosure. We consider modifications only after analyzing the borrower's current repayment capacity, evaluating the strength of any guarantors based on documented current financial information, and assessing the current value of any collateral pledged. We generally do not forgive principal or interest on loans, but may do so if it is in our best interest and increases the likelihood that we can collect the remaining principal balance. We may modify the terms of loans to lower interest rates (which may be at below market rates), to provide for fixed interest rates on loans where fixed rates are otherwise not available, to provide for longer amortization schedules, or to provide for interest-only terms. These modifications are made only when a workout plan has been agreed to by the borrower that we believe is reasonable and attainable and in our best interests. At June 30, 2025, we had no loans which were classified as loan modifications to borrowers experiencing financial difficulty.

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***Delinquent Loans***. The following table sets forth our loan delinquencies (including non-accrual loans), by type and amount, at June 30, 2025 and December 31, 2024 and 2023.

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| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | |  | | | **At December 31,**  | **At December 31,**  | **At December 31,**  | **At December 31,**  | **At December 31,**  | **At December 31,**  |
| | **At June 30, 2025**  | **At June 30, 2025**  | **At June 30, 2025**  | **At June 30, 2025**  | **2024**  | **2024**  | **2024**  | **2023**  | **2023**  | **2023**  |
| | **30 – 89 Days <br> Past Due**  | **90 Days or <br> More Past <br> Due**  | **90 Days or <br> More Past <br> Due**  | **Total**  | **30 – 89 Days <br> Past Due**  | **90 Days or <br> More Past <br> Due**  | **Total**  | **30 – 89 Days <br> Past Due**  | **90 Days or <br> More Past <br> Due**  | **Total**  |
|  | **(In thousands)**  | **(In thousands)**  | **(In thousands)**  | **(In thousands)**  | **(In thousands)**  | **(In thousands)**  | **(In thousands)**  | **(In thousands)**  | **(In thousands)**  | **(In thousands)**  |
| Commercial: |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Other construction <br> and land/land development  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Farmland  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Commercial real estate  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Agricultural production  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Commercial and industrial  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Municipal  |  |  |  |  |  |  |  |  |  |  |
| Residential real estate: |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Residential construction  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Revolving, open-end  |  |  |  |  | $30 |  | $30 |  |  |  |
| &nbsp;&nbsp;&nbsp; First liens  | $147 |  | $568 | $715 | 811 | $852 | 1663 | $583 |  | $583 |
| &nbsp;&nbsp;&nbsp; Junior liens  |  |  |  |  |  |  |  |  |  |  |
| Consumer  |  |  | 3 | 3 | 21 | 3 | 24 | 14 |  | 14 |
| &nbsp;&nbsp;&nbsp; Total loans  | $147 |  | $571 | $718 | $862 | $855 | $1717 | $597 |  | $597 |

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***Nonperforming Assets***. The following table sets forth information regarding our nonperforming assets at the dates indicated.

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| | | | |
|:---|:---|:---|:---|
| | **At June 30,**  | **At December 31,**  | **At December 31,**  |
| | **2025**  | **2024**  | **2023**  |
|  | **(Dollars in thousands)**  | **(Dollars in thousands)**  | **(Dollars in thousands)**  |
| Non-accrual loans: |  |  |  |
| Commercial: |  |  |  |
| &nbsp;&nbsp;&nbsp; Other construction and land/land development  |  |  |  |
| &nbsp;&nbsp;&nbsp; Farmland  |  |  |  |
| &nbsp;&nbsp;&nbsp; Commercial real estate  |  |  |  |
| &nbsp;&nbsp;&nbsp; Agricultural production  |  |  |  |
| &nbsp;&nbsp;&nbsp; Commercial and industrial  |  |  |  |
| &nbsp;&nbsp;&nbsp; Municipal  |  |  |  |
| Residential real estate: |  |  |  |
| &nbsp;&nbsp;&nbsp; Residential construction  |  |  |  |
| &nbsp;&nbsp;&nbsp; Revolving, open-end  |  |  |  |
| &nbsp;&nbsp;&nbsp; First liens  | $108 | $582 |  |
| &nbsp;&nbsp;&nbsp; Junior liens  |  |  |  |
| Consumer  | 3 | 3 |  |
| &nbsp;&nbsp;&nbsp; Total non-accrual loans  | $111 | $585 |  |

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| | | | |
|:---|:---|:---|:---|
| | **At June 30,**  | **At December 31,**  | **At December 31,**  |
| | **2025**  | **2024**  | **2023**  |
|  | **(Dollars in thousands)**  | **(Dollars in thousands)**  | **(Dollars in thousands)**  |
| Accruing loans past 30 – 89 days  | $147 | $862 | $597 |
| Accruing loans past due 90 days or more  | 460 | 270 |  |
| Total accruing past due loans  | $607 | $1132 | $597 |
| Real estate owned: |  |  |  |
| &nbsp;&nbsp;&nbsp; One- to four-family residential  |  |  |  |
| &nbsp;&nbsp;&nbsp; Multi-family  |  |  |  |
| &nbsp;&nbsp;&nbsp; Commercial  |  |  |  |
| &nbsp;&nbsp;&nbsp; Construction and land development  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total real estate owned  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total nonperforming assets  | $718 | $1717 | $597 |
| Total nonperforming loans to total loans  | 0.83% | 1.95% | 0.72% |
| Total non-accruing loans to total loans  | 0.13% | 0.67% |  |
| Total nonperforming assets to total assets  | 0.63% | 1.53% | 0.53% |

---

***Classified Assets***. Federal regulations provide that loans and other assets of lesser quality should be classified as "substandard," "doubtful" or "loss." An asset is considered "substandard" if it is inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. "Substandard" assets include those characterized by the "distinct possibility" that the insured institution will sustain "some loss" if the deficiencies are not corrected. Assets classified as "doubtful" have all of the weaknesses inherent in those classified "substandard," with the added characteristic that the weaknesses present make "collection or liquidation in full," on the basis of currently existing facts, conditions, and values, "highly questionable and improbable." Assets classified as "loss" are those considered "uncollectible" and of such little value that their continuance as assets without the establishment of a specific allowance for credit losses is not warranted. Assets that do not currently expose the insured institution to sufficient risk to warrant classification in one of the aforementioned categories but possess weaknesses are designated as "special mention." An institution's determination as to the classification of its assets and the amount of its valuation allowances is subject to review by the regulatory authorities, which may require the establishment of additional general or specific allowances.

In connection with the filing of our periodic regulatory reports and according to our classification of assets policy, we regularly review the problem loans in our portfolio to determine whether any loans require classification according to applicable regulations. If a problem loan deteriorates in asset quality, the classification is changed to "substandard," "doubtful" or "loss" depending on the circumstances and the evaluation. Generally, loans 90 days or more past due are placed on nonaccrual status and classified "substandard."

***Other Loans of Concern***. At June 30, 2025, except for loans included in the above table, there were no other loans of concern for which we had information about possible credit problems of borrowers that caused us to have serious doubts about the ability of the borrowers to comply with present loan repayment terms and that may result in disclosure of such loans in the future.

#### Allowance for Credit Losses
The allowance for credit losses is maintained at a level which, in management's judgment, is adequate to absorb expected credit losses in the loan portfolio. The amount of the allowance is based on management's evaluation of the collectability of the loan portfolio, including the nature of the portfolio, credit concentrations, trends in historical loss experience, individually evaluated loans, and economic conditions. Allowances for individually evaluated loans are generally determined based on collateral values or the present value of estimated cash flows. Because of uncertainties associated with regional economic conditions, collateral values, and future cash flows on individually evaluated loans, it is reasonably possible that

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management's estimate of expected credit losses inherent in the loan portfolio and the related allowance may change materially in the near-term. The allowance is increased by a provision for credit losses, which is charged to expense and reduced by full and partial charge-offs, net of recoveries. Changes in the allowance relating to individually evaluated loans are charged or credited to the provision for credit losses. Management's periodic evaluation of the adequacy of the allowance is based on various factors, including, but not limited to, management's ongoing review and grading of loans, facts and issues related to specific loans, historical loan loss and delinquency experience, trends in past due and non-accrual loans, existing risk characteristics of specific loans or loan pools, the fair value of underlying collateral, current economic conditions and other qualitative and quantitative factors which could affect potential credit losses.

Pioneer Federal utilizes the Weighted Average Remaining Maturity (WARM) method to estimate expected credit losses. The WARM method calculates an average annualized historical Net Charge-off (NCO) rate for a specific segment of a loan portfolio over a defined lookback period. The WARM factor represents the estimated remaining life of the loan portfolio segment, adjusted for scheduled amortization and estimated prepayments. Qualitative adjustments (Q factors) are incorporated to account for factors not captured by the historical data, such as current economic conditions and forecasts that might differ from historical trends. The ACL calculation is the average annual NCO rates multiplied by the estimated remaining life of the loan portfolio segment (WARM factor) and then adjusted by the Q-factors to arrive at the estimated ACL.

Pioneer Federal maintained an allowance for credit losses of $1,099,000, equal to 1.27% of loans receivable as of June 30, 2025.

As an integral part of their 18-month examination process, the FDIC and MDOB periodically review our allowance for credit losses, and as a result of such reviews, we may determine to adjust our allowance for credit losses. However, the FDIC and MDOB is not directly involved in the process for establishing the allowance for credit losses as the process is our responsibility and any increase or decrease in the allowance is the responsibility of management.

The following table sets forth activity in our allowance for credit losses for the periods indicated.

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| | | | | |
|:---|:---|:---|:---|:---|
| | **For the Six Months Ended June 30,**  | **For the Six Months Ended June 30,**  | **At or For the Years Ended <br> December 31,**  | **At or For the Years Ended <br> December 31,**  |
| | **2025**  | **2024**  | **2024**  | **2023**  |
|  | **(Dollars in thousands)**  | **(Dollars in thousands)**  | **(Dollars in thousands)**  | **(Dollars in thousands)**  |
| Allowance for credit losses at beginning of period  | $1208 | $1141 | $1141 | $1180 |
| Provision for (recovery of) credit losses  | (104) |  | 67 | 18 |
| CECL impact of adoption charged to equity<sup>(1)</sup>  |  |  |  | (57) |
| Charge-offs: |  |  |  |  |
| Commercial: |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Other construction and land/land development  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Farmland  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Commercial real estate  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Agricultural production  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Commercial and industrial  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Municipal  |  |  |  |  |

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| | | | | |
|:---|:---|:---|:---|:---|
| | **For the Six Months Ended June 30,**  | **For the Six Months Ended June 30,**  | **At or For the Years <br> Ended <br> December 31,**  | **At or For the Years <br> Ended <br> December 31,**  |
| | **2025**  | **2024**  | **2024**  | **2023**  |
|  | **(Dollars in thousands)**  | **(Dollars in thousands)**  | **(Dollars in thousands)**  | **(Dollars in thousands)**  |
| Residential real estate: |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Residential construction  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Revolving, open-end  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; First liens  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Junior liens  |  |  |  |  |
| Consumer  | 5 |  |  | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total charge-offs  | 5 |  |  | 1 |
| Recoveries: |  |  |  |  |
| Commercial: |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Other construction and land/land development  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Farmland  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Commercial real estate  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Agricultural production  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Commercial and industrial  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Municipal  |  |  |  |  |
| Residential real estate: |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Residential construction  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Revolving, open-end  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; First liens  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Junior liens  |  |  |  |  |
| Consumer  |  |  |  | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total recoveries  |  |  |  | 1 |
| Net (charge-offs) recoveries  | (5) |  |  |  |
| Allowance for credit losses at end of period  | 1099 | 1141 | 1208 | 1141 |
|  Allowance for credit losses as a percentage of nonperforming loans at end of period  | 153.03% | 94.68% | 70.37% | 191.06% |
|  Allowance for credit losses as a percentage of total loans outstanding at end of period  | 1.27% | 1.33% | 1.37% | 1.38% |
|  Net (charge-offs) recoveries as a percentage of average loans outstanding during period  | (0.01)% |  |  |  |

---

(1) The CECL impact of adoption charged to equity during 2023 was offset by the impact of adoption of $57 recorded to reserve for unfunded commitments, resulting in net $0 equity impact.

***Allocation of Allowance for Credit Losses***. The following tables set forth the allowance for credit losses allocated by loan category and the percent of the allowance in each category to the total allocated allowance at the dates indicated. The allowance for credit losses allocated to each category is not necessarily indicative of future losses in any particular category and does not restrict the use of the allowance to absorb losses in other categories.

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| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | | | | **At December 31,**  | **At December 31,**  | **At December 31,**  | **At December 31,**  | **At December 31,**  | **At December 31,**  |
| | **At June 30, 2025**  | **At June 30, 2025**  | **At June 30, 2025**  | **2024**  | **2024**  | **2024**  | **2023**  | **2023**  | **2023**  |
| | **Allowance <br> for Credit <br> Losses**  | **Percent of <br> Allowance <br> in Each <br> Category <br> to Total <br> Allocated <br> Allowance**  | **Percent of <br> Loans in <br> Each <br>Category <br>to Total <br>Loans**  | **Allowance <br> for Credit <br> Losses**  | **Percent of <br> Allowance <br> in Each <br> Category <br> to Total <br> Allocated <br> Allowance**  | **Percent of <br> Loans in <br> Each <br> Category to <br> Total Loans**  | **Allowance <br> for Credit <br> Losses**  | **Percent of <br> Allowance <br> in Each <br> Category <br> to Total <br> Allocated <br> Allowance**  | **Percent of <br> Loans in <br> Each <br>Category <br>to Total <br>Loans**  |
|  | **(Dollars in thousands)**  | **(Dollars in thousands)**  | **(Dollars in thousands)**  | **(Dollars in thousands)**  | **(Dollars in thousands)**  | **(Dollars in thousands)**  | **(Dollars in thousands)**  | **(Dollars in thousands)**  | **(Dollars in thousands)**  |
| Commercial: |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Other construction and land/land development  | $27 | 2.46% | 2.01% | $13 | 1.08% | 2.17% | $9 | 0.79% | 1.01% |
| &nbsp;&nbsp;&nbsp; Farmland  |  |  |  |  |  |  | 1 | 0.09% | 0.13% |
| &nbsp;&nbsp;&nbsp; Commercial real estate  | 16 | 1.46% | 5.10% | 36 | 2.98% | 4.76% | 25 | 2.19% | 3.53% |
| &nbsp;&nbsp;&nbsp; Agricultural production  | 9 | 0.82% | 0.01% |  |  | 0.02% |  |  | 0.03% |
| &nbsp;&nbsp;&nbsp; Commercial and industrial  | 5 | 0.45% | 1.28% | 14 | 1.16% | 1.72% | 31 | 2.72% | 3.16% |
| &nbsp;&nbsp;&nbsp; Municipal  |  |  | 0.06% |  |  | 0.06% |  |  | 0.07% |
| Residential real estate: |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Residential construction  | 950 | 86.44% | 1.41% | 41 | 3.39% | 2.64% | 56 | 4.91% | 1.85% |
| &nbsp;&nbsp;&nbsp; Revolving, open-end  | 51 | 4.64% | 2.90% | 33 | 2.73% | 2.00% | 28 | 2.45% | 1.84% |
| &nbsp;&nbsp;&nbsp; First liens  | 29 | 2.64% | 84.52% | 1058 | 87.58% | 84.46% | 982 | 86.06% | 86.68% |
| &nbsp;&nbsp;&nbsp; Junior liens  | 9 | 0.82% | 1.16% | 7 | 0.58% | 0.80% | 3 | 0.26% | 0.45% |
| Consumer  | 3 | 0.27% | 1.55% | 6 | 0.50% | 1.37% | 6 | 0.53% | 1.25% |
| Total allowance  | $1099 | 100.00% | 100.00% | $1208 | 100.00% | 100.00% | $1141 | 100.00% | 100.00% |

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Although we believe that we use the best information available to establish the allowance for credit losses, future adjustments to the allowance for credit losses may be necessary and results of operations could be adversely affected if circumstances differ substantially from the assumptions used in making the determinations. Because future events affecting borrowers and collateral cannot be predicted with certainty, the existing allowance for credit losses may not be adequate and management may determine that increases in the allowance are necessary if the quality of any portion of our loan portfolio deteriorates as a result. Furthermore, as an integral part of its examination process, the FDIC and MDOB will periodically review our allowance for credit losses. The FDIC and MDOB may have judgments different than those of management, and we may determine to increase our allowance as a result of these regulatory reviews. Any material increase in the allowance for credit losses may adversely affect our financial condition and results of operations.

#### Investment Activities
***General***. The goal of our investment policy is to maximize portfolio yield over the long term in a manner that is consistent with minimizing risk, meeting liquidity needs, meeting pledging requirements, and managing asset/liability management and interest rate risk strategies. Subject to loan demand and our interest rate risk analysis, we consider increases to the balance of our investment securities portfolio when we have excess liquidity.

Our investment policy was adopted by the board of directors and is reviewed annually by the board of directors. All investment decisions are made by our Asset/Liability Committee according to board-approved policies. An investment schedule detailing the investment portfolio is reviewed at least monthly by the board of directors.

Pioneer Federal invests in mortgage-backed securities ("MBS") as an investment strategy, with such securities totaling $6.3 million at June 30, 2025, of which $5.5 million, or 87%, were classified as available for sale. The MBS portfolio consists of pass-through securities issued by Ginnie Mae, Freddie Mac or Fannie

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Mae. Other types of securities in which Pioneer Federal invests include U.S. government agency securities totaling $1.1 million at June 30, 2025, and municipal securities totaling $3.9 million at June 30, 2025. Going forward, Pioneer Federal intends to maintain the existing securities in portfolio, allowing for repayments and prepayments of principal. No additional purchases of investment securities are currently planned, as funds are expected to be targeted towards Pioneer Federal's lending activities.

***Portfolio Maturities and Yields.*** The composition and maturities of the portfolio of investment securities available for sale at June 30, 2025 are summarized in the following table.

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| | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **One Year or Less**  | **One Year or Less**  | **More than One Year through <br> Five Years**  | **More than One Year through <br> Five Years**  | **More than Five Years through <br> Ten Years**  | **More than Five Years through <br> Ten Years**  | **More than Ten Years**  | **More than Ten Years**  | **Total**  | **Total**  | **Total**  |
| | **Amortized <br> Cost**  | **Weighted <br> Average <br> Yield**  | **Amortized <br> Cost**  | **Weighted <br> Average <br> Yield**  | **Amortized <br> Cost**  | **Weighted <br> Average <br> Yield**  | **Amortized <br> Cost**  | **Weighted <br> Average <br> Yield**  | **Amortized <br> Cost**  | **Fair <br> Value**  | **Weighted <br> Average <br> Yield**  |
|  | **(Dollars in thousands)**  | **(Dollars in thousands)**  | **(Dollars in thousands)**  | **(Dollars in thousands)**  | **(Dollars in thousands)**  | **(Dollars in thousands)**  | **(Dollars in thousands)**  | **(Dollars in thousands)**  | **(Dollars in thousands)**  | **(Dollars in thousands)**  | **(Dollars in thousands)**  |
|  U.S. government and agency securities  | $— |  | $1000 | 1.69% | $102 | 2.56% | $— |  | $1102 | $1030 | 1.77% |
|  Obligations of states and political subdivisions  | 100 | 2.07% | 1617 | 2.57% | 104 | 0.87% | 1194 | 2.52% | 3015 | 2890 | 2.47% |
| Mortgage-backed securities  |  |  |  |  |  |  | 5870 | 2.34% | 5870 | 5492 | 2.34% |
| Total  | $100 | 2.07% | $2617 | 2.23% | $206 | 1.71% | $7064 | 2.37% | $9987 | 9412 | 2.32% |

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The composition and maturities of the portfolio of investment securities held to maturity at June 30, 2025 are summarized in the following table.

---

| | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **One Year or <br> Less**  | **One Year or <br> Less**  | **More than One Year through <br> Five Years**  | **More than One Year through <br> Five Years**  | **More than Five Years through <br> Ten Years**  | **More than Five Years through <br> Ten Years**  | **More than Ten Years**  | **More than Ten Years**  | **Total**  | **Total**  | **Total**  |
| | **Amortized <br> Cost**  | **Weighted <br> Average <br> Yield**  | **Amortized <br> Cost**  | **Weighted <br> Average <br> Yield**  | **Amortized <br> Cost**  | **Weighted <br> Average <br> Yield**  | **Amortized <br> Cost**  | **Weighted <br> Average <br> Yield**  | **Amortized <br> Cost**  | **Fair <br> Value**  | **Weighted <br> Average <br> Yield**  |
|  | **(Dollars in thousands)**  | **(Dollars in thousands)**  | **(Dollars in thousands)**  | **(Dollars in thousands)**  | **(Dollars in thousands)**  | **(Dollars in thousands)**  | **(Dollars in thousands)**  | **(Dollars in thousands)**  | **(Dollars in thousands)**  | **(Dollars in thousands)**  | **(Dollars in thousands)**  |
|  U.S. government and agency securities  | $— |  | $— |  | $80 | 2.63% | $4 | 4.85% | $84 | $81 | 2.73% |
|  Obligations of states and political subdivisions  | 220 | 1.43% |  |  | 205 | 2.97% | 550 | 3.76% | 975 | 890 | 3.07% |
| Mortgage-backed securities  |  |  | 88 | 1.91% | 548 | 2.61% | 155 | 4.80% | 791 | 791 | 2.96% |
| Total  | $220 | 1.43% | $88 | 1.91% | $833 | 2.70% | $709 | 3.99% | $1850 | $1762 | 3.01% |

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For additional information regarding our investment securities portfolio, see Note 2 of the notes to the financial statements.

#### Sources of Funds
***General***. Deposits have traditionally been our primary source of funds for use in lending and investment activities. At June 30, 2025 deposits accounted for 91% of Pioneer Federal's combined balance of deposits and borrowings. Transaction and savings deposits totaled $56.2 million or 65.4% of total deposits at June 30, 2025. CDs comprise the remaining balance of Pioneer Federal's deposits. The deposit base does not contain any "wholesale" type deposits such as brokered, internet listing, or public unit deposits.

We may also use borrowings to supplement cash flow needs, lengthen the maturities of liabilities for interest rate risk purposes and to manage the cost of funds. In addition, we receive funds from scheduled loan payments, investment maturities, loan prepayments, retained earnings and income on earning assets. While scheduled loan payments and income on earning assets are relatively stable sources of funds, deposit inflows and outflows can vary widely and are influenced by prevailing interest rates, market conditions and levels of competition.

***Deposits***. Our deposits are generated primarily from our primary market area, and the large majority of Pioneer Federal's deposits are locally based. We offer a selection of deposit accounts, including savings

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accounts, checking accounts, certificates of deposit and individual retirement accounts. Deposit account terms vary, with the principal differences being the minimum balance required, the amount of time the funds must remain on deposit and the interest rate.

Interest rates paid, maturity terms, service fees and withdrawal penalties are established on a periodic basis. Deposit rates and terms are based primarily on current operating strategies and market rates, liquidity requirements, rates paid by competitors and growth goals. We rely upon personalized customer service, long-standing relationships with customers, and our favorable reputation in the community to attract and retain local deposits. We also seek to obtain deposits from our commercial loan customers, although, as noted, the majority of our commercial relationships consist of participation interests.

The flow of deposits is influenced significantly by general economic conditions, changes in money market and other prevailing interest rates and competition. The variety of deposit accounts offered allows us to be competitive in obtaining funds and responding to changes in consumer demand. Based on experience, we believe that our deposits are relatively stable. However, the ability to attract and maintain deposits and the rates paid on these deposits, has been and will continue to be significantly affected by market conditions.

The following table sets forth the distribution of total deposits, by account type, at the dates indicated.

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| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | | | | **At December 31,**  | **At December 31,**  | **At December 31,**  | **At December 31,**  | **At December 31,**  | **At December 31,**  |
| | **At June 30, 2025**  | **At June 30, 2025**  | **At June 30, 2025**  | **2024**  | **2024**  | **2024**  | **2023**  | **2023**  | **2023**  |
| | **Amount**  | **Percent**  | **Average <br> Rate**  | **Amount**  | **Percent**  | **Average <br> Rate**  | **Amount**  | **Percent**  | **Average <br> Rate**  |
|  | **(Dollars in Thousands)**  | **(Dollars in Thousands)**  | **(Dollars in Thousands)**  | **(Dollars in Thousands)**  | **(Dollars in Thousands)**  | **(Dollars in Thousands)**  | **(Dollars in Thousands)**  | **(Dollars in Thousands)**  | **(Dollars in Thousands)**  |
|  Noninterest-bearing demand <br> deposits  | $7140 | 8.3% |  | $6363 | 7.5% |  | $7233 | 8.4% |  |
| Regular savings deposits  | 26427 | 30.8% | 0.36% | 24596 | 28.9% | 0.75% | 24269 | 28.2% | 0.58% |
| NOW savings deposits  | 13125 | 15.3% | 0.10% | 12830 | 15.1% | 0.21% | 15195 | 17.6% | 0.19% |
| Money market deposits  | 9482 | 11.0% | 1.00% | 8623 | 10.1% | 2.11% | 9010 | 10.5% | 1.62% |
| Time deposits  | 29668 | 34.6% | 1.65% | 32678 | 38.4% | 3.30% | 30364 | 35.3% | 2.16% |
| Total  | $85842 | 100.0% | 0.81% | $85090 | 100.0% | 1.73% | 86071 | 100.0% | 1.13% |

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At June 30, 2025, December 31, 2024, and December 31, 2023, the aggregate amount of all uninsured deposits (deposits in excess of the Federal Deposit Insurance limit of $250,000) was $19.0 million, $17.6 million and $16.4 million, respectively. At June 30, 2025, December 31, 2024, and December 31, 2023, the aggregate amount of all uninsured time deposits was $6.5 million, $8.1 million and $6.2 million, respectively. At June 30, 2025, December 31, 2024, and December 31, 2023, we had no deposits that were uninsured for any reason other than being in excess of the FDIC limit.

The following table sets forth, by time remaining until maturity, the uninsured time deposits at June 30, 2025.

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| | |
|:---|:---|
| | **At June 30, 2025**  |
|  | **(In thousands)**  |
| **Maturity Period:** |  |
| &nbsp;&nbsp;&nbsp; Three months or less  | $1173 |
| &nbsp;&nbsp;&nbsp; Over three months through 6 months  | 2686 |
| &nbsp;&nbsp;&nbsp; Over six months through 12 months  | 2646 |
| &nbsp;&nbsp;&nbsp; Over 12 months  |  |
| &nbsp;&nbsp;&nbsp; Total  | $6505 |

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***Borrowings***. We may obtain advances from the FHLB upon the security of our capital stock in the FHLB and our one- to four-family residential real estate portfolio. We may utilize these advances for asset/ liability management purposes and for additional funding for our operations. Such advances may be made by

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the FHLB under several different credit programs, each of which has its own interest rate and range of maturities. As of June 30, 2025, Pioneer Federal's balance of borrowings totaled $8.0 million and consisted of a single FHLB advance with a maturity date of September 1, 2028 and a rate of 4.30%. A significant amount of this advance was used to finance the construction of a new main branch in Deer Lodge, Montana. At June 30, 2025, based on available collateral and our ownership of FHLB common stock, we had access to up to $37.7 million of additional advances.

#### Properties
At June 30, 2025, the net book value of our properties (including furniture, fixtures, improvements, and equipment) was $5.0 million. We operate from our main office located at 202 North Main Street, Deer Lodge, Montana (approximately 6,500 square feet), and a branch office located at 32 North Washington Street, Dillon, Montana (approximately 11,500 square feet), both of which we own and utilize as the sole occupant. Each location has an ATM and a drive-thru. We believe that our current facilities are adequate to meet our needs. We will continue to assess our facility requirements as necessary in connection with our potential growth into new markets.

#### Subsidiary Activities
Upon completion of the stock offering and conversion, Pioneer Federal will be succeeded by Pioneer State Bank, the sole and wholly-owned subsidiary of PSB Financial, Inc., a Maryland corporation. We do not contemplate having additional subsidiaries at Pioneer State Bank or PSB Financial at this time.

#### Legal Proceedings
We are not involved in any pending legal proceedings other than routine legal proceedings occurring in the ordinary course of business. At June 30, 2025, we were not involved in any legal proceedings the outcome of which we believe would be material to our financial condition or results of operations.

#### Expense and Tax Allocation Agreements
Upon the completion of the stock offering and conversion, Pioneer State Bank and PSB Financial will enter into an agreement for Pioneer State Bank to provide PSB Financial with certain administrative support services, including use of the premises, furniture, equipment and employees of Pioneer State Bank as needed in the conduct of PSB Financial's business. PSB Financial will compensate Pioneer State Bank in an amount not less than the fair market value of the services provided. In addition, upon the consummation of the stock offering and conversion, PSB Financial and Pioneer State Bank will enter into an agreement to establish a method for allocating and reimbursing the payment of their consolidated federal and state tax liabilities as well as any local tax liabilities.

#### Employees
At June 30, 2025, we had 21 full-time employees and no part-time employees. Our employees are not represented by a collective bargaining group. Management believes that we have a good working relationship with our employees and extensively uses an "open door" policy of management.

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#### REGULATION AND SUPERVISION

#### General
Depository institutions and their holding companies are extensively regulated under federal and state law. As a result, the growth and earnings performance of PSB Financial and Pioneer State Bank may be affected not only by management decisions and general economic conditions, but also by the requirements of applicable state and federal statutes and regulations and the policies of various governmental regulatory authorities, including the MDOB, the Federal Reserve Board, the FDIC, the Internal Revenue Service and state taxing authorities. The effect of applicable statutes, regulations and regulatory policies can be significant, and cannot be predicted with a high degree of certainty.

Federal and state laws and regulations generally applicable to depository institutions and their holding companies regulate, among other things, the scope of business, investments, activities, reserves against deposits, capital levels relative to operations, the nature and amount of collateral for loans, loan concentrations, the establishment of branches, mergers, consolidations and dividends. The system of supervision and regulation applicable to Pioneer Federal, PSB Financial and Pioneer State Bank, along with any direct or indirect subsidiaries that we organize in the future, establishes a comprehensive framework for their respective operations and is intended primarily for the protection of the FDIC's deposit insurance fund and the bank's insured depositors, rather than the shareholders of financial institutions and their holding companies.

The following is a summary of the material elements of the regulatory framework that applies to Pioneer Federal and will apply to PSB Financial and Pioneer State Bank. It does not describe all of the statutes, regulations and regulatory policies that apply to those entities, nor does it restate all of the requirements of the statutes, regulations and regulatory policies that are described. As such, the following is qualified in its entirety by reference to the applicable statutes, regulations and regulatory policies. Any change in applicable law, regulations or regulatory policies may have a material effect on the future operations and financial performance of PSB Financial and Pioneer State Bank.

#### PSB Financial
***General.*** Upon completion of the stock offering and the conversion, PSB Financial will be a bank holding company subject to regulation and supervision by the Federal Reserve Board under the Bank Holding Company of 1956, as amended (the "BHCA"). The Federal Reserve Board will have enforcement authority over PSB Financial and any non-bank subsidiaries, if any. Among other things, this authority permits the Federal Reserve Board to restrict or prohibit activities that are determined to be a risk to a bank holding company's banking subsidiaries or would otherwise interfere with PSB Financial's ability to serve as a source of strength for its banking subsidiary. PSB Financial will also be subject to the rules and regulations of the SEC under the federal securities laws. PSB Financial will not have any non-bank subsidiaries upon completion of the stock offering and the conversion.

A bank holding company is a legal entity separate and distinct from its subsidiary banks. Normally, the major source of a bank holding company's revenue is dividends it receives from its subsidiary banks. The right of a bank holding company to participate as a shareholder in any distribution of assets of its subsidiary banks upon their liquidation or reorganization or otherwise is subject to the prior claims of creditors of such subsidiary banks. The subsidiary banks are subject to claims by creditors for long-term and short-term debt obligations, including obligations for Federal funds purchased and securities sold under repurchase agreements, as well as deposit liabilities. Under the Financial Institutions Reform, Recovery and Enforcement Act of 1989, in the event of a loss suffered by the FDIC in connection with a banking subsidiary of a bank holding company (whether due to a default or the provision of FDIC assistance), other banking subsidiaries (if any) of the holding company could be assessed for such loss.

***Investments and Activities*.** Under the BHCA, a bank holding company must obtain Federal Reserve Board approval before: (i) acquiring, directly or indirectly, ownership or control of any voting shares of another bank or bank holding company if, after the acquisition, it would own or control more than 5% of the shares of the other bank or bank holding company (unless it already owns or controls the majority of such shares); (ii) acquiring all or substantially all of the assets of another bank; or (iii) merging or consolidating with another bank holding company. Subject to certain conditions (including certain deposit concentration

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limits established by the BHCA), the Federal Reserve Board may allow a bank holding company to acquire banks located in any state of the United States without regard to whether the acquisition is prohibited by the law of the state in which the target bank is located. In approving interstate acquisitions, however, the Federal Reserve Board is required to give effect to applicable state law limitations on the aggregate amount of deposits that may be held by the acquiring bank holding company and its insured depository institution affiliates in the state in which the target bank is located (provided that those limits do not discriminate against out-of-state depository institutions or their holding companies) and state laws which require that the target bank has been in existence for a minimum period of time (not to exceed five years) before being acquired by an out-of-state bank holding company.

As a bank holding company, PSB Financial's activities will be limited to those activities permissible by law for bank holding companies. The BHCA generally prohibits a bank holding company from acquiring direct or indirect ownership or control of more than 5% of the voting shares of any company that is not a bank and from engaging in any business other than that of banking, managing and controlling banks or furnishing services to banks and their subsidiaries. This general prohibition is subject to a number of exceptions. The principal exception allows bank holding companies to engage in, and to own shares of companies engaged in, certain businesses found by the Federal Reserve Board to be "so closely related to banking … as to be a proper incident thereto." Under current regulations of the Federal Reserve Board, bank holding companies and their subsidiary banks are permitted to engage in a variety of banking-related businesses, including the operation of a thrift, consumer finance, equipment leasing, the operation of a computer service bureau (including software development), and mortgage banking and brokerage. The BHCA generally does not place territorial restrictions on the domestic activities of non-bank subsidiaries of bank holding companies.

Under the Gramm-Leach-Bliley Act (the "GLB Act"), bank holding companies that meet certain standards and elect to become "financial holding companies" are permitted to engage in a wider range of activities than those permitted to bank holding companies, including securities and insurance activities. Specifically, a bank holding company that elects to become a financial holding company may engage in any activity that the Federal Reserve Board, in consultation with the Secretary of the Treasury, determines is (i) financial in nature or incidental thereto, or (ii) complementary to any such financial-in-nature activity, provided that such complementary activity does not pose a substantial risk to the safety and soundness of depository institutions or the financial system generally. A bank holding company may elect to become a financial holding company only if each of its depository institution subsidiaries is well-capitalized, well-managed, and has a Community Reinvestment Act rating of "satisfactory" or better at their most recent examination. PSB Financial currently does not intend to elect to be treated as a financial holding company.

The GLB Act specifies many activities that are financial in nature, including lending, exchanging, transferring, investing for others, or safeguarding money or securities; underwriting and selling insurance; providing financial, investment or economic advisory services; underwriting, dealing in, or making a market in securities; and those activities permitted for bank holding companies that are so closely related to banking or managing or controlling banks, as to be a proper incident thereto.

The GLB Act changed federal laws to facilitate affiliation between banks and entities engaged in securities and insurance activities. The law also established a system of functional regulation under which banking activities, securities activities, and insurance activities conducted by financial holding companies and their subsidiaries and affiliates will be separately regulated by banking, securities, and insurance regulators, respectively.

Federal law also prohibits any person or company from acquiring "control" of a bank or bank holding company without prior notice to the appropriate federal bank regulator. "Control" is defined in certain cases as the acquisition of 10% of the outstanding shares of a bank or bank holding company.

***Regulatory Capital Requirements*.** Bank holding companies are required to maintain minimum levels of capital in accordance with Federal Reserve Board capital adequacy guidelines, which are substantially similar to those of the FDIC for Pioneer Federal and Pioneer State Bank. If capital falls below minimum guideline levels, a bank holding company, among other things, may be denied approval to acquire or establish additional banks or non-bank businesses or engage in new activities. Certain bank holding companies with consolidated total assets under $3 billion, however, are exempt from these minimum capital requirements

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under the Federal Reserve Board's Small Bank Holding Company Policy Statement. Because PSB Financial will have consolidated total assets of less than $3 billion, it will be exempt from such minimum capital requirements.

***Dividends.*** The Montana Business Corporation Act prohibits PSB Financial from paying dividends or making other distributions to shareholders, if after giving effect to the dividend or other distribution, the company would not be able to pay its debts as they become due in the usual course of business or if the company's assets would be less than the sum of its total liabilities plus the amount that would be needed upon dissolution of the company to satisfy preferential rights of shareholders whose preferential rights are superior to those receiving the dividend or other distribution.

Additionally, the Federal Reserve Board has issued a policy statement with regard to the payment of cash dividends by bank holding companies. The policy statement provides that a bank holding company should not pay cash dividends which exceed its net income or which can only be funded in ways that weaken the bank holding company's financial health, such as by borrowing. The Federal Reserve Board also possesses enforcement powers over bank holding companies and their non-bank subsidiaries to prevent or remedy actions that represent unsafe or unsound practices or violations of applicable statutes and regulations. Among these powers is the ability to proscribe the payment of dividends by banks and bank holding companies. This policy statement also states that a holding company should inform the Federal Reserve Board supervisory staff before redeeming or repurchasing common stock or perpetual preferred stock if the holding company is experiencing financial weaknesses or if the repurchase or redemption would result in a net reduction, at the end of a quarter, in the amount of such equity instruments outstanding compared with the beginning of the quarter in which the redemption or repurchase occurred. These regulatory policies may affect the ability of PSB Financial to pay dividends, repurchase shares of common stock or otherwise engage in capital distributions.

#### Pioneer State Bank
***General*.** As part of the conversion, Pioneer Federal will merge with and into a newly chartered Montana state-chartered bank to be known as "Pioneer State Bank." Pioneer State Bank will succeed to all of the rights, obligations, duties and liabilities of Pioneer Federal, and all banking operations previously conducted by Pioneer Federal will be conducted through Pioneer State Bank. As a Montana state-chartered bank, Pioneer State Bank will be subject to examination and regulation by the MDOB, as its chartering authority, and is also subject to examination by the FDIC, its primary federal regulator and deposit insurer. The Federal Deposit Insurance Act establishes a comprehensive framework of activities in which an institution may engage and is intended primarily for the protection of the FDIC's deposit insurance fund and insured depositors, and not for the protection of security holders.

Under this system of regulation, the regulatory authorities have extensive discretion in connection with their supervisory, enforcement, rulemaking and examination activities and policies, including rules or policies that: establish minimum capital levels; restrict the timing and amount of payments; govern the classification of assets; determine the adequacy of loan loss reserves for regulatory purposes; and establish the timing and amounts of assessments and fees. Moreover, as part of their examination authority, the banking regulators assign numerical ratings to banks and savings institutions relating to capital, asset quality, management, liquidity, earnings and other factors. The receipt of a less than satisfactory rating in one or more categories may result in enforcement action by the banking regulators against a financial institution. A less than satisfactory rating may also prevent a financial institution, such as Pioneer State Bank, from obtaining necessary regulatory approvals to access the capital markets, pay dividends, acquire other financial institutions or establish new branches.

In addition, Pioneer State Bank must comply with significant anti-money laundering and anti-terrorism laws and regulations, Community Reinvestment Act laws and regulations, fair lending laws and regulations, and other consumer financial protection laws and regulations. Government agencies have the authority to impose monetary penalties and other sanctions on institutions that fail to comply with these laws and regulations, which could significantly affect our business activities, including our ability to acquire other financial institutions or expand our branch network.

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***Interstate Banking and Branching*.** Under the Montana Bank Act, Pioneer State Bank may open branch offices throughout Montana with the prior approval of the MDOB. In addition, with prior regulatory approval, Pioneer State Bank may acquire branches of existing banks located in Montana. With the passage of the Dodd-Frank Act in 2010, certain interstate branching restrictions were eliminated. The Dodd-Frank Reform Act provides that, subject to the approval authority of the applicable federal bank regulatory authority and any relevant state regulatory authority, a bank may establish *de novo* branches in states other than its home state if the law in the state in which the proposed branch will be located would permit establishment of that branch by a bank chartered in the target state. In other words, if branching within a state is permitted for banks located within that state, then branching into that state by banks located outside of that state is also permitted, subject to the applicable regulatory review and approval process. As a federally insured Montana state-chartered institution, Pioneer State Bank would require the prior approval of the FDIC, the MDOB, and the state banking regulator of the target state to establish branch locations in a state other than Montana. Federal law permits well capitalized and well managed holding companies to acquire banks in any state, subject to Federal Reserve Board approval, the nonobjection by the U.S. Department of Justice, certain concentration limits and other specified conditions. Interstate mergers of banks are also authorized, subject to regulatory approval and other specified conditions.

***Loans to One Borrower*.** Under the Montana Bank Act, Pioneer State Bank's total loans and extensions of credit and leases to one person will be limited to 20% of Pioneer State Bank's capital and surplus, subject to several exceptions — the same requirement currently applicable to Pioneer Federal.

***Enforcement*.** The MDOB and the FDIC each have enforcement authority with respect to Pioneer State Bank. The MDOB has the authority to issue consent orders to address unsafe and unsound practices and actual or immanent violations of law and to remove from office bank directors and officers who engage in unsafe and unsound banking practices and who violate applicable laws, orders, or rules. The MDOB also has authority in certain cases to take steps for the appointment of a receiver or conservator of a bank.

The FDIC has similar broad authority, including authority to bring enforcement actions against all "institution-affiliated parties." The Financial Institution Reform Recovery and Enforcement Act ("FIRREA") expanded and increased civil and criminal penalties available for use by the federal regulatory agencies against depository institutions and certain "institution-affiliated parties." Institution-affiliated parties primarily include management, employees, and agents of a financial institution, as well as independent contractors and consultants such as attorneys, accountants, and others who participate in the conduct of the financial institution's affairs. These practices can include the failure of an institution to timely file required reports or the filing of false or misleading information or the submission of inaccurate reports. These failures can result in substantial civil and criminal penalties. In addition, regulators are provided with greater flexibility to commence enforcement actions against institutions and institution-affiliated parties. Possible enforcement actions include the termination of deposit insurance. Furthermore, banking agencies' power to issue regulatory orders were expanded. Such orders may, among other things, require affirmative action to correct any harm resulting from a violation or practice, including restitution, reimbursement, indemnifications or guarantees against loss. A financial institution may also be ordered to restrict its growth, dispose of certain assets, rescind agreements or contracts, or take other actions as determined by the ordering agency to be appropriate.

***Regulatory Capital Requirements*.** Federal regulations require federally insured depository institutions to meet several minimum capital standards: a common equity Tier 1 capital-to-risk-weighted-assets ratio of 4.5%, a Tier 1 capital to risk-weighted assets ratio of 6.0%, a total capital to risk-weighted assets of 8.0%, and a 4.0% Tier 1 capital to adjusted average total assets leverage ratio.

Common equity Tier 1 capital is generally defined as common stockholders' equity and retained earnings. Tier 1 capital is generally defined as common equity Tier 1 and additional Tier 1 capital. Additional Tier 1 capital includes certain noncumulative perpetual preferred stock and related surplus and minority interests in equity accounts of consolidated subsidiaries. Total capital includes Tier 1 capital (common equity Tier 1 capital plus additional Tier 1 capital) and Tier 2 capital. Tier 2 capital is comprised of capital instruments and related surplus, meeting specified requirements, and may include cumulative preferred stock and long-term perpetual preferred stock, mandatory convertible securities, intermediate preferred stock and subordinated debt. Also included in Tier 2 capital is the allowance for credit losses limited to a maximum of 1.25% of risk-weighted assets and, for institutions that have exercised an opt-out election regarding

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the treatment of Accumulated Other Comprehensive Income (Loss) ("AOCI"), up to 45% of net unrealized gains on investment securities available for sale with readily determinable fair market values. Institutions that have not exercised the AOCI opt-out have AOCI incorporated into common equity Tier 1 capital (including unrealized gains and losses on available-for-sale-securities). Pioneer Federal exercised its AOCI opt-out election, and we anticipate that Pioneer State Bank will do the same. Calculation of all types of regulatory capital is subject to deductions and adjustments specified in the regulations.

In determining the amount of risk-weighted assets for purposes of calculating risk-based capital ratios, all assets, including certain off-balance sheet assets (*e.g*., recourse obligations, direct credit substitutes, residual interests) are multiplied by a risk weight factor assigned by the regulations based on the risks believed inherent in the type of asset. Higher levels of capital are required for asset categories believed to present greater risk. For example, a risk weight of 0% is assigned to cash and U.S. government securities, a risk weight of 50% is generally assigned to prudently underwritten first lien one- to four-family residential real estate loans, a risk weight of 100% is assigned to commercial and consumer loans, a risk weight of 150% is assigned to certain past due loans and a risk weight of between 0% to 600% is assigned to permissible equity interests, depending on certain specified factors.

In addition to establishing the minimum regulatory capital requirements, the regulations limit capital distributions and certain discretionary bonus payments to management if the institution does not hold a "capital conservation buffer" consisting of 2.5% of common equity Tier 1 capital to risk-weighted assets above the amount necessary to meet its minimum risk-based capital requirements.

In assessing an institution's capital adequacy, the FDIC takes into consideration, not only these numeric factors, but qualitative factors as well, including the bank's exposure to interest rate risk. The FDIC has the authority to establish higher capital requirements for individual institutions as deemed necessary due to a determination that an institution's capital level is, or is likely to become, inadequate in light of particular circumstances.

The Economic Growth, Regulatory Relief and Consumer Protection Act required the federal banking agencies, including the FDIC, to establish for institutions with assets of less than $10 billion a "Community Bank Leverage Ratio" of between 8 to 10%. Institutions with capital meeting or exceeding the ratio and otherwise complying with the specified requirements (including off-balance sheet exposures of 25% or less of total assets and trading assets and liabilities of 5% or less of total assets) and electing the alternative framework are considered to comply with the applicable regulatory capital requirements.

The Community Bank Leverage Ratio has been established at 9% Tier 1 capital to total average assets. A qualifying institution may opt in and out of the Community Bank Leverage Ratio framework on its quarterly call report. An institution that temporarily ceases to meet any qualifying criteria is provided a two-quarter grace period to again achieve compliance. Failure to meet the qualifying criteria within the grace period or maintain a leverage ratio of 8% or greater requires the institution to comply with the generally applicable capital requirements. Pioneer Federal elected to use the Community Bank Leverage Ratio, and as of June 30, 2025, its Tier 1 capital to total average assets ratio was 17.00%. We anticipate that Pioneer State Bank will also elect to use the Community Bank Leverage Ratio.

Failure to meet capital guidelines could subject a bank to a variety of enforcement remedies, including issuance of a capital directive, the termination of deposit insurance by the FDIC, a prohibition on accepting brokered deposits, and certain other restrictions on its business. As described in *"*Prompt Corrective Regulatory Action" below, significant additional restrictions can be imposed on FDIC-insured depository institutions that fail to meet applicable capital requirements.

***Prompt Corrective Regulatory Action*.** The Federal Deposit Insurance Corporation Improvement Act of 1991 establishes a system of prompt corrective action to resolve the problems of undercapitalized financial institutions. Under this system, the federal banking regulators have established five capital categories in which all institutions are placed: Well-Capitalized, Adequately Capitalized, Undercapitalized, Significantly Undercapitalized and Critically Undercapitalized.

As the capital condition deteriorates, federal banking regulators are required to take various mandatory supervisory actions and are authorized to take other discretionary actions with respect to institutions in the three undercapitalized categories. The severity of the action depends upon the capital category in which

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the institution is placed. Generally, subject to a narrow exception, the banking regulator must appoint a receiver or conservator for an institution that is critically undercapitalized.

A "well-capitalized" bank is currently defined as one that significantly exceeds all of its required capital requirements, which include maintaining a total risk-based capital ratio of at least 10%, a Tier 1 risk-based capital ratio of at least 8%, a common equity Tier 1 risk-based capital ratio of at least 6.5%, and a Tier 1 leverage ratio of at least 5%. Well-capitalized banks must not be subject to any formal regulatory order or directive relating to their capital levels.

Generally, a classification as "well-capitalized" will place a bank outside of the regulatory zone for purposes of prompt corrective action. However, a well-capitalized bank may be reclassified as "adequately capitalized" based on criteria other than capital if the federal regulator determines that a bank is in an unsafe or unsound condition or is engaged in unsafe or unsound practices and has not corrected the deficiency.

As of June 30, 2025, Pioneer Federal was considered "well-capitalized" in accordance with regulatory capital requirements, and following the merger of Pioneer Federal with and into the newly formed Pioneer State Bank, Pioneer State Bank, as the successor in interest, will be "well-capitalized" in accordance with regulatory capital requirements.

Federal law and regulations also specify circumstances under which a federal banking agency may reclassify a well-capitalized institution as adequately capitalized and may require an institution classified as less than well capitalized to comply with supervisory actions as if it were in the next lower category (except that the FDIC may not reclassify a significantly undercapitalized institution as critically undercapitalized).

The FDIC may order banks that have insufficient capital to take corrective actions. For example, a bank that is categorized as "undercapitalized" is subject to growth limitations and is required to submit a capital restoration plan, and a holding company that controls such a bank is required to guarantee that the bank complies with the restoration plan. A "significantly undercapitalized" bank may be subject to additional restrictions. Banks deemed by the FDIC to be "critically undercapitalized" would be subject to the appointment of a receiver or conservator.

***Deposit Insurance*.** Pioneer Federal's deposits are insured, and following the merger with Pioneer State Bank, the deposits will continue to be insured, by the Deposit Insurance Fund (the "DIF") of the FDIC up to the maximum amount permitted by law, which was permanently increased under the Dodd-Frank Act to $250,000 per depositor for each account ownership category (as further detailed in applicable FDIC regulations). The FDIC uses the DIF to protect against the loss of insured deposits if an FDIC-insured bank or savings association fails. The deposit insurance assessment is equal to the bank's average total assets minus average tangible equity, pursuant to a rule issued by the FDIC as required by the Dodd-Frank Act.

The Federal Deposit Insurance Act, as amended by the Federal Deposit Insurance Reform Act and the Dodd-Frank Act, requires the FDIC to set a ratio of deposit insurance reserves to estimated insured deposits of at least 1.35%. The FDIC utilizes a risk-based assessment system that imposes insurance premiums based upon a risk matrix that takes into account a bank's capital level and supervisory rating. Deposit insurance assessments for banks with less than $10 billion in assets are assessed based upon a standardized statistical formula designed to predict the likelihood of failure over the following three years. Factors include, but are not limited to, capital ratios, growth rates and loan portfolio composition.

***Community Reinvestment Act.*** Under the Community Reinvestment Act, and its related regulations, all banks and thrifts have a continuing and affirmative obligation, consistent with safe and sound operation, to help meet the credit needs for their entire communities, including low — and moderate-income neighborhoods. These facts are also considered in evaluating mergers, acquisitions, and applications to open a branch or facility. Failure to adequately meet these criteria could impose additional requirements and limitations on Pioneer State Bank. The CRA requires a depository institution's primary federal regulator, in connection with its examination of the institution or its evaluation of certain regulatory applications, to assess the institution's record in assessing and meeting the credit needs of the community served by that institution, including low- and moderate-income neighborhoods. The regulatory agency's assessment of the institution's record is made available to the public. Additionally, we must publicly disclose the terms of various Community Reinvestment Act-related agreements. Current CRA regulations rate institutions based

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on their actual performance in meeting community credit needs. Following the most recent CRA examination, which was completed on October 30, 2023, Pioneer Federal received a "Satisfactory" rating.

***Current Expected Credit Loss Treatment.*** Pioneer Federal uses, and Pioneer State Bank will use, a CECL model to estimate the allowance for credit losses on securities held to maturity. The CECL model considers historical loss rates and other qualitative adjustments, as well as a forward-looking component that considers reasonable and supportable forecasts over the expected life of each security.

***Commercial Real Estate Lending.*** Pioneer State Bank's lending operations may be subject to enhanced scrutiny by federal banking regulators based on its concentration of commercial real estate loans. On January 12, 2006, the federal banking regulators issued final guidance to remind financial institutions of the risk posed by commercial real estate ("CRE") lending concentrations. CRE loans generally include land development, construction loans, and loans secured by multifamily property, and nonfarm, nonresidential real property where the primary source of repayment is derived from rental income associated with the property. The guidance prescribes guidelines for its examiners to help identify institutions that are potentially exposed to significant CRE risk and may warrant greater supervisory scrutiny.

***Privacy.*** Financial institutions are required to disclose their policies for collecting and protecting confidential information. Customers generally may prevent financial institutions from sharing nonpublic personal financial information with nonaffiliated third parties except under narrow circumstances, such as the processing of transactions requested by the consumer or when the financial institution is jointly sponsoring a product or service with a nonaffiliated third party. Additionally, financial institutions generally may not disclose consumer account numbers to any nonaffiliated third party for use in telemarketing, direct-mail marketing or other marketing to consumers.

***The Dodd-Frank Act.*** The Dodd-Frank Act has had a broad impact on the financial services industry, including significant regulatory and compliance changes previously discussed and including, among other things, (1) enhanced resolution authority of troubled and failing banks and their holding companies; (2) increased regulatory examination fees; and (3) numerous other provisions designed to improve supervision and oversight of, and strengthening safety and soundness for, the financial services sector. Additionally, the Dodd-Frank Act established a new framework for systemic risk oversight within the financial system to be distributed among new and existing federal regulatory agencies, including the Financial Stability Oversight Council, the Federal Reserve Board and the FDIC.

***USA Patriot Act***. Pioneer Federal is, and Pioneer State Bank will be, subject to the USA PATRIOT Act, which gives federal agencies additional powers to address terrorist threats through enhanced domestic security measures, expanded surveillance powers, increased information sharing, and broadened anti-money laundering requirements. The USA PATRIOT Act contains provisions intended to encourage information sharing among bank regulatory agencies and law enforcement bodies and imposes affirmative obligations on financial institutions, such as enhanced recordkeeping and customer identification requirements.

***The Consumer Financial Protection Bureau.*** The Dodd-Frank Act created a new, independent federal agency, the Consumer Financial Protection Bureau (the "CFPB"), which was granted broad rulemaking, supervisory and enforcement powers under various federal consumer financial protection laws, including the laws referenced above, fair lending laws, and certain other statutes.

The CFPB has examination and primary enforcement authority with respect to compliance with federal consumer financial protection laws for depository institutions with $10 billion or more in assets, their service providers and certain non-depository entities such as debt collectors and consumer reporting agencies. Although Pioneer State Bank will have less than $10 billion in assets, the impact of the formation of the CFPB has placed a renewed focus on consumer protection and compliance efforts. For examples of this new authority, the CFPB has authority to prevent unfair, deceptive or abusive practices in connection with the offering of consumer financial products. The Dodd-Frank Act authorizes the CFPB to establish certain minimum standards for the origination of residential mortgages including a determination of the borrower's ability to repay. In addition, the Dodd-Frank Act allows borrowers to raise certain defenses to foreclosure if they receive any loan other than a "qualified mortgage" as defined by the CFPB. The Dodd-Frank Act permits states to adopt consumer protection laws and standards that are more stringent than those adopted at the federal level and, in certain circumstances, permits state attorneys general to enforce compliance with both the state and federal laws and regulations.

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The CFPB has concentrated much of its rulemaking efforts on a variety of mortgage-related topics required under the Dodd-Frank Act, including mortgage origination disclosures, minimum underwriting standards and ability to repay, high-cost mortgage lending, and servicing practices. We continue to analyze the impact that such rules may have on our business model, particularly with respect to our mortgage banking business.

***UDAP and UDAAP.*** Recently, banking regulatory agencies have increasingly used a general consumer protection statute to address "unethical" or otherwise "bad" business practices that may not necessarily fall directly under the purview of a specific banking or consumer finance law. The law of choice for enforcement against such business practices has been Section 5 of the Federal Trade Commission Act — the primary federal law that prohibits unfair or deceptive acts or practices and unfair methods of competition in or affecting commerce, or UDAP or the FTC Act. "Unjustified consumer injury" is the principal focus of the FTC Act. Prior to the Dodd-Frank Act, there was little formal guidance to provide insight to the parameters for compliance with the UDAP law. However, the UDAP provisions have been expanded under the Dodd-Frank Act to apply to "unfair, deceptive or abusive acts or practices," or UDAAP, which has been delegated to the CFPB for supervision. The CFPB has published its first Supervision and Examination Manual addressing compliance with and the examination of UDAAP.

***Nonbank Subsidiary Examination and Enforcement.*** As a result of the Dodd-Frank Act, all nonbank subsidiaries not currently regulated by a state or federal agency are subject to examination by the Federal Reserve Board in the same manner and with the same frequency as if its activities were conducted by the lead bank subsidiary. These examinations will consider whether the activities engaged in by the nonbank subsidiary pose a material threat to the safety and soundness of its insured depository institution affiliates, are subject to appropriate monitoring and control, and comply with applicable laws. Pursuant to this authority, the Federal Reserve Board may also take enforcement action against nonbank subsidiaries. Neither PSB Financial nor Pioneer State Bank will initially have any nonbank subsidiaries but could elect to establish one or more nonbank subsidiaries in the future.

***Payment of Dividends by Pioneer State Bank*.** There are state and federal requirements limiting the amount of dividends which banks may pay. Generally, a bank's payment of cash dividends must be consistent with its capital needs, asset quality, and overall financial condition. The FDIC has the authority to prohibit banks from engaging in any business practice (including the payment of dividends) which it considers to be unsafe or unsound.

Under the Montana Banking Act, Montana state-chartered banks may pay dividends out of net undivided profits, however, they are required to carry at least 25% of the bank's net earnings for the period covered by the dividend to the bank's surplus, until the surplus is 50% of the bank's paid-up capital stock. The whole or any part of the surplus may at any time be converted into paid-in capital, but the surplus must be restored until the surplus amounts to 50% of the aggregate paid-up capital stock. In addition, prior approval of the MDOB is required to pay a dividend if the bank is rated lower than a 1 or a 2 using the uniform financial institutions rating system adopted by the federal financial institutions examination council, or the dividend would reduce the tier 1 leverage ratio of the bank below 8%.

The payment of dividends by any financial institution is affected by the requirement to maintain adequate capital pursuant to applicable capital adequacy guidelines and regulations, and a financial institution generally is prohibited from paying any dividends if, following payment thereof, the institution would be undercapitalized. Notwithstanding the availability of funds for dividends, however, the FDIC or the MDOB may prohibit the payment of any dividends by banks they regulate if the FDIC or the MDOB determines such payment would constitute an unsafe or unsound practice.

***Transactions with Related Parties***. Transactions between banks and their affiliates are governed by federal law. A bank's authority to engage in transactions with its affiliates is limited by Sections 23A and 23B of the Federal Reserve Act and federal regulations. An affiliate is generally a company that controls, or is under common control with, an insured depository institution such as Pioneer State Bank. PSB Financial will be an affiliate of Pioneer State Bank because it will control Pioneer State Bank. In general, transactions between an insured depository institution and its affiliates are subject to certain quantitative limits and collateral requirements. In addition, federal regulations prohibit a savings association from lending to any of its affiliates that are engaged in activities that are not permissible for bank holding companies and from

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purchasing the securities of any affiliate, other than a subsidiary. Finally, transactions with affiliates must be consistent with safe and sound banking practices, not involve the purchase of low-quality assets and be on terms that are as favorable to the institution as comparable transactions with non-affiliates.

Pioneer State Bank's authority to extend credit to its directors, executive officers and 10% stockholders, as well as to entities controlled by such persons, will be governed by the requirements of Sections 22(g) and 22(h) of the Federal Reserve Act and Regulation O of the Federal Reserve Board. Among other things, these provisions generally require that extensions of credit to insiders:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • be made on terms that are substantially the same as, and follow credit underwriting procedures that are not less stringent than, those prevailing for comparable transactions with unaffiliated persons and that do not involve more than the normal risk of repayment or present other unfavorable features: and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • not exceed certain limitations on the amount of credit extended to such persons, individually and in the aggregate, which limits are based, in part, on the amount of the bank's capital.

In addition, extensions of credit in excess of certain limits will require the approval of Pioneer State Bank's Board of Directors. Extensions of credit to executive officers are subject to additional limits based on the type of extension involved.

***Standards for Safety and Soundness.*** The FDIC has adopted final regulations and Interagency Guidelines Establishing Standards for Safety and Soundness to implement safety and soundness standards. The guidelines set forth the safety and soundness standards that the FDIC uses to identify and address problems at insured depository institutions before capital becomes impaired. The guidelines address internal controls and information systems, internal audit systems, credit underwriting, loan documentation, interest rate exposure, asset growth, asset quality, earnings and compensation, fees and benefits. The FDIC has also established standards for safeguarding customer information. If the FDIC determines that an institution fails to meet any standard prescribed by the guidelines, the FDIC may require the institution to submit to the agency an acceptable plan to achieve compliance with the standard.

***Investments and Other Activities.*** Under federal law and FDIC regulations, FDIC-insured state banks are prohibited, subject to certain exceptions, from making or retaining equity investments of a type, or in an amount, which is not permissible for a national bank. Federal law and FDIC regulations also prohibit FDIC-insured state banks and their subsidiaries, subject to certain exceptions, from engaging as principal in any activity that is not permitted for a national bank or its subsidiary, respectively, unless the bank meets, and continues to meet, its minimum regulatory capital requirements and the FDIC determines the activity would not pose a significant risk to the deposit insurance fund.

The GLB Act also authorizes insured state banks to engage in financial activities, through subsidiaries, similar to the activities permitted for financial holding companies. If a state bank wants to establish a subsidiary engaged in financial activities, it must meet certain criteria, including that it and all of its affiliated insured depository institutions are well-capitalized and have a CRA rating of at least "satisfactory" and that it is well-managed. There are capital deduction and financial statement requirements and financial and operational safeguards that apply to subsidiaries engaged in financial activities. Such a subsidiary is considered to be an affiliate of the bank and there are limitations on certain transactions between a bank and a subsidiary engaged in financial activities of the same type that apply to transactions with a bank's holding company and its subsidiaries.

***Other Regulations*.** Interest and other charges collected or contracted for by Pioneer Federal are, and with respect to Pioneer State Bank will be, subject to state usury laws and federal laws concerning interest rates. Our loan operations will be subject to federal laws applicable to credit transactions, such as the:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Federal Truth in Lending Act, governing disclosures of credit terms to consumer borrowers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Real Estate Settlement Procedures Act of 1974, requiring certain disclosures concerning loan closing costs and escrows, and governing transfers of loan servicing and the amounts of escrows in connection with loans secured by one-to-four family residential properties;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Home Mortgage Disclosure Act of 1975, requiring financial institutions to provide information to enable the public and public officials to determine whether a financial institution is fulfilling its obligation to help meet the housing needs of the community it serves;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Equal Credit Opportunity Act, prohibiting discrimination on the basis of race, creed or other prohibited factors in extending credit;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Fair Credit Reporting Act of 1978, as amended by the Fair and Accurate Credit Transactions Act, governing the use and provision of information to credit reporting agencies, certain identity theft protections, and certain credit and other disclosures;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Fair Debt Collection Act, governing the manner in which consumer debts may be collected by collection agencies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Soldiers' and Sailors' Civil Relief Act of 1940, as amended by the Servicemembers' Civil Relief Act, governing the repayment terms of, and property rights underlying, secured obligations of persons currently on active duty with the United States military;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Talent Amendment in the 2007 Defense Authorization Act, establishing a 36% annual percentage rate ceiling, which includes a variety of charges including late fees, for consumer loans to military service members and their dependents; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Rules and regulations of the various federal and state agencies charged with the responsibility of implementing such federal and state laws.

The deposit operations of Pioneer Federal also are, and with respect to Pioneer State Bank will be, subject to, among others, the:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Truth in Savings Act, requiring certain disclosures of consumer deposit accounts;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Right to Financial Privacy Act, which imposes a duty to maintain confidentiality of consumer financial records and prescribes procedures for complying with administrative subpoenas of financial records;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Check Clearing for the 21st Century Act (also known as "Check 21"), which gives "substitute checks," such as digital check images and copies made from that image, the same legal standing as the original paper check; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Electronic Funds Transfer Act and Regulation E promulgated thereunder, which govern automatic deposits to and withdrawals from deposit accounts and customers' rights and liabilities arising from the use of automated teller machines and other electronic banking services.

***Proposed Legislation and Regulatory Action*.** New regulations and statutes are regularly proposed that contain wide-ranging proposals for altering the structures, regulations and competitive relationships of financial institutions operating and doing business in the United States. We cannot predict whether or in what form any proposed regulation or statute will be adopted or the extent to which our business may be affected by any new regulation or statute.

***Effect of Governmental Monetary Policies*.** Pioneer Federal's earnings are, and Pioneer State Bank's earnings will be, affected by domestic economic conditions and the monetary and fiscal policies of the United States government and its agencies. The Federal Reserve Bank's monetary policies have had, and are likely to continue to have, an important impact on the operating results of commercial banks through its power to implement national monetary policy in order, among other things, to curb inflation or combat a recession. The monetary policies of the Federal Reserve Board affect the levels of bank loans, investments and deposits through its control over the issuance of United States government securities, its regulation of the discount rate applicable to member banks, and its influence over reserve requirements to which member banks are subject. We cannot predict the nature or impact of future changes in monetary and fiscal policies.

***Limitations on Compensation and Indemnification*.** On June 21, 2010, the federal banking regulators issued guidance designed to help ensure that incentive compensation policies at banking organizations do not encourage excessive risk-taking or undermined the safety and soundness of the organization. In connection with this guidance, the regulatory agencies announced that they will review incentive compensation arrangements as part of the regular risk-focused supervisory process.

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Regulatory authorities may also take enforcement action against a banking organization if its incentive compensation arrangement or related risk management, control or governance processes pose a risk to the safety and soundness of the organization and the organization is not taking prompt and effective measures to correct the deficiencies. To ensure that incentive compensation arrangements do not undermine safety and soundness at insured depository institutions, the incentive compensation guidance sets forth the following key principles:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Incentive compensation arrangements should provide employees incentives that appropriately balance risk and financial results in a manner that does not encourage employees to expose the organization to imprudent risk;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Incentive compensation arrangements should be compatible with effective controls and risk management; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Incentive compensation arrangements should be supported by strong corporate governance, including active and effective oversight by the Board of Directors.

#### Federal Securities Laws
PSB Financial common stock will be registered with the SEC after the stock offering and conversion. PSB Financial will be subject to the information, proxy solicitation, insider trading restrictions and other requirements under the Exchange Act.

The registration under the Securities Act of 1933, as amended (referred to as the "Securities Act"), of shares of common stock issued in PSB Financial's stock offering does not cover the resale of those shares. Shares of common stock purchased by persons who are not affiliates of PSB Financial may be resold without registration. Shares purchased by an affiliate of PSB Financial will be subject to the "control share" resale restrictions of Rule 144 under the Securities Act. If PSB Financial meets the current public information requirements of Rule 144 under the Securities Act, each affiliate of PSB Financial that complies with the other conditions of Rule 144, including those that require the affiliate's sale to be aggregated with those of other persons, would be able to sell in the public market, without registration, a number of shares not to exceed, in any three-month period, the greater of 1% of the outstanding shares of PSB Financial, or the average weekly volume of trading in the shares during the preceding four calendar weeks. In the future, PSB Financial may permit affiliates to have their shares registered for sale under the Securities Act.

#### Emerging Growth Company Status
Under the JOBS Act, which was enacted in 2012, a company with total annual gross revenues of less than $1.235 billion during its most recently completed fiscal year qualifies as an "emerging growth company." We qualify as an "emerging growth company" and believe that we will continue to qualify as an "emerging growth company" for five years from the completion of the stock offering.

An "emerging growth company" may choose not to hold stockholder votes to approve annual executive compensation (more frequently referred to as "say-on-pay" votes) or executive compensation payable in connection with a merger (more frequently referred to as "say-on-golden parachute" votes). An emerging growth company also is not subject to the requirement that its auditors attest to the effectiveness of the company's internal control over financial reporting, and can provide scaled disclosure regarding executive compensation; however, PSB Financial will also not be subject to the auditor attestation requirement or additional executive compensation disclosure so long as it remains a "non-accelerated filer" and a "smaller reporting company," respectively, under SEC regulations (generally less than $250 million of voting and non-voting equity held by non-affiliates or less than $100 million in annual revenue). Finally, an emerging growth company may elect to comply with new or amended accounting pronouncements in the same manner as a private company but must make such election when the company is first required to file a registration statement. PSB Financial has elected to comply with new or amended accounting pronouncements in the same manner as a private company.

A company loses emerging growth company status on the earlier of: (i) the last day of the fiscal year of the company during which it had total annual gross revenues of $1.235 billion or more; (ii) the last day of the fiscal year of the issuer following the fifth anniversary of the date of the first sale of common equity

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securities of the company pursuant to an effective registration statement under the Securities Act; (iii) the date on which such company has, during the previous three-year period, issued more than $1.0 billion in non-convertible debt; or (iv) the date on which such company is deemed to be a "large accelerated filer" under SEC regulations (generally, at least $700 million of voting and non-voting equity held by non-affiliates).

#### Sarbanes-Oxley Act of 2002
The Sarbanes-Oxley Act of 2002 is intended to improve corporate responsibility, to provide for enhanced penalties for accounting and auditing improprieties at publicly traded companies and to protect investors by improving the accuracy and reliability of corporate disclosures required under the federal securities laws. We have policies, procedures and systems designed to comply with these regulations, and we review and document such policies, procedures and systems to ensure continued compliance with these regulations.

#### Change in Control Regulations
Under the Change in Bank Control Act, a federal statute, no person may acquire control of a bank holding company such as PSB Financial unless the Federal Reserve Board has been given 60 days prior written notice and has not issued a notice disapproving the proposed acquisition, taking into consideration certain factors, including the financial and managerial resources of the acquirer and the competitive effects of the acquisition. Control, as defined under federal law, means ownership, control of or holding irrevocable proxies representing more than 25% of any class of voting stock, control in any manner of the election of a majority of the institution's directors. or a determination by the regulator that the acquiror has the power, directly or indirectly, to exercise a controlling influence over the management or policies of the institution. Acquisition of more than 10% of any class of a bank holding company's voting stock constitutes a rebuttable presumption of control under the regulations under certain circumstances including where, as will be the case with PSB Financial, the issuer has registered securities under Section 12 of the Exchange Act.

In addition, federal regulations provide that no company may acquire control of a bank holding company without the prior approval of the Federal Reserve Board. Any company that acquires such control becomes a "bank holding company" subject to registration, examination and regulation by the Federal Reserve Board.

#### TAXATION

#### Federal Taxation
***General***. PSB Financial and Pioneer Federal are subject to federal income taxation in the same general manner as other corporations, with some exceptions discussed below. The following discussion of federal taxation is intended only to summarize material federal income tax matters and is not a comprehensive description of the tax rules applicable to PSB Financial and Pioneer Federal.

***Method of Accounting***. For federal income tax purposes, Pioneer Federal currently reports its income and expenses on the accrual method of accounting and uses a tax year ending December 31 for filing its federal income tax returns.

***Minimum Tax***. The alternative minimum tax (known as "AMT") for corporations was repealed for tax years beginning after December 31, 2017. Any unused minimum tax credit of a corporation may be used to offset regular tax liability for any tax year. In addition, a portion of unused minimum tax credit was refundable in 2018 through 2021. The refundable portion is 50% (100% in 2021) of the excess of the minimum tax credit for the year over any credit allowable against regular tax for that year. As of June 30, 2025, Pioneer Federal had no minimum tax credit carryforward.

***Net Operating Loss Carryovers***. Generally, a corporation may carry forward net operating losses generated in tax years beginning after December 31, 2017 indefinitely and can use such net operating loss carryforwards to offset up to 80% of taxable income in any year. As of June 30, 2025, Pioneer Federal had no net operating loss carryforwards.

***Capital Loss Carryovers***. Generally, a corporation may carry back capital losses to the preceding three taxable years and forward to the succeeding five taxable years. Any capital loss carryback or carryover

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is treated as a short-term capital loss for the year to which it is carried. As such, it is grouped with any other capital losses for the year to which it is carried and is used to offset any capital gains. Any loss remaining after the five-year carryover period is not deductible. As of June 30, 2025, Pioneer Federal had no capital loss carryovers.

***Corporate Dividends***. PSB Financial may generally exclude from income 100% of dividends received from Pioneer Federal as a member of the same affiliated group of corporations.

***Audit of Tax Returns***. Pioneer Federal's federal income tax returns have not been audited in the most recent five-year period.

#### State Taxation
PSB Financial and Pioneer Federal will be subject to Montana corporate income tax. Pioneer Federal's Montana income tax returns have not been audited in the most recent five-year period.

As a Maryland business corporation, PSB Financial will be required to file an annual report with and pay personal property taxes to the State of Maryland.

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#### MANAGEMENT

#### Shared Management Structure
Each current director of Pioneer Federal is a director of Pioneer State Bank and PSB Financial and will continue as such following the stock offering and the conversion. Similarly, we anticipate that each executive officer at Pioneer Federal will continue as an officer of Pioneer State Bank and PSB Financial following the stock offering and the conversion. We expect that PSB Financial and Pioneer State Bank will continue to have shared management structure until and except when there is a business reason to vary from this practice.

#### Potential Conflict of Interest
Because of the shared management structure, the directors and officer of PSB Financial and Pioneer State Bank will have to allocate their time between directing and managing both entities. The directors and officer of PSB Financial intend to devote all such time to as may be necessary to effectively perform their duties as directors of PSB Financial.

#### Executive Officer of PSB Financial and Pioneer State Bank
Phillip K. Willett is currently the President and Chief Executive Officer of Pioneer Federal and will hold the same title at PSB Financial and Pioneer State Bank following the stock offering and the conversion. Mr. Willett will be the only executive officer of PSB Financial and Pioneer State Bank until such time as the respective Boards of Directors determine to appoint any additional executive officers.

#### Directors of PSB Financial and Pioneer State Bank
PSB Financial and Pioneer State Bank each have ten directors, consisting of the same individuals. Directors will serve three-year staggered terms so that approximately one-third of the directors are elected at each annual meeting. After the stock offering and the conversion, the directors of Pioneer State Bank will be elected by PSB Financial in its capacity as the sole stockholder of Pioneer State Bank. The following table sets forth information regarding our directors, including their ages at September 15, 2025, and the calendar years when they began serving as directors of Pioneer Federal.

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| | | | |
|:---|:---|:---|:---|
| **Name**  | **Position(s) Held with PSB Financial**  | **Age**  | **Director <br> Since**  |
| Jack M. Andersen | Director | 74  | 1993  |
| Roberta Jean Bergeson | Director | 69  | 2017  |
| Spencer Hegstad | Director, Chairman of the Board | 82  | 1986  |
| Debra H. Huber | Director | 56  | 2019  |
| Michael E. Johns | Director | 67  | 2002  |
| William Mosier, Jr. | Director, Vice Chairman of the Board | 78  | 1994  |
| Tony L. Pfaff | Director | 62  | 2017  |
| Mark J. Simkins | Director | 64  | 2025  |
| Ronald J. Snow | Director | 64  | 2018  |
| Phillip K. Willett | President and Chief Executive Officer | 51  | 2022  |

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#### Board Independence
PSB Financial has determined to adopt the standards for "independence" for purposes of Board and committee service as set forth in the listing standards of the Nasdaq Stock Market. The Board of Directors has determined that each director, except for Mr. Willett and Mr. Simkins, is "independent" as defined in the listing standards of the Nasdaq Stock Market. Mr. Willett is not considered independent because he is the current President and Chief Executive Officer of Pioneer Financial and will be hold the same position at PSB Financial and Pioneer State Bank, and Mr. Simkins is not independent because he served as Executive Vice President of Pioneer Federal until his retirement in 2023.

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To our knowledge, there were no other transactions between us and any director or entity controlled by any director, which would interfere with the directors' exercise of independent judgment in carrying out his or her responsibilities as a director.

#### Business Background of Our Directors and Executive Officer
The business experience for the past five years of each of our directors is set forth below. With respect to directors, the biographies also contain information regarding the person's experience, qualifications, attributes or skills that caused the Nominating Committee and the Board of Directors to determine that the person should serve as a director. Unless otherwise indicated, directors have held their positions for the past five years.

***Jack M. Andersen*** Mr. Andersen is a licensed pharmacist with extensive experience in healthcare, business management and corporate governance. He owned and operated a retail pharmacy and gift store from 1981 to 2021, and he has served as a Consultant Pharmacist at Deer Lodge Medical Center since 1985. He has also served as a member of the board of directors of Deer Lodge Medical Center since 1985.

Mr. Andersen provides the Board of Directors with valuable expertise in regulatory compliance, financial oversight and business development.

***Roberta Jean Bergeson*** Ms. Bergeson has served as an attorney at Suenram & Bergeson Law Office since 2006. She has also been an owner and operator of Bergeson Properties Inc., which was an equipment dealership and now holds rental properties, since 1993. She has also served as a volunteer EMT member of Beaverhead Emergency Medical Services, Inc. and has served multiple terms on its board of directors, most recently in 2023.

Ms. Bergeson's legal expertise, business ownership experience and public service background provide Pioneer Federal with valuable skills in governance, compliance, fiscal management and regulatory oversight.

***Spencer Hegstad*** Mr. Hegstad was Partner in Dillon Disposal Services until 1969. Prior to that, he was the owner of Dillon Sears Catalog Store from 1969 to 1993, Beaverhead County Commissioner from 1993 to 1998, and an appraiser for Johnson Appraisal Service from 1994 to 1998. He also founded the Fish, Wildlife & Parks Foundation in 1999 and served as its executive director until his retirement in 2013. He served on the Fish, Wildlife and Parks Commission from 1976 to 1987. He was also the first chairman of the Montana Lottery Commission, serving from 1988 to 1991.

In addition to his long-standing institutional knowledge of Pioneer Federal, Mr. Hegstad's extensive business, civic and governance experience provides Pioneer Federal with important expertise in leadership, fiscal responsibility and strategic oversight.

***Debra H. Huber*** Ms. Huber has served as an Assistant Professor since 2023 and was an Instructor from 2019 to 2023 in the Business Department at the University of Montana Western, where she teaches courses in economics, banking, management and digital marketing. This academic role follows a 28-year career in the franchising industry, where she ultimately served as Chief Administrative Officer from 2014 to 2019 at Great Harvest Franchising. Ms. Huber received a bachelor's degree in economics from Amherst College, an MBA from the University of Montana and a Doctor of Education with an emphasis in Instructional Design & Technology from Idaho State University.

Ms. Huber was selected to serve on our Board of Directors because of her experience in executive leadership, business acquisitions and strategic planning.

***Michael E. Johns*** Mr. Johns is a Certified Public Accountant and a Shareholder with Newland & Company, P.C., where he has practiced as a CPA for more than 30 years. He has also served on the board of directors of Newland & Company since 1992 and is currently the Vice Chair and Secretary of the Montana Board of Public Accountants.

Mr. Johns was selected to serve on our Board of Directors because of his expertise in accounting and his long-standing service with Pioneer Federal.

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***William Mosier, Jr.*** Mr. Mosier has owned and operated a private ranching and agricultural business since 1973. Mr. Mosier graduated with a business degree from Montana State University.

Mr. Mosier provides our Board of Directors with a deep understanding of fiscal responsibility and business operational oversight, and institutional knowledge based on his long-standing service with Pioneer Federal.

***Tony L. Pfaff*** Mr. Pfaff brings over two decades of executive leadership experience in healthcare and business operations, serving as President and Chief Executive Officer of Cypress Healthcare since February 2000 and owner of TC Aviation since April 2010. He has also served as the President and Chief Executive Officer of Deer Lodge Medical Center from 2012 to present. Mr. Pfaff has also served as Vice President and a director of Yellowstone Insurance Exchange since 2017 and as a director of Montana Hospital Association since 2021. He holds a bachelor's degree in health care administration and a master's degree in public administration from Idaho State University.

Mr. Pfaff was selected to serve on our Board of Directors because of his experience in healthcare administration, insurance and business ownership provides Pioneer Federal with valuable expertise in executive leadership, organizational management and strategic planning.

***Mark J. Simkins*** Mr. Simkins brings more than 35 years of experience in the banking and financial services industry, with a career spanning executive management, regulatory oversight, and risk management. Most recently, Mr. Simkins served as Executive Vice President of Pioneer Federal from 2018 until his retirement in 2023, where he was responsible for branch operations, compliance, and risk oversight. Prior to that, Mr. Simkins held senior regulatory and compliance roles at Ruby Valley Bank and State Bank & Trust Co., and was a Commissioned Bank Examiner with the Federal Reserve Bank of Minneapolis from February 1990 to August 1992 and a Bank Examiner with the Montana Department of Commerce from September 1985 to February 1990.

Mr. Simkins was selected to serve on our Board of Directors because of his extensive expertise in financial institution regulation, banking, and risk oversight experience.

***Ronald J. Snow*** Mr. Snow is a professional realtor and has served as Assistant General Manager and Director of Real Estate and Membership Sales at Rock Creek Cattle Company in Deer Lodge, Montana since 2012. In that capacity he is also a licensed Real Estate Broker in the state of Montana. Prior to that, he worked at Rock Creek Cattle Company as the Outdoor Adventures Manager and a Professional Licensed Guide with the Montana Board of Outfitters. Mr. Snow has also served on the board of directors of Powell County Medical Foundation for over 15 years.

Mr. Snow provides the Board of Directors with a valuable understanding of the local real estate market, and his experience in hospitality operations provides valuable expertise in market development and community engagement.

***Phillip K. Willett*** Mr. Willett is the current President and Chief Executive Office of Pioneer Federal, a role he has held since January 2018, and will serve in the same role with PSB Financial and Pioneer State Bank. He previously served as Executive Vice President of Pioneer Federal from June 2016 to December 2017 and has over 20 years of experience in banking, holding leadership positions across multiple areas of the industry. He is the current Chairman of the Board of Directors of the University of Montana Western Foundation and was a member of the Southwestern Montana Family YMCA Board of Directors from 2016 to 2022.

Mr. Willett was selected to serve on our Board of Directors because of his role as Pioneer Federal's President and Chief Executive Officer, along with his extensive experience in the banking industry and his significant senior management experience at other financial institutions.

#### Meetings and Committees of the Boards of Directors
The Board of Directors of PSB Financial has met one time since the incorporation of PSB Financial to address certain organizational matters and matters related to the stock offering conversion. Prior to the completion of the stock offering and the conversion, the Board intends to establish standing Audit,

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Compensation and Nominating and Corporate Governance Committees. Each these committees is expected to operate under a written charter governing its composition, responsibilities and operations. The Board of Directors of Pioneer State Bank has met one time since the incorporation of Pioneer State Bank to address certain organizational matters and matters related to the conversion.

During the year ended December 31, 2024, Pioneer Federal's Board of Directors met 12 times. The Pioneer Federal Board of Directors conducts business through several committees, including an audit committee, a compliance committee, an IT committee, a personnel committee, and a loan committee.

#### Corporate Governance Policies and Procedures
In addition to establishing committees of our Board of Directors, we expect to adopt several policies to govern the activities of both PSB Financial and Pioneer State Bank including corporate governance policies and a code of business conduct and ethics. The corporate governance policies are expected to involve such matters as the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • the composition, responsibilities and operation of our Board of Directors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • the establishment and operation of board committees, including audit, nominating/corporate governance and compensation committees;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • convening executive sessions of independent directors; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • our Board of Directors' interaction with management and third parties.

The code of business conduct and ethics, which is expected to apply to all employees and directors, will address conflicts of interest, the treatment of confidential information, general employee conduct and compliance with applicable laws, rules and regulations. In addition, the code of business conduct and ethics will be designed to deter wrongdoing and to promote honest and ethical conduct, the avoidance of conflicts of interest, full and accurate disclosure and compliance with all applicable laws, rules and regulations.

#### Transactions With Certain Related Persons
***Loans and Extensions of Credit***. Federal law generally prohibits publicly traded companies from making loans and extensions of credit to their executive officers and directors, but it contains a specific exemption from such prohibition for loans made by federally insured financial institutions, such as Pioneer Federal, to their executive officers and directors in compliance with federal banking regulations. Federal regulations permit executive officers and directors to receive the same terms that are widely available to other employees as long as the director or executive officer is not given preferential treatment compared to the other participating employees. All loans made to our executive officer and directors that were outstanding at September 15, 2025, were made in the ordinary course of business and on substantially the same terms, including interest rates and collateral, as those prevailing at the time for comparable loans with persons not related to Pioneer Federal and did not involve more than the normal risk of collectability or present other unfavorable features. All such loans were performing according to their original repayment terms at September 15, 2025, and were made in compliance with federal banking regulations.

#### Executive Compensation
***Summary Compensation Table***. The following information is furnished for Phillip K. Willett, President and Chief Executive Officer of Pioneer Federal, for the fiscal year ended December 31, 2024. Mr. Willett is the only executive officer of Pioneer Federal for purposes of applicable disclosure regulations. It is anticipated that Mr. Willett will serve as the President and Chief Executive Officer of PSB Financial and Pioneer State Bank following the conversion.

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Name and Principal Position**  | **Year**  | **Salary ($)**  | **Bonus ($)**  | **All Other <br> Compensation ($)<sup>(1)</sup>**  | **Total ($)**  |
| Phillip K. Willett <br> *President and Chief Executive Officer*  | 2024 | $154350 | $22500 | $32681 | $209531 |

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(1) The compensation disclosed in the "All Other Compensation" column consists of the following:

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| | | | | |
|:---|:---|:---|:---|:---|
| **Name**  | **Life Insurance <br> Imputed Income ($)**  | **401(k) Plan <br> Employer <br> Contributions ($)**  | **Cafeteria Plan <br> Benefits ($)**  | **Total All Other <br> Compensation ($)**  |
| Phillip K. Willett  | $53 | $25428 | $7200 | $32681 |

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***Current Employment Agreement***. Mr. Willett is currently party to a Chief Executive Officer Employment Agreement, dated January 21, 2025, with Pioneer Federal. The employment agreement commenced on February 1, 2025 with a term of two years, which may be extended upon mutual written agreement of the parties. Under the Agreement, Mr. Willett's title is President and Chief Executive Officer of Pioneer Federal.

The employment agreement provides Mr. Willett with an annual base salary of $163,611, which may be subject to negotiation annually upon request of either party. In addition to receiving base salary, Mr. Willett is eligible for participation in a discretionary bonus pool determined based on individual performance and Pioneer Federal's performance. Mr. Willett is also eligible for benefits and paid vacation, with a credit of five years of prior experience for purposes of Pioneer Federal's paid vacation policy.

The employment agreement is subject to termination: (i) immediately upon Mr. Willett's death or disability; (ii) immediately upon termination for cause; (iii) upon Mr. Willett's voluntary resignation with at least thirty days' prior written notice to Pioneer Federal; or (v) upon thirty days prior written notice by Pioneer Federal to Mr. Willett in the event any applicable law, rule, regulation, standard or interpretation prohibits, limits or substantially changes the arrangement set forth in the agreement or significantly affects Pioneer Federal's rights under the agreement.

If Mr. Willett is suspended from office and/or temporarily prohibited from participating in Pioneer Federal's affairs by a notice served under the Federal Deposit Insurance Act, Pioneer Federal's obligations under the agreement will be suspended. If the applicable charges are dismissed, Mr. Willett may be reinstated and receive all or part of his compensation withheld while the contract obligations were suspended, in each case, as determined in Pioneer Federal's discretion. If Mr. Willett is removed and/or permanently prohibited from participating in Pioneer Federal's affairs by an order issued under the Federal Deposit Insurance Act, all obligations of Pioneer Federal under the agreement will terminate as of the effective date of the order. If Pioneer Federal is in default under the Federal Deposit Insurance Act, all obligations under the agreement will terminate as of the date of the default.

All obligations under Mr. Willett's employment agreement will terminate, except to the extended determined necessary by: (i) the Commissioner of the MDOB at such time as the FDIC enters into an agreement to provide assistance under the Federal Deposit Insurance Act; or (ii) the Commissioner of MDOB at such time as the Commissioner approves a supervisory merger to resolve problems related to bank operations or when the Commissioner determines the bank is in an unsafe or unsound condition.

Upon termination of employment, Mr. Willett will be subject to: (i) a five-year non-disclosure of confidential information restriction; (ii) a one-year non-compete restriction; and (iii) a one-year employee non-solicitation restriction.

Mr. Willett's employment with Pioneer Federal will be terminated in connection with the conversion, at which time he will become an employee of PSB Financial and Pioneer State Bank. No benefits will be owed under the agreement in connection with such termination.

***Proposed Employment Agreement***. It is anticipated that Pioneer State Bank will enter into a new employment agreement with Mr. Willett on such terms at the Board of Directors of Pioneer State Bank determines to be reasonable, in the best interests of Pioneer State Bank, PSB Financial and its stockholders, and protective of Pioneer State Bank in accordance with Montana state law.

***Supplemental Executive Retirement Plan Agreement***. In connection with the stock offering and conversion, it is anticipated that Pioneer State Bank will enter into a supplemental executive retirement plan agreement (referred to in this section as the "SERP") with Mr. Willett. The following is a description of the anticipated terms of the SERP, subject to approval by the Board of Directors of Pioneer State Bank.

Under the anticipated terms of the SERP, if Mr. Willett separates from service after reaching the normal retirement age of age 62, he would be entitled to an annual benefit equal to $150,000, to be paid in

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equal monthly installments for a period of 120 months commencing on the first business day of the first month immediately following his separation from service.

If Mr. Willett separates from service before reaching normal retirement age (other than on account of death, disability, or for cause), he would be entitled to the vested portion of his normal retirement benefit, commencing on the first business day of the first month immediately following his normal retirement age. Mr. Willett will fully vest in his normal retirement benefit upon attaining age 60 or upon the event of a change in control of either Pioneer State Bank or PSB Financial; in the absence of a change in control of either Pioneer State Bank or PSB Financial, if Mr. Willett separates from service prior to attaining age 60 other than for death or disability he will have no vested interest in any SERP benefit. Provided, however, if Mr. Willett is terminated for cause, he will forfeit all benefits under the SERP.

If Mr. Willett becomes disabled before a separation from service and before normal retirement age, Mr. Willett would receive his full accrued benefit on the first business day of the first month following his separation from service, paid in a lump sum on the first business day of the first month following his disability.

If Mr. Willett dies before his retirement, his beneficiary would receive his full accrued benefit paid in a lump sum no later than December 31 of the calendar year following Mr. Willett's death. If Mr. Willett dies while receiving benefits, his beneficiary would receive a lump sum payout of the present value of Mr. Willett's remaining benefits no later than December 31 of the calendar year following Mr. Willett's death.

As a condition of the SERP, Mr. Willett will be required to execute a restrictive covenant agreement pursuant to which he would be subject to the following covenants commencing on the effective date of the SERP and continuing through the longer of (i) the end of the period in which he receives Benefits under the SERP or (ii) a period of two years following the termination date of his employment: (i) non-disclosure of confidential information restriction; (ii) customer and prospective customer non-solicitation restrictions; (iii) an employee non-solicitation restriction; and (iv) assignment of business ideas provisions. This restricted period will continue to apply in the event that Mr. Willett's employment continues following a change in control (as defined in the SERP). Provided, however, if Mr. Willett's employment is terminated in connection with such a change in control and Mr. Willett is not offered employment by the successor or one of its affiliates, then the restricted period will continue only for two years following the termination date of his employment.

In support of the SERP, our Board has approved the purchase of a single premium bank owned life insurance policy in the amount of $1,450,000.

***Change of Control Agreement.*** In connection with the stock offering and the conversion, it is anticipated that Pioneer State Bank will enter into a change of control agreement with Mr. Willett. The following is a description of the anticipated terms of Mr. Willett's change of control agreement, subject to approval by the Board of Directors of Pioneer State Bank.

Under the anticipated terms of the change of control agreement, if during the post-change of control period ending on the first anniversary of the change of control, Pioneer State Bank terminates Mr. Willett's employment other than for cause, or if Mr. Willett incurs an uncured good reason event, Pioneer State Bank would pay Mr. Willett an amount equal to 2.99x Mr. Willett's total W-2 and 1099 compensation in the calendar year immediately prior to such uncured good reason event (subject to reduction if such amount constitutes an excess parachute payment under Section 280G of 1986, as amended) plus base salary through his date of termination or good reason event, plus and any additional accrued benefits as of such date. Payment of the change of control amount would be conditioned upon Mr. Willett executing a waiver and release of claims satisfactory to Pioneer State Bank.

If Pioneer State Bank terminates Mr. Willett's employment for cause or if Mr. Willett terminates his employment with Pioneer State Bank without a good reason event during the post-change of control period, the change of control agreement would terminate, and Mr. Willett would be entitled to payment only of his base salary and accrued benefits through such date of termination.

If Mr. Willett terminates employment with Pioneer State Bank as a result of disability during the post-change of control period, he would be entitled only to his base salary plus his accrued benefits through such

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date of termination and any disability benefits due under any long-term disability plan or program maintained by Pioneer State Bank at such time.

If Mr. Willett terminates employment with Pioneer State Bank as a result of death during the post-change of control period, his heirs would be entitled to his base salary through date of termination and accrued benefits and through such date of termination and any death benefits due under any death benefit plan or program maintained by Pioneer State Bank at such time.

If Mr. Willett's employment with Pioneer State Bank is terminated for any reason or if he incurs a good reason event outside the post-change of control period, Mr. Willett's termination would be governed by his employment agreement with Pioneer State Bank.

***Directors Deferred Compensation Plan***. In connection with the stock offering and conversion, Pioneer State Bank intends to adopt the Pioneer State Bank and Affiliates Directors Deferred Compensation Plan, pursuant to which outside directors may elect to defer a portion of their director's fees each year. Pioneer State Bank will credit the deferred amounts with earnings at an annual rate as established by the compensation committee of the board no less than annually in accordance with GAAP standards; provided that after benefits have commenced under the plan, amounts will be credited a separate inactive rate.

Directors will receive their deferred fees and earnings when they separate from board service and may elect to have the benefits paid in a lump sum or installments, provided however that upon a director's death any remaining benefit shall be paid to the director's beneficiary in a lump sum. Directors may make one additional election choosing a different optional form of distribution.

***Supplemental Life Insurance Plan.*** Pioneer Federal maintains the Pioneer Federal Savings and Loan Executive Supplemental Life Insurance Plan covering Mr. Willett. Pioneer Federal purchased a life insurance policy or policies on the life of Mr. Willett in an amount sufficient to provide for the benefits under the agreement. In connection with stock offering and conversion, Pioneer State Bank intends to assume sponsorship of the plan and policies thereunder. Under the plan, Mr. Willett has the right to designate a beneficiary who will receive a share of the proceeds payable upon his death, as follows: If Mr. Willett should die prior to age 70, $75,000 and if thereafter, 20% of the net benefit proceeds of the policy. The policies are owned by Pioneer State Bank, which paid the premium due on the policies (provided, however, that Mr. Willett's participation in the Plan shall automatically terminate if he should terminate employment with the Pioneer State Bank prior to attainment of age 65). The "net death proceeds" amount equals the total death benefit of a life insurance policy less the cash surrender value of the policy.

***401(k) Plan***. Pioneer Federal maintains the Pioneer Federal Savings and Loan 401(k) Plan and Trust, a tax-qualified defined contribution plan for eligible employees (the "401(k) Plan"). In connection with stock offering and conversion, Pioneer State Bank intends to assume sponsorship of the 401(k) Plan. Mr. Willett is eligible to participate in the 401(k) Plan on the same terms as other eligible employees. Eligible employees become participants in the 401(k) Plan and may make salary deferrals under the plan after having attained age 18 and completed 30 days of service. Employees become eligible for employer contributions, including matching contributions, after they attain age 18 and complete six months of service.

Under the 401(k) Plan, a participant may elect to defer, on a pre-tax basis, the maximum amount of compensation permitted by the Internal Revenue Code. For 2025, the salary deferral contribution limit is $23,500, provided, however, that a participant over age 50 to 59 (and 64+) may contribute an additional $7,500 to the 401(k) Plan for a total of $31,000. A participant of age 60-63 may contribute an additional $11,250 to the 401(k) Plan for a total of $34,750. In addition to salary deferral contributions, Pioneer Federal currently makes two types of contributions: (i) matching contributions on a uniform basis; and (ii) non-elective contributions on a discretionary basis. It is anticipated that Pioneer State Bank will continue to make these contributions.

A participant is always 100% vested in his or her salary deferral contributions. A participant will vest in matching and other employer contributions at the rate of 20% per year of service, beginning after one year of service, so that a participant will become fully vested after completing five years of credited service. Generally, unless the participant elects otherwise, the participant's account balance will be distributed

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following the participant's termination of employment. However, participants may take in-service withdrawals from the 401(k) Plan in certain circumstances, including for loans and hardships.

Expense recognized in connection with the 401(k) Plan totaled $67,000 for the six months ended June 30, 2025 and $145,000 for the year ended December 31, 2024.

***Employee Stock Ownership Plan***. PSB Financial intends to adopt an employee stock ownership plan (referred to in this prospectus as the "ESOP"), effective January 1, 2027, for eligible employees. Mr. Willett will be eligible to participate in the ESOP on the same terms as other eligible employees. It is anticipated that eligible employees will include employees who have attained age 18 and have completed one year of service. Employees employed as of January 1, 2027, will begin participation in the ESOP on the later of the effective date of the ESOP or upon the first entry date commencing on or after the eligible employee's completion of 1,000 hours of service during a continuous 12-month period taking into account prior service with Pioneer Federal.

The ESOP trustee is expected to purchase, on behalf of the ESOP, 8% of the shares of PSB Financial, Inc. common stock sold in the stock offering. We anticipate that the ESOP will fund its stock purchase with a loan from PSB Financial, Inc. equal to the aggregate purchase price of the common stock. The loan will be repaid principally through Pioneer State Bank's contribution to the ESOP and dividends payable on common stock held by the ESOP over the anticipated 25-year term of the loan. The interest rate for the ESOP loan is expected to be a fixed rate equal to 4.82%, on the closing date of the ESOP stock transaction. If market conditions warrant, in the judgment of its trustees, the ESOP's subscription order will not be tilled and the ESOP may elect to purchase shares in the open market following the completion of the stock offering and conversion, subject to applicable regulatory approvals or non-objections.

The trustee will hold the shares purchased by the ESOP in an unallocated suspense account. Shares will be released from the suspense account on a pro-rata basis as the trustee repays the loan. The trustee will allocate the shares released among the participants' accounts based on each participant's proportional share of compensation relative to all participants. Participants will vest in their benefit at a rate of 20% per year beginning after one year of service, such that the participants will be 100% vested upon completion of five years of credited services. Participants who were employed by Pioneer State Bank immediately before the completion of the stock offering and conversion will receive credit for vesting purposes for years of service before adoption of the ESOP. Participants also will become fully vested upon death, a change in control, or termination of the ESOP. Generally, participants will receive distributions from the ESOP upon severance from employment. The ESOP reallocates any unvested shares forfeited upon termination of employment among the remaining participants.

The ESOP will permit participants to direct the trustee as to how to vote the shares of common stock allocated to their accounts. The trustee will vote unallocated shares and allocated shares for which participants do not provide instructions on any matter in the same ratio as those shares for which participants provide instructions, subject to fulfillment of the trustee's fiduciary responsibilities.

Under applicable accounting requirements, Pioneer State Bank will record compensation expense for the ESOP at the fair market value of the shares as they are committed to be released from the unallocated suspense account to participants' accounts. The compensation expense resulting from the release of PSB Financial, Inc. common stock from the suspense account and allocation to plan participants will result in a corresponding reduction in the earnings of PSB Financial, Inc.

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#### Director Compensation
The following table sets forth for the year ended December 31, 2024, certain information as to the total renumeration paid to the non-employee directors of Pioneer Federal.

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| | | | |
|:---|:---|:---|:---|
| **Name**  | **Fees Earned or Paid in <br> Cash ($)**  | **All Other <br> Compensation ($)**  | **Total ($)**  |
| Jack M. Andersen  | $11725 |  | $11725 |
| Roberta Jean Bergeson  | 11725 |  | 11725 |
| Spencer Hegstad  | 14600 |  | 14600 |
| Debra H. Huber  | 11725 |  | 11725 |
| Michael E. Johns  | 11725 |  | 11725 |
| William Mosier Jr.  | 11725 |  | 11725 |
| Tony L. Pfaff  | 11725 |  | 11725 |
| Mark J. Simkins<sup>(1)</sup>  | N/A | N/A | N/A |
| Ronald J. Snow  | 11725 |  | 11725 |
| Tedd Stanisich<sup>(2)</sup>  | 11725 |  | 11725 |
| Phillip K. Willett  | 2345 |  | 2345 |

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(1) Mr. Simkins joined the Pioneer Federal Board of Directors in August 2025.

(2) Mr. Stanisich retired as a director in August 2025.

For the year ended December 31, 2024, the directors of Pioneer State Bank received $725 ($850 for the Chairman of the Board and $145 for Mr. Willett) for attendance at the January meeting and $1,000 ($1,250 for Chairman of the Board and $200 for Mr. Willett) for attendance at each meeting after January of the Board of Directors or of its committees. Pioneer Federal's Board of Directors meets at least bi-monthly. During the year ended December 31, 2024, the Pioneer Federal Board of Directors met and were paid for 12 meetings.

Each individual who serves as a director of Pioneer Federal prior to the conversion also serves, and will continue to serve following the conversion, as a director of Pioneer State Bank and PSB Financial. Currently, the non-employee directors of Pioneer Federal receive director fees only in their capacity as directors of Pioneer Federal. After the conversion, we anticipate that the non-employee directors of Pioneer State Bank and PSB Financial will receive director fees only in their capacity as directors of PSB Financial.

#### Benefits to be Considered Following Completion of the Stock Offering and Conversion
***Stock-Based Benefit Plans***. Following the stock offering and conversion, we intend to adopt one or more new stock-based benefit plans that will provide for grants of stock options and restricted stock awards (including restricted stock units). The stock-based benefit plans will not be adopted sooner than six months after the stock offering and conversion, and, if adopted within 12 months after the stock offering and conversion, stockholders must approve the plans by a majority of the votes eligible to be cast. If the stock-based benefit plans are established more than 12 months after the stock offering and conversion, stockholders must approve the plans by a majority of votes cast. Also, if adopted within 12 months following the completion of the conversion, the aggregate number of shares reserved for the exercise of stock options or available for stock awards under the stock-based benefit plans would be limited to 10% and 4%, respectively, of the number of shares sold in the stock offering.

One plan that may be adopted as described above is a PSB Financial Equity Incentive Compensation Plan, which would provide for grants of stock appreciation rights, restricted stock, incentive stock options, nonqualified stock options and restricted stock units.

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We anticipate that the following additional restrictions would apply to any stock-based benefit plans we adopt within 12 months after the stock offering and the conversion:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • non-employee directors in the aggregate may not receive more than 30% of the options and restricted stock awards authorized under the plans:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • any one non-employee director may not receive more than 10% of the options and restricted stock awards authorized under the plans;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • any officer or employee may not receive more than 25% of the options and restricted stock awards authorized under any plan:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • any tax-qualified employee stock benefit plans and restricted stock plans, in the aggregate, may not acquire more than 10% of the number of shares sold in the stock offering, unless Pioneer State Bank has tangible capital of 10% or more, in which case tax-qualified employee stock benefit plans and restricted stock plans may acquire up to 12% of the number of shares sold in the stock offering;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • the options and restricted stock awards may not vest at a rate exceeding 20% per year, beginning on the first anniversary of stockholder approval of the plans: and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • accelerated vesting is not permitted except for death, disability or upon a change in control of PSB Financial or Pioneer State Bank.

We have not determined whether we will present stock-based benefit plans for stockholder approval before or after 12 months after the completion of the stock offering and conversion.

We may obtain the shares needed for our stock-based benefit plans by issuing additional shares of common stock from authorized but unissued shares or through stock repurchases.

The actual value of the shares awarded under stock-based benefit plans would be based in part on the price of the common stock of PSB Financial when the shares are awarded. The following table presents the total value of all shares of restricted stock that would be available for issuance under the new stock-based benefit plans, assuming the shares are awarded when the market price of our common stock ranges from $8.00 per share to $14.00 per share.

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| | | | | |
|:---|:---|:---|:---|:---|
| **Share Price**  | **Value of Shares Awarded <br> at Minimum of Offering <br> Range**  | **Value of Shares Awarded at <br> Midpoint of Offering Range**  | **Value of Shares Awarded at <br> Maximum of Offering Range**  | **Value of Shares <br> Awarded at <br> Adjusted Maximum of <br> Offering Range**  |
| **(In thousands, except share price information)**  | **(In thousands, except share price information)**  | **(In thousands, except share price information)**  | **(In thousands, except share price information)**  | **(In thousands, except share price information)**  |
| $8.00  | $326 | $384 | $442 | $508 |
| 10.00  | 408 | 480 | 552 | 635 |
| 12.00  | 490 | 576 | 662 | 762 |
| 14.00  | 571 | 672 | 773 | 889 |

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The grant-date fair value of the options granted under the new stock-based benefit plans will be based in part on the price of shares of common stock of PSB Financial when the options are granted. The value also will depend on the various assumptions utilized in the option pricing model ultimately adopted. The following table presents the total estimated value of the options to be available for grant under the stock-based benefit plans, assuming the market price and exercise price for the stock options are equal and the range of market prices for the shares is $8.00 per share to $14.00 per share. The Black-Scholes option pricing model provides an estimate only of the fair value of the stock options, and the actual value of the stock options may differ significantly from the value set forth in this table.

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|:---|:---|:---|:---|:---|:---|
| **Exercise Price**  | **Grant-Date Fair <br> Value Per Option**  | **Value of Options at <br> Minimum of <br> Offering Range**  | **Value of Options at <br> Midpoint of <br> Offering Range**  | **Value of Options at <br> Maximum of <br> Offering Range**  | **Value of Options at <br> Awarded at <br> Adjusted Maximum <br> of Offering Range**  |
| **(In thousands, except exercise price and fair value information)**  | **(In thousands, except exercise price and fair value information)**  | **(In thousands, except exercise price and fair value information)**  | **(In thousands, except exercise price and fair value information)**  | **(In thousands, except exercise price and fair value information)**  | **(In thousands, except exercise price and fair value information)**  |
| $8.00  | $3.92 | $400 | $470 | $541 | $622 |
| 10.00  | 4.90 | 500 | 588 | 676 | 778 |
| 12.00  | 5.88 | 600 | 706 | 811 | 933 |
| 14.00  | 6.86 | 700 | 823 | 947 | 1089 |

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 **The above tables are provided for informational purposes only. There can be no assurance that PSB Financial common stock will not trade below the offering price of $10.00 per share. Before you make an investment decision, we urge you to read this prospectus carefully, including, but not limited to, the section entitled "Risk Factors."** 

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#### SUBSCRIPTIONS BY DIRECTORS AND EXECUTIVE OFFICER
The following table sets forth information regarding intended common stock subscriptions by each of the directors and executive officer and their associates and by all directors, officers and their associates as a group. However, there can be no assurance that any such person or group will purchase any specific number of shares of our common stock. If the individual maximum purchase limitation is increased, persons subscribing for the maximum amount may increase their purchase order. Directors and officers will purchase shares of common stock at the same $10.00 purchase price per share and on the same terms as other purchasers in the stock offering. This table excludes shares of common stock to be purchased by the ESOP, as well as any stock awards or stock option grants that may be made no earlier than six months after the completion of the stock offering and conversion. Purchases by directors, officers and their associates will be included in determining whether the required minimum number of shares has been subscribed for in the stock offering. The shares being acquired by the directors, executive officers and their associates are being acquired for investment purposes, and not with a view towards resale. Our directors and executive officers will be subject to the same minimum purchase requirements and purchase limitations as other participants in the stock offering set forth under "The Stock Offering and Conversion — Limitations on Common Stock Purchases."

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| | | | |
|:---|:---|:---|:---|
| **Name and Title**  | **Number of <br> Shares<sup>(1)</sup>**  | **Aggregate <br> Purchase <br> Price<sup>(1)</sup>**  | **Percent <br> Outstanding at <br> Minimum of <br> Offering Range**  |
| Jack M. Andersen, Director  | 200 | $2000 | \* |
| Roberta Jean Bergeson, Director  | 2000 | 20000 | \* |
| Spencer Hegstad, Director, Chairman of the Board  | 2500 | 25000 | \* |
| Debra H. Huber, Director  | 10500 | 105000 | 1.0% |
| Michael E. Johns, Director  | 20000 | 200000 | 2.0% |
| William Mosier, Jr., Director, Vice Chairman of the Board  | 5000 | 50000 | \* |
| Tony L. Pfaff, Director  | 30000 | 300000 | 2.9% |
| Mark J. Simkins, Director  | 1500 | 15000 | \* |
| Ronald J. Snow, Director  | 30000 | 300000 | 2.9% |
| Phillip K. Willett, President and Chief Executive Officer  | 1000 | 10000 | \* |
| All directors and executive officers as a group (10 persons)  | 102700 | $1027000 | 10.1% |

---

\*

Less than 1.0%

(1) Includes purchases by the named individual's spouse and other relatives of the named individual living in the same household, if any. Other than as set forth above, the named individual is not aware of any other intended purchases by a person or entity that would be considered an associate of the named individual under the plan of conversion.

#### THE STOCK OFFERING AND CONVERSION
The Board of Directors of Pioneer Federal has approved the plan of conversion. The plan of conversion must also be approved by at least a majority of votes eligible to be cast by Pioneer Federal's members (its depositors). A special meeting of members will be called for this purpose. Pioneer Federal has filed an application with respect to the stock offering and conversion with the MDOB and the FDIC, and PSB Financial has filed a holding company application with the Federal Reserve Board. The approvals of the MDOB, the FDIC and the Federal Reserve Board are required before we can consummate the conversion and the stock offering. Any approval by the MDOB, the FDIC or the Federal Reserve Board does not constitute a recommendation or endorsement of the plan of conversion.

#### General
The Board of Directors of Pioneer Federal initially adopted and approved the plan of conversion on September 16, 2025. According to the plan of conversion, Pioneer Federal will convert from the mutual

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form of organization to the stock form of organization by means of a merger with and into Pioneer State Bank. In connection with the conversion, Pioneer Federal has organized a new Maryland stock holding company, named PSB Financial, which will sell shares of common stock to the public in an initial public stock offering. When the stock offering and conversion are completed, all of the capital stock of Pioneer State Bank will be owned by PSB Financial and all of the common stock of PSB Financial will be owned by its stockholders.

PSB Financial expects between $8.2 million and $11.8 million of net proceeds from the stock offering, or $13.9 million if the offering range is increased by 15% because of demand for the shares or changes in market conditions. Pioneer State Bank will receive a capital contribution equal to at least 50% of the net proceeds of the stock offering. Assuming a capital contribution of 50%, we anticipate that PSB Financial will invest in Pioneer State Bank $4.1 million, $5.0 million, $5.9 million and $6.9 million, respectively, of the net proceeds at the minimum, midpoint, maximum, and adjusted maximum of the offering range. The stock offering and conversion will be consummated only upon the sale of at least 1,020,000 shares of our common stock.

The plan of conversion provides that we will offer shares of common stock for sale in the subscription offering to Eligible Account Holders, our ESOP, Supplemental Eligible Account holders and Other Members. If all shares are not subscribed for in the subscription offering, we may, in our discretion, offer common stock for sale in a community offering to members of the public, with a preference given to the local community, including natural persons (and trusts of natural persons) residing in Beaverhead and Powell Counties in Montana. In addition, shares of common stock not purchased in the subscription offering and community offering may be offered for sale to the general public in a syndicated community offering to be managed by KBW, acting as our agent.

We have the right to accept or reject, in whole or in part, any orders to purchase shares of the common stock received in any community offering or any syndicated community offering. The community offering and/or syndicated community offering, if any, may begin at the same time as, during, or after the subscription offering, and must be completed within 45 days after the completion of the subscription offering unless otherwise extended by us with the approval of the MDOB and the FDIC. See "— Community Offering" and "— Syndicated Community Offering."

We determined the number of shares of common stock to be offered in the stock offering based upon an independent valuation of the estimated consolidated pro forma market value of PSB Financial, assuming the stock offering and conversion is completed. All shares of common stock to be sold in the stock offering will be sold at $10.00 per share. Investors will not be charged a commission to purchase shares of common stock. The independent valuation will be updated and the final number of the shares of common stock to be issued in the stock offering will be determined at the completion of the stock offering. See "— Determination of Share Price and Number of Shares to be Issued" for more information as to the determination of the estimated pro forma market value of the common stock.

The following is a brief summary of the plan of conversion. We recommend reading the plan of conversion in its entirety for more information. A copy of the plan of conversion is available for inspection at each banking office of Pioneer Federal and as described in the section of this prospectus entitled "Where You Can Find Additional Information." The plan of conversion is also filed as an exhibit to Pioneer Federal's application for approval to convert from mutual to stock form, of which this prospectus is a part, copies of which may be obtained from the FDIC. The plan of conversion is also filed as an exhibit to PSB Financial's registration statement filed with the SEC, of which this prospectus is a part, copies of which may be obtained from the SEC or online at the SEC's website, *www.sec.gov*. See "Where You Can Find Additional information."

#### Reasons for the Conversion
Consistent with our business strategy, our primary reasons for converting to stock form and raising additional capital through the stock offering are:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • to increase capital to support future growth and profitability;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • to retain and attract qualified personnel by establishing stock-based benefit plans for management and employees; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • to offer our customers and employees an opportunity to purchase an equity interest in Pioneer State Bank by purchasing shares of common stock of PSB Financial.

Additionally, mutual institutions cannot offer stock incentives to attract and retain highly qualified management personnel. While Pioneer Federal has not required these capital tools and stock incentives in the past, they could prove to be important to Pioneer State Bank for implementing our business strategy, and management believes that the additional capital raised in the stock offering will enable Pioneer State Bank to take advantage of business opportunities that would not otherwise be available.

#### Approvals Required
The affirmative vote of at least a majority of the total eligible votes to be cast by members of Pioneer Federal is required to approve the plan of conversion, including the merger and related transactions. A special meeting of members to consider and vote upon the plan of conversion and the establishment has been set for [ ]. The plan of conversion also must be approved by the MDOB and the FDIC. Additionally, the Federal Reserve Board must approve PSB Financial's holding company application. We cannot consummate the conversion and the stock offering without satisfying the conditions contained in these approvals.

#### Effects of Conversion on Depositors, Borrowers and Members
***Continuity***. While the stock offering and conversion are being accomplished, our normal business of accepting deposits and making loans will continue without interruption. Pioneer Federal will continue to be a Montana-chartered savings bank and will continue to be regulated by the FDIC, while PSB Financial will be regulated by the Federal Reserve Board. After the stock offering and conversion, we will continue to offer existing services to depositors, borrowers and other customers. The individuals serving as directors of Pioneer Federal at the time of the conversion will serve as the directors of Pioneer State Bank and of PSB Financial after the stock offering and conversion.

***Effect on Deposit Accounts***. According to the plan of conversion, each member of Pioneer Federal at the time of the conversion will automatically continue as a depositor of Pioneer State Bank after the stock offering and conversion, and the deposit balance, interest rate and other terms of such deposit accounts will not change as a result of the stock offering and conversion. Each such account will be insured by the FDIC to the same extent as before the stock offering and conversion. Depositors will continue to hold their existing certificates of deposit, passbooks and other evidence of their accounts.

***Effect on Loans***. No loan outstanding from Pioneer Federal will be affected by the stock offering and conversion, except that the lender with respect to such loans will be Pioneer State Bank. The amount, interest rate, maturity, security and other terms of each loan will remain as it was contractually fixed before the stock offering and conversion.

***Effect on Voting Rights of Members***. All of our depositors are members of (and those with deposits of $100 or more have voting rights in) Pioneer Federal as to all matters requiring a vote of members, including the election of directors of Pioneer Federal, proposed amendments to Pioneer Federal's charter, and the vote on the plan of conversion. Upon completion of the stock offering and conversion, Pioneer Federal will cease to have members and former members will no longer have voting rights in Pioneer Federal. Upon completion of the stock offering and conversion, all voting rights in Pioneer Federal will be vested in PSB Financial as the sole stockholder of Pioneer State Bank. The stockholders of PSB Financial will possess exclusive voting rights with respect to PSB Financial common stock.

***Tax Effects***. We have received opinions of our counsel and our tax advisors with regard to the federal and state income tax consequences of the stock offering and conversion to the effect that the conversion will not be a fully taxable transaction for federal or Montana income tax purposes to Pioneer Federal or its members. See "— Material Income Tax Consequences."

***Effect on Liquidation Rights***. Each member of Pioneer Federal has both a deposit account in Pioneer Federal and a pro rata ownership interest in the net worth of Pioneer Federal based upon the deposit balance

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in the member's account. This ownership interest is tied to the member's account and has no tangible market value separate from the deposit account. This interest may only be realized in the event of a complete liquidation of Pioneer Federal or Pioneer State Bank, as the case might be. Any member who opens a deposit account obtains a pro rata ownership interest in Pioneer Federal without any additional payment beyond the amount of the deposit. A member who reduces or closes his or her account receives a portion or all, respectively, of the balance in the deposit account but nothing for his or her ownership interest in the net worth of Pioneer Federal (or Pioneer State Bank, as the case might be), which is lost to the extent that the balance in the account is reduced or closed.

Consequently, members of a mutual savings bank normally have no way of realizing the value of their ownership interest, which has realizable value only in the unlikely event that the institution (or, potentially, a successor institution) is completely liquidated. If this occurs, the depositors of record at that time, as owners, would share pro rata in any residual surplus and reserves of Pioneer Federal (or Pioneer State Bank, as the case might be) after other claims, including claims of depositors to the amounts of their deposits, are paid.

In the unlikely event that Pioneer State Bank were to liquidate after the stock offering and conversion, all claims of creditors, including those of depositors, would be paid first, followed by distribution of a "liquidation account" to depositors as of June 30, 2024 and [ ], 2025 who continue to maintain their deposit accounts as of the date of liquidation, with any assets remaining thereafter distributed to PSB Financial as the sole owner of Pioneer Federal's capital stock. A post-conversion merger, consolidation, sale of bulk assets or similar combination or transaction with another insured savings institution would not be considered a liquidation under applicable law and, in such a transaction, the liquidation account would be assumed by the surviving institution. See "— Liquidation Rights."

#### Determination of Share Price and Number of Shares to be Issued
The plan of conversion and applicable federal regulations require that the aggregate purchase price of the common stock sold in the stock offering be based on the appraised pro forma market value of the common stock, as determined by an independent valuation. We have retained Feldman Financial, an independent appraisal firm, to prepare an independent valuation appraisal. For its services, Feldman Financial will receive a fee of $40,000 in preparing the initial valuation and $7,500 for each updated valuation. Feldman Financial will be reimbursed for its expenses up to $5,000.

We are not affiliated with Feldman Financial, and neither we nor Feldman Financial has an economic interest in or is held in common with the other. Feldman Financial represents and warrants that it is not aware of any fact or circumstance that would cause it not to be "independent" within the meaning of the conversion regulations or the applicable regulatory valuation guidelines or otherwise prohibit or restrict in anyway Feldman Financial from serving in the role of our independent appraiser.

We have agreed to indemnify Feldman Financial and its employees and affiliates against specified losses, including any losses in connection with claims under the federal securities laws, arising out of its services as independent appraiser, except where such liability results from its negligence or bad faith.

The independent valuation appraisal considered the pro forma effect of the stock offering and conversion. Consistent with federal appraisal guidelines, the appraisal applied three primary methodologies: (i) the pro forma price-to-book value approach applied to both reported book value and tangible book value; (ii) the pro forma price-to-earnings approach applied to reported and core earnings; and (iii) the pro forma price-to-assets approach. The market value ratios applied in the three methodologies were based on the current market valuations of the peer group companies. Feldman Financial placed the greatest emphasis on the price-to-earnings and price-to-book approaches in estimating pro forma market value. Feldman Financial did not consider a pro forma price-to-assets approach to be meaningful in preparing the appraisal, as this approach is more meaningful when a company has low equity or earnings. The price-to-assets approach is less meaningful for a company like Pioneer Federal, which has equity in excess of regulatory capital requirements and positive reported and core earnings.

The independent valuation was prepared by Feldman Financial in reliance upon the information contained in this prospectus, including our financial statements. Feldman Financial also considered the following factors, among others:

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • the operating results and financial condition of Pioneer Federal and the projected operating results and financial condition of PSB Financial;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • the economic and demographic conditions in Pioneer Federal's existing market area;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • certain historical, financial and other information relating to Pioneer Federal;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • a comparative evaluation of our operating and financial characteristics with those of other similarly situated publicly traded savings institutions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • the impact of the stock offering and conversion on PSB Financial's stockholders' equity and earnings potential;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • the proposed dividend policy of PSB Financial; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • the trading market for securities of comparable institutions and general conditions in the market for such securities.

The independent valuation is also based on an analysis of a peer group of publicly traded savings and loan holding companies that Feldman Financial considered comparable to us under regulatory guidelines applicable to the independent valuation. Under these guidelines, a minimum of 10 peer group companies are selected from the universe of all publicly traded savings institutions with relatively comparable resources, strategies and financial and other operating characteristics. Such companies must also be traded on an exchange (such as Nasdaq or the New York Stock Exchange). Because of the initial and continuing listing standards of Nasdaq and the New York Stock Exchange, including public float and round lot holders requirements, as well as the fact that many of the smaller converted thrifts ultimately de-list their shares from Nasdaq and/or are acquired by larger companies, each of the peer group companies has a comparatively larger asset size than Pioneer Federal. The peer group companies selected also consisted of fully converted stock institutions that were not subject to an actual or rumored acquisition and that had been in fully converted form for at least one year. In addition, the peer group companies were limited to the following selection criteria: (i) total assets of less than $1.0 billion and (ii) tangible equity-to-assets ratios of greater than 7.0%. In selecting the peer group, Feldman Financial considered certain key criteria such as asset size, stock exchange listing, capital level, profitability and other financial characteristics, operating strategy, and market area. Because of the regulatory appraisal guidelines and the limited number of publicly traded savings institutions and thrift holding companies, the selection process by Feldman Financial resulted in each of the peer group companies having total assets greater than Pioneer Federal's asset size. The peer group also exhibited moderately higher profitability levels than Pioneer Federal. Feldman Financial believed that the peer group's similar operating fundamentals and business strategies with regard to Pioneer Federal provided for a meaningful basis of comparison for valuation pricing purposes.

Included in the independent valuation were certain assumptions as to our pro forma earnings after the conversion that were utilized in determining the appraised value. These assumptions included estimated expenses, an assumed after-tax rate of return on the net offering proceeds of 3.16%, and purchases in the open market of 4.0% of the number of shares of common stock sold in the stock offering by the stock-based benefit plan at the $10.00 purchase price. See "Pro Forma Data" for additional information concerning these assumptions. The use of different assumptions may yield different results.

In applying each of the valuation methods, Feldman Financial considered adjustments to the pro forma market value based on a comparison of PSB Financial with the peer group. Feldman Financial made downward adjustments for earnings growth and viability, liquidity of the stock issue, and marketing of the stock issue. The downward adjustment for earnings growth and viability was prompted by Pioneer Federal's lower return on average assets and less favorable efficiency ratio as compared to the overall peer group companies. The downward adjustment for the liquidity of the issue took into consideration the lower number of shares to be outstanding and the lower market capitalization expected in comparison to the peer group companies. The downward adjustment for marketing of the issue was based on the risk and uncertainty related to a new offering, in the current environment of market volatility. Feldman Financial made no adjustments for financial condition, market area, management, dividend policy, and subscription interest.

On the basis of the foregoing, Feldman Financial's independent valuation states that as of September 2, 2025, the estimated pro forma market value of PSB Financial was $12.0 million. Based on applicable federal

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regulations, this market value forms the midpoint of a range with a minimum of $10.2 million and a maximum of $13.8 million. Our Board of Directors decided to offer the shares of common stock for a price of $10.00 per share primarily because it is the price most commonly used in mutual-to-stock conversions of financial institutions. The number of shares offered for sale in the stock offering equals the aggregate offering price of the shares divided by the price per share. Based on the valuation range and the $10.00 price per share, the minimum of the offering range is 1,020,000 shares, the midpoint of the offering range is 1,200,000 shares and the maximum of the offering range is 1,380,000 shares, or 1,587,700 shares if the maximum amount is increased by 15% because of demand for shares or changes in market conditions.

The following table presents a summary of selected pricing ratios for the peer group companies and for PSB Financial (on a pro forma basis) utilized by Feldman Financial in its independent appraisal. These ratios are based on PSB Financial's book value, tangible book value and core earnings at and for the 12 months ended June 30, 2025. The peer group ratios are based on financial data as of June 30, 2025 and stock prices as of September 2, 2025. Compared to the average pricing of the peer group, our pro forma pricing ratios at the midpoint of the offering range indicated a premium of 165.8% on a price-to-core earnings basis and a discount of 47.9% on a price-to-tangible book value basis.

---

| | | | |
|:---|:---|:---|:---|
| | **Price-to-core <br> earnings <br> multiple<sup>(1)</sup>**  | **Price-to-book <br> value <br> ratio**  | **Price-to-tangible <br> book <br> value ratio**  |
|  **PSB Financial (pro forma basis, assuming completion of the stock <br> offering and conversion):**  |  |  |  |
| &nbsp;&nbsp;&nbsp; Adjusted Maximum  | 55.56x | 52.22% | 52.22% |
| &nbsp;&nbsp;&nbsp; Maximum  | 50.00x | 48.31% | 48.31% |
| &nbsp;&nbsp;&nbsp; Midpoint  | 45.45x | 44.46% | 44.46% |
| &nbsp;&nbsp;&nbsp; Minimum  | 40.00x | 40.14% | 40.14% |
|  **Valuation of peer group companies, all of which are fully converted (historical basis):**  |  |  |  |
| &nbsp;&nbsp;&nbsp; Average  | 17.10x | 82.30% | 85.37% |
| &nbsp;&nbsp;&nbsp; Median  | 16.44x | 83.67% | 84.84% |

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(1) Price-to-earnings multiples calculated by Feldman Financial for the independent appraisal are based on an estimate of "core" or recurring earnings. These ratios are different from those presented in "Pro Forma Data."

(2) Pro forma pricing ratios for PSB Financial calculated by Feldman Financial for the independent appraisal are based on pro forma financial data at and for the 12 months ended June 30, 2025. These ratios are different from those presented in "Pro Forma Data."

The following table presents information regarding the peer group companies utilized by Feldman Financial in its independent appraisal.

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| | | | |
|:---|:---|:---|:---|
| **Company Name**  | **Ticker Symbol**  | **Headquarters**  | **Total Assets as of <br> June 30, 2025 <br> (in millions)**  |
| Affinity Bancshares, Inc.  | AFBI  | Covington, GA  | $933.8 |
| BV Financial, Inc.  | BVFL  | Baltimore, MD  | 908.3 |
| Catalyst Bancorp, Inc.  | CLST  | Opelousas, LA  | 273.8 |
| Central Plains Bancshares, Inc.  | CPBI  | Grand Island, NE  | 500.9 |
| Fifth District Bancorp, Inc.  | FDSB  | New Orleans, LA  | 539.8 |
| First Seacoast Bancorp, Inc.  | FSEA  | Dover, NH  | 604.8 |
| Home Federal Bancorp Inc. of Louisiana  | HFBL  | Shreveport, LA  | 609.5 |
| Magyar Bancorp. Inc.  | MGYR  | New Brunswick, NJ  | 987.5 |
| NSTS Bancorp. Inc.  | NSTS  | Waukegan, IL  | 276.0 |
| Texas Community Bancshares. Inc.  | TCBS  | Mineola, TX  | 444.1 |

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Our Board of Directors reviewed the independent valuation and, in particular, considered the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • our financial condition and results of operations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • a comparison of our financial performance ratios to those of other financial institutions of similar size; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • market conditions generally and, in particular, for financial institutions.

All of these factors are set forth in the independent valuation. Our Board of Directors also reviewed the methodology and the assumptions used by Feldman Financial in preparing the independent valuation and believes that such assumptions were reasonable. The offering range may be amended with the approval of the MDOB and the FDIC, if required, as a result of subsequent developments in our financial condition or market conditions generally. If the independent valuation is updated to amend our pro forma market value to less than $10.2 million or more than $15.87 million, the updated appraisal will be filed with the SEC by means of a post-effective amendment to our registration statement.

 **The independent valuation is not intended, and must not be construed, as a recommendation of any kind as to the advisability of purchasing shares of our common stock. Feldman Financial did not independently verify our financial statements and other information that we provided to them, nor did Feldman Financial independently value our assets or liabilities. The independent valuation considers Pioneer Federal as a going concern and should not be considered as an indication of its liquidation value. Moreover, because the valuation is necessarily based upon estimates and projections of a number of matters, all of which may change from time to time, no assurance can be given that persons purchasing our common stock in the stock offering will thereafter be able to sell their shares at prices at or above the $10.00 offering price per share.** 

Following commencement of the subscription offering, the maximum of the valuation range may be increased by up to 15%, or up to $15.87 million, which would result in a corresponding increase of up to 15% in the maximum of the offering range to up to 1,587,000 shares, to reflect changes in the market and financial conditions or demand for the shares. We will not increase the offering range above this level or decrease the minimum of the offering range without a resolicitation of subscribers. The subscription price of $10.00 per share will remain fixed. See "— Limitations on Common Stock Purchases" as to the method of distribution and allocation of additional shares that may be issued in the event of an increase in the offering range to fill unfilled orders in the stock offering.

If the update to the independent valuation at the conclusion of the stock offering results in an increase in the maximum of the valuation range to more than $15.87 million, and a corresponding increase in the offering range to more than 1,587,000 shares, or a decrease in the minimum of the valuation range to less than $10.2 million and a corresponding decrease in the offering range to less than 1,020,000 shares, then we will promptly return, with interest at a rate of 0.77% per annum, all funds received in the stock offering and cancel deposit account withdrawal authorizations. After consulting with the MDOB and the FDIC, we may terminate the plan of conversion. Alternatively, we may establish a new offering range and commence a resolicitation of subscribers or take other actions as permitted by the MDOB and the FDIC in order to complete the stock offering and conversion. If we conduct a resolicitation, we will notify subscribers of their rights to place a new stock order for a specified period of time. If a person does not respond, we will cancel his or her stock order and return his or her subscription funds, with interest at a rate of 0.77% per annum, and cancel any authorization to withdraw funds from deposit accounts for the purchase of shares of common stock. Any resolicitation following the conclusion of the subscription and community offerings would not exceed 45 days unless further extended with the approval, to the extent approval is required, of the MDOB and the FDIC, for periods of up to 90 days.

An increase in the number of shares to be issued in the stock offering would decrease both a subscriber's ownership interest and our pro forma earnings and stockholders' equity on a per share basis while increasing pro forma earnings and stockholders' equity on an aggregate basis. A decrease in the number of shares to be issued in the stock offering would increase both a subscriber's ownership interest and our pro forma earnings and stockholders' equity on a per share basis, while decreasing pro forma earnings and stockholders' equity on an aggregate basis. For a presentation of the effects of these changes, see "Pro Forma Data."

A copy of Feldman Financial's independent valuation appraisal report is available for inspection at our offices, as specified under "Where You Can Find Additional information."

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#### Subscription Offering and Subscription Rights
According to the plan of conversion, rights to subscribe for shares of common stock in the subscription offering have been granted in the descending order of priority disclosed below. The filling of all valid subscriptions we receive will depend on the availability of common stock after satisfaction of all valid subscriptions of all persons having prior rights in the subscription offering and to the minimum, maximum and overall purchase limitations set forth in the plan of conversion and as described below under "— Limitations on Common Stock Purchases."

***Priority 1: Eligible Account Holders***. Each member with aggregate deposit account balances of $50.00 or more (a "Qualifying Deposit") at the close of business on June 30, 2024 (an "Eligible Account Holder") will receive, without payment therefor, nontransferable subscription rights to purchase, subject to the overall purchase limitations, up to the greater of 30,000 shares ($300,000) of our common stock, 0.10% of the total number of shares of common stock issued in the stock offering, or 15 times the number of shares offered multiplied by a fraction of which the numerator is the Qualifying Deposit of the Eligible Account Holder and the denominator is the aggregate Qualifying Deposits of all Eligible Account Holders, subject to the overall purchase limitations. See "— Limitations on Common Stock Purchases." If there are not sufficient shares available to satisfy all subscriptions, shares will first be allocated so as to permit each Eligible Account Holder to purchase a number of shares sufficient to make his or her total allocation equal to the lesser of 100 shares or the number of shares for which he or she subscribed. Thereafter, unallocated shares will be allocated to each Eligible Account Holder whose subscription remains unfilled in the proportion that the amount of his or her Qualifying Deposit bears to the total amount of Qualifying Deposits of all subscribing Eligible Account Holders whose subscriptions remain unfilled, if an amount so allocated exceeds the amount subscribed for by any one or more Eligible Account Holders, the excess shall be reallocated (one or more times as necessary) among those Eligible Account Holders whose subscriptions are not fully satisfied until all available shares have been allocated.

To ensure proper allocation of shares of our common stock, each Eligible Account Holder must list on his or her stock order form all deposit accounts in which he or she had an ownership interest at the close of business on June 30, 2024. In the event of oversubscription, failure to list an account, or including incomplete or incorrect information, could result in fewer shares being allocated than if all information had been disclosed. In the event of an oversubscription, the subscription rights of Eligible Account Holders who are also our directors or senior officers or their associates will be subordinated to the subscription rights of other Eligible Account Holders to the extent of such portion of their subscription rights attributable to their increased deposits during the year preceding June 30, 2024.

***Priority 2: Tax-Qualified Plan***. The Pioneer State Bank ESOP, which we are establishing in connection with the conversion, will receive, without payment therefor, nontransferable subscription rights to purchase in the aggregate up to 10% of the number of shares of common stock sold in the stock offering. Our ESOP intends to purchase up to 8% of the total number of shares of common stock sold in the stock offering. Alternatively, subject to market conditions and receipt of regulatory approval, the ESOP may instead elect to purchase shares of common stock in the open market following the completion of the stock offering to fill all or a portion of the ESOP's intended subscription.

***Priority 3: Supplemental Eligible Account Holders***. To the extent that there are sufficient shares of common stock remaining after satisfaction of subscriptions by Eligible Account Holders and our tax-qualified employee benefit plans, each member with a Qualifying Deposit at the close of business on June 30, 2024 who is not an Eligible Account Holder ("Supplemental Eligible Account Holder") will receive, without payment therefor, nontransferable subscription rights to purchase up to the greater of 30,000 shares ($300,000) of common stock 0.10% of the total number of shares of common stock issued in the stock offering, or 15 times the number of shares offered multiplied by a fraction of which the numerator is the Qualifying Deposit of the Supplemental Eligible Account Holder and the denominator is the aggregate Qualifying Deposits of all Supplemental Eligible Account Holders, subject to the overall purchase limitations. See "— Limitations on Common Stock Purchases." If there are not sufficient shares available to satisfy all subscriptions, shares will be allocated so as to permit each Supplemental Eligible Account Holder to purchase a number of shares sufficient to make his or her total allocation equal to the lesser of 100 shares of common stock or the number of shares for which he or she subscribed. Thereafter, unallocated shares will be allocated to each Supplemental Eligible Account Holder whose subscription remains unfilled

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in the proportion that the amount of his or her Qualifying Deposit bears to the total amount of Qualifying Deposits of all Supplemental Eligible Account Holders whose subscriptions remain unfilled. If an amount so allocated exceeds the amount subscribed for by any one or more Supplemental Eligible Account Holders, the excess shall be reallocated (one or more times as necessary) among those Supplemental Eligible Account Holders whose subscriptions are not fully satisfied until all available shares have been allocated.

To ensure proper allocation of common stock, each Supplemental Eligible Account Holder must list on the stock order form all deposit accounts in which he or she had an ownership interest at the close of business on [ ], 2025. In the event of oversubscription, failure to list an account, or including incomplete or incorrect information, could result in fewer shares being allocated than if all information had been disclosed.

***Priority 4: Other Members***. To the extent that there are shares of common stock remaining after satisfaction of subscriptions by Eligible Account Holders, our ESOP, and Supplemental Eligible Account Holders, each member as of the close of business on the voting record date of June 30, 2024, who is not an Eligible Account Holder or Supplemental Eligible Account Holder ("Other Members") will receive, without payment therefor, nontransferable subscription rights to purchase up to the greater of 30,000 shares ($300,000) of common stock or 0.10% of the total number of shares of common stock issued in the stock offering, subject to the overall purchase limitations. See "— Limitations on Common Stock Purchases." If there are not sufficient shares available to satisfy all subscriptions, available shares will be allocated so as to permit each Other Member to purchase a number of shares sufficient to make his or her total allocation equal to the lesser of 100 shares of common stock or the number of shares for which he or she subscribed. Thereafter, unallocated shares will be allocated to each Other Member whose subscription remains unfilled in the proportion that the amount of his or her subscription bears to the total amount of subscriptions of all Other Members whose subscriptions remain unfilled.

To ensure proper allocation of common stock, each Other Member must list on the stock order form all deposit accounts in which he or she had an ownership interest at the close of business on June 30, 2024. In the event of oversubscription, failure to list an account, or including incomplete or incorrect information, could result in fewer shares being allocated than if all accounts had been disclosed.

***Expiration Date***. The subscription offering will expire at 12:00 noon, Mountain time, on [ ], 2025, unless extended by us for up to 45 days or such additional periods of up to 90 days with the approval of the MDOB and FDIC, if necessary. Subscription rights will expire whether or not each person eligible to subscribe in the subscription offering can be located. We may decide to extend the expiration date of the subscription offering for any reason, whether or not subscriptions have been received for shares at the minimum, midpoint or maximum of the offering range. Subscription rights that have not been exercised before the expiration date will become void.

We will not execute orders in the stock offering until we have received orders to purchase at least the minimum number of shares of common stock. If we have not received valid purchase orders for at least 1,020,000 shares within 45 days after the [ ], 2026 expiration date, and the MDOB and the FDIC have not consented to an extension, the stock offering will be terminated and all funds delivered to purchase shares of common stock in the stock offering will be returned promptly to the subscribers with interest at a rate of 0.77% per annum, and all deposit account withdrawal authorizations will be cancelled. If an extension beyond [ ], 2026 is granted by the MDOB and the FDIC, we will resolicit subscribers as described under "— Procedure for Purchasing Shares in the Subscription Offering and any Community Offering — Expiration Date."

#### Community Offering
To the extent that shares of common stock remain available for purchase after satisfaction of all subscriptions of the Eligible Account Holders, our ESOP, Supplemental Eligible Account Holders and Other Members, we may offer shares pursuant to the plan of conversion to the public in a community offering, with a preference given to natural persons (and trusts of natural persons) residing in Beaverhead and Powell Counties in Montana.

Subscribers in any community offering may purchase up to 30,000 shares ($300,000) of common stock, subject to the overall purchase limitations. See "— Limitations on Common Stock Purchases." **The opportunity** 

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 **to purchase shares of common stock in any community offering category is subject to our right, in our sole discretion, to accept or reject any such orders in whole or in part either at the time of receipt of an order or as soon as practicable following the expiration date of the stock offering.** 

If we do not have sufficient shares of common stock available to fill the orders of natural persons (and trusts of natural persons) residing in Beaverhead and Powell Counties in Montana, we will allocate the available shares among those persons in a manner that permits each of them, to the extent possible, to purchase the lesser of 100 shares, or the number of shares subscribed for by such person. Thereafter, unallocated shares will be allocated among such persons whose orders remain unsatisfied on an equal number of shares basis per order. If, instead, we do not have sufficient shares of common stock available to fill the orders of other members of the public, we will allocate the available shares among those persons in the manner described above for persons residing in Beaverhead and Powell Counties in Montana, in connection with the allocation process, orders received for shares of common stock in the community offering will first be filled up to a maximum of 2% of the shares sold in the stock offering, and thereafter any remaining shares will be allocated on an equal number of shares basis per order until all shares have been allocated.

The term "residing" or "resident" as used in this prospectus means any person who occupies a dwelling within Beaverhead and Powell Counties in Montana, has a present intent to remain there for a period of time and manifests the genuineness of that intent by establishing an ongoing physical presence there, together with an indication that this presence within Beaverhead and Powell Counties in Montana is something other than merely transitory in nature. We may use our deposit or loan records or other evidence provided to us to decide whether a person is a resident of Beaverhead and Powell Counties in Montana. In all cases, however, the determination shall be in our sole discretion.

***Expiration Date***. The community offering, if any, may begin at the same time as, during or after the subscription offering. We will not execute stock orders until we have received orders to purchase at least the minimum number of shares of common stock. The community offering, if any, is expected to conclude at 12:00 noon, Mountain time, on [ ], 2025 but must terminate no more than 45 days following the expiration of the subscription offering, unless extended with regulatory approval. We may decide to extend the community offering, if any, for any reason and are not required to give purchasers notice of any such extension unless such period extends beyond [ ], 2025. If an extension beyond [ ], 2025 is granted by the required regulatory agencies, we will resolicit persons whose orders we accept in the community offering, giving them an opportunity to confirm, change or cancel their orders. If a person does not respond, we will cancel his or her stock order and return funds, with interest, and cancel any authorization to withdraw funds from deposit accounts for the purchase of shares of common stock. These extensions may not go beyond [ ], 2027, which is two years after the date of the special meeting of members.

#### Syndicated Community Offering
Our Board of Directors may decide to offer for sale shares of common stock not subscribed for in the subscription and community offerings in a syndicated community offering in a manner that will achieve a widespread distribution of our shares of common stock to the general public. If a syndicated community offering is held, KBW will serve as sole book running manager and will assist us in selling our common stock on a best-efforts basis. In such capacity, KBW may form a syndicate of other broker-dealers who are FINRA member firms. Neither KBW nor any registered broker-dealer will have any obligation to take or purchase any shares of the common stock in any syndicated community offering.

In any syndicated community offering, any person may purchase up to 30,000 shares ($300,000) of common stock, subject to the overall purchase limitations. See "— Limitations on Common Stock Purchases." We retain the right to accept or reject in whole or in part any orders in the syndicated community offering. Unless the MDOB and the FDIC permit otherwise, accepted orders for our common stock in the syndicated community offering will first be filled up to a maximum of 2% of the shares sold in the stock offering. Thereafter any remaining shares will be allocated on an equal number of shares per order basis until all shares have been allocated. Unless the syndicated community offering begins during the subscription offering or the community offering, the syndicated community offering will begin as soon as possible after the expiration of the subscription and community offerings. The syndicated community offering must terminate no more than 45 days following the expiration of the subscription offering.

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The syndicated community offering will be conducted according to certain SEC rules applicable to best efforts "min/max" offerings. Orders in the syndicated community offering will be submitted in substantially the same manner as utilized in the subscription and community offerings. Payments in the syndicated offering, however, must be made in immediately available funds (bank checks, money orders, Pioneer Federal deposit account withdrawal authorizations or wire transfers). Personal checks will not be accepted. If the closing of the stock offering does not occur, either as a result of not confirming receipt of at least $10.2 million in gross proceeds (the minimum of the offering range) or the inability to satisfy other closing conditions to the stock offering, the funds will be promptly returned with interest at a rate of 0.77% per annum.

The closing of the syndicated community offering, which will be simultaneous with the closing of the subscription and community offerings, is subject to conditions set forth in an agency agreement among Pioneer Federal and PSB Financial, on one hand, and KBW, on the other hand.

***Expiration Date***. The syndicated community offering may begin concurrently with, during or after the subscription offering, and may terminate at the same time as the subscription offering, but must terminate no more than 45 days following the expiration of the subscription offering, unless extended with regulatory approval. If held, the syndicated community offering is expected to conclude at 12:00 noon, Mountain time, on [ ], 2026 but must terminate no more than 45 days following the expiration of the subscription offering, unless extended with regulatory approval. We may decide to extend the syndicated community offering for any reason and are not required to give purchasers notice of any such extension unless such period extends beyond [ ], 2026. If an extension beyond [ ], 2026 is granted by the required regulatory agencies, we will resolicit persons whose orders we accept in the syndicated community offering, giving them an opportunity to confirm, change or cancel their orders. If a person does not respond, we will cancel his or her stock order and return funds, with interest, and cancel any authorization to withdraw funds from deposit accounts for the purchase of shares of common stock. These extensions may not go beyond [ ], 2027, which is two years after the date of the special meeting of members.

If for any reason we cannot conduct a syndicated community offering of shares of common stock, or if we are unable to find purchasers from the general public to reach the minimum of the offering range, we will try to make other arrangements for the sale of unsubscribed shares, including an underwritten public offering, if possible. The MDOB, the FDIC and FINRA must approve any such arrangements.

#### Limitations on Common Stock Purchases
The plan of conversion includes the following limitations on the number of shares of common stock that may be purchased in the stock offering:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • No person or entity, together with any associate or group of persons acting in concert, may purchase more than the lesser of 60,000 shares ($600,000) or 5% of common stock in all categories of the stock offering combined, except that our ESOP may purchase in the aggregate up to 10% of the number of shares of common stock sold in the stock offering (including shares issued in the event of an increase in the offering range of up to 15%);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • The maximum number of shares of common stock that may be purchased in all categories of the stock offering by our senior officers and directors and their associates, in the aggregate, may not exceed 33% of the shares sold in the stock offering; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • The minimum purchase by each person purchasing shares in the stock offering is 25 shares, to the extent those shares are available.

Depending upon market or financial conditions, with the receipt of any required approvals of the MDOB and the FDIC, we may increase the individual or aggregate purchase limitations to an amount generally not to exceed 5.0% of the common stock sold in the stock offering. If a purchase limitation is increased, subscribers in the subscription offering who ordered the maximum amount of common stock and who indicated a desire on their stock order form to be resolicited, will be given the opportunity to increase their subscriptions up to the then-applicable limit. The effect of this type of resolicitation will be to increase the number of shares of common stock owned by subscribers who choose to increase their subscriptions. If a purchase limitation is increased to 5.0% of the stock sold in the stock offering, such limitation may be further increased to 9.99%, provided that orders for shares of common stock exceeding 5.0% of the shares of

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common stock sold in the stock offering do not exceed in the aggregate 10.0% of the number of shares of common stock sold in the stock offering. Any such requests to purchase additional shares of common stock in the event that a purchase limitation is so increased will be determined by our Board of Directors in its sole discretion.

In the event of an increase in the offering range of up to 15% of the total number of shares of common stock offered in the stock offering, shares will be allocated in the following order of priority according to the plan of conversion:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (i)

to fill our ESOP'S subscription for up to 10% of the number of shares of common stock sold in the stock offering;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (ii)

if there is an oversubscription at the Eligible Account Holder, Supplemental Eligible Account Holder or Other Member levels, to fill unfulfilled subscriptions of these subscribers according to their respective priorities; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (iii)

to fill unfulfilled subscriptions in the community offering, with preference given to natural persons (and trusts of natural persons) residing in Beaverhead and Powell Counties in Montana.

The term "associate" of a person means:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (1)

any corporation or organization, other than Pioneer Federal, PSB Financial or a majority-owned subsidiary of these entities, of which the person is a senior officer, partner or 10% or greater beneficial stockholder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (2)

any trust or other estate in which the person has a substantial beneficial interest or serves as a trustee or in a fiduciary capacity, excluding any employee stock benefit plan in which the person has a substantial beneficial interest or serves as trustee or in a fiduciary capacity; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (3)

any blood or marriage relative of the person, who either resides with the person or who is a director or officer of Pioneer Federal or PSB Financial.

The term "acting in concert" means:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (1)

knowing participation in a joint activity or parallel action towards a common goal whether or not pursuant to an express agreement; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (2)

a combination or pooling of voting or other interests in the securities of an issuer for a common purpose pursuant to any contract, understanding, relationship, agreement, or other arrangement, whether written or otherwise.

In general, a person or company that acts in concert with another person or company ("other party") will also be deemed to be acting in concert with any person or company who is also acting in concert with that other party, except that any tax-qualified employee stock benefit plan will not be deemed to be acting in concert with its trustee or a person who serves in a similar capacity solely for the purpose of determining whether common stock held by the trustee and common stock held by the employee stock benefit plan will be aggregated. Persons having the same address or exercising subscription rights through qualifying accounts registered to the same address generally will be assumed to be associates of and acting in concert with, each other. We have the right to determine, in our sole discretion, whether purchasers are associates or acting in concert.

Our directors are not treated as associates of each other solely because of their membership on the Board of Directors. Shares of common stock purchased in the stock offering will be freely transferable except for shares purchased by our senior officers and directors and except as described below. Any purchases made by any associate of Pioneer Federal or PSB Financial for the explicit purpose of meeting the minimum number of shares of common stock required to be sold in order to complete the stock offering shall be made for investment purposes only and not with a view toward redistribution. In addition, under the guidelines of FINRA, members of FINRA and their associates are subject to certain restrictions on transfer of securities purchased according to subscription rights and to certain reporting requirements upon purchase of these securities. For a further discussion of limitations on purchases of shares of our common

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stock at the time of conversion and thereafter, see "— Restrictions on Transfer of Subscription Rights and Shares," "— Other Restrictions" and "Restrictions on Acquisition of PSB Financial."

#### Plan of Distribution; Selling Agent and Underwriter Compensation
***Subscription and Community Offerings***. To assist in the marketing of our shares of common stock in the subscription offering and any community offering, we have retained KBW, a broker-dealer registered with FINRA. KBW will assist us on a best-efforts basis in the subscription offering and any community offering by:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • advising us on the financial and securities market implications of the stock offering and conversion and the plan of conversion;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • assisting us in structuring and marketing the stock offering;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • reviewing all offering documents, including the prospectus, stock order forms and marketing materials (it being understood that the preparation and filing of any and all such documents will be our responsibility and that of our counsel);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • assisting us in scheduling and preparing meetings with potential investors and broker-dealers, if necessary;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • assisting us in analyzing proposals from outside vendors in connection with the stock offering, as needed;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • assisting us in the drafting of press releases as required or appropriate in connection with the stock offering;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • meeting with our Board of Directors and/or our management to discuss any of the above services; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • providing such other financial advisory and investment banking services as may be reasonably necessary to promote the successful completion of the stock offering.

For these services, KBW has received a non-refundable management fee of $35,000 and will receive at the closing of the stock offering a success fee equal to 1.0% of the gross proceeds of the subscription offering and 1.5% of the gross proceeds of any community offering, subject to a minimum fee of $300,000. The non-refundable management fee will be credited against the success fee. In addition, if KBW is required or requested to provide significant services as a result of a resolicitation of subscribers, it will be entitled to additional compensation for such services, not to exceed $30,000.

***Syndicated Community Offering***. If shares of common stock are sold in a syndicated community offering, we will pay a fee of up to 6.0% of the aggregate dollar amount of common stock sold in the syndicated community offering to KBW and any other broker-dealers participating in the syndicated community offering.

***Expenses***. KBW will also be reimbursed for reasonable out-of-pocket expenses, not to exceed $30,000, and fees and expenses of its legal counsel not to exceed $120,000. These expenses may be increased by additional amounts not to exceed $10,000 and $25,000, respectively, if unusual circumstances arise or a delay or resolicitation occurs, including a delay in the stock offering that would require an update to the financial information included in this prospectus. In no event shall out-of-pocket expenses, including fees and expenses of legal counsel, exceed $175,000. If the plan of conversion is terminated or if KBW's engagement is terminated in accordance with the provisions of the agency agreement, KBW will receive reimbursement of its reasonable out-of-pocket expenses. KBW shall have earned in full, and be entitled to be paid in full, all fees then due and payable at such date of termination. We have separately agreed to pay KBW fees and expenses for serving as records management agent, as described below.

#### Records Management
We have also engaged KBW to serve as conversion and records management agent in connection with the stock offering and conversion. In its role as conversion and records management agent, KBW will assist us in the stock offering by:

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • reviewing our deposit accounts and creating a master file of Pioneer Federal's members (*i.e*., depositors) as of the key record dates;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • assisting us in designing and preparing proxy forms and stock order forms;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • tabulating proxies from members of Pioneer Federal;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • acting as or supporting the inspector of election at Pioneer Federal's special meeting of members;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • operating and managing the Stock Information Center; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • processing stock order forms.

KBW will receive fees of $35,000 for these services, of which $17,500 has been paid as of the date of this prospectus. The remaining balance will be paid upon the closing of the stock offering and conversion. These fees can be increased by up to $12,000 if there are material changes in regulations or the plan of conversion, or there are delays requiring duplicate or replacement processing due to changes in key record dates. KBW will also be reimbursed for its reasonable out-of-pocket expenses not to exceed $10,000.

#### Indemnity
We have agreed to indemnify KBW against liabilities and expenses, including legal fees, incurred in connection with certain claims or litigation arising out of or based upon untrue statements or omissions contained in the stock offering materials for the common stock, including liabilities under the Securities Act, as well as certain other claims and litigation arising out of KBW's engagement with respect to the stock offering and conversion.

#### Solicitation of Officers by Our Officer and Directors
Some of our directors and our executive officer may participate in the solicitation of offers to purchase common stock. These persons will be reimbursed for their reasonable out-of-pocket expenses incurred in connection with the solicitation. Other regular employees of Pioneer State Bank may assist in the stock offering, but only in ministerial capacities, and may provide clerical work in effecting a sales transaction. No offers or sales may be made by tellers or at the teller counters. Investment-related questions of prospective purchasers will be directed to Mr. Willett or registered representatives of KBW. Our other employees have been instructed not to solicit offers to purchase shares of common stock or provide advice regarding the purchase of common stock. We will rely on Rule 3a4-1 under the Exchange Act, and sales of common stock will be conducted within the requirements of Rule 3a4-1, so as to permit officers, directors and employees to participate in the sale of common stock. None of our officers, directors or employees will be compensated in connection with their participation in the stock offering.

#### Prospectus Delivery
To ensure that each purchaser in the subscription offering and any community offering receives a prospectus at least 48 hours before the expiration of the stock offering according to Rule 15c2-8 of the Exchange Act, we may not mail a prospectus any later than five days before the expiration date or hand deliver a prospectus any later than two days before that date. We are not obligated to deliver a prospectus or stock order form by means other than U.S. Mail. Execution of a stock order form will confirm receipt of delivery of a prospectus according to Rule 15c2-8. Stock order forms will be distributed only if preceded or accompanied by a prospectus.

In any syndicated community offering, a prospectus and stock order form in electronic format may be made available on Internet sites or through other online services maintained by KBW or one or more other members of the syndicate, or by their respective affiliates. In those cases, prospective investors may view offering terms online. The members of the syndicate may agree with us to allocate a specific number of shares for sale to online brokerage account holders. Any such allocation for online distributions will be made on the same basis as other allocations.

Other than the prospectus in electronic format, the information on the Internet sites referenced in the preceding paragraph and any information contained in any other Internet site maintained by any member

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of the syndicate is not part of this prospectus or the registration statement of which this prospectus forms a part, has not been approved and/or endorsed by us or by KBW or any other member of the syndicate in its capacity as selling agent or syndicate member and should not be relied upon by investors.

#### Procedure for Purchasing Shares in the Subscription Offering and any Community Offering
***Expiration Date***. The subscription offering and any community offering will expire at 12:00 noon, Mountain time, on [ ], 2025, unless we extend one or both for up to 45 days, with the approval of the MDOB and the FDIC, if required. This extension may be approved by us, in our sole discretion, without notice to purchasers in the stock offering. Any extension of the subscription offering and/or any community offering beyond [ ], 2026 would require the approval of the MDOB and the FDIC. If the stock offering is so extended, all subscribers will be notified and given an opportunity to confirm, change or cancel their orders. If you do not respond to the notice of extension, we will promptly return your funds, with interest at 0.77% per annum, or cancel your deposit account withdrawal authorization. If the offering range is decreased below the minimum of the offering range or is increased above the adjusted maximum of the offering range, all subscribers' stock orders will be cancelled, their deposit account withdrawal authorizations will be cancelled, and funds submitted to us will be returned promptly, with interest at 0.77% per annum, for funds received in the subscription offering and any community offering. We will then resolicit the subscribers, giving them an opportunity to place a new stock order for a period of time.

We reserve the right in our sole discretion to terminate the stock offering at any time and for any reason, in which case we will cancel any deposit account withdrawal authorizations and promptly return all funds submitted, with interest at 0.77% per annum, from the date of receipt as described above.

***Use of Order Forms in the Subscription and Community Offerings***. To purchase shares of common stock in the subscription and community offerings, you must properly complete and sign an original stock order form and remit full payment. We will not accept orders submitted on photocopied or facsimiled stock order forms. All stock order forms must be received (not postmarked) on or before 12:00 noon, Mountain time, on [ ], 2025. We are not required to accept stock order forms that are not received by that time, are not signed or are otherwise executed defectively or are received without full payment or without appropriate deposit account withdrawal instructions. We are not required to notify subscribers of incomplete or improperly executed stock order forms. We have the right to waive or permit the correction of incomplete or improperly executed stock order forms. We do not represent, however, that we will do so and we have no affirmative duty to notify any prospective subscriber of any such defects. You may submit your stock order form and payment by mail using the stock order reply envelope provided or by overnight delivery to the address listed on the stock order form. You may hand-deliver your stock order form to Pioneer Federal's offices located at 202 North Main St., Deer Lodge, Montana and 32 N Washington St., Dillon Montana. **Do not mail stock order forms to Pioneer Federal**.

Once tendered, an order form cannot be modified or revoked without our consent. We reserve the absolute right, in our sole discretion, to reject orders received in the community offering, in whole or in part, at the time of receipt or at any time before completion of the stock offering. If you are ordering shares in the stock offering, you must represent that you are purchasing shares for your own account and that you have no agreement or understanding with any person for the sale or transfer of the shares. We have the right to reject any order submitted in the stock offering by a person who we believe is making false representations or who we otherwise believe, either alone or acting in concert with others, is violating, evading, circumventing, or intends to violate, evade or circumvent the terms and conditions of the plan of conversion. Our interpretation of the terms and conditions of the plan of conversion and of the acceptability of the order forms will be final.

By signing the order form, you will be acknowledging that the common stock is not a deposit or savings account and is not federally insured or otherwise guaranteed by Pioneer Federal, Pioneer State Bank, PSB Financial, the FDIC Corporation or the federal government, and that you received a copy of this prospectus. However, signing the order form will not result in you waiving your rights under the Securities Act or the Exchange Act.

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***Payment for Shares***. Payment for all shares of common stock must accompany all completed original order forms for the purchase to be valid. Payment for shares in the subscription and community offerings may be made by:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (i) personal check, bank check or money order, made payable directly to PSB Financial, Inc.;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (ii)

authorizing us to withdraw available funds (without any early withdrawal penalty) from your Pioneer Federal deposit account(s), other than checking accounts, or individual retirements accounts (IRAs). To use funds from a checking account, submit a check; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (iii) cash.

Cash will only be accepted at Pioneer State Bank's main office located at 202 North Main St., Deer Lodge, Montana and 32 N. Washington St., Dillon, Montana and it will be converted to a bank check. **Please do not remit cash by mail**.

Appropriate means for designating withdrawals from deposit account(s) at Pioneer Federal are provided on the stock order form. The funds designated must be available in the account(s) at the time the stock order form is received. A hold will be placed on these funds, making them unavailable to the member. Funds authorized for withdrawal will continue to earn interest within the account at the contractual rate until the stock offering is completed, at which time the designated withdrawal will be made. Interest penalties for early withdrawal applicable to certificate of deposit accounts will not apply to withdrawals authorized for the purchase of shares of common stock; however, if a withdrawal results in a certificate of deposit account with a balance less than the applicable minimum balance requirement, the certificate of deposit will be canceled at the time of withdrawal without penalty and the remaining balance will earn interest at the current statement savings rate after the withdrawal. In the case of payments made by personal check, these funds must be available in the account(s). Checks and money orders received in the subscription and community offerings will be immediately cashed and placed in a segregated account at Pioneer Federal and will earn interest at 0.77% per annum from the date payment is processed until the stock offering is completed or terminated.

You may not remit any type of third-party checks (including those payable to you and endorsed over to PSB Financial) or a Pioneer Federal line of credit check. You may not designate on your stock order form direct withdrawal from a retirement account at Pioneer Federal. See "— Using, Individual Retirement Account Funds." Additionally, you may not designate on your stock order form a direct withdrawal from Pioneer Federal deposit accounts with check-writing privileges. Instead, a check should be provided. If you request a direct withdrawal, we reserve the right to interpret that as your authorization to treat those funds as if we had received a check for the designated amount, and will immediately withdraw the amount from your checking account(s). If permitted by the MDOB and the FDIC, if we resolicit persons who subscribed for the maximum purchase amount, as described above in "— Limitations on Common Stock Purchases," such purchasers who wish to increase their purchases will not be able to use personal checks to pay for the additional shares, but instead must pay for the additional shares using immediately available funds. Wire transfers will not otherwise be accepted, except as described below.

Once we receive your executed stock order form, it may not be modified, amended or rescinded without our consent, unless the stock offering is not completed by [ ], 2025. If the subscription offering and any community offering are extended past [ ], 2026, all subscribers will be notified and given an opportunity to confirm, change or cancel their orders. If you do not respond to the notice of extension, we will promptly return your funds. with interest at 0.77% per annum, or cancel your deposit account withdrawal authorization. We may resolicit purchasers for a specified period of time.

Applicable federal regulations prohibit Pioneer Federal from lending funds or extending credit to any persons to purchase shares of common stock in the stock offering.

We have the right, in our sole discretion, to permit institutional investors to submit irrevocable orders together with the legally binding commitment for payment and to thereafter pay for the shares of common stock for which they subscribe in the community offering at any time before 48 hours before the completion of the conversion. This payment may be made by wire transfer.

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If our ESOP purchases shares in the stock offering, it will not be required to pay for such shares until completion of the stock offering, provided that there is a loan commitment from an unrelated financial institution or PSB Financial to lend to the ESOP the necessary amount to fund the purchase.

***Using Individual Retirement Account Funds***. If you are interested in using funds in your IRA at Pioneer Federal or other retirement account to purchase shares of common stock in the stock offering, you must do so through an account offered by a custodian that can hold common stock. By regulation, Pioneer Federal's IRAs are not capable of holding common stock. Therefore, if you wish to use funds that are currently in an IRA held at Pioneer Federal, you may not designate on the order form that you wish funds to be withdrawn from the account for the purchase of common stock. The funds you wish to use for the purchase of common stock will instead have to be transferred to an independent trustee or custodian, such as a brokerage firm, which offers the type of retirement accounts that can hold common stock. The purchase must be made through that account. If you do not have such an account, you will need to establish one before placing a stock order. A one-time and/or annual administrative fee may be payable to the independent trustee or custodian. You may select the custodian of your choice. You may, but are under no obligation to, select KBW or one of its affiliated broker dealers, Stifel, Nicolaus & Company, Incorporated or Century Securities Associates, as your IRA custodian. If you do purchase shares of PSB Financial common stock using funds from a KBW, Stifel, Nicolaus & Company, Incorporated, or Century Securities Associates IRA, you acknowledge that KBW, Stifel, Nicolaus & Company, Incorporated, or Century Securities Associates, as applicable, did not recommend or give you advice regarding such purchase. Other than the standard account fees and compensation associated with all IRAs, KBW, Stifel, Nicolaus & Company, incorporated, or Century Securities Associates do not receive additional fees or compensation as a result of the purchase of PSB Financial common stock through a KBW, Stifel, Nicolaus & Company, Incorporated, or Century Securities Associates IRA, or other retirement account. There will be no early withdrawal or Internal Revenue Service interest penalties for these transfers. Individuals interested in using funds in an individual retirement account or any other retirement account, whether held at Pioneer Federal or elsewhere, to purchase shares of common stock should contact the Stock Information Center for guidance as soon as possible, preferably at least two weeks before the [ ], 2025 offering deadline. Processing these transactions takes additional time, and whether such funds can be used may depend on limitations imposed by the institutions where such funds are currently held. We cannot guarantee that you will be able to use such funds.

***Delivery of Shares of Common Stock***. All shares of common stock sold will be issued in book entry form. Stock certificates will not be issued. A book entry statement reflecting ownership of shares of common stock issued in the subscription offering and any community offering will be mailed by our transfer agent to the persons entitled thereto at the registration address noted by them on their stock order forms as soon as practicable following consummation of the stock offering and conversion. We expect trading in the stock to begin on the day of completion of the stock offering and conversion or the next business day. **You may not be able to sell the shares of common stock that you purchased until a statement reflecting your ownership of shares of common stock is available and delivered to you, even though the shares of common stock will have begun trading.** Your ability to sell the shares of common stock before receiving your statement will depend on arrangements you may make with a brokerage firm.

***Other Restrictions***. Notwithstanding any other provision of the plan of conversion, no person is entitled to purchase any shares of common stock to the extent the purchase would be illegal under any federal or state law or regulation, including state "blue sky" regulations, or would violate regulations or policies of the Financial Industry Regulatory Authority, particularly those regarding free riding and withholding. We may ask for an acceptable legal opinion from any purchaser as to the legality of his or her purchase and we may refuse to honor any purchase order if an opinion is not timely furnished. In addition, we are not required to offer shares of common stock to any person who resides in a foreign country, or in a state of the United States with respect to which any of the following apply:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (i)

a small number of persons otherwise eligible to subscribe for shares under the plan of conversion reside in such state:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (ii)

the offer or sale of shares of common stock to such persons would require us or our employees to register, under the securities laws of such state, as a broker or dealer or to register or otherwise qualify our securities for sale in such state; or

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (iii)

such registration or qualification would be impracticable for reasons of cost or otherwise.

#### Restrictions on Transfer of Subscription Rights and Shares
 **Applicable banking regulations prohibit any person with subscription rights, including the Eligible Account Holders, Supplemental Eligible Account Holders, and Other Members, from transferring or entering into any agreement or understanding to transfer the legal or beneficial ownership of the subscription rights issued under the plan of conversion or the shares of common stock to be issued upon their exercise. These rights may be exercised only by the person to whom they are granted and only for his or her account. When registering your stock purchase on the stock order form, you cannot add the name(s) of others for joint stock registration who do not have subscription rights or who qualify only in a lower subscription rights category than you do. Taking this action may jeopardize your subscription rights. Each person exercising subscription rights will be required to certify that he or she is purchasing shares solely for his or her own account and that he or she has no agreement or understanding regarding the sale or transfer of such shares. The regulations also prohibit any person from offering or making an announcement of an offer or intent to make an offer to purchase subscription rights or shares of common stock to be issued upon their exercise before completion of the stock offering.** 

 **We will pursue any and all legal and equitable remedies if we become aware of the transfer of subscription rights, and we will not honor orders that we believe involve the transfer of subscription rights.** 

#### Stock Information Center
Our banking office personnel may not, by law, assist with investment-related questions about the stock offering. If you have questions regarding the conversion or stock offering, call our Stock Information Center at **[ ]** (toll-free). The Stock Information Center is open Monday through Friday, between 9:00 a.m. and 3:00 p.m., Mountain time, excluding bank holidays.

#### Liquidation Rights
The plan of conversion provides for the establishment, upon the completion of the stock offering and conversion, of a "liquidation account" for the benefit of Eligible Account Holders and Supplemental Eligible Account Holders in an amount equal to the total equity of Pioneer Federal as of the date of its latest balance sheet contained in this prospectus.

In the unlikely event of a complete liquidation of Pioneer Federal before the completion of the stock offering and conversion, all claims of creditors of Pioneer Federal, including those of its members (to the extent of their deposit balances), would be paid first. Then, if there were any assets of Pioneer Federal remaining, members of Pioneer Federal would receive those remaining assets, pro rata, based upon the deposit balances in their deposit accounts in Pioneer Federal immediately before liquidation.

In the unlikely event that Pioneer State Bank were to liquidate after the stock offering and conversion (and conversion-related transactions), all claims of creditors, including those of depositors, would be paid first, followed by distribution of the "liquidation account" to certain depositors, with any assets remaining thereafter distributed to PSB Financial in its capacity as the sole holder of Pioneer State Bank capital stock. According to applicable federal rules and regulations, a post-conversion merger, consolidation, sale of bulk assets or similar combination or transaction with another insured savings institution would not be considered a liquidation and, in these types of transactions, the liquidation account would be assumed by the surviving institution. Given this treatment, the "liquidation account" formed as part of this transaction will be assumed by Pioneer State Bank and maintained for the benefit of certain depositors post-conversion and post-merger in accordance with applicable federal rules and regulations.

The purpose of the liquidation account is to provide Eligible Account Holders and Supplemental Eligible Account Holders who maintain their deposit accounts with Pioneer State Bank after the stock offering and conversion with a liquidation interest in the unlikely event of the complete liquidation of Pioneer State Bank after the stock offering and conversion. Each Eligible Account Holder and Supplemental Eligible Account Holder that continues to maintain his or her deposit account at Pioneer State Bank, would be entitled, on a complete liquidation of Pioneer State Bank after the stock offering and conversion, to an interest in the liquidation account before any payment to the stockholders of PSB Financial. Each Eligible

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Account Holder would have an initial interest in the liquidation account for each deposit account, including savings accounts, transaction accounts such as negotiable order of withdrawal accounts, money market deposit accounts, and certificates of deposit, with a balance of $50 or more held in Pioneer Federal as of the close of business on June 30, 2024. Each Eligible Account Holder would have a pro rata interest in the total liquidation account for each such deposit account, based on the proportion that the balance of each such deposit account as of the close of business on June 30, 2024 bears to the balance of all such deposit accounts in Pioneer Federal on such date. Each Supplemental Eligible Account Holder would have an initial interest in the liquidation account for each deposit account, including savings accounts, transaction accounts such as negotiable order of withdrawal accounts, money market deposit accounts, and certificates of deposit, with a balance of $50 or more held in Pioneer Federal as of the close of business on June 30, 2024. Each Supplemental Eligible Account Holder would have a pro rata interest in the total liquidation account for each such deposit account, based on the proportion that the balance of each such deposit account as of the close of business on June 30, 2024 bears to the balance of all such deposit accounts in Pioneer Federal on such date.

If, however, on any December 31 annual closing date commencing on or after the effective date of the stock offering and conversion, the amount in any such deposit account is less than the amount in the deposit account as of the close of business on June 30, 2024 or [ ], 2025, respectively, or any other annual closing date, then the interest in the liquidation account relating to such deposit account would be reduced from time to time by the proportion of any such reduction, and such interest will cease to exist if such deposit account is closed. In addition, no interest in the liquidation account would ever be increased despite any subsequent increase in the related deposit account. Payment pursuant to liquidation rights of Eligible Account Holders and Supplemental Eligible Account Holders would be separate and apart from the payment of any insured deposit accounts to such depositor. Any assets remaining after the above liquidation rights of Eligible Account Holders and Supplemental Eligible Account Holders are satisfied would be distributed to PSB Financial in its capacity as the sole stockholder of Pioneer Federal.

#### Material Income Tax Consequences
Consummation of the merger and stock offering is subject to the prior receipt of an opinion of counsel or tax advisor with respect to federal and state income taxation that the merger and stock offering will not be a fully taxable transaction to Pioneer Federal, PSB Financial, Eligible Account Holders, Supplemental Eligible Account Holders, and Other Members. Opinions of counsel or tax advisors are not binding on the Internal Revenue Service or any state taxing authority, and such authorities may disagree with such opinions. In the event of such disagreement, there can be no assurance that Pioneer Federal or PSB Financial would prevail in a judicial or administrative proceeding.

Pioneer Federal and PSB Financial have received an opinion from its counsel, Godfrey & Kahn, S.C., regarding the material federal income tax consequences of the merger and stock offering, which includes the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1. The change in the form of operation of Pioneer Federal from a mutual savings and loan association to a stock form of incorporation in the form of Pioneer State Bank pursuant to the merger will constitute a "reorganization" within the meaning of Section 368(a)(1)(F) of the Internal Revenue Code of 1986, as amended, and no gain or loss will be recognized to either Pioneer Federal or Pioneer State Bank as a result of the merger.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2. The assets of Pioneer Federal will have the same basis and holding period in the hands of Pioneer State Bank as in the hands of Pioneer Federal immediately before the merger.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3. Gain or loss, if any, will be realized by Eligible Account Holders and Supplemental Account Holders, if any, upon the issuance to them of deposit accounts in Pioneer State Bank, the interest in the liquidation account of Pioneer State Bank, and the non-transferrable subscription rights to purchase stock of PSB Financial. Any such gain will be recognized by such account holders, but only in an amount not in excess of the fair market value, if any, of the non-transferrable subscription rights received.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4. The basis of the account holders' deposit accounts in Pioneer State Bank will be the same as the basis of their deposit accounts in Pioneer Federal. The basis of each account holder's interest in the liquidation account of Pioneer State Bank will be equal to the fair market value thereof, if any.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 5. The basis of the PSB Financial stock to its shareholders will be the purchase price thereof, plus in the case of stock acquired pursuant to subscription rights, the basis, if any, in the subscription rights. The holding period of the PSB Financial common stock purchased pursuant to the exercise of non-transferable subscription rights will commence on the date on which the right to acquire such stock was exercised.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 6. Pioneer State Bank will not recognize any gain or loss upon the receipt of money from PSB Financial in exchange for shares of common stock of Pioneer State Bank.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7. No gain or loss will be recognized by PSB Financial on the receipt of money in exchange for shares of PSB Financial common stock sold in the stock offering.

In the view of Feldman Financial (which is acting as independent appraiser of the value of the shares of PSB Financial common stock), the subscription rights do not have any value. Feldman Financial's view is not binding on the Internal Revenue Service. As described above, if the subscription rights granted to Eligible Account Holders, Supplemental Eligible Account Holders and Other Members are deemed to have an ascertainable value, receipt of these rights could result in taxable gain to those Eligible Account Holders, Supplemental Eligible Account Holders and Other Members in an amount equal to their value, and a taxable gain with respect to the distribution could be realized within the consolidated group of PSB Financial that includes Pioneer Federal. Eligible Account Holders, Supplemental Eligible Account Holders and Other Members are encouraged to consult with their own tax advisors as to the tax consequences in the event that subscription rights are deemed to have an ascertainable value.

The Internal Revenue Service will not issue private letter rulings with respect to the issue of whether nontransferable subscription rights have value. Unlike private letter rulings, an opinion of counsel or the view of an independent appraiser is not binding on the Internal Revenue Service, and the Internal Revenue Service could disagree with the conclusions reached therein. Depending on the conclusion or conclusions with which the Internal Revenue Service disagrees, the Internal Revenue Service may take the position that the transaction is taxable to any one or more of Pioneer Federal, its members, PSB Financial, Eligible Account Holders, Supplemental Eligible Account Holders and Other Members who exercise their subscription rights. In the event of such disagreement, there can be no assurance that Pioneer Federal or PSB Financial would prevail in a judicial or administrative proceeding.

The federal income tax opinion has been filed with the SEC as an exhibit to PSB Financial's registration statement. An opinion regarding the Montana income tax consequences consistent with the federal income tax opinion has been issued by Wipfli LLP.

#### Restrictions on Purchase or Transfer of Our Shares after the Stock Offering and Conversion
The shares of common stock being acquired by the directors and executive officer of Pioneer State Bank, and their associates, are being acquired for investment purposes, and not with a view towards resale. All shares of common stock purchased in the stock offering by a director or executive officer of PSB Financial or Pioneer State Bank generally may not be sold for a period of one year following the closing of the stock offering and conversion, except in the event of the death of the director or executive officer. Each statement of ownership or certificate for restricted shares will bear a legend giving notice of this restriction on transfer, and instructions will be issued to the effect that any transfer within this time period of any certificate or ownership of the shares other than as provided above is a violation of the restriction. Any shares of common stock issued at a later date as a stock dividend, stock split or otherwise with respect to the restricted stock will be similarly restricted. The directors and executive officer of PSB Financial also will be restricted by the insider trading rules under the Exchange Act.

Purchases of shares of our common stock by any of our directors, executive officer and their associates, during the three-year period following the closing of the stock offering and conversion, may be made only through a broker or dealer registered with the SEC, except with the prior written approval of the MDOB and the FDIC. This restriction does not apply, however, to negotiated transactions involving more than 1% of our outstanding common stock, to purchases of our common stock to fund stock options by one or more stock-based benefit plans or to any of our tax-qualified employee stock benefit plans or nontax-qualified employee stock benefit plans, including any stock-based benefit plans.

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MDOB and FDIC regulations prohibit PSB Financial from repurchasing its shares of common stock during the first year following the stock offering and conversion, unless compelling business reasons exist to do so or to fund management recognition plans that have been ratified by stockholders (with MDOB and FDIC approval) or tax-qualified employee stock benefit plans.

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#### RESTRICTIONS ON ACQUISITION OF PSB FINANCIAL
Although the Board of Directors of PSB Financial is not aware of any effort that might be made to obtain control of PSB Financial after the stock offering and conversion, the Board of Directors believes that it is appropriate to include certain provisions in PSB Financial's articles of incorporation and bylaws to protect the interests of PSB Financial and its stockholders from takeovers that our Board of Directors might conclude are not in the best interests of Pioneer State Bank, PSB Financial or its stockholders.

The following discussion is a general summary of the material provisions of PSB Financial's articles of incorporation and bylaws, Pioneer State Bank's state stock charter and bylaws, Maryland corporation law and certain other regulatory provisions that may be deemed to have an "anti-takeover" effect. The following description of certain of these provisions is necessarily general and, with respect to provisions contained in PSB Financial's articles of incorporation and bylaws and Pioneer State Bank's state stock charter and bylaws, is qualified in each case by the specific text of the document in question. Each of these documents is part of Pioneer State Bank's application for merger filed with the FDIC, and except for Pioneer State Bank's state stock charter and bylaws, PSB Financial's registration statement filed with the SEC. See "Where You Can Find Additional Information."

#### PSB Financial's Articles of Incorporation and Bylaws
PSB Financial's articles of incorporation and bylaws contain a number of provisions relating to corporate governance and rights of stockholders that might discourage future takeover attempts. As a result, stockholders who might desire to participate in such transactions may not have an opportunity to do so. In addition, these provisions will also render the removal of the Board of Directors or management of PSB Financial more difficult.

***Directors***. The Board of Directors will be divided into three classes. The members of each class will be elected for a term of three years and only one class of directors will be elected annually. Therefore, it would take at least two annual elections to replace a majority of our directors. The bylaws establish qualifications for Board members, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • a prohibition on service as a director by a person who is a director, officer or a 10% stockholder of a competitor of Pioneer State Bank;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • a prohibition on service as a director by a person (i) who has been convicted of a crime involving dishonesty or breach of trust that is punishable by imprisonment for a term exceeding one year under state or federal law, (ii) who is currently charged in an information, indictment or other complaint with the commission of or participation in such a crime, or (iii) against whom a financial or securities regulatory agency has, within the past ten years, issued a cease and desist, consent or other formal order, other than a civil money penalty, which order is subject to public disclosure by such agency;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • a prohibition on service as a director by a person who is party to any agreement or understanding that (i) provides such person with material benefits that are contingent upon PSB Financial entering into a merger or similar transaction in which it is not the surviving entity, (ii) materially limits such person's voting discretion with respect to PSB Financial's strategic direction, or (iii) materially impairs such person's ability to discharge his or her fiduciary duties with respect to the fundamental strategic direction of PSB Financial;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • a requirement that any person proposed to serve as a director (other than the initial directors and other than directors who are also officers of PSB Financial or Pioneer State Bank) has maintained his or her principal residence for a period of at least one year immediately before his or her nomination or appointment to the Board of Directors within the state of Montana (unless otherwise approved by a vote of two-thirds of the Board);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • a prohibition on service as a director by a person who is 75 years of age or older (other than the initial directors and other person serving as a director of Pioneer Federal immediately prior to its conversion to Pioneer State Bank); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • a prohibition on service as a director by a person who has lost more than one election for service as a director of PSB Financial.

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Further, the bylaws impose notice and information requirements in connection with the nomination by stockholders of candidates for election to the Board of Directors or the proposal by stockholders of business to be acted upon at an annual meeting of stockholders. Such notice and information requirements are applicable to all stockholder business proposals and nominations and are in addition to any requirements under the federal securities laws.

***Restrictions on Calling Special Meetings***. The bylaws provide that special meetings of stockholders can be called by only the President, the Chief Executive Officer or the Chairperson of the Board of Directors, a majority of the total number of directors that PSB Financial would have if there were no vacancies on the Board of Directors, or the Secretary upon the written request of stockholders entitled to cast at least a majority of all votes entitled to vote at the meeting.

***Prohibition of Cumulative Voting***. The articles of incorporation prohibit cumulative voting for the election of directors.

***Limitation of Voting Rights***. The bylaws provide that the default provisions of the Control Share Acquisition Act (the "Control Act"), Title 3, Subtitle 7 of the Maryland General Corporate Law, do not apply. This opt-out means that an "acquiring person" of "control shares" (both as defined in the Control Act) is entitled to vote their entire ownership interest in any shares owned or controlled by them. This provision may be repealed by a majority of the total number of directors that PSB Financial would have if there were no vacancies on the Board of Directors and may, by any successor bylaw, apply to prior or subsequent Control Share Acquisition (as defined in the Control Act), which would limit the voting rights associated with any such control shares.

***Restrictions on Removing Directors from Office***. The articles of incorporation provide that directors may be removed only for cause, and only by the affirmative vote of the holders of at least two-thirds of the voting power of all of our then-outstanding capital stock entitled to vote generally in the election of directors, voting together as a single class.

***Stockholder Nominations and Proposals***. The bylaws provide that any stockholder desiring to make a nomination for the election of directors or a proposal for new business at an annual meeting of stockholders must submit written notice to PSB Financial at least 90 days before and not earlier than 100 days before the anniversary date of the previous year's annual meeting. However, if the date of the annual meeting is advanced by more than 30 days from the anniversary date of the preceding year's annual meeting then stockholders must submit written notice to PSB Financial no earlier than the day on which public disclosure of the date of such annual meeting is first made and no later than 10 days following the earlier of the day on which public disclosure of the date of the meeting is first made or the day notice of the meeting was mailed to stockholders.

***Authorized but Unissued Shares***. After the stock offering and conversion, PSB Financial will have authorized but unissued shares of common and preferred stock. The articles of incorporation authorize 500,000 shares of serial preferred stock. PSB Financial is authorized to issue preferred stock from time to time in one or more series subject to applicable provisions of law, and the Board of Directors is authorized to fix the preferences, conversion and other rights, voting powers, restrictions, limitations as to dividends, qualifications and terms and conditions of redemption of such shares, in addition, the articles of incorporation provide that a majority of the total number of directors that PSB Financial would have if there were no vacancies on the Board of Directors may, without action by the stockholders, amend the articles of incorporation to increase or decrease the aggregate number of shares of stock of any class or series that PSB Financial has the authority to issue. In the event of a proposed merger, tender offer or other attempt to gain control of PSB Financial that the Board of Directors does not approve, it would be possible for the Board of Directors to authorize the issuance of a series of preferred stock with rights and preferences that would impede the completion of the transaction. An effect of the possible issuance of preferred stock therefore may be to deter a future attempt to gain control of PSB Financial. The Board of Directors has no present plan or understanding to issue any preferred stock.

***Amendments to Articles of Incorporation and Bylaws***. In addition to as provided under "Authorized but Unissued Shares," above, regarding the amendment of the articles of incorporation by the Board of Directors to increase or decrease the number of shares authorized for issuance, or as otherwise allowed by

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law, the Board of Directors may amend or repeal any provision of the articles of incorporation or bylaws without shareholder consent unless required by Maryland General Corporation Law; provided, however, that approval by at least 80% of the outstanding voting stock is generally required to amend the following provisions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (i) ability of the majority of Board of Directors to amend and repeal the bylaws;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (ii)

the authority of the Board of Directors to provide for the issuance of preferred stock;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (iii) the provision regarding no preemptive rights of the stockholders;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (iv)

the provisions regarding directors' power, number of directors, cumulative voting, board vacancies, removal of directors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (v)

the number of stockholders constituting a quorum or required for stockholder consent;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (vi)

the provision regarding stockholder proposals and nominations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (vii)

the indemnification of current and former directors and officers, as well as employees and other agents, by PSB Financial;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (viii)

the provision regarding selection of forum;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (ix)

the limitation of liability of officers and directors to PSB Financial for money damages; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (x)

the provision of the articles of incorporation requiring approval of at least 80% of the outstanding voting stock to amend the provisions of the articles of incorporation set forth in (i) through (ix) of this list and the provisions related to amendment of the articles of incorporation.

#### Maryland Corporate Law
Under Maryland law, "business combinations" between a Maryland corporation and an "interested stockholder" or an affiliate of an interested stockholder are prohibited for five years after the most recent date on which the interested stockholder becomes an interested stockholder. These business combinations include a merger, consolidation, statutory share exchange or, in circumstances specified in the statute, certain transfers of assets, certain stock issuances and transfers, liquidation plans and reclassifications involving interested stockholders and their affiliates or issuance or reclassification of equity securities. Maryland law defines an interested stockholder as: (i) any person who beneficially owns 10% or more of the voting power of a corporation's voting stock after the date on which the corporation had 100 or more beneficial owners of its stock; or (ii) an affiliate or associate of the corporation at any time after the date on which the corporation had 100 or more beneficial owners of its stock who, within the two-year period before the date in question, was the beneficial owner of 10% or more of the voting power of the then-outstanding voting stock of the corporation. A person is not an interested stockholder under the statute if the Board of Directors approved in advance the transaction by which the person otherwise would have become an interested stockholder. However, in approving a transaction, the Board of Directors may provide that its approval is subject to compliance, at or after the time of approval, with any terms and conditions determined by the Board of Directors.

After the five-year prohibition, any business combination between the Maryland corporation and an interested stockholder generally must be recommended by the Board of Directors of the corporation and approved by the affirmative vote of at least: (i) of the votes entitled to be cast by holders of outstanding shares of voting stock of the corporation; and (ii) two-thirds of the votes entitled to be cast by holders of voting stock of the corporation other than shares held by the interested stockholder with whom or with whose affiliate the business combination is to be effected or held by an affiliate or associate of the interested stockholder. These super-majority vote requirements do not apply if the corporation's common stockholders receive a minimum price, as defined under Maryland law, for their shares in the form of cash or other consideration in the same form as previously paid by the interested stockholder for its shares.

#### Pioneer State Bank's Stock Charter
Following the conversion, the articles of incorporation of Pioneer State Bank will provide that for a period of five years from the closing of the stock offering and conversion, no person (including a group

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acting in concert) other than PSB Financial may offer directly or indirectly to acquire the beneficial ownership of more than 10% of any class of equity security of Pioneer State Bank. This provision does not apply to any tax-qualified employee benefit plan of Pioneer State Bank or PSB Financial, or to an underwriter or member of an underwriting or selling group involving the public sale or resale of securities of Pioneer State Bank or any of its subsidiaries, so long as after the sale or resale, no underwriter or member of the selling group is a beneficial owner, directly or indirectly, of more than 10% of any class of equity securities of Pioneer State Bank. In addition, during this five-year period, all shares owned over the 10% limit may not be voted on any matter submitted to stockholders for a vote.

#### Conversion Regulations
Federal regulations prohibit any person from making an offer, announcing an intent to make an offer or participating in any other arrangement to purchase stock or acquiring stock or subscription rights in a converting institution or its holding company from another person before completion of its conversion. Further, without the FDIC's prior written approval, no person may make an offer or announcement of an offer to purchase shares or actually acquire shares of a converted institution or its holding company for a period of three years from the date of the completion of the conversion if, upon the completion of such offer, announcement or acquisition, the person would become the beneficial owner of more than 10% of the outstanding stock of the institution or its holding company. Federal regulations have defined "person" to include any individual, group acting in concert, corporation, partnership, association, joint stock company, trust, unincorporated organization or similar company, a syndicate or any other group formed for the purpose of acquiring, holding or disposing of securities of an insured institution. However, offers made exclusively to a bank or its holding company, or an underwriter or member of a selling group acting on the converting institution's or its holding company's behalf for resale to the general public are excepted. The regulation also provides civil penalties for willful violation or assistance in any such violation of the regulation by any person connected with the management of the converting institution or its holding company or who controls more than 10% of the outstanding shares or voting rights of a converted institution or its holding company.

#### Change in Control Regulations
Under the Change in Bank Control Act, a federal statute, no person may acquire control of a bank holding company unless the Federal Reserve Board has been given 60 days' prior written notice and has not issued a notice disapproving the proposed acquisition. In addition, Federal Reserve Board regulations provide that no company may acquire control of a bank holding company without the prior approval of the Federal Reserve Board.

Control, as defined under federal law, means ownership, control of or holding irrevocable proxies representing 25% or more of any class of voting stock, control in any manner of the election of a majority of the institution's directors, or a determination by the Federal Reserve Board that the acquirer has the power to direct, or directly or indirectly to exercise a controlling influence over, the management or policies of the institution.

Acquisition of 10% or more of any class of a bank holding company's voting stock, if the acquirer is also subject to any one of eight "control factors," constitutes a rebuttable determination of control under Federal Reserve Board regulations. Such control factors include the acquirer being one of the two largest stockholders. The determination of control may be rebutted by submission to the Federal Reserve Board, before the acquisition of stock or the occurrence of any other circumstances giving rise to such determination, of a statement setting forth facts and circumstances which would support a finding that no control relationship will exist and containing certain undertakings. The regulations provide that persons or companies that acquire beneficial ownership exceeding 10% or more of any class of a bank holding company's stock who do not intend to participate in or seek to exercise control over a bank holding company's management or policies may qualify for a safe harbor by filing with the Federal Reserve Board a certification form that states, among other things, that the holder is not in control of such institution, is not subject to a rebuttable determination of control and will take no action which would result in a determination or rebuttable determination of control without prior notice to or approval of the Federal Reserve Board, as

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applicable. There are also rebuttable presumptions in the regulations concerning whether a group "acting in concert" exists, including presumed action in concert among members of an "immediate family."

The Federal Reserve Board may prohibit an acquisition of control if it finds, among other things, that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • the acquisition would result in a monopoly or substantially lessen competition;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • the financial condition of the acquiring person might jeopardize the financial stability of the institution;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • the competence, experience or integrity of the acquiring person indicates that it would not be in the interest of the depositors or the public to permit the acquisition of control by such person; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • the acquisition would have an adverse effect on the FDIC's Deposit Insurance Fund.

In addition, a bank holding company must obtain the approval of the Federal Reserve Board before acquiring voting control of more than 5% of any class of voting stock of another bank or another bank holding company.

#### DESCRIPTION OF CAPITAL STOCK OF PSB FINANCIAL

#### General
PSB Financial is authorized to issue 5,000,000 shares of common stock, par value of $0.01 per share, and 500,000 shares of preferred stock, par value $0.01 per share. PSB Financial currently expects to issue in the stock offering up to 1,587,000 shares of common stock. It will not issue shares of preferred stock in the stock offering. Each share of PSB Financial common stock will have the same relative rights as, and will be identical in all respects to, each other share of common stock. Upon payment of the subscription price for the common stock, according to the plan of conversion, all of the shares of common stock will be duly authorized, fully paid and nonassessable.

The shares of common stock of PSB Financial will represent non-withdrawable capital, will not be an account of an insurable type, and will not be insured by the FDIC or any other governmental agency.

#### Common Stock
***Dividends***. PSB Financial can pay dividends on its common stock if, after giving effect to such distribution, (i) it would be able to pay its indebtedness as the indebtedness comes due in the usual course of business and (ii) its total assets exceed the sum of its liabilities and the amount needed, if it were to be dissolved at the time of the distribution, to satisfy the preferential rights upon dissolution of any holders of capital stock who have a preference in the event of dissolution. The holders of common stock of PSB Financial will be entitled to receive and share equally in dividends as may be declared by the Board of Directors out of funds legally available therefor. If PSB Financial issues shares of preferred stock, the holders of preferred stock may have a priority over the holders of the common stock with respect to dividends.

***Voting Rights***. Upon consummation of the stock offering and conversion, the holders of common stock of PSB Financial will have exclusive voting rights in PSB Financial. They will elect its Board of Directors and act on other matters as are required to be presented to them under Maryland law or as are otherwise presented to them by the Board of Directors. Generally, each holder of common stock will be entitled to one vote per share and will not have any right to cumulate votes in the election of directors. If PSB Financial issues shares of preferred stock, holders of the preferred stock may also possess voting rights. Amendments to the articles of incorporation generally require a majority of directors, and certain amendments require an 80% stockholder vote.

As a stock bank, corporate powers and control of Pioneer State Bank will be vested in its Board of Directors, who elect the officers of Pioneer State Bank and who fill any vacancies on the Board of Directors. Voting rights in Pioneer State Bank will be vested exclusively in the owner of the shares of capital stock of Pioneer State Bank, which will be PSB Financial, and voted at the direction of PSB Financial's Board of Directors. Consequently, the holders of the common stock of PSB Financial will not have direct control of Pioneer State Bank.

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***Liquidation***. In the event of any liquidation, dissolution or winding up of Pioneer State Bank, PSB Financial, as the owner of all of Pioneer State Bank's capital stock, would be entitled to receive all assets of Pioneer State Bank available for distribution, after payment or provision for payment of all debts and liabilities of Pioneer State Bank, including all deposit accounts and accrued interest thereon, and after distribution of the balance in the liquidation account to Eligible Account Holders and Supplemental Eligible Account Holders. In the event of liquidation, dissolution or winding up of PSB Financial, the holders of its common stock would be entitled to receive, after payment or provision for payment of all its debts and liabilities, all of the assets of PSB Financial available for distribution. If preferred stock is issued by PSB Financial, the holders thereof may have a priority over the holders of the common stock in the event of liquidation or dissolution.

***Preemptive Rights; Redemption***. Holders of the common stock of PSB Financial will not be entitled to preemptive rights with respect to any shares that may be issued, unless such preemptive rights are approved by the Board of Directors. The common stock is not subject to redemption.

#### Preferred Stock
No shares of PSB Financial's authorized preferred stock will be issued as part of the stock offering and conversion. Preferred stock may be issued with preferences and designations as our Board of Directors may from time to time determine. Our Board of Directors may, without stockholder approval, issue shares of preferred stock with voting, dividend, liquidation and conversion rights that could dilute the voting strength of the holders of the common stock and may assist management in impeding an unfriendly takeover or attempted change in control.

#### Forum Selection for Certain Stockholder Lawsuits
The articles of incorporation of PSB Financial provide that, unless PSB Financial consents in writing to the selection of an alternative forum, the sole and exclusive forum for (i) any derivative action or proceeding brought on behalf of PSB Financial, (ii) any action asserting a claim of breach of a fiduciary duty owed by any director, officer or other employee of PSB Financial to PSB Financial or PSB Financial's stockholders, (iii) any action asserting a claim arising pursuant to any provision of the Maryland General Corporation Law, or (iv) any action asserting a claim governed by the internal affairs doctrine shall be a state or federal court located within the State of Maryland, in all cases subject to the court's having personal jurisdiction over the indispensable parties named as defendants. This exclusive forum provision does not apply to claims arising under the federal securities laws. Under the articles of incorporation, any person or entity purchasing or otherwise acquiring any interest in shares of capital stock of PSB Financial shall be deemed to have notice of and consented to the exclusive forum provision of the articles of incorporation. This exclusive forum provision may limit a stockholder's ability to bring a claim in a judicial forum it finds favorable for disputes with PSB Financial and its directors, officers, and other employees or may cause a stockholder to incur additional expense by having to bring a claim in a judicial forum that is distant from where the stockholder resides, or both. See "Risk Factors — Risks Related to the Stock Offering" — Our articles of incorporation provide that, subject to limited exception, state and federal courts in the State of Maryland are the sole and exclusive forum for certain stockholder litigation matters, which could limit our stockholders' ability to obtain a favorable judicial forum for disputes with us or our directors, officers, and other employees."

#### TRANSFER AGENT
The transfer agent and registrar for PSB Financial's common stock is .

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#### EXPERTS
The financial statements of Pioneer Federal at and for the years ended December 31, 2024 and 2023 have been included herein and in the registration statement in reliance upon the report of Elliott Davis, LLC, an independent registered public accounting firm, appearing elsewhere herein, and upon the authority of said firm as experts in accounting and auditing.

Feldman Financial has consented to the publication in this prospectus of the summary of its report to PSB Financial setting forth its opinion as to the estimated pro forma market value of the shares of common stock upon completion of the stock offering and conversion and of its letter with respect to subscription rights.

#### CHANGE IN AUDITOR
On January 29, 2025, Pioneer Federal dismissed Wipfli LLP and engaged Elliott Davis, LLC as its independent auditor. This change in auditors was approved by Pioneer Federal's Audit Committee. Elliott Davis, LLC was engaged to audit the financial statements of Pioneer Federal for the years ended December 31, 2024 and 2023 according to auditing standards of the Public Company Accounting Oversight Board.

Before the engagement of Elliott Davis, LLC, Pioneer Federal did not consult with Elliott Davis, LLC regarding the application of accounting principles to a specific completed or proposed transaction or regarding the type of audit opinion that might be rendered by Elliott Davis, LLC on Pioneer Federal's financial statements, and Elliott Davis, LLC did not provide any written or oral advice that was an important factor considered by Pioneer Federal in reaching a decision as to any such accounting, auditing or financial reporting issue, and Pioneer Federal did not consult with Elliott Davis, LLC regarding any of the matters or events set forth in Item 304(a)(2)(ii) of Regulation S-K.

The report of Wipfli LLP on its audit of the financial statements of Pioneer Federal for the years ended December 31, 2022 and 2021, performed under AICPA auditing standards, did not contain an adverse opinion or disclaimer of opinion and was not qualified or modified as to uncertainty, audit scope or accounting principle. In connection with its audit of the financial statements of Pioneer Federal for the years ended December 31, 2022 and 2021, performed under AICPA standards, there were no disagreements with Wipfli LLP on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedure, which disagreements, if not resolved to the satisfaction of Wipfli LLP, would have caused them to make reference thereto in their reports, and there have been no reportable events as described in Item 304(a)(1)(v) of Regulation S-K.

Pioneer Federal provided Wipfli LLP with a copy of this disclosure before its filing with the SEC and requested that Wipfli LLP furnish Pioneer Federal with a letter addressed to the SEC stating whether it agrees with the above statements and, if it does not agree, the respects in which it does not agree. A copy of the letter is filed as an exhibit to the registration statement of PSB Financial, of which this prospectus is a part.

#### LEGAL MATTERS
Godfrey & Kahn, S.C., Milwaukee, Wisconsin, counsel to PSB Financial, Pioneer Federal and Pioneer State Bank, has issued to PSB Financial its opinion regarding the legality of the common stock and has issued to PSB Financial and Pioneer Federal its opinion regarding the federal income tax consequences of the stock offering and conversion. Wipfli LLP has issued its opinion PSB Financial and Pioneer Federal regarding the Montana state income tax consequences of the stock offering and conversion. Certain legal matters will be passed upon for KBW and, in the event of a syndicated community offering. for any other co-managers, by Nutter McClennen & Fish LLP, Boston, Massachusetts.

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#### WHERE YOU CAN FIND ADDITIONAL INFORMATION
PSB Financial has filed with the SEC a registration statement under the Securities Act, as amended, with respect to the shares of common stock offered hereby. As permitted by the rules and regulations of the SEC, this prospectus does not contain all the information set forth in the registration statement. Such information. including the appraisal report, which is an exhibit to the registration statement, can be examined without charge at the public reference facilities of the SEC located at 100 F Street, N.E., Washington. D.C. 20549, and copies of such material can be obtained from the SEC at prescribed rates. The SEC telephone number is 1-800-SEC-0330. In addition, the SEC maintains a web site (*www.sec.gov*) that contains reports, proxy and information statements and other information regarding registrants that file electronically with the SEC, including PSB Financial. The statements contained in this prospectus as to the contents of any contract or other document filed as an exhibit to the registration statement are, of necessity, brief descriptions of the material terms of, and should be read in conjunction with, such contract or document.

Pioneer Federal has filed an application with the MDOB and a notice with the FDIC with respect to the conversion. This prospectus omits certain information contained in the application. Non-confidential portions of the conversion application may be examined at the FDIC San Francisco Regional Office located at 25 Jesse Street, Suite 2300, San Francisco, California 94105. A copy of the plan of conversion is available for review at each office of Pioneer Federal.

In connection with the stock offering and conversion, PSB Financial will register its common stock under Section 12 of the Exchange Act. Upon registration, PSB Financial and the holders of its common stock will become subject to the proxy solicitation rules, reporting requirements and restrictions on common stock purchases and sales by directors, officers and greater than 10% stockholders, the annual and periodic reporting and certain other requirements of the Securities Exchange Act of 1934. Under the plan of conversion, PSB Financial has undertaken that it will not terminate such registration for a period of at least three years following the consummation of the stock offering and conversion.

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#### INDEX TO FINANCIAL STATEMENTS OF PIONEER FEDERAL SAVINGS & LOAN ASSOCIATION
<u>Financial Statements</u> 

---

| | |
|:---|:---|
| [Balance Sheets at June 30, 2025 (unaudited) and December 31, 2024](#tBALA)  | [F-2](#tBALA) |
| [Statements of Operations for the six months ended June 30, 2025 and 2024 (unaudited)](#tSOPU)  | [F-3](#tSOPU) |
|  [Statements of Comprehensive Income (Loss) for the six months ended June 30, 2025 and 2024 (unaudited)](#tSOCI)  | [F-4](#tSOCI) |
| [Statements of Net Worth for the six months ended June 30, 2025 and 2024 (unaudited)](#tSONW)  | [F-5](#tSONW) |
| [Statements of Cash Flows for the six months ended June 30, 2025 and 2024 (unaudited)](#tSOCF)  | [F-6](#tSOCF) |
| [Notes to Financial Statements](#tNOTE)  | [F-7](#tNOTE) |
| [Report of Independent Registered Public Accounting Firm](#tAUDI)  | [F-24](#tAUDI) |
| [Balance Sheets at December 31, 2024 and December 31, 2023](#tBALA1)  | [F-25](#tBALA1) |
| [Statements of Operations for the years ended December 31, 2024 and 2023](#tSOPU1)  | [F-26](#tSOPU1) |
| [Statements of Comprehensive Income (Loss) for the years ended December 31, 2024 and 2023](#tSOCI1)  | [F-27](#tSOCI1) |
| [Statements of Net Worth for the years ended December 31, 2024 and 2023](#tSONW1)  | [F-28](#tSONW1) |
| [Statements of Cash Flows for the years ended December 31, 2024 and 2023](#tSOCF1)  | [F-29](#tSOCF1) |
| [Notes to Financial Statements](#tNOTE1)  | [F-30](#tNOTE1) |

---

\*\*\*

Separate financial statements for PSB Financial and Pioneer State Bank have not been included in this prospectus because neither PSB Financial nor Pioneer State Bank has engaged in any significant activities, has significant assets, and has contingent liabilities, revenue or expenses as of the date of this prospectus.

All financial statement schedules have been omitted as the required information either is not applicable or is included in the financial statements or related notes.

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#### P ioneer Federal Savings & Loan Association

#### Balance Sheets

---

| | | |
|:---|:---|:---|
| **As of**  | **Unaudited <br> June 30, 2025**  | **December 31, <br> 2024**  |
| **ASSETS** | **ASSETS** | **ASSETS** |
| Cash and due from banks  | $883041 | $1029393 |
| Interest-bearing deposits  | 8315891 | 5404094 |
| &nbsp;&nbsp;&nbsp; Cash and cash equivalents  | 9198932 | 6433487 |
|  Investment securities available for sale, net of allowance for credit losses of $0 <br> at June 30, 2025 and December 31, 2024 (amortized cost of $9,986,829 and <br> $10,315,423 at June 30, 2025 and December 31, 2024, respectively)  | 9411834 | 9538032 |
|  Investment securities held to maturity, net of allowance for credit losses of $0 <br> at June 30, 2025 and December 31, 2024 (fair value of $1,762,254 and <br> $1,912,680 at June 30, 2025 and December 31, 2024, respectively)  | 1849761 | 2005207 |
|  Loans, net of allowance for credit losses of $1,098,861 and $1,208,149 at June 30, 2025 and December 31, 2024, respectively  | 85131800 | 86327215 |
| Premises and equipment, net  | 4976905 | 5118229 |
| Other investments  | 714761 | 729335 |
| Accrued interest receivable  | 384856 | 361572 |
| Cash value of life insurance  | 754002 | 744112 |
| Deferred tax asset  | 484710 | 563577 |
| Other assets  | 350973 | 288212 |
| Total Assets  | $113258534 | $112108978 |
| **LIABILITIES** | **LIABILITIES** | **LIABILITIES** |
| Deposits  | $85842459 | $85089582 |
| Advance payments by borrowers for taxes and insurance  | 135302 | 54200 |
| Federal Home Loan Bank advances  | 8000000 | 8000000 |
| Accrued interest payable  | 94463 | 105112 |
| Deferred compensation  | 336816 | 364886 |
| Accrued income taxes payable  | 54898 | 75539 |
| Reserve for unfunded loan commitments  | 35041 | 35041 |
| Other liabilities  | 331132 | 231087 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Liabilities  | 94830111 | 93955447 |
| **NET WORTH** | **NET WORTH** | **NET WORTH** |
| Retained earnings  | 18733227 | 18607441 |
| Accumulated other comprehensive loss  | (304804) | (453910) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Net Worth  | 18428423 | 18153531 |
| Total Liabilities and Net Worth  | $113258534 | $112108978 |

---

See accompanying notes to unaudited financial statements.

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#### P ioneer Federal Savings & Loan Association

#### Statements of Operations, unaudited

---

| | | |
|:---|:---|:---|
| **Six Months Ended June 30,**  | **2025**  | **2024**  |
| Interest income: |  |  |
| &nbsp;&nbsp;&nbsp; Loans, including fees  | $2321963 | $2102220 |
| &nbsp;&nbsp;&nbsp; Investment securities:  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Taxable  | 102708 | 116280 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Tax-exempt  | 55100 | 52728 |
| &nbsp;&nbsp;&nbsp; Other  | 120592 | 164719 |
| &nbsp;&nbsp;&nbsp; Total interest income  | 2600363 | 2435947 |
| Interest expense: |  |  |
| &nbsp;&nbsp;&nbsp; Deposits  | 694126 | 689867 |
| &nbsp;&nbsp;&nbsp; FHLB advances  | 172956 | 173911 |
| &nbsp;&nbsp;&nbsp; Total interest expense  | 867082 | 863778 |
| Net interest income  | 1733281 | 1572169 |
| (Recovery of) provision for credit losses on loans  | (104378) |  |
| Provision for credit losses on unfunded loan commitments  |  |  |
| Net interest income after provision for credit losses  | 1837659 | 1572169 |
| Noninterest income: |  |  |
| &nbsp;&nbsp;&nbsp; Service fees  | 30001 | 35658 |
| &nbsp;&nbsp;&nbsp; Interchange fees  | 87100 | 56323 |
| &nbsp;&nbsp;&nbsp; Loan servicing income  | 1351 | 1263 |
| &nbsp;&nbsp;&nbsp; Increase in cash value of life insurance  | 9890 | 9964 |
| &nbsp;&nbsp;&nbsp; Net gain on sale of premises and equipment  |  | 311069 |
| &nbsp;&nbsp;&nbsp; Total noninterest income  | 128342 | 414277 |
| Noninterest expense: |  |  |
| &nbsp;&nbsp;&nbsp; Salaries and employee benefits  | 828569 | 838513 |
| &nbsp;&nbsp;&nbsp; Occupancy  | 268826 | 242432 |
| &nbsp;&nbsp;&nbsp; Data processing  | 220421 | 209892 |
| &nbsp;&nbsp;&nbsp; Advertising  | 56894 | 57050 |
| &nbsp;&nbsp;&nbsp; Professional fees  | 152649 | 62496 |
| &nbsp;&nbsp;&nbsp; Directors fees  | 56700 | 54045 |
| &nbsp;&nbsp;&nbsp; Insurance  | 23184 | 40291 |
| &nbsp;&nbsp;&nbsp; Loan costs  | 29692 | 34616 |
| &nbsp;&nbsp;&nbsp; ATM fee expense  | 30300 | 46718 |
| &nbsp;&nbsp;&nbsp; Other noninterest expense  | 164044 | 136079 |
| &nbsp;&nbsp;&nbsp; Total noninterest expense  | 1831279 | 1722132 |
| Net income before income taxes  | 134722 | 264314 |
| Income tax expense  | 8936 | 59606 |
| Net income  | $125786 | $204708 |

---

See accompanying notes to unaudited financial statements.

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#### P ioneer Federal Savings & Loan Association

#### Statements of Comprehensive Income (Loss), unaudited

---

| | | |
|:---|:---|:---|
| **Six Months Ended June 30,**  | **2025**  | **2024**  |
| Net income  | $125786 | $204708 |
| Other comprehensive income (loss): |  |  |
| &nbsp;&nbsp;&nbsp; Unrealized gain (loss) on investment securities available for sale  | 202396 | (8704) |
| &nbsp;&nbsp;&nbsp; Related tax effect  | (53290) | 2292 |
| Other comprehensive income (loss), net of tax  | 149106 | (6412) |
| Total comprehensive income  | $274892 | $198296 |

---

See accompanying notes to unaudited financial statements.

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#### P ioneer Federal Savings & Loan Association

#### Statements of Net Worth, unaudited

---

| | | | |
|:---|:---|:---|:---|
| | **Retained <br> Earnings**  | **Accumulated <br> Other <br> Comprehensive <br> Income (Loss)**  | **Total <br> Net Worth**  |
| Balances at December 31, 2023  | $18383704 | $(554252) | $17829452 |
| Net income  | 204708 |  | 204708 |
| Other comprehensive loss  |  | (6412) | (6412) |
| Balances at June 30, 2024  | 18588412 | (560664) | 18027748 |
| Net income  | 19029 |  | 19029 |
| Other comprehensive income  |  | 106754 | 106754 |
| Balances at December 31, 2024  | 18607441 | (453910) | 18153531 |
| Net income  | 125786 |  | 125786 |
| Other comprehensive income  |  | 149106 | 149106 |
| Balances at June 30, 2025  | $18733227 | $(304804) | $18428423 |

---

See accompanying notes to unaudited financial statements.

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#### P ioneer Federal Savings & Loan Association

#### Statements of Cash Flows, unaudited

---

| | | |
|:---|:---|:---|
| **Six Months Ended June 30,**  | **2025**  | **2024**  |
| Change in cash and cash equivalents: |  |  |
| &nbsp;&nbsp;&nbsp; Cash flows (used in) from operating activities:  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income  | $125786 | $204708 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Adjustments to reconcile net income to net cash (used in) from operating activities:  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net amortization of investment securities  | 25151 | 34945 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Recovery of credit losses  | (104378) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Depreciation  | 170399 | 151599 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net gain on sale of premises and equipment  |  | (311069) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net change in cash value of life insurance  | (9890) | (9964) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Provision for (benefit from) deferred income tax  | 25577 | 59557 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Changes in operating assets and liabilities:  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accrued interest receivable  | (23284) | (29053) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other assets  | (62761) | (297970) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accrued interest payable  | (10649) | 58076 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other liabilities  | 51334 | 71012 |
| &nbsp;&nbsp;&nbsp; Net cash provided by (used in) operating activities  | 187285 | (68159) |
| &nbsp;&nbsp;&nbsp; Cash flows (used in) from investing activities:  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Proceeds from calls and maturities of investment securities held to maturity  | 156293 | 284673 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Proceeds from calls and maturities of investment securities available for sale  | 302596 | 873559 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net change in other investments  | 14574 | (3213) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net decrease (increase) in loans  | 1299793 | (3199118) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Proceeds from disposal of premises and equipment  |  | 318337 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Purchases of premises and equipment  | (29075) | (673573) |
| &nbsp;&nbsp;&nbsp; Net cash provided by (used in) investing activities  | 1744181 | (2399335) |
| &nbsp;&nbsp;&nbsp; Cash flows (used in) from financing activities:  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net increase in deposits  | 752877 | 49114 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net increase in advance payments by borrowers for taxes and insurance  | 81102 | 57032 |
| &nbsp;&nbsp;&nbsp; Net cash (used in) from financing activities  | 833979 | 106146 |
| Net change in cash and cash equivalents  | 2765445 | (2361348) |
| Cash and cash equivalents at beginning of year  | 6433487 | 10192920 |
| Cash and cash equivalents at end of year  | $9198932 | $7831572 |
| **Supplemental cash flow information:** |  |  |
| &nbsp;&nbsp;&nbsp; Cash paid during the year for:  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest  | $877731 | $805702 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income taxes  | 4000 | 12811 |
| **Noncash investing and financing activities:** |  |  |
| &nbsp;&nbsp;&nbsp; Change in unrealized gain (loss) on investment securities available for sale  | 202396 | (8704) |

---

See accompanying notes to unaudited financial statements.

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#### P ioneer Federal Savings & Loan Association

#### Notes to Unaudited Financial Statements

#### Note 1: Summary of Significant Accounting Policies

#### Nature of Business
Pioneer Federal Savings & Loan Association (the "Association") provides a variety of financial services to individuals and corporate members through its branches in Dillon and Deer Lodge, Montana. The Association's primary source of revenue is residential single-family loans.

#### Segment Information
The Association's reportable segment is determined by the President/Chief Executive Officer (CEO) based upon information provided about the Association's products and services offered, primarily banking operations. The segment is also distinguished by the level of information provided by the CEO, who uses such information to review performance of various components of the business, which are then aggregated if operating performance, products/services, and customers are similar. The CEO will evaluate the financial performance of the Association's business components such as evaluating revenue streams, significant expenses, and budget to actual results in assessing the Association's segment and in the determination of allocating resources. The CEO uses revenue streams to evaluate product pricing and significant expenses to assess performance and evaluate return on assets. The CEO uses net income to benchmark the Association against its competitors. The benchmarking analysis coupled with monitoring of budget to actual results are used in assessing performance and in establishing compensation. Loans, investments, and deposit product service fees provide the revenues in the banking operation. Interest expense and salaries and employee benefits, as reported on the statements of operations, provide the significant expenses in the banking operation. All operations are domestic.

The Association operates under a single segment. Segment performance is evaluated using net income. The measure of segment assets is reported on the balance sheets as total assets. Noncash items, such as depreciation and amortization, as well as expenditures for premises and equipment, are reported on the statements of cash flows.

#### Basis of Presentation
The accompanying unaudited interim condensed financial statements have been prepared in accordance with U.S. generally accepted accounting principles (U.S. GAAP) for interim financial information and Rule 10-01 of Regulation S-X. Accordingly, certain information and footnote disclosures normally included in annual financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations. These unaudited interim condensed financial statements and notes should be read in conjunction with the Association's financial statements and notes thereto filed as part of the Form S-1 for the year ended December 31, 2024. In the opinion of management, all adjustments necessary for a fair presentation have been made and consist only of normal recurring adjustments. Interim results of operations are not necessarily indicative of results to be expected for the entire year.

#### Significant Accounting Policies and Use of Estimates in Preparation of Financial Statements
The Association has adopted various accounting policies, which govern the application of accounting principles generally accepted in the United States in the preparation of our financial statements. Our significant accounting policies are described in the footnotes to the audited financial statements at December 31, 2024. Certain accounting policies involve significant judgments and assumptions by management, which have a material impact on the carrying value of certain assets and liabilities, and, as such, have a greater possibility of producing results that could be materially different than originally reported. We consider these accounting policies to be critical accounting policies. The judgments and assumptions we use are based on historical experience and other factors, which we believe to be reasonable under the circumstances. Because of the nature of the judgments and assumptions we make, actual results could differ from these judgments and estimates which could have a material impact on our carrying values of assets

------

[**TABLE OF CONTENTS**](#TOC2)

#### P ioneer Federal Savings & Loan Association

#### Notes to Unaudited Financial Statements

#### Note 1: Summary of Significant Accounting Policies (continued)
and liabilities and our results of operations. There have been no significant changes to the application of significant accounting policies since December 31, 2024.

The preparation of the accompanying financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting period. Actual results may differ from these estimates.

#### Note 2: Investment Securities
The amortized cost, allowance for credit losses, and estimated fair value of investment securities available for sale with gross unrealized gains and losses at June 30, 2025 and December 31, 2024 follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Amortized <br> Cost**  | **Gross <br> Unrealized <br> Gains**  | **Gross <br> Unrealized <br> Losses**  | **Allowance for <br> Credit Losses**  | **Estimated <br> Fair Value**  |
| **June 30, 2025** |  |  |  |  |  |
| U.S. government and agency securities  | $1101750 | $— | $(72070) | $&nbsp;&nbsp;&nbsp;&nbsp;— | $1029680 |
|  Obligations of states and political subdivisions  | 3015327 | 4695 | (129501) |  | 2890521 |
| Mortgage-backed securities  | 5869752 | 7464 | (385583) |  | 5491633 |
|  Total investment securities available for sale  | $9986829 | $12159 | $(587154) | $— | $9411834 |
| **December 31, 2024** |  |  |  |  |  |
| U.S. government and agency securities  | $1115983 | $— | $(106677) | $— | $1009306 |
|  Obligations of states and political subdivisions  | 3031756 | 1782 | (144859) |  | 2888679 |
| Mortgage-backed securities  | 6167684 | 4748 | (532385) |  | 5640047 |
|  Total investment securities available for sale  | $10315423 | $6530 | $(783921) | $— | $9538032 |

---

The following table shows the fair value and gross unrealized losses of investment securities available for sale with unrealized losses at June 30, 2025 and December 31, 2024, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Less Than 12 Months**  | **Less Than 12 Months**  | **12 Months or More**  | **12 Months or More**  | **Total**  | **Total**  |
| | **Fair Value**  | **Unrealized <br> Losses**  | **Fair Value**  | **Unrealized <br> Losses**  | **Fair Value**  | **Unrealized <br> Losses**  |
| **June 30, 2025** |  |  |  |  |  |  |
|  U.S. government and agency securities  | $&nbsp;&nbsp;&nbsp;&nbsp;— | $&nbsp;&nbsp;&nbsp;&nbsp;— | $1029680 | $72070 | $1029680 | $72070 |
|  Obligations of states and political <br> subdivisions  |  |  | 1928887 | 129501 | 1928887 | 129501 |
| Mortgage-backed securities  |  |  | 4889170 | 385583 | 4889170 | 385583 |
| Totals  | $— | $— | $7847737 | $587154 | $7847737 | $587154 |
| **December 31, 2024** |  |  |  |  |  |  |
|  U.S. government and agency securities  | $— | $— | $1009306 | $106677 | $1009306 | $106677 |

---

------

[**TABLE OF CONTENTS**](#TOC2)

#### P ioneer Federal Savings & Loan Association

#### Notes to Unaudited Financial Statements

#### Note 2: Investment Securities (continued)

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Less Than 12 Months**  | **Less Than 12 Months**  | **12 Months or More**  | **12 Months or More**  | **Total**  | **Total**  |
| | **Fair Value**  | **Unrealized <br> Losses**  | **Fair Value**  | **Unrealized <br> Losses**  | **Fair Value**  | **Unrealized <br> Losses**  |
|  Obligations of states and political <br> subdivisions  | 308493 | 2671 | 1923404 | 142188 | 2231897 | 144859 |
| Mortgage-backed securities  |  |  | 5440324 | 532385 | 5440324 | 532385 |
| Totals  | $308493 | $2671 | $8373034 | $781250 | $8681527 | $783921 |

---

The following table presents the number and aggregate depreciation from the Association's amortized cost basis of investment securities available for sale in a continuous unrealized loss position by security type at June 30, 2025:

---

| | | |
|:---|:---|:---|
| | **Number of <br> Securities**  | **Aggregate <br> Depreciation**  |
| U.S. government and agency securities  | 2 | 6.54% |
| Obligations of states and political subdivisions  | 8 | 6.29 |
| Mortgage-backed securities  | 17 | 7.31 |

---

These unrealized losses relate principally to the changes in interest rates and are not due to changes in the financial condition of the issuer, the quality of any underlying assets, or applicable credit enhancements. In reaching the conclusion that an allowance for credit losses is unnecessary, management observed that the securities were issued by a government body or agency, the securities continue to be highly rated (AA or better) where applicable, the issuer continues to make contractual payments, and the quality of any underlying assets or credit enhancements has not changed. Since management has the ability to hold investment securities for the foreseeable future, the Association expects to recover the amortized cost basis of these securities before they are sold or mature.

The amortized cost, allowance for credit losses, gross unrealized gains and losses, and estimated fair value of investment securities held to maturity at June 30, 2025 and December 31, 2024 follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Amortized Cost**  | **Gross <br> Unrealized <br> Gains**  | **Gross <br> Unrealized <br> Losses**  | **Allowance for <br> Credit Losses**  | **Estimated <br> Fair Value**  |
| **June 30, 2025** |  |  |  |  |  |
| U.S. government and agency securities  | $84475 | $5 | $(3128) | $— | $81352 |
|  Obligations of states and political subdivisions  | 975358 |  | (85329) |  | 890029 |
| Mortgage-backed securities  | 789928 | 7487 | (6542) |  | 790873 |
|  Total investment securities held to maturity  | $1849761 | $7492 | $(94999) | $— | $1762254 |
| **December 31, 2024** |  |  |  |  |  |
| U.S. government and agency securities  | $128070 | $— | $(5008) | $— | $123062 |
|  Obligations of states and political subdivisions  | 974806 |  | (79000) |  | 895806 |
| Mortgage-backed securities  | 902331 | 6896 | (15415) |  | 893812 |
|  Total investment securities held to maturity  | $2005207 | $6896 | $(99423) | $— | $1912680 |

---

The Association regularly evaluates various attributes of securities held to maturity to determine the appropriateness of the allowance for credit losses. The credit quality indicators monitored differ depending on the major security type.

------

[**TABLE OF CONTENTS**](#TOC2)

#### P ioneer Federal Savings & Loan Association

#### Notes to Unaudited Financial Statements

#### Note 2: Investment Securities (continued)
The Association evaluates securities issued by the U.S. government and U.S. government-sponsored agencies (e.g., FNMA ("Fannie Mae"), GNMA ("Ginnie Mae"), and FHLMC ("Freddie Mac") mortgage-backed securities) by considering the creditworthiness and performance of the securities and the strength of guarantees. These securities are either explicitly or implicitly guaranteed by the U.S. government, are highly rated by major rating agencies, and have a long history of no credit losses. Based on this analysis, the Association believes it will collect all amounts owed on these securities and has not recognized an allowance for credit losses on these securities.

Obligations of states and political subdivisions held to maturity are generally evaluated using credit ratings, which are a key indicator of an investment security's probability of default. The Association uses credit ratings issued by S&P or Moody's (or both), consisting of the upper- and lower-case letters to identify an investment security's credit quality rating. "AAA" and "AA" (high credit quality) and "A" and "BBB" (medium credit quality) are considered investment grade. Credit ratings for investment securities below these designations are considered low credit quality. These ratings are updated monthly. The Association may also consider other relevant information that becomes known about the issuer's or the security's performance.

Information regarding credit ratings for investment securities held to maturity by major security type as of June 30, 2025 and December 31, 2024 follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **AAA**  | **AA**  | **A**  | **BBB**  | **Not Rated**  | **Total**  |
| **June 30, 2025** |  |  |  |  |  |  |
|  Obligations of states and political subdivisions  | $— | $550000 | $425358 | $— | $— | $975358 |
| **December 31, 2024** |  |  |  |  |  |  |
|  Obligations of states and political subdivisions  | $— | $548326 | $426480 | $— | $— | $974806 |

---

No accrued interest was written off during the six months ended June 30, 2025 and 2024. No investment securities held to maturity were past due or on nonaccrual as of June 30, 2025 and December 31, 2024.

Fair values of investment securities are generally estimated based on financial models or prices paid for similar securities. It is possible interest rates or other key inputs to the valuation estimate could change considerably, resulting in a material change in the estimated fair value of investment securities.

The following is a summary of amortized cost (or net carrying amount) and estimated fair value of investment securities by contractual maturity as of June 30, 2025. Contractual maturities will differ from expected maturities for mortgage-backed securities because borrowers may have the right to call or prepay obligations without penalties.

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Available for Sale**  | **Available for Sale**  | **Held to Maturity**  | **Held to Maturity**  |
| | **Amortized <br> Cost**  | **Estimated <br> Fair Value**  | **Net Carrying <br> Amount**  | **Estimated <br> Fair Value**  |
| Due in one year or less  | $100000 | $100000 | $220000 | $220000 |
| Due after one year through five years  | 2616859 | 2537211 |  |  |
| Due after five years through ten years  | 205767 | 192056 | 285712 | 262512 |
| Due after ten years  | 1194451 | 1090934 | 554121 | 488869 |
| Subtotal  | 4117077 | 3920201 | 1059833 | 971381 |
| Mortgage-backed securities  | 5869752 | 5491633 | 789928 | 790873 |
| Total  | $9986829 | $9411834 | $1849761 | $1762254 |

---

------

[**TABLE OF CONTENTS**](#TOC2)

#### P ioneer Federal Savings & Loan Association

#### Notes to Unaudited Financial Statements

#### Note 2: Investment Securities (continued)
There were no sales of investment securities during the six months ended June 30, 2025 and 2024.

At June 30, 2025, the amortized cost and estimated fair value of investment securities pledged to secure public deposits was $1,000,000 and $929,970, respectively. At December 31, 2024, the amortized cost and estimated fair value of investment securities pledged to secure public deposits was $1,000,000 and $897,440, respectively.

#### Note 3: Loans
The following table presents total loans at June 30, 2025 and December 31, 2024, by portfolio segment and class of loan:

---

| | | |
|:---|:---|:---|
| | **2025**  | **2024**  |
| Commercial: |  |  |
| &nbsp;&nbsp;&nbsp; Other construction and land/land development  | $1742230 | $1908672 |
| &nbsp;&nbsp;&nbsp; Commercial real estate  | 4420702 | 4172909 |
| &nbsp;&nbsp;&nbsp; Agricultural production  | 10027 | 15341 |
| &nbsp;&nbsp;&nbsp; Commercial and industrial  | 1112442 | 1516403 |
| &nbsp;&nbsp;&nbsp; Municipal  | 48787 | 51310 |
| Residential real estate: |  |  |
| &nbsp;&nbsp;&nbsp; Residential construction  | 1225086 | 2322492 |
| &nbsp;&nbsp;&nbsp; Revolving, open-end  | 2507725 | 1762701 |
| &nbsp;&nbsp;&nbsp; First liens  | 73211801 | 74274925 |
| &nbsp;&nbsp;&nbsp; Junior liens  | 1006663 | 706888 |
| Consumer  | 1337930 | 1207219 |
| Subtotal  | 86623393 | 87938860 |
| Allowance for credit losses  | (1098861) | (1208149) |
| Net deferred loan fees  | (392732) | (403496) |
| Loans, net  | $85131800 | $86327215 |

---

Loans serviced for others are not included in the accompanying balance sheets. The unpaid principal balance of mortgage loans serviced for others totaled $824,285 at June 30, 2025 and $851,034 at December 31, 2024. Mortgage servicing rights are not recorded since they would not have a material impact on the financial statements.

Deposit accounts in an overdraft position and reclassified as loans totaled $1,785 at June 30, 2025 and $2,771 at December 31, 2024.

Activity in the allowance for credit losses on loans by portfolio segment follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Commercial**  | **Residential <br> Real Estate**  | **Consumer**  | **Total**  |
| Balance at December 31, 2023  | $65319 | $1068896 | $6335 | $1140550 |
| Provision for (recovery of) credit losses on loans  |  |  |  |  |
| Loans charged off  |  |  |  |  |
| Recoveries of loans previously charged off  |  |  |  |  |
| Balance at June 30, 2024  | 65319 | 1068896 | 6335 | 1140550 |

---

------

[**TABLE OF CONTENTS**](#TOC2)

#### P ioneer Federal Savings & Loan Association

#### Notes to Unaudited Financial Statements

#### Note 3: Loans (continued)

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Commercial**  | **Residential <br> Real Estate**  | **Consumer**  | **Total**  |
| Provision for (recovery of) credit losses on loans  | (1788) | 69287 | 100 | 67599 |
| Loans charged off  |  |  |  |  |
| Recoveries of loans previously charged off  |  |  |  |  |
| Balance at December 31, 2024  | 63531 | 1138183 | 6435 | 1208149 |
| Provision for (recovery of) credit losses on loans  | (6359) | (99824) | 1805 | (104378) |
| Loans charged off  |  |  | (4910) | (4910) |
| Recoveries of loans previously charged off  |  |  |  |  |
| Balance at June 30, 2025  | $57172 | $1038359 | $3330 | $1098861 |

---

At June 30, 2025 and December 31, 2024, the Association maintained a reserve for unfunded loan commitments totaling $35,041. The provision for (recovery of) credit losses on unfunded loan commitments totaled $0 during the six months ended June 30, 2025 and 2024.

No accrued interest was written off by reversing interest income during the six months ended June 30, 2025 and 2024.

There were no collateral dependent loans as of June 30, 2025 and December 31, 2024.

The Association regularly evaluates various attributes of loans to determine the appropriateness of the allowance for credit losses on loans. The credit quality indicators monitored differ depending on the class of loan.

Loans are generally evaluated using the following internally prepared ratings:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Pass: These loans are supported by reliable and current financial statements and the Association is protected by adequate collateral margins. The business may not have secondary means of payment, may be relatively new, but has adequate liquidity, equity and profitability.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Special Mention: These loans are currently protected but show potential financial, operational or other deterioration or weaknesses that need to be corrected. These credits are still strong enough and/or have ample collateral to ensure that liquidation of the loan is not threatened but could reach that point and become further classified. If weaknesses are significant, even though well secured, the loan should be considered for more serious criticism.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Substandard: These loans are no longer protected by the current sound net worth and paying capacity of the obligor. These loans exhibit defined credit weaknesses which, if not corrected, could expose the Association to loss, including all loans which have gone to foreclosure or which have become reliant upon liquidation of collateral for repayment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Doubtful: These loans have deteriorated to the point where collection or liquidation in full, on the basis of currently existing facts, conditions and values, is highly questionable and improbable. If the loss portion of the loan can be reasonably estimated and there are no pending actions which may strengthen or protect the Association from loss, a partial charge-off should be considered.

Internally prepared ratings for loans are updated at least annually.

Residential real estate and consumer loans are generally evaluated based on whether or not the loan is performing according to the contractual terms of the loan as of the balance sheet date. Loans past due 30 days or more and loans on nonaccrual are considered nonperforming.

------

[**TABLE OF CONTENTS**](#TOC2)

#### P ioneer Federal Savings & Loan Association

#### Notes to Unaudited Financial Statements

#### Note 3: Loans (continued)
Information regarding the loan portfolio by risk classification and origination year as of June 30, 2025, follows:

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **2025**  | **2024**  | **2023**  | **2022**  | **2021**  | **Prior**  | **Revolving**  | **Revolving <br> Loans <br> Converted to <br> Term Loans**  | **Total**  |
|  **Other construction and land/land development**  |  |  |  |  |  |  |  |  |  |
| Pass  | $27155 | $605317 | $979133 | $64985 | $51267 | $14373 | $&nbsp;&nbsp;&nbsp;&nbsp;— | $&nbsp;&nbsp;&nbsp;&nbsp;— | $1742230 |
| Special Mention  |  |  |  |  |  |  |  |  |  |
| Substandard  |  |  |  |  |  |  |  |  |  |
| Doubtful  |  |  |  |  |  |  |  |  |  |
| Totals  | 27155 | 605317 | 979133 | 64985 | 51267 | 14373 |  |  | 1742230 |
| Current period gross charge offs  |  |  |  |  |  |  |  |  |  |
| **Commercial real estate** |  |  |  |  |  |  |  |  |  |
| Pass  |  | 1371875 |  | 899414 | 1001304 | 1148109 |  |  | 4420702 |
| Special Mention  |  |  |  |  |  |  |  |  |  |
| Substandard  |  |  |  |  |  |  |  |  |  |
| Doubtful  |  |  |  |  |  |  |  |  |  |
| Totals  |  | 1371875 |  | 899414 | 1001304 | 1148109 |  |  | 4420702 |
| Current period gross charge offs  |  |  |  |  |  |  |  |  |  |
| **Agricultural production** |  |  |  |  |  |  |  |  |  |
| Pass  |  |  |  | 10027 |  |  |  |  | 10027 |
| Special Mention  |  |  |  |  |  |  |  |  |  |
| Substandard  |  |  |  |  |  |  |  |  |  |
| Doubtful  |  |  |  |  |  |  |  |  |  |
| Totals  |  |  |  | 10027 |  |  |  |  | 10027 |
| Current period gross charge offs  |  |  |  |  |  |  |  |  |  |
| **Commercial and industrial** |  |  |  |  |  |  |  |  |  |
| Pass  | 227828 | 27067 | 5002 | 16727 |  | 75743 | 760075 |  | 1112442 |
| Special Mention  |  |  |  |  |  |  |  |  |  |
| Substandard  |  |  |  |  |  |  |  |  |  |
| Doubtful  |  |  |  |  |  |  |  |  |  |
| Totals  | 227828 | 27067 | 5002 | 16727 |  | 75743 | 760075 |  | 1112442 |
| Current period gross charge offs  |  |  |  |  |  |  |  |  |  |
| **Municipal** |  |  |  |  |  |  |  |  |  |
| Pass  |  |  |  |  |  | 48787 |  |  | 48787 |
| Special Mention  |  |  |  |  |  |  |  |  |  |
| Substandard  |  |  |  |  |  |  |  |  |  |
| Doubtful  |  |  |  |  |  |  |  |  |  |
| Totals  | $— | $— | $— | $— | $— | $48787 | $— | $— | $48787 |

---

------

[**TABLE OF CONTENTS**](#TOC2)

#### P ioneer Federal Savings & Loan Association

#### Notes to Unaudited Financial Statements

#### Note 3: Loans (continued)

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **2025**  | **2024**  | **2023**  | **2022**  | **2021**  | **Prior**  | **Revolving**  | **Revolving <br> Loans <br> Converted to <br> Term Loans**  | **Total**  |
|  Current period gross charge offs  |  |  |  |  |  |  |  |  |  |
| **Residential construction** |  |  |  |  |  |  |  |  |  |
| Performing  | $206912 | $1018174 | $— | $— | $— | $— | $— | $— | $1225086 |
| Nonperforming  |  |  |  |  |  |  |  |  |  |
| Totals  | 206912 | 1018174 |  |  |  |  |  |  | 1225086 |
|  Current period gross charge offs  |  |  |  |  |  |  |  |  |  |
| **Revolving, open-end** |  |  |  |  |  |  |  |  |  |
| Performing  |  |  |  |  |  |  | 2507725 |  | 2507725 |
| Nonperforming  |  |  |  |  |  |  |  |  |  |
| Totals  |  |  |  |  |  |  | 2507725 |  | 2507725 |
|  Current period gross charge offs  |  |  |  |  |  |  |  |  |  |
| **First liens** |  |  |  |  |  |  |  |  |  |
| Performing  | 2067992 | 8255642 | 8799356 | 11807364 | 14642111 | 26924297 |  |  | 72496762 |
| Nonperforming  |  |  | 567934 |  |  | 147105 |  |  | 715039 |
| Totals  | 2067992 | 8255642 | 9367290 | 11807364 | 14642111 | 27071402 |  |  | 73211801 |
|  Current period gross charge offs  |  |  |  |  |  |  |  |  |  |
| **Junior liens** |  |  |  |  |  |  |  |  |  |
| Performing  | 351438 | 401437 | 90300 | 130938 |  | 32550 |  |  | 1006663 |
| Nonperforming  |  |  |  |  |  |  |  |  |  |
| Totals  | 351438 | 401437 | 90300 | 130938 |  | 32550 |  |  | 1006663 |
|  Current period gross charge offs  |  |  |  |  |  |  |  |  |  |
| **Consumer** |  |  |  |  |  |  |  |  |  |
| Performing  | 444105 | 408694 | 285649 | 45503 | 73939 | 76999 |  |  | 1334889 |
| Nonperforming  |  | 1448 | 1593 |  |  |  |  |  | 3041 |
| Totals  | $444105 | $410142 | $287242 | $45503 | $73939 | $76999 | $— | $&nbsp;&nbsp;&nbsp;&nbsp;— | $1337930 |
|  Current period gross charge offs  |  |  | 1503 | 3407 |  |  |  |  | 4910 |

---

------

[**TABLE OF CONTENTS**](#TOC2)

#### P ioneer Federal Savings & Loan Association

#### Notes to Unaudited Financial Statements

#### Note 3: Loans (continued)
Information regarding the loan portfolio by risk classification and origination year as of December 31, 2024, follows:

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **2024**  | **2023**  | **2022**  | **2021**  | **2020**  | **Prior**  | **Revolving**  | **Revolving <br> Loans <br> Converted to <br> Term Loans**  | **Total**  |
|  **Other construction and land/land development**  |  |  |  |  |  |  |  |  |  |
| Pass  | $808696 | $962610 | $66546 | $54668 | $— | $16152 | $— | $— | $1908672 |
| Special Mention  |  |  |  |  |  |  |  |  |  |
| Substandard  |  |  |  |  |  |  |  |  |  |
| Doubtful  |  |  |  |  |  |  |  |  |  |
| Totals  | 808696 | 962610 | 66546 | 54668 |  | 16152 |  |  | 1908672 |
|  Current period gross charge offs  |  |  |  |  |  |  |  |  |  |
| **Commercial real estate** |  |  |  |  |  |  |  |  |  |
| Pass  | 1419434 |  | 536276 | 1035974 | 116212 | 1065013 |  |  | 4172909 |
| Special Mention  |  |  |  |  |  |  |  |  |  |
| Substandard  |  |  |  |  |  |  |  |  |  |
| Doubtful  |  |  |  |  |  |  |  |  |  |
| Totals  | 1419434 |  | 536276 | 1035974 | 116212 | 1065013 |  |  | 4172909 |
|  Current period gross charge offs  |  |  |  |  |  |  |  |  |  |
| **Agricultural production** |  |  |  |  |  |  |  |  |  |
| Pass  |  |  | 15341 |  |  |  |  |  | 15341 |
| Special Mention  |  |  |  |  |  |  |  |  |  |
| Substandard  |  |  |  |  |  |  |  |  |  |
| Doubtful  |  |  |  |  |  |  |  |  |  |
| Totals  |  |  | 15341 |  |  |  |  |  | 15341 |
|  Current period gross charge offs  |  |  |  |  |  |  |  |  |  |
| **Commercial and industrial**  |  |  |  |  |  |  |  |  |  |
| Pass  | 32342 | 42761 | 425451 |  |  | 85109 | 930740 |  | 1516403 |
| Special Mention  |  |  |  |  |  |  |  |  |  |
| Substandard  |  |  |  |  |  |  |  |  |  |
| Doubtful  |  |  |  |  |  |  |  |  |  |
| Totals  | 32342 | 42761 | 425451 |  |  | 85109 | 930740 |  | 1516403 |
|  Current period gross charge offs  |  |  |  |  |  |  |  |  |  |
| **Municipal** |  |  |  |  |  |  |  |  |  |
| Pass  |  |  |  |  |  | 51310 |  |  | 51310 |
| Special Mention  |  |  |  |  |  |  |  |  |  |
| Substandard  |  |  |  |  |  |  |  |  |  |
| Doubtful  |  |  |  |  |  |  |  |  |  |
| Totals  |  |  |  |  |  | 51310 |  |  | 51310 |
|  Current period gross charge offs  |  |  |  |  |  |  |  |  |  |

---

------

[**TABLE OF CONTENTS**](#TOC2)

#### P ioneer Federal Savings & Loan Association

#### Notes to Unaudited Financial Statements

#### Note 3: Loans (continued)

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **2024**  | **2023**  | **2022**  | **2021**  | **2020**  | **Prior**  | **Revolving**  | **Revolving <br> Loans <br> Converted to <br> Term Loans**  | **Total**  |
| **Residential construction** |  |  |  |  |  |  |  |  |  |
| Performing  | $2322492 | $— | $— | $— | $— | $— | $— | $— | $2322492 |
| Nonperforming  |  |  |  |  |  |  |  |  |  |
| Totals  | 2322492 |  |  |  |  |  |  |  | 2322492 |
|  Current period gross charge offs  |  |  |  |  |  |  |  |  |  |
| **Revolving, open-end** |  |  |  |  |  |  |  |  |  |
| Performing  |  |  |  |  |  |  | 1732809 |  | 1732809 |
| Nonperforming  |  |  |  |  |  |  | 29892 |  | 29892 |
| Totals  |  |  |  |  |  |  | 1762701 |  | 1762701 |
|  Current period gross charge offs  |  |  |  |  |  |  |  |  |  |
| **First liens** |  |  |  |  |  |  |  |  |  |
| Performing  | 6854182 | 8594110 | 12469066 | 15297093 | 13443873 | 15953716 |  |  | 72612040 |
| Nonperforming  |  | 1152102 | 270042 | 92118 |  | 148623 |  |  | 1662885 |
| Totals  | 6854182 | 9746212 | 12739108 | 15389211 | 13443873 | 16102339 |  |  | 74274925 |
|  Current period gross charge offs  |  |  |  |  |  |  |  |  |  |
| **Junior liens** |  |  |  |  |  |  |  |  |  |
| Performing  | 434442 | 101313 | 136656 |  |  | 34477 |  |  | 706888 |
| Nonperforming  |  |  |  |  |  |  |  |  |  |
| Totals  | 434442 | 101313 | 136656 |  |  | 34477 |  |  | 706888 |
|  Current period gross charge offs  |  |  |  |  |  |  |  |  |  |
| **Consumer** |  |  |  |  |  |  |  |  |  |
| Performing  | 593075 | 340547 | 57149 | 94604 | 24570 | 73172 |  |  | 1183117 |
| Nonperforming  | 1936 | 16900 | 3407 | 1859 |  |  |  |  | 24102 |
| Totals  | $595011 | $357447 | $60556 | $96463 | $24570 | $73172 | $— | $— | $1207219 |
|  Current period gross charge offs  |  |  |  |  |  |  |  |  |  |

---

------

[**TABLE OF CONTENTS**](#TOC2)

#### P ioneer Federal Savings & Loan Association

#### Notes to Unaudited Financial Statements

#### Note 3: Loans (continued)
Loan aging information as of June 30, 2025 and December 31, 2024 follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Current Loans**  | **Loans Past Due <br> 30 – 89 Days**  | **Loans Past Due <br> 90+ Days**  | **Total Loans**  |
| **June 30, 2025** |  |  |  |  |
|  Other construction and land/land <br> development  | $1742230 | $— | $— | $1742230 |
| Commercial real estate  | 4420702 |  |  | 4420702 |
| Agricultural production  | 10027 |  |  | 10027 |
| Commercial and industrial  | 1112442 |  |  | 1112442 |
| Municipal  | 48787 |  |  | 48787 |
| Residential construction  | 1225086 |  |  | 1225086 |
| Revolving, open-end  | 2507725 |  |  | 2507725 |
| First liens  | 72496762 | 147105 | 567934 | 73211801 |
| Junior liens  | 1006663 |  |  | 1006663 |
| Consumer  | 1334889 |  | 3041 | 1337930 |
| Total  | $85905313 | $147105 | $570975 | $86623393 |
| **December 31, 2024** |  |  |  |  |
|  Other construction and land/land <br> development  | $1908672 | $— | $— | $1908672 |
| Commercial real estate  | 4172909 |  |  | 4172909 |
| Agricultural production  | 15341 |  |  | 15341 |
| Commercial and industrial  | 1516403 |  |  | 1516403 |
| Municipal  | 51310 |  |  | 51310 |
| Residential construction  | 2322492 |  |  | 2322492 |
| Revolving, open-end  | 1732809 | 29892 |  | 1762701 |
| First liens  | 72612038 | 811268 | 851619 | 74274925 |
| Junior liens  | 706888 |  |  | 706888 |
| Consumer  | 1183117 | 20695 | 3407 | 1207219 |
| Total  | $86221979 | $861855 | $855026 | $87938860 |

---

Information regarding nonaccrual loans during the year ended June 30, 2025 and December 31, 2024 follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Nonaccrual <br> Loans With No <br> Allowance for <br> Credit Losses**  | **Nonaccrual <br> Loans With an <br> Allowance for <br> Credit Losses**  | **Total <br> Nonaccrual <br> Loans**  | **Interest <br> Income <br> Recognized on <br> Nonaccrual <br> Loans**  | **Amortized <br> Cost Basis of <br> Loans 90+ <br> Days Past Due <br> Not on <br> Nonaccrual**  |
| **June 30, 2025** |  |  |  |  |  |
| First liens  | $108382 | $— | $108382 | $— | $459552 |
| Consumer  | 3041 |  | 3041 |  |  |
| Total  | $111423 | $— | $111423 | $— | $459552 |

---

------

[**TABLE OF CONTENTS**](#TOC2)

#### P ioneer Federal Savings & Loan Association

#### Notes to Unaudited Financial Statements

#### Note 3: Loans (continued)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Nonaccrual <br> Loans With No <br> Allowance for <br> Credit Losses**  | **Nonaccrual <br> Loans With an <br> Allowance for <br> Credit Losses**  | **Total <br> Nonaccrual <br> Loans**  | **Interest <br> Income <br> Recognized on <br> Nonaccrual <br> Loans**  | **Amortized <br> Cost Basis of <br> Loans 90+ <br> Days Past Due <br> Not on <br> Nonaccrual**  |
| **December 31, 2024** |  |  |  |  |  |
| First liens  | $581576 | $— | $581576 | $— | $270043 |
| Consumer  | 3407 |  | 3407 |  |  |
| Total  | $584983 | $— | $584983 | $— | $270043 |

---

The Association did not have any loan modifications to borrowers experiencing financial difficulty during the six months ended June 30, 2025 and June 30, 2024.

Directors and executive officers of the Association, including their families and businesses in which they are principal owners, are considered related parties. Substantially all loans to these related parties were made on the same terms, including interest rates and collateral, as those prevailing at the time for comparable transactions with others and did not involve more than the normal risk of collectability or present other unfavorable features.

A summary of loans to directors, executive officers, and their affiliates as of June 30, 2025 and December 31, 2024 is as follows:

---

| | | |
|:---|:---|:---|
| | **June 30, 2025**  | **December 31, <br> 2024**  |
| Beginning balance  | $607052 | $631831 |
| New loans  |  | 35000 |
| Repayments  | (33499) | (59779) |
| Ending balance  | $573553 | $607052 |

---

#### Note 4: Regulatory Matters
The Association is subject to various regulatory capital requirements administered by federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory, and possibly additional discretionary, actions by regulators that, if undertaken, could have a direct material effect on the Association's financial statements.

In September 2019, the FDIC finalized a rule that introduced an optional simplified measure of capital adequacy known as the community bank leverage ratio (CBLR) framework. In order to qualify for the CBLR framework, the Association must have a Tier 1 leverage ratio of greater than 9%, less than $10 billion in total consolidated assets, and limited amounts of off-balance-sheet exposures and trading assets and liabilities. Under the final rule, an eligible community banking organization can opt out of the CBLR framework and revert back to a risk-weighting framework without restriction.

As of June 30, 2025 and December 31, 2024, the Association qualified for and elected to use the CBLR framework. An institution opting into the CBLR framework and meeting all requirements under the framework will be considered to have met the well-capitalized ratio requirements under the Prompt Corrective Action regulations and will not be required to report or calculate risk-based capital.

As of June 30, 2025, the most recent notification from the regulatory agencies categorized the Association as well capitalized under the regulatory framework for prompt corrective action. To be categorized as well capitalized, the Association must maintain minimum regulatory capital ratios as set

------

[**TABLE OF CONTENTS**](#TOC2)

#### P ioneer Federal Savings & Loan Association

#### Notes to Unaudited Financial Statements

#### Note 4: Regulatory Matters (continued)
forth in the table. There are no conditions or events since that notification that management believes have changed the Association's category.

The Association's actual capital amounts and ratios as of June 30, 2025 and December 31, 2024, are presented in the following table:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Actual**  | **Actual**  | **To Be Well Capitalized <br> Under Prompt Corrective <br> Action Provisions**  | **To Be Well Capitalized <br> Under Prompt Corrective <br> Action Provisions**  |
| **(Dollars in Thousands)**  | **Amount**  | **Ratio**  | **Amount**  | **Ratio**  |
| **June 30, 2025** |  |  |  |  |
| Community Bank Leverage Ratio  | $19003 | 17.00% | $10060 | ≥9.00% |
| **December 31, 2024** |  |  |  |  |
| Community Bank Leverage Ratio  | $18857 | 16.81% | $10096 | ≥9.00% |

---

#### Note 5: Fair Value Measurements
Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an order transaction between market participants on the measurement date. There are three levels of inputs that may be used to measure fair values:

*Level 1:* Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date.

*Level 2:* Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data.

*Level 3:* Significant observable inputs that reflect a company's own assumptions about the assumptions that market participants would use in pricing an asset or liability.

Some assets and liabilities, such as investment securities available for sale, are measured at fair value on a recurring basis under accounting principles generally accepted in the United States. Other assets and liabilities, such as collateral dependent loans, may be measured at fair value on a nonrecurring basis.

Following is a description of the valuation methodology and significant inputs used for each asset and liability measured at fair value on a recurring or nonrecurring basis, as well as the classification of the asset or liability within the fair value hierarchy.

*Investment securities available for sale* — Investment securities available for sale may be classified as Level 1, Level 2, or Level 3 measurements within the fair value hierarchy. Level 1 securities include investment securities traded on a national exchange. The fair value measurement of a Level 1 security is based on the quoted price of the security. Level 2 securities include U.S. government and agency securities, obligations of states and political subdivisions, and mortgage-backed securities. The fair value measurement of a Level 2 security is obtained from monthly brokerage account statements and is based on recent sales of similar securities and other observable market data.

*Loans* — Loans are not measured at fair value on a recurring basis. However, individually evaluated loans may be measured at fair value on a nonrecurring basis. The fair value measurement of a loan that is collateral dependent is based on the fair value of the underlying collateral. Independent appraisals are obtained that utilize one or more valuation methodologies — typically they will incorporate a comparable sales approach and an income approach. Management routinely evaluates the fair value measurements of

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[**TABLE OF CONTENTS**](#TOC2)

#### P ioneer Federal Savings & Loan Association

#### Notes to Unaudited Financial Statements

#### Note 5: Fair Value Measurements (continued)
independent appraisers and adjusts those valuations based on differences noted between actual selling prices of collateral and the most recent appraised value. Such adjustments are usually significant, which results in a Level 3 classification. All other individually evaluated loan measurements are based on other loss estimation methodologies and, thus, are not fair value measurements.

*Mutual funds* — Mutual funds are considered equity securities with a readily determinable fair value and are measured at fair value on a recurring basis. The fair value measurement of equity securities with a readily determinable fair value are based on the quoted price of the security and is considered a Level 1 fair value measurement.

Information regarding the fair value of assets and liabilities measured at fair value on a recurring basis as of June 30, 2025 and December 31, 2024 follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Recurring Fair Value Measurements Using**  | **Recurring Fair Value Measurements Using**  | **Recurring Fair Value Measurements Using**  | |
| | **Quoted Prices <br> in Active <br> Markets for <br> Identical <br> Instruments <br> (Level 1)**  | **Significant <br> Other <br> Observable <br> Inputs <br> (Level 2)**  | **Significant <br> Unobservable <br> Inputs <br> (Level 3)**  | **Total**  |
| **June 30, 2025** |  |  |  |  |
| Assets: |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Investment securities available for sale  | $— | $9411834 | $— | $9411834 |
| &nbsp;&nbsp;&nbsp; Other investments – mutual funds  | 287361 |  |  | 287361 |
| Totals  | $287361 | $9411834 | $— | $9699195 |
| **December 31, 2024** |  |  |  |  |
| Assets: |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Investment securities available for sale  | $— | $9538032 | $— | $9538032 |
| &nbsp;&nbsp;&nbsp; Other investments – mutual funds  | 301635 |  |  | 301635 |
| Totals  | $301635 | $9538032 | $— | $9839667 |

---

There were no assets and liabilities measured at fair value on a nonrecurring basis as of June 30, 2025 and December 31, 2024.

The Association estimates fair value of all financial instruments regardless of whether such instruments are measured at fair value. The following methods and assumptions were used by the Association to estimate fair value of financial instruments not previously discussed.

*Cash and cash equivalents* — The carrying value approximates fair value.

*Investment securities held to maturity* — Fair value of investment securities held to maturity is based on dealer quotations on similar securities near period-end.

*FHLB stock* — The carrying value approximates fair value.

*Accrued interest receivable* — The carrying value approximates fair value.

*Cash value of life insurance* — The carrying value approximates fair value.

*Deposits* — Fair value of deposits with no stated maturity, such as NOW, passbook, and insured money market accounts, by definition, is the amount payable on demand on the reporting date. Fair value

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[**TABLE OF CONTENTS**](#TOC2)

#### P ioneer Federal Savings & Loan Association

#### Notes to Unaudited Financial Statements

#### Note 5: Fair Value Measurements (continued)
of certificates of deposit is estimated using discounted cash flows applying interest rates currently offered on issue of similar time deposits.

*Advance payments by borrowers for taxes and insurance* — The carrying value approximates fair value.

*Federal Home Loan Bank advances* — Federal Home Loan Bank advances are carried at cost, and the fair value is obtained from a third party using actual Association data and current market rates.

*Accrued interest payable* — The carrying value approximates fair value.

The carrying value and estimated fair value of financial instruments at June 30, 2025 and December 31, 2024 follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Carrying <br> Value**  | **Estimated <br> Fair Value**  | **Fair Value Hierarchy**  | **Fair Value Hierarchy**  | **Fair Value Hierarchy**  |
| | **Carrying <br> Value**  | **Estimated <br> Fair Value**  | **Level 1**  | **Level 2**  | **Level 3**  |
| **June 30, 2025** |  |  |  |  |  |
| Financial assets: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Cash and cash equivalents  | $9198932 | $9198932 | $9198932 | $— | $— |
| &nbsp;&nbsp;&nbsp; Investment securities available <br> for sale  | 9411834 | 9411834 |  | 9411834 |  |
| &nbsp;&nbsp;&nbsp; Investment securities held to maturity  | 1849761 | 1762254 |  | 1762254 |  |
| &nbsp;&nbsp;&nbsp; Loans, net  | 85131800 | 77420245 |  |  | 77420245 |
| &nbsp;&nbsp;&nbsp; FHLB stock  | 427400 | 427400 |  | 427400 |  |
| &nbsp;&nbsp;&nbsp; Mutual funds  | 287361 | 287361 | 287361 |  |  |
| &nbsp;&nbsp;&nbsp; Accrued interest receivable  | 384856 | 384856 | 384856 |  |  |
| &nbsp;&nbsp;&nbsp; Cash value of life insurance  | 754002 | 754002 |  | 754002 |  |
| Total  | $107445946 | $99646884 | $9871149 | $12355490 | $77420245 |
| Financial liabilities: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Deposits  | $85842459 | $85706459 | $56174369 | $— | $29532090 |
| &nbsp;&nbsp;&nbsp; Advance payments by borrowers for taxes and insurance  | 135302 | 135302 |  | 135302 |  |
| &nbsp;&nbsp;&nbsp; Federal Home Loan Bank advances  | 8000000 | 8032000 |  | 8032000 |  |
| &nbsp;&nbsp;&nbsp; Accrued interest payable  | 94463 | 94463 | 94463 |  |  |
| Total  | $94072224 | $93968224 | $56268832 | $8167302 | $29532090 |

---

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[**TABLE OF CONTENTS**](#TOC2)

#### P ioneer Federal Savings & Loan Association

#### Notes to Unaudited Financial Statements

#### Note 5: Fair Value Measurements (continued)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Carrying <br> Value**  | **Estimated <br> Fair Value**  | **Fair Value Hierarchy**  | **Fair Value Hierarchy**  | **Fair Value Hierarchy**  |
| | **Carrying <br> Value**  | **Estimated <br> Fair Value**  | **Level 1**  | **Level 2**  | **Level 3**  |
| **December 31, 2024** |  |  |  |  |  |
| Financial assets: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Cash and cash equivalents  | $6433487 | $6433487 | $6433487 | $— | $— |
| &nbsp;&nbsp;&nbsp; Investment securities available <br> for sale  | 9538032 | 9538032 |  | 9538032 |  |
| &nbsp;&nbsp;&nbsp; Investment securities held to maturity  | 2005207 | 1912680 |  | 1912680 |  |
| &nbsp;&nbsp;&nbsp; Loans, net  | 86327215 | 75607000 |  |  | 75607000 |
| &nbsp;&nbsp;&nbsp; FHLB stock  | 427700 | 427700 |  | 427700 |  |
| &nbsp;&nbsp;&nbsp; Mutual funds  | 301635 | 301635 | 301635 |  |  |
| &nbsp;&nbsp;&nbsp; Accrued interest receivable  | 361572 | 361572 | 361572 |  |  |
| &nbsp;&nbsp;&nbsp; Cash value of life insurance  | 744112 | 744112 |  | 744112 |  |
| Total  | $106138960 | $95326218 | $7096694 | $12622524 | $75607000 |
| Financial liabilities: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Deposits  | $85089582 | $84992581 | $52411346 | $— | $32581235 |
| &nbsp;&nbsp;&nbsp; Advance payments by borrowers for taxes and insurance  | 54200 | 54200 |  | 54200 |  |
| &nbsp;&nbsp;&nbsp; Federal Home Loan Bank advances  | 8000000 | 8009000 |  | 8009000 |  |
| &nbsp;&nbsp;&nbsp; Accrued interest payable  | 105112 | 105112 | 105112 |  |  |
| Total  | $93248894 | $93160893 | $52516458 | $8063200 | $32581235 |

---

*Limitations* — The fair value of a financial instrument is the current amount that would be exchanged between market participants, other than in a forced liquidation. Fair value is best determined based upon quoted market prices. However, in many instances, there are no quoted market prices for the Association's various financial instruments. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. Accordingly, the fair value estimates may not be realized in an immediate settlement of the instrument. Consequently, the aggregate fair value amounts presented may not necessarily represent the underlying fair value of the Association.

Fair value estimates are made at a specific point in time based on relevant market information and information about the financial instrument. These estimates do not reflect any premium or discount that could result from offering for sale at one time the Association's entire holdings of a particular instrument. Because no market exists for a significant portion of the Association's financial instruments, fair value estimates are based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments, and other factors. These estimates are subjective in nature and involve uncertainties and matters that could affect the estimates. Fair value estimates are based on existing on- and off-balance-sheet financial instruments without attempting to estimate the value of anticipated future business. Deposits with no stated maturities are defined as having a fair value equivalent to the amount payable on demand. This prohibits adjusting fair value derived from retaining those deposits for an expected future period of time. This component, commonly referred to as a deposit base intangible, is neither considered in the above amounts nor is it recorded as an intangible asset on the balance sheet.

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[**TABLE OF CONTENTS**](#TOC2)

#### P ioneer Federal Savings & Loan Association

#### Notes to Unaudited Financial Statements

#### Note 5: Fair Value Measurements (continued)
In addition, the tax ramifications related to the realization of the unrealized gains and losses can have a significant effect on fair value estimates and have not been considered in the estimates.

#### Note 6: Subsequent Events
The Board of Directors of the Association anticipates approving a plan of conversion to a stock bank (Plan) in the third quarter of 2025. The Plan is subject to the approval of the Federal Deposit Insurance Corporation and the Montana Department of Banking, and it must be approved by the affirmative vote of a simple majority of the total votes eligible to be cast by the voting members of the Association at a special meeting. The Plan, if approved by at least two-thirds of the Board of Directors, will set forth that the Association proposes to convert into a stock bank with the establishment of a bank holding company, as parent of the newly formed stock bank. As part of any plan of conversion, the Association will be required to determine the total offering value and number of shares of common stock based upon an independent appraiser's valuation. It is anticipated that the Association's Board of Directors will adopt an employee stock ownership plan (ESOP), which will subscribe for up to approximately 8 – 10% of the common stock sold in the offering.

All costs associated with issuing the common stock will be deducted from the sales proceeds of the offering. If the offering is unsuccessful, all costs will be charged to operations. Association had incurred deferred conversion costs totaling approximately $424,000 as of September 22, 2025.

At the completion of the conversion to stock form, the Association will maintain a liquidation account in the amount of the net worth of the Association prior to conversion. The liquidation accounting will be maintained for the benefit of eligible savings account holders who maintain deposit accounts in the Association after conversion.

The conversion, if approved, will be accounted for as a change in corporate form with the historic basis of the Association's assets, liabilities and equity unchanged as a result. Any newly formed company would be an emerging growth company, and, for as long as it continues to be an emerging growth company, it may choose to take advantage of exemptions from various reporting requirements applicable to other public companies but not to "emerging growth companies."

Management has evaluated subsequent events for recognition and disclosure in the financial statements through September 22, 2025, which is the date the financial statements were available to be issued.

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[**TABLE OF CONTENTS**](#TOC2)

#### Report of Independent Registered Public Accounting Firm
To the Audit Committee of the Board of Directors of Pioneer Federal Savings & Loan Association

#### Opinion on the Financial Statements
We have audited the accompanying balance sheets of Pioneer Federal Savings & Loan Association (the "Association") as of December 31, 2024 and 2023, the related statements of operations, comprehensive income (loss), net worth and cash flows for the years then ended, and the related notes to the financial statements (collectively, the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Association as of December 31, 2024 and 2023, and the results of its operations and its cash flows for the years then ended, in conformity with accounting principles generally accepted in the United States of America.

#### Basis for Opinion
These financial statements are the responsibility of the Association's management. Our responsibility is to express an opinion on the Association's financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Association in accordance with U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Association is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Association's internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

/s/ Elliott Davis, LLC

We have served as the Association's auditor since 2025.

Columbia, South Carolina

September 22, 2025

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[**TABLE OF CONTENTS**](#TOC2)

#### Pioneer Federal Savings & Loan Association

#### Balance Sheets

---

| | | |
|:---|:---|:---|
| **As of December 31,**  | **2024**  | **2023**  |
| **ASSETS**  |  |  |
| Cash and due from banks  | $1029393 | $1010448 |
| Interest-bearing deposits  | 5404094 | 9182472 |
| &nbsp;&nbsp;&nbsp; Cash and cash equivalents  | 6433487 | 10192920 |
|  Investment securities available for sale, net of allowance for credit losses of $0 at December 31, 2024 and 2023 (amortized cost of $10,315,423 and $12,217,585 at December 31, 2024 and 2023, respectively)  | 9538032 | 11303990 |
|  Investment securities held to maturity, net of allowance for credit losses of $0 at December 31, 2024 and 2023 (fair value of $1,912,680 and $2,788,262 at December 31, 2024 and 2023, respectively)  | 2005207 | 2835565 |
|  Loans, net of allowance for credit losses of $1,208,149 and $1,140,550 at December 31, 2024 and 2023, respectively  | 86327215 | 81036230 |
| Premises and equipment, net  | 5118229 | 4715208 |
| Other investments  | 729335 | 713120 |
| Accrued interest receivable  | 361572 | 323417 |
| Cash value of life insurance  | 744112 | 763732 |
| Deferred tax asset  | 563577 | 665449 |
| Other assets  | 288212 | 178145 |
| Total Assets  | $112108978 | $112727776 |
| **LIABILITIES**  |  |  |
| Deposits  | $85089582 | $86071413 |
| Advance payments by borrowers for taxes and insurance  | 54200 | 36929 |
| Federal Home Loan Bank advances  | 8000000 | 8000000 |
| Accrued interest payable  | 105112 | 33065 |
| Deferred compensation  | 364886 | 397078 |
| Accrued income taxes payable  | 75539 | 80867 |
| Reserve for unfunded loan commitments  | 35041 | 74409 |
| Other liabilities  | 231087 | 204563 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Liabilities  | 93955447 | 94898324 |
| **NET WORTH**  |  |  |
| Retained earnings  | 18607441 | 18383704 |
| Accumulated other comprehensive loss  | (453910) | (554252) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Net Worth  | 18153531 | 17829452 |
| Total Liabilities and Net Worth  | $112108978 | $112727776 |

---

See accompanying notes to financial statements.

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#### Pioneer Federal Savings & Loan Association

#### Statements of Operations

---

| | | |
|:---|:---|:---|
| **Years Ended December 31,**  | **2024**  | **2023**  |
| Interest income: |  |  |
| &nbsp;&nbsp;&nbsp; Loans, including fees  | $4375707 | $3748484 |
| &nbsp;&nbsp;&nbsp; Investment securities:  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Taxable  | 220969 | 251151 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Tax-exempt  | 121493 | 119537 |
| &nbsp;&nbsp;&nbsp; Other  | 296563 | 261782 |
| &nbsp;&nbsp;&nbsp; Total interest income  | 5014732 | 4380954 |
| Interest expense: |  |  |
| &nbsp;&nbsp;&nbsp; Deposits  | 1472703 | 972906 |
| &nbsp;&nbsp;&nbsp; FHLB advances  | 349733 | 115622 |
| &nbsp;&nbsp;&nbsp; Total interest expense  | 1822436 | 1088528 |
| Net interest income  | 3192296 | 3292426 |
| Provision for credit losses on loans  | 67599 | 18094 |
| (Recovery of) provision for credit losses on unfunded loan commitments  | (39368) | 16875 |
| Net interest income after provision for credit losses  | 3164065 | 3257457 |
| Noninterest income: |  |  |
| &nbsp;&nbsp;&nbsp; Service fees  | 67892 | 65214 |
| &nbsp;&nbsp;&nbsp; Interchange fees  | 127435 | 137558 |
| &nbsp;&nbsp;&nbsp; Loan servicing income  | 2827 | 2672 |
| &nbsp;&nbsp;&nbsp;&nbsp; (Decrease) increase in cash value of life insurance  | (19620) | 56496 |
| &nbsp;&nbsp;&nbsp; Net gain on sale of premises and equipment  | 311069 |  |
| &nbsp;&nbsp;&nbsp; Other noninterest income  | 5887 | 6492 |
| &nbsp;&nbsp;&nbsp; Total noninterest income  | 495490 | 268432 |
| Noninterest expense: |  |  |
| &nbsp;&nbsp;&nbsp; Salaries and employee benefits  | 1614041 | 1633476 |
| &nbsp;&nbsp;&nbsp; Occupancy  | 486663 | 226908 |
| &nbsp;&nbsp;&nbsp; Data processing  | 413892 | 434231 |
| &nbsp;&nbsp;&nbsp; Advertising  | 104027 | 114487 |
| &nbsp;&nbsp;&nbsp; Professional fees  | 129164 | 118319 |
| &nbsp;&nbsp;&nbsp; Directors fees  | 110745 | 129105 |
| &nbsp;&nbsp;&nbsp; Insurance  | 77139 | 74978 |
| &nbsp;&nbsp;&nbsp; Loan costs  | 69990 | 62802 |
| &nbsp;&nbsp;&nbsp; ATM fee expense  | 96542 | 94873 |
| &nbsp;&nbsp;&nbsp; Other noninterest expense  | 260121 | 246486 |
| &nbsp;&nbsp;&nbsp; Total noninterest expense  | 3362324 | 3135665 |
| Net income before income taxes  | 297231 | 390224 |
| Income tax expense  | 73494 | 132980 |
| Net income  | $223737 | $257244 |

---

See accompanying notes to financial statements.

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#### Pioneer Federal Savings & Loan Association

#### Statements of Comprehensive Income (Loss)

---

| | | |
|:---|:---|:---|
| **Years Ended December 31,**  | **2024**  | **2023**  |
| Net income  | $223737 | $257244 |
| Other comprehensive income: |  |  |
| &nbsp;&nbsp;&nbsp; Unrealized gain on investment securities available for sale  | 136204 | 349298 |
| &nbsp;&nbsp;&nbsp; Related tax effect  | (35862) | (91970) |
| Other comprehensive income, net of tax  | 100342 | 257328 |
| Total comprehensive income  | $324079 | $514572 |

---

See accompanying notes to financial statements.

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#### Pioneer Federal Savings & Loan Association

#### Statements of Net Worth

---

| | | | |
|:---|:---|:---|:---|
| | **Retained <br> Earnings**  | **Accumulated <br> Other <br> Comprehensive <br> Income (Loss)**  | **Total <br> Net Worth**  |
| Balances at January 1, 2023  | $18126460 | $(811580) | $17314880 |
| Net income  | 257244 |  | 257244 |
| Other comprehensive income  |  | 257328 | 257328 |
| Balances at December 31, 2023  | 18383704 | (554252) | 17829452 |
| Net income  | 223737 |  | 223737 |
| Other comprehensive income  |  | 100342 | 100342 |
| Balances at December 31, 2024  | $18607441 | $(453910) | $18153531 |

---

See accompanying notes to financial statements.

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#### Pioneer Federal Savings & Loan Association

#### Statements of Cash Flows

---

| | | |
|:---|:---|:---|
| **Years Ended December 31,**  | **2024**  | **2023**  |
| Change in cash and cash equivalents: |  |  |
| &nbsp;&nbsp;&nbsp; Cash flows (used in) from operating activities:  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income  | $223737 | $257244 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Adjustments to reconcile net income to net cash (used in) from operating <br> activities:  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net amortization of investment securities  | 67395 | 82165 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Provision for credit losses  | 28231 | 34969 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Depreciation  | 313345 | 76704 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net gain on sale of premises and equipment  | (311069) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net change in cash value of life insurance  | 19620 | (56496) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Provision for (benefit from) deferred income tax  | 66010 | (67727) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Changes in operating assets and liabilities:  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accrued interest receivable  | (38155) | (29927) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other assets  | (110067) | (49819) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accrued interest payable  | 72047 | 28591 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other liabilities  | (10996) | 116276 |
| &nbsp;&nbsp;&nbsp; Net cash from operating activities  | 320098 | 391980 |
| &nbsp;&nbsp;&nbsp; Cash flows (used in) from investing activities:  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Proceeds from calls and maturities of investment securities held to maturity  | 835405 | 427708 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Proceeds from calls and maturities of investment securities available for sale  | 1829720 | 1706402 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net change in other investments  | (16215) | (303451) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net increase in loans  | (5358584) | (3532784) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Proceeds from disposal of premises and equipment  | 318337 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Purchases of premises and equipment  | (723634) | (3290121) |
| &nbsp;&nbsp;&nbsp; Net cash used in investing activities  | (3114971) | (4992246) |
| &nbsp;&nbsp;&nbsp; Cash flows (used in) from financing activities:  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net increase (decrease) in deposits  | (981831) | 794993 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net increase (decrease) in advance payments by borrowers for taxes and insurance  | 17271 | (61233) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Proceeds from Federal Home Loan Bank advances  |  | 8000000 |
| &nbsp;&nbsp;&nbsp; Net cash (used in) from financing activities  | (964560) | 8733760 |
| Net change in cash and cash equivalents  | (3759433) | 4133494 |
| Cash and cash equivalents at beginning of year  | 10192920 | 6059426 |
| Cash and cash equivalents at end of year  | $6433487 | $10192920 |
| **Supplemental cash flow information:** |  |  |
| &nbsp;&nbsp;&nbsp; Cash paid during the year for:  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest  | $1750389 | $1059937 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income taxes  | 12811 | 129354 |
| **Noncash investing and financing activities:** |  |  |
| &nbsp;&nbsp;&nbsp; Change in unrealized gain on investment securities available for sale  | 100342 | 257328 |

---

See accompanying notes to financial statements.

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[**TABLE OF CONTENTS**](#TOC2)

#### Pioneer Federal Savings & Loan Association

#### Notes to Financial Statements

#### Note 1: Summary of Significant Accounting Policies

#### Nature of Business
Pioneer Federal Savings & Loan Association (the "Association") provides a variety of financial services to individuals and corporate members through its branches in Dillon and Deer Lodge, Montana. The Association's primary source of revenue is residential single-family loans.

#### Segment Information
The Association's reportable segment is determined by the President/Chief Executive Officer (CEO) based upon information provided about the Association's products and services offered, primarily banking operations. The segment is also distinguished by the level of information provided by the CEO, who uses such information to review performance of various components of the business, which are then aggregated if operating performance, products/services, and customers are similar. The CEO will evaluate the financial performance of the Association's business components such as evaluating revenue streams, significant expenses, and budget to actual results in assessing the Association's segment and in the determination of allocating resources. The CEO uses revenue streams to evaluate product pricing and significant expenses to assess performance and evaluate return on assets. The CEO uses net income (loss) to benchmark the Association against its competitors. The benchmarking analysis coupled with monitoring of budget to actual results are used in assessing performance and in establishing compensation. Loans, investments, and deposit product service fees provide the revenues in the banking operation. Interest expense and salaries and employee benefits, as reported on the statements of operations, provide the significant expenses in the banking operation. All operations are domestic.

The Association operates under a single segment. Segment performance is evaluated using net income (loss). The measure of segment assets is reported on the balance sheets as total assets. Noncash items, such as depreciation and amortization, as well as expenditures for premises and equipment, are reported on the statements of cash flows.

#### Use of Estimates in Preparation of Financial Statements
The preparation of the accompanying financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting period. Actual results may differ from these estimates.

#### New Accounting Pronouncements
The following Accounting Standards Update (ASU) has been issued by FASB and may impact the Association's financial statements in future reporting periods.

ASU 2023-09, *Improvements to Income Tax Disclosures* — For public business entities, this standard requires disclosure about specific categories in the income tax rate reconciliation and additional information for reconciling items that meet a quantitative threshold. The standard also requires entities to disclose certain disaggregated information regarding income (loss) before income taxes, income tax expense (benefit), and income taxes paid. Finally, the standard eliminates certain existing disclosure requirements. This new standard is effective for financial statements issued for annual periods beginning after December 15, 2024. Early adoption is permitted. The Association does not believe this new standard will have a significant impact on its financial statements.

#### Cash and Cash Equivalents
For purposes of reporting cash flows in the financial statements, cash and cash equivalents include cash on hand, interest-bearing and non-interest-bearing accounts in other financial institutions, and federal

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#### Pioneer Federal Savings & Loan Association

#### Notes to Financial Statements

#### Note 1: Summary of Significant Accounting Policies (continued)
funds sold, all of which have original maturities of three months or less and are utilized in the daily operations of the Association.

#### Investment Securities
Investment securities that management has the positive intent and ability to hold to maturity are classified as held to maturity and recorded at amortized cost. Securities not classified as held to maturity are classified as available for sale and are carried at fair value, with unrealized gains and losses reported in other comprehensive income or loss. Amortization of premiums and accretion of discounts are recognized in interest income using the effective interest method. Premiums that exceed the amount repayable by the issuer at the next call date are amortized to the next call date. Other premiums and discounts are amortized (accreted) over the estimated lives of the securities. Gains and losses on the sale of securities are recorded on the trade date and determined using the specific identification method.

Effective January 1, 2023, the Association uses a current expected credit loss ("CECL") model to estimate the allowance for credit losses on securities held to maturity. The CECL model considers historical loss rates and other qualitative adjustments, as well as a forward-looking component that considers reasonable and supportable forecasts over the expected life of each security.

Management believes the Association will collect all amounts owed on securities held to maturity issued by the U.S. government or a U.S. government-sponsored agency since these securities are either explicitly or implicitly guaranteed by the U.S. government, are highly rated by major rating agencies, and have a long history of no credit losses.

The past due status of a security is based on the contractual terms in the security. The accrual of interest on a security is discontinued when the security becomes 90 days delinquent or whenever management believes the issuer will be unable to make payments as they become due. When securities are placed on nonaccrual status, all unpaid accrued interest is reversed against interest income.

The Association excludes accrued interest receivable from the amortized cost basis of securities held to maturity when estimating credit losses and when presenting required disclosures in the financial statements. Accrued interest on securities held to maturity totaling $13,280 and $15,760 at December 31, 2024 and 2023, respectively, was excluded from the amortized cost basis of securities held to maturity.

Effective January 1, 2023, the Association evaluates individual securities available for sale in an unrealized loss position by first determining whether the decline in fair value below the amortized cost basis of the security has resulted from a credit loss or other factors. A credit loss exists when the present value of cash flows expected to be collected from the security is less than the amortized cost basis of the security. In determining whether a credit loss exists, the Association considers the extent to which the fair value is less than the amortized cost basis, adverse conditions related to the security, the industry, or geographic areas, the payment structure of the investment security, failure of the issuer to make scheduled payments, and any changes to the rating of the security. Impairment related to credit losses is recognized through an allowance for credit losses up to the amount that fair value is less than the amortized cost basis. Changes to the allowance are recognized through earnings as a provision for (or recovery of) credit losses. Impairment related to other factors is recognized in other comprehensive income.

If the Association intends to sell, or it is more likely than not the Association will be required to sell, the security before recovery of its amortized cost basis, any allowance for credit losses is written off and the amortized cost basis is written down to the security's fair value at the reporting date with any incremental impairment recognized in earnings.

The accrual of interest on a security available for sale is discontinued when the security becomes 90 days delinquent or whenever management believes the issuer will be unable to make payments as they

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#### Pioneer Federal Savings & Loan Association

#### Notes to Financial Statements

#### Note 1: Summary of Significant Accounting Policies (continued)
become due. When securities are placed on nonaccrual status, all unpaid accrued interest is reversed against interest income. No accrued interest was written off during 2024 and 2023.

The Association excludes accrued interest receivable from the amortized cost basis of securities available for sale when estimating credit losses and when presenting required disclosures in the financial statements. Accrued interest on securities available for sale totaling $59,936 and $59,531 at December 31, 2024 and 2023, respectively, was excluded from the amortized cost basis of securities available for sale.

#### Loans Held for Sale
Loans originated and intended for sale in the secondary market are carried at the lower of cost or estimated fair value in the aggregate. Net unrealized losses, if any, are recognized through a valuation allowance by charges to income. Realized gains and losses on the sale of loans held for sale are determined using the specific-identification method. The Association had no loans held for sale at December 31, 2024 and 2023.

#### Loans
Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff generally are reported at their outstanding unpaid principal balances adjusted for deferred loan fees and costs, charge-offs, and an allowance for credit losses. Interest on loans is accrued and credited to income based on the unpaid principal balance. Loan-origination fees, net of certain direct origination costs, are deferred and recognized as an adjustment of the related loan yield using the effective interest method.

The past due status of a loan is based on the contractual terms in the loan agreement. The accrual of interest on a loan is typically discontinued when the loan becomes 90 days delinquent or whenever management believes the borrower will be unable to make payments as they become due. When loans are placed on nonaccrual status or charged off, all unpaid accrued interest is reversed against interest income. The interest on these loans is subsequently accounted for on the cash basis if collection of the remaining recorded investment in the loan is still expected or using the cost-recovery method when collection of the remaining recorded investment is in doubt. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured.

#### Allowance for Credit Losses on Loans and Unfunded Loan Commitments
The Association adopted ASU No. 2016-13 and began accounting for credit losses under ASC 326, *Financial Instruments — Credit Losses*, on January 1, 2023. The new standard significantly changed the impairment model for most financial assets that are measured at amortized cost, including off-balance sheet credit exposures, from an incurred loss impairment model to an expected credit loss model.

The allowance for credit losses on loans is a valuation allowance that is deducted from the loans' amortized cost basis to present the net amount expected to be collected on the Association's loan portfolio. The allowance for credit losses on loans is established through provisions for credit losses charged against earnings. When available information confirms that specific loans, or portions thereof, are uncollectible, these amounts are charged against the allowance for credit losses on loans, and subsequent recoveries, if any, are credited to the allowance for credit losses on loans.

The Association adopted ASC 326 and all related subsequent amendments thereto effective January 1, 2023 using the modified retrospective approach for all financial assets measured at amortized cost and off-balance sheet credit exposures. The transition adjustment of the adoption of CECL included a decrease in the allowance for credit losses on loans of $57,534, which is presented as a reduction to net loans outstanding, and an increase in the liability for unfunded commitments of $57,534, which is recorded within other liabilities. The Company did not record an adjustment to retained earnings as of January 1,

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#### Pioneer Federal Savings & Loan Association

#### Notes to Financial Statements

#### Note 1: Summary of Significant Accounting Policies (continued)
2023, for the cumulative effect of adopting CECL, due to the negligible difference in the reserve calculation as a result of the transition from the allowance for loan losses to CECL. Results for reporting periods beginning after January 1, 2023 are presented under CECL while prior period amounts continue to be reported in accordance with previously applicable accounting standards ("Incurred Loss").

Management considers the following when assessing risk in the Association's loan portfolio segments:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Commercial loans are primarily for construction and land development, land acquisition, working capital, physical asset expansion, asset acquisition, and other. These loans are dependent on the industries tied to these loans and are made based primarily on historical and projected cash flow of the borrower and secondarily on the underlying collateral provided by the borrower. The cash flows of borrowers, however, may not behave as forecasted and collateral securing loans may fluctuate in value due to economic or individual performance factors. Financial information is obtained from the borrowers and/or the individual project to evaluate cash flows sufficiency to service debt and is periodically updated during the life of the loan. Loan performance may be adversely affected by factors impacting the general economy or conditions specific to the real estate market such as geographic location and/or property type.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Residential real estate loans are affected by the local residential real estate market, the local economy, and, for variable rate mortgages, movement in indices tied to these loans. At the time of origination, the Association evaluates the borrower's repayment ability through a review of debt to income and credit reports. Appraisals are obtained to support the loan amount. Financial information is obtained from the borrowers and/or the individual project to evaluate cash flows sufficiency to service debt at the time of origination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Consumer loans may take the form of installment loans, demand loans, or single payment loans and are extended to individuals for household, family, and other personal expenditures. At the time of origination, the Association evaluates the borrower's repayment ability through a review of debt to income and credit scores.

 *<u>Subsequent to the adoption of ASC 326:</u>* 

Effective January 1, 2023, the Association uses a current expected credit loss ("CECL") model to estimate the allowance for credit losses on loans. The CECL model considers historical loss rates and other qualitative adjustments, as well as a new forward-looking component that considers reasonable and supportable forecasts over the expected life of each loan. To develop the allowance for credit losses on loans estimate under the CECL model, the Association segments the loan portfolio into loan pools based on loan type and similar credit risk elements; performs an individual evaluation of certain collateral dependent and other credit-deteriorated loans; calculates the historical loss rates for the segmented loan pools; considers loss rates from peer data; applies the loss rates determined by management (historical, peer, or otherwise) over the calculated life of the collectively evaluated loan pools; adjusts for forecasted macro-level economic conditions and other anticipated changes in credit quality; and determines qualitative adjustments based on factors and conditions unique to the Association's loan portfolio.

Under the CECL model, loans that do not share similar risk characteristics with loans in their respective pools are individually evaluated for expected credit losses and are excluded from the collectively evaluated loan credit loss estimates. Management individually evaluates loans with evidence of credit deterioration. For loans individually evaluated, a specific reserve is estimated based on either the fair value of collateral or the discounted value of expected future cash flows.

A loan is considered to be collateral dependent when, based upon management's assessment, the borrower is experiencing financial difficulty and repayment is expected to be provided substantially through the operation or sale of the collateral. For collateral dependent loans, expected credit losses are based on

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#### Pioneer Federal Savings & Loan Association

#### Notes to Financial Statements

#### Note 1: Summary of Significant Accounting Policies (continued)
the fair value of the collateral as of the date of the balance sheet, with consideration for estimated selling costs if satisfaction of the loan depends on the sale of the collateral.

The following describes the types of collateral that secure collateral dependent loans:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Other construction and land/land development, farmland, and residential construction loans are primarily secured by commercial, agricultural, and residential properties, respectively, which are under construction and/or redevelopment, and by raw land.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Commercial real estate loans are primarily secured by office and industrial buildings, warehouses, retail shopping facilities, and various special purpose properties, including hotels and restaurants.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Agricultural production, commercial and industrial, and municipal loans considered collateral dependent are primarily secured by accounts receivable, inventory, and equipment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Revolving, open-end loans are primarily secured by liens on residential real estate and extended lines of credit.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • First liens are primarily secured by first liens on residential real estate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Junior liens are primarily secured by junior liens on residential real estate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Consumer loans are primarily secured by personal property.

Management evaluates all collectively evaluated loans using the weighted average remaining life ("remaining life") methodology. The remaining life methodology applies calculated quarterly net loss rates to collectively evaluated loan pools on a periodic basis based on the estimated remaining life of each pool. The estimated losses under the remaining life methodology are then adjusted for qualitative factors deemed appropriate by management.

The estimated remaining life of each pool is determined using quarterly, pool-based attrition measurements. The Association's historical call report data, or peer data, are considered for utilization in historical loss rate calculations, and the lookback period for each collectively evaluated loan pool is determined by management based upon the estimated remaining life of the pool. Forecasted historical loss rates are calculated using the Association's historical data based on the lookback, forecast, and reversion period inputs by management. Management elected to utilize a 24-month forecast period, with immediate reversion to historical losses after the forecast period.

The quantitative analysis described above is supplemented with other qualitative factors based on the risks present for each collectively evaluated loan pool. These qualitative factors include: changes in lending policies, procedures, and practices; national and local economic trends and conditions; experience, ability, and depth of lending management and other relevant staff; levels of and trends in delinquencies and troubled loans; external factors; and changes in collateral values.

The Association excludes accrued interest receivable from the amortized cost basis of loans when estimating credit losses and when presenting required disclosures in the financial statements. Accrued interest on loans totaling $288,356 and $248,126 at December 31, 2024 and 2023, respectively.

In addition to the allowance for credit losses on loans, the Association maintains a reserve for unfunded loan commitments at a level that management believes is adequate to absorb estimated probable credit losses over the contractual terms of the Association's noncancellable loan commitments. The reserve for unfunded commitments is established through provisions for credit losses charged against earnings.

Unfunded loan commitments are segmented into the same pools used for estimating the allowance for credit losses on loans. Estimated credit losses on unfunded loan commitments are based on the same methodology, inputs, and assumptions used to estimate credit losses on collectively evaluated loans, adjusted

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#### Pioneer Federal Savings & Loan Association

#### Notes to Financial Statements

#### Note 1: Summary of Significant Accounting Policies (continued)
for estimated funding probabilities. The estimated funding probabilities represent management's estimate of the amount of the current unfunded loan commitment that will be funded over the remaining contractual life of the commitment and is based on historical data.

The Association may modify loans to borrowers experiencing financial difficulty and grant certain concessions that include principal forgiveness, a term extension, an other-than-insignificant payment delay, an interest rate reduction, or a combination of these concessions. An assessment of whether the borrower is experiencing financial difficulty is made at the time of the loan modification.

Upon the Association's determination that a modified loan (or portion of a loan) has subsequently been deemed uncollectible, the loan (or portion of the loan) is written off. Therefore, the amortized cost basis of the loan is reduced by the uncollectible amount and the allowance for credit losses is adjusted by the same amount.

#### Premises and Equipment
Premises and equipment are stated at cost less accumulated depreciation computed on the straight-line method over the estimated useful lives of the assets.

#### Other Investments
Other investments include equity securities without a readily determinable fair value, Federal Home Loan Bank (FHLB) stock, and equity securities with a readily determinable fair value, such as mutual funds.

The Association has elected to account for equity securities without readily determinable fair values using the alternative measurement method. Under this method, these securities are carried at cost, minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment. The Association is required to hold FHLB stock as a member of the FHLB, and transfer of the stock is substantially restricted. The FHLB stock is pledged as collateral for outstanding FHLB advances. FHLB stock is evaluated for impairment on an annual basis.

Mutual funds have a readily determinable fair value and are measured at fair value with changes in fair value reported in net income. Gains and losses on the sale of mutual funds are recorded on the trade date and determined using the specific-identification method.

#### Other Real Estate
Other real estate acquired through, or in lieu of, loan foreclosure is held for sale and is initially recorded at fair value at the date of foreclosure, establishing a new cost basis. Subsequent to foreclosure, valuations are periodically performed by management, and the other real estate is carried at the lower of carrying amount or fair value less cost to sell. Revenue and expenses from operations and changes in the valuation allowance are included in other noninterest expense.

There were no residential real estate loans in the process of foreclosure or other real estate owned at December 31, 2024 and 2023.

#### Cash Value of Life Insurance
The Association has purchased life insurance policies on certain key executives. Life insurance is measured at the amount that could be realized under the insurance contract as of the balance sheet date, which generally is the cash surrender value of the policy.

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[**TABLE OF CONTENTS**](#TOC2)

#### Pioneer Federal Savings & Loan Association

#### Notes to Financial Statements

#### Note 1: Summary of Significant Accounting Policies (continued)

#### Revenue from Contracts with Customers
The core revenue recognition principle requires the Association to recognize revenue to depict the transfer of services or products to customers in an amount that reflects the consideration to which the Association expects to be entitled to receive in exchange for those services or products recognized as performance obligations are satisfied. The guidance includes a five-step model to apply to revenue recognition, consisting of the following; (1) identify the contract with a customer; (2) identify the performance obligation(s) within the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligation(s) within the contract; and (5) recognize revenue when (or as) the performance obligation(s) are/is satisfied.

The Association generally fully satisfies its performance obligations on its contracts with customers as services are rendered, and the transaction prices are typically fixed; charged either on a periodic basis or based on activity. Since performance obligations are satisfied as services are rendered and the transaction prices are fixed, there is little judgment involved in applying revenue recognition principles (ASC 606) that significantly affects the determination of the amount and timing of revenue from contracts with customers.

The following significant revenue-generating transactions are within the scope of ASC 606, which are presented in the consolidated statements of operations as components of noninterest income:

Service fees — The Association earns fees from its deposit customers for transaction-based, account maintenance, and overdraft services. Transaction-based fees, such as ATM use fees, wires, stop payment charges, statement rendering, and ACH fees, are recognized at the time the transaction is executed as that is the point in time the Association fulfills the customer's request. Account maintenance fees, which relate primarily to monthly service charges and maintenance fees, are earned over the course of a month, representing the period over which the Association satisfies the performance obligation. Overdraft fees are recognized at the point in time that the overdraft occurs as this corresponds with the Association's performance obligation.

Interchange fees — Customers use a bank-issued debit card to purchase goods and services, and the Association earns interchange fees on those transactions, typically a percentage of the sale amount of the transaction. The Association is considered an agent with respect to these transactions. Interchange fee payments received, net of related expense, are recognized as income daily, concurrently with the transaction processing services provided to the cardholder through the payment networks. There are no contingent debit card interchange fees recorded by the Association that could be subject to a claw-back in future periods.

Net gain (loss) on sales of other real estate — The Association records a gain or loss from the sale of other real estate when control of the property transfers to the buyer, which generally occurs at the time of an executed deed and transfer of control is completed. When the Association finances the sale to the buyer, the Association assesses whether the buyer is committed to perform their obligations under the contract and whether the Association expects to collect substantially all of the transaction price. Once these criteria are met, the asset is derecognized and the gain or loss on the sale is recognized. In determining the gain or loss on the sale, the Association adjusts the transaction price and related gain (loss) on sale if the financing does not include market terms.

#### Income Taxes
Deferred tax assets and liabilities have been determined using the liability method. Deferred tax assets and liabilities are determined based on the difference between the financial statements and tax bases of assets and liabilities as measured by the current enacted tax rates which will be in effect when these differences are expected to reverse. Provision (benefit) for deferred taxes is the result of changes in the deferred tax assets and liabilities.

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[**TABLE OF CONTENTS**](#TOC2)

#### Pioneer Federal Savings & Loan Association

#### Notes to Financial Statements

#### Note 1: Summary of Significant Accounting Policies (continued)
The Association may also recognize a liability for unrecognized tax benefits from uncertain tax positions. Unrecognized tax benefits represent the differences between a tax position taken or expected to be taken in a tax return and the benefit recognized and measured in the financial statements. Interest and penalties related to unrecognized tax benefits are classified as income tax expense.

With few exceptions, the Association is no longer subject to federal or state examination by tax authorities for years ending before December 31, 2021.

#### Rate Lock Commitments
The Association enters into commitments to originate loans whereby the interest rate on the loan is determined prior to funding (rate lock commitments). Rate lock commitments on mortgage loans that are intended to be sold are considered to be derivatives. Rate lock commitments are recorded only to the extent of fees received since recording the estimated fair value of these commitments would not have a significant impact on the financial statements.

#### Off-Balance-Sheet Instruments
In the ordinary course of business, the Association has entered into off-balance-sheet financial instruments, including commitments to extend credit and unfunded commitments. Such financial instruments are recorded in the financial statements when they become payable.

#### Concentration of Credit Risk
Most of the Association's loans and off-balance-sheet commitments have been granted to borrowers in the Association's market area. The concentrations of credit by type are set forth in Note 4.

#### Legal Contingencies
Various legal claims arise from time to time in the normal course of business. In the opinion of management, any liability resulting from such proceedings would not have a material impact on the financial statements of the Association.

#### Advertising
Advertising costs are expensed as incurred.

#### Other Comprehensive Income (Loss)
Other comprehensive income (loss) is shown on the statements of comprehensive income (loss). Accumulated other comprehensive income (loss) consists of unrealized gain (loss) on securities available for sale, net of tax, and is shown on the statements of net worth.

#### Transfers of Financial Assets
Transfers of financial assets are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when the assets have been isolated from the Association, the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and the Association does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity or the ability to unilaterally cause the holder to return specific assets.

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[**TABLE OF CONTENTS**](#TOC2)

#### Pioneer Federal Savings & Loan Association

#### Notes to Financial Statements

#### Note 2: Cash and Due From Banks
In the normal course of business, the Association maintains cash and due from bank balances with correspondent banks. Balances in these accounts may exceed the Federal Deposit Insurance Corporation's insured limit of $250,000. Management believes these financial institutions have strong credit ratings and that the credit risk related to these deposits is minimal.

#### Note 3: Investment Securities
The amortized cost, allowance for credit losses, and estimated fair value of investment securities available for sale with gross unrealized gains and losses at December 31 follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Amortized <br> Cost**  | **Gross <br> Unrealized <br> Gains**  | **Gross <br> Unrealized <br> Losses**  | **Allowance for <br> Credit Losses**  | **Estimated <br> Fair Value**  |
| **2024** |  |  |  |  |  |
| U.S. government and agency securities  | $1115983 | $— | $(106677) | $— | $1009306 |
|  Obligations of states and political subdivisions  | 3031756 | 1782 | (144859) |  | 2888679 |
| Mortgage-backed securities  | 6167684 | 4748 | (532385) |  | 5640047 |
|  Total investment securities available for sale  | $10315423 | $6530 | $(783921) | $— | $9538032 |
| **2023** |  |  |  |  |  |
| U.S. government and agency securities  | $1656453 | $— | $(145668) | $— | $1510785 |
|  Obligations of states and political subdivisions  | 3254899 | 8665 | (147756) |  | 3115808 |
| Mortgage-backed securities  | 7306233 | 261 | (629097) |  | 6677397 |
|  Total investment securities available for sale  | $12217585 | $8926 | $(922521) | $— | $11303990 |

---

The following table shows the fair value and gross unrealized losses of investment securities available for sale with unrealized losses at December 31, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Less Than 12 Months**  | **Less Than 12 Months**  | **12 Months or More**  | **12 Months or More**  | **Total**  | **Total**  |
| | **Fair Value**  | **Unrealized <br> Losses**  | **Fair Value**  | **Unrealized <br> Losses**  | **Fair Value**  | **Unrealized <br> Losses**  |
| **2024** |  |  |  |  |  |  |
|  U.S. government and agency securities  | $— | $— | $1009306 | $106677 | $1009306 | $106677 |
|  Obligations of states and political subdivisions  | 308493 | 2671 | 1923404 | 142188 | 2231897 | 144859 |
| Mortgage-backed securities  |  |  | 5440324 | 532385 | 5440324 | 532385 |
| Totals  | $308493 | $2671 | $8373034 | $781250 | $8681527 | $783921 |
| **2023** |  |  |  |  |  |  |
|  U.S. government and agency securities  | $— | $— | $1510785 | $145668 | $1510785 | $145668 |
|  Obligations of states and political subdivisions  |  |  | 2137439 | 147756 | 2137439 | 147756 |
| Mortgage-backed securities  | 455221 | 1649 | 6193734 | 627448 | 6648955 | 629097 |
| Totals  | $455221 | $1649 | $9841958 | $920872 | $10297179 | $922521 |

---

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[**TABLE OF CONTENTS**](#TOC2)

#### Pioneer Federal Savings & Loan Association

#### Notes to Financial Statements

#### Note 3: Investment Securities (continued)
The following table presents the number and aggregate depreciation from the Association's amortized cost basis of investment securities available for sale in a continuous unrealized loss position by security type at December 31, 2024:

---

| | | |
|:---|:---|:---|
| | **Number of <br> Securities**  | **Aggregate <br> Depreciation**  |
| U.S. government and agency securities  | 2 | 9.56% |
| Obligations of states and political subdivisions  | 10 | 6.09 |
| Mortgage-backed securities  | 18 | 8.91 |

---

These unrealized losses relate principally to the changes in interest rates and are not due to changes in the financial condition of the issuer, the quality of any underlying assets, or applicable credit enhancements. In reaching the conclusion that an allowance for credit losses is unnecessary, management observed that the securities were issued by a government body or agency, the securities continue to be highly rated (AA or better) where applicable, the issuer continues to make contractual payments, and the quality of any underlying assets or credit enhancements has not changed. Since management has the ability to hold investment securities for the foreseeable future, the Association expects to recover the amortized cost basis of these securities before they are sold or mature.

The amortized cost, allowance for credit losses, gross unrealized gains and losses, and estimated fair value of investment securities held to maturity at December 31 follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Amortized <br> Cost**  | **Gross <br> Unrealized <br> Gains**  | **Gross <br> Unrealized <br> Losses**  | **Allowance for <br> Credit Losses**  | **Estimated <br> Fair Value**  |
| **2024** |  |  |  |  |  |
| U.S. government and agency securities  | $128070 | $— | $(5008) | $— | $123062 |
|  Obligations of states and political subdivisions  | 974806 |  | (79000) |  | 895806 |
| Mortgage-backed securities  | 902331 | 6896 | (15415) |  | 893812 |
| Total investment securities held to maturity  | $2005207 | $6896 | $(99423) | $— | $1912680 |
| **2023** |  |  |  |  |  |
| U.S. government and agency securities  | $168576 | $12 | $(7938) | $— | $160650 |
|  Obligations of states and political subdivisions  | 1105798 | 236 | (11302) |  | 1094732 |
| Mortgage-backed securities  | 1561191 | 6124 | (34435) |  | 1532880 |
| Total investment securities held to maturity  | $2835565 | $6372 | $(53675) | $— | $2788262 |

---

The Association regularly evaluates various attributes of securities held to maturity to determine the appropriateness of the allowance for credit losses. The credit quality indicators monitored differ depending on the major security type.

The Association evaluates securities issued by the U.S. government and U.S. government-sponsored agencies (e.g., FNMA ("Fannie Mae"), GNMA ("Ginnie Mae"), and FHLMC ("Freddie Mac") mortgage-backed securities) by considering the creditworthiness and performance of the securities and the strength of guarantees. These securities are either explicitly or implicitly guaranteed by the U.S. government, are highly rated by major rating agencies, and have a long history of no credit losses. Based on this analysis, the Association believes it will collect all amounts owed on these securities and has not recognized an allowance for credit losses on these securities.

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#### Pioneer Federal Savings & Loan Association

#### Notes to Financial Statements

#### Note 3: Investment Securities (continued)
Obligations of states and political subdivisions held to maturity are generally evaluated using credit ratings, which are a key indicator of an investment security's probability of default. The Association uses credit ratings issued by S&P or Moody's (or both), consisting of the upper- and lower-case letters to identify an investment security's credit quality rating. "AAA" and "AA" (high credit quality) and "A" and "BBB" (medium credit quality) are considered investment grade. Credit ratings for investment securities below these designations are considered low credit quality. These ratings are updated monthly. The Association may also consider other relevant information that becomes known about the issuer's or the security's performance.

Information regarding credit ratings for investment securities held to maturity by major security type as of December 31 follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **AAA**  | **AA**  | **A**  | **BBB**  | **Not Rated**  | **Total**  |
| **2024** |  |  |  |  |  |  |
|  Obligations of states and political subdivisions  | $— | $548326 | $426480 | $— | $— | $974806 |
| **2023** |  |  |  |  |  |  |
|  Obligations of states and political subdivisions  | $— | $677073 | $428725 | $— | $— | $1105798 |

---

No accrued interest was written off during 2024 and 2023. No investment securities held to maturity were past due or on nonaccrual as of December 31, 2024 and 2023.

Fair values of investment securities are generally estimated based on financial models or prices paid for similar securities. It is possible interest rates or other key inputs to the valuation estimate could change considerably, resulting in a material change in the estimated fair value of investment securities.

The following is a summary of amortized cost (or net carrying amount) and estimated fair value of investment securities by contractual maturity as of December 31, 2024. Contractual maturities will differ from expected maturities for mortgage-backed securities because borrowers may have the right to call or prepay obligations without penalties.

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Available for Sale**  | **Available for Sale**  | **Held to Maturity**  | **Held to Maturity**  |
| | **Amortized <br> Cost**  | **Estimated <br> Fair Value**  | **Net Carrying <br> Amount**  | **Estimated <br> Fair Value**  |
| Due in one year or less  | $100421 | $99751 | $257965 | $255396 |
| Due after one year through five years  | 2526550 | 2398645 |  |  |
| Due after five years through ten years  | 320402 | 302777 | 292318 | 265864 |
| Due after ten years  | 1200366 | 1096812 | 552593 | 497608 |
| Subtotal  | 4147739 | 3897985 | 1102876 | 1018868 |
| Mortgage-backed securities  | 6167684 | 5640047 | 902331 | 893812 |
| Total  | $10315423 | $9538032 | $2005207 | $1912680 |

---

There were no sales of investment securities in 2024 and 2023.

At December 31, 2024, the amortized cost and estimated fair value of investment securities pledged to secure public deposits was $1,000,000 and $897,440, respectively. At December 31, 2023, the amortized cost and estimated fair value of investment securities pledged to secure public deposits was $500,000 and $489,010, respectively.

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#### Pioneer Federal Savings & Loan Association

#### Notes to Financial Statements

#### Note 4: Loans
The following table presents total loans at December 31, by portfolio segment and class of loan:

---

| | | |
|:---|:---|:---|
| | **2024**  | **2023**  |
| Commercial: |  |  |
| &nbsp;&nbsp;&nbsp; Other construction and land/land development  | $1908672 | $831575 |
| &nbsp;&nbsp;&nbsp; Farmland  |  | 110088 |
| &nbsp;&nbsp;&nbsp; Commercial real estate  | 4172909 | 2916186 |
| &nbsp;&nbsp;&nbsp; Agricultural production  | 15341 | 25653 |
| &nbsp;&nbsp;&nbsp; Commercial and industrial  | 1516403 | 2607880 |
| &nbsp;&nbsp;&nbsp; Municipal  | 51310 | 56181 |
| Residential real estate: |  |  |
| &nbsp;&nbsp;&nbsp; Residential construction  | 2322492 | 1532018 |
| &nbsp;&nbsp;&nbsp; Revolving, open-end  | 1762701 | 1516435 |
| &nbsp;&nbsp;&nbsp; First liens  | 74274925 | 71561388 |
| &nbsp;&nbsp;&nbsp; Junior liens  | 706888 | 367907 |
| Consumer  | 1207219 | 1033911 |
| Subtotal  | 87938860 | 82559222 |
| Allowance for credit losses  | (1208149) | (1140550) |
| Net deferred loan fees  | (403496) | (382442) |
| Loans, net  | $86327215 | $81036230 |

---

Loans serviced for others are not included in the accompanying balance sheets. The unpaid principal balance of mortgage loans serviced for others totaled $851,034 at December 31, 2024 and $690,654 at December 31, 2023. Mortgage servicing rights are not recorded since they would not have a material impact on the financial statements.

Deposit accounts in an overdraft position and reclassified as loans totaled $2,771 at December 31, 2024 and $2,824 at December 31, 2023.

Activity in the allowance for credit losses on loans by portfolio segment follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Commercial**  | **Residential <br> Real Estate**  | **Consumer**  | **Total**  |
| Balance at January 1, 2023  | $118074 | $1042742 | $19174 | $1179990 |
| Impact of adoption of ASU No. 2016-13 (ASC 326)  | (1661) | (55873) |  | (57534) |
| Provision for (recovery of) credit losses on loans  | (51094) | 82027 | (12839) | 18094 |
| Loans charged off  |  |  | (493) | (493) |
| Recoveries of loans previously charged off  |  |  | 493 | 493 |
| Balance at December 31, 2023  | 65319 | 1068896 | 6335 | 1140550 |
| Provision for (recovery of) credit losses on loans  | (1788) | 69287 | 100 | 67599 |
| Loans charged off  |  |  |  |  |
| Recoveries of loans previously charged off  |  |  |  |  |
| Balance at December 31, 2024  | $63531 | $1138183 | $6435 | $1208149 |

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[**TABLE OF CONTENTS**](#TOC2)

#### Pioneer Federal Savings & Loan Association

#### Notes to Financial Statements

#### Note 4: Loans (continued)
At December 31, 2024 and 2023, the Association maintained a reserve for unfunded loan commitments totaling $35,041 and $74,409, respectively. The provision for (recovery of) credit losses on unfunded loan commitments totaled ($39,368) during 2024 and $16,875 during 2023.

No accrued interest was written off by reversing interest income during the years ended December 31, 2024 and 2023.

There were no collateral dependent loans as of December 31, 2024 and 2023.

The Association regularly evaluates various attributes of loans to determine the appropriateness of the allowance for credit losses on loans. The credit quality indicators monitored differ depending on the class of loan.

Loans are generally evaluated using the following internally prepared ratings:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Pass: These loans are supported by reliable and current financial statements and the Association is protected by adequate collateral margins. The business may not have secondary means of payment, may be relatively new, but has adequate liquidity, equity and profitability.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Special Mention: These loans are currently protected but show potential financial, operational or other deterioration or weaknesses that need to be corrected. These credits are still strong enough and/or have ample collateral to ensure that liquidation of the loan is not threatened but could reach that point and become further classified. If weaknesses are significant, even though well secured, the loan should be considered for more serious criticism.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Substandard: These loans are no longer protected by the current sound net worth and paying capacity of the obligor. These loans exhibit defined credit weaknesses which, if not corrected, could expose the Association to loss, including all loans which have gone to foreclosure or which have become reliant upon liquidation of collateral for repayment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Doubtful: These loans have deteriorated to the point where collection or liquidation in full, on the basis of currently existing facts, conditions and values, is highly questionable and improbable. If the loss portion of the loan can be reasonably estimated and there are no pending actions which may strengthen or protect the Association from loss, a partial charge-off should be considered.

Internally prepared ratings for loans are updated at least annually.

Residential real estate and consumer loans are generally evaluated based on whether or not the loan is performing according to the contractual terms of the loan as of the balance sheet date. Loans past due 30 days or more and loans on nonaccrual are considered nonperforming.

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[**TABLE OF CONTENTS**](#TOC2)

#### Pioneer Federal Savings & Loan Association

#### Notes to Financial Statements

#### Note 4: Loans (continued)
Information regarding the loan portfolio by risk classification and origination year for the year ended December 31, 2024, follows:

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **2024**  | **2023**  | **2022**  | **2021**  | **2020**  | **Prior**  | **Revolving**  | **Revolving <br> Loans <br> Converted to <br> Term Loans**  | **Total**  |
|  **Other construction and land/land development**  |  |  |  |  |  |  |  |  |  |
| Pass  | $808696 | $962610 | $66546 | $54668 | $— | $16152 | $— | $— | $1908672 |
| Special Mention  |  |  |  |  |  |  |  |  |  |
| Substandard  |  |  |  |  |  |  |  |  |  |
| Doubtful  |  |  |  |  |  |  |  |  |  |
| Totals  | 808696 | 962610 | 66546 | 54668 |  | 16152 |  |  | 1908672 |
|  Current period gross charge offs  |  |  |  |  |  |  |  |  |  |
| **Commercial real estate** |  |  |  |  |  |  |  |  |  |
| Pass  | 1419434 |  | 536276 | 1035974 | 116212 | 1065013 |  |  | 4172909 |
| Special Mention  |  |  |  |  |  |  |  |  |  |
| Substandard  |  |  |  |  |  |  |  |  |  |
| Doubtful  |  |  |  |  |  |  |  |  |  |
| Totals  | 1419434 |  | 536276 | 1035974 | 116212 | 1065013 |  |  | 4172909 |
|  Current period gross charge offs  |  |  |  |  |  |  |  |  |  |
| **Agricultural production** |  |  |  |  |  |  |  |  |  |
| Pass  |  |  | 15341 |  |  |  |  |  | 15341 |
| Special Mention  |  |  |  |  |  |  |  |  |  |
| Substandard  |  |  |  |  |  |  |  |  |  |
| Doubtful  |  |  |  |  |  |  |  |  |  |
| Totals  |  |  | 15341 |  |  |  |  |  | 15341 |
|  Current period gross charge offs  |  |  |  |  |  |  |  |  |  |
| **Commercial and industrial**  |  |  |  |  |  |  |  |  |  |
| Pass  | 32342 | 42761 | 425451 |  |  | 85109 | 930740 |  | 1516403 |
| Special Mention  |  |  |  |  |  |  |  |  |  |
| Substandard  |  |  |  |  |  |  |  |  |  |
| Doubtful  |  |  |  |  |  |  |  |  |  |
| Totals  | 32342 | 42761 | 425451 |  |  | 85109 | 930740 |  | 1516403 |
|  Current period gross charge offs  |  |  |  |  |  |  |  |  |  |
| **Municipal** |  |  |  |  |  |  |  |  |  |
| Pass  |  |  |  |  |  | 51310 |  |  | 51310 |
| Special Mention  |  |  |  |  |  |  |  |  |  |
| Substandard  |  |  |  |  |  |  |  |  |  |
| Doubtful  |  |  |  |  |  |  |  |  |  |
| Totals  | $— | $— | $— | $— | $— | $51310 | $— | $— | $51310 |

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[**TABLE OF CONTENTS**](#TOC2)

#### Pioneer Federal Savings & Loan Association

#### Notes to Financial Statements

#### Note 4: Loans (continued)

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **2024**  | **2023**  | **2022**  | **2021**  | **2020**  | **Prior**  | **Revolving**  | **Revolving <br> Loans <br> Converted to <br> Term Loans**  | **Total**  |
|  Current period gross charge offs  |  |  |  |  |  |  |  |  |  |
| **Residential construction** |  |  |  |  |  |  |  |  |  |
| Performing  | $2322492 | $— | $— | $— | $— | $— | $— | $— | $2322492 |
| Nonperforming  |  |  |  |  |  |  |  |  |  |
| Totals  | 2322492 |  |  |  |  |  |  |  | 2322492 |
|  Current period gross charge offs  |  |  |  |  |  |  |  |  |  |
| **Revolving, open-end** |  |  |  |  |  |  |  |  |  |
| Performing  |  |  |  |  |  |  | 1732809 |  | 1732809 |
| Nonperforming  |  |  |  |  |  |  | 29892 |  | 29892 |
| Totals  |  |  |  |  |  |  | 1762701 |  | 1762701 |
|  Current period gross charge offs  |  |  |  |  |  |  |  |  |  |
| **First liens** |  |  |  |  |  |  |  |  |  |
| Performing  | 6854182 | 8594110 | 12469066 | 15297093 | 13443873 | 15953716 |  |  | 72612040 |
| Nonperforming  |  | 1152102 | 270042 | 92118 |  | 148623 |  |  | 1662885 |
| Totals  | 6854182 | 9746212 | 12739108 | 15389211 | 13443873 | 16102339 |  |  | 74274925 |
|  Current period gross charge offs  |  |  |  |  |  |  |  |  |  |
| **Junior liens** |  |  |  |  |  |  |  |  |  |
| Performing  | 434442 | 101313 | 136656 |  |  | 34477 |  |  | 706888 |
| Nonperforming  |  |  |  |  |  |  |  |  |  |
| Totals  | 434442 | 101313 | 136656 |  |  | 34477 |  |  | 706888 |
|  Current period gross charge offs  |  |  |  |  |  |  |  |  |  |
| **Consumer** |  |  |  |  |  |  |  |  |  |
| Performing  | 593075 | 340547 | 57149 | 94604 | 24570 | 73172 |  |  | 1183117 |
| Nonperforming  | 1936 | 16900 | 3407 | 1859 |  |  |  |  | 24102 |
| Totals  | $595011 | $357447 | $60556 | $96463 | $24570 | $73172 | $— | $— | $1207219 |
|  Current period gross charge offs  |  |  |  |  |  |  |  |  |  |

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[**TABLE OF CONTENTS**](#TOC2)

#### Pioneer Federal Savings & Loan Association

#### Notes to Financial Statements

#### Note 4: Loans (continued)
Information regarding the loan portfolio by risk classification and origination year for the year ended December 31, 2023, follows:

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **2023**  | **2022**  | **2021**  | **2020**  | **2019**  | **Prior**  | **Revolving**  | **Revolving <br> Loans <br> Converted to <br> Term Loans**  | **Total**  |
|  **Other construction and land/land development**  |  |  |  |  |  |  |  |  |  |
| Pass  | $382962 | $144761 | $224653 | $27702 | $19559 | $31938 | $— | $— | $831575 |
| Special Mention  |  |  |  |  |  |  |  |  |  |
| Substandard  |  |  |  |  |  |  |  |  |  |
| Doubtful  |  |  |  |  |  |  |  |  |  |
| Totals  | 382962 | 144761 | 224653 | 27702 | 19559 | 31938 |  |  | 831575 |
|  Current period gross charge offs  |  |  |  |  |  |  |  |  |  |
| **Farmland** |  |  |  |  |  |  |  |  |  |
| Pass  |  |  |  |  |  | 110088 |  |  | 110088 |
| Special Mention  |  |  |  |  |  |  |  |  |  |
| Substandard  |  |  |  |  |  |  |  |  |  |
| Doubtful  |  |  |  |  |  |  |  |  |  |
| Totals  |  |  |  |  |  | 110088 |  |  | 110088 |
|  Current period gross charge offs  |  |  |  |  |  |  |  |  |  |
| **Commercial real estate** |  |  |  |  |  |  |  |  |  |
| Pass  |  | 563973 | 1103189 | 122846 | 75636 | 1050542 |  |  | 2916186 |
| Special Mention  |  |  |  |  |  |  |  |  |  |
| Substandard  |  |  |  |  |  |  |  |  |  |
| Doubtful  |  |  |  |  |  |  |  |  |  |
| Totals  |  | 563973 | 1103189 | 122846 | 75636 | 1050542 |  |  | 2916186 |
|  Current period gross charge offs  |  |  |  |  |  |  |  |  |  |
| **Agricultural production** |  |  |  |  |  |  |  |  |  |
| Pass  |  | 25653 |  |  |  |  |  |  | 25653 |
| Special Mention  |  |  |  |  |  |  |  |  |  |
| Substandard  |  |  |  |  |  |  |  |  |  |
| Doubtful  |  |  |  |  |  |  |  |  |  |
| Totals  |  | 25653 |  |  |  |  |  |  | 25653 |
|  Current period gross charge offs  |  |  |  |  |  |  |  |  |  |
| **Commercial and industrial**  |  |  |  |  |  |  |  |  |  |
| Pass  | 57023 | 499464 |  |  |  | 309213 | 995384 |  | 1861084 |
| Special Mention  |  |  |  |  |  |  |  |  |  |
| Substandard  |  |  |  |  |  | 746796 |  |  | 746796 |
| Doubtful  |  |  |  |  |  |  |  |  |  |
| Totals  | $57023 | $499464 | $— | $— | $— | $1056009 | $995384 | $— | $2607880 |

---

------

[**TABLE OF CONTENTS**](#TOC2)

#### Pioneer Federal Savings & Loan Association

#### Notes to Financial Statements

#### Note 4: Loans (continued)

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **2023**  | **2022**  | **2021**  | **2020**  | **2019**  | **Prior**  | **Revolving**  | **Revolving <br> Loans <br> Converted to <br> Term Loans**  | **Total**  |
|  Current period gross charge offs  |  |  |  |  |  |  |  |  |  |
| **Municipal** |  |  |  |  |  |  |  |  |  |
| Pass  | $— | $— | $— | $— | $56181 | $— | $— | $— | $56181 |
| Special Mention  |  |  |  |  |  |  |  |  |  |
| Substandard  |  |  |  |  |  |  |  |  |  |
| Doubtful  |  |  |  |  |  |  |  |  |  |
| Totals  |  |  |  |  | 56181 |  |  |  | 56181 |
|  Current period gross charge offs  |  |  |  |  |  |  |  |  |  |
| **Residential construction** |  |  |  |  |  |  |  |  |  |
| Performing  | 1532018 |  |  |  |  |  |  |  | 1532018 |
| Nonperforming  |  |  |  |  |  |  |  |  |  |
| Totals  | 1532018 |  |  |  |  |  |  |  | 1532018 |
|  Current period gross charge offs  |  |  |  |  |  |  |  |  |  |
| **Revolving, open-end** |  |  |  |  |  |  |  |  |  |
| Performing  |  |  |  |  |  |  | 1516435 |  | 1516435 |
| Nonperforming  |  |  |  |  |  |  |  |  |  |
| Totals  |  |  |  |  |  |  | 1516435 |  | 1516435 |
|  Current period gross charge offs  |  |  |  |  |  |  |  |  |  |
| **First liens** |  |  |  |  |  |  |  |  |  |
| Performing  | 7423158 | 14366421 | 16418631 | 14245305 | 4880537 | 13643943 |  |  | 70977995 |
| Nonperforming  |  | 118039 | 99410 |  |  | 365944 |  |  | 583393 |
| Totals  | 7423158 | 14484460 | 16518041 | 14245305 | 4880537 | 14009887 |  |  | 71561388 |
|  Current period gross charge offs  |  |  |  |  |  |  |  |  |  |
| **Junior liens** |  |  |  |  |  |  |  |  |  |
| Performing  | 124648 | 204329 |  |  | 23810 | 15120 |  |  | 367907 |
| Nonperforming  |  |  |  |  |  |  |  |  |  |
| Totals  | 124648 | 204329 |  |  | 23810 | 15120 |  |  | 367907 |
|  Current period gross charge offs  |  |  |  |  |  |  |  |  |  |
| **Consumer** |  |  |  |  |  |  |  |  |  |
| Performing  | 566782 | 109604 | 180986 | 63562 | 17140 | 82283 |  |  | 1020357 |
| Nonperforming  |  | 8354 | 5200 |  |  |  |  |  | 13554 |
| Totals  | $566782 | $117958 | $186186 | $63562 | $17140 | $82283 | $— | $— | $1033911 |
|  Current period gross charge offs  |  | 493 |  |  |  |  |  |  | 493 |

---

------

[**TABLE OF CONTENTS**](#TOC2)

#### Pioneer Federal Savings & Loan Association

#### Notes to Financial Statements

#### Note 4: Loans (continued)
Loan aging information as of December 31 follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Current Loans**  | **Loans Past Due <br> 30 – 89 Days**  | **Loans Past Due <br> 90+ Days**  | **Total Loans**  |
| **2024** |  |  |  |  |
| Other construction and land/land development  | $1908672 | $— | $— | $1908672 |
| Commercial real estate  | 4172909 |  |  | 4172909 |
| Agricultural production  | 15341 |  |  | 15341 |
| Commercial and industrial  | 1516403 |  |  | 1516403 |
| Municipal  | 51310 |  |  | 51310 |
| Residential construction  | 2322492 |  |  | 2322492 |
| Revolving, open-end  | 1732809 | 29892 |  | 1762701 |
| First liens  | 72612038 | 811268 | 851619 | 74274925 |
| Junior liens  | 706888 |  |  | 706888 |
| Consumer  | 1183117 | 20695 | 3407 | 1207219 |
| Total  | $86221979 | $861855 | $855026 | $87938860 |
| **2023** |  |  |  |  |
| Other construction and land/land development  | $831575 | $— | $— | $831575 |
| Farmland  | 110088 |  |  | 110088 |
| Commercial real estate  | 2916186 |  |  | 2916186 |
| Agricultural production  | 25653 |  |  | 25653 |
| Commercial and industrial  | 2607880 |  |  | 2607880 |
| Municipal  | 56181 |  |  | 56181 |
| Residential construction  | 1532018 |  |  | 1532018 |
| Revolving, open-end  | 1516435 |  |  | 1516435 |
| First liens  | 70977994 | 583394 |  | 71561388 |
| Junior liens  | 367907 |  |  | 367907 |
| Consumer  | 1020357 | 13554 |  | 1033911 |
| Total  | $81962274 | $596948 | $— | $82559222 |

---

Information regarding nonaccrual loans during the year ended December 31 follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Nonaccrual <br> Loans With No <br> Allowance for <br> Credit Losses**  | **Nonaccrual <br> Loans With an <br> Allowance for <br> Credit Losses**  | **Total <br> Nonaccrual <br> Loans**  | **Total <br> Nonaccrual <br> Loans at <br> Beginning of <br> Year\***  | **Interest <br> Income <br> Recognized on <br> Nonaccrual <br> Loans**  | **Amortized <br> Cost Basis of <br> Loans 90+ <br> Days Past Due <br> Not on <br> Nonaccrual**  |
| **2024** |  |  |  |  |  |  |
| First liens  | $581576 | $— | $581576 | $— | $— | $270043 |
| Consumer  | 3407 |  | 3407 |  |  |  |
| Total  | $584983 | $— | $584983 | $— | $— | $270043 |

---

\*

There were no nonaccrual loans for the year ended December 31, 2023.

------

[**TABLE OF CONTENTS**](#TOC2)

#### Pioneer Federal Savings & Loan Association

#### Notes to Financial Statements

#### Note 4: Loans (continued)
The Association did not have any loan modifications to borrowers experiencing financial difficulty during the years ended December 31, 2024 and 2023.

Directors and executive officers of the Association, including their families and businesses in which they are principal owners, are considered related parties. Substantially all loans to these related parties were made on the same terms, including interest rates and collateral, as those prevailing at the time for comparable transactions with others and did not involve more than the normal risk of collectability or present other unfavorable features.

A summary of loans to directors, executive officers, and their affiliates as of December 31 is as follows:

---

| | | |
|:---|:---|:---|
| | **2024**  | **2023**  |
| Beginning balance  | $631831 | $966537 |
| New loans  | 35000 |  |
| Repayments  | (59779) | (334706) |
| Ending balance  | $607052 | $631831 |

---

#### Note 5: Premises and Equipment
An analysis of premises and equipment at December 31 is as follows:

---

| | | |
|:---|:---|:---|
| | **2024**  | **2023**  |
| Land  | $417943 | $417943 |
| Buildings  | 5044003 | 1698858 |
| Equipment  | 1164853 | 443182 |
| Auto  | 45676 | 45676 |
| Subtotal  | 6672475 | 2605659 |
| Accumulated depreciation  | (1554246) | (1576883) |
| Construction in progress  |  | 3686432 |
| Totals  | $5118229 | $4715208 |

---

Depreciation and amortization of premises and equipment charged to noninterest expense totaled $313,345 and $76,704 for the years ended December 31, 2024 and 2023, respectively.

#### Note 6: Other Investments
Other investments comprise the following as of December 31:

---

| | | |
|:---|:---|:---|
| | **2024**  | **2023**  |
| FHLB Stock  | $427700 | $422100 |
| Mutual funds  | 301635 | 291020 |
| Total  | $729335 | $713120 |

---

The portion of unrealized gains for the period related to mutual funds still held as of December 31, 2024 and 2023 was $2,658 and $5,028, respectively, and was recorded in other noninterest income.

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[**TABLE OF CONTENTS**](#TOC2)

#### Pioneer Federal Savings & Loan Association

#### Notes to Financial Statements

#### Note 7: Deposits
Deposits consist of the following at December 31:

---

| | | |
|:---|:---|:---|
| | **2024**  | **2023**  |
| NOW accounts  | $19192462 | $22428983 |
| Passbook  | 24595697 | 24269016 |
| Insured money market accounts  | 8623187 | 9009597 |
| Individual retirement accounts, certificates of deposit  | 7067970 | 8331061 |
| Certificates of deposit  | 25610266 | 22032756 |
| Totals  | $85089582 | $86071413 |

---

Time deposits that meet or exceed the FDIC insurance limit of $250,000 totaled $8,105,974 at December 31, 2024 and $6,181,886 at December 31, 2023.

The scheduled maturities of certificates of deposit at December 31, 2024, are summarized as follows:

---

| | |
|:---|:---|
| 2025  | $27372169 |
| 2026  | 4863418 |
| 2027  | 293705 |
| 2028  | 148944 |
| Total  | $32678236 |

---

Deposits from directors, executive officers, and their affiliates totaled $1,749,851 at December 31, 2024 and $2,116,899 at December 31, 2023.

There was no customer concentration exceeding 5% of total deposits at December 31, 2024 and 2023.

#### Note 8: FHLB Advances
FHLB advances consist of the following at December 31:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **2024**  | **2024**  | **2023**  | **2023**  |
| | **Rates**  | **Amount**  | **Rates**  | **Amount**  |
| Federal Home Loan Bank (FHLB): |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Fixed rate, fixed term advances  | 4.30% | $8000000 | 4.30% | $8000000 |

---

The following is a summary of scheduled maturities of FHLB advances as of December 31, 2024:

---

| | | |
|:---|:---|:---|
| | **Weighted <br> Average Rate**  | **Amount**  |
| 2028  | 4.30% | $8000000 |

---

Actual maturities may differ from the scheduled principal maturities due to call options on the various advances.

The Association has a master contract agreement with the Federal Home Loan Bank that provides for borrowing up to the maximum of 45% of the book value of the Association's qualifying loans. The FHLB provides both fixed and floating rate advances. Floating rates are based on, but not directly tied to, short-term market rates of interest, such as Secured Overnight Financing Rate (SOFR), federal funds, or treasury bill rates. Advances with call provisions permit the FHLB to request payment beginning on the call date and quarterly thereafter. FHLB advances are subject to a prepayment penalty if they are repaid prior to maturity. At December 31, 2024, FHLB advances are secured by $44,543,330 of loans and by $427,700 of FHLB stock.

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[**TABLE OF CONTENTS**](#TOC2)

#### Pioneer Federal Savings & Loan Association

#### Notes to Financial Statements

#### Note 8: FHLB Advances (continued)
At December 31, 2024, the Association's available and unused portion of this borrowing agreement totaled approximately $36,543,000.

The Association also has a federal funds line of credit with its main correspondent institution up to approximately $4,562,000. Federal funds purchased generally mature within one to four days from the transaction date. There was no amount outstanding related to the line as of December 31, 2024 and 2023.

#### Note 9: Income Taxes
The components of the provision for income taxes are as follows:

---

| | | |
|:---|:---|:---|
| | **2024**  | **2023**  |
| Current tax expense: |  |  |
| &nbsp;&nbsp;&nbsp; Federal  | $7434 | $177216 |
| &nbsp;&nbsp;&nbsp; State  | 50 | 23491 |
| Total current  | 7484 | 200707 |
| Deferred tax expense: |  |  |
| &nbsp;&nbsp;&nbsp; Federal  | 45010 | (67076) |
| &nbsp;&nbsp;&nbsp; State  | 21000 | (651) |
| Total deferred  | 66010 | (67727) |
| Totals  | $73494 | $132980 |

---

A summary of the sources of differences between income taxes at the federal statutory rate and the provision for income taxes for the years ended December 31, is as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **2024**  | **2024**  | **2023**  | **2023**  |
| | **Amount**  | **% of Pretax <br> Income**  | **Amount**  | **% of Pretax <br> Income**  |
| Tax expense at statutory rate  | $62419 | 21.0% | $81947 | 21.0% |
| Increase (decrease) in taxes resulting from: |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Tax-exempt interest  | (17576) | (5.9) | (21845) | (5.6) |
| &nbsp;&nbsp;&nbsp; Cash value of life insurance  | 2957 | 1 | (11506) | (2.9) |
| &nbsp;&nbsp;&nbsp; State taxes  | 16630 | 5.6 | 18044 | 4.6 |
| &nbsp;&nbsp;&nbsp; Lobby and meals and entertainment  | 1595 | 0.5 | 1884 | 0.5 |
| &nbsp;&nbsp;&nbsp; Other  | 7469 | 2.5 | 64456 | 16.5 |
| Total  | $73494 | 24.7% | $132980 | 34.1% |

---

Deferred income taxes are provided for the temporary differences between the financial reporting basis and the tax basis of the Association's assets and liabilities. The major components of the net deferred tax asset as of December 31, are presented below:

---

| | | |
|:---|:---|:---|
| | **2024**  | **2023**  |
| Deferred tax assets: |  |  |
| &nbsp;&nbsp;&nbsp; Allowance for credit losses and reserve for unfunded loan commitments  | $327363 | $319929 |
| &nbsp;&nbsp;&nbsp; Deferred compensation  | 96084 | 104561 |
| &nbsp;&nbsp;&nbsp; Other  | 34169 | 20837 |
| &nbsp;&nbsp;&nbsp; Unrealized loss on investment securities available for sale  | 323481 | 359343 |
| Total deferred tax assets  | 781097 | 804670 |

---

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[**TABLE OF CONTENTS**](#TOC2)

#### Pioneer Federal Savings & Loan Association

#### Notes to Financial Statements

#### Note 9: Income Taxes (continued)

---

| | | |
|:---|:---|:---|
| | **2024**  | **2023**  |
| Deferred tax liabilities: |  |  |
| &nbsp;&nbsp;&nbsp; Premises and equipment  | (108475) | (16028) |
| &nbsp;&nbsp;&nbsp; Deferred loan costs  | (24306) | (25040) |
| &nbsp;&nbsp;&nbsp; FHLB stock  | (16352) | (16352) |
| &nbsp;&nbsp;&nbsp; Cash basis of accounting  | (68387) | (81801) |
| Total deferred tax liabilities  | (217520) | (139221) |
| Totals  | $563577 | $665449 |

---

#### Note 10: Employee Benefit Plan
The Association sponsors a 401(k) plan covering all employees who have at least one year of service and who are age 18. The Association matches 100% of employee contributions up to 8% of their annual compensation. The Association may also make nonelective contributions to the plan at the discretion of the Board of Directors. Expense charged to operations was $145,035 during 2024 and $146,686 during 2023.

#### Note 11: Deferred Compensation
The Association adopted a non-qualified, non-funded deferred compensation plan effective March 1, 2000. Qualified participants are key management employees designated by the Association's Board of Directors annually. Deferred compensation amounts will not be available to the employee except at termination of employment, retirement, death, disability, or financial hardships. Deferred compensation amounts held by the Association will be credited with interest at the same compounding rate as the twenty-two (22) month Individual Retirement Account certificate of deposit issued by the Association. All amounts held for each participant are unsecured obligations of the Association.

The liability outstanding under the agreements was $364,886 at December 31, 2024 and $397,078 at December 31, 2023. The amount charged to operations was $6,352 during 2024 and $12,956 during 2023.

#### Note 12: Commitments, Contingencies, and Credit Risk
The Association is a party to financial instruments with off-balance-sheet risk in the normal course of business to meet the financing needs of its customers. These instruments involve, to varying degrees, elements of credit risk in excess of the amount recognized in the balance sheets.

The Association's exposure to credit loss is represented by the contractual, or notional, amount of these commitments. The Association follows the same credit policies in making commitments as it does for on-balance-sheet instruments. Since some of the commitments are expected to expire without being drawn upon and some of the commitments may not be drawn upon to the total extent of the commitment, the notional amount of these commitments does not necessarily represent future cash requirements.

The following commitments were outstanding at December 31:

---

| | | |
|:---|:---|:---|
| | **2024**  | **2023**  |
| Commitments to extend credit and unfunded commitments  | $5774170 | $8018527 |

---

Commitments to extend credit are agreements to lend to a customer at fixed or variable rates as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. The amount of collateral obtained upon extension of credit is based on management's evaluation of the customer.

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[**TABLE OF CONTENTS**](#TOC2)

#### Pioneer Federal Savings & Loan Association

#### Notes to Financial Statements

#### Note 12: Commitments, Contingencies, and Credit Risk (continued)
Unfunded commitments under commercial lines of credit, home equity lines of credit, and overdraft protection agreements are commitments for possible future extensions of credit to existing customers. These lines of credit may or may not require collateral and may or may not contain a specific maturity date.

#### Note 13: Regulatory Matters
The Association is subject to various regulatory capital requirements administered by federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory, and possibly additional discretionary, actions by regulators that, if undertaken, could have a direct material effect on the Association's financial statements.

In September 2019, the FDIC finalized a rule that introduced an optional simplified measure of capital adequacy known as the community bank leverage ratio (CBLR) framework. In order to qualify for the CBLR framework, the Association must have a Tier 1 leverage ratio of greater than 9%, less than $10 billion in total consolidated assets, and limited amounts of off-balance-sheet exposures and trading assets and liabilities. Under the final rule, an eligible community banking organization can opt out of the CBLR framework and revert back to a risk-weighting framework without restriction.

As of December 31, 2024 and 2023, the Association qualified for and elected to use the CBLR framework. An institution opting into the CBLR framework and meeting all requirements under the framework will be considered to have met the well-capitalized ratio requirements under the Prompt Corrective Action regulations and will not be required to report or calculate risk-based capital.

As of December 31, 2024, the most recent notification from the regulatory agencies categorized the Association as well capitalized under the regulatory framework for prompt corrective action. To be categorized as well capitalized, the Association must maintain minimum regulatory capital ratios as set forth in the table. There are no conditions or events since that notification that management believes have changed the Association's category.

The Association's actual capital amounts and ratios as of December 31, 2024 and 2023, are presented in the following table:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Actual**  | **Actual**  | **To Be Well Capitalized <br> Under Prompt Corrective <br> Action Provisions**  | **To Be Well Capitalized <br> Under Prompt Corrective <br> Action Provisions**  |
| **(Dollars in Thousands)**  | **Amount**  | **Ratio**  | **Amount**  | **Ratio**  |
| **2024** |  |  |  |  |
| Community Bank Leverage Ratio  | $18857 | 16.81% | $10096 | ≥9.00% |
| **2023** |  |  |  |  |
| Community Bank Leverage Ratio  | $18518 | 16.45% | $10130 | ≥9.00% |

---

#### Note 14: Fair Value Measurements
Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an order transaction between market participants on the measurement date. There are three levels of inputs that may be used to measure fair values:

*Level 1:* Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date.

*Level 2:* Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data.

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[**TABLE OF CONTENTS**](#TOC2)

#### Pioneer Federal Savings & Loan Association

#### Notes to Financial Statements

#### Note 14: Fair Value Measurements (continued)
*Level 3:* Significant observable inputs that reflect a company's own assumptions about the assumptions that market participants would use in pricing an asset or liability.

Some assets and liabilities, such as investment securities available for sale, are measured at fair value on a recurring basis under accounting principles generally accepted in the United States. Other assets and liabilities, such as collateral dependent loans, may be measured at fair value on a nonrecurring basis.

Following is a description of the valuation methodology and significant inputs used for each asset and liability measured at fair value on a recurring or nonrecurring basis, as well as the classification of the asset or liability within the fair value hierarchy.

*Investment securities available for sale* — Investment securities available for sale may be classified as Level 1, Level 2, or Level 3 measurements within the fair value hierarchy. Level 1 securities include investment securities traded on a national exchange. The fair value measurement of a Level 1 security is based on the quoted price of the security. Level 2 securities include U.S. government and agency securities, obligations of states and political subdivisions, and mortgage-backed securities. The fair value measurement of a Level 2 security is obtained from monthly brokerage account statements and is based on recent sales of similar securities and other observable market data.

*Loans* — Loans are not measured at fair value on a recurring basis. However, individually evaluated loans (see Note 1) may be measured at fair value on a nonrecurring basis. The fair value measurement of a loan that is collateral dependent is based on the fair value of the underlying collateral. Independent appraisals are obtained that utilize one or more valuation methodologies — typically they will incorporate a comparable sales approach and an income approach. Management routinely evaluates the fair value measurements of independent appraisers and adjusts those valuations based on differences noted between actual selling prices of collateral and the most recent appraised value. Such adjustments are usually significant, which results in a Level 3 classification. All other individually evaluated loan measurements are based on other loss estimation methodologies and, thus, are not fair value measurements.

*Mutual funds* — Mutual funds are considered equity securities with a readily determinable fair value and are measured at fair value on a recurring basis. The fair value measurement of equity securities with a readily determinable fair value are based on the quoted price of the security and is considered a Level 1 fair value measurement.

Information regarding the fair value of assets and liabilities measured at fair value on a recurring basis as of December 31 follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Recurring Fair Value Measurements Using**  | **Recurring Fair Value Measurements Using**  | **Recurring Fair Value Measurements Using**  | |
| | **Quoted Prices <br> in Active <br> Markets for <br> Identical <br> Instruments <br> (Level 1)**  | **Significant <br> Other <br> Observable <br> Inputs <br> (Level 2)**  | **Significant <br> Unobservable <br> Inputs <br> (Level 3)**  | **Total**  |
| **2024** |  |  |  |  |
| Assets: |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Investment securities available for sale  | $— | $9538032 | $— | $9538032 |
| &nbsp;&nbsp;&nbsp; Other investments – mutual funds  | 301635 |  |  | 301635 |
| Totals  | $301635 | $9538032 | $— | $9839667 |

---

------

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#### Pioneer Federal Savings & Loan Association

#### Notes to Financial Statements

#### Note 14: Fair Value Measurements (continued)

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Recurring Fair Value Measurements Using**  | **Recurring Fair Value Measurements Using**  | **Recurring Fair Value Measurements Using**  | |
| | **Quoted Prices <br> in Active <br> Markets for <br> Identical <br> Instruments <br> (Level 1)**  | **Significant <br> Other <br> Observable <br> Inputs <br> (Level 2)**  | **Significant <br> Unobservable <br> Inputs <br> (Level 3)**  | **Total**  |
| **2023** |  |  |  |  |
| Assets: |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Investment securities available for sale  | $— | $11303990 | $— | $11303990 |
| &nbsp;&nbsp;&nbsp; Other investments – mutual funds  | 291020 |  |  | 291020 |
| Totals  | $291020 | $11303990 | $&nbsp;&nbsp;&nbsp;&nbsp;— | $11595010 |

---

There were no assets and liabilities measured at fair value on a nonrecurring basis as of December 31, 2024 and 2023.

The Association estimates fair value of all financial instruments regardless of whether such instruments are measured at fair value. The following methods and assumptions were used by the Association to estimate fair value of financial instruments not previously discussed.

*Cash and cash equivalents* — The carrying value approximates fair value.

*Investment securities held to maturity* — Fair value of investment securities held to maturity is based on dealer quotations on similar securities near period-end.

*FHLB stock* — The carrying value approximates fair value.

*Accrued interest receivable* — The carrying value approximates fair value.

*Cash value of life insurance* — The carrying value approximates fair value.

*Deposits* — Fair value of deposits with no stated maturity, such as NOW, passbook, and insured money market accounts, by definition, is the amount payable on demand on the reporting date. Fair value of certificates of deposit is estimated using discounted cash flows applying interest rates currently offered on issue of similar time deposits.

*Advance payments by borrowers for taxes and insurance* — The carrying value approximates fair value.

*Federal Home Loan Bank advances* — Federal Home Loan Bank advances are carried at cost, and the fair value is obtained from a third party using actual Association data and current market rates.

*Accrued interest payable* — The carrying value approximates fair value.

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#### Pioneer Federal Savings & Loan Association

#### Notes to Financial Statements

#### Note 14: Fair Value Measurements (continued)
The carrying value and estimated fair value of financial instruments at December 31 follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Carrying <br> Value**  | **Estimated <br> Fair Value**  | **Fair Value Hierarchy**  | **Fair Value Hierarchy**  | **Fair Value Hierarchy**  |
| | **Carrying <br> Value**  | **Estimated <br> Fair Value**  | **Level 1**  | **Level 2**  | **Level 3**  |
| **2024** |  |  |  |  |  |
| Financial assets: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Cash and cash equivalents  | $6433487 | $6433487 | $6433487 | $— | $— |
| &nbsp;&nbsp;&nbsp; Investment securities available <br> for sale  | 9538032 | 9538032 |  | 9538032 |  |
| &nbsp;&nbsp;&nbsp; Investment securities held to maturity  | 2005207 | 1912680 |  | 1912680 |  |
| &nbsp;&nbsp;&nbsp; Loans, net  | 86327215 | 75607000 |  |  | 75607000 |
| &nbsp;&nbsp;&nbsp; FHLB stock  | 427700 | 427700 |  | 427700 |  |
| &nbsp;&nbsp;&nbsp; Mutual funds  | 301635 | 301635 | 301635 |  |  |
| &nbsp;&nbsp;&nbsp; Accrued interest receivable  | 361572 | 361572 | 361572 |  |  |
| &nbsp;&nbsp;&nbsp; Cash value of life insurance  | 744112 | 744112 |  | 744112 |  |
| Total  | $106138960 | $95326218 | $7096694 | $12622524 | $75607000 |
| Financial liabilities: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Deposits  | $85089582 | $84992581 | $52411346 | $— | $32581235 |
| &nbsp;&nbsp;&nbsp; Advance payments by borrowers for taxes and insurance  | 54200 | 54200 |  | 54200 |  |
| &nbsp;&nbsp;&nbsp; Federal Home Loan Bank advances  | 8000000 | 8009000 |  | 8009000 |  |
| &nbsp;&nbsp;&nbsp; Accrued interest payable  | 105112 | 105112 | 105112 |  |  |
| Total  | $93248894 | $93160893 | $52516458 | $8063200 | $32581235 |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Carrying <br> Value**  | **Estimated <br> Fair Value**  | **Fair Value Hierarchy**  | **Fair Value Hierarchy**  | **Fair Value Hierarchy**  |
| | **Carrying <br> Value**  | **Estimated <br> Fair Value**  | **Level 1**  | **Level 2**  | **Level 3**  |
| **2023** |  |  |  |  |  |
| Financial assets: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Cash and cash equivalents  | $10192920 | $10192920 | $10192920 | $— | $— |
| &nbsp;&nbsp;&nbsp; Investment securities available <br> for sale  | 11303990 | 11303990 |  | 11303990 |  |
| &nbsp;&nbsp;&nbsp; Investment securities held to maturity  | 2835565 | 2788262 |  | 2788262 |  |
| &nbsp;&nbsp;&nbsp; Loans, net  | 81036230 | 70393773 |  |  | 70393773 |
| &nbsp;&nbsp;&nbsp; FHLB stock  | 422100 | 422100 |  | 422100 |  |
| &nbsp;&nbsp;&nbsp; Mutual funds  | 291020 | 291020 | 291020 |  |  |
| &nbsp;&nbsp;&nbsp; Accrued interest receivable  | 323417 | 323417 | 323417 |  |  |
| &nbsp;&nbsp;&nbsp; Cash value of life insurance  | 763732 | 763732 |  | 763732 |  |
| Total  | $107168974 | $96479214 | $10807357 | $15278084 | $70393773 |

---

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#### Pioneer Federal Savings & Loan Association

#### Notes to Financial Statements

#### Note 14: Fair Value Measurements (continued)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Carrying <br> Value**  | **Estimated <br> Fair Value**  | **Fair Value Hierarchy**  | **Fair Value Hierarchy**  | **Fair Value Hierarchy**  |
| | **Carrying <br> Value**  | **Estimated <br> Fair Value**  | **Level 1**  | **Level 2**  | **Level 3**  |
| Financial liabilities: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Deposits  | $86071413 | $85807415 | $55707596 | $— | $30099819 |
| &nbsp;&nbsp;&nbsp; Advance payments by borrowers for taxes and insurance  | 36929 | 36929 |  | 36929 |  |
| &nbsp;&nbsp;&nbsp; Federal Home Loan Bank advances  | 8000000 | 8108000 |  | 8108000 |  |
| &nbsp;&nbsp;&nbsp; Accrued interest payable  | 33065 | 33065 | 33065 |  |  |
| Total  | $94141407 | $93985409 | $55740661 | $8144929 | $30099819 |

---

*Limitations* — The fair value of a financial instrument is the current amount that would be exchanged between market participants, other than in a forced liquidation. Fair value is best determined based upon quoted market prices. However, in many instances, there are no quoted market prices for the Association's various financial instruments. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. Accordingly, the fair value estimates may not be realized in an immediate settlement of the instrument. Consequently, the aggregate fair value amounts presented may not necessarily represent the underlying fair value of the Association.

Fair value estimates are made at a specific point in time based on relevant market information and information about the financial instrument. These estimates do not reflect any premium or discount that could result from offering for sale at one time the Association's entire holdings of a particular instrument. Because no market exists for a significant portion of the Association's financial instruments, fair value estimates are based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments, and other factors. These estimates are subjective in nature and involve uncertainties and matters that could affect the estimates. Fair value estimates are based on existing on- and off-balance-sheet financial instruments without attempting to estimate the value of anticipated future business. Deposits with no stated maturities are defined as having a fair value equivalent to the amount payable on demand. This prohibits adjusting fair value derived from retaining those deposits for an expected future period of time. This component, commonly referred to as a deposit base intangible, is neither considered in the above amounts nor is it recorded as an intangible asset on the balance sheet. In addition, the tax ramifications related to the realization of the unrealized gains and losses can have a significant effect on fair value estimates and have not been considered in the estimates.

#### Note 15: Subsequent Events
The Board of Directors of the Association anticipates approving a plan of conversion to a stock bank (Plan) in the third quarter of 2025. The Plan is subject to the approval of the Federal Deposit Insurance Corporation and the Montana Department of Banking, and it must be approved by the affirmative vote of a simple majority of the total votes eligible to be cast by the voting members of the Association at a special meeting. The Plan, if approved by at least two-thirds of the Board of Directors, will set forth that the Association proposes to convert into a stock bank with the establishment of a bank holding company, as parent of the newly formed stock bank. As part of any plan of conversion, the Association will be required to determine the total offering value and number of shares of common stock based upon an independent appraiser's valuation. It is anticipated that the Association's Board of Directors will adopt an employee stock ownership plan (ESOP), which will subscribe for up to approximately 8 – 10% of the common stock sold in the offering.

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#### Pioneer Federal Savings & Loan Association

#### Notes to Financial Statements

#### Note 15: Subsequent Events (continued)
All costs associated with issuing the common stock will be deducted from the sales proceeds of the offering. If the offering is unsuccessful, all costs will be charged to operations. The Association had incurred deferred conversion costs totaling approximately $424,000 as of September 22, 2025.

At the completion of the conversion to stock form, the Association will maintain a liquidation account in the amount of the net worth of the Association prior to conversion. The liquidation accounting will be maintained for the benefit of eligible savings account holders who maintain deposit accounts in the Association after conversion.

The conversion, if approved, will be accounted for as a change in corporate form with the historic basis of the Association's assets, liabilities and equity unchanged as a result. Any newly formed company would be an emerging growth company, and, for as long as it continues to be an emerging growth company, it may choose to take advantage of exemptions from various reporting requirements applicable to other public companies but not to "emerging growth companies."

Management has evaluated subsequent events for recognition and disclosure in the financial statements through September 22, 2025, which is the date the financial statements were available to be issued.

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No person has been authorized to give any information or to make any representation other than as contained in this prospectus and, if given or made, such other information or representation must not be relied upon as having been authorized by PSB Financial, Inc., Pioneer Federal Savings and Loan Association or Pioneer State Bank. This prospectus does not constitute an offer to sell or a solicitation of an offer to buy any of the securities offered hereby to any person in any jurisdiction in which such offer or solicitation is not authorized or in which the person making such offer or solicitation is not qualified to do so, or to any person to whom it is unlawful to make such offer or solicitation in such jurisdiction. Neither the delivery of this prospectus nor any sale hereunder shall under any circumstances create any implication that there has been no change in the affairs of PSB Financial, Inc., Pioneer Federal Savings and Loan Association or Pioneer State Bank since any date as of which information is furnished herein or since the date of this prospectus.

Up to 1,380,000 Shares

(Subject to Increase to up to 1,587,000 Shares)

![[MISSING IMAGE: lg_psbfinancialinc-4c.jpg]](lg_psbfinancialinc-4c.jpg)

(Proposed Holding Company for Pioneer State Bank, Successor to Pioneer Federal Savings and Loan Association)

COMMON STOCK

par value $0.01 per share

PROSPECTUS

![[MISSING IMAGE: lg_keefebruyettewoods-bw.jpg]](lg_keefebruyettewoods-bw.jpg)

[ ], 2025

These securities are not deposits or savings accounts and are not federally insured or guaranteed.

Until [ ], all dealers that effect transactions in these securities, whether or not participating in this offering, may be required to deliver a prospectus. This is in addition to the obligation of dealers to deliver a prospectus when acting as underwriters and with respect to their unsold allotments or subscriptions.

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#### PART II

#### INFORMATION NOT REQUIRED IN PROSPECTUS

#### Item 13. Other Expenses of Issuance and Distribution
The following table sets forth all expenses, other than the underwriting discounts and commissions, payable by the Registrant in connection with the sale of the shares of common stock being registered. All the amounts shown are estimates except for the SEC registration fee and the OTCQB application fee.

---

| | |
|:---|:---|
| Registrant's legal fees and expenses  | $750000 |
| Registrant's accounting fees and expenses  | 380000 |
| Marketing agent's fees  | 300000 |
| Marketing agent's legal fees  | 125000 |
| Marketing agent's expense reimbursement  | 30000 |
| Records management fees and expenses  | 35000 |
| Printing, postage, mailing and EDGAR expenses  | 200000 |
| Transfer agent's fees and expenses  | 20000 |
| Filing fees  | 30000 |
| Appraisal fees and expenses  | 55000 |
| Business plan fees and expenses  | 50000 |
| Miscellaneous  | 25000 |
| &nbsp;&nbsp;&nbsp; **Total Expenses**<sup>(1)</sup>  | $2000000 |

---

(1) Assumes 100% of the shares of common stock are sold in the subscription and community offering at the adjusted maximum of the offering range.

#### Item 14. Indemnification of Directors and Officers.
Section 2-418 of the Maryland General Corporation Law (the "MGCL") permits a Maryland corporation to indemnify its present and former directors, among others, against judgments, penalties, fines, settlements and reasonable expenses actually incurred by them in connection with any proceeding to which they may be made a party by reason of their services in those capacities, unless it is established that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (1)

the act or omission of the director was material to the matter giving rise to such proceeding; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; a.

was committed in bad faith; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; b.

was the result of active and deliberate dishonesty; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (2)

the director actually received an improper personal benefit in money, property, or services; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (3)

in the case of any criminal proceeding, the director had reasonable cause to believe that the act or omission was unlawful.

The MGCL permits a Maryland corporation to indemnify a present and former officer to the same extent as a director. In addition to the foregoing, a court of appropriate jurisdiction: (1) shall order indemnification of reasonable expenses incurred by a director who has been successful, on the merits or otherwise, in the defense of any proceeding identified above, or in the defense of any claim, issue or matter in the proceeding; and (2) may under certain circumstances order indemnification of a director or an officer who the court determines is fairly and reasonably entitled to indemnification in view of all of the relevant circumstances, whether or not the director or officer has met the standards of conduct set forth in the preceding paragraph or has been declared liable on the basis that a personal benefit improperly received in a proceeding charging improper personal benefit to the director or the officer, whether or not involving actions in such individual's official capacity; provided, however, that if the proceeding was an action by or in the right of the

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corporation or involved a determination that the director or officer received an improper personal benefit, no indemnification may be made if the director or officer is adjudged liable to the corporation, except to the extent of expenses approved by a court of appropriate jurisdiction.

The MGCL also permits a Maryland corporation to pay or reimburse, in advance of the final disposition of a proceeding, reasonable expenses incurred by a present or former director or officer made a party to the proceeding by reason of his or her service in that capacity, provided that the corporation shall have received:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (1)

a written affirmation by the director or officer of their good faith belief that they have met the standard of conduct necessary for indemnification by the corporation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (2)

a written undertaking by or on behalf of the director or officer to repay the amount paid or reimbursed by the corporation if it shall ultimately be determined that the standard of conduct was not met.

The indemnification and advancement of expenses provided or authorized may not be deemed exclusive of any other rights, by indemnification or otherwise, to which a director or officer may be entitled under the charter, the bylaws, a resolution of stockholders or directors, an agreement or otherwise, both as to action in an official capacity and as to action in another capacity while holding such office.

As permitted under the MGCL, the Registrant has adopted indemnification provisions in its charter that closely track the statutory indemnification provisions of the MGCL. The applicable indemnification provision is included in Article X of the Registrant's charter and reads as follows:

PSB Financial shall indemnify (1) its current and former directors and officers, whether serving PSB Financial or at its request any other entity, to the fullest extent required or permitted by the MGCL now or hereafter in force, including the advancement of expenses under the procedures and to the fullest extent permitted by law, and (2) other employees and agents to such extent as shall be authorized by the Board of Directors and permitted by law; provided, however, that, except as provided in the Bylaws with respect to proceedings to enforce rights to indemnification, PSB Financial shall indemnify any such indemnitee in connection with a proceeding (or part thereof) initiated by such indemnitee only if such proceeding (or part thereof) was authorized by the Board of Directors of PSB Financial. The rights to indemnification and to the advancement of expenses conferred in this Article X shall not be exclusive of any other right that any Person may have or hereafter acquire under any statute, these Articles, PSB Financial's Bylaws, any agreement, any vote of stockholders or the Board of Directors, or otherwise.

The Registrant cannot indemnify its directors or officers unless a determination has been made that indemnification is permissible because the director or officer has met the standard of conduct previously identified above. In accordance with Section 2-418(e)(2) of the MGCL, such determination shall be made (1) by the board of directors by a majority vote of a quorum consisting of directors not, at the time, parties to the proceeding, or by a majority vote of a committee of the board consisting solely of one or more directors not, at the time, parties to such proceeding and who were duly designated to act in the matter by a majority vote of the directors who are not parties to the proceeding; (2) by special legal counsel selected by the board of directors or a committee of the board by vote as set forth in hereto in Item (1), or, if the requisite quorum of the full board cannot be obtained therefor and the committee cannot be established, by a majority vote of the full board in which directors who are parties may participate; or (3) by the stockholders.

As permitted under Section 2-418(k) of the MGCL, the Registrant has purchased directors' and officers' liability insurance that insures the Registrant's directors and officers, among other things, against certain liabilities that may arise under the Securities Act.

In accordance with Section 2-418(l) of the MGCL, the Registrant will report in writing to the stockholders any indemnification of, or advance of expenses to, a director if such indemnification or advance arises out of a proceeding by or in the right of the corporation.

Section 8(k) of the Federal Deposit Insurance Act provides that the FDIC may prohibit or limit, by regulation or order, payments by any insured depository institution or its holding company for the benefit

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of directors and officers of the insured depository institution, or others who are or were "institution-affiliated parties," as defined under the Federal Deposit Insurance Act, to pay or reimburse such person for any liability or legal expense sustained with regard to any administrative or civil enforcement action which results in a final order against the person. The FDIC has adopted regulations prohibiting, subject to certain exceptions, insured depository institutions, their subsidiaries and affiliated holding companies from indemnifying officers, directors or employees for any civil money penalty or judgment resulting from an administrative or civil enforcement action commenced by any federal banking agency, or for that portion of the costs sustained with regard to such an action that results in a final order or settlement that is adverse to the director, officer or employee.

#### Item 15. Recent Sales of Unregistered Securities.
Not applicable.

#### Item 16. Exhibits and Financial Statement Schedules.
(a) List of Exhibits.

---

| | |
|:---|:---|
| &nbsp;&nbsp; 1.1 | [Engagement Letter between Pioneer Federal Savings and Loan Association and Keefe, Bruyette & Woods (Financial Advisor Services).](tm2525788d3_ex1-1.htm)  |
| &nbsp;&nbsp; 1.2 | [Engagement Letter between Pioneer Federal Savings and Loan Association and Keefe, Bruyette & Woods (Conversion Agent and Data Processing Records Management Agent).](tm2525788d3_ex1-2.htm)  |
| &nbsp;&nbsp; 1.3 | Form of Agency Agreement by and among PSB Financial, Inc., Pioneer State Bank and Keefe, Bruyette & Woods.\* |
| &nbsp;&nbsp; 2 | [Plan of Conversion](tm2525788d3_ex2.htm)  |
| &nbsp;&nbsp; 3.1 | [Articles of Incorporation of PSB Financial, Inc.](tm2525788d3_ex3-1.htm)  |
| &nbsp;&nbsp; 3.2 | [Bylaws of PSB Financial, Inc.](tm2525788d3_ex3-2.htm)  |
| &nbsp;&nbsp; 4 | [Form of Common Stock Certificate of PSB Financial, Inc.](tm2525788d3_ex4.htm)  |
| &nbsp;&nbsp; 5.1 | [Opinion of Godfrey & Kahn, S.C. regarding legality of securities being registered](tm2525788d3_ex5-1.htm)  |
| &nbsp;&nbsp; 8.1 | [Federal Income Tax Opinion of Godfrey & Kahn, S.C.](tm2525788d3_ex8-1.htm)  |
| &nbsp;&nbsp; 8.2 | [State Income Tax Opinion of Wipfli LLP](tm2525788d3_ex8-2.htm)  |
| 10.1 | [Employment Agreement between Pioneer Federal Savings and Loan Association and Phillip K. Willett+](tm2525788d3_ex10-1.htm) |
| 10.2 | [Form of Supplemental Executive Retirement Plan Agreement between Pioneer State Bank and Phillip K. Willett+](tm2525788d3_ex10-2.htm) |
| 10.3 | [Form of Change of Control Agreement between Pioneer State Bank and Phillip K. Willett+](tm2525788d3_ex10-3.htm)  |
| 10.4 | [Form of Restrictive Covenant Agreement between Pioneer State Bank and Phillip K. Willett+](tm2525788d3_ex10-4.htm)  |
| 16 | [Letter of Wipfli LLP regarding change in accountants](tm2525788d3_ex16.htm)  |
| 21 | [Subsidiaries of PSB Financial, Inc.](tm2525788d3_ex21.htm)  |
| 23.1 | Consent of Godfrey & Kahn, S.C. (included in [Exhibit 5.1](tm2525788d3_ex5-1.htm) and [8.1](tm2525788d3_ex8-1.htm)) |
| 23.2 | [Consent of Wipfli LLP (included in Exhibit 8.2)](tm2525788d3_ex8-2.htm)  |
| 23.3 | [Consent of Feldman Financial Advisors, Inc.](tm2525788d3_ex23-3.htm)  |
| 23.4 | [Consent of Elliott Davis, LLC](tm2525788d3_ex23-4.htm)  |
| 24 | [Power of Attorney (set forth on the signature page to this Registration Statement)](#tPOA)  |
| 99.1 | [Engagement letter between Pioneer Federal Savings and Loan Association and Feldman Financial Advisors, Inc. with respect to independent appraisal services.](tm2525788d3_ex99-1.htm)  |
| 99.2 | [Letter of Feldman Financial Advisors, Inc. with respect to value of subscription rights.](tm2525788d3_ex99-2.htm)  |
| 99.3 | [Appraisal Report of Feldman Financial Advisors, Inc.](tm2525788d3_ex99-3.htm)  |
| 99.4 | Marketing Materials\* |
| 99.5 | Stock Order and Certification Form\* |

---

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107 [Filing Fee Table](tm2525788d3_ex-filingfees.htm)

+

Management contract

\*

To be filed by amendment.

(b) Financial Statement Schedules

Financial statement schedules are not filed because the required information is inapplicable or is included in the consolidated financial statements and related notes.

#### Item 9. Undertakings \*
Insofar as indemnification for liabilities arising under the Securities Act of 1933 may be permitted to directors, officers and controlling persons of the Registrant pursuant to the foregoing provisions, or otherwise, the Registrant has been advised that in the opinion of the Securities and Exchange Commission such indemnification is against public policy as expressed in the Act, and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by the Registrant of expenses incurred or paid by a director, officer or controlling person of the Registrant in the successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities being registered, the Registrant will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Act and will be governed by the final adjudication of such issue.

The undersigned Registrant hereby undertakes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (1)

That, for purposes of determining any liability under the Securities Act of 1933, the information omitted from the form of prospectus filed as part of this registration statement in reliance upon Rule 430A and contained in a form of prospectus filed by the Registrant pursuant to Rule 424(b)(1) or (4) or 497(h) under the Securities Act shall be deemed to be part of this registration statement as of the time it was declared effective.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (2)

For the purpose of determining any liability under the Securities Act of 1933, each post-effective amendment that contains a form of prospectus shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof.

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#### SIGNATURES
 **Pursuant to the requirements of the Securities Act of 1933, the Registrant has duly caused this Registration Statement to be signed on its behalf by the undersigned, thereunto duly authorized in the City of Deer Lodge, State of Montana, on September 22, 2025.** 

---

| |
|:---|
| **PSB FINANCIAL, INC.** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; By: <br>/s/ Phillip K. Willett <br>Phillip K. Willett, <br> President and Chief Executive Officer  |

---

 **Pursuant to the requirements of the Securities Act of 1933, this Registration Statement has been signed by the following persons in the capacities and on the dates indicated:** 

---

| | | |
|:---|:---|:---|
| **Signature**  | **Title**  | **Date**  |
| /s/ Phillip K. Willett <br>Phillp K. Willett  | President and Chief Executive Officer, Director <br> (Principal Executive Officer and Principal Financial Officer) | September 22, 2025  |

---

#### POWER OF ATTORNEY
We, the undersigned directors and officers of PSB Financial, Inc. (the "PSB Financial") hereby severally constitute and appoint Phillip K. Willett, as our true and lawful attorney and agent, to do any and all things in our names in the capacities indicated below which said individual may deem necessary or advisable to enable PSB Financial to comply with the Securities Act of 1933, as amended, and any rules, regulations and requirements of the Securities and Exchange Commission, in connection with the registration statement on Form S-1 relating to the offering of PSB Financial's common stock, including specifically, but not limited to, power and authority to sign for us in our names in the capacities indicated below the registration statement and any and all amendments (including post-effective amendments) thereto; and we hereby approve, ratify and confirm all that said individual shall do or cause to be done by virtue thereof.

Pursuant to the requirements of the Securities Act of 1933, this registration statement has been signed by the following persons in the capacities and on the dates indicated.

---

| | | |
|:---|:---|:---|
| **Signature**  | **Title**  | **Date**  |
| /s/ Jack M. Andersen <br>Jack M. Andersen  | Director | September 22, 2025  |
| /s/ Roberta Jean Bergeson <br>Roberta Jean Bergeson  | Director | September 22, 2025  |
| /s/ Spencer Hegstad <br>Spencer Hegstad  | Director | September 22, 2025  |
| /s/ Debra H. Huber <br>Debra H. Huber  | Director | September 22, 2025  |
| /s/ Michael E. Johns <br>Michael E. Johns  | Director | September 22, 2025  |
| /s/ William Mosier Jr. <br>William Mosier Jr.  | Director | September 22, 2025  |

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---

| | | |
|:---|:---|:---|
| **Signature**  | **Title**  | **Date**  |
| /s/ Tony L. Pfaff <br>Tony L. Pfaff  | Director | September 22, 2025  |
| /s/ Mark J. Simkins <br>Mark J. Simkins  | Director | September 22, 2025  |
| /s/ Ronald J. Snow <br>Ronald J. Snow  | Director | September 22, 2025  |

---

------

## Exhibit 1.1

**Exhibit 1.1**

![](tm2525788d3_ex1-1img001.jpg)

February 5, 2025

Pioneer Federal Savings and Loan Association

202 N. Main Street

Deer Lodge, MT 59722

Attention: Mr. Phillip K. Willett

President and Chief executive Officer

Ladies and Gentlemen:

This letter confirms the engagement of Keefe, Bruyette & Woods, Inc. ("KBW") to act as the exclusive financial advisor to Pioneer Federal Savings and Loan Association's (the "Association") proposed conversion from the mutual to stock form of organization pursuant to the Association's proposed Plan of Conversion (the "Conversion"), including the offer and sale of certain shares of the common stock (the "Common Stock") to eligible persons in a Subscription Offering as defined in the Data Agency Agreement, dated as of even date, by and between the parties hereto, with any remaining shares offered to the general public in a Community Offering (as defined herein) (a Subscription Offering, a Community Offering and any Syndicated Community Offering (as defined herein) are collectively referred to herein as the "Offerings"). In addition, KBW will act as Conversion Agent and Data Processing Records Management Agent in connection with the Offerings pursuant to the terms of a separate agreement between the Association and KBW. This letter sets forth the terms and conditions of our engagement with respect to the Conversion.

1. <u>Advisory/Offering Services</u> 

As the Association's exclusive financial advisor<u>,</u> KBW will provide financial and logistical advice to the Association and will assist the Association's management, legal counsel, accountants, and other advisors in connection with the Conversion and the Offerings, and related issues. We anticipate our services will include the following, each as may be necessary and as the Association may reasonably request:

&nbsp;&nbsp;&nbsp;&nbsp;1. Providing advice on the financial and securities market implications of the Conversion and any related corporate documents, including
the Plan of Conversion;

&nbsp;&nbsp;&nbsp;&nbsp;2. Assisting in structuring the Offerings, including developing and assisting in implementing a marketing strategy for the Offerings;

&nbsp;&nbsp;&nbsp;&nbsp;3. Serving as sole bookrunning manager in connection with the Offerings;

&nbsp;&nbsp;&nbsp;&nbsp;4. Reviewing all offering documents related to the Offerings, including the prospectus (the "Prospectus") and any related
offering materials, stock order forms, letters, brochures, and other related offering materials (it being understood that preparation
and filing of such documents will be the responsibility of the Association and its counsel);

&nbsp;&nbsp;&nbsp;&nbsp;5. Assisting the Association in preparing for and scheduling meetings with potential investors and broker-dealers, as necessary;

Keefe, Bruyette & Woods · 70 West Madison, Suite 2401 · Chicago, IL 60602

312.423.8200 · 800.929.6113 · Fax 312.423.8232 · www.kbw.com

Pioneer Federal Savings and Loan Association

February 5, 2025

Page 2 of 9

&nbsp;&nbsp;&nbsp;&nbsp;6. Assisting the Association in analyzing proposals from outside vendors retained in connection with the Offerings, including printers,
transfer agents and appraisal firms;

7. Assisting the Association in the drafting and distribution of press releases as required or appropriate in connection with the Offerings;

8. Meeting with the board of directors of the Association (the "Board of Directors") and/or management of the Association
to discuss any of the above services; and

9. Performing such other financial advisory and investment banking services in connection with the Conversion and the Offerings as may
be agreed upon in writing by KBW and the Association.

2. <u>Due Diligence Review</u> 

The Association acknowledges and agrees that KBW's obligation to perform the services contemplated by this Agreement shall be subject to the satisfactory completion of such investigations and inquiries relating to the Association, and its directors, officers, agents and employees, as KBW and their counsel in their sole discretion my deem appropriate under the circumstances (the "Due Diligence Review").

The Association agrees it will make available to KBW all information, whether or not publicly available, which KBW reasonably requests (the "Information") and will permit KBW to discuss with the Board of Directors and management the operations and prospects of the Association. KBW will treat all Confidential Information (as defined herein) as confidential in accordance with the provisions of Section 9 hereof. The Association recognizes and confirms that KBW (a) will use and rely on and assume the accuracy and completeness of the Information in performing the services contemplated by this Agreement without having independently verified or analyzed the accuracy or completeness of same, and (b) does not assume responsibility or liability for the accuracy or completeness of the Information or to conduct any independent verification or any appraisal or physical inspection of properties or assets. The Association acknowledges and agrees that KBW will rely upon Association management as to the reasonableness and achievability of any financial and operating forecasts and projections provided to KBW or which KBW is directed to use, and that KBW will assume, at the Association's direction, and that all financial forecasts and projections have been reasonably prepared by Association management on a basis reflecting the best then currently available estimates and judgments of management as to the expected future financial performance of the Association, and that it is commercially reasonable that such forecasts and projections can be realized in the amounts and in the time periods currently estimated.

3. <u>Regulatory Filings</u> 

The Association will cause the registration statement (the "Registration Statement"), the Prospectus and all other offering documents in respect of the Conversion and the Offerings to be filed, as necessary or appropriate, with applicable regulatory agencies including the Financial Industry Regulatory Authority ("FINRA") and the appropriate federal and/or state bank regulatory agencies. In addition, the Association and KBW agree that the Association's counsel shall serve as counsel with respect to blue sky matters in connection with the Offerings, and that the Association shall cause such counsel to prepare a Blue Sky Memorandum related to the Offerings including KBW's participation therein and shall furnish KBW a copy thereof addressed to KBW or upon which counsel shall state KBW may rely. KBW shall provide all information concerning the Offerings, including (without limitation) information with respect to the qualification and locations of the participating investors, as may be reasonably requested by such counsel for purposes of such Blue Sky Memorandum.

Keefe, Bruyette & Woods · 70 West Madison, Suite 2401 · Chicago, IL 60602

312.423.8200 · 800.929.6113 · Fax 312.423.8232 · www.kbw.com

Pioneer Federal Savings and Loan Association

February 5, 2025

Page 3 of 9

4. <u>Fees</u> 

For the services hereunder, the Association shall pay the following non-refundable cash fees to KBW, in the amounts and at the times set forth below:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Management Fee</u>: A non-refundable cash fee in an amount of $35,000 (the "Management Fee")
shall be payable by the Association to KBW, as follows: (i) $15,000 shall be paid immediately upon the execution of this Agreement
and (ii) the remaining $20,000 shall be paid immediately upon the initial filing of the Registration Statement (whether or not such
filing is publicly available). Each payment in respect of the Management Fee shall be deemed to have been earned in full when due. Should
the Offerings or this Agreement be terminated for any reason, KBW shall be deemed to have earned in full, and be entitled to be paid in
full, all fees then due and payable as of such date of termination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Success Fee</u>: A Success Fee shall be paid based on 1% of the aggregate purchase price of Common
Stock sold in the Subscription Offering and 1.5% of the aggregate purchase price of Common Stock sold in the Community Offering, subject
to a minimum of $300,000. The Management Fee described in Section 4(a), to the extent then already paid, will be credited against
the Success Fee. The obligation to pay to KBW the full Success Fee upon completion of the Subscription Offering and any Community Offering
shall survive any termination of this Agreement, unless termination occurs prior to the effectiveness of the Registration Statement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Fees for Syndicated Community Offering</u>: If any shares of the Common Stock remain unsold after the
completion of the Subscription Offering and any Community Offering, then at the written request of the Association acting in its sole
discretion, KBW will seek to form a syndicate of registered broker-dealers to assist in a syndicated community offering, on a best efforts
basis, subject to the terms and conditions set forth in a selected dealers agreement to be entered into by and between the Association
and KBW (the "Syndicated Community Offering"). KBW will endeavor to distribute the Common Stock among broker-dealers in a
fashion which best meets the distribution objectives of the Association and the Conversion. In the event of a Syndicated Community Offering,
KBW will be paid a transaction fee not to exceed 6% of the aggregate purchase price of the shares of Common Stock sold in the Syndicated
Community Offering. The Success Fee described in Section 4(b) will be credited against the Syndicated Community Offering transaction
fee. From this fee, KBW will pass onto selected broker-dealers (if any), who assist in the Syndicated Community Offering, an amount competitive
with gross underwriting discounts charged at such time for comparable amounts of stock sold at a comparable price per share in a similar
market environment. Fees with respect to purchases affected with the assistance of a broker/dealer other than KBW shall be transmitted
by KBW to such broker/dealer.

Keefe, Bruyette & Woods · 70 West Madison, Suite 2401 · Chicago, IL 60602

312.423.8200 · 800.929.6113 · Fax 312.423.8232 · www.kbw.com

Pioneer Federal Savings and Loan Association

February 5, 2025

Page 4 of 9

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) In connection with the Subscription Offering, if, as a result of any resolicitation of subscribers undertaken
by the Association, KBW reasonably determines that it is required or requested to provide significant services, KBW will be entitled to
additional compensation for such services, which additional compensation will not exceed $30,000.

The terms of any Agency Agreement (as defined herein) to be entered into between the Association and KBW in connection with the Offerings shall contain fee provisions no less favorable to KBW than those set forth above. To the extent required under applicable FINRA rules and regulations, the payment of compensation by the Association to KBW pursuant to this Section 4 is subject to FINRA's review thereof.

5. <u>Additional Services</u> 

KBW further agrees to provide general and non-exclusive financial advisory assistance to the Association that is not in the context of any Conversion, for a period of three years following completion of the Offerings, including general strategic planning, the creation of a capital management strategy designed to enhance the value of the Association, including the formation of a dividend policy and share repurchase program, assistance with shareholder relations matters, general advice on mergers and acquisitions, and other related financial matters, without the payment by the Association of any fees in addition to those set forth in Section 4 hereof. Such services will be non-exclusive and nothing in this Agreement shall require the Association to obtain such services from KBW. If KBW acts as a financial advisor to the Association in connection with any specific transactions, the terms of such engagement will be set forth in a separate agreement between the Association and KBW.

6. <u>Expenses</u> 

The Association will bear all expenses of the proposed Offerings customarily borne by issuers, including, without limitation, regulatory filing fees, "Blue Sky," and FINRA filing and registration fees; the fees of the Association's accountants, attorneys, appraiser, business plan consultant, transfer agent and registrar, printing, mailing and marketing and syndicate expenses associated with the Offerings; the fees set forth in Section 4; and fees for "Blue Sky" legal work. If KBW incurs any expenses on behalf of the Association in connection with the matters contemplated by this Agreement, the Association will reimburse KBW for such expenses.

Keefe, Bruyette & Woods · 70 West Madison, Suite 2401 · Chicago, IL 60602

312.423.8200 · 800.929.6113 · Fax 312.423.8232 · www.kbw.com

Pioneer Federal Savings and Loan Association

February 5, 2025

Page 5 of 9

KBW will also be reimbursed for its reasonable and documented out-of-pocket expenses, not to exceed $30,000 (subject to the provisions of this paragraph), related to the Offerings, including, but not limited to, costs of travel, meals and lodging, photocopying, and couriers. Clerical assistance and/or temporary staff will be billed separately but are included in the $30,000 fee cap stated in the prior sentence. KBW will also be reimbursed for reasonable and documented fees and expenses of its counsel not to exceed $120,000 (subject to the provisions of this paragraph). These expense caps assume no unusual circumstances or delays, and no resolicitation in connection with the Offerings. The Association acknowledges and agrees that, in the event unusual circumstances arise or a delay or resolicitation occurs (including but not limited to a delay in the Offerings which would require an update of the financial information in tabular form to reflect a period later than that set forth in the original filing of the offering documents), such expense caps may be increased by additional amounts, not to exceed an additional $10,000 in the case of additional out-of-pocket expenses of KBW and an additional $25,000 in the case of additional fees and expenses of KBW's legal counsel. In no event shall out-of-pocket expenses, including fees and expenses of counsel, exceed $175,000. The provisions of this paragraph shall not apply to or in any way impair or limit the indemnification or contribution provisions contained herein.

7. <u>Limitations</u> 

The Association acknowledges that all opinions and advice (written or oral) given by KBW to the Association in connection with KBW's engagement are intended solely for the benefit and use of the Association for the purposes of its evaluation of the proposed Offerings. Unless otherwise expressly stated in an opinion letter issued by KBW or otherwise expressly agreed, no one other than the Association is authorized to rely upon this engagement of KBW or any statements or conduct by KBW. The Association agrees that any such opinion or advice, as well as this Agreement (including any of the terms hereof) shall not be used, reproduced, disseminated, quoted or referred to at any time, in any manner, or for any purpose, nor shall any public references to KBW be made by the Association or any of its representatives, without the prior written consent of KBW.

It is expressly understood and agreed that KBW is not undertaking to provide any advice relating to legal, regulatory, accounting or tax matters. In furtherance thereof, the Association acknowledges and agrees that (a) it and its affiliates have relied and will continue to rely on the advice of its own legal, tax and accounting advisors for all matters relating to the Conversion and the Offerings, and all other matters and (b) neither it, or any of its affiliates, has received, or has relied upon, the advice of KBW or any of its affiliates regarding matters of law, regulation, taxation or accounting.

The Association acknowledges and agrees that KBW has been retained to act solely as financial advisor to the Association and not as an advisor to or agent of any other person, and the Association's engagement of KBW is not intended to confer rights upon any person not a party to this Agreement (including shareholders, employees or creditors of the Association) as against KBW or its affiliates, or their respective directors, officers, employees or agents. In such capacity, KBW shall act as an independent contractor, and any duties arising out of its engagement shall be owed solely to the Association. It is understood that KBW's responsibility to the Association is solely contractual in nature and KBW does not owe the Association, or any other party, any fiduciary duty as a result of this Agreement.

Keefe, Bruyette & Woods · 70 West Madison, Suite 2401 · Chicago, IL 60602

312.423.8200 · 800.929.6113 · Fax 312.423.8232 · www.kbw.com

Pioneer Federal Savings and Loan Association

February 5, 2025

Page 6 of 9

The Association acknowledges that KBW is a securities firm engaged in securities trading and brokerage activities and providing investment banking and financial advisory services. In the ordinary course of business, KBW and its affiliates may at any time hold long or short positions, and may trade or otherwise effect transactions, for its own account or the accounts of customers, in the Association's debt or equity securities, or the debt or equity securities of the Association's affiliates or other entities that may be involved in the transactions contemplated by this Agreement. In addition, KBW and its affiliates may from time to time perform various investment banking and financial advisory services for other clients and customers who may have conflicting interests with respect to the Association. The Association acknowledges that KBW and its affiliates have no obligation to use in connection with this engagement or to furnish the Association's confidential information obtained from other companies.

8. <u>Benefit</u> 

This Agreement shall inure to the benefit of the parties hereto and their respective successors, and the obligations and liabilities assumed hereunder by the parties hereto shall be binding upon their respective successors; provided, however, that this Agreement shall not be assignable without the mutual consent of KBW and the Association.

9. <u>Confidentiality</u> 

KBW acknowledges that a portion of the Information provided to it in connection with its engagement hereunder may contain confidential and proprietary business information concerning the Association (such Information, the "Confidential Information"). KBW agrees that, except as contemplated in connection with the performance of its services under this Agreement, as authorized by the Association or as required by law, regulation or legal process, it will treat as confidential all Confidential Information; provided, however, that KBW may disclose such Confidential Information to its agents and advisors who are assisting or advising KBW in performing its services hereunder and who have been instructed to be bound by the terms and conditions of this paragraph. KBW agrees to be responsible and liable for its agents who actually receive such Confidential Information. As used herein, the term "Confidential Information" shall not include information which (a) is or becomes available to the public other than as a result of a disclosure by KBW or its representatives in violation of this Agreement, (b) was available to KBW on a non-confidential basis prior to its disclosure to KBW or its representatives by the Association, or (c) becomes available to KBW on a non-confidential basis from a person other than the Association who is not known to KBW to be bound not to disclose such information pursuant to a contractual obligation of confidentiality to the Association.

The Association hereby acknowledges and agrees that all presentation materials and financial models used by KBW in performing its services hereunder have been developed by and are proprietary to KBW. The Association agrees that it will not reproduce or distribute all or any portion of such models or presentations without the prior written consent of KBW; provided, however that, such models or presentations may be disclosed by the Association if legally required, provided that, (x) unless prohibited by legal authority, prior written notice thereof is provided to KBW as promptly as practicable, (y) any description of or reference to such models or presentations is in a form reasonably acceptable to KBW and its counsel, and (z) the Association will use commercially reasonable efforts to have such models or presentations designated or otherwise marked with the highest level of confidentiality under the applicable confidentiality or protective order (if any) and as part of the official court record (if any) and the Association otherwise uses reasonable best efforts to ensure that such models or presentations are not publicly disclosed.

Keefe, Bruyette & Woods · 70 West Madison, Suite 2401 · Chicago, IL 60602

312.423.8200 · 800.929.6113 · Fax 312.423.8232 · www.kbw.com

Pioneer Federal Savings and Loan Association

February 5, 2025

Page 7 of 9

10. <u>Advertisements</u> 

The Association agrees that, following the closing of the Offerings, KBW has the right to place advertisements in financial and other newspapers and journals at its own expense, describing its services to the Association and a general description of such offering. In addition, the Association agrees to include in any press release or public announcement announcing any such offering a reference to KBW's role as financial advisor and sole bookrunning manager with respect to such offering, provided that the Association will submit a copy of any such press release or public announcement to KBW for its prior approval, which approval shall not be unreasonably withheld or delayed.

11. <u>Indemnification</u> 

As KBW will be acting on behalf of the Association in connection with the Conversion and the Offerings, the Association agrees to indemnify and hold harmless KBW and its affiliates, the respective partners, directors, officers, employees and agents of KBW and its affiliates and each other person, if any, controlling KBW or any of its affiliates and each of their successors and assigns (KBW and each such person being an "Indemnified Party") to the fullest extent permitted by law, from and against any and all losses, claims, damages and liabilities, joint or several, to which such Indemnified Party may become subject under applicable federal or state law, or otherwise related to or arising out of the Conversion or the Offerings or the engagement of KBW pursuant to, or the performance by KBW of the services contemplated by, this Agreement, and will reimburse any Indemnified Party for all reasonable and documented out-of-pocket expenses (including legal fees and expenses) as they are incurred, including expenses incurred in connection with the investigation, preparing for or defending any such action or claim whether or not in connection with pending or threatened litigation, or any action or proceeding arising therefrom, whether or not KBW is a party; provided, however, that the Association will not be liable in any such case to the extent that any such loss, claim, damage, liability or expense (a) arises out of or is based upon any untrue statement of a material fact or the omission of a material fact required to be stated therein or necessary to make not misleading any statements contained in any final Prospectus, or any amendment or supplement thereto, made in reliance on and in conformity with written information furnished to the Association by KBW expressly for use therein or (b) to the extent that any loss, claim, damage, liability or expense is found in a final judgment by a court of competent jurisdiction to have resulted primarily from KBW's gross negligence or bad faith of KBW.

If the indemnification provided for in the foregoing paragraph is judicially determined to be unavailable (other than in accordance with the terms hereof) to any person otherwise entitled to indemnity in respect of any losses, claims, damages or liabilities referred to herein, then, in lieu of indemnifying such person hereunder, the Association shall contribute to the amount paid or payable by such person as a result of such losses, claims, damages or liabilities (and expenses relating thereto) (i) in such proportion as is appropriate to reflect the relative benefits to the Association, on the one hand, and KBW, on the other hand, of the engagement provided for in this Agreement or (ii) if the allocation provided for in clause (i) above is not available, in such proportion as is appropriate to reflect not only the relative benefits referred to in such clause (i) but also the relative fault of each of the Association and KBW, as well as any other relevant equitable considerations; <u>provided,</u> <u>however</u>, in no event shall KBW's aggregate contribution to the amount paid or payable exceed the aggregate amount of fees actually received by KBW under this Agreement. For the purposes of this Agreement, the relative benefits to the Association and to KBW of the engagement under this Agreement shall be deemed to be in the same proportion as (a) the total value paid or contemplated to be paid or received or contemplated to be received by the Association in the Conversion and the Offerings that are the subject of the engagement hereunder, whether or not consummated, bears to (b) the fees paid or to be paid to KBW under this Agreement.

Keefe, Bruyette & Woods · 70 West Madison, Suite 2401 · Chicago, IL 60602

312.423.8200 · 800.929.6113 · Fax 312.423.8232 · www.kbw.com

Pioneer Federal Savings and Loan Association

February 5, 2025

Page 8 of 9

The Association also agrees that neither KBW, nor any of its affiliates nor any officer, director, employee or agent of KBW or any of its affiliates, nor any person controlling KBW or any of its affiliates, shall have any liability to the Association for or in connection with such engagement except for any such liability for losses, claims, damages, liabilities or expenses incurred by the Association which are finally judicially determined to have resulted primarily from KBW's bad faith or gross negligence. The foregoing agreement shall be in addition to any rights that KBW, the Association or any Indemnified Party may have at common law or otherwise, including, but not limited to, any right to contribution. For the sole purpose of enforcing and otherwise giving effect to the indemnification and contribution provisions of this agreement, the Association hereby consents to personal jurisdiction and service and venue in any court in which any claim which is subject to this agreement is brought against KBW or any other indemnified party.

The Association agrees that it will not, without the prior written consent of KBW, settle or compromise or consent to the entry of any judgment with respect to any pending or threatened claim, action, suit or proceeding in respect of which indemnification or contribution may be sought hereunder (whether or not KBW is an actual or potential party to such claim, action, suit, or proceeding) unless such settlement, compromise or consent includes an unconditional release of KBW from all liability arising out of such claim, action, suit or proceeding.

12. <u>Definitive Agreement</u> 

This Agreement reflects KBW's present intention of proceeding to work with the Association on the proposed Conversion and Offerings. No legal and binding obligation is created on the part of the Association or KBW with respect to the subject matter hereof, except as to (i) the agreement to maintain the confidentiality of Confidential Information set forth in Section 9, (ii) the payment of certain fees as set forth in Section 4, (iii) the payment of expenses as set forth in Section 6, (iv) the limitations set forth in Section 7, (v) the limitations of liability, the indemnification and contribution obligations and the other provisions set forth in Section 11 and (iv) those terms as may be set forth in a mutually agreed upon agency agreement between KBW and the Association to be executed prior to commencement of the Offerings (the "Agency Agreement"), all of which, notwithstanding anything to the contrary that may be contained herein, shall constitute the binding obligations of the parties hereto and which shall survive any termination of this Agreement or the completion of the services furnished hereunder and shall remain operative and in full force and effect.

Keefe, Bruyette & Woods · 70 West Madison, Suite 2401 · Chicago, IL 60602

312.423.8200 · 800.929.6113 · Fax 312.423.8232 · www.kbw.com

Pioneer Federal Savings and Loan Association

February 5, 2025

Page 9 of 9

The Association acknowledges and agrees that KBW's provision of services in connection with the Conversion and the Offerings, as contemplated herein, is expressly subject to (a) satisfactory completion of Due Diligence Review by KBW, (b) the preparation of a Registration Statement and Prospectus and other offering materials that are satisfactory to KBW in form and substance, (c) compliance with all applicable legal and regulatory requirements to the reasonable satisfaction of KBW and its counsel, (d) market conditions (including at the time of any of the proposed Offerings), and (e) approval of KBW's internal committee.

This Agreement constitutes the entire agreement between the parties with respect to the subject matter hereof and can be altered only by written consent signed by the parties. This Agreement shall be construed and enforced in accordance with the laws of the State of New York, without regard to the conflicts of laws principles thereof. **Any right to trial by jury with respect to any claim or action arising out of this Agreement or conduct in connection with the engagement is hereby waived by the parties hereto.**

If the foregoing correctly sets forth our mutual understanding, please so indicate by signing and returning an original copy of this Agreement to the undersigned.

Very truly yours,

KEEFE, BRUYETTE & WOODS, INC.

---

| | | | |
|:---|:---|:---|:---|
| By: | */s/ Patricia A. McJoynt* | Date: | 2/5/2025 |
|  | Patricia A. McJoynt |  |  |
|  | Managing Director |  |  |

---

PIONEER FEDERAL SAVINGS AND LOAN ASSOCIATION

---

| | | | |
|:---|:---|:---|:---|
| By: | */s/ Phillip K. Willett* | Date: | 3/10/2025 |
|  | Phillip K. Willett |  |  |
|  | President and Chief Executive Officer |  |  |

---

Keefe, Bruyette & Woods · 70 West Madison, Suite 2401 · Chicago, IL 60602

312.423.8200 · 800.929.6113 · Fax 312.423.8232 · www.kbw.com

## Exhibit 1.2

**Exhibit 1.2**

![](tm2525788d3_ex1-2img001.jpg)

February 5, 2025

Pioneer Federal Savings and Loan Association

202 N. Main Street

Deer Lodge, MT 59722

Attention: Mr. Phillip K. Willett

President and Chief Executive Officer

Re: Services of Conversion Agent and Data Processing Records Management Agent

Ladies and Gentlemen:

This letter agreement (this "Agreement") confirms the engagement of Keefe, Bruyette & Woods, Inc. ("KBW") by Pioneer Federal Savings and Loan Association (the "Association"), to act as the conversion agent and the data processing records management agent (KBW in such capacities, the "Agent") to the Association in connection with the Association's proposed conversion from the mutual to stock form of organization, including the offer and sale of the common stock (the "Conversion") pursuant to the Association's proposed Plan of Conversion (the "Plan of Conversion"). The sale will be to eligible persons in a subscription offering (the "Subscription Offering"), with any remaining unsold shares of Common Stock to then be offered to the general public in a community offering (the "Community Offering") and if necessary, through a syndicate of broker-dealers organized by KBW (a "Syndicated Community Offering") (the Subscription Offering, Community Offering, and any Syndicated Community Offering are collectively referred to herein as the "Offerings").

This Agreement sets forth the terms and conditions of KBW's engagement solely in its capacity as Agent. It is acknowledged that the terms of KBW's engagement by the Association as exclusive financial advisor in the Conversion and as sole bookrunning manager in the Offerings is set forth in a separate agreement entered into by and between KBW and the Association (on behalf of both itself and the Association) on or about the date hereof (such separate agreement, the "Advisory Agreement").

Keefe, Bruyette & Woods · 70 West Madison, Suite 2401 · Chicago, IL 60602

312.423.8200 · 800.929.6113 · Fax 312.423.8232 · www.kbw.com

Pioneer Federal Savings and Loan Association

February 5, 2025

Page 2 of 12

1. <u>Description of Services</u>.

As Agent, and as the Association may reasonably request, KBW will provide the services further described below (the "Services"):

&nbsp;&nbsp;&nbsp;&nbsp;1. Consolidation of Accounts and Development of a Central File, including, but not limited to the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Consolidate accounts having the same ownership
and separate the consolidated file information into necessary groupings to satisfy mailing requirements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Create the master file of account holders as
of key record dates; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Create software for the operation of the Association's
Stock Information Center, including subscription management and proxy solicitation efforts.

&nbsp;&nbsp;&nbsp;&nbsp;2. Preparation of Proxy Forms; Proxy Solicitation and Special Meeting Services, including, but not limited
to the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Assist the Association's financial printer
with labeling of proxy materials for voting and subscribing for shares of Common Stock;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Provide support for any follow-up mailings to
members, as needed, including proxy grams and additional solicitation materials;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Proxy tabulation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Act as or assist the Inspector of Election for
the Association's special meeting of members, if requested, assuming the election is not contested.

&nbsp;&nbsp;&nbsp;&nbsp;3. Subscription Services, including, but not limited to the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Establish and manage the Stock Information Center
during the Offerings;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Establish recordkeeping and reporting procedures;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Assist in educating Association personnel;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Assist the Association's financial printer
with labeling of offering materials for subscribing for shares of Common Stock;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Provide support for any follow-up mailings to
members, as needed, including additional solicitation materials;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Common Stock order form processing and production
of daily reports and analysis;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Provide supporting account information to the
Association's legal counsel for "blue sky" research and applicable registration;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Assist the Association's transfer agent
with the generation and mailing of stock ownership statements; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Perform interest and if applicable refund calculations
and provide a file to enable the transfer agent to generate interest and refund checks.

Keefe, Bruyette & Woods · 70 West Madison, Suite 2401 · Chicago, IL 60602

312.423.8200 · 800.929.6113 · Fax 312.423.8232 · www.kbw.com

Pioneer Federal Savings and Loan Association

February 5, 2025

Page 3 of 12

&nbsp;&nbsp;&nbsp;&nbsp;4. Records Processing Services: KBW will provide records processing services (the "Records Processing
Services") contemplated hereby. The parties hereto expressly acknowledge and agree that KBW expects to subcontract certain Records
Processing Services, including without limitation certain integral data processing functions, to any one or more of its affiliates or
to any other party (including non-affiliate third parties). The fees and expenses of such subcontractor shall not be billed to the Association,
unless otherwise agreed to by the parties hereto in writing. Such subcontractor(s) shall agree to comply with the provisions of this
Agreement set forth under the heading "Confidentiality and Consumer Privacy," and KBW shall be responsible for any breach
of such provisions by such subcontractor(s).

2. <u>Duties and Obligations</u>.

KBW, as Agent, hereby agrees to perform the Services in a commercially reasonable manner and to comply with all timely, appropriate and lawful instructions received from duly authorized representatives of the Association. KBW makes no warranties regarding the rendering of the Services (including, without limitation, warranties of merchantability, security, accuracy, non-infringement, and fitness for a particular purpose), and no additional warranties may be implied from the terms of this Agreement. The Association will: (i) inform all of its authorized representatives, which may include attorneys, agents and advisors, that KBW shall act as the exclusive Agent and that they are authorized and directed to communicate with KBW and to promptly provide KBW with all information that is reasonably requested; (ii) cause KBW to have adequate notice of, and permit KBW to attend, meetings (whether in person or otherwise) where KBW's attendance is relevant, advisable or necessary; (iii) cause KBW to receive, as they become available, copies of the documents relating to the Plan of Conversion, the Conversion and the Offerings, to the extent KBW believes that such documents are necessary or appropriate for it to perform the Services and (iv) cause KBW to have adequate advance notice of any proposed changes to the Plan of Conversion, the proposed Services or the timetable of the Offerings. Failure by the Association to keep KBW timely and adequately informed or to provide KBW with complete and accurate necessary information on a timely basis shall excuse KBW's delay in the performance of its Services and may be grounds for KBW to terminate the Services pursuant to this Agreement.

The actions to be taken by KBW hereunder are deemed by the parties to be ministerial only and not discretionary. KBW, in its capacity as Agent under this Agreement, shall not be called upon at any time to give any advice regarding implementing the Plan of Conversion. The Association shall have the sole responsibility to make any and all decisions with respect to implementing the Plan of Conversion, including but not limited to decisions regarding which Association customer accounts are to be included in accountholder records provided to KBW.

KBW expects to subcontract certain data processing functions integral to the Services with any one or more of its affiliates or with any other party. The fees and expenses of such subcontractor shall not be billed to the Association, unless otherwise agreed to by the parties hereto in writing. Such subcontractor(s) shall agree to comply with the provisions of this Agreement set forth under the heading "Confidentiality and Consumer Privacy," and KBW shall be responsible for any breach of such provisions by such subcontractor(s).

Keefe, Bruyette & Woods · 70 West Madison, Suite 2401 · Chicago, IL 60602

312.423.8200 · 800.929.6113 · Fax 312.423.8232 · www.kbw.com

Pioneer Federal Savings and Loan Association

February 5, 2025

Page 4 of 12

3. <u>Fees Payable to KBW</u>.

For the Services described above, the Association agrees to pay KBW a non-refundable cash fee of $35,000 (the "Services Fee"). Such fee is based upon the requirements of current banking regulations, the Association's Plan of Conversion as currently contemplated, and the expectation that member data will be processed as of three key record dates. Any material changes in applicable regulations or the Plan of Conversion, or delays requiring duplicate or replacement processing due to changes to record dates, may result in additional fees not exceeding $12,000 payable to KBW. The Services Fee shall be payable as follows: (i) $17,500 shall be payable immediately upon execution of this Agreement, which shall be non-refundable and deemed to be earned in full when paid and (ii) all remaining amounts shall be payable immediately upon the completion of the Offerings.

4. <u>Costs and Expenses; Reimbursement</u>.

The Association will bear all of expenses in connection with the Offerings and the matters contemplated by this Agreement. The Association shall also reimburse KBW for its reasonable and documented out-of-pocket expenses incurred in connection with the Services, regardless of whether the Offerings are consummated, provided that such out-of-pocket expenses shall not exceed $10,000, without the written consent of the Association (it being understood that email consent is sufficient). Typical expenses include, but are not limited to, additional programming costs, postage, overnight delivery, and travel. Not later than two days before the closing of the Offerings, KBW will provide the Association with documentation of all reimbursable expenses of KBW, to be paid at closing. The provisions of this paragraph shall not apply to or in any way impair the indemnification, contribution or liability limitation provisions set forth in this Agreement.

5. <u>Reliance on Information Provided</u>.

The Association agrees to provide KBW with such information as KBW may reasonably require to carry out the Services under this Agreement (all such information so provided, the "Information). The Association recognizes and confirms that KBW (a) will use and rely on and assume the accuracy and completeness of such Information in performing the Services contemplated by this Agreement without having independently verified or analyzed the accuracy or completeness of the same, and (b) does not assume responsibility or liability for the accuracy or completeness of the Information (including, without limitation, accountholder records provided or processed) or to conduct any independent verification or any appraisal or physical inspection of properties or assets.

KBW, as Agent, may further rely upon the instructions and representations (whether oral or in writing) of the Association's duly authorized representatives, without inquiry or investigation. KBW shall not be responsible for any action taken in reliance upon any signature, endorsement, assignment, certificate, order, request, notice or instruction (whether written or oral), or other instrument or document reasonably believed by it to be valid, genuine and sufficient in carrying out its duties hereunder. KBW shall not be liable or responsible, and shall be fully authorized and protected for, acting or failing to act in accordance with any oral instructions or requests given by such duly authorized representatives of the Association.

KBW may consult with legal counsel chosen in good faith as to KBW's obligations or performance under this Agreement, and KBW shall not incur any liability in acting in good faith in accordance with any advice from such counsel with respect to KBW's obligations or performance under this Agreement.

Keefe, Bruyette & Woods · 70 West Madison, Suite 2401 · Chicago, IL 60602

312.423.8200 · 800.929.6113 · Fax 312.423.8232 · www.kbw.com

Pioneer Federal Savings and Loan Association

February 5, 2025

Page 5 of 12

6. <u>Confidentiality and Consumer Privacy</u>.

KBW acknowledges that a portion of the Information provided to it in connection with its engagement hereunder may contain confidential and proprietary business information concerning the Association (such Information, the "Confidential Information"). KBW agrees that, except as contemplated in connection with the performance of its services under this agreement, as authorized by the Association or as required by law, regulation or legal process, it will treat as confidential all Confidential Information; <u>provided</u>, <u>however</u>, that KBW may disclose such Confidential Information to its agents and advisors who are assisting or advising KBW in performing its services hereunder and who have been instructed to be bound by the terms and conditions of this paragraph; <u>provided</u>, <u>further</u>, that KBW shall be responsible for any breaches of such terms and conditions by such agents or advisors. As used herein, the term "Confidential Information" shall not include information which (a) is or becomes available to the public other than as a result of a disclosure by KBW or its representatives in violation of this Agreement, (b) was available to KBW on a non-confidential basis prior to its disclosure to KBW or its representatives by the Association, or (c) becomes available to KBW on a non-confidential basis from a person other than the Association who is not known to KBW to be bound not to disclose such information pursuant to a contractual obligation of confidentiality to the Association. It is understood by the parties hereto that the receiving party shall be deemed to have satisfied its obligation to hold the Confidential Information confidential if it exercises the same care as it takes to preserve the confidentiality of its own similar information.

KBW further acknowledges that a portion of the Information provided to it in connection with its engagement hereunder will include nonpublic personal data regarding Association customers and Association account records. KBW agrees that such information shall be deemed to be "Confidential Information" under this Agreement and shall not be used or disclosed except in accordance with the terms of this Agreement.

If at any time KBW is served with any judicial or administrative order, judgment, decree, motion, writ, or other form of judicial or administrative process which in any way affects any property of the Association, KBW is authorized to comply therewith in any reasonable manner as it or its legal counsel of its own choosing deems appropriate; provided that the Agent shall, if permissible by law or regulation, give prompt notice thereof to the Association. If KBW complies with any such judicial or administrative order, judgment, decree, writ or other form of judicial or administrative process, KBW shall not be liable to any of the parties, or to any other person or entity, even though such order, judgment, decree, writ or process may be subsequently modified or vacated or otherwise determined to have been without legal force or effect.

Keefe, Bruyette & Woods · 70 West Madison, Suite 2401 · Chicago, IL 60602

312.423.8200 · 800.929.6113 · Fax 312.423.8232 · www.kbw.com

Pioneer Federal Savings and Loan Association

February 5, 2025

Page 6 of 12

7. <u>Limitations of Responsibilities</u>.

KBW, as Agent, (a) shall have no duties or obligations other than the contractual obligations specifically set forth herein; (b) will be regarded as making no representations and having no responsibilities as to the validity, sufficiency, value or genuineness of any order form or any stock certificates or the shares of Common Stock represented thereby, and will not be required to and will make no representations as to the validity, value or genuineness of any offer in connection with the Offerings or otherwise; (c) shall not be obliged to take any legal action hereunder which might in its sole judgment involve any expense (other than expenses subject to reimbursement under Section 4) or liability, unless it shall have been furnished with indemnity satisfactory to it; and (d) may rely on and shall be protected in acting in reliance upon any certificate, instrument, opinion, notice, letter, telex, telegram, or other document or security delivered to it and in good faith believed by it to be genuine and to have been signed by the proper party or parties.

The duties, responsibilities and obligations of KBW, as Agent, shall be limited to those expressly set forth herein, and no duties, responsibilities or obligations shall be inferred or implied. KBW, in its capacity as Agent, shall not be subject to, nor required to comply with, any other agreement between or among any or all of the parties hereto and/or any other person or entity, even though reference thereto may be made herein or therein, or to comply with any direction or instruction (other than those contained herein or delivered in accordance with this Agreement) from any person or entity other than the Association. Except as may otherwise specifically be set forth herein, KBW shall not be required to, and shall not, expend or risk any of its own funds or otherwise incur any financial liability in the performance of its duties hereunder.

KBW, as Agent in furnishing services to the Association under this Agreement, is acting only as an independent contractor and is not a fiduciary of, nor will its entering into this Agreement give rise to fiduciary duties to, the Association. KBW does not undertake by this Agreement or otherwise to perform any obligation of the Association, whether regulatory, contractual, or otherwise. KBW has the sole right and obligation to supervise, manage, contract, direct, procure, perform or cause to be performed, all work to be performed by it under this Agreement unless otherwise provided in this Agreement. The Association understands and agrees that KBW may perform services substantially similar to those to be performed hereunder for others, and nothing herein is intended to restrict or prohibit KBW from performing such services for others.

No implied duties or obligations shall be read into this Agreement against KBW, and KBW, in its capacity as such, shall not be bound by any provision of any agreement between the Association and any other person or entity other than this Agreement, and KBW shall have no duty to inquire into, or to take into account its knowledge of, the terms and conditions of any agreement made or entered into in connection with this Agreement.

Keefe, Bruyette & Woods · 70 West Madison, Suite 2401 · Chicago, IL 60602

312.423.8200 · 800.929.6113 · Fax 312.423.8232 · www.kbw.com

Pioneer Federal Savings and Loan Association

February 5, 2025

Page 7 of 12

8. <u>Indemnification; Contribution; Limitations of Liability</u>.

The Association agrees to indemnify and hold harmless KBW and its affiliates, the respective partners, directors, officers, employees, and agents of KBW and its affiliates and each other person, if any, controlling KBW or any of its affiliates and each of their successors and assigns (KBW and each such person being an "Indemnified Party") to the fullest extent permitted by law, from and against any and all losses, claims, damages and liabilities, joint or several, to which such Indemnified Party may become subject under applicable federal or state law, and reasonably related to or arising out of the engagement of KBW pursuant to, and the performance by KBW of the services contemplated by, this Agreement, and will reimburse any Indemnified Party for all reasonable and documented out-of-pocket expenses (including documented legal fees and expenses) as they are incurred, including reasonable and documented out-of-pocket expenses incurred in connection with the investigation, preparing for or defending any such action or claim whether or not in connection with pending or threatened litigation, or any action or proceeding arising therefrom, whether or not KBW is a party. The Association will not be liable under the foregoing indemnification provision to the extent that any loss, claim, damage, liability or expense is found in a final judgment by a court of competent jurisdiction to have resulted primarily from KBW's bad faith or gross negligence.

If the indemnification provided for in the foregoing paragraph is judicially determined to be unavailable (other than in accordance with the terms hereof) to any person otherwise entitled to indemnity in respect of any losses, claims, damages or liabilities referred to herein, then, in lieu of indemnifying such person hereunder, the Association shall contribute to the amount paid or payable by such person as a result of such losses, claims, damages or liabilities (and expenses relating thereto) (i) in such proportion as is appropriate to reflect the relative benefits to the Association, on the one hand, and KBW, on the other hand, of the engagement provided for in this Agreement or (ii) if the allocation provided for in clause (i) above is not available, in such proportion as is appropriate to reflect not only the relative benefits referred to in such clause (i) but also the relative fault of each of the Association and KBW, as well as any other relevant equitable considerations; <u>provided, however</u>, in no event shall KBW's aggregate contribution to the amount paid or payable exceed the aggregate amount of fees actually received by KBW under this Agreement. For the purposes of this Agreement, the relative benefits to the Association and to KBW of the engagement under this Agreement shall be deemed to be in the same proportion as (a) the total value paid or contemplated to be paid or received or contemplated to be received by the Association in the Conversion and the Offerings that are the subject of the engagement hereunder, whether or not consummated, bears to (b) the fees paid or to be paid to KBW under this Agreement.

The Association also agrees that neither KBW, nor any of its affiliates nor any officer, director, employee or agent of KBW or any of its affiliates, nor any person controlling KBW or any of its affiliates, shall have any liability to the Association for or in connection with such engagement except for any such liability for losses, claims, damages, liabilities or expenses incurred by the Association which are finally judicially determined to have resulted primarily from KBW's bad faith or gross negligence. The foregoing agreement shall be in addition to any rights that KBW, the Association or any Indemnified Party may have at common law or otherwise, including, but not limited to, any right to contribution. For the sole purpose of enforcing and otherwise giving effect to the provisions of this Agreement, the Association hereby consents to personal jurisdiction and service and venue in any court in which any claim which is subject to this agreement is brought against KBW or any other Indemnified Party.

Keefe, Bruyette & Woods · 70 West Madison, Suite 2401 · Chicago, IL 60602

312.423.8200 · 800.929.6113 · Fax 312.423.8232 · www.kbw.com

Pioneer Federal Savings and Loan Association

February 5, 2025

Page 8 of 12

KBW shall not be responsible nor liable for delays, errors or omissions arising from, relating to or made in connection with circumstances beyond its reasonable control, including but not limited to, acts or omissions of the Association or any of its advisors or agents, acts of governmental authorities, acts of civil commotion or riot, insurrection, acts of military authority, war or acts of war or terrorism, national emergencies, labor difficulties, fire, flood, weather-related problems, acts of God or nature, mechanical or electrical breakdown, computer problems, failure or unavailability of communications or power supply or any change in law or regulation materially affecting KBW or the Association.

In no event shall KBW be liable for: (i) acting in accordance with or relying upon any instruction, request, notice, demand, certificate, order or document from the Association or any authorized representative acting on its behalf or (ii) for any consequential, indirect, incidental, punitive, exemplary or special damages of any kind whatsoever (including but not limited to lost profits) even if KBW has been advised of the possibility of such damages. Any liability of KBW shall be limited to the amount of fees paid to KBW for the Services performed by KBW as Agent pursuant to this Agreement. A claim by Association for a return of fees paid to KBW by the Association for the Services performed as Agent pursuant to this Agreement shall be the sole and exclusive remedy for any damages. This limitation of liability is intended to apply to the full extent allowed by law, regardless of the grounds or nature of any claim asserted.

The Association agrees that it will not, without the prior written consent of KBW, settle or compromise or consent to the entry of any judgment with respect to any pending or threatened claim, action, suit or proceeding in respect of which indemnification or contribution may be sought hereunder (whether or not KBW is an actual or potential party to such claim, action, suit, or proceeding) unless such settlement, compromise or consent includes an unconditional release of KBW from all liability arising out of such claim, action, suit or proceeding.

It is understood that KBW's engagement referred to above may be embodied in one or more separate written agreements and that, in connection with such engagement, KBW may also be requested to provide additional services or to act for the Association in one or more additional capacities. The indemnification provided hereunder shall apply to said engagement, any such additional services or activities and any modification, and shall remain in full force and effect following the completion or termination of KBW's engagement or this Agreement.

9. <u>Commencement and Termination</u>.

This Agreement shall commence immediately upon execution hereof by all parties and shall continue in force until the consummation or termination of the Conversion or the Offerings or the termination of this Agreement. This Agreement may only be terminated by the Association for cause due to action by KBW constituting a material violation of applicable law or a material breach of this Agreement, which breach remains uncured for ten (10) business days after written notice of such breach is delivered by the Association to KBW. This Agreement may only be terminated by KBW in the event of one or more of the following: (i) termination of the Advisor Agreement; (ii) circumstances described in this Agreement in the second paragraph under the heading "Miscellaneous"; (iii) action by the Association constituting a material violation of applicable law or a material breach of this Agreement (including as described in this Agreement in the first paragraph under the heading "Duties and Obligations" or failure to pay the fees and expenses of KBW as set forth herein), which breach remains uncured for ten (10) business days after written notice of breach is delivered by KBW to the Association or (iv) any proceeding in bankruptcy, reorganization, rehabilitation, guaranty fund action, receivership or insolvency is commenced by or against the Association, the Association shall become insolvent, or cease paying its obligations as they become due.

Keefe, Bruyette & Woods · 70 West Madison, Suite 2401 · Chicago, IL 60602

312.423.8200 · 800.929.6113 · Fax 312.423.8232 · www.kbw.com

Pioneer Federal Savings and Loan Association

February 5, 2025

Page 9 of 12

10. <u>Survival of Obligations</u>.

The covenants and agreements of the parties hereto, including those set forth under "Indemnification; Contribution; Limitations of Liability" above, will remain in full force and effect and will survive the consummation of the Conversion and the Offerings or the termination of this Agreement, and KBW, its affiliates, the officers, directors, employees and agents of KBW and any of its affiliates, and any person controlling KBW and any of its affiliates, shall be entitled to the benefit of the covenants and agreements thereafter.

11. <u>Miscellaneous</u>.

The parties hereto acknowledge that there are no third party beneficiaries to this Agreement, which is for the exclusive benefit of the parties hereto. No other person or entity or their respective heirs, successors and assigns shall be deemed to have any legal or equitable right, remedy or claim hereto.

In the event of any ambiguity or uncertainty hereunder or in any notice, instruction or other communication received by KBW hereunder, KBW will provide the Association a reasonable opportunity to resolve such uncertainty or ambiguity and in the event that such uncertainty or ambiguity is unresolved KBW may, in its sole discretion, take any action it deems appropriate or refrain from taking any action unless and until KBW receives written instructions from the Association clarifying the ambiguity or uncertainty, and KBW shall not be liable for acting or the failure to take any action during this period. In the event of any disagreement between the Association and any other person or entity resulting in adverse claims and demands being made herein or affected hereby, KBW shall be entitled to refuse to comply with any such claims or demands as long as such disagreement may continue, and in so refusing, shall make no delivery or other disposition under this Agreement, and in so doing shall be entitled to continue to refrain from acting until: (i) the right of adverse claimants shall have been finally settled by binding arbitration or finally adjudicated in a court of competent jurisdiction or (ii) all differences shall have been settled by agreement among the adverse claimants and the Association or other persons or entities and KBW shall have been notified in writing of such agreement signed by the Association and the adverse person(s) or entity(ies). In the event of such disagreement, KBW may, but need not, tender into the registry or custody of any court of competent jurisdiction all property in KBW's possession pursuant to the terms of this Agreement, together with such legal proceedings as KBW deems appropriate, and thereupon KBW shall be discharged from all further duties under this Agreement. The filing of any such legal proceeding shall not deprive KBW of compensation or expenses paid or payable hereunder for Services, and KBW shall not be liable with respect to any suspension of performance, delay or otherwise as a result of the tendering of such property. KBW shall have no obligation to take any legal action in connection with this Agreement or towards its enforcement, or to appear in, prosecute or defend any action or legal proceeding which would or might involve KBW in any cost, expense, loss or liability unless indemnification, satisfactory to KBW, in its sole discretion, shall be furnished by the Association. KBW shall be indemnified for all reasonable costs (including employee time at the employee's hourly rate determined by his annual salary) and reasonable attorneys' fees and expenses in connection with any such action.

Keefe, Bruyette & Woods · 70 West Madison, Suite 2401 · Chicago, IL 60602

312.423.8200 · 800.929.6113 · Fax 312.423.8232 · www.kbw.com

Pioneer Federal Savings and Loan Association

February 5, 2025

Page 10 of 12

This Agreement supersedes any other agreements, either oral or written, among the parties hereto with respect to the specific subject matter hereof, but not any engagement, underwriting, agency or other agreements among the parties pursuant to which KBW is acting as the Association's financial advisor, underwriter, placement agent, investment banker or in any similar capacity, including without limitation the Advisory Agreement. Except as specifically set forth herein, each party hereto acknowledges that no representation, inducement, promise or agreement, written, oral or otherwise, has been made by any party, or anyone acting on behalf of any party, which is not embodied or expressly stated herein, and that no other agreement, statement, or promise not contained in this Agreement shall be valid or binding in relation to the Services. The Association hereby acknowledges and agrees that: (i) KBW has made full and complete disclosure to the Association of the possibility or existence of any conflict of interest resulting from KBW serving as both data processing records management agent pursuant to this Agreement and as financial advisor, underwriter, placement agent, investment banker or in any similar capacity pursuant to the Advisory Agreement or any other separate agreement and (ii) having received full disclosure thereof, the Association hereby waives any such conflict of interest and consents to KBW serving in such dual capacity.

This Agreement constitutes the entire agreement between the parties with respect to the subject matter hereof and can be altered only by written consent signed by the parties. This Agreement shall be construed and enforced in accordance with the laws of the State of New York, without regard to the conflicts of laws principles thereof. **Any right to trial by jury with respect to any claim or action arising out of this Agreement or conduct in connection with the engagement is hereby waived by the parties hereto.**

This Agreement may be executed in several counterparts, which taken together, shall constitute one and the same document. All section headings used herein are for convenience and ease of reference only and do not constitute part of this Agreement and shall not be referred to for the purpose of defining, interpreting, construing or enforcing any of the provisions of this Agreement. All pronouns and variations thereof shall be deemed to refer to the masculine, feminine, neuter, singular or plural, as the identity of the party or parties to this Agreement may require.

This Agreement may not be assigned by any party without the prior written consent of the other parties hereto and any purported assignment made in violation of the foregoing shall be void and have no legal effect; except that consent is not required for an assignment to a KBW affiliate or successor in interest. This Agreement may be modified only by a written amendment signed by all of the parties hereto and no waiver of any provision hereof shall be effective unless expressed in a writing signed by the party to be charged. No waiver of the breach of any provision or term of this Agreement shall be deemed or construed to be a waiver of any other or subsequent breach.

Keefe, Bruyette & Woods · 70 West Madison, Suite 2401 · Chicago, IL 60602

312.423.8200 · 800.929.6113 · Fax 312.423.8232 · www.kbw.com

Pioneer Federal Savings and Loan Association

February 5, 2025

Page 11 of 12

Should any term or provision, or portion of such provision, of this Agreement be invalid or unenforceable, the scope thereof or the period covered thereby or otherwise, such term, provision, or portion of such provision, shall be deemed to be reduced and limited to enable KBW or the Association, as applicable, to enforce it to the maximum extent permissible under the laws and public policies applied under the jurisdiction in which enforcement is sought. If any term or provision of this Agreement is held or deemed to be invalid or unenforceable, in whole or in part, by a court of competent jurisdiction, such term or provision shall be ineffective to the extent of such invalidity or unenforceability without rendering invalid or unenforceable the remaining terms and provisions of this Agreement which shall be construed to preserve, to the maximum extent permissible, the intent and purposes of this Agreement. Any such invalidity or unenforceability in any jurisdiction shall not invalidate or render unenforceable such terms or provisions in any other jurisdiction.

All media releases, public announcements and public disclosures by either party or its agents relating to this Agreement or the subject matter of this Agreement, but not including any announcement intended solely for internal distribution at such party or any disclosure required by legal, accounting or regulatory requirements beyond the reasonable control of such party, shall be coordinated with and approved by the other party prior to the release thereof, which approval shall not be unreasonably withheld.

12. <u>Notices</u>.

Except as otherwise contemplated by this Agreement, all notices, demands, requests or other communications which may be or are required to be given, served or sent by any party to any other party pursuant to this Agreement, other than in the normal course of conducting the Services, can be by certified or registered mail, personal delivery or transmitted by any standard form of telecommunication with proof of delivery addressed as follows:

---

| | |
|:---|:---|
| (a) | If to the Agent: |
|  | Keefe, Bruyette & Woods, Inc. |
|  | 70 W Madison, Suite 2401 |
|  | Chicago, IL 60602 |
|  | Attn: Patricia A. McJoynt |
|  | Telephone: |
|  | Fax: |

---

If to the Association:

Pioneer Federal Savings and Loan Association

202 N. Main Street

Deer Lodge, MT 59722

Attn: Phillip K. Willett

Telephone:

Fax:

Keefe, Bruyette & Woods · 70 West Madison, Suite 2401 · Chicago, IL 60602

312.423.8200 · 800.929.6113 · Fax 312.423.8232 · www.kbw.com

Pioneer Federal Savings and Loan Association

February 5, 2025

Page 12 of 12

Each party may designate by notice in writing a new address/addressee to which any notice, demand, request or communication may thereafter be provided. If the foregoing correctly sets forth our mutual understanding, please so indicate by signing and returning the original copy of this letter to the undersigned.

Very truly yours,

---

| | | | |
|:---|:---|:---|:---|
| By: | */s/ Patricia A. McJoynt* | Date: | 2/5/2025 |
|  | Patricia A. McJoynt |  |  |
|  | Managing Director |  |  |

---

PIONEER FEDERAL SAVINGS AND LOAN ASSOCIATION

---

| | | | |
|:---|:---|:---|:---|
| By: | */s/ Phillip K. Willett* | Date: | 3/10/2025 |
|  | Phillip K. Willett |  |  |
|  | President and Chief Executive Officer |  |  |

---

Keefe, Bruyette & Woods · 70 West Madison, Suite 2401 · Chicago, IL 60602

312.423.8200 · 800.929.6113 · Fax 312.423.8232 · www.kbw.com

## Ex-2

**Exhibit 2**

PLAN OF CONVERSION

OF

PIONEER FEDERAL SAVINGS AND LOAN ASSOCIATION

**TABLE OF CONTENTS**

1. INTRODUCTION 1

2. DEFINITIONS 1

3. PROCEDURES FOR CONVERSION 7

4. APPLICATIONS AND APPROVALS 9

5. SALE OF SUBSCRIPTION SHARES 9

6. PURCHASE PRICE AND NUMBER OF SUBSCRIPTION SHARES 9

7. RETENTION OF OFFERING PROCEEDS BY THE HOLDING COMPANY 10

8. SUBSCRIPTION RIGHTS OF ELIGIBLE ACCOUNT HOLDERS (FIRST PRIORITY) 10

9. SUBSCRIPTION RIGHTS OF EMPLOYEE PLANS (SECOND PRIORITY) 11

10. SUBSCRIPTION RIGHTS OF SUPPLEMENT AL ELIGIBLE ACCOUNT HOLDERS (THIRD PRIORITY) 11

11. SUBSCRIPTION RIGHTS OF OTHER MEMBERS (FOURTH PRIORITY) 12

12. DIRECT COMMUNITY OFFERING 12

13. SYNDICATED COMMUNITY OFFERING OR FIRM COMMITMENT UNDERWRITTEN OFFERING 13

14. LIMITATIONS ON PURCHASES 14

15. PAYMENT FOR SUBSCRIPTION SHARES 15

16. MANNER OF EXERCISING SUBSCRIPTION RIGHTS THROUGH ORDER FORMS 16

17. UNDELIVERED, DEFECTIVE OR LATE ORDER FORM; INSUFFICIENT PAYMENT 17

18. RESIDENTS OF FOREIGN COUNTRIES AND CERTAIN STATES 18

19. CONTRIBUTION TO THE FOUNDATION 18

20. ESTABLISHMENT OF LIQUIDATION ACCOUNT 18

21. VOTING RIGHTS OF STOCKHOLDERS 19

22. RESTRICTIONS ON RESALE OR SUBSEQUENT DISPOSITION 19

23. REQUIREMENTS FOR STOCK PURCHASES BY DIRECTORS AND OFFICERS FOLLOWING THE
 CONVERSION 20

24. TRANSFER OF DEPOSIT ACCOUNTS 20

25. REGISTRATION AND MARKETING 20

26. TAX RULINGS OR OPINIONS 21

27. STOCK BENEFIT PLANS AND EMPLOYMENT AGREEMENTS 21

28. RESTRICTIONS ON ACQUISITION OF BANK AND HOLDING COMPANY 21

29. PAYMENT OF DIVIDENDS AND REPURCHASE OF STOCK 22

30. CONSUMMATION OF CONVERSION AND EFFECTIVE DATE 23

31. EXPENSES OF CONVERSION 23

32. AMENDMENT OR TERMINATION OF PLAN 23

33. CONDITIONS TO CONVERSION 23

34. INTERPRETATION 23

**PLAN OF CONVERSION OF<br> PIONEER FEDERAL SAVINGS AND LOAN ASSOCIATION**

**1.** **INTRODUCTION** 

This Plan of Conversion (the "Plan") provides for the conversion of Pioneer Federal Savings and Loan Association, a Montana state-chartered savings and loan association (the "S&L"), into the capital stock form of organization. The Plan calls for the formation of a shell bank, and a merger by and between S&L and the shell bank, due to Montana Code not authorizing a stock form of savings association. A new stock holding company (the "Holding Company") will be established as part of the Conversion and will issue Common Stock in connection with the Conversion. The purpose of the Conversion is to convert S&L to a capital stock form bank and to raise capital in the Offering. The Holding Company will offer its Common Stock in the Offering upon the terms and conditions set forth in this Plan. The subscription rights granted to Participants in the Subscription Offering are set forth in Sections 8 through 11 hereof. All sales of Common Stock in the Direct Community Offering, the Syndicated Community Offering or the Firm Commitment Underwritten Offering will be at the sole discretion of the Boards of Directors of S&L and the Holding Company. The Conversion will have no impact on depositors, borrowers or other customers of S&L (other than as to voting and liquidation rights as set forth in this Plan). After the Conversion, S&L's insured deposits will continue to be insured by the FDIC to the fullest extent provided by applicable law.

In furtherance of S&L's commitment to its community, the Plan provides for continuing contributions to the Foundation in the ordinary course of business, using Holding Company's cash and subject to regulatory limitations. The continued and ordinary course funding of S&L's current Foundation is intended to enhance S&L's existing community reinvestment activities by allowing S&L's local communities to share in the expected growth and profitability of the Holding Company and the converted S&L over the long term.

This Plan has been approved by at least two-thirds of the Board of Directors of S&L. This Plan must be approved by a majority of the total number of votes entitled to be cast by Voting Members of S&L at a Meeting of Members to be called for that purpose. The Bank Regulators must approve this Plan and the transactions contemplated by it before it is presented to Voting Members for their approval. In addition, the Holding Company will make any and all filings in a timely manner with the Federal Reserve and the SEC to obtain any requisite regulatory approvals to complete the Conversion.

**2.** **DEFINITIONS** 

For the purposes of this Plan, the following terms have the following respective meanings:

**Account Holder** - Any Person holding a Deposit Account in S&L.

**Acting in Concert** - The term Acting in Concert means (i) knowing participation in a joint activity or interdependent conscious parallel action towards a common goal whether or not pursuant to an express agreement; or (ii) a combination or pooling of voting or other interests in the securities of an issuer for a common purpose pursuant to any contract, understanding, relationship, agreement or other arrangement, whether written or otherwise. A person or company that acts in concert with another person or company ("other party") shall also be deemed to be acting in concert with any person or company that is also acting in concert with that other party, except that any Tax-Qualified Employee Stock Benefit Plan will not be deemed to be acting in concert with its trustee or a Person who serves in a similar capacity solely for the purpose of determining whether stock held by the trustee and stock held by the plan will be aggregated.

**Affiliate** - When applied to a specified Person, includes any Person that directly or indirectly, through one or more intermediaries, controls, is controlled by, or is under common control with, such specified Person.

**Appraised Value Range** - The range of the estimated consolidated pro forma market value of the Holding Company, which shall also be equal to the estimated pro forma market value of the total number of Subscription Shares to be issued in the Conversion, as determined by the Independent Appraiser before the Subscription Offering and as it may be amended from time to time thereafter. The maximum and minimum of the Appraised Value Range may vary as much as 15% above and 15% below, respectively, the midpoint of the Appraised Value Range. The maximum of the Appraised Value Range may be increased by up to 15% after the commencement of the Subscription Offering to reflect changes in market or financial conditions or demand for the Common Stock.

**Associate** - When used to indicate a relationship with any Person, means (i) any corporation or organization (other than the Holding Company, S&L or a majority-owned subsidiary of S&L) if the Person is a senior officer or partner or beneficially owns, directly or indirectly, 10% or more of any class of equity securities of the corporation or organization, (ii) any trust or other estate, if the Person has a substantial beneficial interest in the trust or estate or is a trustee or fiduciary of the trust or estate, except that for the purposes of this Plan relating to subscriptions in the Offering and the sale of Subscription Shares following the Conversion, a Person who has a substantial beneficial interest in any Non-Tax-Qualified Employee Stock Benefit Plan or any Tax-Qualified Employee Stock Benefit Plan, or who is a trustee or fiduciary of such plan, is not an associate of such plan, and except that for purposes of aggregating total shares that may be held by Officers and Directors, the term "Associate" does not include any Tax-Qualified Employee Stock Benefit Plan, and (iii) any Person who is related by blood or marriage to such Person and who (A) lives in the same home as such Person or (B) is a Director or Officer of S&L, the Holding Company or a subsidiary of S&L or the Holding Company.

**Bank Regulators** - The FDIC, the MDOB and, where applicable and the context requires, the Federal Reserve.

**Code** - The Internal Revenue Code of 1986, as amended.

**Common Stock** - The common stock, par value $0.01 per share, of the Holding Company.

**Local Community** - Beaverhead and Powell Counties in Montana.

**Direct Community Offering** - The offering for sale directly by the Holding Company to (a) the Local Community and then to (b) the general public of Subscription Shares not subscribed for in the Subscription Offering. The Direct Community Offering may occur concurrently with the Subscription Offering and any Syndicated Community Offering, or upon conclusion of the Subscription Offering.

**Control** - (including the terms "controlling," "controlled by," and "under common control with") means the direct or indirect power to direct or exercise a controlling influence over the management or policies of a Person, whether through the ownership of voting securities, by contract or otherwise as described in 12 C.F.R. §5.50.

**Conversion** - The conversion of S&L to stock form pursuant to this Plan, and all steps incident or necessary thereto including the Offering, the formation of the Shell Bank, and the Merger.

**Conversion Applications** - Applications for approval to effect the Conversion (including but not limited to the Plan, the Conversion, the formation of a Shell Bank, the Merger, and the formation of a Holding Company), in such forms as may be prescribed by the FDIC, MDOB, and the Federal Reserve, which S&L will file with the FDIC, MDOB, and the Federal Reserve, respectively.

**Deposit Account** - Any withdrawable account, including, without limitation, savings accounts, time accounts, demand accounts, NOW accounts, money market accounts, certificate accounts and passbook accounts.

**Director** – A member of the Board of Directors of S&L, Shell Bank, or the Holding Company, as appropriate in the context.

**Eligible Account Holder** - Any Person holding a Qualifying Deposit as of the close of business on the Eligibility Record Date, for purposes of determining subscription rights and establishing subaccount balances in the Liquidation Account.

**Eligibility Record Date** - The date for determining Eligible Account Holders of S&L, which is June 30, 2024.

**Employees** - All Persons who are employed by S&L or the Holding Company.

**Employee Plans** -Any one or more Tax-Qualified Employee Stock Benefit Plans of Shell Bank or the Holding Company, including any ESOP and 40l(k) Plan.

**ESOP**- Shell Bank's Employee Stock Ownership Plan and related trust.

**FDIC** - The Federal Deposit Insurance Corporation.

**Federal Reserve** -The Board of Governors of the Federal Reserve System, including the Federal Reserve Bank of Minneapolis.

**Firm Commitment Underwritten Offering** - The offering, at the sole discretion of the Holding Company, of Subscription Shares not subscribed for in the Subscription Offering and any Direct Community Offering, to members of the general public through one or more underwriters. A Firm Commitment Underwritten Offering may occur following the Subscription Offering and the Direct Community Offering as an alternative to a Syndicated Community Offering.

**Foundation**: The charitable foundation, Pioneer Federal Community Foundation, Inc. which is a qualified tax-exempt organization under Section 501(c)(3) of the Code and may receive cash in connection with the Conversion.

**Holding Company** - The corporation formed for the purpose of acquiring all of the outstanding shares of capital stock of Shell Bank to be issued in connection with the Conversion, which shall be incorporated in the State of Maryland. Shares of Common Stock of the Holding Company will be issued in the Conversion to Participants, and possibly others, in the Offering.

**Holding Company Application** - The application on such form as may be prescribed by the Federal Reserve, which will be filed by the Holding Company with the Federal Reserve in connection with the Conversion and the formation of the Holding Company.

**Independent Appraiser** - The independent appraiser retained by the Holding Company and S&L to prepare an appraisal of the proforma market value of the Subscription Shares.

**Liquidation Account** - The account established by S&L and Shell Bank, representing the liquidation interests received by Eligible Account Holders and Supplemental Eligible Account Holders in connection with the Conversion in exchange for their interests in S&L immediately before the Conversion.

**MDOB** - The Montana Division of Banking and Financial Institutions, including the Commissioner of the Division of Banking and Financial Institutions.

**Meeting of Members** - The special meeting or annual meeting of Voting Members, and any adjournments thereof, held to consider and vote upon this Plan.

**Member** - Any Person that qualifies as a member of S&L pursuant to its articles of incorporation, constitution and bylaws.

**Merger** – The merger by and between S&L and Shell Bank, whereby Shell Bank shall survive and operate in perpetuity as a stock bank pursuant to Title 32, Chapter 1 of the Montana Code.

**Offering** - The offering, sale and issuance, pursuant to this Plan, of Common Stock in the Subscription Offering, Direct Community Offering, Syndicated Community Offering or Firm Commitment Underwritten Offering, as the case may be.

**Offering Range** - The range of the number of shares of Common Stock offered for sale in the Offering. The Offering Range shall equal the quotient of the Appraised Value Range divided by the Subscription Price.

**Officer** - The chief executive officer, president, any vice president (but not an assistant vice president, second vice president, or other vice president having authority similar to an assistant or second vice president), the secretary, the treasurer, the comptroller, and any other person performing similar functions with respect to any organization whether incorporated or unincorporated. The term Officer also includes the Chairman of the Board of Directors if the Chairman is authorized by the articles of incorporation, constitution or bylaws of the organization to participate in its operating management or if the Chairman in fact participates in such management.

**Order Form** - Any form (together with any cover letter and acknowledgment) sent to any Participant or other Person containing, among other things, a description of the alternatives available to such Person under this Plan and by which any such Person may make elections regarding subscriptions for Subscription Shares.

**Other Member** - Any Member as of the close of business on the Voting Record Date who is not an Eligible Account Holder or a Supplemental Eligible Account Holder.

**Participant** - Any Eligible Account Holder, Employee Plan, Supplemental Eligible Account Holder or Other Member.

**Person** - An individual, a corporation, a partnership, an association, a joint-stock company, a limited liability company, a trust, an unincorporated organization, or a government or political subdivision of a government.

**Plan** - This Plan of Conversion, as it exists on the date hereof and as it may hereafter be amended in accordance with its terms.

**Prospectus** - The one or more documents used in offering for sale the Subscription Shares.

**Qualifying Deposit** - The aggregate balance of all Deposit Accounts in S&L of (i) an Eligible Account Holder as of the close of business on the Eligibility Record Date, provided the aggregate balance is not less than $50.00, or (ii) a Supplemental Eligible Account Holder as of the close of business on the Supplemental Eligibility Record Date, provided the aggregate balance is not less than $50.00.

**Resident** - Any Person who occupies a dwelling within the Local Community, has a present intent to remain within the Local Community for a period of time, and manifests the genuineness of that intent by establishing an ongoing physical presence within the Local Community together with an indication that such presence within the Local Community is something other than merely transitory in nature. For a corporation or other business entity to be a Resident, the principal place of business or headquarters of such entity must be in the Local Community. To the extent a Person is a personal benefit plan, the circumstances of the beneficiary shall apply with respect to this definition. In the case of all other benefit plans, circumstances of the trustee shall be examined for purposes of this definition. S&L may utilize deposit or loan records or such other evidence provided to it to make a determination as to whether a Person is a resident of the Local Community. In all cases, however, such a determination shall be in the sole discretion of S&L. A Person must be a "Resident" for purposes of determining whether such Person "resides" in the Local Community as such term is used in this Plan.

**S&L** - Pioneer Federal Savings and Loan Association, Deer Lodge, Montana.

**SEC** - The U.S. Securities and Exchange Commission.

**Shell Bank** – The to-be-formed stock-form interim bank, formed under Montana Code, Chapter 31, Title 1, Section 246 and its implementing regulations. Such Shell Bank shall be named "Pioneer State Bank" and will survive the Merger.

**Subscription Offering** - The offering of Subscription Shares for sale to Participants.

**Subscription Price** - The price per Subscription Share to be paid by Participants and others in the Offering. The Subscription Price will be determined by the Board of Directors of the Holding Company and fixed before the commencement of the Subscription Offering. The Subscription Price shall be between $5.00 per share and $50.00 per share.

**Subscription Shares** - Shares of Common Stock offered for sale in the Offering.

**Supplemental Eligible Account Holder** - Any Person, other than Directors and Officers of S&L and the Holding Company and their Associates (unless the applicable Bank Regulators grant a waiver permitting a Director or Officer to be included), holding a Qualifying Deposit as of the close of business on the Supplemental Eligibility Record Date, who is not an Eligible Account Holder.

**Supplemental Eligibility Record Date** - The date for determining Supplemental Eligible Account Holders, which shall be the last day of the calendar quarter preceding approval of the Conversion by the Bank Regulators. The Supplemental Eligibility Record Date will only occur if Bank Regulators have not approved the Conversion within 15 months after the Eligibility Record Date.

**Syndicated Community Offering** - The offering, at the sole discretion of the Holding Company, of Subscription Shares not subscribed for in the Subscription Offering and the Direct Community Offering, to members of the general public through a syndicate of broker-dealers. The Syndicated Community Offering may occur concurrently with the Subscription Offering and any Direct Community Offering, or upon conclusion of the Subscription Offering and any Direct Community Offering.

**Tax-Qualified Employee Stock Benefit Plan** - Any defined benefit plan or defined contribution plan, such as an employee stock ownership plan, stock bonus plan, profit-sharing plan or other plan, which, with its related trust, meets the requirements to be "qualified" under Section 401 of the Code. Shell Bank may make scheduled discretionary contributions to a tax-qualified employee stock benefit plan, provided such contributions do not cause Shell Bank to fail to meet its regulatory capital requirements. A "Non-Tax-Qualified Employee Stock Benefit Plan" is any defined benefit plan or defined contribution plan that is not so qualified.

**Voting Member** - Any Person who at the close of business on the Voting Record Date is entitled to vote as a Member of S&L pursuant to its articles of incorporation, constitution and bylaws.

**Voting Record Date** - The date fixed by the Board of Directors of S&L for determining eligibility to vote at the Meeting of Members.

**3.** **PROCEDURES FOR CONVERSION** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. After approval of this Plan by S&L's Board of Directors, this Plan and the transactions contemplated hereby, together with all other requisite material, shall be submitted to the Bank Regulators for approval. Notice of the adoption of this Plan by S&L's Board of Directors shall be published in a newspaper having general circulation in each community in which an office of S&L is located, and copies of this Plan will be made available at each office of S&L for inspection by Members. S&L also shall publish any required notices of the filing of the Conversion Applications with the FDIC and MDOB and of the filing of the Holding Company Application with the Federal Reserve.

Promptly following approval by the Bank Regulators, this Plan and the transactions contemplated by it will be submitted to a vote of the Voting Members at the Meeting of Members. S&L will mail to all Voting Members, at their address appearing on the records of S&L as of the close of business on the Voting Record Date, a proxy statement in either long or summary form describing this Plan. The Holding Company also will mail to all Participants a Prospectus and Order Form for the purchase of Subscription Shares, subject to other provisions of this Plan. In addition, all Participants will receive, or will be given the opportunity to request by telephone or by letter addressed to S&L's Secretary, a copy of this Plan. Upon approval of this Plan by a simple majority of the total number of votes entitled to be cast by Voting Members, the Holding Company and S&L will take all other necessary steps pursuant to applicable laws and regulations to consummate the Conversion, including undertaking the Merger. The Conversion must be completed within 24 months of the approval of this Plan by Voting Members, unless a longer time period is permitted by governing laws and regulations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. The period for the Subscription Offering will be not less than 20 days nor more than 45 days from the date that Participants are first mailed a Prospectus and Order Form, unless extended. Any shares of Common Stock for which subscriptions have not been received in the Subscription Offering may be issued in a Direct Community Offering, a Syndicated Community Offering or a Firm Commitment Underwritten Offering, or in any other manner permitted by the Bank Regulators and the SEC. All sales of shares of Common Stock must be completed within 45 days after the last day of the Subscription Offering, unless the offering period is extended by the Holding Company with the approval of the Bank Regulators. No single extension of more than 90 days will be granted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. The Conversion will be effected as follows, or in any other manner that is consistent with the purposes of this Plan and applicable laws and regulations. Each of the steps set forth below shall be deemed to occur in such order as is necessary to consummate the Conversion pursuant to this Plan, the intent of the Board of Directors of the Holding Company and the Board of Directors of S&L (and where, appropriate, the Shell Bank), and applicable federal and state laws and regulations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) S&L will incorporate a company pursuant to the laws of the State of Maryland, with such company intended
to seek approval to become a single-bank holding company registered under the Bank Holding Company Act of 1956, as amended;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) S&L will organize the Shell Bank, including capitalizing such Shell Bank with $5,000.00 from S&L's
surplus account;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) S&L will merge with and into Shell Bank, with Shell Bank surviving the Merger and the resulting bank
being named "Pioneer State Bank";

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) S&L will surrender its charter, as part of the Merger, to MDOB;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) The Holding Company will purchase all of the capital stock issued by Shell Bank in connection with its conversion from mutual to stock form, for at least
50% of the net proceeds of the Offering; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6) The Holding Company will issue the Common Stock sold in the Offering as provided in this Plan. The Holding
Company shall have registered the issuance of the Subscription Shares with the SEC and any appropriate state securities authorities.

Approval of this Plan by Voting Members shall constitute approval of each of the transactions necessary to implement this Plan, including the adoption of Shell Bank's articles of incorporation and bylaws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D. Upon completion of all steps of the Conversion, the separate legal existence of S&L shall terminate and Shell Bank shall continue as the banking entity; all property of S&L, including its right, title and interest in and to all property of whatever kind and nature, whether real, personal, or mixed, and things, and choses in action, and every right, privilege, interest and asset of every conceivable value or benefit then existing or pertaining to it, or which would inure to it, immediately by operation of law and without the necessity of any conveyance or transfer and without any further act or deed shall vest in Shell Bank. Shell Bank shall have, hold, and enjoy the same in its own right as fully and to the same extent as the same was possessed, held and enjoyed by S&L. Shell Bank, at the time and the taking effect of the Conversion, shall continue to have and succeed to all the rights, obligations and relations of S&L. All pending actions and other judicial or administrative proceedings to which S&L was a party shall not be discontinued by reason of the Conversion, but may be prosecuted to final judgment or order in the same manner as if the Conversion had not been made, and Shell Bank may continue the actions in its name notwithstanding the Conversion. Upon completion of the Conversion, each Person having a Deposit Account at S&L before the Conversion will continue to have a Deposit Account at Shell Bank, without further payment therefor, in the same amount and subject to the same terms and conditions (except for voting and liquidation rights) as in effect before the Conversion. All of S&L's insured Deposit Accounts will continue to be insured by the FDIC to the maximum extent provided by applicable law and regulation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;E. The home office and the branch offices of S&L shall be unaffected by the Conversion. The executive offices of the Holding Company shall be located at the main office of S&L prior to the Conversion (Shell Bank after the Conversion).

**4.** **APPLICATIONS AND APPROVALS** 

The Boards of Directors of the Holding Company and S&L (and, where appropriate, Shell Bank) will take all necessary steps to convert S&L to stock form, form the Holding Company, and complete the Merger and Conversion. S&L shall file the Conversion Applications with the FDIC and the MDOB, and the Holding Company shall file the Holding Company Application with the Federal Reserve and a registration statement with the SEC. S&L and Holding Company intend to make any additional filings necessary to obtain all approvals required to complete the Merger and the Conversion.

**5.** **SALE OF SUBSCRIPTION SHARES** 

The Subscription Shares will be offered for sale simultaneously in the Subscription Offering to the Participants in the respective priorities set forth in this Plan. The Subscription Offering may begin as early as the mailing of the Prospectus and the Proxy Statement for the Meeting of Members. The Common Stock will not be insured by the FDIC or any government agency.

S&L will not extend credit to any Person to purchase shares of Common Stock.

Any shares of Common Stock for which subscriptions have not been received in the Subscription Offering may be issued in the Direct Community Offering. The Subscription Offering may begin before the Meeting of Members and, in that event, the Direct Community Offering also may begin before the Meeting of Members. The sale of Common Stock offered for sale before the Meeting of Members, however, is subject to the approval of this Plan by Voting Members.

If feasible, any shares of Common Stock remaining available for sale after the Subscription Offering and the Direct Community Offering, if the latter is conducted, will be sold in a Syndicated Community Offering or a Firm Commitment Underwritten Offering, or in any other manner approved by the Bank Regulators that will achieve the widest distribution of the Common Stock. The issuance of Common Stock in the Subscription Offering and in any Direct Community Offering will be consummated simultaneously on the date of the sale of Common Stock in any Syndicated Community Offering or Firm Commitment Underwritten Offering, and only if the required minimum number of shares of Common Stock has been issued.

**6.** **PURCHASE PRICE AND NUMBER OF SUBSCRIPTION SHARES** 

The total number of shares, or range of number, of Subscription Shares to be offered for sale in the Offering will be determined jointly by the Boards of Directors of S&L and the Holding Company immediately before the commencement of the Subscription Offering, and will be based on the Appraised Value Range and the Subscription Price. The Offering Range will equal the quotient of the Appraised Value Range divided by the Subscription Price. The estimated pro forma consolidated market value of the Holding Company will be subject to adjustment within the Appraised Value Range if necessitated by market or financial conditions, with the receipt of any required approvals of the Bank Regulators, and the maximum of the Appraised Value Range may be increased by up to 15% after the commencement of the Subscription Offering to reflect changes in market and financial conditions or demand for the shares.

If the product of the Subscription Price multiplied by the number of shares of Common Stock to be sold in the Offering is below the minimum of the Appraised Value Range, or materially above the maximum of the Appraised Value Range, a resolicitation of subscribers may be required; *provided*, that up to a 15% increase above the maximum of the Appraised Value Range shall be deemed not material and thus shall not require a resolicitation. Any such resolicitation shall be effected in such manner and within such time as S&L and the Holding Company shall establish; *provided*, that all required regulatory approvals are obtained.

Notwithstanding the foregoing, Subscription Shares will not be issued unless, before the consummation of the Offering, the Independent Appraiser confirms to S&L, the Holding Company and the Bank Regulators, that, to the best knowledge of the Independent Appraiser, nothing of a material nature has occurred which, taking into account all relevant factors, would cause the Independent Appraiser to conclude that the number of shares of Common Stock to be sold in the Offering multiplied by the Subscription Price is incompatible with its estimate of the aggregate consolidated proforma market value of the Holding Company. If such confirmation is not received, the Holding Company may cancel the Offering, extend the Offering and establish a new Subscription Price and/or Appraised Value Range, hold a new Offering, or take such other action as the Bank Regulators may permit.

The Common Stock to be issued in the Offering shall be fully paid and non-assessable.

**7.** **RETENTION OF OFFERING PROCEEDS BY THE HOLDING COMPANY** 

The Holding Company may retain up to 50% of the net proceeds of the Offering. The Offering proceeds will provide additional capital to the Holding Company and Shell Bank for future growth of Shell Bank's assets, products and services in a highly competitive and regulated financial services environment, and might facilitate expansion through acquisitions of financial service organizations, diversification into other related businesses and for other business and investment purposes, including the possible payment of dividends and possible future repurchases of the Common Stock, as permitted by applicable federal and state regulations and policy. Following the Conversion, Shell Bank may distribute additional capital to the Holding Company from time to time, subject to applicable regulations governing capital distributions of banks, generally.

**8.** **SUBSCRIPTION RIGHTS OF ELIGIBLE ACCOUNT HOLDERS (FIRST PRIORITY)** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. Each Eligible Account Holder shall have nontransferable subscription rights to subscribe for in the Subscription Offering up to the greater of 30,000 shares ($300,000) of Common Stock, 0.10% of the total number of shares of Common Stock issued in the Offering, or fifteen times the product (rounded down to the next whole number) obtained by multiplying the number of Subscription Shares offered in the Offering by a fraction of which the numerator is the amount of the Eligible Account Holder's Qualifying Deposit and the denominator is the total amount of Qualifying Deposits of all Eligible Account Holders, in each case on the Eligibility Record Date, subject to the provisions of Section 14.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. If Eligible Account Holders exercise subscription rights for a number of Subscription Shares in excess of the total number of such shares eligible for subscription, the Subscription Shares shall be allocated among the subscribing Eligible Account Holders so as to permit each subscribing Eligible Account Holder to purchase a number of shares sufficient to make their total allocation of Subscription Shares equal to the lesser of 100 shares or the number of shares for which such Eligible Account Holder has subscribed. Any remaining shares will be allocated among the subscribing Eligible Account Holders whose subscriptions remain unsatisfied in the proportion that the amount of the Qualifying Deposit of each Eligible Account Holder whose subscription remains unsatisfied bears to the total amount of the Qualifying Deposits of all Eligible Account Holders whose subscriptions remain unsatisfied. If the amount so allocated exceeds the amount subscribed for by any one or more Eligible Account Holders, the excess shall be reallocated (one or more times as necessary) among those Eligible Account Holders whose subscriptions are still not fully satisfied on the same principle until all available shares have been allocated.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. Subscription rights as Eligible Account Holders received by Directors and Officers and their Associates that are based on increased deposits made by such persons during the 12 months preceding the Eligibility Record Date shall be subordinated to the subscription rights of all other Eligible Account Holders, except as permitted by the Bank Regulators.

**9.** **SUBSCRIPTION RIGHTS OF EMPLOYEE PLANS (SECOND PRIORITY)** 

The Employee Plans of the Holding Company and Shell Bank shall have subscription rights to purchase in the aggregate up to 8.0% of the shares of Common Stock issued and outstanding as of the consummation of the Conversion, including any Subscription Shares to be issued as a result of an increase in the maximum of the Offering Range after commencement of the Subscription Offering and before the completion of the Conversion. Consistent with applicable laws and regulations and practices and policies, the Employee Plans may use funds contributed by the Holding Company or Shell Bank and/or borrowed from an independent financial institution to exercise such subscription rights, and the Holding Company and Shell Bank may make scheduled discretionary contributions thereto; *provided*, that such contributions do not cause the Holding Company or Shell Bank to fail to meet any applicable minimum regulatory capital requirements. The Employee Plans shall not be deemed to be Associates or Affiliates of or Persons Acting in Concert with any Director or Officer of the Holding Company or Shell Bank. Alternatively, if permitted by the Bank Regulators, the Employee Plans may purchase all or a portion of such shares in the open market after the Conversion.

**10.** **SUBSCRIPTION RIGHTS OF SUPPLEMENTAL ELIGIBLE ACCOUNT HOLDERS (THIRD PRIORITY)** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. Each Supplemental Eligible Account Holder shall have nontransferable subscription rights to subscribe for in the Subscription Offering up to the greater of 30,000 shares ($300,000), 0.10% of the total number of shares of Common Stock issued in the Offering, or fifteen times the product (rounded down to the next whole number) obtained by multiplying the number of Subscription Shares offered in the Offering by a fraction of which the numerator is the amount of the Supplemental Eligible Account Holder's Qualifying Deposit and the denominator is the total amount of Qualifying Deposits of all Supplemental Eligible Account Holders, in each case on the Supplemental Eligibility Record Date, subject to the availability of sufficient shares after filling in full all subscription orders of the Eligible Account Holders and Employee Plans and to the purchase limitations specified in Section 14.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. If Supplemental Eligible Account Holders exercise subscription rights for a number of Subscription Shares in excess of the total number of such shares eligible for subscription, the Subscription Shares shall be allocated among the subscribing Supplemental Eligible Account Holders so as to permit each such subscribing Supplemental Eligible Account Holder, to the extent possible, to purchase a number of shares sufficient to make their total allocation of Subscription Shares equal to the lesser of 100 shares or the number of shares for which each such Supplemental Eligible Account Holder has subscribed. Any remaining shares will be allocated among the subscribing Supplemental Eligible Account Holders whose subscriptions remain unsatisfied in the proportion that the amount of the Qualifying Deposit of each such Supplemental Eligible Account Holder bears to the total amount of the Qualifying Deposits of all Supplemental Eligible Account Holders whose subscriptions remain unsatisfied. If the amount so allocated exceeds the amount subscribed for by any one or more Supplemental Eligible Account Holders, the excess shall be reallocated (one or more times as necessary) among those Supplemental Eligible Account Holders whose subscriptions are still not fully satisfied on the same principle until all available shares have been allocated.

**11.** **SUBSCRIPTION RIGHTS OF OTHER MEMBERS (FOURTH PRIORITY)** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. Each Other Member shall have nontransferable subscription rights to subscribe for in the Subscription Offering up to the greater of 30,000 shares ($300,000) of Common Stock or 0.10% of the total number of shares of Common Stock issued in the Offering, subject to the availability of sufficient shares after filling in full all subscription orders of Eligible Account Holders, Employee Plans and Supplemental Eligible Account Holders and to the purchase limitations specified in Section 14.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. If Other Members subscribe for a number of Subscription Shares which, when added to the Subscription Shares subscribed for by the Eligible Account Holders, Employee Plans and Supplemental Eligible Account Holders, is in excess of the total number of Subscription Shares to be issued, the available shares will be allocated to Other Members so as to permit each such subscribing Other Member, to the extent possible, to purchase a number of shares sufficient to make their total allocation of Subscription Shares equal to the lesser of 100 shares or the number of shares for which each such Other Member has subscribed. Any remaining shares will be allocated among the subscribing Other Members whose subscriptions remain unsatisfied in the proportion that the amount of the subscription of each such Other Member bears to the total amount of the subscriptions of all Other Members whose subscriptions remain unsatisfied.

**12.** **DIRECT COMMUNITY OFFERING** 

If subscriptions are not received for all Subscription Shares offered for sale in the Subscription Offering, shares for which subscriptions have not been received may be offered for sale in the Direct Community Offering through a direct community marketing program that may use a broker, dealer, consultant or investment banking firm experienced and qualified in the sale of savings associations and bank/holding company securities. Such entities may be compensated on a fixed fee basis or on a commission basis, or a combination thereof. In the event orders for Common Stock in the Direct Community Offering exceed the number of shares available for sale, shares may be allocated (to the extent shares remain available) first to cover orders of natural persons (including trusts of natural persons) residing in the Local Community, and thereafter to satisfy orders of other members of the general public, so that each Person in such category of the Direct Community Offering may receive, to the extent possible, the lesser of 100 shares or the number of shares they ordered. In addition, orders received for shares in the Direct Community Offering from natural persons (including trusts of natural persons) residing in the Local Community will be filled up to a maximum of two percent (2%) of the shares sold in the Offering, and thereafter any remaining shares will be allocated to Persons in such category of the Direct Community Offering on an equal number of shares basis per order.

The Holding Company shall use its best efforts consistent with this Plan to distribute Common Stock sold in the Direct Community Offering in such a manner as to promote the widest distribution practicable of such stock. The Holding Company reserves the right to reject any or all orders, in whole or in part, that are received in the Direct Community Offering. Any Person may purchase up to 30,000 shares ($300,000) of Common Stock in the Direct Community Offering, subject to the purchase limitations specified in Section 14.

**13.** **SYNDICATED COMMUNITY OFFERING OR FIRM COMMITMENT UNDERWRITTEN OFFERING** 

If feasible, the Board of Directors may determine to offer Subscription Shares not otherwise sold in the Subscription Offering or, as the case might be, the Direct Community Offering, in a Syndicated Community Offering, subject to such terms, conditions and procedures as may be determined by the Holding Company, in a manner that will achieve the widest distribution of the Common Stock, subject to the right of the Holding Company to accept or reject in whole or in part any orders in the Syndicated Community Offering. In the Syndicated Community Offering, any Person may purchase up to 30,000 shares ($300,000) of Common Stock, subject to the purchase limitations specified in Section 14. Unless otherwise permitted by the Bank Regulators, orders received for shares in a Syndicated Community Offering will first be filled up to a maximum of two percent (2%) of the shares sold in the Offering, and thereafter any remaining shares will be allocated on an equal number of shares basis per order. Provided that the Subscription Offering already has begun, the Holding Company may begin the Syndicated Community Offering at any time (including as soon as practicable after the termination of the Subscription Offering and any Direct Community Offering); *further provided*, that the completion of the offer and sale of the Common Stock will be conditioned upon the approval of this Plan by Voting Members.

Alternatively, if feasible, the Board of Directors may determine to offer Subscription Shares not otherwise sold in the Subscription Offering and any Direct Community Offering for sale in a Firm Commitment Underwritten Offering subject to such terms, conditions and procedures as may be determined by the Holding Company, and subject to the right of the Holding Company to accept or reject in whole or in part any orders in the Firm Commitment Underwritten Offering. Provided that the Subscription Offering has begun, the Holding Company may begin the Firm Commitment Underwritten Offering at any time.

If, for any reason, a Syndicated Community Offering or Firm Commitment Underwritten Offering of shares of Common Stock not otherwise sold in the Subscription Offering and Direct Community Offering cannot be effected, or if any insignificant residue of shares of Common Stock is not sold in the Subscription Offering and Direct Community Offering or in a Syndicated Community Offering or Firm Commitment Underwritten Offering, the Holding Company, if possible, will make other arrangements for the disposition of unsubscribed shares aggregating at least the minimum of the Offering Range. Such other purchase arrangements will be subject to receipt of any required approval of the Bank Regulators.

**14.** **LIMITATIONS ON PURCHASES** 

The following limitations shall apply to all purchases and issuances of shares of Subscription Shares:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. The maximum number of shares of Common Stock that may be subscribed for or purchased in all categories in the Offering by any Person or Participant together with any Associate or group of Persons Acting in Concert ("In Concert Group") is the lesser of 60,000 shares ($600,000) or 5% of the Subscription Shares sold, except that the Employee Plans may subscribe for up to 10% of the Subscription Shares sold (including shares issued in the event of an increase in the maximum of the Offering Range of 15%). If the number of shares of Common Stock otherwise allocable pursuant to Sections 8 through 13, inclusive, would be in excess of the maximum number of shares permitted to be allocated to any In Concert Group as set forth in this section, the number of shares of Common Stock allocated to each Person that makes up such In Concert Group shall first be reduced to the lowest limitation applicable to each such Person and then the number of shares of Common Stock allocated to each such Person shall be reduced until the aggregate allocation to the In Concert Group complies with the limits of this Section 14. The method of reducing the allocation of each Person in any In Concert Group shall be determined by the Holding Company in its sole discretion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. The maximum number of shares of Common Stock that may be issued to or purchased in all categories of the Offering by Officers and Directors and their Associates in the aggregate, shall not exceed 33% of the shares of Common Stock sold in the Offering and contributed to the Foundation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. A minimum of 25 shares of Common Stock must be purchased by each Person purchasing shares in the Offering to the extent those shares are available; *provided*, *however*, that in the event the minimum number of shares of Common Stock purchased times the Subscription Price exceeds $500, then such minimum purchase requirement shall be reduced to such number of shares which when multiplied by the price per share shall not exceed $500, as determined by the Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D. Depending upon market or financial conditions, the Board of Directors of the Holding Company, with the receipt of any required approvals of the Bank Regulators and without further approval of Voting Members, may decrease or increase any of the purchase limitations in this Plan, provided that the maximum purchase limitations may not be increased to a percentage in excess of 5% of the shares sold in the Offering, except as provided below. If the Holding Company increases the maximum purchase limitation(s), the Holding Company is only required to resolicit Persons who subscribed for the maximum purchase amount in the Subscription Offering and who indicated a desire to be resolicited on the Order Form. In the event of such a resolicitation, the Holding Company shall have the right, in its sole discretion, to require such persons to supply immediately available funds for the purchase of additional shares of Common Stock. Such persons will be prohibited from paying with a personal check, but the Holding Company may allow payment by wire transfer. If a maximum purchase limitation is increased to 5.0% of the shares sold in the Offering, such limitation may be further increased to 9.99% of the shares of Common Stock sold in the Offering; *provided*, that orders for Common Stock exceeding 5.0% of the shares of Common Stock sold in the Offering shall not exceed in the aggregate 10.0% of the total shares of Common Stock sold in the Offering. The Board of Directors of the Holding Company, in its sole discretion, will determine whether to fill any requests to purchase additional Subscription Stock in the event that the purchase limitation is increased as set forth in this paragraph.

For purposes of this Section 14, (i) Directors, Officers and employees of S&L (and, where appropriate, the Shell Bank) and the Holding Company or any of their subsidiaries shall not be deemed to be Associates or a group affiliated with each other or otherwise Acting in Concert solely as a result of their capacities as such; (ii) shares purchased by Tax-Qualified Employee Stock Benefit Plans shall not be attributable to the individual trustees or beneficiaries of any such plan for purposes of determining compliance with the limitations set forth in paragraphs 14(A) and 14(B); and (iii) shares purchased by a Tax-Qualified Employee Stock Benefit Plan pursuant to instructions of an individual in an account in such plan in which the individual has the right to direct the investment, including any plan of Shell Bank qualified under Section 401(k) of the Code, shall be aggregated and included in that individual's purchases and not attributed to the Tax-Qualified Employee Stock Benefit Plan.

Each Person purchasing Common Stock in the Offering shall be deemed to have confirmed that such purchase does not conflict with the above purchase limitations contained in this Plan.

**15.** **PAYMENT FOR SUBSCRIPTION SHARES** 

All payments for Common Stock subscribed for in the Subscription Offering and Direct Community Offering must be delivered in full to S&L, the Holding Company or an agent of S&L or the Holding Company, as described in the Order Form, together with a properly completed and executed Order Form, on or before the expiration date of the Offering; *provided*, *however*, that if the Employee Plans subscribe for shares in the Subscription Offering, then the Employee Plans shall not be required to pay for the shares of Common Stock at the time they subscribe for them but rather may pay for such shares of Common Stock at the Subscription Price upon consummation of the Offering. Subscription funds will be held in a segregated account at S&L.

Except as set forth in Section 14(D), payment for Common Stock subscribed for in the Subscription Offering and any Direct Community Offering shall be made by cash, personal check, money order or bank draft. Alternatively, subscribers in the Subscription Offering and Direct Community Offering may pay for the shares for which they have subscribed by authorizing S&L on the Order Form to make a withdrawal from designated types of Deposit Accounts at S&L in an amount equal to the aggregate Subscription Price of such shares. Such authorized withdrawal shall be without penalty, if applicable to such account, as to premature withdrawal. If the authorized withdrawal is from a certificate account, and the remaining balance does not meet the applicable minimum balance requirement, the certificate shall be canceled at the time of withdrawal, without penalty, and the remaining balance will earn interest at then-prevailing passbook rate. Funds for which a withdrawal is authorized will remain in the subscriber's Deposit Account and will continue to earn interest therein, but may not be used or accessed by the subscriber during the Subscription Offering and Direct Community Offering. Thereafter, the withdrawal will be given effect only to the extent necessary to satisfy the subscription (to the extent it can be filled) at the Subscription Price per share. Interest, if any, will continue to be earned on any amounts authorized for withdrawal until such withdrawal is given effect. Interest on funds received by cash, personal check, bank draft or money order will be paid by S&L at not less than the then-prevailing passbook rate. Such interest will be paid from the date payment is processed by S&L until consummation or termination of the Offering. If for any reason the Offering is not consummated, all payments made by subscribers in the Subscription Offering and Direct Community Offering will be refunded to them with interest as calculated in this paragraph. In case of amounts authorized for withdrawal from Deposit Accounts, refunds will be made by canceling the authorization for withdrawal. S&L is prohibited by regulation from making any loans or granting any lines of credit for the purchase of stock in the Offering, and, therefore, will not do so.

**16.** **MANNER OF EXERCISING SUBSCRIPTION RIGHTS THROUGH ORDER FORMS** 

Order Forms will be distributed to the Eligible Account Holders, Employee Plans, Supplemental Eligible Account Holders and Other Members at their addresses appearing on the records of S&L as of the Voting Record Date for the purpose of subscribing for shares of Common Stock in the Subscription Offering and will be made available for use by those other Persons to whom a Prospectus is delivered as soon as practicable after (i) the registration statement prepared by the Holding Company and S&L has been declared effective by the SEC; (ii) the Bank Regulators have approved the Conversion and Conversion-related transactions; (iii) the Bank Regulators have approved the proxy statement to be provided to Voting Members; and (iv) S&L and Holding Company have been cleared to distribute the Prospectus and other offering materials.

Each Order Form will be preceded or accompanied by a Prospectus describing the Holding Company, S&L, Shell Bank, the Merger, the Common Stock, and the Offering. Each Order Form will contain, among other things, the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. A specified date by which all Order Forms must be received by S&L or the Holding Company or its agent, which date shall be at least 20 days but not more than 45 days following the date on which the Order Forms are mailed to Participants by the Holding Company, and which date will constitute the termination of the Subscription Offering unless extended;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. The Subscription Price per share for shares of Common Stock to be sold in the Offering;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. A description of the minimum and maximum number of Subscription Shares that may be subscribed for pursuant to the exercise of subscription rights or otherwise purchased in the Subscription Offering and Direct Community Offering;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D. Instructions as to how the recipient of the Order Form is to indicate thereon the number of Subscription Shares for which such person elects to subscribe and the available alternative methods of payment therefor;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;E. An acknowledgment that the recipient of the Order Form has received a final copy of the Prospectus before execution of the Order Form;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;F. A statement to the effect that all subscription rights are nontransferable, will be void at the end of the Subscription Offering, and can only be exercised by delivering to S&L or the Holding Company or its agent within the subscription period such properly completed and executed Order Form, together with payment in the full amount of the aggregate purchase price as specified in the Order Form for the shares of Common Stock for which the recipient elects to subscribe in the Subscription Offering (or by authorizing on the Order Form that S&L withdraw said amount from the subscriber's Deposit Account at S&L);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;G. A statement to the effect that the executed Order Form, once received by the Holding Company, may not be modified or amended by the subscriber without the consent of the Holding Company; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;H. Certain legends stating that subscription rights may not be transferred and that shares of the Common Stock are not deposits and are not insured or guaranteed by the federal government or the Federal Deposit Insurance Corporation, and a certification stating that the subscriber is purchasing the shares for their own account.

Notwithstanding the above, the Holding Company reserves the right in its sole discretion to accept or reject orders received on photocopied or facsimilied order forms.

**17.** **UNDELIVERED, DEFECTIVE OR LATE ORDER FORM; INSUFFICIENT PAYMENT** 

In the event Order Forms (a) are not delivered or are not timely delivered by the United States Postal Service, (b) are not received back by the Holding Company or its agent or are received by the Holding Company or its agent after the expiration date specified thereon, (c) are defectively filled out or executed, (d) are not accompanied by the full required payment, unless waived by the Holding Company, for the shares of Common Stock subscribed for (including cases in which deposit accounts from which withdrawals are authorized are insufficient to cover the amount of the required payment), or (e) are not mailed pursuant to a "no mail" order placed in effect by the account holder, the subscription rights of the Participant to whom such rights have been granted will lapse as though such Participant failed to return the completed Order Form within the time period specified thereon; *provided*, *however*, that the Holding Company may, but will not be required to, waive any immaterial irregularity on any Order Form or require the submission of a corrected Order Form or the remittance of full payment for subscribed shares by such date as the Holding Company may specify. The interpretation of the Holding Company of terms and conditions of this Plan and of the Order Forms will be final, subject to the authority of the Bank Regulators.

**18.** **RESIDENTS OF FOREIGN COUNTRIES AND CERTAIN STATES** 

The Holding Company will make reasonable efforts to comply with the securities laws of all States in the United States in which Persons entitled to subscribe for shares of Common Stock pursuant to this Plan reside. However, no such Person will be issued subscription rights or be permitted to purchase shares of Common Stock in the Subscription Offering if such Person resides in a foreign country; or in a State of the United States with respect to which any of the following apply: (A) a *de minimis* number of Persons otherwise eligible to subscribe for shares under this Plan reside in such state; (B) the issuance of subscription rights or the offer or sale of shares of Common Stock to such Persons would require the Holding Company under the securities laws of such state, to register as a broker, dealer, salesman or agent or to register or otherwise qualify its securities for sale in such state; and (C) such registration or qualification would be impracticable for reasons of cost or otherwise.

**19.** **CONTRIBUTION TO THE FOUNDATION** 

Following the Conversion, the Holding Company and Shell Bank intend to continue contributing cash in the ordinary course of business to the Foundation, in such amounts, subject to regulatory limits, as shall be approved by Shell Bank's Board of Directors. The continued annual contribution to the Foundation is intended to enhance Shell Bank's existing community reinvestment activities, and to share with the communities in which Shell Bank conducts business a part of Shell Bank's financial success as a community-minded financial institution. The contribution of cash to the Foundation may further this goal as it may enable the community to share in the growth and profitability of the Holding Company and Shell Bank over the long term.

The Foundation is dedicated to the promotion of charitable purposes, including community development, grants or donations to support housing assistance, not-for-profit community groups and other types of organizations or civic-minded projects. The Foundation currently distributes total grants to assist charitable organizations or to fund projects within its local community of approximately 4.5% of the average fair market value of Foundation assets each year, less certain expenses. In the future, the Holding Company or Shell Bank may purchase and contribute shares to the Foundation in order to serve the purposes for which it was formed.

The decision to contribute annually to the Foundation and to grant the Foundation Shares and/or cash will be at the sole discretion of S&L's Board of Directors.

**20.** **ESTABLISHMENT OF LIQUIDATION ACCOUNT** 

S&L shall establish, at the time of the Conversion, a Liquidation Account in an amount equal to S&L's total equity as reflected in the latest statement of financial condition contained in the final Prospectus used in the Offering. Following the Conversion, the Liquidation Account will be maintained by Shell Bank for the benefit of the Eligible Account Holders and Supplemental Eligible Account Holders who continue to maintain their Deposit Accounts at Shell Bank. Each Eligible Account Holder and Supplemental Eligible Account Holder shall, with respect to their Deposit Account, hold a related inchoate interest in a portion of the Liquidation Account balance, in relation to their Deposit Account balance at the Eligibility Record Date or Supplemental Eligibility Record Date, respectively, or to such balance as it may be subsequently reduced, as hereinafter provided.

In the unlikely event of a complete liquidation of Shell Bank (and only in such event), following all liquidation payments to creditors (including those to Account Holders to the extent of their Deposit Accounts) each Eligible Account Holder and Supplemental Eligible Account Holder shall be entitled to receive a liquidating distribution from the Liquidation Account, in the amount of the then-adjusted subaccount balance for their Deposit Account then held, before any liquidation distribution may be made to any holders of Shell Bank's capital stock. No merger, consolidation, purchase of bulk assets with assumption of Deposit Accounts and other liabilities, or similar transactions with an FDIC-insured institution, in which Shell Bank is not the surviving institution, shall be deemed to be a complete liquidation for this purpose. In such transactions, the Liquidation Account shall be assumed by the surviving institution.

The initial subaccount balance for a Deposit Account held by an Eligible Account Holder and Supplemental Eligible Account Holder shall be determined in accordance with 12 C.F.R. §192.460. Such initial subaccount balance shall not be increased, but shall be subject to downward adjustment as described in 12 C.F.R. §192.470. In the event of such downward adjustment, the subaccount balance shall not be subsequently increased, notwithstanding any subsequent increase in the deposit balance of the related Deposit Account. If any such Deposit Account is closed, the related subaccount shall be reduced to zero permanently.

The establishment and maintenance of the Liquidation Account shall not operate to restrict the use or application of any of the equity accounts of Shell Bank, except that Shell Bank shall not declare or pay a cash dividend on, or repurchase any of, its capital stock if the effect thereof would cause its equity to be reduced below the amount required for the Liquidation Account.

**21.** **VOTING RIGHTS OF STOCKHOLDERS** 

Following consummation of the Conversion, the holders of the voting capital stock of the Holding Company shall have the exclusive voting rights with respect to the Holding Company.

**22.** **RESTRICTIONS ON RESALE OR SUBSEQUENT DISPOSITION** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. All shares of Common Stock purchased by Directors or Officers of the Holding Company or S&L (or Shell Bank, as the context requires) in the Offering shall be subject to the restriction that, except as provided in this Section 22 or as may be approved by the Bank Regulators, no interest in such shares may be sold or otherwise disposed of for value for a period of one (1) year following the date of purchase in the Offering.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. The restriction on disposition of Subscription Shares set forth above in this Section 22 shall not apply to the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Any exchange of such shares in connection with a merger or acquisition involving Shell Bank or the Holding
Company, as the case may be, which has been approved by the appropriate Federal regulatory agency; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Any disposition of such shares following the death of the person to whom such shares were initially sold
under the terms of this Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. With respect to all Subscription Shares that are subject to restrictions on resale or subsequent disposition, each of the following provisions shall apply:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Each certificate representing shares restricted by this Section 22 shall bear a legend giving notice
of the restriction;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Instructions shall be issued to the stock transfer agent for the Holding Company not to recognize or effect
any transfer of any certificate or record of ownership of any such shares in violation of the restriction on transfer; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Any shares of capital stock of the Holding Company issued with respect to a stock dividend, stock split,
or otherwise with respect to ownership of outstanding Subscription Shares subject to the restriction on transfer hereunder shall be subject
to the same restriction as is applicable to such Subscription Shares.

**23.** **REQUIREMENTS FOR STOCK PURCHASES BY DIRECTORS AND OFFICERS FOLLOWING THE CONVERSION** 

For a period of three years from the date of consummation of the Conversion, no Officer, Director or their Associates shall purchase, without the prior written approval of the Bank Regulators, any outstanding shares of Common Stock except from a broker-dealer registered with the SEC. This provision shall not apply to negotiated transactions involving more than 1% of the outstanding shares of Common Stock, the exercise of any options pursuant to a stock option plan or purchases of Common Stock made by or held by any Tax-Qualified Employee Stock Benefit Plan or Non-Tax-Qualified Employee Stock Benefit Plan of Shell Bank or the Holding Company (including the Employee Plans) which may be attributable to any Officer or Director. As used herein, the term "negotiated transaction" means a transaction in which the securities are offered and the terms and arrangements relating to any sale are arrived at through direct communications between the seller or any person acting on its behalf and the purchaser or their investment representative. The term "investment representative" shall mean a professional investment advisor acting as agent for the purchaser and independent of the seller and not acting on behalf of the seller in connection with the transaction.

**24.** **TRANSFER OF DEPOSIT ACCOUNTS** 

Each person holding a Deposit Account at S&L at the time of Conversion shall retain an identical Deposit Account at Shell Bank following Conversion in the same amount and subject to the same terms and conditions (except as to voting and liquidation rights).

**25.** **REGISTRATION AND MARKETING** 

Within the time period required by applicable laws and regulations, the Holding Company will register the securities issued in connection with the Conversion pursuant to the Securities Exchange Act of 1934, as amended, and will not deregister such securities for a period of at least three (3) years thereafter, except that the requirement that registration be maintained for three years may be fulfilled by any successor to the Holding Company. In addition, the Holding Company will use its best efforts to encourage and assist a market-maker to establish and maintain a market for the Common Stock and to list those securities on a national or regional securities exchange.

**26.** **TAX RULINGS OR OPINIONS** 

Consummation of the Conversion is expressly conditioned upon prior receipt by S&L of either a ruling or an opinion of counsel with respect to federal tax laws, and either a ruling, an opinion of counsel, or a letter of advice from their tax advisor with respect to applicable state tax laws, to the effect that consummation of the transactions contemplated by the Conversion and this Plan will not result in a taxable reorganization under the provisions of the applicable codes or otherwise result in any adverse tax consequences to the Holding Company or S&L (or Shell Bank, as applicable), or to the account holders receiving subscription rights before or after the Conversion, except in each case to the extent, if any, that subscription rights are deemed to have value on the date such rights are issued.

**27.** **STOCK BENEFIT PLANS AND EMPLOYMENT AGREEMENTS** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. The Holding Company and Shell Bank are authorized to adopt Tax-Qualified Employee Stock Benefit Plans in connection with the Conversion, including without limitation, an ESOP. Existing and newly created Tax-Qualified Employee Stock Benefit Plans may purchase shares of Common Stock in the Offering, to the extent permitted by the terms of such benefit plans and this Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. The Holding Company and Shell Bank are authorized to enter into employment and other compensation agreements with their executive officers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. The Holding Company and Shell Bank are authorized to adopt stock option plans, restricted stock plans and other Non-Tax-Qualified Employee Stock Benefit Plans no sooner than six months after the completion of the Conversion and Offering, *provided*, that such stock plans conform to any applicable requirements of federal regulations, including 12 C.F.R. §192.500. The Holding Company intends to implement such stock plans after the completion of the Conversion and Offering, subject to any necessary stockholder approvals. 12 C.F.R. §192.500 includes provisions regarding plan size, size of grants, vesting requirements for grants, and stockholder approval requirements, which shall be disclosed in the Prospectus. It currently is anticipated that such plans will encompass up to four (4) percent of the number of shares issued in the Conversion given that S&L has, and will have following Conversion, in excess of ten percent (10%) tangible capital.

**28.** **RESTRICTIONS ON ACQUISITION OF BANK AND HOLDING COMPANY** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. For a period of three years from the date of consummation of the Conversion, no person, other than the Holding Company, may directly or indirectly offer to acquire or acquire the beneficial ownership of more than 10% of any class of an equity security of Shell Bank without the prior written consent of the Bank Regulators. Nothing in this Plan shall prohibit the Holding Company from repurchasing its shares in compliance with applicable regulations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. In connection with the Conversion, S&L will file, or cause to be filed, new articles of incorporation and bylaws of Shell Bank. Shell Bank's articles of incorporation and bylaws may contain approved anti-takeover provisions, such as a provision stipulating that no person, except the Holding Company, for a period of five years following the closing date of the Conversion, may directly or indirectly acquire or offer to acquire the beneficial ownership of more than 10% of any class of equity security of Shell Bank, without the prior written approval of the Bank Regulators. Shell Bank's articles of incorporation or bylaws may also provide that for a period of five years following the closing date of the Conversion, shares beneficially owned in violation of the above-described charter provision shall not be entitled to vote and shall not be voted by any person or counted as voting stock in connection with any matter submitted to stockholders for a vote. In addition, Shell Bank's articles of incorporation may also provide that special meetings of the stockholders relating to changes in control or amendment of the articles of incorporation or constitution may only be called by the Board of Directors, and shareholders shall not be permitted to cumulate their votes for the election of Directors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. The articles of incorporation of the Holding Company may contain a provision stipulating that in no event shall the record owners of any outstanding shares of Common Stock that are beneficially owned by a person who beneficially owns 10% or more of such outstanding shares be entitled or permitted to any vote with respect to any shares held in excess of 10%. In addition, the articles of incorporation and bylaws of the Holding Company may contain provisions that prohibit cumulative voting for the election of directors, provide for staggered terms for directors, limit the calling of special meetings, require supermajority shareholder votes to amend certain provisions of the articles of incorporation, allow the Board of Directors to issue preferred stock and increase the amount of authorized capital stock without shareholder approval, provide certain qualifications and restrictions for election as director, certain advance notice requirements for shareholder proposals and nominations, and a fair price provision for certain business combinations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D. For the purposes of this Section 28:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) The term "person" includes an individual, a firm, a corporation
or other entity;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) The term "offer" includes every offer to buy or acquire,
solicitation of an offer to sell, tender offer for, or request or invitation for tenders of, a security or interest in a security for
value;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) The term "acquire" includes every type of acquisition,
whether effected by purchase, exchange, operation of law or otherwise; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) The term "security" includes non-transferable subscription
rights issued pursuant to a plan of conversion as well as a "security" as defined in Section 2(a)(I) of
the Securities Act of 1933, as amended.

**29.** **PAYMENT OF DIVIDENDS AND REPURCHASE OF STOCK** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. The Holding Company shall comply with any applicable regulation in connection with the repurchase of any shares of its capital stock following consummation of the Conversion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. Shell Bank shall not declare or pay a cash dividend on, or repurchase any of, its capital stock if the effect thereof would cause its regulatory capital to be reduced below (i) the amount required for the Liquidation Account; or (ii) applicable federal or state minimum regulatory capital requirements.

**30.** **CONSUMMATION OF CONVERSION AND EFFECTIVE DATE** 

The effective date of the Conversion shall be the date of closing following: (i) the sale of all shares of the Common Stock after all requisite regulatory and Member approvals have been obtained; (ii) sufficient subscriptions and orders for Subscription Shares have been received; (iii) the Merger has been consummated; and (iv) all applicable waiting periods have expired. The closing of the sale of all shares of Common Stock sold in the Offering shall occur simultaneously on the effective date of the closing.

**31.** **EXPENSES OF CONVERSION** 

S&L (and, as applicable, Shell Bank) and the Holding Company may retain and pay for the services of legal, financial and other advisors to assist in connection with any or all aspects of the Conversion, including the Offering, and such parties shall use their best efforts to assure that such expenses are reasonable.

**32.** **AMENDMENT OR TERMINATION OF PLAN** 

If deemed necessary or desirable, this Plan may be substantively amended as a result of comments from the Bank Regulators or the SEC or otherwise at any time before the solicitation of proxies from Voting Members to vote on this Plan by the Board of Directors of S&L, and at any time thereafter by the Board of Directors of S&L (or, if applicable, Shell Bank) with the concurrence of the Bank Regulators. Any amendment to this Plan made after approval by Voting Members with the approval of the Bank Regulators shall not require further approval by Voting Members unless otherwise specifically required by the Bank Regulators. The Board of Directors of S&L may terminate this Plan at any time before the Meeting of Members to vote on this Plan, and at any time thereafter with the concurrence of the Bank Regulators.

By adopting this Plan, Voting Members of S&L authorize the Board of Directors of S&L to amend or terminate this Plan under the circumstances set forth in this Section 32.

**33.** **CONDITIONS TO CONVERSION** 

Consummation of the Conversion pursuant to this Plan is expressly conditioned upon the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. Prior receipt by S&L of rulings of the U.S. Internal Revenue Service and the state taxing authorities, or opinions of counsel or tax advisers as described in Section 25;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. The issuance of at least the minimum number of Subscription Shares offered for sale in the Offering;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. The Federal Reserve's approval of the Holding Company to be a single-bank holding company under the Bank Holding Company Act of 1956, as amended;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D. The Bank Regulators' approval of the formation of Shell Bank;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;E. The Bank Regulators' approve of the Merger; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;F. The completion of the Conversion within the time period specified in Section 3.

**34.** **INTERPRETATION** 

All interpretations of this Plan, and the application of its provisions to particular circumstances, by a majority of the Board of Directors of S&L, Shell Bank, or Holding Company, as applicable, shall be final, subject to the authority of the Bank Regulators.

Adopted: September 16, 2025

## Exhibit 3.1

**Exhibit 3.1**

**ARTICLES OF INCORPORATION<br> OF<br> PSB FINANCIAL, INC.**

Pursuant to the Maryland General Corporation Law ("MGCL"), the undersigned, being at least eighteen years of age, adopts these Articles of Incorporation of PSB Financial, Inc. (the "Corporation").

**Article I**

**Name**

The name of the Corporation is PSB Financial, Inc.

**Article II**

**Existence**

The period of existence shall be perpetual.

**Article III**

**Purpose**

The purpose of the Corporation is to act as a bank holding company and to engage in any other lawful activities authorized by the MGCL and the Financial Institutions Article of the Annotated Maryland Code.

**Article IV**

**Capital Stock**

The number of shares of capital stock which the Corporation shall have the authority to issue is as follows:

Five million (5,000,000) shares of common stock, par value of $0.01 per share; and

Five hundred thousand (500,000) shares of preferred stock, par value $0.01 per share.

Except to the extent required by governing law, rule or regulation, the shares of capital stock may be issued from time to time by the Board of Directors without further approval of the shareholders of the Corporation. The Corporation shall have the authority to purchase its capital stock out of funds lawfully available therefor, which funds shall include, without limitation, the Corporation's unreserved and unrestricted capital surplus. The Board of Directors, pursuant to a resolution approved by a majority of the Whole Board (rounded up to the nearest whole number), and without action by the stockholders, may amend these Articles to increase or decrease the aggregate number of shares of stock or the number of shares of stock of any class or series that the Corporation has authority to issue. For the purposes of these Articles, the term "Whole Board" shall mean the total number of directors that the Corporation would have if there were no vacancies on the Board of Directors at the time any such resolution is presented to the Board of Directors for adoption.

**Article V**

**Stock Rights**

The preferences, limitation, designation, and relative rights of each class or series of stock are:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. <u>Common Stock</u>. Except as provided in this Article V (or in any resolution or resolutions adopted by the Board of Directors pursuant hereto), the exclusive voting power shall be vested in the common stock, the holders thereof being entitled to one vote for each share of such common stock standing in the holder's name on the books of the Corporation. Subject to any rights and preferences of any class of stock having preference over the common stock, holders of common stock shall be entitled to such dividends as may be declared by the Board of Directors out of funds lawfully available therefore. Upon any liquidation, dissolution or winding up of the affairs of the Corporation, whether voluntary or involuntary, holders of common stock shall be entitled to receive pro rata the remaining assets of the Corporation after the holders of any class of stock having preference over the common stock have been paid in full any sums to which they may be entitled.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. <u>Preferred Stock</u>. The Board of Directors of the Corporation is authorized, to the full extent permitted under the MGCL and the provisions of this Paragraph B, to provide for the issuance of the preferred stock in series, each of such series to be distinctively designated, and to have such redemption rights, dividend rights, rights on dissolution or distribution of assets, conversion or exchange rights, voting powers, designations, preferences and relative participating, optional or other special rights, if any, and such qualifications, limitations or restrictions thereof as shall be provided by the Board of Directors of the Corporation consistent with the provisions of this Paragraph B. The number of authorized shares of the Preferred Stock may be increased or decreased (but not below the number of shares thereof then outstanding) by the affirmative vote of the majority of the Board of Directors, without a vote of the holders of the Common Stock or Preferred Stock, or of any series thereof, unless a vote of any such holders is required by law or pursuant to the terms of such Common Stock or Preferred Stock.

Before any dividends shall be paid or set apart for payment upon shares of common stock, the holders of each series of preferred stock shall be entitled to receive dividends at the rate (which may be fixed or variable) and at such times as specified in the particular series. The holders of shares of preferred stock shall have no rights to participate with the holders of shares of common stock in any distribution of dividends in excess of the preferential dividends, if any, fixed for such preferred stock.

In the event of any voluntary or involuntary liquidation, dissolution or winding up of the Corporation, the holders of shares of each series of preferred stock shall be entitled to receive out of the assets of the Corporation in money or money's worth the preferential amount, if any, specified in the particular series for each share at the time outstanding together with all accrued but unpaid dividends thereon, before any of such assets shall be paid or distributed to holders of common stock. The holders of preferred stock shall have no rights to participate with the holders of common stock in the assets of the Corporation available for distribution to shareholders in excess of the preferential amount, if any, fixed for such preferred stock.

The holders of preferred stock shall have only such voting rights as are fixed for shares of each series by the Board of Directors pursuant to this Paragraph B or are provided, to the extent applicable, by the MGCL.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. <u>Preemptive Rights</u>. Except for preemptive rights approved by the Board of Directors pursuant to a resolution approved by a majority of the directors then in office, no holder of the capital stock of the Corporation or series of stock or of options, warrants or other rights to purchase shares of any class or series of stock or of other securities of the Corporation shall have any preemptive right to purchase or subscribe for any unissued capital stock of any class or series, or any unissued bonds, certificates of indebtedness, debentures or other securities convertible into or exchangeable for capital stock of any class or series or carrying any right to purchase stock of any class or series.

**Article VI**

**Registered Office**

The address of the registered office of the Corporation is located at 7 St. Paul Street, Suite 820, Baltimore, Maryland 21202.

**Article VII**

**Registered Agent**

The name of the registered agent at such address is CSC-Lawyers Incorporating Service Company.

**Article VIII**

**Directors**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. <u>Directors Power</u>. The business and affairs of the Corporation shall be managed under the direction of the Board of Directors. All powers of the Corporation may be exercised by or under the authority of the Board of Directors, except as conferred on or as reserved to the stockholders by law or by these Articles or the Bylaws of the Corporation; provided, however, that any limitations on the Board of Directors' management or direction of the affairs of the Corporation shall reserve the directors' full power to discharge their fiduciary duties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. <u>Number of Directors</u>. The number of directors constituting the Board of Directors of the Corporation shall initially be ten (10), which number may be increased or decreased in the manner provided in the Bylaws of the Corporation; provided, however, that such number shall never be less than the minimum number of directors required by the MGCL now or hereafter in force. As permitted by § 2-406(b) of the MGCL, the directors, other than those who may be elected by the holders of any series of Preferred Stock, shall be divided into three classes, with the term of office of the first class ("Class I") to expire at the conclusion of the first annual meeting of stockholders, the term of office of the second class ("Class II") to expire at the conclusion of the annual meeting of stockholders one year thereafter and the term of office of the third class ("Class III") to expire at the conclusion of the annual meeting of stockholders two years thereafter, with each director to hold office until his or her successor shall have been duly elected and qualified. At each annual meeting of stockholders, directors elected to succeed those directors whose terms expire shall be elected for a term of office to expire at the third succeeding annual meeting of stockholders after their election or for such shorter period of time as the Board of Directors may determine, with each director to hold office until his or her term expires and until his or her successor shall have been duly elected and qualified. The number of directors of the Corporation shall be fixed by, or in the manner provided by, the bylaws of the Corporation. The bylaws may provide for staggering of the terms of directors to the extent and in the manner permitted by MGCL or any successor provision.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. <u>No Cumulative Voting</u>. Stockholders shall not be permitted to cumulate their votes in the election of directors. A plurality of all the votes cast at a meeting at which a quorum is present is sufficient to elect a director.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D. <u>Vacancies</u>. Any vacancies in the Board of Directors may be filled in the manner provided in the Bylaws of the Corporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;E. <u>Removal</u>. Subject to the rights of the holders of any series of Preferred Stock then outstanding, any director, or the entire Board of Directors, may be removed from office at any time, but only for cause and only by the affirmative vote of the holders of at least two-thirds (2/3) of the voting power of all of the then-outstanding shares of capital stock of the Corporation entitled to vote generally in the election of directors (after giving effect to the provisions of Article 5 hereof) voting together as a single class and consistent with § 2-406 of the MGCL.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;F. <u>Stockholder Proposals and Nominations of Directors</u>. Advance notice of stockholder nominations for the election of directors and of business to be brought by stockholders before any meeting of the stockholders of the Corporation shall be given in the manner provided in the Bylaws of the Corporation.

**Article IX**

**Bylaws**

Pursuant to § 2-109(b)) for the MGCL, the Board of Directors shall have the exclusive power to adopt, amend or repeal the Bylaws of the Corporation. Any adoption, amendment or repeal of the Bylaws of the Corporation by the Board of Directors shall require the approval of a majority of the Whole Board.

**ARTICLE X**

**Indemnification**

The Corporation shall indemnify (1) its current and former directors and officers, whether serving the Corporation or at its request any other entity, to the fullest extent required or permitted by the MGCL now or hereafter in force, including the advancement of expenses under the procedures and to the fullest extent permitted by law, and (2) other employees and agents to such extent as shall be authorized by the Board of Directors and permitted by law; provided, however, that, except as provided in the Bylaws with respect to proceedings to enforce rights to indemnification, the Corporation shall indemnify any such indemnitee in connection with a proceeding (or part thereof) initiated by such indemnitee only if such proceeding (or part thereof) was authorized by the Board of Directors of the Corporation. The rights to indemnification and to the advancement of expenses conferred in this Article 10 shall not be exclusive of any other right that any Person may have or hereafter acquire under any statute, these Articles, the Corporation's Bylaws, any agreement, any vote of stockholders or the Board of Directors, or otherwise.

**Article XI**

**Limitation of Liability**

To the fullest extent permitted by Maryland law, an officer or director of the Corporation, as such, shall not be liable to the Corporation or its stockholders for money damages, except (A) to the extent that it is proved in a legal proceeding that the Person actually received an improper benefit or profit in money, property or services, for the amount of the benefit or profit in money, property or services actually received; or (B) to the extent that a judgment or other final adjudication adverse to the Person is entered in a proceeding based on a finding in the proceeding that the Person's action, or failure to act, was the result of active and deliberate dishonesty and was material to the cause of action adjudicated in the proceeding; or (C) to the extent otherwise provided by the MGCL. If the MGCL is amended to further eliminate or limit the personal liability of officers and directors, then the liability of officers and directors of the Corporation shall be eliminated or limited to the fullest extent permitted by the MGCL, as so amended.

**ARTICLE XII**

**Selection of Forum**

Unless the Corporation consents in writing to the selection of an alternative forum, the sole and exclusive forum for (i) any derivative action or proceeding brought on behalf of the Corporation, (ii) any action asserting a claim of breach of a fiduciary duty owed by any director, officer or other employee of the Corporation to the Corporation or the Corporation's stockholders, (iii) any action asserting a claim arising pursuant to any provision of the MGCL, or (iv) any action asserting a claim governed by the internal affairs doctrine shall be a state or federal court located within the State of Maryland, in all cases subject to the court's having personal jurisdiction over the indispensable parties named as defendants. The provisions of this Article 12 shall not apply to claims arising under the federal securities laws. Any person or entity purchasing or otherwise acquiring any interest in shares of capital stock of the Corporation shall be deemed to have notice of and consented to the provisions of this Article 12.

Any repeal or modification of the foregoing paragraph by the stockholders of the Corporation shall not adversely affect any right or protection of a director or officer of the Corporation existing at the time of such repeal or modification.

**ARTICLE XIII**

**Amendment**

The Corporation reserves the right to amend or repeal any provision contained in these Articles in the manner prescribed by the MGCL, including any amendment altering the terms or contract rights, as expressly set forth in these Articles, of any of the Corporation's outstanding stock by classification, reclassification or otherwise, and no stockholder approval shall be required if the approval of stockholders is not required for the proposed amendment or repeal by the MGCL, and all rights conferred upon stockholders are granted subject to this reservation.

The Board of Directors, pursuant to a resolution approved by a majority of the Whole Board (rounded up to the nearest whole number), and without action by the stockholders, may amend these Articles to increase or decrease the aggregate number of shares of stock or the number of shares of stock of any class or series that the Corporation has authority to issue.

No proposed amendment or repeal of any provision of these Articles shall be submitted to a stockholder vote unless the Board of Directors shall have (1) approved the proposed amendment or repeal, (2) determined that it is advisable, and (3) directed that it be submitted for consideration at either an annual or special meeting of the stockholders pursuant to a resolution approved by the Board of Directors. Any proposed amendment or repeal of any provision of these Articles may be abandoned by the Board of Directors at any time before its effective time upon the adoption of a resolution approved by a majority of the Whole Board (rounded up to the nearest whole number).

Any amendment or repeal of any provision of these Articles that is directed by the Board of Directors to be submitted for consideration and vote by the shareholders must be approved by at least two-thirds (2/3) of all votes entitled to be cast by the holders of shares of capital stock of the Corporation entitled to vote on the matter (after giving due effect to the provisions of Article 5 of these Articles).

Notwithstanding any other provision of these Articles or any provision of law that might otherwise permit a lesser vote or no vote, but in addition to any vote of the holders of any class or series of the stock of the Corporation required by law or by these Articles, the affirmative vote of the holders of at least 80% of the voting power of all of the then-outstanding shares of the capital stock of the Corporation entitled to vote generally in the election of directors (after giving effect to the provisions of Article 5), voting together as a single class, shall be required to amend or repeal this Article 13, Section B or C of Article 5, Article 8 (other than the removal of the list of initial directors), Article 9, Article 10, Article 11 or Article 12.

**ARTICLE XIV**

**Incorporator**

The name and mailing address of the sole incorporator is as follows:

Phillip K. Willett

202 North Main Street

Deer Lodge, Montana 59722

IN WITNESS WHEREOF, PSB Financial, Inc. has caused these Articles of Incorporation to be executed and sealed by its duly authorized officer on this 10th day of September, 2025.

---

| | |
|:---|:---|
| PSB FINANCIAL, INC. | PSB FINANCIAL, INC. |
| By: | */s/ Phillip K. Willett* |
| Name: | Phillip K. Willett |
| Title: | President and CEO |

---

## Exhibit 3.2

**Exhibit 3.2**

**BY-LAWS**

**OF**

**PSB FINANCIAL, INC.**

**(a Maryland corporation)**

**Adopted September 9, 2025**

**TABLE OF CONTENTS**

---

| | | |
|:---|:---|:---|
| Article I. STOCKHOLDERS | Article I. STOCKHOLDERS | 1 |
| **1.01** | **Annual Meeting** | **1** |
| **1.02** | **Special Meetings** | **1** |
| **1.03** | **Notice of Meetings; Adjournment or Postponement of Meetings** | **1** |
| **1.04** | **Quorum** | **2** |
| **1.05** | **Organization and Conduct of Business** | **2** |
| **1.06** | **Advance Notice Provisions for Business to be Transacted at Annual Meetings and Election of Directors** | **3** |
| **1.07** | **Proxies and Voting** | **6** |
| **1.08** | **Conduct of Voting** | **6** |
| **1.09** | **Control Share Acquisition Act** | **6** |
| Article II. BOARD OF DIRECTORS | Article II. BOARD OF DIRECTORS | 7 |
| **2.01** | **General Powers, Number and Term of Office** | **7** |
| **2.02** | **Vacancies and Newly Created Directorships** | **7** |
| **2.03** | **Regular Meetings** | **7** |
| **2.04** | **Special Meetings** | **8** |
| **2.05** | **Quorum** | **8** |
| **2.06** | **Participation in Meetings by Conference Telephone or by Other Electronic Communications Equipment** | **8** |
| **2.07** | **Conduct of Business** | **8** |
| **2.08** | **Powers** | **8** |
| **2.09** | **Compensation of Directors** | **9** |
| **2.10** | **Resignation** | **9** |
| **2.11** | **Presumption of Assent** | **9** |
| **2.12** | **Director Qualifications** | **10** |
| **2.13** | **Attendance at Board Meetings** | **10** |
| Article III. COMMITTEES | Article III. COMMITTEES | 11 |
| **3.01** | **Committees of the Board of Directors** | **11** |
| **3.02** | **Conduct of Business** | **11** |
| Article IV. OFFICERS | Article IV. OFFICERS | 12 |
| **4.01** | **Generally** | **12** |
| **4.02** | **Chairperson of the Board of Directors** | **12** |
| **4.03** | **Vice Chairperson of the Board of Directors** | **12** |
| **4.04** | **Chief Executive Officer** | **12** |
| **4.05** | **President** | **12** |
| **4.06** | **Vice President** | **13** |
| **4.07** | **Secretary** | **13** |
| **4.08** | **Chief Financial Officer/Treasurer** | **13** |
| **4.09** | **Other Officers** | **13** |
| **4.10** | **Action with Respect to Securities of Other Corporations** | **13** |

---

i

---

| | | |
|:---|:---|:---|
| Article V. STOCK | Article V. STOCK | 14 |
| **5.01** | **Certificates of Stock** | **14** |
| **5.02** | **Transfers of Stock** | **14** |
| **5.03** | **Record Dates or Closing of Transfer Books** | **14** |
| **5.04** | **Lost, Stolen or Destroyed Certificates** | **14** |
| **5.05** | **Stock Ledger** | **15** |
| **5.06** | **Regulations** | **15** |
| Article VI. MISCELLANEOUS | Article VI. MISCELLANEOUS | 15 |
| **6.01** | **Facsimile Signatures** | **15** |
| **6.02** | **Corporate Seal** | **15** |
| **6.03** | **Books and Records** | **15** |
| **6.04** | **Reliance Upon Books, Reports and Records** | **15** |
| **6.05** | **Fiscal Year** | **16** |
| **6.06** | **Time Periods** | **16** |
| **6.07** | **Checks, Drafts, Etc** | **16** |
| **6.08** | **Mail** | **16** |
| **6.09** | **Contracts and Agreements** | **16** |
| Article VII. AMENDMENTS | Article VII. AMENDMENTS | 16 |
| **7.01** | **By Directors** | **16** |
| **7.02** | **Implied Amendments** | **16** |

---

ii

**Article I.** **STOCKHOLDERS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.01 <u>Annual Meeting</u>**. PSB Financial, Inc. (the "Corporation") shall hold an annual meeting of its stockholders to elect directors and to transact any other business within its powers, at such place, on such date and at such time as the Board of Directors shall fix. Failure to hold an annual meeting does not invalidate the Corporation's existence or affect any otherwise valid corporate act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.02 <u>Special Meetings</u>**. Special meetings of stockholders of the Corporation may be called by the President, the Chief Executive Officer or the Chairperson of the Board or by the Board of Directors pursuant to a resolution adopted by a majority of the total number of directors that the Corporation would have if there were no vacancies on the Board of Directors (hereinafter the "Whole Board"). Special meetings of the stockholders shall be called by the Secretary at the request of stockholders only on the written request of stockholders entitled to cast at least a majority of all the votes entitled to be cast at the meeting. Such written request shall state the purpose or purposes of the meeting and the matters proposed to be acted upon at the meeting, and shall be delivered at the principal office of the Corporation addressed to the President or the Secretary. The Secretary shall inform the stockholders who make the request of the reasonably estimated cost of preparing and mailing a notice of the meeting and, upon payment of these costs to the Corporation, notify each stockholder entitled to notice of the meeting. The Board of Directors shall have the sole power to fix (i) the record date for determining stockholders entitled to request a special meeting of stockholders and the record date for determining stockholders entitled to notice of and to vote at the special meeting and (ii) the date, time and place of the special meeting and the means of remote communication, if any, by which stockholders and proxy holders may be considered present in person and may vote at the special meeting.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.03 <u>Notice of Meetings; Adjournment or Postponement of Meetings</u>**. Not less than ten (10) nor more than ninety (90) days before each stockholders' meeting, the Secretary shall give notice of the meeting in writing or by electronic transmission to each stockholder entitled to vote at the meeting and to each other stockholder entitled to notice of the meeting. The notice shall state the time and place of the meeting, the means of remote communication, if any, by which stockholders and proxy holders may be deemed to be present in person and may vote at the meeting, and, if the meeting is a special meeting, or notice of the purpose is required by statute, the purpose of the meeting. Notice is given to a stockholder when it is personally delivered to the stockholder, left at the stockholder's residence or usual place of business, mailed to the stockholder at the stockholder's address as it appears on the records of the Corporation, or transmitted to the stockholder by an electronic transmission to any address or number of the stockholder at which the stockholder receives electronic transmissions. If the Corporation has received a request from a stockholder that notice not be sent by electronic transmission, the Corporation may not provide notice to the stockholder by electronic transmission. Notwithstanding the foregoing provisions, each person who is entitled to notice waives notice if such person, before or after the meeting, delivers a written waiver or waiver by electronic transmission which is filed with the records of the stockholders' meetings, or if such person is present at the meeting in person or by proxy.

A meeting of stockholders convened on the date for which it was called may be adjourned from time to time without further notice to a date not more than one hundred twenty (120) days after the original record date. A meeting may be adjourned by a resolution adopted by a majority of the Whole Board or by the vote of a majority of the stockholders present at the meeting, whether or not a quorum is present at such meeting. At any adjourned meeting, any business may be transacted that might have been transacted at the original meeting.

A meeting of stockholders may be postponed to a date not more than one hundred twenty (120) days after the original record date. A meeting may be postponed by a resolution adopted by a majority of the Whole Board. Notice of the date, time and place to which the meeting is postponed shall be given not less than ten (10) days before such date and otherwise in the manner set forth in this Section 1.03. At any postponed meeting, any business may be transacted that might have been transacted at the meeting as originally scheduled.

If a meeting shall be adjourned or postponed to a date not more than one hundred twenty (120) days after the original record date, a new record date need not be established, and the original record date may be used for the purpose of determining which stockholders are entitled to notice of, and to vote at, the adjourned or postponed meeting. Any writing authorizing another person to act as proxy at a meeting of stockholders shall remain valid for use at any adjournment or postponement of such meeting unless such proxy is revoked or a later dated proxy is provided by such stockholder.

As used in these Bylaws, the term "electronic transmission" shall have the meaning given to such term by Section 1-101 of the Maryland General Corporation Law (the "MGCL") or any successor provision.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.04 <u>Q</u>** **<u>uorum</u>**. Unless the Articles of Incorporation provide otherwise, where a separate vote by a class or classes is required, a majority of the shares of such class or classes, present in person or represented by proxy, shall constitute a quorum entitled to take action with respect to that vote on that matter.

If a quorum shall fail to attend any meeting, the chairperson of the meeting or the holders of a majority of the shares of stock who are present at the meeting, in person or by proxy, may, in accordance with Section 1.03 of this Article I, adjourn the meeting to another place, date or time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.05** **<u>Organization and Conduct of Business</u>**. The Chairperson of the Board of Directors or the Vice Chairperson of the Board, if any, or in their absence, (i) an Independent Director (as defined below) appointed by the Chairperson, or (ii) in the absence of such an appointment, the Chief Executive Officer, or in their absence, such other person as may be designated by a majority of the Whole Board, shall call to order any meeting of the stockholders and act as chairperson of the meeting. In the absence of the Secretary, the secretary of the meeting shall be such person as the chairperson of the meeting appoints. The chairperson of any meeting of stockholders shall determine the order of business and the procedure at the meeting, including such regulation of the manner of voting and the conduct of discussion as seem to them to be in order.

For purposes of these By-Laws, "Independent Director" shall mean a Director of the Corporation who meets the independence requirements of the Securities and Exchange Commission, Rule 5605 of the Nasdaq Stock Market Listing Rules (or any successor to such Rule), and any other regulatory entity with relevant jurisdiction over the Corporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.06** **<u>Advance Notice Provisions for Business to be Transacted at Annual Meetings and Election of Directors</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Stockholder Business</u>. At any annual meeting of the stockholders, unless otherwise required by law, only such business shall be conducted as shall have been brought before the meeting: (i) as specified in the Corporation's notice of the meeting; (ii) by or at the direction of the Board of Directors; or (iii) by any stockholder of the Corporation who (a) is a stockholder of record on the date such stockholder gives the notice provided for in this Section 1.06(a) and on the record date for the determination of stockholders entitled to vote at such annual meeting, and (b) complies with the notice procedures set forth in this Section 1.06(a). For business to be properly brought before an annual meeting by a stockholder pursuant to clause (iii) of the immediately preceding sentence, the stockholder must have given timely notice thereof in writing to the Secretary of the Corporation and such business must otherwise be a proper matter for action by stockholders.

To be timely, a stockholder's notice must be delivered or mailed to and received by the Secretary at the principal executive office of the Corporation not less than ninety (90) days nor more than one hundred (100) days before the anniversary of the prior year's annual meeting of stockholders; *provided*, *however*, that if the date of the annual meeting is advanced more than thirty (30) days before the anniversary of the prior year's annual meeting of stockholders, such written notice shall be timely only if delivered or mailed to and received by the Secretary of the Corporation at the principal executive office of the Corporation no earlier than the day on which public disclosure of the date of such annual meeting is first made and not later than the 10th day following the earlier of the day notice of the meeting was mailed to stockholders or such public disclosure was made.

With respect to the first annual meeting of stockholders of the Corporation following the Corporation becoming the sole stockholder of its subsidiary bank, notice by a stockholder shall be timely if delivered or mailed to and received by the Secretary of the Corporation not later than the close of business on the later of (i) the 100<sup>th</sup> day before the date of the annual meeting and (ii) the 10th day following the day on which public disclosure of the date of the annual meeting is first made.

The advance notice periods provided in this Section 1.06(a), once established by the initial notice or public disclosure of a date for the annual meeting of stockholders, shall remain in effect regardless of whether a subsequent notice or public disclosure shall provide that the meeting shall have been adjourned or that the date of the meeting shall have been postponed or otherwise changed from the date provided in the initial notice or public disclosure.

A stockholder's notice to the Secretary must set forth as to each matter such stockholder proposes to bring before the annual meeting: (i) a brief description of the business desired to be brought before the annual meeting and the reasons for conducting such business at the annual meeting; (ii) the name and address of such stockholder as they appear on the Corporation's books and of the beneficial owner, if any, on whose behalf the proposal is made; (iii) the class or series and number of shares of capital stock of the Corporation which are owned beneficially or of record by such stockholder and such beneficial owner; (iv) a description of all arrangements or understandings between such stockholder and any other person or persons (including their names) in connection with the proposal of such business by such stockholder and any material interest of such stockholder in such business; and (v) a representation that such stockholder intends to appear in person or by proxy at the annual meeting to bring such business before the meeting.

Notwithstanding anything in these Bylaws to the contrary, no business shall be brought before or conducted at an annual meeting except in accordance with the provisions of this Section 1.06(a). The chairperson of the meeting shall, if the facts so warrant, determine and declare to the meeting that business was not properly brought before the meeting in accordance with the provisions of this Section 1.06(a) and, if they should so determine, they shall so declare to the meeting and any such business so determined to be not properly brought before the meeting shall not be transacted.

At any special meeting of the stockholders, only such business shall be conducted as shall have been brought before the meeting pursuant to the Corporation's notice of the meeting.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Director Nominations</u>. Only persons who are nominated in accordance with the following procedures shall be eligible for election as directors of the Corporation. Nominations of persons for election to the Board of Directors of the Corporation may be made at a meeting of stockholders at which directors are to be elected only: (i) by or at the direction of the Board of Directors or (ii) by any stockholder of the Corporation who (1) is a stockholder of record on the date such stockholder gives the notice provided for in this Section 1.06(b) and on the record date for the determination of stockholders entitled to vote at such meeting and (2) complies with the notice procedures set forth in this Section 1.06(b) and the requirements of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), and the rules and regulations promulgated thereunder. Such nominations, other than those made by or at the direction of the Board of Directors, shall be made by timely notice in writing to the Secretary of the Corporation.

To be timely, a stockholder's notice must be delivered or mailed to and received by the Secretary at the principal executive office of the Corporation not less than ninety (90) days nor more than one hundred (100) days before the anniversary of the prior year's annual meeting of stockholders; *provided*, *however*, that if the date of the annual meeting is advanced more than thirty (30) days before the anniversary of the prior year's annual meeting of stockholders, such written notice shall be timely only if delivered or mailed to and received by the Secretary of the Corporation at the principal executive office of the Corporation no earlier than the day on which public disclosure of the date of such annual meeting is first made and not later than the tenth (10th) day following the earlier of the day notice of the meeting was mailed to stockholders or such public disclosure was made.

With respect to the first annual meeting of stockholders of the Corporation following the Corporation becoming the sole stockholder of its subsidiary bank, notice by the stockholder shall be timely if delivered or mailed to and received by the Secretary of the Corporation not later than the close of business on the later of (i) the 100<sup>th</sup> day before the date of the annual meeting and (ii) the 10th day following the day on which public disclosure of the date of the annual meeting is first made.

The advance notice periods provided in this Section 1.06(b), once established by the initial notice or public disclosure of a date for the annual meeting of stockholders, shall remain in effect regardless of whether a subsequent notice or public disclosure shall provide that the meeting shall have been adjourned or that the date of the meeting shall have been postponed or otherwise changed from the date provided in the initial notice or public disclosure.

A stockholder's notice must be in writing and set forth (i) as to each person whom the stockholder proposes to nominate for election as a director, (a) all information relating to such person that would indicate such person's qualification to serve on the Board of Directors of the Corporation; (b) an affidavit that such person would not be disqualified under the provisions of Article II, Section 2.12 of these Bylaws; (c) such information relating to such person that is required to be disclosed in connection with solicitations of proxies for election of directors, or is otherwise required, in each case pursuant to Regulation 14A under the Exchange Act, or any successor rule or regulation; and (d) a written consent of each proposed nominee to be named as a nominee, including in proxy materials relating to the meeting to nominate the nominee(s), and to serve as a director if elected; and (ii) as to the stockholder giving the notice: (a) the name and address of such stockholder as they appear on the Corporation's books and of the beneficial owner, if any, on whose behalf the nomination is made; (b) the class or series and number of shares of capital stock of the Corporation which are owned beneficially or of record by such stockholder and such beneficial owner; (c) a description of all arrangements or understandings between such stockholder and each proposed nominee and any other person or persons (including their names) pursuant to which the nomination(s) are to be made by such stockholder; (d) a representation that such stockholder intends to appear in person or by proxy at the meeting to nominate the persons named in its notice; (e) whether such stockholder intends to solicit proxies in support of director nominees other than the Corporation's nominees in accordance with the Exchange Act and the rules and regulations promulgated thereunder; and (f) any other information relating to such stockholder that would be required to be disclosed in a proxy statement or other filings required to be made in connection with solicitations of proxies for election of directors pursuant to Regulation 14A under the Exchange Act or any successor rule or regulation. Upon request by the Corporation, if a stockholder provides notice of its intent to solicit proxies in support of director nominees other than the Corporation's nominees in accordance with the Exchange Act and the rules and regulations promulgated thereunder, the stockholder shall deliver to the Corporation, no later than five (5) business days prior to the applicable meeting of stockholders, reasonable evidence that it has met the requirements of the Exchange Act and the rules and regulations promulgated thereunder. No person shall be eligible for election as a director of the Corporation unless nominated in accordance with the provisions of this Section 1.06(b). The chairperson of the meeting shall, if the facts so warrant, determine that a nomination was not made in accordance with such provisions and, if they should so determine, they shall so declare to the meeting and the defective nomination shall be disregarded. Furthermore, unless otherwise required by law, if any stockholder (i) provides notice pursuant to Rule 14a-19(b) under the Exchange Act and (ii) subsequently fails to comply with any requirements of Rule 14a-19 under the Exchange Act or any other rules or regulations thereunder, then the Corporation shall disregard any proxies or votes solicited for such nominees and such nomination shall be disregarded.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) For purposes of subsections (a) and (b) of this Section 1.06, the term "public disclosure" shall mean disclosure (i) in a press release issued through a nationally-recognized news service, (ii) in a document publicly filed or furnished by the Corporation with the United States Securities and Exchange Commission or (iii) on a website maintained by the Corporation. The timely notice requirements provided in subsections (a) and (b) of this Section 1.06 shall apply to all stockholder nominations for election as a director and all stockholder proposals for business to be conducted at an annual meeting regardless of whether such proposal is submitted for inclusion in the Corporation's proxy materials pursuant to Rule 14a-8 of Regulation 14A under the Exchange Act or whether such nomination is submitted for inclusion in the Corporation's proxy materials pursuant to Rule 14a-19 of Regulation 14A under the Exchange Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.07** **<u>Proxies and Voting</u>**. Unless the Articles of Incorporation provide for a greater or lesser number of votes per share or limits or denies voting rights, each outstanding share of capital stock, regardless of class, is entitled to one vote on each matter submitted to a vote at a meeting of stockholders; however, a share is not entitled to be voted if any installment payable on it is overdue and unpaid. In all elections for directors, directors shall be determined by a plurality of the votes cast, and except as otherwise required by law or as provided in the Articles of Incorporation, all other matters voted on by stockholders shall be determined by a majority of the votes cast on the matter.

A stockholder may vote the capital stock the stockholder owns of record either in person or by proxy. A stockholder may sign a writing authorizing another person to act as proxy. Signing may be accomplished by the stockholder or the stockholder's authorized agent signing the writing or causing the stockholder's signature to be affixed to the writing by any reasonable means, including facsimile signature. A stockholder may authorize another person to act as proxy by transmitting, or authorizing the transmission of, an authorization for the person to act as the proxy to the person authorized to act as proxy or to any other person authorized to receive the proxy authorization on behalf of the person authorized to act as the proxy, including a proxy solicitation firm or proxy support service organization. The authorization may be transmitted by electronic mail or any other electronic or telephonic means. Unless a proxy provides otherwise, a proxy is not valid more than 11 months after its date. A proxy is revocable by a stockholder at any time without condition or qualification unless the proxy states that it is irrevocable and the proxy is coupled with an interest. A proxy may be made irrevocable for as long as it is coupled with an interest. The interest with which a proxy may be coupled includes an interest in the capital stock to be voted under the proxy or another general interest in the Corporation or its assets or liabilities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.08** **<u>Conduct of Voting</u>**. The Board of Directors shall, in advance of any meeting of stockholders, appoint one or more persons as inspectors of election, to act at the meeting or any adjournment thereof and make a written report thereof, in accordance with applicable law. If one or more inspectors are not so elected, the chairperson of the meeting shall make such appointment at the meeting of stockholders. At all meetings of stockholders, the proxies and ballots shall be received, and all questions relating to the qualification of voters and the validity of proxies and the acceptance or rejection of votes shall be decided or determined by the inspector of election. All voting, including on the election of directors but excepting where otherwise required by law, may be by a voice vote; provided, however, that upon demand therefor by a stockholder entitled to vote or their proxy or the chairperson of the meeting, a written vote shall be taken. Every written vote shall be taken by ballot, each of which shall state the name of the stockholder or proxy voting and such other information as may be required under the procedure established for the meeting. No candidate for election as a director at a meeting shall serve as an inspector at such meeting.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.09** **<u>Control Share Acquisition Act</u>**. Notwithstanding any other provision of the Articles of Incorporation or these Bylaws, Title 3, Subtitle 7 of the MGCL (or any successor statute) shall not apply to any acquisition by any person of shares of capital stock of the Corporation. This Section 1.09 may be repealed by a majority of the Whole Board, in whole or in part, at any time, whether before or after an acquisition of Control Shares (as defined in Section 3-701(d) of the MGCL, or any successor provision) and, upon such repeal, may, to the extent provided by any successor bylaw, apply to any prior or subsequent Control Share Acquisition (as defined in Section 3-701(d) of the MGCL, or any successor provision).

**Article II.** **BOARD OF DIRECTORS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.01** **<u>General Powers, Number and Term of Office</u>**. The business and affairs of the Corporation shall be managed under the direction of the Board of Directors. The number of directors of the Corporation shall, by virtue of the Corporation's election made hereby to be governed by Section 3-804(b) of the MGCL, be fixed from time to time exclusively by vote of the Board of Directors; provided, however, that such number shall never be less than the minimum number of directors required by the MGCL now or hereafter in force. The Board of Directors shall annually elect a Chairperson of the Board from among its members and shall designate the Chairperson of the Board or their designee to preside at its meetings. The Board of Directors may also annually elect a Vice Chairperson. In the absence of the Chairperson of the Board, the Vice Chairperson of the Board shall preside at the meetings of the Board of Directors, and in their absence such other person as may be designated by a majority of the Whole Board shall preside at the meetings of the Board of Directors.

The directors, other than those who may be elected by the holders of any series of preferred stock of the Corporation, shall be divided into three classes, as nearly equal in number as reasonably possible, with the term of office of the first class to expire at the first annual meeting of stockholders, the term of office of the second class to expire at the annual meeting of stockholders one year thereafter and the term of office of the third class to expire at the annual meeting of stockholders two years thereafter, with each director to hold office until their successor shall have been duly elected and qualified. At each annual meeting of stockholders, commencing with the first annual meeting, directors elected to succeed those directors whose terms expire shall be elected for a term of office to expire at the third succeeding annual meeting of stockholders after their election or for such shorter period of time as the Board of Directors may determine, with each director to hold office until their successor shall have been duly elected and qualified.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.02** **<u>Vacancies and Newly Created Directorships</u>**. By virtue of the Corporation's election made hereby to be subject to Section 3-804(c) of the MGCL, any vacancies in the Board of Directors resulting from an increase in the size of the Board of Directors or the death, resignation or removal of a director may be filled only by the affirmative vote of two-thirds (2/3) of the remaining directors in office, even if the remaining directors do not constitute a quorum, and any director elected to fill a vacancy shall hold office for the remainder of the full term of the class of directors in which the vacancy occurred and until a successor is elected and qualifies. No decrease in the number of directors constituting the Board of Directors shall shorten the term of any incumbent director.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.03** **<u>Regular Meetings</u>**. Regular meetings of the Board of Directors shall be held at such place or places or by means of remote communication, on such date or dates, and at such time or times as shall have been established by the Board of Directors and publicized among all directors. A notice of each regular meeting shall not be required. Any regular meeting of the Board of Directors may adjourn from time to time to reconvene at the same or some other place, and no notice need be given of any such adjourned meeting other than by announcement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.04** **<u>Special Meetings</u>**. Special meetings of the Board of Directors may be called by one-third (1/3) of the directors then in office (rounded up to the nearest whole number), by the Chairperson of the Board, by the Vice Chairperson of the Board or by the Chief Executive Officer, and shall be held at such place or by means of remote communication, on such date, and at such time as they or they shall fix. Notice of the place, date, and time of each such special meeting shall be given to each director who has not waived notice by mailing and post-marking written notice not less than five (5) days before the meeting, or by facsimile or other electronic transmission of the same not less than twenty four (24) hours before the meeting. Any director may waive notice of any special meeting, either before or after such meeting, by delivering a written waiver or a waiver by electronic transmission that is filed with the records of the meeting. Attendance of a director at a special meeting shall constitute a waiver of notice of such meeting, except where the director attends the meeting for the express purpose of objecting, at the beginning of the meeting, to the transaction of any business because the meeting is not lawfully called or convened. Neither the business to be transacted nor the purpose of any special meeting of the Board of Directors need be specified in the notice of such meeting. Any special meeting of the Board of Directors may adjourn from time to time to reconvene at the same or some other place, and no notice need be given of any such adjourned meeting other than by announcement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.05** **<u>Quorum</u>**. At any meeting of the Board of Directors, a majority of the Whole Board shall constitute a quorum for all purposes. If a quorum shall fail to attend any meeting, a majority of those present may adjourn the meeting to another place, date, or time, without further notice or waiver thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.06** **<u>Participation in Meetings by Conference Telephone or by Other Electronic Communications Equipment</u>**. Members of the Board of Directors, or of any committee thereof, may participate in a meeting of such Board or committee by means of a conference telephone or by means of other electronic communications equipment if all persons participating in the meeting can hear each other at the same time. Such participation shall constitute presence in person at such meeting.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.07** **<u>Conduct of Business</u>**. At any meeting of the Board of Directors, business shall be transacted in such order and manner as the Board may from time to time determine, and all matters shall be determined by the vote of a majority of the directors present, except as otherwise provided in these Bylaws or the Articles of Incorporation or required by law. Action may be taken by the Board of Directors without a meeting if a unanimous consent which sets forth the action is given in writing or by electronic transmission by each member of the Board of Directors and filed in paper or electronic form with the minutes of proceedings of the Board of Directors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.08** **<u>Powers</u>**. All powers of the Corporation may be exercised by or under the authority of the Board of Directors except as provided by the Articles of Incorporation. Consistent with the foregoing, the Board of Directors shall have, among other powers, the unqualified power:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) To declare dividends from time to time in
 accordance with law;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) To purchase or otherwise acquire any property,
 rights or privileges on such terms as it shall determine;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) To authorize the creation, making and
 issuance, in such form as it may determine, of written obligations of every kind, negotiable
 or non-negotiable, secured or unsecured, and to do all things necessary in connection therewith;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) To remove any officer of the Corporation
 with or without cause, and from time to time to devolve the powers and duties of any officer
 upon any other person for the time being;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) To confer upon any officer of the Corporation
 the power to appoint, remove and suspend subordinate officers, employees and agents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) To adopt from time to time such stock,
 option, stock purchase, bonus or other compensation plans for directors, officers, employees
 and agents of the Corporation and its subsidiaries as it may determine;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) To adopt from time to time such insurance,
 retirement, and other benefit plans for directors, officers, employees and agents of the
 Corporation and its subsidiaries as it may determine; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) To adopt from time to time regulations,
 not inconsistent with these Bylaws, for the management of the Corporation's business
 and affairs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.09** **<u>Compensation of Directors</u>**. Directors, as such, may receive, pursuant to resolution of the Board of Directors, fixed fees and other compensation for their services as directors, including, without limitation, their services as members of committees of the Board of Directors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.10** **<u>Resignation</u>**. Any director may resign at any time by giving written notice of such resignation to the Chairperson, the President or the Secretary at the principal office of the Corporation. Unless otherwise specified therein, such resignation shall take effect upon receipt thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.11** **<u>Presumption of Assent</u>**. A director of the Corporation who is present at a meeting of the Board of Directors at which action on any corporate matter is taken shall be presumed to have assented to such action unless such director announces their dissent at the meeting and (a) such director's dissent is entered in the minutes of the meeting, (b) such director files their written dissent to such action with the secretary of the meeting before the adjournment thereof, or (c) such director forwards their written dissent within twenty four (24) hours after the meeting is adjourned, by certified mail, return receipt requested, bearing a postmark from the United States Postal Service, to the secretary of the meeting or the Secretary of the Corporation. Such right to dissent shall not apply to a director who voted in favor of such action or failed to make their dissent known at the meeting.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.12** **<u>Director Qualifications</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) No person shall be eligible for election or appointment to the Board of Directors: (i) if a financial or securities regulatory agency has, within the past ten years, issued a cease and desist, consent or other formal order, other than a civil money penalty, against such person, which order is subject to public disclosure by such agency; (ii) if such person has been convicted of a crime involving dishonesty or breach of trust which is punishable by imprisonment for a term exceeding one year under state or federal law; (iii) if such person is currently charged in any information, indictment, or other complaint with the commission of or participation in such a crime; or (iv) other than the persons appointed as initial directors in connection with the formation of the Corporation and other than persons who are also executive officers of the Corporation or of the Corporation's banking subsidiary, if such person did not, at the time of their first election or appointment to the Board of Directors, maintain their principal residence (as determined by reference to such person's most recent tax returns, copies of which shall be provided to the Corporation for the sole purpose of determining compliance with this clause (iv)) within the state of Montana for a period of at least one (1) year before the date of their purported nomination, election or appointment to the Board of Directors, unless the Board of Directors otherwise approves by two-thirds (2/3) vote, the eligibility of a person whose principal residence is outside the state of Montana. No person may serve on the Board of Directors if such person is: (w) at the same time, a director, officer, employee or 10% or more stockholder of a bank, savings institution, credit union, mortgage banking company, consumer loan company or similar organization, other than a subsidiary of the Corporation, that engages in financial services related business activities or solicits customers, whether through a physical presence or electronically, in the same market area as the Corporation or any of its subsidiaries; (x) does not agree in writing to comply with all of the Corporation's policies applicable to directors including but not limited to its confidentiality policy and confirm in writing their qualifications hereunder; (y) is a party to any agreement, understanding or arrangement with a party other than the Corporation or a subsidiary that (1) provides them with material benefits which are tied to or contingent on the Corporation entering into a merger, sale of control or similar transaction in which it is not the surviving institution, (2) materially limits their voting discretion as a member of the Board of Directors of the Corporation, or (3) materially impairs their ability to discharge their fiduciary duties with respect to the fundamental strategic direction of the Corporation; or (z) has lost more than one election for service as a director of the Corporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) No person seventy-five (75) years of age or older shall be eligible for election, reelection, appointment, or reappointment as a director of the Corporation. This Section 2.12(c) shall not apply to any person serving as a director of Pioneer Federal Savings and Loan Association immediately prior to its conversion to Pioneer State Bank.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Board of Directors shall have the power to construe and apply the provisions of this Section 2.12 and to make all determinations necessary or desirable to implement such provisions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.13** **<u>Attendance at Board Meetings</u>**. The Board of Directors shall have the right to remove any director from the board upon a director's unexcused absence from (i) three consecutive regularly scheduled meetings of the Board of Directors, or (ii) three regularly scheduled meetings of the Board of Directors in any fiscal year of the Corporation.

**Article III.** **COMMITTEES**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.01** **<u>Committees of the Board of Directors</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *General Provisions*. The Board of Directors may appoint from among its members an audit committee, a compensation committee, a nominating and corporate governance committee, and such other committees as the Board of Directors deems necessary or desirable. The Board of Directors may delegate to any committee so appointed any of the powers and authorities of the Board of Directors to the fullest extent permitted by the MGCL and any other applicable law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *Composition*. Each committee shall be composed of one or more directors or any other number of members specified in these Bylaws or required by applicable regulations or stock exchange rules. The Chairperson of the Board may recommend committees, committee memberships, and committee chairs to the Board of Directors. The Board of Directors shall have the power at any time to appoint the chairperson and the members of any committee, change the membership of any committee, to fill all vacancies on committees, to designate alternate members to replace or act in the place of any absent or disqualified member of a committee, or to dissolve any committee. A member of a committee may resign from that committee at any time by giving written notice of such resignation to the Chairperson of the Board. Unless otherwise specified therein, such resignation from the committee shall take effect upon receipt thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) *Issuance of Capital Stock*. If the Board of Directors has given general authorization for the issuance of capital stock providing for or establishing a method or procedure for determining the maximum number of shares to be issued, a committee of the Board of Directors, in accordance with that general authorization or any stock option or other plan or program adopted by the Board of Directors, may authorize or fix the terms of stock subject to classification or reclassification and the terms on which any capital stock may be issued, including all terms and conditions required or permitted to be established or authorized by the Board of Directors. Any committee so designated may exercise the power and authority of the Board of Directors if the resolution that designated the committee or a supplemental resolution of the Board of Directors shall so provide.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.02** **<u>Conduct of Business</u>**. Each committee may determine the procedural rules for meeting and conducting its business and shall act in accordance therewith, except as otherwise provided herein or required by law. Adequate provision shall be made for notice to members of all meetings; one-third (1/3) of the members shall constitute a quorum unless the committee shall consist of one or two members, in which event one member shall constitute a quorum; and all matters shall be determined by a majority vote of the members present. Action may be taken by any committee without a meeting if a unanimous consent which sets forth the action is given in writing or by electronic transmission by each member of the committee and filed in paper or electronic form with the minutes of the proceedings of such committee. The members of any committee may conduct any meeting thereof by conference telephone or other communications equipment in accordance with the provisions of Section 2.06 of Article II.

**Article IV.** **OFFICERS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.01** **<u>Generally</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Board of Directors as soon as may be practicable after the annual meeting of stockholders shall choose a Chairperson of the Board, a President, a Secretary and a Chief Financial Officer/Treasurer and from time to time may choose such other officers as it may deem proper. Any number of offices may be held by the same person, except that no person may concurrently serve as both President and Vice President of the Corporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The term of office of all officers shall be until the next annual election of officers and until their respective successors are chosen, but any officer may be removed from office at any time by the affirmative vote of a majority of the Whole Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) All officers chosen by the Board of Directors shall each have such powers and duties as generally pertain to their respective offices, subject to the specific provisions of this Article IV. Such officers shall also have such powers and duties as from time to time may be conferred by the Board of Directors or by any committee thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.02** **<u>Chairperson of the Board of Directors</u>**. The Chairperson of the Board of Directors of the Corporation shall perform all duties and have all powers which are commonly incident to the office of Chairperson of the Board or which are delegated to them by the Board of Directors. They shall have power to sign all stock certificates, contracts and other instruments of the Corporation that are authorized.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.03** **<u>Vice Chairperson of the Board of Directors</u>**. If appointed, the Vice Chairperson of the Board of Directors of the Corporation shall perform all duties and have all powers which are commonly incident to the office of Chairperson of the Board, with such duties to be performed and powers to be held in the absence of the Chairperson of the Board, or which are delegated to them by the Board of Directors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.04** **<u>Chief Executive Officer</u>**. The Chief Executive Officer, subject to the control of the Board of Directors, shall serve in general executive capacity and have general power over the management and oversight of the administration and operation of the Corporation's business and general supervisory power and authority over its policies and affairs. The Chief Executive Officer shall see that all orders and resolutions of the Board of Directors and of any committee thereof are carried into effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.05** **<u>President</u>**. If appointed, the President shall perform the duties of the Chief Executive Officer in the Chief Executive Officer's absence or during their disability to act. In addition, the President shall perform the duties and exercise the powers usually incident to their respective office and/or such other duties and powers as may be properly assigned to the President from time to time by the Board of Directors, the Chairperson of the Board or the Chief Executive Officer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.06** **<u>Vice President</u>**. If appointed, the Vice President or Vice Presidents (including Executive Vice Presidents or other levels of Vice President designated by the Board of Directors), if any, shall perform the duties of the Chief Executive Officer in the absence of both the Chief Executive Officer and the President, or during their disability to act. In addition, the Vice Presidents shall perform the duties and exercise the powers usually incident to their respective office and/or such other duties and powers as may be properly assigned to the Vice Presidents from time to time by the Board of Directors, the Chairperson of the Board or the Chief Executive Officer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.07** **<u>Secretary</u>**. The Secretary or an Assistant Secretary shall issue notices of meetings, shall keep the minutes of meetings, shall have charge of the seal and the corporate books, shall perform such other duties and exercise such other powers as are usually incident to such offices and/or such other duties and powers as are properly assigned thereto by the Board of Directors, the Chairperson of the Board or the Chief Executive Officer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.08** **<u>Chief Financial Officer/Treasurer</u>**. The Chief Financial Officer/Treasurer shall have charge of all monies and securities of the Corporation, other than monies and securities of any division of the Corporation that has a treasurer or financial officer appointed by the Board of Directors, and shall keep regular books of account. The funds of the Corporation shall be deposited in the name of the Corporation by the Chief Financial Officer/Treasurer with such banks or trust companies or other entities as the Board of Directors from time to time shall designate. The Chief Financial Officer/Treasurer shall sign or countersign such instruments as require their signature, shall perform all such duties and have all such powers as are usually incident to such office and/or such other duties and powers as are properly assigned to them by the Board of Directors, the Chairperson of the Board or the Chief Executive Officer, and may be required to give bond for the faithful performance of their duties in such sum and with such surety as may be required by the Board of Directors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.09** **<u>Other Officers</u>**. The Board of Directors may designate and fill such other offices in its discretion and the persons holding such other offices shall have such powers and shall perform such duties as the Board of Directors or Chief Executive Officer may from time to time assign.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.10** **<u>Action with Respect to Securities of Other Corporations</u>**. Securities of other corporations or associations registered in the name of the Corporation may be voted by the Chief Executive Officer, the President, a Vice President, or a proxy appointed by either of them. The Board of Directors, however, may by resolution appoint some other person to vote such shares, in which case such person shall be entitled to vote such shares upon the production of a certified copy of such resolution.

**Article V.** **STOCK**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.01** **<u>Certificates of Stock</u>**. The Board of Directors may determine to issue certificated or uncertificated shares of capital stock and other securities of the Corporation. For certificated stock, each stockholder is entitled to certificates which represent and certify the shares of stock the stockholder holds in the Corporation. Each stock certificate shall include on its face the name of the Corporation, the name of the stockholder or other person to whom it is issued, and the class of stock and number of shares it represents. It shall also include on its face or back (a) a statement of any restrictions on transferability and a statement of the designations and any preferences, conversion and other rights, voting powers, restrictions, limitations as to dividends, qualifications, and terms and conditions of redemption of the stock of each class which the Corporation is authorized to issue, of the differences in the relative rights and preferences between the shares of each series of preferred stock which the Corporation is authorized to issue, to the extent they have been set, and of the authority of the Board of Directors to set the relative rights and preferences of subsequent series of preferred stock or (b) a statement which provides in substance that the Corporation will furnish a full statement of such information to any stockholder on request and without charge. Such request may be made to the Secretary or to the Corporation's transfer agent. Upon the issuance of uncertificated shares of capital stock, the Corporation shall send the stockholder a written statement of the same information required above with respect to stock certificates. Each stock certificate shall be in such form, not inconsistent with law or with the Articles of Incorporation, as shall be approved by the Board of Directors or any officer or officers designated for such purpose by resolution of the Board of Directors. Each stock certificate shall be signed by the Chairperson of the Board, the President, or a Vice-President, and countersigned by the Secretary, an Assistant Secretary, the Treasurer, or an Assistant Treasurer. Each certificate may be sealed with the actual corporate seal or a facsimile of it or in any other form and the signatures may be either manual or facsimile signatures. A certificate is valid and may be issued whether or not an officer who signed it is still an officer when it is issued. A certificate may not be issued until the stock represented by it is fully paid.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.02** **<u>Transfers of Stock</u>**. Transfers of capital stock shall be made only upon the transfer books of the Corporation kept at an office of the Corporation or by transfer agents designated to transfer shares of the capital stock of the Corporation. Except where a certificate is issued in accordance with Section 5.04 of Article V of these Bylaws, an outstanding certificate for the number of shares involved shall be surrendered for cancellation before a new certificate is issued therefor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.03** **<u>Record Dates or Closing of Transfer Books</u>**. The Board of Directors may, and shall have the power to, set a record date or direct that the stock transfer books be closed for a stated period for the purpose of making any proper determination with respect to stockholders, including which stockholders are entitled to notice of a meeting, vote at a meeting, receive a dividend, or be allotted other rights. The record date may not be before the close of business on the day the record date is fixed nor, subject to Section 1.03 of Article I of these Bylaws, more than ninety (90) days before the date on which the action requiring the determination will be taken; the transfer books may not be closed for a period longer than twenty (20) days; and, in the case of a meeting of stockholders, the record date or the closing of the transfer books shall be at least ten (10) days before the date of the meeting. Any shares of the Corporation's own stock acquired by the Corporation between the record date for determining stockholders entitled to notice of or to vote at a meeting of stockholders and the time of the meeting may be voted at the meeting by the holder of record as of the record date and shall be counted in determining the total number of outstanding shares entitled to be voted at the meeting.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.04** **<u>Lost, Stolen or Destroyed Certificates</u>**. The Board of Directors of the Corporation may determine the conditions for issuing a new stock certificate in place of one which is alleged to have been lost, stolen, or destroyed, or the Board of Directors may delegate such power to any officer or officers of the Corporation or to the transfer agent designated to transfer shares of the stock of the Corporation. In their discretion, the Board of Directors or such officer or officers may require the owner of the certificate to give a bond, with sufficient surety, to indemnify the Corporation against any loss or claim arising as a result of the issuance of a new certificate. In their discretion, the Board of Directors or such officer or officers may refuse to issue such new certificate without the order of a court having jurisdiction over the matter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.05** **<u>Stock Ledger</u>**. The Corporation shall maintain a stock ledger which contains the name and address of each stockholder and the number of shares of stock of each class which the stockholder holds. The stock ledger may be in written form or in any other form which can be converted within a reasonable time into written form for visual inspection. The original or a duplicate of the stock ledger shall be kept at the offices of a transfer agent for the particular class of stock or, if none, at the principal executive office of the Corporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.06** **<u>Regulations</u>**. The issue, transfer, conversion and registration of certificates of stock shall be governed by such other regulations as the Board of Directors may establish.

**Article VI.** **MISCELLANEOUS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.01** **<u>Facsimile Signatures</u>**. In addition to the provisions for use of facsimile signatures elsewhere specifically authorized in these Bylaws, facsimile signatures of any officer or officers of the Corporation may be used whenever and as authorized by the Board of Directors or a committee thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.02** **<u>Corporate Seal</u>**. The Board of Directors may provide a suitable seal, bearing the name of the Corporation, which shall be in the charge of the Secretary. The Board of Directors may authorize one or more duplicate seals and provide for the custody thereof. If the Corporation is required to place its corporate seal to a document, it is sufficient to meet the requirement of any law, rule, or regulation relating to a corporate seal to place the word "(seal)" adjacent to the signature of the person authorized to sign the document on behalf of the Corporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.03** **<u>Books and Records</u>**. The Corporation shall keep correct and complete books and records of its accounts and transactions and minutes of the proceedings of its stockholders and Board of Directors and of any committee when exercising any of the powers of the Board of Directors. The books and records of the Corporation may be in written form or in any other form which can be converted within a reasonable time into written form for visual inspection. Minutes shall be recorded in written form but may be maintained in the form of a reproduction. The original or a certified copy of these Bylaws shall be kept at the principal office of the Corporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.04** **<u>Reliance Upon Books, Reports and Records</u>**. Each director, each member of any committee designated by the Board of Directors, and each officer and agent of the Corporation shall, in the performance of their duties, in addition to any protections conferred upon them by law, be fully protected in relying in good faith upon the books of account or other records of the Corporation and upon such information, opinions, reports or statements presented to the Corporation by any of its officers or employees, or committees of the Board of Directors so designated, or by any other person as to matters which such director, committee member, officer or agent reasonably believes are within such other person's professional or expert competence and who has been selected with reasonable care by or on behalf of the Corporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.05** **<u>Fiscal Year</u>**. The fiscal year of the Corporation shall commence on the first day of January and end on the last day of December in each year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.06** **<u>Time Periods</u>**. In applying any provision of these Bylaws that requires that an act be done or not be done a specified number of days before an event or that an act be done during a period of a specified number of days before an event, calendar days shall be used, the day of the doing of the act shall be excluded and the day of the event shall be included.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.07** **<u>Checks, Drafts, Etc</u>**. All checks, drafts and orders for the payment of money, notes and other evidences of indebtedness, issued in the name of the Corporation, shall be signed by any officer, employee or agent of the Corporation that is authorized by the Board of Directors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.08** **<u>Mail</u>**. Any notice or other document that is required by these Bylaws to be mailed shall be deposited in the United States mail, postage prepaid.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.09** **<u>Contracts and Agreements</u>**. To the extent permitted by applicable law, and except as otherwise prescribed by the Articles of Incorporation or these Bylaws, the Board of Directors may authorize any officer, employee or agent of the Corporation to enter into any contract or execute and deliver any instrument in the name of and on behalf of the Corporation. Such authority may be general or confined to specific instances. A person who holds more than one office in the Corporation may not act in more than one capacity to execute, acknowledge, or verify an instrument required by law to be executed, acknowledged, or verified by more than one officer.

**Article VII.** **AMENDMENTS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.01** **<u>By Directors</u>**. These Bylaws may be adopted, amended or repealed as provided in the Articles of Incorporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.02** **<u>Implied Amendments</u>**. Any action taken or authorized by the shareholders or by the Board of Directors, which would be inconsistent with the By-laws then in effect but is taken or authorized by affirmative vote of not less than the number of shares or the number of Directors required to amend the By-laws so that the By-laws would be consistent with such action, shall be given the same effect as though the By-laws had been temporarily amended or suspended so far, but only so far, as is necessary to permit the specific action so taken or authorized.

## Ex-4

**Exhibit 4**

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| | | |
|:---|:---|:---|
| **NO.** | **PSB FINANCIAL, INC.** | **SHARES** |
| ______________ | **INCORPORATED UNDER THE LAWS OF THE** | _____________ |
| | **STATE OF MARYLAND** | |

---

**CUSIP:**

THE SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO RESTRICTIONS, SEE REVERSE SIDE

THIS CERTIFIES that_________________________________________________ is the owner of_______________________________________________________ FULLY-PAID AND NON-ASSESSABLE SHARES OF COMMON STOCK, PAR VALUE $00.01 PER SHARE

The shares evidenced by this certificate are transferable only on the books of PSB Financial, Inc. by the holder hereof, in person or by attorney, upon surrender of this certificate properly endorsed. **The capital stock evidenced hereby is not an account of an insurable type and is not insured by the Federal Deposit Insurance Corporation or any other Federal or state governmental agency.**

IN WITNESS WHEREOF, PSB Financial, Inc. has caused this certificate to be executed by the facsimile signatures of its duly authorized officers and has caused a facsimile of its seal to be hereunto affixed.

Dated: ________________, 2025

By:   [SEAL] By:   [SEAL] <br> Kory Smith Phillip K. Willett <br> Secretary President and Chief Executive Officer

The Board of Directors of PSB Financials, Inc. (the "Company") is authorized by resolution or resolutions, from time to time adopted, to provide for the issuance of more than one class of stock, including preferred stock in series, and to fix and state the voting powers, designations, preferences, limitations and restrictions thereof. The Company will furnish to any stockholder upon request and without charge a full description of each class of stock and any series thereof.

The shares represented by this certificate may not be cumulatively voted on any matter. The Articles of Incorporation requires that, with limited exceptions, no amendment, addition, alteration, change or repeal of the Articles of Incorporation shall be made, unless such is first approved by the Board of Directors of the Company and approved by the stockholders by a majority of the total shares entitled to vote, or in certain circumstances approved by the affirmative vote of up to 80% of the shares entitled to vote.

The following abbreviations when used in the inscription on the face of this certificate shall be construed as though they were written out in full according to applicable laws or regulations.

---

| | | | |
|:---|:---|:---|:---|
| TEN COM | - as tenants in common | UNIF GIFT MIN ACT | - _________ Custodian __________ |
|  |  |  | *(Cust) (Minor)* |
| TEN ENT | - as tenants by the entireties |  |  |
|  |  |  | Under Uniform Gifts to Minors Act |
| JT TEN | - as joint tenants with right of survivorship and not as tenants in common |  | ____________________________<br> *(State)* |

---

Additional abbreviations may also be used though not in the above list

For value received,__________________________________________hereby sell, assign and transfer unto

PLEASE INSERT SOCIAL SECURITY NUMBER OR OTHER IDENTIFYING NUMBER

*(please print or typewrite name and address including postal zip code of assignee)*

______________________________________Shares of the Common Stock represented by the within Certificate, and do hereby irrevocably constitute and appoint ______________________ Attorney to transfer the said shares on the books of the within named corporation with full power of substitution in the premises.

---

| | |
|:---|:---|
| Dated, ___________________________ |  |
| In the presence of | Signature: |

---

NOTE: THE SIGNATURE TO THIS ASSIGNMENT MUST CORRESPOND WITH THE NAME OF THE STOCKHOLDER(S) AS WRITTEN UPON THE FACE OF THE CERTIFICATE, IN EVERY PARTICULAR, WITHOUT ALTERATION OR ENLARGEMENT, OR ANY CHANGE WHATSOEVER

## Exhibit 5.1

**Exhibit 5.1**

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| | |
|:---|:---|
| ![](tm2525788d3_ex5-1img001.jpg) | ![](tm2525788d3_ex5-1img002.jpg) |

---

September 22, 2025

The Board of Directors

PSB Financial, Inc.

Pioneer Federal Savings and Loan Association

202 North Main Street

Deer Lodge, Montana 59722

---

| | |
|:---|:---|
| **Re:** | **PSB Financial, Inc.** |
|  | **Common Stock, Par Value $0.01 Per Share** |

---

Ladies and Gentlemen:

You have requested the opinion of this firm as to certain matters in connection with the offer, sale and issuance of the shares of common stock, par value $0.01 per share ("Common Stock"), of PSB Financial, Inc. (the "Company").

We have reviewed the Company's Articles of Incorporation and its Registration Statement on Form S-1 (the "Form S-1"), the Plan of Conversion of Pioneer Federal Savings and Loan Association (the "Plan"), and applicable statutes and regulations governing the Company and the offer, sale and issuance of the Common Stock. The opinion expressed below is limited to the laws of the State of Maryland (which includes applicable provisions of the Maryland General Corporation Law, the Maryland Constitution and reported judicial decisions interpreting the Maryland General Corporation Law and the Maryland Constitution).

We are of the opinion that upon the declaration of effectiveness of the Form S-1, the Common Stock, when issued and sold in accordance with the Plan, will be legally issued, fully paid and non-assessable.

This opinion has been prepared solely for the use of the Company in connection with the preparation and filing of the Form S-1, and shall not be used for any other purpose without our prior express written consent. We hereby consent to our firm being referenced under the caption "Legal Matters" in the Prospectus contained in the Form S-1 and to the filing of this opinion as an exhibit to the Form S-1.

---

| |
|:---|
| Very truly yours, |
| /s/ Godfrey & Kahn, S.C. |
| Godfrey & Kahn, S.C. |

---

![](tm2525788d3_ex5-1img003.jpg)

## Exhibit 8.1

**Exhibit 8.1**

---

| | |
|:---|:---|
| ![](tm2525788d3_ex8-1img001.jpg) | ![](tm2525788d3_ex8-1img002.jpg) |

---

September 22, 2025

Boards of Directors<br> Pioneer Federal Savings and Loan Association<br> PSB Financial, Inc.<br> 202 North Main Street<br> Deer Lodge, Montana 59722

Boards of Directors:

You have requested our opinion regarding the material federal income tax consequences of the proposed merger of Pioneer Federal Savings and Loan Association, a Montana-chartered mutual savings and loan association ("Mutual"), into Pioneer State Bank, a Montana-chartered bank ("Stock Bank"), pursuant to the Plan of Conversion dated September 16, 2025 (the "Plan") and the Merger Agreement in the form approved by Mutual on September 9, 2025 (the "Agreement"). All capitalized terms used but not defined herein shall have the same meaning as set forth in the Plan.

Because Montana law does not permit mutual savings and loan associations to convert into stock banks, the merger of Mutual into a stock bank is the only manner in which Mutual can effectively convert into a stock bank under Montana law. In order to accomplish the conversion into stock bank form and the offering, the following transactions will occur:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;▪ PSB Financial, Inc. ("Holding Company")
will be incorporated under Maryland law and will be capitalized with a minimum amount of capital to meet minimum capitalization requirements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;▪ Stock Bank will be formed under Montana law and
will be capitalized by Holding Company with $5,000, which is the minimum amount of capital to meet minimum capitalization requirements
under Montana Administrative Rule § 2.59.2302(4).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;▪ Mutual will merge with and into Stock Bank, with
Stock Bank being the surviving corporation, pursuant to Montana law (the "Merger").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;▪ Pursuant to the Merger, Stock Bank will succeed
to all of the assets and assume all of the liabilities of Mutual, including all liabilities to persons holding accounts in Mutual.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;▪ Each person holding a deposit account in Mutual
("Account Holder") at the time of the Merger will automatically continue as an account holder of Stock Bank, and the deposit
balance, interest rate, and other terms of such Account Holder's deposit accounts will not change as a result of the stock offering
and conversion.

![](tm2525788d3_ex8-1img003.jpg)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;▪ Each Eligible Account Holder and Supplemental
Account Holder, if any (as defined in the Plan), will receive an interest in a liquidation account ("Liquidation Account")
with respect to Stock Bank. The Liquidation Account will be established in an amount equal to the net worth of Mutual on the effective
date of the Merger, as required by applicable federal law. Each such Account Holder will receive an interest in a portion of the Liquidation
Account balance. As required by applicable federal law, this interest constitutes a right of priority over Holding Company to receive
an amount representing such Account Holder's interest in the net worth of Mutual on the effective date of the Merger before any
liquidating distribution can be made with respect to Stock Bank's common stock upon a liquidation of Stock Bank. An interest in
the Liquidation Account cannot be increased but will be decreased to reflect withdrawals from such Account Holder's account that
reduce the amount in such Account Holder's account, including account closures.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;▪ Each Eligible Account Holder will be entitled
to receive, without payment therefor, non-transferable subscription rights to purchase Holding Company common stock at the undiscounted
price of $10.00 per share, which price was determined by an independent valuation, subject to overall purchase limitations ("Subscription
Rights").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;▪ To the extent that there are sufficient shares
of Holding Company common stock remaining after satisfaction of subscriptions by Eligible Account Holders and Holding Company's
tax-qualified employee benefit plans, each Supplemental Eligible Account Holder will be entitled to receive Subscription Rights without
payment therefor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;▪ To the extent that there are shares of Holding
Company common stock remaining after satisfaction of subscriptions by Eligible Account Holders, Holding Company's tax-qualified
employee benefit plans, and Supplemental Eligible Account Holders, each Other Member (as defined in the Plan) will be entitled to receive
Subscription Rights without payment therefor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;▪ No one entitled to receive Subscription Rights
will receive cash or any other property in lieu of such rights.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;▪ Any shares of common stock of Holding Company
not purchased by exercise of the Subscription Rights or by Holding Company's tax-qualified employee benefit plans may be offered
for sale in a community offering, and any shares of common stock of Holding Company not purchased in the community offering may be offered
for sale thereafter in a syndicated community offering, in each case at the price of $10.00 per share determined by the independent valuation
(the "Offering").

For purposes of rendering this opinion, we have reviewed the Plan, the Agreement, the form of the Registration Statement of Holding Company on Form S-1 dated as of this date to be filed with the Securities and Exchange Commission on or about September 23, 2025 in substantially the same form (the "Registration Statement"), the representation letter executed by duly authorized officers of Mutual and Holding Company, and such other documents as we have deemed necessary or appropriate, without any independent investigation thereof. We have relied upon the truth and accuracy at all relevant times of the facts, statements, covenants, representations, and warranties contained in the Plan, the Agreement, Registration Statement, and the representation letter of Mutual and Holding Company.

In connection with rendering this opinion, we have assumed (and are relying thereon, without any independent investigation or review thereof):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;▪ that the Merger will be consummated under Montana
law and in accordance with the Plan, the Agreement, the Registration Statement, and the representation letter, without breach or waiver
of any provision thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;▪ that any representations or statements that are
made to the best of any person's knowledge, or that are similarly qualified, will be true, correct, and complete without regard
to any knowledge or similar qualification; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;▪ the genuineness of all signatures and the authenticity
of original documents submitted to us, the conformity to the originals of documents submitted to us as copies, and the due and valid execution
and delivery of all such documents where due execution and delivery are a prerequisite to the effectiveness thereof.

Based on our examination of the foregoing items and subject to the assumptions, exceptions, limitations, and qualifications set forth herein, we are of the opinion that for U.S. federal income tax purposes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;▪ The change in the form of operation of Mutual
from a mutual savings and loan association to a stock form of incorporation in the form of Stock Bank pursuant to the Merger will constitute
a "reorganization" within the meaning of Section 368(a)(1)(F) of the Internal Revenue Code of 1986, as amended,
and no gain or loss will be recognized to either Mutual or Stock Bank as a result of the Merger.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;▪ The assets of Mutual will have the same basis
and holding period in the hands of Stock Bank as in the hands of Mutual immediately before the Merger.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;▪ Gain or loss, if any, will be realized by Eligible
Account Holders and Supplemental Account Holders, if any, upon the issuance to them of deposit accounts in Stock Bank, the interest in
the liquidation account of Stock Bank, and the non-transferrable Subscription Rights to purchase stock of Holding Company. Any such gain
will be recognized by such Account Holders, but only in an amount not in excess of the fair market value, if any, of the non-transferrable
Subscription Rights received.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;▪ The basis of the Account Holders' deposit
accounts in Stock Bank will be the same as the basis of their deposit accounts in Mutual. The basis of each Account Holder's interest
in the Liquidation Account of Stock Bank will be equal to the fair market value thereof, if any.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;▪ The basis of the Holding Company stock to its
shareholders will be the purchase price thereof, plus, in the case of stock acquired pursuant to Subscription Rights, the basis, if any,
in the Subscription Rights. The holding period of the Holding Company common stock purchased pursuant to the exercise of non-transferable
Subscription Rights will commence on the date on which the right to acquire such stock was exercised.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;▪ Stock Bank will not recognize any gain or loss
upon the receipt of money from Holding Company in exchange for shares of common stock of Stock Bank.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;▪ No gain or loss will be recognized by Holding
Company on the receipt of money in exchange for shares of Holding Company common stock sold in the Offering.

Our opinion is not binding upon the Internal Revenue Service or the courts, and the Internal Revenue Service is not precluded from asserting a contrary position. No ruling has been or will be requested from the Internal Revenue Service concerning the federal income tax consequences of the Merger or Offering.

Future legislative, judicial, regulatory, or administrative changes, on either a prospective or retroactive basis, may adversely affect the accuracy of the opinion expressed herein. Nevertheless, we undertake no responsibility to advise you of any new developments in the application or interpretation of the federal income tax laws.

Our opinion concerning material federal income tax consequences of the Merger and Offering is limited to the specific federal income tax consequences presented above. No opinion is expressed as to any transactions other than the Merger and Offering, including any transactions undertaken in connection with the Merger or Offering. In addition, this opinion does not address any other federal, estate, gift, state, local, or foreign tax consequences that may result from the Merger or Offering.

Our opinion is void and may not be relied upon if (a) the transactions described in the representation letter executed by the duly authorized officers of Mutual and Holding Company are not consummated in accordance with the terms of such representation letter and without waiver or breach of any material provision thereof, or (b) any of the representations, warranties, covenants, conditions, statements, or assumptions upon which we relied are not true and accurate at all relevant times.

We hereby consent to the filing of this opinion as an exhibit to the Registration Statement. We also hereby consent to the references to this firm in the prospectus which is a part of the Registration Statement. We further consent to the disclosure and inclusion of this opinion with any regulatory applications filed with the Federal Reserve Board of Governors, the Federal Deposit Insurance Corporation, and the State of Montana Division of Banking and Financial Institutions.

We hereby consent to the use of and reliance on this opinion by Wipfli LLP in issuing its state tax opinion to Mutual and Stock Bank regarding the Merger and Offering.

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| |
|:---|
| Very truly yours, |
| /s/ Godfrey & Kahn, S.C. |
| GODFREY & KAHN, S.C. |

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## Exhibit 8.2

**Exhibit 8.2**

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| | | |
|:---|:---|:---|
| ![](tm2525788d3_ex8-2img001.jpg) | 910 North Last Chance Gulch<br> Suite A<br> Helena, MT 59601 | 406 442 .5520<br> wipfli.com |

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**STATE TAX OPINION**

September 22, 2025

Boards of Directors

Pioneer Federal Savings & Loan Association

PSB Financial, Inc.

202 North Main Street

Deer Lodge, Montana 59722

Boards of Directors:

In accordance with your request, set forth below is the opinion of this firm relating to the material Montana income tax consequences of the proposed merger of Pioneer Federal Savings and Loan Association, a Montana-chartered mutual savings and loan association ("Mutual"), into Pioneer State Bank, a Montana-chartered bank ("Stock Bank"), pursuant to the Plan of Conversion dated September 16, 2025 (the "Plan") and the Merger Agreement in the form approved by Mutual on September 9, 2025 (the "Agreement"). All capitalized terms used but not defined herein shall have the same meaning as set forth in the Plan.

In forming and issuing our opinion, we have relied on the written opinion regarding the U.S. federal income tax treatment of the transaction prepared by Godfrey & Kahn, S.C. (Attachment A) and the Representation Letter prepared by Mutual dated September 22, 2025. Our opinion assumes that the Merger will constitute a reorganization, a mere change in form, within the meaning of Internal Revenue Code ("Code") § 368(a)(1)(F). For purposes of this opinion, we have reviewed the applicable Montana authority.

**Facts**

Because Montana law does not permit mutual savings and loan associations to convert into stock banks, the merger of Mutual into a stock bank is the only manner in which Mutual can effectively convert into a stock bank under Montana law. In order to accomplish the conversion into stock bank form and the offering, the following transactions will occur:

▪ PSB Financial, Inc. ("Holding Company") will be incorporated under Maryland law and will be
capitalized with a minimum amount of capital to meet minimum capitalization requirements.

Stock Bank will be formed under Montana law and will be capitalized by Holding Company with $5,000, which is the minimum amount of capital to meet minimum capitalization requirements under Montana Administrative Rule § 2.59.2302(4).

▪ Mutual will merge with and into Stock Bank, with Stock Bank being the surviving corporation, pursuant
to Montana law (the "Merger").

▪ Pursuant to the Merger, Stock Bank will succeed to all of the assets and assume all of the liabilities
of Mutual, including all liabilities to persons holding accounts in Mutual.

▪ Each person holding a deposit account in Mutual ("Account Holder") at the time of the Merger
will automatically continue as an account holder of Stock Bank, and the deposit balance, interest rate, and other terms of such Account
Holder's deposit accounts will not change as a result of the stock offering and conversion.

▪ Each Eligible Account Holder and Supplemental Account Holder, if any (as defined in the Plan), will receive
an interest in a liquidation account ("Liquidation Account") with respect to Stock Bank. The Liquidation Account will be established
in an amount equal to the net worth of Mutual on the effective date of the Merger, as required by applicable federal law. Each such Account
Holder will receive an interest in a portion of the Liquidation Account balance. As required by applicable federal law, this interest
constitutes a right of priority over Holding Company to receive an amount representing such Account Holder's interest in the net
worth of Mutual on the effective date of the Merger before any liquidating distribution can be made with respect to Stock Bank's
common stock upon a liquidation of Stock Bank. An interest in the Liquidation Account cannot be increased but will be decreased to reflect
withdrawals from such Account Holder's account that reduce the amount in such Account Holder's account, including account
closures.

▪ Each Eligible Account Holder will be entitled to receive, without payment therefor, non-transferable subscription
rights to purchase Holding Company common stock at the undiscounted price of $10.00 per share, which price was determined by an independent
valuation, subject to overall purchase limitations ("Subscription Rights").

▪ To the extent that there are sufficient shares of Holding Company common stock remaining after satisfaction
of subscriptions by Eligible Account Holders and Holding Company's tax-qualified employee benefit plans, each Supplemental Eligible
Account Holder will be entitled to receive Subscription Rights without payment therefor.

▪ To the extent that there are shares of Holding Company common stock remaining after satisfaction of subscriptions
by Eligible Account Holders, Holding Company's tax-qualified employee benefit plans, and Supplemental Eligible Account Holders,
each Other Member (as defined in the Plan) will be entitled to receive Subscription Rights without payment therefor.

▪ No one entitled to receive Subscription Rights will receive cash or any other property in lieu of such
rights.

▪ Any shares of common stock of Holding Company not purchased by exercise of the Subscription Rights or
by Holding Company's tax-qualified employee benefit plans may be offered for sale in a community offering, and any shares of common
stock of Holding Company not purchased in a community offering may be offered for sale thereafter in a syndicated community offering,
in each case at the price of $10.00 per share determined by the independent valuation (the "Offering").

**Discussion of Relevant Montana Income Tax Issues**

Montana imposes an income tax upon all "corporations" engaged in business in the state (Mont. Code Ann. § 15-31-101(3)), as well as upon any "bank organized under the laws of the state of Montana, of any other state, or of the United States and a savings and loan association organized under the laws of this state or of the United States" (Mont. Code Ann. § 15-31-101(4)).

Because Mutual is a savings and loan organization organized under the laws of Montana and because Stock Bank is a bank organized under the laws of the state of Montana, both companies are subject to Montana's corporate income tax.

The Montana corporate income tax is imposed on a taxpaying entity's "total net income" from Montana sources. Mont. Code Ann. 15-31-101(3). For this purpose, "net income" means "the gross income of the corporation" less enumerated deductions (Mont. Code Ann. § 15-31-113(2)), and Mont. Code Ann. § 15-31-113(1) defines "gross income" as "all income recognized in determining the corporation's gross income for federal income tax purposes."

Because Montana's corporate income tax law does not specifically define the phrase "for federal income tax purposes," its catch-all definitional section defines that phrase by cross-reference to the Code. Mont. Code Ann. § 15-31-501(2) "If a term is not defined in this chapter, the term has the same meaning as it does when used in a comparable context in the Internal Revenue Code".

Unlike some states' laws, Montana's laws are silent about which version of the Code its corporate income tax code conforms to. Montana's corporate income tax law automatically conforms to the Code as Congress may amend it from time to time (an approach often known as "rolling conformity"). As a result, Montana's corporate income tax laws implicitly follow all provisions of the Code, unless there is an explicit statutory or regulatory basis for not conforming to any particular Code provision such as Code § 368(a)(1)(F).

Even though Montana conforms to Code § 368(a)(1)(F) generally, it decouples from the Code's general requirement that the successor corporation in an F Reorganization must inherit the predecessor corporation's net operating loss (NOL) carryforwards. Specifically, Code § 381(a)(2) provides that the acquiring corporation in an F Reorganization must inherit the NOL carryforwards of the acquired corporation.

However, under Montana Administrative Rule § 42.23.804(1), Montana effectively decouples from Code § 381(a)(2)'s impact on NOLs acquired in an F Reorganization by providing that "in the case of a merger of corporations, the surviving corporation may not claim a net operating loss deduction for net operating losses incurred by any of the merged corporations prior to the date of merger."

As of the date of this opinion, Mutual is not expected to have an NOL for its 2024 tax year. As a result, Montana's rule extinguishing pre-merger NOLs would have no effect on Mutual for its 2024 tax year.

As of the date of this opinion, it appears that for the period of 2025 prior to its merger with and into Stock Bank, Mutual will likely be in a loss position for Federal and Montana corporate income tax purposes. Because the F Reorganization would not create a short tax year for Mutual that would automatically cut off Mutual's accounting period on the merger date, Mutual would need to compute the portion of its 2025 Montana NOL attributable to the 2025 pre-merger period and extinguish it under Montana Administrative Rule § 42.23.804(1).

**Opinion**

Montana's corporate income tax regulations and statutes do not modify or decouple from its implicit adoption of Code § 368(a)(1)(F). Therefore, provided the transaction constitutes a reorganization within the meaning of Code § 368(a)(1)(F), Montana will conform to the federal income tax treatment of the transaction.

Montana's corporate income tax regulations and statutes decouple from the provisions of Code § 381(a)(1) as they relate to NOLs. Therefore, any 2025 Montana NOL generated by Mutual prior to the 2025 merger date would be extinguished by the merger.

**Scope of Opinion**

The scope of this opinion is expressly limited to the Montana income tax consequences of the proposed transaction in connection with the representations and assumptions stated above. We have further assumed the absence of adverse facts not apparent from the Federal Opinion and representations provided. In issuing our opinion, we have assumed that Mutual will comply with the terms and conditions of the conversion and that the various representations and warranties that are provided to us are accurate, complete, true, and correct. Accordingly, we express no opinion concerning the effect, if any, of variations from the foregoing. We specifically express no opinion concerning tax matters related to the Agreement under federal income tax law.

Our opinion, as stated above, is based upon the analysis of the Montana income tax statutes and administrative code, current administrative rulings, notices and procedures. Such laws, regulations, administrative rulings, notices and procedures are subject to change at any time and such changes may be retroactively effective. If so, our views as set forth may be affected and may not be relied upon. This opinion is as of the date hereof, and we disclaim any obligation to advise you of any change in any matter considered herein after the date hereof. In rendering our opinion, we have assumed that the entities identified in the Agreement will at all times comply with applicable state and federal laws and the factual representations of Mutual and Stock Bank. In addition, we have assumed that the activities of the entities identified in the Agreement will be conducted strictly in accordance with the Plan, the Agreement, and the Registration Statement. Further, any variation or differences in facts or representations recited herein, for any reason, could affect our conclusions, possibly in an adverse manner, and make them inapplicable.

We emphasize that the outcome of litigation cannot be predicted with certainty and, although we have attempted in good faith to opine as to the probable outcome of the merits of each tax issue with respect to which an opinion was requested, there can be no assurance that our conclusions would be adopted by the government, taxing authorities, or a court. This letter represents our views as to interpretation of existing law and, accordingly, no assurance can be given that the Montana Department of Revenue upon audit will agree with the above analysis.

We hereby consent to the filing of this opinion as an exhibit to the Registration Statement. We also hereby consent to the references to this firm in the prospectus which is a part of the Registration Statement.

If you have any questions regarding this letter, please contact Ryan Lindsay at 406.457.7263.

Sincerely,

/s/ Wipfli LLP

Wipfli LLP

Enc.

## Exhibit 10.1

**Exhibit 10.1**

**CHIEF EXECUTIVE OFFICER EMPLOYMENT AGREEMENT**

This Chief Executive Officer (CEO) Employment Agreement (the "<u>Agreement</u>") is made effective as of January 21, 2025 (the "<u>Effective Date</u>") by and between **Pioneer Federal Savings and Loan Association** ("<u>Pioneer</u>"), and **Phillip K. Willett** ("<u>Executive</u>").

**RECITALS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**A.** Pioneer
 is a state chartered savings association with locations in Dillon, Montana and Deer Lodge,
 Montana;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**B.** Executive
 is currently the President and Chief Executive Officer (" <u>CEO</u> ") of Pioneer
 and a voting member of the Board of Directors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**C.** Pioneer
 wishes to retain Executive as President and Chief Executive Officer (" <u>CEO</u> ")
 of Pioneer;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**D.** Pioneer
 and Executive hereby exercise the right to amend and extend the Executive Employment Agreement
 dated August 3, 2017; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**E.** Pioneer
 and Executive are willing to enter into this Agreement on the terms set forth herein.

NOW, THEREFORE, in consideration of the material advantages accruing to each party from the employment of Executive with Pioneer, and in further consideration of the mutual covenants and conditions contained herein, the receipt and sufficiency of which is hereby acknowledged by each party, the parties agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.** **<u>Employment, Term and Extension</u>**. Pioneer hereby agrees to continue employment of Executive as President and CEO starting February 1, 2025 ("<u>Start Date</u>"). This Agreement is a two year contract and will terminate on the earlier of: **(a)** the second anniversary of the Start Date, unless extended pursuant to the provisions of this Agreement for an additional two-year employment period; or **(b)** the termination of Executive's employment under the Agreement. This Executive Employment Agreement may be extended in writing prior to the Termination Date for a period of two years, if approved and accepted by both parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.** **<u>Duties of Employment</u>**. Executive shall serve as President and CEO of Pioneer in a full-time capacity with the duties, responsibilities, powers, and authority customarily associated with such position and in accordance with industry standards. Attached as Schedule "A" is a job description that summarizes the principal duties and responsibilities of Executive, which job description is subject to directives of the Board. Executive shall diligently, competently, and faithfully perform all such duties and shall use Executive's best efforts to promote the interests of Pioneer. The Executive shall report directly to Pioneer's Board of Directors (the "<u>Board</u>"), and Executive's service shall be subject at all times to the direction and control of the Board. Nothing in this Agreement shall preclude Executive, with the prior approval of the Board, from devoting reasonable periods of time required for **(a)** serving as a director or member of a committee of any organization involving no conflict of interest with Pioneer, or **(b)** engaging in charitable, religious and community activities, provided that such directorships, memberships or activities do not materially interfere with the performance of his duties hereunder.

Pioneer Savings and Loan – Executive Employment Agreement - 1

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.** **<u>Compensation and Benefits</u>**. Executive's compensation and benefits shall be as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**a.** **Base Salary**. Pioneer shall pay Executive an annual base salary in the amount of One Hundred
 Sixty-Three Thousand Six Hundred Eleven and 00/100 Dollars ($163,611) (" <u>Base Salary</u> ").
 The Base Salary shall be processed and paid as part of Pioneer's normal payroll and
 will be subject to withholdings and deductions required by taxing authorities. All Base Salary
 shall be prorated as of the Start Date and as of the termination of this Agreement. The Base
 Salary may be subject to negotiation annually by request of either Party to this Agreement,
 and any changes to the Base Salary shall be confirmed in writing and attached to this Agreement
 and incorporated herein by reference to this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**b.** **Discretionary Performance Bonus**. Executive shall be eligible for participation in a discretionary bonus
 pool determined as a result of individual performance as well as Pioneer's performance
 (a " <u>Performance Bonus</u> "). The Board evaluates the operating results of
 Pioneer at calendar year end and, if the Board decides to award a discretionary bonus, evaluates
 the amount of such bonus for each full-time employee, which bonus amount is paid out at the
 end of every calendar year. To be eligible to receive a Performance Bonus, Executive must
 be actively employed by Pioneer on the date the Performance Bonus is payable from Pioneer
 to Executive.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**c.** **Benefits**.
 During the term of this Agreement, Executive will receive the benefits and paid time off
 set forth in Pioneer's Employment Handbook (" <u>Employee Handbook</u> ")
 as may be amended from time to time (collectively, the " <u>Benefits</u> ").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**d.** **Vacation Time**. Executive has been credited with five (5) years of experience from Executive's
 original date of employment for purposes of Pioneer's paid vacation policy as set forth
 in Pioneer's Employee Handbook as may be amended from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**e.** **Full Compensation**. The Base Salary and Performance Bonus (if any) are hereinafter collectively
 referred to as the " <u>Compensation</u> ". Executive understands and agrees that
 the Compensation, Benefits and Vacation constitute all remuneration to which Executive is
 entitled for Executive's services to Pioneer or otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.** **<u>Termination</u>**. The parties agree that Executive's employment shall terminate upon any of the following events:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**a.** Executive's
 death or disability that prevents Executive from performing Executive's job duties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**b.** For
 "Cause", which refers to termination of Executive's employment on account
 of, but not limited to, the following reasons: (i) personal dishonesty; (ii) incompetence;
 (iii) willful misconduct; (iv) breach of fiduciary duty involving personal profit;
 (v) intentional failure to perform stated duties; (vi) willful violation of any
 law, rule, or regulation (other than traffic violations or similar offenses) or final cease-and
 desist orders; (vii) material breach of any provision of this Agreement; (viii) Executive
 engages in continuing and non-remedied substance abuse involving alcohol or illegal drugs
 having an adverse effect on the performance of Executive's services; or (ix) any
 termination required by Section 5.

Pioneer Savings and Loan – Executive Employment Agreement - 2

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**c.** Executive's
 voluntary resignation, in which event Executive agrees to provide Pioneer with a minimum
 of thirty (30) days prior written notice in the event of any such voluntary resignation and
 any Performance Bonus which would have potentially become due during the period following
 any such notice shall not be due or payable to Executive.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**d.** Upon
 thirty (30) days' prior written notice from Pioneer to Executive in the event that
 any federal, state or local government or agency passes, issues or promulgates any law, rule,
 regulation, standard or interpretation at any time while this Agreement is in effect that
 prohibits, restricts, limits or in any way substantially changes the arrangement set forth
 in this Agreement, or which otherwise significantly affects Pioneer's rights or obligations
 hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.** **<u>Regulatory Limitations</u>**. In the event any of the provisions of this Agreement conflict with the terms of this Section 5, this Section 5 shall prevail.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**a.** Pioneer
 may terminate Executive's employment at any time, but shall be required to pay all
 Compensation remaining due to Executive under this Agreement, unless Executive is terminated
 by the Board for a reason set forth in Section 4 or subsections 5(b) through (e).
 In the event Executive's employment is terminated prior to any elective extension of
 this Executive's Employment Agreement, as provided in Section 1, that election
 shall be void and shall not be considered due to Executive.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**b.** If
 Executive is suspended from office and/or temporarily prohibited from participating in the
 conduct of Pioneer's affairs by a notice served under Section 8(e)(3) or
 8(g)(l) of the Federal Deposit Insurance Act, 12 U.S.C. Section 1818(e)(3) or
 (g)(l), the Bank's obligations under this Agreement shall be suspended as of the date
 of service, unless stayed by appropriate proceedings. If the charges in the notice are dismissed,
 Pioneer may, in its discretion: **(i)** pay Executive all or part of the Compensation
 withheld while its contract obligations were suspended; and **(ii)** reinstate (in
 whole or in part) any of the obligations which were suspended.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**c.** If
 Executive is removed and/or permanently prohibited from participating in the conduct of Pioneer's
 affairs by an order issued under Section 8(e)(4) or 8(g)(l) of the Federal
 Deposit Insurance Act, 12 U.S.C. Section 1818(e)(4) or (g)(l), all obligations
 of Pioneer under this Agreement shall terminate as of the effective date of the order, but
 vested rights of the contracting parties shall not be affected.

Pioneer Savings and Loan – Executive Employment Agreement - 3

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**d.** If
 Pioneer is in default as defined in Section 3(x)(l) of the Federal Deposit Insurance
 Act, 12 U.S.C. Section 1813(x)(l), all obligations under this Agreement shall terminate
 as of the date of default, but this provision shall not affect any vested rights of the contracting
 parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**e.** All
 obligations under this Agreement shall terminate, except to the extent determined that continuation
 of the contract is necessary for the continued operation of the institution: (i) by
 the Commissioner of the Montana Division of Banking and Financial Institutions (or their
 designee) at the time the FDIC enters into an agreement to provide assistance to or on behalf
 of the Bank under the authority contained in Section 13(c) of the Federal Deposit
 Insurance Act, 12 U.S.C. Section 1823(c), or (ii) by the Commissioner of the Montana
 Division of Banking and Financial Institutions (or their designee) at the time the Commissioner
 (or their designee) approves a supervisory merger to resolve problems related to the operations
 of Pioneer or when Pioneer is determined by the Commissioner (or their designee) to be in
 an unsafe or unsound condition. Any rights of the parties that have already vested, however,
 shall not be affected by such action.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**f.** Any
 payments made to Executive pursuant to this Agreement, or otherwise, are subject to and conditioned
 upon their compliance with state and federal law applicable to Pioneer as they may change
 from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.** **<u>Confidentiality and Non-Compete/Disparagement</u>**. Executive acknowledges and agrees as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**a.** **Confidential Information**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Executive
 understands that in the course of his employment by Pioneer, Executive will receive or have
 access to confidential information concerning the business of the Bank and which Pioneer
 desires to protect. Such confidential information shall be deemed to include, but not be
 limited to, Pioneer's customer and prospective customer lists, loan lists and information,
 and employee lists, including, if known, personnel information and data. Executive agrees
 that, unless as otherwise may be required by law, he will not at any time during the period
 ending five (5) years after termination of the Agreement, reveal to anyone outside Pioneer
 or use for his own benefit any such information without specific written authorization by
 Pioneer. Executive further agrees not to use any such confidential information in competing
 with Pioneer at any time during or in the five (5) year period immediately following
 termination of employment with Pioneer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) With
 respect to confidential information that constitutes trade secrets pursuant to applicable
 law, Executive's nondisclosure obligations shall continue for so long as such confidential
 information shall continue to constitute trade secrets. Notwithstanding any other provision
 of this Agreement, Executive's nondisclosure obligations with respect to nonpublic
 information of third parties shall continue for so long as the confidentiality of such information
 is to be maintained pursuant to applicable law.

Pioneer Savings and Loan – Executive Employment Agreement - 4

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) If
 Executive is required to disclose any confidential information pursuant to a valid and properly
 issued subpoena, Executive shall notify Pioneer and shall provide Pioneer with thirty (30)
 days prior written notification of the required disclosure and allow Pioneer to seek legal
 remedy preventing the disclosure.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Notwithstanding
 anything to the contrary herein, Executive hereby notified in accordance with the Defend
 Trade Secrets Act of 2016 that Executive will not be held criminally or civilly liable under
 any federal or state trade secret law for the disclosure of a trade secret that: **(a)** is
 made (i) in confidence to a federal, state, or local government official, either directly
 or indirectly, or to an attorney; and (ii) solely for the purpose of reporting or investigating
 a suspected violation of law; or **(b)** is made in a complaint or other document
 that is filed under seal in a lawsuit or other proceeding.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) Executive
 is further notified that if Executive files a lawsuit for retaliation by an employer for
 reporting a suspected violation of law, Executive may disclose the employer's trade
 secrets to Executive's attorney and use the trade secret information in the court proceeding
 if Executive: (a) files any document containing the trade secret under seal; and (b) does
 not disclose the trade secret, except pursuant to court order.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**b.** **Non-Compete**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Upon
 termination of Executive's employment with Pioneer for any reason, Executive covenants
 and agrees that he will not at any time during the period of one (1) year from and after
 such termination (" <u>Non-Compete Period</u> ") directly or indirectly become
 interested, as an individual, partner, principal, agent, clerk, employee, stockholder, officer,
 director, trustee, or in any other capacity whatsoever, except as a nominal owner of stock
 of a public corporation, in any other business in the counties of Powell or Beaverhead in
 Montana (" <u>Restricted Area</u> ") that competes with the business of Pioneer
 as it exists at the time of Executive's termination, or engage or participate in, directly
 or indirectly (whether as an officer, director, employee, partner, consultant, holder of
 an equity or debt investment, lender or in any other manner or capacity), or lend his name
 (or any part or variant thereof) to, any business in any such county that is, or as a result
 of the Executive's engagement or participation would become, competitive with any aspect
 of the business of Pioneer as it exists at the time of Executive's termination; ownership,
 in the aggregate, of less than five percent (5%) of the outstanding shares of capital stock
 of any corporation shall not constitute a violation of the foregoing provision.

Pioneer Savings and Loan – Executive Employment Agreement - 5

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Executive
 hereby acknowledges that his services are unique and extraordinary, and are not readily replaceable,
 and hereby expressly agrees that Pioneer, in enforcing the covenants contained in Section 6
 herein, in addition to any other remedies provided for herein or otherwise available at law,
 shall be entitled in any court of equity having jurisdiction to an injunction restraining
 him in the event of a breach, actual or threatened, of the agreements and covenants contained
 in this Section 6 without any requirement to post a bond or other surety.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Executive
 acknowledges that the provisions of this Agreement, including without limitation the provisions
 of this Section 6, are reasonable and necessary for the protection of legitimate business
 interests of Pioneer, and shall not prevent Executive from becoming gainfully employed after
 his termination as an employee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**c.** **Non-Disparagement**.
 Executive shall not disparage or defame Pioneer in any respect or make any derogatory comments,
 whether written or oral, that relates to Pioneer or its business, related activities, owners,
 members, or affiliated entities or the relationship between Pioneer and Executive.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**d.** **Non-Solicitation**.
 Executive recognizes that Pioneer's workforce is a vital part of its business. Therefore,
 Executive agrees that during the Non-Compete Period Executive will not solicit, directly
 or indirectly, any employee to leave his or her employment with Pioneer. For purposes of
 this Agreement, the phrase "shall not solicit, directly or indirectly," includes,
 that without limitation, Executive: (i) shall not identify any Pioneer employees to
 any third party as a potential candidate for employment, such as by disclosing the names,
 backgrounds and qualifications of any Pioneer employees; and (ii) shall not, personally
 or through any other person, approach, recruit or otherwise solicit employees of Pioneer
 to work for any other employer. This provision does not preclude Executive from providing
 recommendations upon request by an employee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.** **<u>Return of Property</u>**. Executive agrees that upon termination or expiration of this Agreement Executive shall return to Pioneer all, documents, files, office supplies and any other personal property belonging to Pioneer that is in Executive's possession or under Executive's control.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.** **<u>Employment Handbook</u>**. Pioneer and Executive agree that the Employee Handbook adopted July 15, 1997, as amended, shall supplement and govern the terms of Executive's employment, except to the extent the terms of the Employee Handbook do not apply to Executive or are in direct conflict with the terms of this Agreement. In addition, Pioneer and Executive agree that any amendments to the Employee Handbook that are made by Pioneer from time to time after the date of this Agreement shall supplement and govern the terms of Executive's employment, except to the extent the terms of such amendments do not apply to Executive or are in direct conflict with the terms of this Agreement. If there is any direct conflict between the terms of this Agreement and the Employee Handbook, as amended, the terms of this Agreement shall govern.

Pioneer Savings and Loan – Executive Employment Agreement - 6

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.** **<u>Assignment</u>**. Executive acknowledges that the services to be rendered by Executive for Pioneer pursuant to this Agreement are unique and personal. Accordingly, Executive may not assign any of Executive's rights or delegate any of Executive's duties or obligations under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10.** **<u>Severability</u>**. Whenever possible, each prov1s10n of this Agreement will be interpreted in such manner as to be effective and valid to the fullest extent permitted by law. If any provision of this Agreement is determined to be invalid, illegal or unenforceable, **(a)** the validity, legality and enforceability of the remaining provisions of this Agreement are not affected or impaired in any way; and **(b)** the parties shall negotiate in good faith in an attempt to agree to another provision (instead of the provision held to be invalid, illegal or unenforceable) that is valid, legal and enforceable and carries out the parties' intentions as closely as possible to effect the original intents and purposes of this Agreement. If any court of competent jurisdiction determines that any provision of this Agreement is unenforceable because of the duration or geographic scope of that provision, the court has the power to reduce the duration or geographic scope of that provision, as the case may be, so that in its reduced form the provision is enforceable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**11.** **<u>Entire Agreement</u>**. This Agreement constitutes the entire agreement between the parties, and supersedes any and all other agreements or contracts, either oral or written. There are no other independent, collateral, or additional written or oral agreements between the parties or obligations to be performed by the parties which are not expressed or referenced (e.g. written employment policies incorporated by reference) in this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**12.** **<u>Amendments</u>**. This Agreement may not be amended or modified except by a written agreement executed by all parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**13.** **<u>Governing Law</u>**. This Agreement shall be governed by and construed in accordance with the laws of the State of Montana. The parties agree that all actions or proceedings arising in connection with this Agreement shall be tried and litigated only in the state or federal courts of Montana, to the exclusion of all other courts, and that the only proper venue shall be Beaverhead County, Montana. Each party hereby irrevocably submits to the personal jurisdiction of such courts.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**14.** **<u>Equal Parties</u>**. The parties have participated jointly in the negotiation and drafting of this Agreement. If an ambiguity or question of intent or interpretation arises, then this Agreement shall be construed as if drafted jointly by the parties, and no presumption or burden of proof shall arise favoring or disfavoring any of the parties by virtue of the authorship of any of the provisions of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**15.** **<u>Rights upon Termination</u>**. Upon termination of this Agreement, all rights and obligations of the parties under this Agreement shall cease except those rights and obligations that have accrued or expressly survive termination, including but not limited to Sections 5, 6, 7, 13, and 14.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**16.** **<u>Notices</u>**. All notices, requests, consents and demands under this Agreement shall be effective upon receipt when delivered personally or mailed by registered or certified mail (in each case, return receipt requested and postage prepaid) or by postage prepaid first class mail to the address set forth below for notices to Executive (or the most recent address Executive has provided to Pioneer) and to the address of the then current Board Chair of Pioneer for notices to Pioneer. Notices given by mail shall be deemed received two (2) business days after mailing.

Pioneer Savings and Loan – Executive Employment Agreement - 7

Executive: Phillip K. Willett <br> [personally identifiable <br> information removed]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**17.** **<u>Counterparts</u>**. This Agreement may be executed in counterparts (including by means of telecopied, facsimile or pdf or other electronic signature pages), any one of which need not contain the signatures of more than one party, but all such counterparts taken together will constitute one and the same agreement. Delivery of an executed counterpart of this Agreement by facsimile or e-mail of a pdf or similar electronic file will be equally as effective as delivery of an original executed counterpart of this Agreement.

IN WITNESS WHEREOF, the parties have executed this Agreement as of the Effective Date.

---

| | | | |
|:---|:---|:---|:---|
| **EXECUTIVE:** | **EXECUTIVE:** | **EMPLOYER:** | **EMPLOYER:** |
|  |  | PIONEER FEDERAL SAVINGS AND LOAN ASSOCIATION | PIONEER FEDERAL SAVINGS AND LOAN ASSOCIATION |
| */s/ Phillip K. Willett* | */s/ Phillip K. Willett* | By: | /s/ Spence Hegstad |
| **Phillip K. Willett** | **Phillip K. Willett** | **Phillip K. Willett** | **Phillip K. Willett** |
|  |  | Its: | Chairman |
| Dated: | 1/21/25 | Dated: | 1/21/25 |

---

Pioneer Savings and Loan – Executive Employment Agreement - 8

## Exhibit 10.2

**Exhibit 10.2**

**COMPANY NAME**

**SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN AGREEMENT**

This Supplemental Executive Retirement Plan Agreement ("Agreement") is made this ____ of _________, 2025, by and between Pioneer State Bank, a Montana state-charted bank, hereinafter referred to as "Bank," and Phillip K. Willett, hereinafter referred to as "Executive."

WHEREAS, the Executive has performed valuable services for the Bank; and

WHEREAS, the Executive currently serves as President, Chief Executive Officer of the Bank, and the Bank wishes to benefit from the Executive's continued service to the continued profit of the Bank;

NOW, THEREFORE, in order to reward and encourage such continued loyal and valuable service, and to assist the Executive in adequately planning for the financial demands of retirement, and to provide also for the Executive's family's security in the event of disability or death, by providing the benefits described in Article I of the Agreement "Benefits", the parties agree to the terms and conditions of the Agreement, as follows.

**ARTICLE I**

A. <u>Normal Retirement Benefit</u>. Subject to the conditions hereof, the Bank shall commence payment to the Executive of retirement
benefits under the Agreement of $150,000 per year to be paid in equal monthly installments for a continuous period of ten (10) years
("Normal Retirement Benefit"), commencing on the first day of the first month immediately following the Executive's
Separation from Service with the Bank on or after the Executive attains age 62 ("Retirement" and "Normal Retirement
Age", respectively).

B. <u>Pre-Retirement Disability Benefit</u>. If the Executive experiences a Disability prior to Retirement, the Bank shall pay to the
Executive a lump sum equal to the Executive's liability balance under the Agreement accrued and expensed by the Bank under Generally
Accepted Accounting Principles ("Accrued Benefit") on the first day of the first month immediately following the Executive's
Disability.

C. <u>Voluntary Separation or Termination without Cause prior to Retirement</u>. If the Executive voluntarily Separates from Service
with or is terminated by the Bank without Cause prior to the Executive's Retirement, the Bank shall commence payment to the Executive
of the Executive's vested Normal Retirement Benefit commencing on the first day of the first month immediately following the Executive's
Normal Retirement Age.

D. <u>Death During Benefits Payout</u>. In the event that the Executive should die after commencement of payment of the Executive's
Benefits under Sections I. A., B., or C., hereof, but before receiving the full Benefits thereunder, the Bank shall pay a lump sum equal
to the present value of the Executive's remaining Benefits to the Executive's Beneficiary (calculated using a 5% discount
rate), no later than December 31<sup>st</sup> of the calendar year following the year of the Executive's death.

E. <u>Pre-Retirement Death Benefit</u>. If the Executive dies prior to the Executive's Retirement, the Bank shall pay a lump sum
equal to the Present Value of the Executive's Accrued Benefit to the Executive's Beneficiary, no later than December 31<sup>st</sup>
of the calendar year following the year of the Executive's death.

**ARTICLE II**

A. <u>Vesting of Benefits</u>. Subject to forfeiture of Benefits under Section II.B. hereof, the Executive
shall be vested and have nonforfeitable rights to any and all Benefits, to be paid under this Agreement as follows:

&nbsp;&nbsp;&nbsp;&nbsp;1. The Executive shall vest and be entitled to 0% of Benefits hereunder until he attains age 60;

&nbsp;&nbsp;&nbsp;&nbsp;2. The Executive shall vest and be entitled to 100% of Benefits hereunder upon attainment of age 60, so long
as the Executive does not experience a termination of employment with the Bank prior to such date; and

&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Death, Disability, or Change in Control</u>. Notwithstanding the foregoing, upon the Executive's
death, Disability, or a Change in Control prior to a termination of Executive's employment with the Bank, the Executive shall become
one hundred percent (100%) vested in the Benefits under the Agreement.

B. <u>Forfeiture of Benefits Upon Termination for Cause</u>. Notwithstanding anything to the contrary contained
in the Agreement the Executive shall forfeit all rights to any and all Benefits to be paid to him under this Agreement if the Executive's
employment is terminated by the Bank for Cause as defined herein . For purposes of the Agreement, "Cause" means the
termination of Employee's employment upon (as determined by the Bank): (i) Employee's breach of Employee's fiduciary
duty or commission of any material act of dishonesty or disloyalty or violation of law involving the Bank or PSB Financial, Inc.,
the parent bank holding company of the Bank ("Holding Company"); (ii) Employee's commission of a crime, the circumstances
of which substantially relate to Employee's employment duties with the Bank or Holding Company; (iii) Employee's willful
engagement in conduct which is materially injurious to the Bank or Holding Company; (iv) Employee's failure to follow reasonable
instructions from the Bank or the Bank's Board of Directors (the "Board") concerning the operations or business of the
Board or Holding Company; (v) Employee's breach of any agreement between Employee and the Bank or Holding Company, including
without limitation, the Restrictive Covenant Agreement or any other non-disclosure, non-competition or non-solicitation agreement; (vi) Employee's
willful violation of any material written policies or procedures of the Bank or Holding Company (including without limitation any sexual
harassment or misconduct policy); (vii) Employee's misappropriation of funds or property of the Bank or Holding Company; or
(viii) Employee's attempt to obtain a personal profit from any transaction in which the Bank or Holding Company has an interest,
and which constitutes a corporate opportunity of the Bank or Holding Company, or which is adverse to the interests of the Bank or Holding
Company, unless the transaction was approved in writing by the Board after full disclosure of all details relating to such transaction. 
For purposes of this definition, no act, or failure to act, on Employee's part will be deemed "willful" unless done,
or omitted to be done, by Employee in bad faith.

C. <u>No Acceleration of Benefits</u>. The benefits provided for under this Agreement may not be accelerated and paid at an earlier time
than specified in Article I, neither at the option of the Executive nor at the discretion of the Bank or any other person.

**ARTICLE III**

A. <u>Restrictive Covenant Agreement</u>. As a condition of receiving Benefits under this Agreement,
Executive agrees to execute the "Restrictive Covenant Agreement", attached hereto as <u>Exhibit A</u> and incorporated
herein by reference.

B. <u>Effect of Breach</u>. In the event that Executive breaches any provision of the Restrictive Covenant Agreement or any other
restrictive covenant agreement between the Bank and Executive which is entered into subsequent to this Agreement, Executive agrees that
the Bank may suspend or cease all additional payment of Benefits to Executive under this Agreement, recover from Executive any damages
suffered as a result of such breach and recover from Executive any reasonable attorneys' fees or costs it incurs as a result of
such breach. In addition, Executive agrees that the Bank may seek injunctive or other equitable relief, without the necessity of
posting bond, as a result of a breach by Executive of any provision of the Restrictive Covenant Agreement.

**ARTICLE IV**

A. <u>Inalienability of Benefits</u>. No assignment, pledge, hypothecation, collateralization, lien or attachment of any of the Benefits
payable pursuant to the provisions of this Agreement shall be valid or recognized by the Bank. None of the payments provided for by this
Agreement shall be subject to seizure for payment of any debts or judgments against the Executive or any beneficiary, nor shall the Executive,
his personal representative, heir or any beneficiary or other successor thereto have the right to transfer, modify, anticipate, or in
any way encumber any rights or benefits under this Agreement.

B. <u>Amendment</u>. During the lifetime of the Executive, this Agreement may be altered, amended, or revoked
at any time in whole or in part by written agreement of the parties. Notwithstanding the foregoing sentence, no alteration, amendment,
or revocation of this Agreement may be made in a manner that would cause the benefits payable hereunder to be accelerated or to be deferred
in a manner that would cause this Agreement not to comply with IRC §409A. Notwithstanding the foregoing, to the extent that
any provision hereof would otherwise result in the Executive being subject to payment of the additional tax, interest and tax penalty
under Section 409A of the Code, the Bank shall amend this Agreement in a manner that brings it into compliance with Section 409A
of the IRC. Further, notwithstanding anything else in this Agreement to the contrary, the Bank reserves the unilateral right to terminate
this Agreement in accordance with Section Treasury Regulations Section 1.409A-3(j)(4)(ix).

C. <u>Designation of Beneficiary</u>. The Executive may from time to time designate any person or persons (who may be designated contingently
or successively and who may be an entity other than a natural person) as the "Beneficiary" or "Beneficiaries"
to whom payments are to be made under the Agreement if the Executive dies before receipt of all amounts that become due hereunder. Each
beneficiary designation shall be in the form prescribed by the Bank and will be effective only when filed with the Bank during the Executive's
lifetime. Each beneficiary designation filed with the Bank will cancel all beneficiary designations previously filed with the Bank. In
the absence of any designation of a Beneficiary, or if no designated Beneficiary survives the Executive, the Bank shall distribute any
amounts due hereunder to the Executive's surviving spouse, or if there is no surviving spouse, to the personal representative of
the Executive's estate.

D. <u>Incapacity of Recipient</u>. If the Bank finds that any person to whom payment is to be made hereunder
is unable to care for their affairs due to illness or accident, or is a minor, any payment due may be paid to the spouse, child, parent,
brother or sister, guardian, authorized agent under a durable power of attorney for financial matters, or to any person deemed by the
Bank to have incurred expense for such person otherwise entitled to payment, in accordance with the applicable provisions of this Agreement.
Any such payment shall be a complete discharge of the Bank's liabilities under this Agreement.

E. <u>Unsecured Promise</u>. The provisions of this Agreement represent the unsecured promises of the Bank. The Executive understands
and acknowledges that the benefits herein are not secured by any rights to specific assets of the Bank.

F. <u>Employee Retirement Income Security Act ("ERISA"); Administration</u>. For purposes of Title I of ERISA, the arrangement
described in this Agreement is an unfunded excess benefit plan for a select highly compensated employee. The named fiduciary and "Plan
Administrator" of this Agreement is the Bank. As named Fiduciary and Plan Administrator, the Bank shall be responsible for the management,
control and administration of the Agreement as established herein. The Bank may delegate to others certain aspects of the management and
operation responsibilities of the Agreement, including the employment of advisors and the delegation of ministerial duties to qualified
individuals. The good faith interpretation and construction of any provision or action taken under this Agreement by the Bank shall be
binding and conclusive on all persons for all purposes.

G. <u>Claims Procedure and Arbitration</u>. Any claim under the Agreement should be filed in writing
with the Plan Administrator, and the Plan Administrator shall respond to such claim in writing, in plain understandable language, making
detailed and specific reference to material facts and to the terms of this Agreement, and explaining how and when benefits will be paid,
or why they will not be paid, and outlining timely and reasonable procedures for appeal. In the event that benefits under this Agreement
are not paid to the Executive (or to the Executive's Beneficiary in the case of the Executive's death) and the Executive or
their Beneficiary believe they are entitled to receive such benefits, then a written claim must be made to the Plan Administrator within
60 days from the date payments are refused. The Plan Administrator shall review the written claim and if the claim is denied, in whole
or in part, it shall provide in writing within 90 days of receipt of such claim the specific reasons for such denial, reference to the
provisions of the Agreement upon which the denial is based and any additional material or information necessary to perfect the claim.
Such written notice shall further indicate the additional steps to be taken by claimants if a further review of the claim denial is desired.
A claim shall be deemed denied if the Plan Administrator fails to take any action within the aforesaid 90-day period. If claimants desire
a second review, they shall notify the Plan Administrator in writing within 60 days of the first claim denial. Claimants may review
the Agreement or any documents relating thereto and submit any written issues and comments they may feel appropriate. In its sole discretion,
the Plan Administrator shall then review the second claim and provide a written decision within 60 days of receipt of such claim. This
decision shall likewise state the specific reasons for the decision and shall include reference to specific provisions of the Agreement
upon which the decision is based. If either party to this Agreement believes there are unresolved monetary issues regarding this Agreement,
either party may submit the issues for mediation or arbitration. The rules and procedures of arbitration to be utilized are
those of the American Arbitration Association.

H. <u>Withholding</u>. The Bank shall deduct from any payments made to the Executive or the Executive's designated beneficiary
or beneficiaries under this Agreement any federal, state, local, or other taxes, social security or charges, if any, which the Bank is
required to withhold under applicable law. Further, the Bank may deduct from any payments it makes to the Executive outside of this Agreement
the amount to satisfy the Bank's Federal Insurance Contributions Act ("FICA") tax withholding obligation in the taxable
year that any portion of the Executive's benefit under the Agreement is no longer subject to a substantial risk of forfeiture as
such term is defined under the FICA Treasury Regulations. The Bank shall have the right to rely upon an opinion of legal counsel or its
independent auditors as to the amount to be so withheld. If for any reason, the Bank does not withhold taxes and/or social security as
required by the applicable law, by participating in the Agreement the Executive agrees that the Bank may collect any unpaid taxes or social
security from any other payments (including but not limited to wages, expenses and bonuses) that may be payable hereunder, and to the
extent that these are insufficient to meet the full tax or social security, the Executive agrees to indemnify the Bank for such amounts.

I. <u>IRC Section 409A</u>. The Bank intends that any amounts payable under this Agreement
comply with the provisions of Section 409A of the Internal Revenue Code of 1986, as amended ("IRC"), and the guidance
promulgated thereunder so as not to subject the Executive to the payment of the additional tax, interest and any tax penalty which may
be imposed under IRC Section 409A, and the provisions of this Agreement shall be interpreted in a manner consistent with such intent.
Accordingly, the following definitions and rules shall apply to any and all Benefits under the Agreement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) "Change in Control" means shall mean the occurrence of any of the following events:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Any "person" (as such term is used in Section 3(a)(9) of the Securities Exchange Act of 1934, as amended (the "Exchange Act")), that than Holding Company in the case of the Bank or any employee benefit plan sponsored or maintained by the Holding Company or the Bank, becomes, after the date hereof, the "beneficial owner" (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Bank or Holding Company representing fifty percent (50%) or more of the then-outstanding voting securities of the Bank or Holding Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) when any person, excluding any employee benefit plan sponsored or maintained by the Company or any Affiliate of the Company (including any trustee of such plan acting as trustee), directly or indirectly, becomes the "beneficial owner" (as defined in Rule 13d-3 under the Exchange Act, as amended from time to time), of securities of the Company or the Bank representing 50% or more of the combined voting power of the Company's or the Bank's then outstanding securities with respect to the election of the directors of the Company or the Bank;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) when, during any period of 24 consecutive months, the individuals who, at the beginning of such period, constitute the Board (the "Incumbent Directors") cease for any reason other than death to constitute at least a majority thereof, provided, however, that a director who was not a director at the beginning of such 24-month period shall be deemed to have satisfied such 24-month requirement (and be an Incumbent Director) if such director was elected by, or on the recommendation of or with the approval of, at least a majority of the directors who then qualified as Incumbent Directors either actually (because they were directors at the beginning of such 24-month period) or by prior operation of this provision;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) the purchase of substantially all of the assets or merger, consolidation of the Company or Bank by an entity other than a 50% or more owned Affiliate of the Company, except in the case of a transaction pursuant to which, immediately after the transaction, the Company's shareholders immediately prior to the transaction, either directly or indirectly, own at least 60% of the combined voting power of the surviving entity's then outstanding securities with respect to the election of the directors of such entity in roughly the same proportions as prior to the transaction; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) the liquidation or dissolution of the Company or the Bank.

Notwithstanding the foregoing, a Change in Control shall not be deemed to occur solely because fifty percent (50%) or more of the combined voting power of the then outstanding securities of the Company or the Bank are acquired by: (1) a trustee or other fiduciary holding securities under one or more executive benefit plans maintained for executives of the Bank or the Company, or (2) any entity which, immediately prior to such acquisition, is owned directly or indirectly by the stockholders of the Company in the same proportion as their ownership of Company stock immediately prior to such acquisition.

The determination as to whether a Change in Control or an agreement to effect a Change in Control has occurred shall be made by the Administrator and shall be conclusive and binding on all interested parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) "Disability" means a disability as determined by the Social Security Administration or a claims administrator of an accident
and health plan covering employees of the Bank, that the Executive is (i) unable to engage in any substantial gainful activity by
reason of any medically determinable physical or mental impairment that can be expected to result in death or can be expected to last
for a continuous period of not less than 12 months or (ii) by reason of any medically determinable physical or mental impairment
that can be expected to result in death or can be expected to last for a continuous period of not less than 12 months, receiving income
replacement benefits for a period of not less than three months under an accident and health plan covering employees of the Bank.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) "Separation from Service" with the Bank means the date upon which the Executive and Bank reasonably anticipate that (a) no
further services will be performed by the Executive for the Bank after such date (whether as an employee or as an independent contractor),
or (b) the level of bona fide services the Executive will perform after such date (whether as an employee or as an independent contractor)
is reduced to no more than fifty percent (50%) of the average level of bona fide services performed (whether as an employee or as an independent
contractor) over the immediately preceding 36-month period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Whenever Benefits under this Agreement specify a payment period with reference to a number of days or payment period that may span
two calendar years, the actual date of payment within the specified period shall be within the sole discretion of the Bank.

J. <u>Binding on Heirs, etc</u>. This Agreement is solely between the Bank and the Executive and shall be binding upon the parties
to this Agreement, their heirs, assigns, successors, executors, and administrators.

K. <u>Notices</u>. Any notice to be given by the Executive hereunder shall be sent by registered or certified mail to the Bank at 202
North Main Street, Deer Lodge, Montana 59725 , and any notice from the Bank
to the Executive or the Executive's Beneficiary shall be sent by registered or certified mail to the Executive's or the
Executive's Beneficiary's personal address or delivered personally to the Executive or their Beneficiary. Either party may
change the address to which notices are to be addressed by notice in writing given to the other in accordance with the terms hereof.

L. <u>Governing Law</u>. This Agreement and all distributions under it shall be governed by the laws of the State of Montana without
regard to provisions of conflicts of law thereunder, and all disputes arising under the Agreement shall be brought before and heard by
courts having their forum within the State of Montana.

M. <u>Severability; Partial Invalidity</u>. If any portion of this Agreement is determined by a court to be invalid or otherwise not
enforceable, such determination shall not render any other term of the Agreement to be invalid, void or unenforceable, and the Agreement
shall remain in full force and effect notwithstanding such partial invalidity.

N. <u>Construction</u>. Except when otherwise indicated by context, any terminology referring to gender shall include any other gender
and the definition of any term in the singular shall include the plural.

O. <u>Headings</u>. Headings in this Agreement are for convenience only and shall not be used to interpret or construe its provisions.

P. <u>Counterparts</u>. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original but all
of which together shall constitute one and the same instrument.

Q. <u>Entire Agreement</u>. This Agreement represents the final and entire agreement between the parties, and supersedes all prior or
contemporaneous agreements, express or implied, written or unwritten.

IN WITNESS WHEREOF, the parties have executed this Agreement on the day, month, and year first above written.

**BANK**

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| |
|:---|
| BY: |
| Name: |
| Title: |

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**EXECUTIVE**

<br> Phillip K. Willett

## Exhibit 10.3

**Exhibit 10.3**

**<u>CHANGE OF CONTROL AGREEMENT</u>**

THIS CHANGE OF CONTROL AGREEMENT is entered into effective as of ______ ___, _<u> </u><u>,</u> by and between Pioneer State Bank, a Montana, a State-chartered bank (the "Bank"), and Phillip K. Willett ("Executive").

**RECITALS:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. Executive is the President and CEO of the Bank and is key to the continued successful management of the Bank.

**AGREEMENT:**

NOW, THEREFORE, in consideration of the promises, mutual agreements and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

**ARTICLE I.** **<br> DEFINITIONS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.01. <u>Certain Definitions</u>. As used in this Agreement, unless otherwise defined herein or unless the context otherwise requires, the following terms shall have the following meanings:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) "<u>Affiliate</u>" shall mean any entity which controls, is controlled by, or is under common control with the Bank. For these purposes, "control"(including the terms "controlled by" and "under common control with") means the possession, direct or indirect, of the power to direct or cause the direction of the management policies of an entity by reason of ownership of voting securities, by contract or otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) "<u>Agreement</u>" means this Change of Control Agreement as amended from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) "<u>Bank</u>" means Pioneer State Bank, and its successors and assigns.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) "Board" means the Board of Directors of the Bank.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) "<u>Cause</u>" means the termination of Executive's employment pursuant to a Notice of Termination upon: (i) Executive's breach of Executive's fiduciary duty or commission of any material act of dishonesty or disloyalty or violation of law involving the Bank or Holding Company; (ii) Executive's commission of a crime, the circumstances of which substantially relate to Executive's employment duties with the Bank or Holding Company; (iii) Executive's willful engagement in conduct which is materially injurious to the Bank or Holding Company; (iv) Executive's failure to follow reasonable instructions from the Bank or the Board concerning the operations or business of the Bank or Holding Company; (v) Executive's breach of any agreement between Executive and the Bank or Holding Company, including without limitation, any employment, non-disclosure, non-competition or non-solicitation agreement; (vi) Executive's willful violation of any material written policies or procedures of the Bank or Holding Company (including without limitation any sexual harassment or misconduct policy); (vii) Executive's misappropriation of funds or property of the Bank or Holding Company; or (viii) Executive's attempt to obtain a personal profit from any transaction in which the Bank or Holding Company has an interest, and which constitutes a corporate opportunity of the Bank or Holding Company, or which is adverse to the interests of the Bank or Holding Company, unless the transaction was approved in writing by the Board after full disclosure of all details relating to such transaction. For purposes of this definition, no act, or failure to act, on Executive's part will be deemed "willful" unless done, or omitted to be done, by the employee in bad faith.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) "<u>Change of Control</u>" shall be deemed to have occurred upon the occurrence of any of the following events:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any "person"(as such term is used in Section 3(a)(9) of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), other than Holding Company in the case of the Bank or any employee benefit plan sponsored or maintained by the Holding Company or the Bank, becomes, after the date hereof, the "beneficial owner"(as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Bank or Holding Company representing fifty percent (50%) or more of the then-outstanding voting securities of the Bank or Holding Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) when, during any period of 24 consecutive months, the individuals who, at the beginning of such period, constitute the Board (the "<u>Incumbent Directors</u>") cease for any reason other than death to constitute at least a majority thereof, provided, however, that a director who was not a director at the beginning of such 24-month period shall be deemed to have satisfied such 24-month requirement (and be an Incumbent Director) if such director was elected by, or on the recommendation of or with the approval of, at least a majority of the directors who then qualified as Incumbent Directors either actually (because they were directors at the beginning of such 24-month period) or by prior operation of this provision;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the purchase of substantially all of the assets or merger, consolidation of the Holding Company or Bank by an entity other than a 50% or more owned affiliate of the Holding Company, except in the case of a transaction pursuant to which, immediately after the transaction, the holding Company's shareholders immediately prior to the transaction, either directly or indirectly, own at least 60% of the combined voting power of the surviving entity's then outstanding securities with respect to the election of the directors of such entity in roughly the same proportions as prior to the transaction; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Holding Company approves a plan of complete liquidation of the Bank or Holding Company or an agreement for the sale or disposition by the Bank or Holding Company of all or substantially all of the assets of the Bank or Holding Company.

Notwithstanding the foregoing, a Change of Control shall not be deemed to occur solely because fifty percent (50%) or more of the combined voting power of the then outstanding securities of the Bank or Holding Company are acquired by: (1) a trustee or other fiduciary holding securities under one or more executive benefit plans maintained for executives of the Bank or Holding Company, or (2) any entity which, immediately prior to such acquisition, is owned directly or indirectly by the stockholders of Holding Company in the same proportion as their ownership of Holding Company stock immediately prior to such acquisition.

The determination as to whether a Change of Control or an agreement to effect a Change of Control has occurred shall be made by the Administrator and shall be conclusive and binding on all interested parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) "<u>Change of Control Date</u>" means the first date on which a Change of Control occurs during the Change of Control Period; <u>provided</u>, <u>however</u>, if (i) a Change of Control occurs, (ii) Executive's employment is terminated by the Bank other than for Cause or Executive terminates Executive's employment with the Bank or the Executive incurs a Good Reason Event, in either case prior to the date on which the Change of Control occurs, and (iii) such termination of employment or such action triggering Executive's right to assert a Good Reason Event was at the request or direction of a third party who has taken steps reasonably calculated to effect the Change of Control, "Change of Control Date" shall mean the date immediately prior to the date of such termination of employment by the Bank without Cause or by Executive for Good Reason.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) "<u>Change of Control Period</u>" means the period commencing on the date hereof and ending on the second anniversary of such date; <u>provided</u>, <u>however</u>, that commencing on a date one (1) year after the date hereof, and on each annual anniversary of such date (such date and each annual anniversary thereof being hereinafter referred to as the "Renewal Date"), the Change of Control Period shall be automatically extended so as to terminate two years from such Renewal Date, unless at least ninety (90) days prior to the Renewal Date, the Bank shall give notice to Executive that the Change of Control Period shall not be so extended, in which case, as of the Renewal Date, only one (1) year shall remain of the Change in Control Period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) "<u>Date of Termination</u>" means the date that Executive has a "separation from service" from the Bank within the meaning of Section 1.409A-1(h) of the Treasury Regulations promulgated under Section 409A of the Internal Revenue Code of 1986, as amended (the "Code").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) "<u>Disability</u>" of Executive shall mean the inability of Executive to perform Executive's duties hereunder, even with any reasonable accommodation, by reason of any medically determinable physical or mental impairment that can be expected to result in death or that has lasted or can be expected to last for a continuous period of not less than twelve (12) months, as determined by the third party administrator or insurer of the Bank's long-term disability plan or the Social Security Administration.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) "<u>Good Reason Event</u>" means any of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) A material reduction in Executive's base salary, unless Executive consents to such change;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) A material and sustained reduction in Executive's authority, title, duties or responsibilities with the Bank, unless Executive consents to such change;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Executive being required by the Bank to be based at any office or location that is more than fifty (50) miles from the location where Executive was principally employed immediately preceding the Change of Control Date by the Bank; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) A material breach by the Bank or its successor or assign, of this Agreement.

Notwithstanding the foregoing, in order for Executive to trigger benefits under the Agreement for a Good Reason Event, the Executive must give the Bank a Notice of Good Reason Event within 90 days of the initial existence of the condition(s) specified by Executive that constitute a Good Reason Event and the Bank shall have 30 days from the date of such Notice of Good Reason Event in which to cure the condition giving rise to the Good Reason Event, if curable. If, during such 30-day period, the Bank cures the condition giving rise to the Good Reason Event, no benefits shall be triggered under Section 3.01 of this Agreement with respect to such occurrence. If, during such 30-day period, the Bank fails or refuses to cure the condition giving rise to a Good Reason Event, the Executive shall be entitled to benefits under Section 3.01 of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) "<u>Holding Company</u>" means PSB Financial, Inc., an Maryland corporation and the parent bank holding company of the Bank.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) "<u>Notice of Good Reason Event</u>" means a written notice which (i) indicates the Good Reason Event provision in this Agreement relied upon and (ii) to the extent applicable, sets forth in reasonable detail the facts and circumstances claimed to provide a basis for asserting a Good Reason Event under the provision so indicated.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) "<u>Notice of Termination</u>" means a written notice of termination which (i) indicates the termination provision in this Agreement relied upon and (ii) to the extent applicable, sets forth in reasonable detail the facts and circumstances claimed to provide a basis for termination of Executive's employment under the provision so indicated.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) "<u>Post-COC Period</u>" means the period commencing on the Change of Control Date and ending on the first anniversary of such date.

**ARTICLE II.** **<br> Termination of Employment/ good reason event<br> During the Post-COC Period**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.01. <u>Death or Disability</u>. Executive's employment shall terminate automatically upon Executive's death. If the Bank determines in good faith that the Disability of Executive has occurred, it may give Executive written notice of its intention to terminate Executive's employment. In such event, Executive's employment with the Bank shall terminate effective on the 30th day after receipt of such notice by Executive (the "Disability Effective Date"), provided that within the thirty (30) days after such receipt Executive shall not have returned to full-time performance of Executive's duties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.02. <u>Termination By the Bank</u>. The Bank may terminate Executive's employment at any time for Cause or without Cause. Notwithstanding the foregoing, Executive shall not be deemed to have been terminated for Cause without a Notice of Termination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.03. <u>Good Reason Event</u>. Executive's employment may be terminated at any time by Executive without regard to a Good Reason Event.

**ARTICLE III.** **<br> Obligations of the Bank Upon Termination/Good Reason Event<br> During the Post-COC Period**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.01. <u>Terminations Other Than for Cause or for a Good Reason Event</u>. If, during the Post-COC Period, the Bank terminates Executive's employment other than for Cause, death or the Disability of Executive, or if Executive incurs an uncured Good Reason Event:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Bank shall pay to Executive cash in an amount equal to the aggregate of the following amounts, which payment shall be made in a lump sum on a date in the Bank's sole discretion which is within sixty (60) days after Executive's Date of Termination or uncured Good Reason Event, an amount equal to 2.99 times the Executive's total W-2 and 1099 compensation from the Bank in the calendar year immediately prior to such uncured Good Reason Event or Date of Termination (the "COC Amount").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Subject to Section 3.07 hereof, Executive shall receive all amounts or benefits to which Executive is entitled for the period prior to the Date of Termination or Good Reason Event under any plan, program, policy, practice, contract or agreement of the Bank (excluding amounts otherwise required to be paid under this Section 3.01, at the time such amounts or benefits are due (except as provided in Section 3.05 of this Agreement).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Notwithstanding anything herein contained to the contrary, the Bank's obligation to pay the COC Amount is contingent upon Executive's execution of a Waiver and Release of Claims, in such form satisfactory to the Bank, containing among other things, a general release of claims against the Bank and Holding Company, which must be executed by Executive (and any applicable revocation period must expire) in accordance with the terms of such Waiver and Release of Claims but in no event later than sixty (60) calendar days following Executive's Date of Termination or Good Reason Event (the "Consideration Period"). If Executive does not return the executed Waiver and Release of Claims within the permitted Consideration Period, or if Executive revokes the Waiver and Release of Claims as set forth above, (A) Executive shall forfeit the COC Amount provided for in Section 3.01(a), and (B) the Bank shall not have any further obligation to pay such COC Amount to Executive. For clarification purposes, the payment of accrued benefits set forth in Section 3.01(c), if any, is not contingent on Executive's execution of a Waiver and Release of Claims.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.02. <u>Termination for Cause; Termination Other than for a Good Reason Event</u>. If Executive's employment shall be terminated for Cause during the Post-COC Period or if Executive terminates employment during the Post-COC Period other than for a Good Reason Event, this Agreement shall terminate without further obligation of the Bank to Executive other than the obligation to timely pay or provide to the Executive (i) Executive's base salary through the Date of Termination, and (ii) all amounts or benefits to which Executive is entitled for the period prior to the Date of Termination under any plan, program, policy, practice, contract or agreement of the Bank (excluding amounts otherwise required to be paid under this Section 3.02).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.03. <u>Termination as a Result of Death or Disability</u>. In the event of the termination of Executive's employment during the Post-COC Period as a result of the death or the Disability of Executive, Executive (or Executive's heirs) shall be entitled to (i) Executive's base salary through the Date of Termination and (ii) all amounts or benefits to which Executive is entitled for the period prior to the Date of Termination under any plan, program, policy, practice, contract or agreement of the Bank (excluding amounts otherwise required to be paid under this Section 3.03), as well as death or disability benefits, as the case may be, as then in effect at the Bank and applicable to Executive.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.04. <u>Termination Outside of the Post-COC Period</u>. For the avoidance of doubt, if Executive's employment is terminated, for any reason, prior to the Post-COC Period or following the Post-COC Period, Executive's termination shall be governed by the terms of Executive's Employment Agreement with the Bank, dated as of [even date with SERP, Restrictive Covenant and Employment Agreement].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.05. <u>Excise Tax Limitation</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Anything in this Agreement to the contrary notwithstanding, in the event that the receipt of all payments, distributions or benefits (including without limitation accelerated vesting of equity-based awards) in the nature of compensation to or for Executive's benefit, whether paid or payable pursuant to this Agreement or otherwise (a "Payment"), would subject Executive to the excise tax under Section 4999 of the Code by virtue of Section 280G of the Code, an independent accounting or executive benefits consulting firm mutually selected by the Bank and Executive (the "Accounting Firm"), shall determine whether to reduce any of the Payments paid or payable pursuant to this Agreement (the "Agreement Payments") to the Reduced Amount (as defined below). The Agreement Payments shall be reduced to the Reduced Amount only if the Accounting Firm determines that Executive would have a greater Net After-Tax Receipt (as defined below) of aggregate Payments if Executive's Agreement Payments were reduced to the Reduced Amount. If such a determination is not made by the Accounting Firm, Executive shall receive all Agreement Payments to which Executive is entitled under this Agreement. Any determination made by the Accounting Firm shall be binding on the Bank and Executive.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If the Accounting Firm determines that aggregate Agreement Payments should be reduced to the Reduced Amount, the Bank shall promptly give Executive notice to that effect and a copy of the detailed calculation thereof. All determinations made by the Accounting Firm under this Section 3.04 shall be made as soon as reasonably practicable and in no event later than fifty-five (55) days following the Date of Termination or Good Reason Event, as applicable, or such earlier date as requested by the Bank and Executive. For purposes of reducing the Agreement Payments to the Reduced Amount, only amounts payable under this Agreement (and no other Payments) shall be reduced, in the following order: (A) any Payments otherwise payable to the Executive that are exempt from Section 409A of the Code ("Section 409A"); and (B) any Payments otherwise payable to the Executive that are not exempt from Section 409A, on a pro rata basis or such other manner that complies with Section 409A. All fees and expenses of the Accounting Firm shall be borne solely by the Bank.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) As a result of the uncertainty in the application of Sections 280G and 4999 of the Code at the time of the initial determination by the Accounting Firm hereunder, it is possible that amounts will have been paid or distributed by the Bank to or for the benefit of Executive pursuant to this Agreement which should not have been so paid or distributed (the "Overpayment") or that additional amounts which were not paid or distributed by the Bank to or for the benefit of Executive pursuant to this Agreement could have been so paid or distributed (the "Underpayment"), in each case, consistent with the calculation of the Reduced Amount hereunder. In the event that the Accounting Firm, based upon the assertion of a deficiency by the Internal Revenue Service against either the Bank or Executive which the Accounting Firm believes has a high probability of success, determines that an Overpayment has been made, Executive shall pay any such Overpayment to the Bank, together with interest at the applicable federal rate provided for in Section 7872(f)(2) of the Code; <u>provided</u>, <u>however</u>, that no amount shall be payable by Executive to the Bank if and to the extent such payment would not either reduce the amount on which Executive is subject to tax under Section 1 and Section 4999 of the Code or generate a refund of such taxes. In the event that the Accounting Firm, based upon controlling precedent or substantial authority, determines that an Underpayment has occurred, any such Underpayment shall be paid promptly (and in no event later than sixty (60) days following the date on which the Underpayment is determined) by the Bank to or for the benefit of Executive together with interest at the applicable federal rate provided for in Section 7872(f)(2) of the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) For purposes hereof, the following terms have the meanings set forth below: (A) "Reduced Amount" shall mean the greatest amount of Payments that can be paid that would not result in the imposition of the excise tax under Section 4999 of the Code if the Accounting Firm determines to reduce Payments pursuant to this Section 3.04 and (B) "Net After-Tax Receipt" shall mean the present value (as determined in accordance with Section 280G(b)(2)(A)(ii) and Section 280G(d)(4) of the Code) of a Payment net of all taxes imposed on Executive with respect thereto under Section 1 and Section 4999 of the Code and under applicable state and local laws, determined by applying the highest marginal rate under Section 1 of the Code and under state and local laws which applied to Executive's taxable income for the immediately preceding taxable year, or such other rate(s) as Executive certifies, in Executive's sole discretion, as likely to apply to him in the relevant tax year(s).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.06. <u>409A Compliance</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Notwithstanding any provision of this Agreement to the contrary, if on the Date of Termination the Executive is a "specified employee" as defined in Section 409A, then to the extent that any amount to which the Executive is entitled in connection with the termination of Executive's employment is subject to Section 409A, payments of such amounts to which the Executive would otherwise be entitled during the six (6) month period following the Executive's Date of Termination will be accumulated and paid in a lump sum on the first day of the seventh month after the month in which the Date of Termination occurs. This paragraph shall apply only to the extent required to avoid the Executive's incurrence of any additional tax or interest under Section 409A.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Notwithstanding any other provisions of this Agreement to the contrary and to the extent applicable, it is intended that this Agreement be exempt from or otherwise comply with the requirements of Section 409A, and this Agreement shall be interpreted, construed and administered in accordance with this intent, so as to avoid the imposition of taxes and penalties on Executive pursuant to Section 409A. However, neither Holding Company nor the Bank shall have any liability to Executive, Executive's beneficiaries or otherwise if this Agreement or any amounts paid or payable hereunder are subject to the additional tax and penalties under Section 409A. For purposes of any provision of this Agreement providing for the payment of any amounts or benefits subject to 409A of the Code, references to a "termination," "termination of employment" or like terms shall mean "separation from service" within the meaning of Section 1.409A-1(h) of the Treasury Regulations promulgated under Section 409A.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.07. <u>Regulatory Prohibition on Payment</u>. Notwithstanding anything to the contrary contained in this Agreement, any payments to Executive by the Bank under this Agreement are subject to and conditioned upon their compliance with Section 18(k) of the Federal Deposit Insurance Act, 12 U.S.C. § 1828(k), and the regulations promulgated thereunder in 12 C.F.R. Part 359. The Bank covenant to Executive that it will use commercially reasonable efforts to obtain any regulatory agency approvals that may be required in order to make payments to Executive as provided herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.08. <u>Provision of Severance under Other Agreements</u>. Notwithstanding anything herein contained to the contrary, if Executive is entitled to the COC Amount hereunder, and is also entitled to a severance payment from Holding Company or the Bank under any other agreement, plan or policy ("Other Severance Payment"), then Executive shall only receive the greater of (a) the COC Amount or (b) the Other Severance Payment.

**ARTICLE IV.** **<br> General Provisions**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.01. <u>Successors</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) This Agreement is personal to Executive and shall not be assignable by Executive without the prior written consent of the Bank other than by will or the laws of descent and distribution. If Executive should die while any amounts would still be payable to Executive hereunder if Executive had continued to live, all such amounts, unless otherwise provided herein, shall be paid in accordance with the terms of this Agreement to Executive's heirs or representatives or, if there be no such designee, to Employer's estate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) This Agreement shall inure to the benefit of and be binding upon the Bank and their respective successors and assigns, whether by contract or operation of law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Bank will require any successor (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of the business and/or assets of the Bank to assume expressly and agree to perform this Agreement in the same manner and to the same extent that the Bank would be required to perform it if no such succession had taken place. Failure of the Bank to require any successor to assume and agree to perform this Agreement is not a prerequisite to Section 4.01(b) applying to the parties hereto and their respective successor and assigns.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.02. <u>Governing Law</u>. This Agreement shall be governed by and construed in accordance with the laws of the State of Montana without reference to principles of conflict of laws. The captions of this Agreement are not part of the provisions hereof and shall have no force or effect. This Agreement may not be amended or modified otherwise than by a written agreement executed by the parties hereto. This Agreement supersedes all previous agreements relating to the subject matter of this Agreement, written or oral, between the parties hereto and contains the entire understanding of the parties hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.03. <u>Notices</u>. All notices required or permitted under this Agreement must be given in writing, reference this Agreement and will be deemed delivered and given (a) upon personal delivery to the party to be notified; (b) three days after mailing by registered or certified U.S. mail, return receipt requested, postage and charges prepaid; (c) one business day after deposit with a nationally-recognized commercial overnight courier, specifying next day delivery with verification of receipt; or (d) when sent by electronic mail transmission (such email notice to be effective on the date after such email is sent), with a confirmation sent by way of one of the above methods. All communications shall be sent to the following addresses (or at such other address for a party as shall be specified by like notice):

If to the Bank: Chairman Pioneer State Bank 202 N. Main Street Deer Lodge, MT 59722 If to the Executive: Phillip K. Willet [personally identifiable information removed]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.04. <u>Severability</u>. The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other provision of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.05. <u>Withholding</u>. The Bank may withhold from any amounts payable under this Agreement such Federal, state or local income or employment taxes as shall be required to be withheld pursuant to any applicable law or regulation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.06. <u>Waiver</u>. The failure by the Bank or Executive to insist upon strict compliance with any provision of this Agreement or the failure to assert any right Executive or the Bank may have hereunder, including, without limitation, the right of Executive to assert a Good Reason Event, shall not be deemed to be a waiver of such provision or right or any other provision or right of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.07. <u>Employment at Will</u>. Executive and the Bank acknowledge that, except as may otherwise be provided under any other written agreement between Executive and the Bank, the employment of Executive is "at will". Moreover, if prior to the Change of Control Date, Executive's employment with the Bank terminates, then Executive shall have no further rights under this Agreement.

(*Signature page follows*)

IN WITNESS WHEREOF, Executive and the Bank have executed this Agreement as of the date first above written.

---

| | |
|:---|:---|
| By: |  |
|  | [Insert Name and Title] |

---

Signature Page to Change of Control Agreement

## Exhibit 10.4

**Exhibit 10.4**

**<u>RESTRICTIVE COVENANT AGREEMENT</u>**

THIS RESTRICTIVE COVENANT AGREEMENT ("Agreement") is made and entered into by and between Phillip K. Willett ("Executive") and Pioneer State Bank (the "Bank"). The Bank and Executive shall sometimes be referred to herein together, as the "Parties."

<u>RECITALS</u>

A. During Executive's employment with the Bank, Executive has personally generated and been entrusted with, and will continue to personally generate and be entrusted with, information, ideas and materials that are the Bank's confidential and proprietary property, including, without limitation, trade secrets, confidential customer information and customer lists, and information related to other confidential and proprietary matters of the Bank.

B. During Executive's employment with the Bank, the Bank has provided, and will continue to provide, Executive access to valuable, non-public information about customers and prospective customers for the purpose of creating proposals to solicit prospective customers' business and providing services and products on behalf of the Bank. The Bank may also provide Executive formal and informal training opportunities.

C. The Bank has expended, and will continue to expend, substantial time, effort and money to protect such confidential and proprietary Bank property, to service its customers and prospective customers and to provide Executive the opportunity and the resources to extend the goodwill of the Bank.

D. Execution of this Agreement is a condition of Supplemental Executive Retirement Plan Agreement, dated _____, 2025, between the Bank and Executive ("SERP"), under which Executive is eligible to receive Benefits (defined therein).

<u>AGREEMENT</u>

In consideration of the receipt of the benefits offered in the SERP and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Executive and the Bank hereby agree as follows:

**1.** **Restricted Period.** The term "Restricted Period" means the period commencing on the effective date of the SERP and continuing through the longer of: (i) the end of the period in which Executive receives Benefits as provided thereunder; or (ii) a period of two (2) years following the termination date of Executive's employment. For the avoidance of doubt, the foregoing definition of the Restricted Period shall apply in the event Executive's employment continues following a Change in Control (as defined in the SERP). Notwithstanding the foregoing, if Executive's employment is terminated in connection with a Change in Control, and Executive is not offered employment with the successor (or its subsidiaries or affiliates), then the Restricted Period shall continue for a period of two (2) years following the termination date of Executive's employment. For clarity, the restrictions set forth herein shall not apply to Executive's conduct on behalf of the Bank during Executive's employment with the Bank, provided such conduct is done in the interest and benefit of the Bank.

**2.** **Confidentiality and Trade Secret Obligations.**

**2.1** <u>Trade Secrets</u> . During the Restricted Period, Executive will not, directly or indirectly, use or disclose any Trade Secret.

**2.2** <u>Confidential Information Post-Employment</u>. During the Restricted Period, Executive will not, directly or indirectly, use or disclose any Confidential Information.

**2.3** <u>Nonpublic Personal Information</u>. Notwithstanding Section 1.3, Executive will not, at any time, directly or indirectly, disclose or use any "nonpublic personal information" as that term is defined in the Gramm-Leach-Bliley Act.

**2.4** <u>Trade Secret Law</u>. Nothing in this Agreement shall limit or supersede any common law, statutory or other protections of Trade Secrets where such protections provide the Bank with greater rights or protections than provided in this Agreement. With respect to the disclosure of a Trade Secret and in accordance with 18 U.S.C. § 1833, Executive shall not be held criminally or civilly liable under any federal or state trade secret law for the disclosure of a Trade Secret that is made in (i) confidence to a federal, state, or local government official, either directly or indirectly, or to an attorney, provided that the information is disclosed solely for the purpose of reporting or investigating a suspected violation of law; or (ii) a complaint or other document filed in a lawsuit or other proceeding filed under seal so that it is not disclosed to the public. Executive is further notified that if Executive files a lawsuit for retaliation by the Bank for reporting a suspected violation of law, Executive may disclose the Bank's Trade Secrets to Executive's attorney and use the Trade Secret information in the court proceeding, provided that Executive files any document containing the Trade Secret under seal so that it is not disclosed to the public, and Executive and Executive's attorney do not disclose the Trade Secret, except pursuant to court order.

**2.5** <u>Confidential Information</u>. The term "Confidential Information" means all non-Trade Secret information of, about or related to the Bank or PSB Financial, Inc., the parent bank holding company of the Bank ("Holding Company") or provided to the Bank or Holding Company by their customers that is not known generally to the public or the Bank's competitors. Confidential Information includes, but is not limited to: (i) financial reports or data; investment strategies; information about products and/or services under development; research; business plans; operational methods; customer lists; customer account information; information about banking orders and transactions with customers; sales and marketing strategies; plans and techniques; pricing strategies; information relating to sources of materials; purchasing and accounting information; personnel information (other than Executive's own) and all business records; (ii) information that is marked or otherwise designated or treated as confidential or proprietary by the Bank; and (iii) information received by the Bank from others which the Bank has an obligation to treat as confidential.

**2.7** <u>Exclusions</u>. Notwithstanding the foregoing, the term "Confidential Information" does not include, and the obligations set forth in this Agreement do not apply to, any information that: (i) can be demonstrated by Executive to have been known by Executive prior to Executive's employment by the Bank and any of its predecessors, subsidiaries and affiliates; (ii) is or becomes generally available to the public through no act or omission of Executive; (iii) is obtained by Executive in good faith from a third party who discloses such information to Executive on a non-confidential basis without violating any obligation of confidentiality or secrecy relating to the information disclosed; or (iv) is independently developed by Executive outside the scope of Executive's employment and affiliation with the Bank without the use of Confidential Information or Trade Secrets.

**2.8** <u>Scope</u>. Executive affirmatively acknowledges and agrees that except in the interest and for the benefit of the Bank and as authorized by Bank policy, Executive's undertakings and obligations under this Section 1 prohibit Executive's transfer and/or transmittal of any Confidential Information and/or Trade Secrets to or from Executive's personal email or other personal or non-Bank platform(s), account(s) or data site(s) over which Executive has access or exercises direct or indirect control.

**3.** **Duty of Loyalty.** While Executive is employed by the Bank, Executive acknowledges and agrees that Executive has a duty of loyalty to the Bank to act in the best interests of and with allegiance to the Bank and will devote such business time, attention, and energies reasonably necessary to the diligent and faithful performance of Executive's services to the Bank.

**4.** **Post-Employment Restricted Customer Obligations.**

**4.1** <u>Non-Solicitation of Restricted Customers</u>. During the Restricted Period, Executive agrees not to, directly or indirectly, solicit, or attempt to solicit, any Restricted Customer for the sale of any products or services of the type marketed, sold or provided by the Bank.

**4.2** <u>Non-Interference with Restricted Customers</u>. During the Restricted Period, Executive agrees not to, directly or indirectly, induce, or attempt to induce, any Restricted Customer to cease or to reduce its business with the Bank or adversely affect or otherwise interfere with the existing relationship between the Bank and such Restricted Customer.

**4.3** <u>Restrictions on Services to Restricted Customers</u>. During the Restricted Period, Executive agrees not to, directly or indirectly, provide any Restricted Customer any services of the type Executive provided to the Bank or any of its predecessors, subsidiaries and affiliates. The geographic territory of this restriction shall be the state of Montana.

**4.4** <u>Restricted Customer</u>. The term "Restricted Customer" means any individual or entity (i) for whom/which the Bank sold or provided products or services and (ii) with whom/which Executive had contact, performed services for, or bore responsibility for on behalf of the Bank or any of its predecessors, subsidiaries and affiliates, or about whom/which Executive acquired non-public or proprietary information as a result of Executive's employment by the Bank.

**5.** **Post-Employment Prospective Customer Obligations.**

**5.1** <u>Non-Interference with Prospective Customers</u>. During the Restricted Period, Executive agrees not to, directly or indirectly, induce, or attempt to induce, any Prospective Customer not to do business with the Bank or adversely affect or otherwise interfere with the relationship between the Bank and such Prospective Customer.

**5.2** <u>Prospective Customer</u>. The term "Prospective Customer" means any individual or entity (i) for whom/which the Bank has made a proposal to provide goods or services and (ii) with whom/which Executive had contact on behalf of the Bank or any of its predecessors, subsidiaries and affiliates, or about whom/which Executive acquired non-public or proprietary information as a result of Executive's employment with the Bank.

**6.** **Post-Employment Non-Solicitation of Employees Obligation.** During the Restricted Period, Executive agrees not to, directly or indirectly, encourage any Bank employee to terminate their employment with the Bank or solicit such individual for employment outside the Bank in a manner that would end or diminish that employee's services to the Bank.

**7.** **Business Idea Rights.**

**7.1** <u>Assignment</u>. Executive acknowledges that the Bank will be the sole and exclusive owner of all rights, title and interest in and to all Business Ideas and all patent, trademark, trade secret, copyright, and any other intellectual property rights therein. All Business Ideas which are or form the basis for copyrightable works are considered "works made for hire" as that term is defined by United States copyright law. To the extent that all exclusive rights, title and interest in and to all Business Ideas do not automatically vest in the Bank by operation of law, Executive hereby irrevocably assigns all rights, title and interest that Executive may have in such Business Ideas to the Bank.

**7.2** <u>Disclosure</u>. While employed by the Bank, Executive will promptly disclose all Business Ideas to the Bank.

**7.3** <u>Execution of Documentation</u>. Executive, at any time during the Restricted Period or thereafter, will promptly execute all documents which the Bank may reasonably require to perfect its ownership and protection of and rights to such Business Ideas throughout the world or to evidence their original creation by Executive.

**7.4** <u>Business Ideas</u>. The term "Business Ideas" means all ideas, designs, modifications, formulations, specifications, concepts, know-how, trade secrets, discoveries, inventions, data, software, source codes, developments, and copyrightable works, and all other intellectual property whether or not patentable or registrable, which are developed or originated by Executive, either alone or jointly with others, while Executive is employed by the Bank and which are (i) related to any business known to Executive to be engaged in or contemplated by the Bank; (ii) originated or developed during Executive's working hours; or (iii) originated or developed in whole or in part using materials, labor, facilities, or equipment furnished by the Bank.

**8.** **Post-Employment Obligations.**

**8.1** <u>Return of Property</u>. Upon the end, for whatever reason, of Executive's employment with the Bank, or upon request by the Bank at any time, Executive shall immediately return and disclose to the Bank all passwords, codes, documents, records, computer media, information and materials, keys, access cards, computers, telephones, handheld devices, equipment, supplies, items owned or leased by the Bank or its affiliates and any other property belonging or relating to the Bank or its affiliates and their customers and all copies of all such materials and property. Upon the end of Executive's employment with the Bank or upon request by the Bank at any time, Executive further agrees to destroy such records maintained by Executive on Executive's own computer and/or electronic equipment, and/or any devices, equipment, or storage sites directly or indirectly owned, accessed, or controlled by Executive, and to certify in writing, at the Bank's request, that such destruction has occurred.

**9.** **Executive Disclosures and Acknowledgments.**

**9.1** <u>Confidential Information of Others</u>. Executive certifies that Executive has not disclosed or used, and will not disclose or use during Executive's time as an employee of the Bank, any confidential information that Executive acquired as a result of any previous employment or under a contractual obligation of confidentiality or secrecy before Executive became an employee of the Bank.

**9.2** <u>Prior Obligations</u>. **Executive certifies that Executive is not subject to any prior obligations (written and oral), such as non-disclosure or restrictive covenant obligations, that restrict Executive's ability to perform any services as an employee for the Bank.**

**9.3** <u>Scope of Restrictions</u>. By entering into this Agreement, Executive acknowledges and agrees that the scope of the restrictions contained in this Agreement are appropriate, necessary and reasonable, based on: (i) the specialized knowledge Executive has gained, and will continue to gain, while employed by the Bank, for the protection of the Bank's business, goodwill and property rights, including the protection of the Bank's confidential and proprietary property and its customer relationships; and (ii) the generous benefits provided by the Bank to Executive under the SERP (which Executive acknowledges Executive would not otherwise be entitled to). Executive further acknowledges and agrees that the obligations contained in this Agreement shall survive following the end of Executive's employment with the Bank. Executive also acknowledges and agrees that the restrictions imposed by this Agreement will not prevent Executive from earning a living or using general skills and knowledge gained while employed by the Bank in the event of, and after, the end, for whatever reason, of Executive's employment with the Bank.

**9.4** <u>Prospective Employers</u>. Executive agrees, during the term of any restriction contained in this Agreement, to disclose this Agreement to any person or entity that offers employment to Executive. Executive further agrees that the Bank may send a copy of this Agreement, or otherwise make the provisions hereof known, to any of Executive's potential or future employers.

**10.** **Miscellaneous.**

**10.1** <u>Assignment</u>. This Agreement is personal to Executive, and Executive may not assign or delegate any of Executive's rights or obligations hereunder. The Bank shall have the unrestricted right to assign this Agreement and all of the Bank's rights and obligations under this Agreement. Following such assignment, this Agreement shall be binding and inure to the benefit of any successor or assign of the Bank. For clarification purposes, upon assignment of this Agreement, all references to the Bank shall also refer to the person or entity to whom/which this Agreement is assigned.

**10.2** <u>Entire Agreement; Amendment or Waiver</u>. This Agreement contains the entire understanding between the Parties with respect to the subject matter hereof, and all prior discussions, negotiations, agreements, correspondence, and understandings, whether oral or written, between Executive and the Bank with respect to the subject matter addressed in this Agreement are merged in it and superseded by it; provided, however, that any confidentiality and business ideas, non-solicitation and/or non-competition agreement between Executive and the Bank or Holding Company shall remain in full force and effect to the extent provided in any such agreement(s), and in the event that a provision of any such agreement shall conflict with any provision of this Agreement, Executive acknowledges and agrees that the provision which is most protective of the Bank's and, as applicable, Holding Company's, confidential or proprietary interests shall control. No provision of this Agreement may be amended or waived other than in writing by the party against whom enforcement of such amendment or waiver is sought. The waiver by the Bank of a breach of any provision of this Agreement shall not be deemed a waiver of any subsequent breach. Additionally, the election of one or more remedies by the Bank shall not constitute a waiver of the right to pursue other available remedies.

**10.3** <u>Injunctive Relief</u>. The Parties agree that damages will be an inadequate remedy for breaches of this Agreement and in addition to damages and any other available relief, a court shall be empowered to grant injunctive relief (without the necessity of posting bond or other security).

**10.4** <u>Governing Law</u>. This Agreement shall be governed by and construed in accordance with the substantive and procedural laws of the state of Montana.

**10.5** <u>Consideration</u>. Execution of this Agreement is a condition of the SERP and Executive's eligibility for, and receipt of, the Benefits set forth in the SERP constitutes the consideration for Executive's undertakings hereunder.

**10.6** <u>Severability</u>. The obligations imposed by, and the provisions of, this Agreement are severable and should be construed independently of each other. The invalidity of one provision shall not affect the validity of any other provision.

**10.7** <u>Modification</u>. In the event any provision of this Agreement is determined by a court of law to be overbroad, unreasonable or unenforceable, the court may, as allowed by applicable law, revise the specific terms of this Agreement to the fullest extent permitted by law to make such terms reasonable and enforceable.

**10.8** <u>Attorneys' Fees and Costs</u>. In the event of Executive's breach of this Agreement, the Bank shall be entitled to the reasonable attorneys' fees and costs incurred by the Bank as a result of such breach and the Bank's enforcement of the Agreement.

**10.9** <u>Terminable-At-Will</u>. Nothing in this Agreement shall be construed to limit the right of either party to terminate the employment relationship at any time for any or no reason with or without notice.

**10.10** <u>Third-Party Beneficiaries</u>. Executive acknowledges that the services Executive provides to the Bank include services to any Bank affiliates. Any Bank affiliates are third-party beneficiaries with respect to Executive's performance of Executive's duties under this Agreement and the undertakings and covenants contained in this Agreement, and the Bank and any of its affiliates, enjoying the benefits thereof, may enforce this Agreement directly against Executive. The terms Trade Secret and Confidential Information shall include materials and information of the Bank's affiliates, predecessors and successors to which Executive has, or has had, access.

**10.11** <u>Employment Policies</u>. As an Executive of the Bank, Executive acknowledges and agrees that Executive will be subject to, and agrees to comply with, all employment policies and practices implemented by the Bank from time to time, including without limitation, the Bank's standard of conduct and code of ethics policies and practices.

**10.12** <u>Whistleblower Protections/Retained Rights</u>. In accordance with Rule 21F-17 under the Securities Exchange Act of 1934, this Agreement does not, and the Bank shall not, impede Executive's ability to communicate with the Securities and Exchange Commission or other governmental agencies regarding possible federal securities law violations, and the Bank shall not enforce any provision of any policy or agreement to the extent such provision would be deemed to require the Bank's prior approval of such communication, except to the extent otherwise permitted by Rule 21F-17. Nothing in this Agreement prohibits Executive from reporting possible violations of law to any governmental agency or entity or making other disclosures that are protected under the whistleblower provisions of federal, state, or local laws or regulations. In addition, nothing in this Agreement shall have the purpose or effect of limiting Executive's ability to disclose or discuss information related to sexual assault or sexual harassment disputes that arise after the date Executive signs this Agreement.

**10.13** <u>Counterparts</u>. This Agreement may be executed in counterparts, including by facsimile or portable document format (.pdf) signature, each of which shall be deemed an original, and all counterparts so executed shall constitute one agreement binding on all of the Parties hereto notwithstanding that all of the Parties may not be a signatory to the same counterpart. Further, this Agreement may be executed by electronic signature, which shall be deemed to be the same as an original signature.

**<u>PHILLIP K. WILLETT</u>**

---

| |
|:---|
| **By:** |
| **Date:** |

---

**<u>PIONEER STATE BANK</u>**

---

| |
|:---|
| **By:** |
| **Title:** |
| **Date:** |

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## Ex-16

**Exhibit 16**

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| | | |
|:---|:---|:---|
| ![](tm2525788d3_ex16img001.jpg) | 910 North Last Chance Gulch<br> Suite A <br> Helena, MT 59601 | <br> 406 442 .5520<br> wipfli.com<br>|

---

September 22, 2025

Securities and Exchange Commission

Washington, D.C. 20549

We have read the statements of Pioneer Federal under the heading "Change in Auditor" in the prospectus contained in the Registration Statement on Form S-1 filed by PSB Financial, Inc. on September 22, 2025, and are in agreement with the statements contained therein with respect to our firm.

![](tm2525788d3_ex16img002.jpg)

Wipfli LLP

September 22, 2025

Helena, MT

## Ex-21

**Exhibit 21**

**Subsidiaries of the Registrant**

The following is a list of the subsidiaries of PSB Financial, Inc.

<u>Name</u> <u>State/Jurisdiction of Incorporation</u> <br>Pioneer State Bank Montana

## Exhibit 23.3

**Exhibit 23.3**

**Feldman Financial Advisors, Inc.**

8804 Mirador Place

McLean, VA 22102

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(202) 467-6862

September 18, 2025

Board of Directors

Pioneer Federal Savings and Loan Association

202 North Main Street

Deer Lodge, Montana 59722

Members of the Board of Directors:

We hereby consent to the use of our firm's name in (i) the Application for Conversion to be filed by Peoples Federal Savings and Loan Association, (ii) the Registration Statement on Form S-1 to be filed by PSB Financial, Inc., and (iii) any amendments to such filings. We also hereby consent to the inclusion of, summary of, and references to our Conversion Valuation Appraisal and any Conversion Valuation Appraisal Updates and our opinion concerning subscription rights in such filings and amendments, including the prospectus of PSB Financial, Inc. We also consent to the reference to our firm under the heading "Experts" in the prospectus.

Sincerely,

![](tm2525788d3_ex99-1img001.jpg)

**Feldman Financial Advisors, Inc.**

## Exhibit 23.4

**Exhibit 23.4**

**CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM**

We consent to the use in this Registration Statement on Form S-1 of PSB Financial, Inc. of our report dated September 22, 2025, relating to the financial statements of Pioneer Federal Savings & Loan Association appearing in the Prospectus, which is part of this Registration Statement.

We also consent to the reference to our firm under the heading "Experts" in such Prospectus.

/s/ Elliott Davis, LLC

Columbia, South Carolina

September 22, 2025

## Exhibit 99.1

**Exhibit 99.1**

**Feldman Financial Advisors, Inc.**

8804 Mirador Place

McLean, VA 22102

(202) 467-6862

February 19, 2025

**<u>Confidential</u>**

Board of Directors

Pioneer Federal Savings and Loan Association

202 N. Main Street

Deer Lodge, Montana 59722

Members of the Board:

This letter sets forth the agreement ("Agreement") between Pioneer Federal Savings and Loan Association (the "Association") and Feldman Financial Advisors, Inc. ("FFA"), whereby the Association has engaged FFA to provide an independent appraisal of the estimated aggregate pro forma market value (the "Valuation") of the common stock to be issued in connection with the conversion of the Association from the mutual to stock form of organization and concurrent offering for sale of all the common stock of the Association or its newly formed holding company (the "Conversion").

FFA agrees to deliver the Valuation, in a written report satisfying applicable regulatory guidelines for mutual-to-stock conversion appraisals, to the Association at the address above on or before a mutually agreed upon date. Further, FFA agrees to perform such other services as are necessary or required of the independent appraiser in connection with comments from the Association's regulatory authorities and subsequent updates of the Valuation as from time to time may be necessary, both after initial approval by the Association's regulatory authorities and prior to the time the Conversion is completed. FFA will assist the Association in responding to all regulatory inquiries regarding the Valuation and will also assist the Association at all meetings with the regulatory authorities concerning the Valuation.

The Association agrees to pay FFA a professional consulting fee of $40,000 for FFA's appraisal services related to preparation of the initial appraisal report. Any subsequent appraisal updates required in conjunction with the regulatory application and the Conversion will be subject to an additional fee of $7,500 per update. It is anticipated that there will be at least two appraisal updates, specifically the appraisal update required before the effectiveness of the registration statement/conversion application and the appraisal update required upon completion of the stock offering.

The Association also agrees to reimburse FFA for certain out-of-pocket expenses necessary and incident to the completion of the services described above. These expenses shall not exceed $5,000 without the prior consent of the Association. Reimbursable expenses for copying, report reproduction, data materials, express mail, and travel shall be paid to FFA as incurred and billed. Payment of the professional consulting fee shall be made according to the following schedule:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· $7,500 upon execution of this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· $32,500
 upon delivery of the initial appraisal report to the Association; and,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· $7,500 upon completion of each updated appraisal report.

**Feldman Financial Advisors, Inc.**

Board of Directors

Pioneer Federal Savings and Loan Association

February 19, 2025

If, during the course of the Conversion, unforeseen events occur so as to materially change the nature of the work content of the appraisal services described above such that FFA must supply services beyond that contemplated at the time this contract was executed, the terms of this Agreement shall be subject to renegotiation by the Association and FFA. Such unforeseen events shall include, but not be limited to, material changes in regulations governing the Conversion, material changes in mutual-to-stock conversion appraisal guidelines or processing procedures as administered by the relevant regulatory authorities, major changes in the Association's management or operating policies, and excessive delays or suspension of processing of the Conversion.

In the event the Association shall for any reason discontinue the Conversion prior to delivery of the completed appraisal report and payment of the progress payment fee totaling $32,500, the Association agrees to compensate FFA according to FFA's standard billing rates for consulting appraisal services based on accumulated and verifiable time expended, provided that the total of such charges shall not exceed $40,000 plus reimbursable expenses and less credit for payment of the initial retainer fee of $7,500.

In order to induce FFA to render the aforesaid services, the Association agrees to the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The Association agrees to supply FFA such
 information with respect to the Association's business and financial condition as FFA
 may reasonably request in order for FFA to perform the appraisal services. Such information
 shall include, without limitation: annual financial statements, periodic regulatory filings
 and material agreements, corporate books and records, and such other documents as are material
 for the performance by FFA of the appraisal services.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The Association hereby represents and
 warrants to FFA (i) that to its best knowledge any information provided to FFA by or
 on behalf (assuming the Association has knowledge of such provision of information) of the
 Association, will not, at any relevant time, contain any untrue statement of a material fact
 or fail to state a material fact necessary to make the information or statements therein
 not false or misleading, (ii) that the Association will not use the product of FFA's
 services in any manner, including in a proxy or offering circular, in connection with any
 untrue statement of a material fact or in connection with the failure to state a material
 fact necessary to make other statements not false or misleading, and (iii) that all
 documents incorporating or relying upon FFA's services or the product of FFA's
 services will otherwise comply with all applicable federal and state laws and regulations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Any valuations or opinions issued by FFA
 may be included in its entirety in any communication by the Association in any regulatory
 application, proxy statement, or offering prospectus; provided that, the written valuation
 or opinion may not be disclosed in the prospectus, nor reproduced and distributed, nor may
 FFA be referred to in the prospectus without FFA's prior written consent.

**Feldman Financial Advisors, Inc.**

Board of Directors

Pioneer Federal Savings and Loan Association

February 19, 2025

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. FFA's Valuation will be based upon
 the Association's representation that the information contained in the registration
 statement/conversion application and additional information furnished to us by the Association
 and its independent auditors is truthful, accurate, and complete in all material respects.
 FFA will not independently verify the financial statements and other information provided
 by the Association and its independent auditors, nor will FFA independently value the assets
 or liabilities of the Association. The Valuation will consider the Association only as a
 going concern and will not be considered as an indication of the liquidation value of the
 Association.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. FFA's Valuation is not intended,
 and must not be represented to be, a recommendation of any kind as to the advisability of
 purchasing shares of common stock in the Conversion. Moreover, because the Valuation is necessarily
 based upon estimates and projections of a number of matters, all of which are subject to
 change from time to time, FFA will give no assurance that persons who purchase shares of
 common stock in the Conversion will thereafter be able to sell such shares at prices related
 to FFA's Valuation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. The Association agrees to indemnify FFA
 and its affiliates and all persons employed by or associated with FFA or its affiliates against
 all claims, liabilities, and related expenses, as incurred, arising out of this engagement,
 unless, upon final adjudication, such claims, liabilities, and expenses are found to have
 resulted primarily from FFA's gross negligence, bad faith, or willful misconduct. Any
 provision for indemnification by the Association shall be in accordance with federal banking
 law and applicable regulations of the Federal Deposit Insurance Corporation (12 CFR Part 359).
 No termination, completion, or modification hereof shall limit or affect such indemnification
 obligation. In the event FFA becomes aware of a claim or a possible claim arising out of
 this Agreement, it shall notify the Association as soon as possible. The Association will
 attempt to resolve the claim. In the event the Association is not able to resolve the claim,
 it has the option to retain legal counsel of the Association's own choosing on behalf
 of FFA to defend the claim.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. The Association and FFA are not affiliated,
 and neither the Association nor FFA has an economic interest in, or is held in common with,
 the other and has not derived a significant portion of its gross revenues, receipts, or net
 income for any period from transactions with the other. It is understood that FFA is not
 a seller of securities within the scope of any federal or state securities law, and any report
 prepared by FFA shall not be used as an offer or solicitation with respect to the purchase
 or sale of any security, it being understood that the foregoing shall not be construed to
 prohibit the filing of any such report as part of the conversion application or Securities
 and Exchange Commission and blue sky filings or customary references thereto in applications,
 filings, proxy statements, and prospectuses.

**Feldman Financial Advisors, Inc.**

Board of Directors

Pioneer Federal Savings and Loan Association

February 19, 2025

Please acknowledge your concurrence with the foregoing by signing as indicated below and returning to FFA a signed copy of this Agreement and the initial payment in the amount of $7,500.

---

| |
|:---|
| Yours very truly, |
| **Feldman Financial Advisors, Inc.** |
| /s/ Trent R. Feldman |
| Trent R. Feldman |
| President |

---

**Agreed to and Accepted for:**

**Board of Directors of**

**Pioneer Federal Savings and Loan Association**

---

| | |
|:---|:---|
| By: | /s/Phillp K. Willett |
| Title: | President/CEO |
| Date: | 2-19-2025 |

---

## Exhibit 99.2

**Exhibit 99.2**

**Feldman Financial Advisors, Inc.**

8804 Mirador Place

McLean, VA 22102

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (202) 467-6862

September 18, 2025

Board of Directors

Pioneer Federal Savings and Loan Association

202 North Main Street

Deer Lodge, Montana 59722

Members of the Board of Directors:

It is the opinion of Feldman Financial Advisors, Inc., that the subscription rights to be received by the eligible account holders and other eligible subscribers of Pioneer Federal Savings and Loan Association ("Pioneer Federal") pursuant to the Plan of Conversion (the "Plan") adopted by the Board of Directors of Pioneer Federal, do not have any ascertainable market value at the time of distribution or at the time the rights are exercised in the subscription offering.

According to the Plan, Pioneer Federal will convert from the mutual form of organization to the stock form of organization and merge with and into a newly formed stock bank to be known as Pioneer State Bank. In connection with the conversion, Pioneer Federal has organized a new stock holding company, PSB Financial, Inc. (the "Company"), which will offer shares of its common stock for sale in a subscription offering to eligible account holders and other eligible subscribers. Any shares of common stock that remain unsubscribed for in the subscription offering will be offered by the Company for sale in the community or syndicated community offerings to certain members of the general public. When the conversion and stock offering are completed, all of the capital stock of Pioneer State Bank will be owned by the Company, and all of the common stock of the Company will be owned by its stockholders.

Our opinion is based on the fact that the subscription rights are acquired by the recipients without cost, are legally non-transferable and of short duration, and afford the recipients the right only to purchase shares of common stock of the Company at a price equal to its aggregate estimated pro forma market value, which will be the same price at which any unsubscribed shares will be purchased in the community or syndicated community offerings.

Changes in the local and national economy, the legislative and regulatory environment, the stock market, interest rates, and other external factors may occur from time to time, often with great unpredictability, and may materially impact the value of financial institution common stocks as a whole or the value of the Company alone. Accordingly, no assurance can be given that persons who subscribe to shares of common stock in the subscription offering will thereafter be able to buy or sell such shares at the same price paid in the subscription offering.

Sincerely,

![](tm2525788d3_ex99-2img001.jpg)

**Feldman Financial Advisors, Inc.**

## Exhibit 99.3

**Exhibit 99.3**

**Feldman Financial Advisors, Inc.**

8804 Mirador Place

McLean, VA 22102

(202) 467-6862

<br>**Pioneer Federal<br> Savings and Loan Association**<br> **Deer Lodge, Montana**<br>**Conversion Valuation Appraisal Report**<br> **Valued as of September 2, 2025**<br>**Prepared By**<br>**Feldman Financial Advisors, Inc.**<br> **McLean, Virginia**<br>

**Feldman Financial Advisors, Inc.**

8804 Mirador Place

McLean, VA 22102

(202) 467-6862

September 2, 2025

Board of Directors

Pioneer Federal Savings and Loan Association

202 North Main Street

Deer Lodge, Montana 59722

Members of the Board of Directors:

At your request, we have completed and hereby provide an independent appraisal (the "Appraisal") of the estimated pro forma market value of Pioneer Federal Savings and Loan Association ("Pioneer Federal" or the "Association") as of September 2, 2025 in conjunction with Pioneer Federal's conversion (the "Conversion") from the mutual form of organization to the stock form of organization by means of a merger with and into a newly formed Montana state-chartered stock bank to be known as Pioneer State Bank (the "Bank"), issuance of all of the Bank's capital stock to a newly formed stock holding company known as PSB Financial, Inc. ("PSB Financial") and offering for sale of PSB Financial's common stock to eligible depositors of the Association, the Association's employee stock ownership plan, and certain members of the general public in the subscription and community offering (the "Stock Offering").

The Conversion is being undertaken pursuant to a Plan of Conversion adopted by the Board of Directors of Pioneer Federal. The Appraisal is furnished pursuant to the filing by the Association and the Company of regulatory applications with respect to the Conversion and Stock Offering with the Montana Division of Banking and Financial Institutions ("MDOB"), the Federal Deposit Insurance Corporation ("FDIC"), the Board of Governors of the Federal Reserve System ("Federal Reserve Board"), and the Securities and Exchange Commission ("SEC").

Feldman Financial Advisors, Inc. ("Feldman Financial") is a financial consulting and advisory firm that specializes in valuations and analyses of business enterprises and securities in the thrift, banking, and insurance industries. The background of Feldman Financial is presented in Exhibit I. In preparing the Appraisal, we conducted an analysis of Pioneer Federal that included discussions with the Association's management, the Association's legal counsel, Godfrey & Kahn S.C., and the Association's independent registered public accounting firm, Wipfli LLP.

In addition, where appropriate, we considered information based on other available published sources that we believe are reliable; however, we cannot guarantee the accuracy and completeness of such information. We also reviewed, among other factors, the economy in Pioneer Federal's primary market area and compared the Association's financial condition and operating performance with that of selected publicly traded thrift institutions. We reviewed conditions in the securities markets in general and in the market for thrift institution common stocks in particular.

**Feldman Financial Advisors, Inc.**

Board of Directors

Pioneer Federal Savings and Loan Association

September 2, 2025

Page Two

The Appraisal is based on Pioneer Federal's representation that the information in the Conversion applications and additional evidence furnished to us by Pioneer Federal and its independent auditor are truthful, accurate, and complete. We did not independently verify the financial statements and other information provided by Pioneer Federal and its independent accounting firm, nor did we independently value the assets or liabilities of Pioneer Federal. The Appraisal considers Pioneer Federal only as a going concern and should not be considered as an indication of the liquidation value of Pioneer Federal.

Pursuant to the Plan of Conversion adopted and approved by Pioneer Federal's Board of Directors, the Association will convert from the mutual to the stock form of organization and merge with and into the Bank. When the Conversion and Stock Offering are completed, all of the outstanding capital stock of the Bank will be owned by PSB Financial, and all of the common stock of PSB Financial will be owned by its stockholders.

The Bank will operate as a wholly-owned subsidiary of PSB Financial. The Bank will succeed to all of the rights, obligations, duties, and liabilities of Pioneer Federal, and all banking operations previously conducted by Pioneer Federal will be conducted through the Bank. The Bank will be subject to examination and regulation by the MDOB, as its chartering authority, and also subject to examination by the FDIC, its primary federal regulator and deposit insurer. PSB Financial will be a bank holding company subject to regulation and supervision by the Federal Reserve Board.

It is our opinion that, as of September 2, 2025, the estimated pro forma market value of Pioneer Federal was within a range (the "Valuation Range") of $10,200,000 to $13,800,000 with a midpoint of $12,000,000. Pursuant to applicable appraisal guidelines, the Valuation Range was based upon a decrease of approximately 15% from the midpoint value to determine the minimum value and an increase of approximately 15% from the midpoint value to establish the maximum value. Assuming an additional increase of approximately 15% above the maximum value would result in an adjusted maximum of $15,870,000. Based on an initial offering price of $10.00 per share, the number of shares to be sold in the Stock Offering is as follows: 1,020,000 at the minimum, 1,200,000 at the midpoint, 1,380,000 at the maximum, and 1,587,000 at the adjusted maximum of the offering range.

Our Appraisal is not intended, and must not be construed, to be a recommendation of any kind as to the advisability of purchasing shares of common stock in the Stock Offering. Moreover, because the Appraisal is necessarily based upon estimates and projections of a number of matters, all of which are subject to change from time to time, no assurance can be given that persons who purchase shares of stock in the Stock Offering will thereafter be able to sell such shares at prices related to the foregoing estimate of the Association's pro forma market value. Feldman Financial is not a seller of securities within the meaning of any federal or state securities laws, and any report prepared by Feldman Financial shall not be used as an offer or solicitation with respect to the purchase or sale of any securities.

**Feldman Financial Advisors, Inc.**

Board of Directors

Pioneer Federal Savings and Loan Association

September 2, 2025

Page Three

The Valuation Range reported herein will be updated as appropriate. These updates will consider, among other factors, any developments or changes in Pioneer Federal's operating performance, financial condition, or management policies, and current conditions in the securities markets for thrift institution common stocks. Should any such new developments or changes be material, in our opinion, to the valuation of Pioneer Federal, appropriate adjustments to the estimated pro forma market value will be made. The reasons for any such adjustments will be explained in detail at that time.

---

| |
|:---|
| Respectfully submitted, |
| **Feldman Financial Advisors, Inc.** |
| ![](tm2525788d3_ex99-3sp1img001.jpg) |
| Trent R. Feldman |
| President |
| ![](tm2525788d3_ex99-3sp1img002.jpg) |
| Peter W. L. Williams |
| Principal |

---

Feldman Financial Advisors, Inc.

**TABLE OF CONTENTS**

---

| | |
|:---|:---|
| **<u>TAB</u>** | **<u>PAGE</u>** |

---

**INTRODUCTION**<sub>1</sub>

---

| | | |
|:---|:---|:---|
| **I.** | **Chapter One – Business of Pioneer Federal** | **Chapter One – Business of Pioneer Federal** |
|  | General Overview | 3 |
|  | Financial Condition | 9 |
|  | Income and Expense Trends | 19 |
|  | Interest Rate Risk Management | 26 |
|  | Asset Quality | 30 |
|  | Office Facilities | 33 |
|  | Market Area | 34 |
|  | Summary Outlook | 42 |
| **II.** | **Chapter Two – Comparisons with Publicly Traded Companies** |  |
|  | General Overview | 43 |
|  | Selection Criteria | 44 |
|  | Recent Financial Comparisons | 48 |
| **III.** | **Chapter Three – Market Value Adjustments** |  |
|  | General Overview | 61 |
|  | Earnings Growth and Viability | 62 |
|  | Financial Condition | 63 |
|  | Market Area | 63 |
|  | Management | 65 |
|  | Dividend Payments | 66 |
|  | Liquidity of the Stock Issue | 66 |
|  | Subscription Interest | 67 |
|  | Recent Acquisition Activity | 69 |
|  | Stock Market Conditions and New Issue Discount | 69 |
|  | Adjustments Conclusion | 77 |
|  | Valuation Approach | 77 |
|  | Valuation Conclusion | 80 |

---

---

| | | | |
|:---|:---|:---|:---|
| **IV.** | **Appendix -- Exhibits** | **Appendix -- Exhibits** |  |
|  | I | Background of Feldman Financial Advisors,Inc. | I-1 |
|  | II-1 | Balance Sheets | II-1 |
|  | II-2 | Income Statements | II-2 |
|  | II-3 | Loan Portfolio Composition | II-3 |
|  | II-4 | Cash and Investments Composition | II-4 |
|  | II-5 | Deposit Accounts Composition | II-5 |
|  | III | Financial and Market Data for All Public Thrifts | III-1 |
|  | IV-1 | Pro Forma Assumptions for the Stock Offering | IV-1 |
|  | IV-2 | Pro Forma Conversion Valuation Range | IV-2 |
|  | IV-3 | Pro Forma Conversion Analysis at the Midpoint Value | IV-3 |
|  | IV-4 | Comparative Valuation Ratio Analysis | IV-4 |

---

i

Feldman Financial Advisors, Inc.

**LIST OF TABLES**

---

| | |
|:---|:---|
| **<u>TAB</u>** | **<u>PAGE</u>** |

---

---

| | | | |
|:---|:---|:---|:---|
| **I.** | **Chapter One – Business of Pioneer Federal** | **Chapter One – Business of Pioneer Federal** | **Chapter One – Business of Pioneer Federal** |
|  | Table 1 | Selected Financial Condition Data | 9 |
|  | Table 2 | Relative Balance Sheet Concentrations | 10 |
|  | Table 3 | Income Statement Summary | 20 |
|  | Table 4 | Income Statement Ratios | 21 |
|  | Table 5 | Yield and Cost Summary | 23 |
|  | Table 6 | Economic Value of Equity | 27 |
|  | Table 7 | Net Interest Income Sensitivity | 29 |
|  | Table 8 | Non-performing Asset Summary | 31 |
|  | Table 9 | Allowance for Credit Losses on Loans | 32 |
|  | Table 10 | Selected Demographic Data | 37 |
|  | Table 11 | Branch Office Deposit Data | 39 |
|  | Table 12 | Deposit Market Share in Powell County and Beaverhead County | 40 |
| **II.** | **Chapter Two – Comparisons with Publicly Traded Companies** | **Chapter Two – Comparisons with Publicly Traded Companies** |  |
|  | Table 13 | Comparative Group Operating Summary | 47 |
|  | Table 14 | Key Financial Comparisons | 49 |
|  | Table 15 | General Operating Characteristics | 56 |
|  | Table 16 | Summary Financial Performance Ratios | 57 |
|  | Table 17 | Income and Expense Analysis | 58 |
|  | Table 18 | Balance Sheet Composition | 59 |
|  | Table 19 | Growth Rates, Credit Risk, and Loan Composition | 60 |
| **III.** | **Chapter Three – Market Value Adjustments** | **Chapter Three – Market Value Adjustments** |  |
|  | Table 20 | Comparative Market Area Data | 64 |
|  | Table 21 | Summary of Montana Bank and Thrift Acquisition Activity | 70 |
|  | Table 22 | Comparative One-Year Stock Market Index Performance | 71 |
|  | Table 23 | Comparative Three-Year Stock Market Index Performance | 72 |
|  | Table 24 | Summary of Standard Conversion Stock Offerings | 75 |
|  | Table 25 | Comparative Pro Forma Market Valuation Analysis | 82 |

---

ii

Feldman Financial Advisors, Inc.

**INTRODUCTION**

At your request, we have completed and hereby provide an independent appraisal (the "Appraisal") of the estimated pro forma market value of Pioneer Federal Savings and Loan Association ("Pioneer Federal" or the "Association") as of September 2, 2025 in conjunction with Pioneer Federal's conversion (the "Conversion") from the mutual form of organization to the stock form of organization by means of a merger with and into a newly formed Montana state-chartered stock bank to be known as Pioneer State Bank (the "Bank"), issuance of all of the Bank's capital stock to a newly formed stock holding company known as PSB Financial, Inc. ("PSB Financial") and offering for sale of PSB Financial's common stock to eligible depositors of the Association, the Association's employee stock ownership plan, and certain members of the general public in the subscription and community offering (the "Stock Offering").

The Conversion is being undertaken pursuant to a Plan of Conversion adopted by the Board of Directors of Pioneer Federal. The Appraisal is furnished pursuant to the filing by the Association and the Company of regulatory applications with respect to the Conversion and Stock Offering with the Montana Division of Banking and Financial Institutions ("MDOB"), the Federal Deposit Insurance Corporation ("FDIC"), the Board of Governors of the Federal Reserve System ("Federal Reserve Board"), and the Securities and Exchange Commission ("SEC").

Feldman Financial Advisors, Inc. ("Feldman Financial") is a financial consulting and advisory firm that specializes in valuations and analyses of business enterprises and securities in the thrift, banking, and insurance industries. The background of Feldman Financial is presented in Exhibit I. In preparing the Appraisal, we conducted an analysis of Pioneer Federal that included discussions with the Association's management, the Association's legal counsel, Godfrey & Kahn S.C., and the Association's independent registered public accounting firm, Elliott Davis, LLC.

Feldman Financial Advisors, Inc.

The Appraisal is based on the Association's representation that the information in the Conversion applications and additional evidence furnished to us by the Association and its independent auditor are truthful, accurate, and complete. We did not independently verify the financial statements and other information provided by the Association and its independent accounting firm, nor did we independently value the assets or liabilities of the Association. The Appraisal considers the Association only as a going concern and should not be considered as an indication of the liquidation value of the Association.

**Our Appraisal is not intended, and must not be construed, to be a recommendation of any kind as to the advisability of purchasing shares of common stock in the Stock Offering. Moreover, because the Appraisal is necessarily based upon estimates and projections of a number of matters, all of which are subject to change from time to time, no assurance can be given that persons who purchase shares of stock in the Stock Offering will thereafter be able to sell such shares at prices related to the foregoing estimate of the Association's pro forma market value. Feldman Financial is not a seller of securities within the meaning of any federal or state securities laws, and any report prepared by Feldman Financial shall not be used as an offer or solicitation with respect to the purchase or sale of any securities.**

The Valuation Range reported herein will be updated as appropriate. These updates will consider, among other factors, any developments or changes in the Association's operating performance, financial condition, or management policies, and current conditions in the securities markets for thrift institution common stocks. Should any such new developments or changes be material, in our opinion, to the valuation of the Association, appropriate adjustments to the estimated pro forma market value will be made. The reasons for any such adjustments will be explained in detail at that time.

Feldman Financial Advisors, Inc.

**I. Business of Pioneer Federal**

**General Overview**

Pioneer Federal is a state-chartered mutual savings and loan association headquartered in Deer Lodge, Montana. Originally established in 1912, the Association conducts its operations from its main office in Deer Lodge, Montana, and a branch office in Dillon, Montana. The Association's business consists primarily of accepting deposits from the general public and investing those deposits, together with funds generated from operations, in one- to four-family residential mortgage loans secured by properties located in its primary market area. To a significantly lesser extent, the Association also originates commercial real estate loans, construction and land development loans, commercial business loans, home equity loans and lines of credit, and automobile and other consumer loans. In addition, the Association offers electronic banking services including online banking, bill payment, automated teller machines ("ATMs"), debit cards, and mobile banking.

At June 30, 2025, Pioneer Federal had total assets of $113.3 million, total deposits of $85.8 million, net total loans of $85.1 million, and total equity of $18.4 million (measuring 16.27% of total assets). The Association reported net income of $224,000 for the year ended December 31, 2024 and net income of $126,000 for the six months ended June 30, 2025. The Association's deposits are insured up to applicable limits by the FDIC. The Association is subject to examination and regulation by the MDOB, as its chartering authority, and also subject to examination by the FDIC, its primary federal regulator and deposit insurer. The Association is a member of the Federal Home Loan Bank ("FHLB") of Des Moines. At June 30, 2025, the Association had 21 full-time employees.

Feldman Financial Advisors, Inc.

Since its inception, the Association has operated as a traditional savings institution focused primarily on serving the banking needs of customers in its primary market area of Powell and Beaverhead Counties in southwestern Montana, as well as contiguous counties and areas. The Association's primary market area is predominantly rural with centralized town centers. Deer Lodge is the county seat of Powell County and had an estimated 2025 population of 3,097. Dillon is the county seat of Beaverhead County and had an estimated 2025 population of 4,196. Powell County had an estimated 2025 population of 7,229 and Beaverhead County had an estimated 2025 population of 10,136. In January 2024, Pioneer Federal relocated its main office in Deer Lodge from Milwaukee Avenue to a new state-of-the-art building on North Main Street. Both Deer Lodge and Dillon are close to the population hub of Butte, Montana, with Dillon located approximately 60 miles southwest of Butte and Deer Lodge located approximately 35 miles northwest of Butte.

The Association's long operating history has provided it with a familiarity of its local communities and customer base. The Association believes that it has a strong community reputation as a residential mortgage lender, and its staff and management are easily accessible for customers. The Association continues to stress customer service and is community focused through its staff that is knowledgeable of the local customer base and very active in community endeavors. The Association relies on its experienced and committed staff to meet the needs of customers. The Association's mission statement is:

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 in the communities it serves.

Over the past ten years, the Association has focused on conservative lending, controlled growth, and an emphasis on managing liquidity and maintaining solid capital levels. The Association's total assets increased at a compound annual growth rate ("CAGR") of 1.8% from $93.7 million at December 31, 2014 to $112.1 million at December 31, 2024. The Association's total loans increased at a CAGR of 4.1% from $58.5 million at December 31, 2014 to $87.5 million at December 31, 2024. The Association's ratio of total loans to total deposits expanded from 74.8% at year-end 2014 to 102.9% at year-end 2024. Over this same time period, the Association's ratio of total equity to total assets increased moderately from 15.79% at year-end 2014 to 16.19% at year-end 2024. The Association was steadily profitable over the past ten years with earnings averaging 0.39% of average total assets.

Feldman Financial Advisors, Inc.

The Association's current operating goal is to position the organization to succeed in an evolving and competitive financial services landscape and enhance its position as one of the leading community banking institutions in its market. The Association believes that it can provide long-term value to its customers, employees, future stockholders, and the communities it serves by executing a prudent business strategy that generates increasing profitability.

Pioneer Federal also believes there is a significant opportunity for a community-focused banking institution to continue to compete effectively in its primary market area and that the increased capital it will have after the completion of the Stock Offering will facilitate this objective. The core elements of the Association's business strategy are outlined in more detail below:

●  ***Continue to focus on originating one- to four-family residential mortgage loans for retention in the Association's loan portfolio.*** The Association is primarily a one- to four-family residential mortgage loan lender for borrowers in its primary market area. As of June 30, 2025, $73.2 million, or 84.5% of its total loan portfolio, consisted of residential first lien mortgage loans. The Association expects that residential mortgage lending will remain its primary lending activity.

●  ***Modestly increase the relative volume of commercial loans, including real estate and non-real estate secured loans by expanding the Association's commercial underwriting and administration staff.*** While Pioneer Federal plans to continue its historical focus on the origination of residential mortgage loans, the Association intends to prudently increase its originations of commercial real estate loans and commercial business loans to diversify its loan portfolio and increase yield, while seeking to manage credit and other risks related to commercial lending. At June 30, 2025, commercial real estate loans amounted to $4.4 million, or 5.1% of total loans, and commercial business loans amounted to $1.1 million, or 1.3% of total loans.

Feldman Financial Advisors, Inc.

●  ***Maintain strong asset quality through conservative loan underwriting practices.*** The Association intends to maintain strong asset quality through conservative underwriting standards, active credit monitoring, well-defined policies and procedures, and employing experienced credit professionals. As of June 30, 2025, the Association's non-performing assets measured 0.63% of total assets.

●  ***Continue to grow low-cost "core" deposits.*** Core deposits include all deposits other than certificates of deposit. The Association plans to continue its efforts to increase its core deposits to provide additional fee income and a stable source of funds to support loan growth at costs consistent with improving its interest rate spread and net interest margin. Core deposits totaled $56.2 million, or 65.4% of total deposits, at June 30, 2025. Pioneer Federal believes that expansion of its commercial lending activity will enhance its ability to attract core deposits from commercial customers.

●  ***Remain a community-oriented institution and continue to rely on high quality service to maintain and build a loyal customer base.*** The Association was established in 1912 and has been operating continuously in southwestern Montana since that time. Through the goodwill it has developed over years of providing timely and efficient banking services, the Association believes that it has been able to attract a loyal base of local customers on which it seeks to continue to build its banking business.

●  ***Strengthen the Association's digital-based banking capabilities.*** Pioneer Federal recognizes that customers can be expected to seek out banking institutions that offer a broad array of digital banking services. The Association plans to continue to implement plans to enhance its technology platform to remain an attractive option for current and potential customers, including converting to a new main data processing vendor as anticipated sometime in 2026.

●  ***Grow organically and through opportunistic branching.*** The Association plans to grow its balance sheet organically on a managed basis. Moreover, the capital that the Association is raising through the Stock Offering will enable it to increase its lending and investment capacity. In addition to organic growth, the Association may also consider expansion opportunities in its market area or in contiguous markets. The capital raised from the Stock Offering would help fund any such opportunities that may arise. The Association is considering the addition of a branch office in western Montana in one or two years, but currently has no specific plans or intentions regarding any such expansion activities.

Feldman Financial Advisors, Inc.

While its equity level is solid at 16.27% of total assets as of June 30, 2025, the Association believes it must raise additional capital in order to facilitate its growth objectives and loan generation activity, and provide a greater cushion in response to the risk profile associated with continued expansion and future economic conditions. As a stock organization upon completion of the Conversion, the Company and the Association will be organized in the ownership form used by commercial banks, most major businesses, and a large number of thrift institutions. The ability to raise new equity capital through the issuance and sale of capital stock will allow the Company and the Association the flexibility to increase its equity capital position more rapidly than by accumulating earnings.

The Association also believes that the ability to attract new capital will also help address the needs of the communities it serves and enhance its ability to expand or make acquisitions. After the Conversion, the Association will have an increased ability to merge with or acquire other financial institutions or business enterprises; however, there are no current arrangements, understandings, or agreements regarding any such acquisition opportunities. Finally, the Association expects to benefit from its employees and directors having stock ownership in its business, since that is viewed as an effective performance incentive and a means of attracting, retaining, and compensating employees and directors.

In summary, the Association's primary reasons for implementing the Conversion and undertaking the Stock Offering are to:

● Increase capital to support future growth and profitability.

● Retain and attract qualified personnel by establishing stock-based benefit plans for management and employees.

● Offer customers and employees an opportunity to acquire an equity interest in the Bank by purchasing shares of common stock of PSB Financial.

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Moving forward, the Association's strategic priorities have been identified and emphasized as described below:

● <u>Growth</u> – grow lending and core deposits by gaining market share in the Association's primary market area.

● <u>Profitability</u> – continue to improve the overall profitability of the Association through margin improvements, expanded services, and cost management.

● <u>Service</u> – continue efforts to improve the Association's customer service and overall customer experience, including enhanced technology capabilities.

● <u>Personnel</u> – continue to augment the expertise, abilities, and productivity of the Association's staff and the overall organizational management processes

The remainder of Chapter I examines in more detail the trends addressed in this section, including the impact of changes in the Association's economic and competitive environment, and recent strategic initiatives. The discussion is supplemented by the exhibits in the Appendix. Exhibit II-1 presents the Association's balance sheets as of December 31, 2023 and 2024 and June 30, 2025. Exhibit II-2 summarizes the Association's income statements for the years ended December 31, 2023 and 2024 and the six months ended June 30, 2024 and 2025.

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**Financial Condition**

Table 1 presents selected data concerning Pioneer Federal's financial position as of December 31, 2023 and 2024 and June 30, 2025. Table 2 displays relative balance sheet concentrations as of similar period-end dates.

**Table 1**

**Selected Financial Condition Data**

As of December 31, 2023 and 2024 and June 30, 2025

(Dollars in Thousands)

---

| | | | |
|:---|:---|:---|:---|
|  | | December 31, | December 31, |
|  | June 30,<br>2025 | 2024 | 2023 |
| Total assets | $113259 | $112109 | $112728 |
| Cash and cash equivalents | 9199 | 6433 | 10193 |
| Available-for-sale securities | 9412 | 9538 | 11304 |
| Held-to-maturity securities | 1850 | 2005 | 2836 |
| Other investments | 715 | 729 | 713 |
| Total loans, net | 85132 | 86327 | 81036 |
| Cash value of life insurance | 754 | 744 | 764 |
| Premises and equipment, net | 4977 | 5118 | 4715 |
| Total deposits | 85842 | 85090 | 86071 |
| Federal Home Loan Bank advances | 8000 | 8000 | 8000 |
| Total equity | 18428 | 18154 | 17829 |

---

Source: Pioneer Federal Savings and Loan Association, financial statements.

**<u>Asset Composition</u>**

The Association's total assets amounted to $113.3 million at June 30, 2025, reflecting a 1.0% or $1.1 million increase from total assets of $112.1 million at December 31, 2024. In the prior year, the Association's total assets decreased by 0.6% or $619,000 from $112.7 million at December 31, 2023 to $112.1 million at December 31, 2024. The recent increase in total assets was primarily due to an increase of $2.8 million in cash and cash equivalents, partially offset by a decrease of $1.2 million in net loans.

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**Table 2**

**Relative Balance Sheet Concentrations**

As of December 31, 2023 and 2024 and June 30, 2025

(Percent of Total Assets)

---

| | | | |
|:---|:---|:---|:---|
|  | | December 31, | December 31, |
|  | June 30,<br>2025 | 2024 | 2023 |
| Cash and cash equivalents | 8.12% | 5.74% | 9.04% |
| Available-for-sale securities | 8.31 | 8.51 | 10.03 |
| Held-to-maturity securities | 1.63 | 1.79 | 2.52 |
| Other investments | 0.63 | 0.65 | 0.63 |
| Total loans, net | 75.17 | 77.00 | 71.89 |
| Cash value of life insurance | 0.67 | 0.66 | 0.68 |
| Premises and equipment, net | 4.39 | 4.57 | 4.18 |
| Other assets | 1.08 | 1.08 | 1.03 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total assets | 100.00% | 100.00% | 100.00% |
| Total deposits | 75.79% | 75.90% | 76.36% |
| Federal Home Loan Bank advances | 7.06 | 7.14 | 7.10 |
| Other liabilities | 0.87 | 0.77 | 0.73 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total liabilities | 83.73 | 83.81 | 84.18 |
| Total equity | 16.27 | 16.19 | 15.82 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total liabilities and equity | 100.00% | 100.00% | 100.00% |

---

*Source: Pioneer Federal Savings and Loan Association, financial statements.*

Net total loans increased by $5.3 million or 6.5% from $81.0 million at year-end 2023 to $86.3 million at year-end 2024. The loan growth in 2024 was generated mainly from one- to four-family residential mortgage loans and commercial real estate loans. The decrease in net loans during the first half of 2025 reflected sluggish mortgage loan demand due to the appreciating market value of residential properties, which has continued to price out local market borrowers. As a result of the recent decrease in the Association's loan portfolio, the percentage of net total loans decreased from 77.0% of total assets at December 31, 2024 to 75.2% of total assets at June 30, 2025 after increasing from 71.9% of total assets at December 31, 2023.

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Cash and cash equivalents increased by $2.8 million from $6.4 million at December 31, 2024 to $9.2 million at June 30, 2025. The recent increase in cash and cash equivalents was primarily attributable to an increase of deposits, along with paydowns of loan balances and investment securities. The aggregate amount of cash and investment securities increased by $2.5 million from $18.7 million, or 16.7% of total assets, at December 31, 2024 to $21.2 million, or 18.7% of total assets, at June 30, 2025.

The largest segment of the Association's loan portfolio comprises residential real estate mortgage loans. As of June 30, 2025, one- to four-family residential mortgage loans accounted for $73.2 million or 84.5% of total loans as illustrated in Exhibit II-3. The Association's loan portfolio also included commercial real estate loans ($4.4 million or 5.1% of total loans), home equity loans and lines of credit ($3.5 million or 4.1% of total loans), construction and land development loans ($3.0 million or 3.4% of total loans), other consumer loans ($1.3 million or 1.5% of total loans), and commercial business loans ($1.1 million or 1.3% of total loans).

The Association's loan originations totaled $16.2 million for the year ended December 31, 2024 and $5.2 million for the six months ended June 30, 2025. Residential mortgage loans comprised the bulk of the origination volume during these periods, followed by construction loans and home equity lines of credit. Pioneer Federal periodically utilizes loan participations as a tool for serving the local communities and to diversify its loan portfolio. Loan participations also help the Association limit its lending risk by diversifying both geographical and collateral distribution. The Association maintains internal limits on the amount of a purchased loan participation in any one project and the aggregate exposure to loan participations in its loan portfolio.

Pioneer Federal's one- to four-family residential mortgage loans are almost entirely fixed-rate loans. The Association's residential mortgage loans originated in the primary market area are generally underwritten to Fannie Mae secondary market standards. Pioneer Federal generally charges a modest premium on the interest rate compared to market competitors as the Association's loans are not sold into the secondary market, allowing direct contact with the borrower over the life of the loan. Terms on the Association's residential mortgage loans vary with maturities of up to 30 years. Loan-to-value ("LTV") ratios on residential mortgage loans are limited to 80% of the purchase price or appraised value, whichever is lower. Pioneer Federal does not offer or originate higher-risk loans such as subprime loans on one- to four-family residential properties.

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Pioneer Federal originates home equity lines of credit ("HELOCs") and home equity loans, which are generally secured by first or second mortgages on owner-occupied residences. HELOCs have a 10-year revolving period with a 20-year amortization term, as the customer has the option to extend the 10-year revolving period when each 10-year period is coming due. HELOCs are fixed-rate for the first six months and then are indexed to the Wall Street Journal prime rate plus a 1.0% margin. A 0.125% rate reduction option is available for automatic payment and the same rate reduction is offered if the deposit account is maintained at Pioneer Federal. The LTV ratio for HELOCs and home equity loans is generally up to 80%, taking into account any superior mortgage on the collateral property. HELOCs are generally underwritten in the same manner as Pioneer Federal's one- to four-family residential mortgage loans.

Commercial real estate loans and commercial business loans have not historically comprised a significant portion of Pioneer Federal's total loan portfolio. While the Association expects that one- to four-family residential real estate lending will continue to be its primary emphasis of lending operations, Pioneer Federal intends to modestly increase its emphasis on commercial real estate loans and commercial business loans in an effort to increase the overall loan portfolio yield.

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Pioneer Federal's commercial loan portfolio (including commercial real estate and commercial business loans) consists of approximately 20 loans with an aggregate principal balance of $5.6 million as of June 30, 2025. The Association has not historically originated in-house commercial loans and instead has purchased loan participations of commercial loans (real estate and non-real estate) through purchase relationships with two Montana-based financial institutions. The commercial loans in portfolio are secured by both owner-occupied and non-owner-occupied properties, as well as business-related assets with essentially all loans secured by property within Montana. The commercial real estate and non-real estate loans (participations) are generally fixed-rate for the first five years of the loan with an interest rate generally at the Wall Street Journal prime rate plus 1.0%. The interest rate adjusts every five years thereafter. Commercial real estate loans generally have terms up to 25 years. LTV ratios of commercial real estate loans are generally limited to 75% of the purchase price or appraised value, whichever is lower.

At June 30, 2025, Pioneer Federal's largest purchased participation interest had an outstanding balance of $1.0 million, representing a 31% participation interest in a $3.95 million commercial real estate loan secured by a Powell County medical center. At June 30, 2025, the Association also had a line of credit participation purchased with a maximum credit of $1.75 million, representing 2.2% participation interest in an $81.5 million loan, secured by government-backed accounts receivable. As of June 30, 2025, the Association was not aware of any participation interests for which the loan is non-performing.

Pioneer Federal had $2.9 million in construction and land development loans as of June 30, 2025. The Association originates one-close construction/permanent loans, primarily to individuals for the construction of their primary residences and occasionally to contractors and builders of single-family homes. These loans combine the construction financing and the permanent mortgage into one closing, and after the construction period the loan converts to a permanent one-to four-family residential mortgage loan. Residential construction loans are underwritten to the same guidelines for permanent residential mortgage loans. Construction loans generally can be made with a maximum LTV ratio of 80% of the estimated appraised market value upon completion of the project. Pioneer Federal also originates a limited amount of land development loans to complement the construction lending activities, as such loans are generally secured by lots that will be used for residential development.

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The Association's consumer loans totaled $1.3 million as of June 30, 2025. Pioneer Federal's consumer loan portfolio generally consists of loans secured predominantly by automobiles and trucks (new and used). Consumer loans have fixed interest rates and terms of up to six years, with LTV ratios generally capped at 80% of the invoice price (for new vehicles) or 75% of the lesser of National Automobile Dealers Association trade-in value (for used vehicles) or purchase price.

Exhibit II-4 presents a summary of the Association's portfolio of cash, short-term liquidity, and investment securities as of December 31, 2023 and 2024 and June 30, 2025. Consistent with its Investment Policy, the Association's primary investment objectives are to (1) provide and maintain adequate liquidity and to meet any reasonable decline in deposits and any anticipated increase in the loan portfolio; (2) reduce interest rate risk and its impact on both earnings and the market value of the balance sheet; (3) maintain safety through a balance of high-quality, diversified investments with minimum risk characteristics; (4) provide collateral for pledging requirements; and (5) maximize returns consistent with the Association's liquidity and safety requirements.

The Association's Board of Directors is responsible for establishing appropriate risk limits and for reviewing and approving the Investment Policy at least annually. The Investment Committee, comprised of the Chief Executive Officer ("CEO") and at least two appointed members of the Board of Directors, is responsible for developing, implementing, and approving investment strategies and monitoring investment activities. The CEO is responsible for proposing investment strategies and for executing, approved portfolio strategies. The Association's current Investment Policy authorizes, with certain limitations, investments in U.S. Treasury and federal agency securities, mortgage-backed securities, collateralized mortgage obligations, corporate debt, commercial paper, state and municipal securities, mutual funds, federal funds, and interest-bearing deposits in other financial institutions, among other investments.

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As shown in Exhibit II-4, the Association's aggregate cash and investments amounted to $21.2 million or 18.7% of total assets as of June 30, 2025. Cash and cash equivalents amounted to $9.2 million or 8.1% of the Association's total assets as of June 30, 2025. Cash and cash equivalents increased decreased from $6.4 million or 5.7% of total assets as of year-end 2024 as the Association experienced excess liquidity due to sluggish residential mortgage demand and increased deposit flows.

The Association's available-for-sale securities portfolio, reported at fair value, totaled $9.4 million or 8.3% of total assets at June 30, 2025 and was composed of $5.5 million of mortgage-backed securities, $2.9 million of municipal and state obligations, and $1.0 million of U.S. Government and federal agency securities. The Association's mortgage-backed securities are issued or guaranteed by U.S. Government-sponsored enterprises. The held-to-maturity securities portfolio, reported at amortized cost, totaled $1.8 million or 1.6% of total assets at June 30, 2025 and was composed of $975,000 of municipal and state obligations, $790,000 of mortgage-backed securities, and $84,000 of U.S. Government and federal agency securities. As of June 30, 2025, the Association had net unrealized losses of $575,000 in its available-for-sale securities portfolio $88,000 in its held-to-maturity securities portfolio. The Association also owned $427,000 of common stock in the FHLB of Des Moines and $287,000 in mutual funds as of June 30, 2025.

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**<u>Liability Composition</u>**

Deposits are the Association's primary external source of funds for lending and investment purposes. Exhibit II-5 presents a summary of the Association's deposit composition as of December 31, 2023 and 2024 and June 30, 2025. Total deposits amounted to $85.8 million or 75.8% of total assets and 90.5% of total liabilities at June 30, 2025. Total deposits increased by 0.9% or $752,000 from $85.1 million at December 31, 2024 to $85.8 million at June 30, 2025. Pioneer Federal offers checking accounts, savings accounts, tiered money market accounts, certificate of deposits accounts, and individual retirement account ("IRA") certificates.

The Association's total certificate accounts decreased by $3.0 million or 9.2% from $32.7 million or 38.4% of total deposits at year-end 2024 to $29.7 million or 34.6% of total deposits at June 30, 2025. The decline was partially due to the Association opting not to compete for higher-cost certificate accounts. Core deposits, defined as total deposits excluding certificate of deposit accounts, increased by $3.8 million or 7.2% from $52.4 million at year-end 2024 to $56.2 million at June 30, 2025. The ratio of core deposits to total deposits increased from 61.6% at December 31, 2024 to 65.4% at June 30, 2025, while the concentration of certificate deposits to total deposits decreased from 38.4% to 34.6% over the same time period.

The Association relies on customer service and longstanding relationships with customers in its primary market area to attract and retain deposits. Deposit account terms vary according to the minimum balance required, the time period that funds must remain on deposit, and the interest rate, among other factors. In determining the rates and terms of its deposit accounts, the Association considers the rates offered by competitors, liquidity needs, growth objectives, current operating strategies, and customer preferences and concerns. The Association has placed a concerted emphasis on attracting core deposit accounts, which tend to represent lower cost and more stable funding sources. For the six months ended June 30, 2025, the Association's weighted average cost of core deposits was 0.37%, the weighted average cost of certificate accounts was 3.30%, and the overall weighted average cost of total deposits was 0.82%.

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As a member of the FHLB of Des Moines, the Association may obtain FHLB borrowings based upon the security of FHLB capital stock owned and certain of the Association's residential real estate mortgage loans. Historically, the Association has not actively utilized FHLB borrowings as a source of funds. However, in September 2023, the Association obtained a $8.0 million FHLB advance that carries a fixed rate of 4.30% and matures in September 2028. The FHLB borrowing was used to support funding the construction of a new office facility in Deer Lodge and also for funding loan growth. At June 30, 2025, Pioneer Federal had additional borrowing capacity of $37.7 million from the FHLB of Des Moines. The Association also has a federal funds line of credit with its main correspondent institution. Federal funds purchased generally mature within one to four days from the transaction date. The Association had no federal funds purchased as of December 31, 2024 or June 30, 2025.

**<u>Equity Capital</u>**

The Association has historically maintained solid capital levels and its total equity amounted to $18.4 million or 16.27% of total assets at June 30, 2025. The ratio of total equity to assets increased from 16.19% at December 31, 2024 and 15.82% at December 31, 2023. Profitable operating results contributed to recent increases in the Association's total equity. As of June 30, 2025, the Association's total equity was composed of $18.7 million in retained earnings, offset by $305,000 in accumulated other comprehensive loss ("AOCL"). The Association's AOCL reflects the after-tax effect of unrealized losses on available-for-sale securities. The Association's AOCL improved by $100,000 for the year ended December 31, 2024 and $149,000 for the six months ended June 30, 2025. The recent decline in market interest rates had the effect of reducing the amount of net unrealized losses in the Association's available-for-sale securities portfolio.

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Pioneer Federal's capital level remains strong in comparison to minimum regulatory requirements. The Association has qualified for and elected to use the community bank leverage ratio ("CBLR") framework for regulatory capital requirement purposes. An institution opting into the CBLR framework and meeting all requirements under the framework will be considered to have met the well-capitalized ratio requirements and is be required to report or calculate risk-based capital ratios. As of June 30, 2025, the required CBLR level was a tier 1 leverage capital ratio greater than or equal to 9.0%. The Association's tier 1 leverage capital ratio increased from 16.45% at December 31, 2023 to 16.81% at December 31, 2024 and 17.00% at June 30, 2025. Based on the CBLR requirement, the Association was considered well capitalized for regulatory capital purposes as of June 30, 2025.

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**Income and Expense Trends**

Table 3 displays the main components of the Association's earnings performance for the years ended December 31, 2023 and 2024 and the six months ended June 30, 2024 and 2025. Table 4 displays the Association's principal income and expense ratios as a percent of average assets for the corresponding periods. Table 5 displays the Association's weighted average yields on interest-earning assets and weighted average costs of interest-bearing liabilities.

**<u>Six Months Ended June 30, 2024 and 2025</u>**

Net income for the six months ended June 30, 2025 was $126,000, a decrease of $79,000 or 38.6%, compared to $205,000 for the six months ended June 30, 2024. The decrease was due to the combination of a non-recurring gain on the sale of the former Deer Lodge office location in 2024 of $311,000 along with an increase of $90,000 in professional fees incurred in 2025 in preparation for the Conversion. Pioneer Federal's annualized return on average assets ("ROA") measured 0.22% for the six months ended June 30, 2025, compared to 0.37% for the six months ended June 30, 2024.

The Association's net interest income increased by $161,000 or 10.1% from $1.6 million for the six months ended June 30, 2024 to $1.7 million for the six months ended June 30, 2025. The net interest spread improved by 27 basis points from 2.63% in the first half of 2024 to 2.90% in the first half of 2025. The yield on interest-earning assets increased by 29 basis points from 4.63% to 4.92% over the comparative periods, while the cost of interest-bearing liabilities increased by only 2 basis points from 2.00% to 2.02%. Increases in the overall loan portfolio yield drove the improvements in the net interest spread. Relative to average assets, annualized net interest income increased from 2.81% to 3.10%.

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**Table 3**

**Income Statement Summary** 

For the Years Ended December 31, 2023 and 2024

And the Six Months Ended June 30, 2024 and 2025

(Dollars in Thousands)

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Six Months Ended | Six Months Ended | Year Ended | Year Ended |
|  | June 30, | June 30, | December 31, | December 31, |
|  | 2025 | 2024 | 2024 | 2023 |
| Total interest income | $2600 | $2436 | $5015 | $4381 |
| Total interest expense | 867 | 864 | 1823 | 1088 |
| &nbsp;&nbsp;&nbsp;Net interest income | 1733 | 1572 | 3192 | 3293 |
| Provision for (recovery of) credit losses | (104) | - | 28 | 35 |
| &nbsp;&nbsp;&nbsp;Net interest income after provision | 1837 | 1572 | 3164 | 3258 |
| Total non-interest income | 128 | 414 | 495 | 268 |
| Total non-interest expense | 1831 | 1722 | 3362 | 3136 |
| Income before income taxes | 135 | 264 | 297 | 390 |
| Income tax expense | 9 | 59 | 73 | 133 |
| &nbsp;&nbsp;&nbsp;Net income | $126 | $205 | $224 | $257 |

---

Source: Pioneer Federal Savings and Loan Association, financial statements.

Pioneer Federal recorded a $104,000 recovery on credit losses on loans for the six months ended June 30, 2025, compared to no provision or recovery for the six months ended June 30, 2024 As a result, the Association's ratio of allowance for credit losses on loans to total loans decreased from 1.37% at December 31, 2024 to 1.27% at June 30, 2025. Non-performing assets decreased from $1.7 million or 1.53% of total assets at December 31, 2024 to $718,000 or 0.63% of total assets at June 30, 2025. Management's determination of the adequacy of the allowance for credit losses was based, in part, on the low balances of non-accrual loans, delinquent loans, and net charge-offs in the first half of 2025 and prior periods.

Feldman Financial Advisors, Inc.

**Table 4**

**Income Statement Ratios** 

For the Years Ended December 31, 2023 and 2024

And the Six Months Ended June 30, 2024 and 2025

(Percent of Average Assets)

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Six Months Ended | Six Months Ended | Year Ended | Year Ended |
|  | June 30, | June 30, | December 31, | December 31, |
|  | 2025(1) | 2024(1) | 2024 | 2023 |
| Total interest income | 4.65% | 4.36 | 4.47% | 3.88% |
| Total interest expense | 1.55 | 1.55 | 1.62 | 0.96 |
| &nbsp;&nbsp;&nbsp;Net interest income | 3.10 | 2.81 | 2.84 | 2.92 |
| Provision for (recovery of) credit losses | (0.19) | 0.00 | 0.02 | 0.03 |
| &nbsp;&nbsp;&nbsp;Net interest income after provision | 3.29 | 2.81 | 2.82 | 2.89 |
| Total non-interest income | 0.23 | 0.74 | 0.44 | 0.24 |
| Total non-interest expense | 3.28 | 3.08 | 2.99 | 2.78 |
| Income before income taxes | 0.24 | 0.47 | 0.26 | 0.35 |
| Income tax expense | 0.02 | 0.10 | 0.07 | 0.12 |
| &nbsp;&nbsp;&nbsp;Net income | 0.22 | 0.37 | 0.20 | 0.23 |

---

(1) Annualized ratios for the period.

Source: Pioneer Federal Savings and Loan Association, financial data.

Non-interest income totaled $128,000 for the six months ended June 30, 2025, a decrease of $286,000 or 69.0% from $414,000 for the six months ended June 30, 2024. Excluding the gain on the sale of the former office location in the first half of 2024, non-interest income increased by $25,000 or 24.4% from $103,000 (or 0.18% annualized to average assets) to $128,000 (or 0.23% annualized to average assets) over the comparative periods. Interchange fees are the largest contributor of non-interest revenue and increased from $56,000 in the first half of 2024 to $87,000 in the first half of 2025. Service fees declined moderately from $36,000 in the first half of 2024 to $30,000 in the first half of 2025.

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The Association's non-interest expense increased by $109,000 or 6.3% to $1.8 million for the six months ended June 30, 2025, compared to $1.7 million for the six months ended June 30, 2024. The increase in non-interest expense was due primarily to a $90,000 or 144.3% increase in professional fees and a $26,000 or 10.9% increase in occupancy costs. As previously noted, the increase in professional fees was mainly incurred in preparation for the Conversion. The increase in occupancy costs reflected the increased depreciation expense associated with the Association's new office building in Deer Lodge. The ratio of annualized non-interest expense to average assets increased from 3.08% in the first half of 2024 to 3.15% in the first half of 2025.

Income tax expense declined from $60,000 for the six months ended June 30, 2024 to $9,000 for the six months ended June 30, 2025. The decrease was chiefly due to the decline in pre-tax income from $264,000 to $135,000 over the observed periods. The effective tax rate declined from 22.6% in the first half of 2024 to 6.6% in the first half of 2025.

**<u>Years Ended December 31, 2023 and 2024</u>**

Net income declined by $33,000 or 13.0% from $257,000 for the year ended December 31, 2023 to $224,000 for the year ended December 31, 2024. The Association's ROA decreased from 0.23% for the year ended December 31, 2023 to 0.20% for the year ended December 31, 2024. The primary reasons for the decline in earnings were a $100,000 decrease in net interest income and a $226,000 increase in non-interest expense, offset partially by a $227,000 increase in non-interest income. The decrease in net interest income was largely attributable to a decrease in the Association's net interest spread from 2.79% in 2023 to 2.65% in 2024. The increase in non-interest expense was attributable to an increase of $260,000 in occupancy costs related to the opening of the new office location in Deer Lodge. The increase in non-interest income primarily reflected the gain on the sale of the former office location in Deer Lodge.

Feldman Financial Advisors, Inc.

**Table 5**

**Yield and Cost Summary** 

For the Years Ended December 31, 2023 and 2024

And the Six Months Ended June 30, 2024 and 2025

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| | | | | |
|:---|:---|:---|:---|:---|
|  | Six Months Ended | Six Months Ended | Year Ended | Year Ended |
|  | June 30, | June 30, | December 31, | December 31, |
|  | 2025(1) | 2024(1) | 2024 | 2023 |
| **<u>Weighted Average Yields</u>** |  |  |  |  |
| Interest-bearing deposits | 2.95% | 5.64% | 5.32% | 2.47% |
| Investment securities | 2.64 | 2.31 | 2.71 | 2.43 |
| Loans | 5.37 | 4.95 | 5.01 | 4.55 |
| Other investments | 9.37 | 8.88 | 9.11 | 1.80 |
| &nbsp;&nbsp;&nbsp;Total interest-earning assets | 4.92 | 4.63 | 4.77 | 4.05 |
| **<u>Weighted Average Costs</u>** |  |  |  |  |
| Interest-bearing demand deposits | 0.20 | 0.20 | 0.21 | 0.20 |
| Savings deposits | 2.06 | 1.10 | 1.12 | 0.84 |
| Certificate of deposit accounts | 3.28 | 3.17 | 3.31 | 2.18 |
| &nbsp;&nbsp;&nbsp;Total interest-bearing deposits | 1.78 | 1.76 | 1.89 | 1.23 |
| Federal Home Loan Bank advances | 4.33 | 4.35 | 4.38 | 4.34 |
| &nbsp;&nbsp;&nbsp;Total interest-bearing liabilities | 2.02 | 2.00 | 2.12 | 1.25 |
| Net interest rate spread (2) | 2.90 | 2.63 | 2.65 | 2.79 |
| Net interest margin (3) | 3.28 | 2.99 | 3.03 | 3.04 |

---

(1) Annualized ratios.

(2) Weighted average yield on interest-earning
 assets less the weighted average cost of interest-bearing liabilities.

(3) Net interest income divided by
 average total interest-earning assets.

Source: Pioneer Federal Savings and Loan Association, financial data.

Net interest income decreased by $100,000 or 3.0% to $3.2 million for the year ended December 31, 2024 compared to $3.3 million for the year ended December 31, 2023. The decrease reflects the decrease of 14 basis points in the net interest rate spread to 2.65% for the year ended December 31, 2024 from 2.79% for the year ended December 31, 2023, while average interest-earning assets decreased by $3.0 million or 2.8% on a year-to-year basis. The Association's weighted average yield on interest-earning assets increased by 72 basis points from 4.05% in 2023 to 4.77% in 2024. In contrast, the weighted average cost of interest-bearing liabilities increased by 87 basis points from 1.25% in 2023 to 2.12% in 2024. Total interest income increased by $634,000 or 14.5% in 2024, while total interest expense increased by $734,000 or 67.4%. The increase in interest expense was impacted by a full year's effect of the FHLB borrowing outstanding in 2024 and a broad increase in market interest rates on deposits.

Feldman Financial Advisors, Inc.

The aggregate provision for credit losses decreased from $35,000 in 2023 to $28,000 in 2024. The provision for losses on loans increased from $18,000 to $68,000, while the provision for losses on unfunded commitments decreased from $17,000 to a recovery of $40,000. Net loan charge-offs amounted to zero in 2023 and 2024. The allowance for credit losses on loans increased by $68,000 from $1.1 million (1.38% of total loans) at December 31, 2023 to $1.2 million (1.37% of total loans) at December 31, 2024. Non-performing loans increased from $597,000 as of December 31, 2023 to $1.7 million as of December 31, 2024. The increase was largely due to an increase of $582,000 in non-accrual residential mortgage loans.

Non-interest income totaled $495,000 for the year ended December 31, 2024, an increase of $227,000 or 84.6% from $268,000 for the year ended December 31, 2023. The increase was primarily due to a $311,000 gain on the sale of the former office in Deer Lodge following the opening of a new office location. Excluding the property sale gain, non-interest income decreased by $84,000 or 31.3% from $268,000 (or 0.25% of average assets) in 2023 to $184,000 (or 0.16% of average assets) in 2024. Interchange fees decreased by $11,000 or 7.4% from $138,000 in 2023 to $127,000 in 2024. The Association recorded a gain of $56,000 on the increase in the cash value of life insurance in 2023, but reported a decrease of $19,000 in 2024 due to the change in the cash value of life insurance.

Feldman Financial Advisors, Inc.

The Association's non-interest expense increased by $226,000 or 7.2% to $3.4 million for the year ended December 31, 2024, compared to $3.1 million for the year ended December 31, 2023. The increase was due primarily to a $260,000 or 114.5% increase in occupancy costs as a result of the construction of a new office building in Deer Lodge. Salaries and employee benefits decreased by $19,000 or 1.2% and amounted to $1.6 million for the year ended December 31, 2024. The ratio of non-interest expense to average assets increased from 2.96% for the year ended December 31, 2023 to 3.00% for the year ended December 31, 2024.

Income tax expense decreased by $60,000 or 44.7% to $73,000 for the year ended December 31, 2024, compared to $133,000 for the year ended December 31, 2023. The decrease was due primarily to a $93,000 or 23.8% decrease in pre-tax income. The effective tax rates were 34.1% and 24.7% for the years ended December 31, 2023 and 2024.

Feldman Financial Advisors, Inc.

**Interest Rate Risk Management**

The Association seeks to reduce its earnings vulnerability and capital risk to changes in market interest rates by managing the mismatch between asset and liability maturities and interest rates. The Association's Asset/Liability Committee ("ALCO") focuses on ensuring a stable and steadily increasing flow of net interest income through managing the asset and liability mix of the balance sheet. The ALCO is expected to integrate the Association's asset/liability management process into its operational decision making, including portfolio structure, investments, business planning, funding decisions, and pricing.

The Association attempts to manage the exposure of the net interest margin to unexpected changes due to interest rate fluctuations. The Association's goal is not to eliminate interest rate risk, but to produce results that are consistent with the need for adequate liquidity, adequate capital, projected growth, acceptable risk, and appropriate profitability standards. The Association has interest rate risk guidelines that define the maximum potential reduction in net interest income and equity that the Association is prepared to accept. The Association has implemented various strategies to manage its interest rate risk. By enacting these strategies, the Association believes that it is better positioned to react to changes in market interest rates. These strategies include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Maintaining capital levels that exceed the thresholds for well-capitalized
status under federal regulations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Maintaining a high level of liquidity and investments.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Growing core deposit accounts that provide a stable, low-cost source of funds.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Managing the investment securities portfolio in a manner to reduce the average
maturity and effective life of the portfolio.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Continuing to diversify the loan portfolio by adding more commercial real
estate loans and commercial business loans, which typically have shorter maturities and/or balloon payments.

Feldman Financial Advisors, Inc.

The Association monitors its interest rate sensitivity management through the use of models which generate estimates of the change in its net portfolio value of equity (economic value of equity or "EVE") over a range of interest rate scenarios. EVE represents the market value of portfolio equity, which is different from book value, and is equal to the market value of assets minus the market value of liabilities (representing the difference between incoming and outgoing discounted cash flows of assets and liabilities) with adjustments made for off-balance sheet items. The EVE ratio, under any interest rate scenario, is defined as the EVE in that scenario divided by the market value of assets in the same scenario. Table 6 sets forth the Association's EVE as of June 30, 2025 and reflects the changes to EVE as a result of the changes in interest rates as indicated.

**Table 6** 

**Economic Value of Equity** 

As of June 30, 2025

(Dollars in Thousands)

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| Basis Point <br>Change in <br>Interest<br> Rates (1) | Estimated <br>EVE (2)<br> ($000s) | Amount <br>Change<br> from Level <br>($000s) | Percent <br>Change<br> from Level | EVE<br> Ratio (3) | Basis Point<br> Change in<br> EVE Ratio |  |
| + 300 b.p. | $15235 | $(3116) | (16.98)% | 13.47% | (276) |) b.p. |
| + 200 b.p. | 16210 | (2141) | (11.67)% | 14.33% | (189) |) b.p. |
| + 100 b.p. | 17246 | (1105) | (6.02)% | 15.25% | (98) |) b.p. |
| Level | 18351 |  |  | 16.23% |  |  |
| - 100 b.p. | 19459 | 1108 | 6.04% | 17.21% | 98 | b.p. |
| - 200 b.p. | 20649 | 2298 | 12.52% | 18.26% | 203 | b.p. |
| - 300 b.p. | 21928 | 3577 | 19.49% | 19.39% | 316 | b.p. |

---

(1) Assumes an immediate uniform change in interest rates at all maturities.

(2) EVE is the discounted present value of expected cash flows from assets, liabilities, and off-balance sheet contracts.

(3) EVE ratio represents EVE divided by the present value of assets, which is calculated as the discounted value of incoming cash flows on interest-earning assets.

Source: Pioneer Federal Savings and Loan Association, financial data.

Feldman Financial Advisors, Inc.

Table 6 indicates that at June 30, 2025, in the event of an instantaneous 100 basis point increase in interest rates, the Association would experience a 6.0% decrease in EVE. In the event of an instantaneous 100 basis point decrease in interest rates, the Association would experience a 6.0% increase in EVE. In the event of an instantaneous 200 basis point increase in interest rates, the Association would experience an 11.7% decrease in EVE. In the event of an instantaneous 200 basis point decrease in interest rates, the Association would experience a 12.5% increase in EVE. Because of the Association's relatively high concentration of fixed-rate loans, dramatic increases in the interest rate scenario produces broad declines in Pioneer Federal's resulting EVE because assets decline in value significantly more than liabilities lose in value. The EVE simulations give no effect to any steps that the Association might take to counter the impact of such interest rate movement.

In addition to modeling changes in EVE, the Association also analyzes potential changes to net interest income for a 12-month period under rising and falling interest rate scenarios. The Association estimates its net interest income for a 12-month period, and then calculates what net interest income would be for the same period under the assumptions that the U.S. Treasury yield curve increases or decreases instantly by up to 300 basis points or decreases instantly by up to 300 basis points, in 100 point increments, with changes in interest rates representing immediate and permanent, parallel shifts in the yield curve.

Table 7 below sets forth, as of June 30, 2025, the calculation of the estimated changes in the Association's net interest income resulting from the designated immediate changes in the U.S. Treasury yield curve. As shown in Table 7, an upward change of 100 basis points in market interest rates would decrease net interest income by $44,000 and an upward change of 200 basis points would decrease net interest income by $89,000. A downward upward change of 100 basis points in market interest rates would increase net interest income by $96,000 and an upward change of 200 basis points would increase net interest income by $184,000.

Feldman Financial Advisors, Inc.

**Table 7** 

**Net Interest Income Sensitivity** 

As of June 30, 2025

(Dollars in Thousands)

---

| | | | |
|:---|:---|:---|:---|
| Basis Point <br>Change in <br>Interest<br> Rates (1) | Estimated<br> Net Interest<br> Income<br> ($000s) | Change in<br> Net Interest<br> Income<br> ($000s) | Percent<br> Change<br> from Level <br> (%) |
| + 300 b.p. | $3465 | $(135) | (3.75)% |
| + 200 b.p. | 3511 | (89) | (2.47)% |
| + 100 b.p. | 3556 | (44) | (1.22)% |
| Level | 3600 |  |  |
| - 100 b.p. | 3696 | 96 | 2.67% |
| - 200 b.p. | 3784 | 184 | 5.11% |
| - 200 b.p. | 3861 | 261 | 7.25% |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Assumes an immediate uniform change in interest rates at all maturities.

Source: Pioneer Federal Savings and Loan Association, financial data.

Feldman Financial Advisors, Inc.

**Asset Quality**

Table 8 summarizes the Association's total non-performing assets as of December 31, 2023 and 2024 and June 30, 2025. Historically, the Association has a solid record of reporting satisfactory asset quality. Pioneer Federal's emphasis on residential mortgage lending in its primary market area has contributed to the consistently low level of loan delinquencies and charge-offs. Non-accrual loans increased from zero at December 31, 2023 to $585,000 at December 31, 2024, and subsequently declined to $111,000 at June 30, 2025. Relative to total loans, non-accrual loans declined from 0.67% at December 31, 2024 to 0.13% at June 30, 2025. The increase of non-accrual loans was chiefly due to an increase in non-accrual residential mortgage loans to $582,000, which declined to $108,000 as of June 30, 2025. The Association had no foreclosed assets or troubled debt restructurings as of December 31, 2023 and 2024 and June 30, 2025. The Association's ratio of non-performing assets to total assets increased from 0.53% at December 31, 2023 to 1.53% at December 31, 2024 before declining to 0.63% at June 30, 2025.

Table 9 summarizes Pioneer Federal's allowance for credit losses on loans ("ACL") as of and for the years ended December 31, 2023 and 2024 and the six months ended June 30, 2025. Effective January 1, 2023, the Association began to use a current expected credit loss ("CECL") model to estimate the ACL. The ACL decreased from $1.2 million at December 31, 2024 to $1.1 million at June 30, 2025 following the recording of a $104,000 recovery on the ACL during the first half of 2025. Net charge-offs amounted to $5,000 or 0.01% of average loans in the first half of 2025. As a result, the ratio of the ACL to total loans decreased from 1.37% at December 31, 2024 to 1.27% at June 30, 2025. The ratio of the ACL to total non-performing loans increased from 70.4% at December 31, 2024 to 153.1% at June 30, 2025, mainly due to the decline in non-performing loans from $1.7 million at December 31, 2024 to $718,000 at June 30, 2025.

Feldman Financial Advisors, Inc.

**Table 8**

**Non-performing Assets Summary**

As of December 31, 2023 and 2024 and June 30, 2025

(Dollars in Thousands)

---

| | | | |
|:---|:---|:---|:---|
|  | | December 31, | December 31, |
|  | June 30,<br>2025 | 2024 | 2023 |
| <u>Non-accrual Loans</u> |  |  |  |
| Residential first lien mortgage loans | $108 | $582 | $- |
| Consumer loans | 3 | 3 | - |
| &nbsp;&nbsp;&nbsp;Total non-accrual loans | 111 | 585 |  |
| Accruing loans past due 30-89 days | 147 | 862 | 597 |
| Accruing loans past due 90 days or more | 460 | 270 | - |
| &nbsp;&nbsp;&nbsp;Total non-performing loans | $718 | $1717 | $597 |
| Real estate owned | - | - | - |
| &nbsp;&nbsp;&nbsp;Total non-performing assets | $718 | $1717 | $597 |
| Total non-accrual loans to total loans | 0.13% | 0.67% | 0.00% |
| Total non-performing loans to total loans | 0.83% | 1.95% | 0.72% |
| Total non-performing assets to total assets | 0.63% | 1.53% | 0.53% |

---

Source: Pioneer Federal Savings and Loan Association, financial data.

Feldman Financial Advisors, Inc.

**Table 9**

**Allowance for Credit Losses on Loans**

As of or For the Years Ended December 31, 2023 and 2024

And the Six Months Ended June 30, 2025

(Dollars in Thousands)

---

| | | | |
|:---|:---|:---|:---|
|  | | At or For the | At or For the |
|  | | Year Ended | Year Ended |
|  | | December 31, | December 31, |
|  | At or For the<br>Six Months<br>Ended<br>June 30,<br>2025 | 2024 | 2023 |
| Allowance at beginning of period | $1208 | $1141 | $1180 |
| Impact of adoption of CECL accounting standard |  |  | (57) |
| Provision for (recovery of) credit losses on loans | (104) | 68 | 18 |
| Charge-offs: |  |  |  |
| &nbsp;&nbsp;&nbsp;Residential loans |  |  |  |
| &nbsp;&nbsp;&nbsp;Commercial loans |  |  |  |
| &nbsp;&nbsp;&nbsp;Consumer loans | (5) | - | (1) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total charge-offs | (5) |  | (1) |
| Recoveries: |  |  |  |
| &nbsp;&nbsp;&nbsp;Residential loans |  |  |  |
| &nbsp;&nbsp;&nbsp;Commercial loans |  |  |  |
| &nbsp;&nbsp;&nbsp;Consumer loans | - | - | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total recoveries |  |  | 1 |
| Net charge-offs | (5) | - | - |
| Allowance at end of period | $1099 | $1208 | $1141 |
| Allowance to non-performing loans | 153.06% | 70.37% | 191.06% |
| Allowance to gross total loans | 1.27% | 1.37% | 1.38% |
| Net charge-offs to average loans | 0.01% | 0.00% | 0.00% |

---

Source: Pioneer Federal Savings and Loan Association, financial data.

Feldman Financial Advisors, Inc.

**Office Facilities**

Pioneer Federal conducts business from its main office (approximately 6,500 square feet) located at 202 North Main Street in Deer Lodge, Montana, and a branch office (approximately 11,500 square feet) located at 32 North Washington Street in Dillon, Montana. Both of the Association's offices are full-service facilities and offer a full range of consumer banking products. The Deer Lodge office was opened in January 2024 following the construction of a new state-of-the-art building. The former Milwaukee Avenue office in Deer Lodge was relocated to the new North Main Street office location. The offices in Deer Lodge and Dillon are owned by Pioneer Federal and utilized by the Association as the sole occupant. Both offices feature ATMs and drive-up access.

The net book value of the Association's premises and equipment totaled $5.0 million (net of accumulated depreciation of $1.7 million) at June 30, 2025. Because of the construction of the new office, the Association's net premises and equipment increased from $759,000 or 0.7% of total assets at December 31, 2021 to $5.0 million or 4.4% of total assets at June 30, 2025. The Association believes that its current facilities are adequate to meet its present and foreseeable needs, subject to possible future expansion. The Association presently has no specific plans regarding the establishment of new branch offices or loan production offices.

Feldman Financial Advisors, Inc.

**Market Area**

**<u>Overview of Market Area</u>**

Pioneer Federal operates its main office in Deer Lodge, Montana, which is located in Powell County, and a branch office in Dillon, Montana, which is located in Beaverhead County. The city of Deer Lodge had an estimated 2025 population of 3,097 and is the county seat of Powell County. Pioneer Federal relocated its main office in Deer Lodge from Milwaukee Avenue to a new office building on North Main Street in January 2024. The city of Dillon had an estimated 2025 population of 4,196 and is the county seat of Beaverhead County. Dillon is located approximately 90 miles south of Deer Lodge. Powell County had an estimated 2025 population of 7,229. Beaverhead County had an estimated 2025 population of 10,136. Pioneer Federal's office network is presented in the maps on the following page.

The economy in Powell County is geared to agriculture, other natural resources, government, and health care. Many of the large and small ranches in Powell County are owned by fourth and fifth generation residents. Sun Mountain Lumber Company is the area's largest private employer and provides work for both loggers and mill employees. The Montana State Prison and Montana State Hospital are major employers in the local area. The Grant-Kohrs Ranch National Historic Site is also located in Deer Lodge and offers historic ranch house tours, living history demonstrations, and nearly ten miles of ranch roads and trails to hike on a 1,600 acre working cattle ranch. Beaverhead County is the largest county by area in Montana and one of the largest cattle and hay producing regions in the state. The major employers in Beaverhead County include Barrett Hospital and HealthCare, Beaverhead County, and High Divide Minerals (talc mining and processing company). The University of Montana Western is a public college located in Dillon and has a total undergraduate enrollment of approximately 1,200 students.

Feldman Financial Advisors, Inc.

![](tm2525788d3_ex99-3sp3img01.jpg)

● Pioneer Federal Savings and Loan Association - full-service offices

Feldman Financial Advisors, Inc.

Table 10 provides selected demographic data for the United States, the state of Montana, Powell County, and Beaverhead County. The two-county market area is sparsely populated and predominantly rural with the economic centers located in small towns in both counties. Powell County's population is projected to increase by 3.6% over the next five years to 7,486 in 2030, while Beaverhead County's population is projected to increase by 6.3% to 10,777 in 2030. The median ages in Powell County and Beaverhead County were 45.0 years and 43.1 years, respectively, above the state and national median ages of 41.0 years and 39.7, years, respectively. The estimated 2025 median household income of Powell County was $64,818, below the state and national levels of $72,066 and $78,770, respectively. The estimated 2025 median household income for Beaverhead County was $63,124.

The median housing values in Powell County and Beaverhead County ware $333,763 and $385,610, respectively, below the state median of $440,442. The median monthly gross rents ranged from $673 in Powell County to $855 in Beaverhead County, compared to the state and national medians of $1,013 and $1,298. Over the next five years, housing units are projected to increase by 3.4% in Powell County and 2.8% in Beaverhead County, compared to 4.2% for the overall state of Montana.

The major industries for employment in Powell County included government, agriculture, health care, construction, and manufacturing. The leading industries for employment in Beaverhead County included agriculture, education, hospitality, health care, and retail trade. The unemployment rates in Powell County and Beaverhead County have hovered below the national unemployment averages. In June 2025, the unemployment rates in Powell County and Beaverhead County were 3.2% and 2.3%, compared to the national unemployment rate of 4.4%. The unemployment rate for the state of Montana was 2.8% in June 2025.

Feldman Financial Advisors, Inc.

**Table 10<br> Selected Demographic Data**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | United<br>States | State of<br>Montana | Powell<br>County | Beaverhead<br>County |
| Total Population |  |  |  |  |
| &nbsp;&nbsp;&nbsp;2025 - Estimated | 337643652 | 1154086 | 7229 | 10136 |
| &nbsp;&nbsp;&nbsp;2030 - Projected | 345735705 | 1209611 | 7486 | 10777 |
| &nbsp;&nbsp;&nbsp;% Change 2020-25 | 1.87% | 6.44% | 4.07% | 8.16% |
| &nbsp;&nbsp;&nbsp;% Change 2025-30 | 2.40% | 4.81% | 3.56% | 6.32% |
| Age Distribution, 2025 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;0 - 14 Age Group | 17.34% | 16.51% | 11.95% | 13.21% |
| &nbsp;&nbsp;&nbsp;15 - 34 Age Group | 26.52% | 25.78% | 24.32% | 27.53% |
| &nbsp;&nbsp;&nbsp;35 - 54 Age Group | 25.24% | 24.16% | 26.92% | 21.30% |
| &nbsp;&nbsp;&nbsp;55 - 69 Age Group | 18.13% | 18.92% | 21.44% | 20.64% |
| &nbsp;&nbsp;&nbsp;70+ Age Group | 12.76% | 14.63% | 15.37% | 17.32% |
| Median Age (years) | 39.7 | 41.0 | 45.0 | 43.1 |
| Median Household Income |  |  |  |  |
| &nbsp;&nbsp;&nbsp;2025 - Estimated | $78770 | $72066 | $64818 | $63124 |
| &nbsp;&nbsp;&nbsp;2030 - Projected | $85719 | $79306 | $70411 | $68830 |
| &nbsp;&nbsp;&nbsp;% Change 2025-30 | 8.82% | 10.05% | 8.63% | 9.04% |
| Average Household Income |  |  |  |  |
| &nbsp;&nbsp;&nbsp;2025 - Estimated | $113181 | $97966 | $85208 | $91130 |
| &nbsp;&nbsp;&nbsp;2030 - Projected | $122965 | $108658 | $92931 | $100093 |
| &nbsp;&nbsp;&nbsp;% Change 2025-30 | 8.64% | 10.91% | 9.06% | 9.84% |
| High School Graduate or Higher, |  |  |  |  |
| % Age 25 Years-plus, 2025 | 89.42% | 94.14% | 92.31% | 93.89% |
| Bachelor's Degree or Higher, |  |  |  |  |
| % Age 25 Years-plus, 2025 | 35.11% | 34.47% | 19.52% | 36.14% |
| In Civilian Labor Force, Total |  |  |  |  |
| % Age 16 Years-plus, 2025 | 58.89% | 59.17% | 39.20% | 56.26% |
| Unemployment Rate |  |  |  |  |
| &nbsp;&nbsp;&nbsp;June 2023 | 3.8% | 2.6% | 2.8% | 2.4% |
| &nbsp;&nbsp;&nbsp;June 2024 | 4.3% | 3.1% | 3.3% | 2.8% |
| &nbsp;&nbsp;&nbsp;June 2025 | 4.4% | 2.8% | 3.2% | 2.3% |

---

Feldman Financial Advisors, Inc.

**Table 10 (continued)<br> Selected Demographic Data**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | United<br>States | State of<br>Montana | Powell<br>County | Beaverhead<br>County |
| Total Households |  |  |  |  |
| &nbsp;&nbsp;&nbsp;2025 - Estimated | 129687464 | 477200 | 2487 | 4454 |
| &nbsp;&nbsp;&nbsp;% Change 2020-25 | 2.26% | 6.56% | 4.76% | 8.42% |
| &nbsp;&nbsp;&nbsp;% Change 2025-30 | 2.70% | 4.95% | 4.06% | 3.25% |
| Total Housing Units |  |  |  |  |
| &nbsp;&nbsp;&nbsp;2025 - Estimated | 144349531 | 545436 | 3014 | 5267 |
| &nbsp;&nbsp;&nbsp;% Change 2020-25 | 2.74% | 5.95% | 3.93% | 7.10% |
| &nbsp;&nbsp;&nbsp;% Change 2025-30 | 2.73% | 4.24% | 3.42% | 2.77% |
| Housing Unit Type, 2025 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Owner-Occupied | 56.93% | 59.06% | 57.50% | 55.02% |
| &nbsp;&nbsp;&nbsp;Renter-Occupied | 32.92% | 28.43% | 25.02% | 29.54% |
| &nbsp;&nbsp;&nbsp;Vacant | 10.16% | 12.51% | 17.49% | 15.44% |
| Owner-Occupied Housing Units Median Value, 2025 | $364711 | $440442 | $333763 | $385610 |
| Median Gross Monthly Rent, 2025 | $1298 | $1013 | $673 | $855 |
| Owner-Occupied Housing Unit Rate, 2025 (1) | 63.36% | 67.50% | 69.68% | 65.07% |

---

(1) As a percentage of total number of households.

Source: S&P Global.

**<u>Overview of Office Network</u>**

Table 11 provides deposit data for the Association's full-service banking offices as of June 30, 2020 to June 30, 2024. The Association's deposits increased by 1.6% over the observed one-year period from June 30, 2023 to 2024 and increased by a CAGR of 2.6% over the four-year period from June 30, 2020 to 2024. The Association's largest office based on deposits is the office in Deer Lodge, which had total deposits of $45.7 million or 52.9% of the Association's total deposits at June 30, 2024. The Association's office in Dillon had total deposits of $40.7 million or 47.1% of the Association's total deposits at June 30, 2024. Deposit growth at Pioneer Federal's Deer Lodge office reflected a four-year CAGR of 4.1%, while the Dillon office generated a four-year CAGR of 1.0%. Similar to most financial institutions, deposit growth accelerated in the 2021-2022 period due to pandemic-related governmental relief programs, such as stimulus payments.

Feldman Financial Advisors, Inc.

**Table 11**

**Branch Office Deposit Data**

Data as of June 30, 2020 to 2024

(Dollars in Thousands)

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  |  | | | | | | Four-Year |
|  |  |  | June 30, | June 30, | June 30, | June 30, | June 30, | CAGR |
| Address | City | County | 2024 | 2023 | 2022 | 2021 | 2020 | (%) |
| 202 N. Main Street (1) | Deer Lodge | Powell | $45689 | $44540 | $49104 | $46154 | $38975 | 4.1% |
| 32 N. Washington Street | Dillon | Beaverhead | 40672 | 40491 | 47504 | 42845 | 39054 | 1.0% |
| &nbsp;&nbsp;&nbsp;Total Deposits |  |  | $86361 | $85031 | $96608 | $88999 | $78029 | 2.6% |

---

(1) Office was opened in January 2024 following the relocation of the former Milwaukee Avenue office in Deer Lodge.

Source: S&P Global.

**<u>Deposit Market Share Analysis</u>**

Table 12 displays branch deposit data for the financial institutions (commercial banks and thrift institutions) in Powell County and Beaverhead County as of June 30, 2024 (date of the most recently available industry data). Pioneer Federal ranked second in Powell County out of three financial institutions with deposits of $45.7 million in one office as of June 30, 2024 for a market share of 28.6%. The deposit market share leader in Powell County was First Security Bank of Deer Lodge with deposits of $74.2 million and a market share of 46.4%. Peoples Bank of Deer Lodge ranked third in Powell County with deposits of $40.1 million and a market share of 25.0%. The deposit market total in Powell County increased by 2.9% from $155.5 million at June 30, 2023 to $159.9 million at June 30, 2024.

Feldman Financial Advisors, Inc.

**Table 12**

**Deposit Market Share in Powell County and Beaverhead County**

Deposit Data as of June 30, 2023 and 2024

(Dollars in Thousands)

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  |  |  | | June 30, 2024 | June 30, 2024 | June 30, 2023 | June 30, 2023 | 2023-24 |
|  |  |  |  | 2024 | Branch | Market | Branch | Market | Deposit |
| Market | Financial |  |  | No. of | Deposits | Share | Deposits | Share | Change |
| Rank | Institution | St. | Type | Offices | ($000s) | (%) | ($000s) | (%) | (%) |
|  | **<u>Powell County, Montana</u>** |  |  |  |  |  |  |  |  |
| 1 | First Security Bank of Deer Lodge | MT | Bank | 1 | $74198 | 46.39 | $74058 | 47.64 | 0.19 |
| 2 | Pioneer Federal Savings and Loan Assn. | MT | Thrift | 1 | 45689 | 28.57 | 44540 | 28.65 | 2.58 |
| 3 | Peoples Bank of Deer Lodge | MT | Bank | 1 | 40056 | 25.04 | 36865 | 23.71 | 8.66 |
|  |  |  |  | 3 | $159943 | 100.00 | $155463 | 100.00 | 2.88 |
|  | **<u>Beaverhead County, Montana</u>** |  |  |  |  |  |  |  |  |
| 1 | Stockman Bank of Montana | MT | Bank | 1 | $181294 | 53.74 | $174672 | 53.57 | 3.79 |
| 2 | The Bank of Commerce | ID | Bank | 1 | 115380 | 34.20 | 110876 | 34.01 | 4.06 |
| 3 | Pioneer Federal Savings and Loan Assn. | MT | Thrift | 1 | 40672 | 12.06 | 40491 | 12.42 | 0.45 |
|  |  |  |  | 3 | $337346 | 100.00 | $326039 | 100.00 | 3.47 |
|  | **<u>Powell and Beaverhead Counties Combined</u>** |  |  |  |  |  |  |  |  |
| 1 | Stockman Bank of Montana | MT | Bank | 1 | $181294 | 36.46 | $174672 | 36.28 | 3.79 |
| 2 | The Bank of Commerce | ID | Bank | 1 | 115380 | 23.20 | 110876 | 23.03 | 4.06 |
| 3 | Pioneer Federal Savings and Loan Assn. | MT | Thrift | 2 | 86361 | 17.37 | 85031 | 17.66 | 1.56 |
| 4 | First Security Bank of Deer Lodge | MT | Bank | 1 | 74198 | 14.92 | 74058 | 15.38 | 0.19 |
| 5 | Peoples Bank of Deer Lodge | MT | Bank | 1 | 40056 | 8.05 | 36865 | 7.66 | 8.66 |
|  |  |  |  | 6 | $497289 | 100.00 | $481502 | 100.00 | 3.28 |

---

Source: S&P Global.

Pioneer Federal ranked third in Beaverhead County out of three financial institutions with deposits of $40.7 million in one office as of June 30, 2024 for a market share of 12.1%. The deposit market share leader in Beaverhead County was Stockman Bank of Montana ("Stockman Bank") with deposits of $181.3 million and a market share of 53.7%. In the combined market of Powell and Beaverhead Counties, Pioneer Federal ranked third with deposits of $74.2 million and a market share of 17.4%. Stockman Bank was the deposit market leader in the combined market with deposits of $181.3 million and a market share of 36.5%. Among the local competitors, Stockman Bank (total assets of $6.9 billion) and The Bank of Commerce (total assets of $2.2 billion) were the largest financial institutions operating in the market by asset size as of June 30, 2025.

Feldman Financial Advisors, Inc.

Pioneer Federal faces significant competition in originating loans and attracting deposits. This competition stems primarily from commercial banks, savings institutions, credit unions, and mortgage banking companies. Several of the financial service providers operating in the Association's market area are significantly larger and have greater financial resources. The Association faces additional competition for deposits from online banking institutions, short-term money market funds, other corporate and government securities funds, mutual funds, and from other non-depository financial institutions such as brokerage firms and insurance companies.

Competition for residential mortgage lending in the Association's market area is high. In addition to local and regional participants, many nationwide lenders are present in the Association's lending market. Stockman Bank (Miles City, Montana) was the leading residential mortgage lender in 2024 in Beaverhead County based on the publicly reported total dollar amount of funded loans, followed by The Bank of Commerce (Ammon, Idaho), U.S. Bank (Minneapolis, Minnesota), Veterans United Home Loans (Columbia, Missouri), and United Wholesale Mortgage (Pontiac, Michigan). Midwest Bank (Detroit Lakes, Michigan) was the leading residential mortgage lender in 2024 in Powell County, followed by Stockman Bank, Glacier Bank (Kalispell, Montana), and Bank of America (Charlotte, North Carolina).

Feldman Financial Advisors, Inc.

**Summary Outlook**

Pioneer Federal Association has consistently reported moderate levels of profitability in recent years. The Association's ROA measured 0.23% in 2023, 0.20% in 2024, and 0.22% annualized for the first half of 2025. In addition, the Association's profitability has been boosted by non-recurring revenue such as the property sale gain in 2024 and a recovery of credit loss provisions in the first half of 2025. The Association's earnings have been restrained by increased operating expenses, primarily resulting from increased occupancy costs related to its new office building in Deer Lodge. The Association's non-interest expense exceeded its net interest income in the year ended December 31, 2024 and the six months ended June 30, 2025. The Association's ratio of non-interest expense to average assets has escalated from 2.72% in 2021 and 2.62% in 2022 to 2.96% in 2023 and 3.00% in 2024.

The Association's net interest margin has held firm, supported by the large concentration of loans to assets on its balance sheet. Net total loans measured 77.0% and 75.2% as of December 31, 2024 and June 30, 2025, respectively. In recent years, the Association's provision for credit losses on loans has amounted to relatively small levels or a recovery as asset quality has remained satisfactory. The Association plans to continue its emphasis on residential mortgage lending while expanding its commercial lending. A key element of the Association's operating strategy is to continue to aggressively manage credit risk, so as to maintain the Association's favorable measures of credit quality. The Association's strong capital position helps to support its net interest margin and interest rate risk management, although the loan portfolio continues to reflect a large concentration of fixed-rate residential mortgage loans.

The infusion of additional capital from the Stock Offering will fortify the Association's already strong capital position and allow for the implementation of prudent growth strategies, which would serve to leverage operating expenses and provide additional flexibility to evaluate adding additional products and services that would enhance the Association's competitive position and contribute to improved profitability. As a public company following the completion of the Conversion and Stock Offering, the Association will experience an increase in operating expenses related to the compensation costs of stock-benefit plans and the additional costs related to resources, systems, and controls necessary to satisfy the ongoing public company financial reporting requirements. The Association may also incur additional expenses related to staff expansion to support expanded lending objectives. The incremental expenses may present an impediment to generating meaningful earnings growth over the near term until the additional capital is leveraged to support the realized loan expansion.

Feldman Financial Advisors, Inc.

**II. COMPARISONS WITH PUBLICLY TRADED THRIFTS**

**General Overview**

The comparative market approach provides a sound basis for determining estimates of going-concern valuations where a regular and active market exists for the stocks of peer institutions. The comparative market approach was utilized in determining the estimated pro forma market value of the Association because: (1) reliable market and financial data are readily available for comparable institutions; (2) the comparative market method is required by the applicable regulatory guidelines; and (3) other alternative valuation methods (such as income capitalization, liquidation analysis, or discounted cash flow) are unlikely to produce a valuation relevant to the future trading patterns of the related equity interest. The generally employed valuation method in initial public offerings, where possible, is the comparative market approach, which also can be relied upon to determine pro forma market value in a thrift stock conversion.

The comparative market approach derives valuation benchmarks from the trading patterns of selected peer institutions which, due to certain factors such as financial performance and operating strategies, enable the appraiser to estimate the potential value of the subject institution in a stock conversion offering. The pricing and trading history of recent initial public offerings of thrifts are also examined to provide evidence of the "new issue discount" that must be considered. In Chapter II, our valuation analysis focuses on the selection and comparison of the Association with a comparable group of publicly traded thrift institutions (the "Comparative Group"). Chapter III will detail any additional discounts or premiums that we believe are appropriate to the Association's pro forma market value.

Feldman Financial Advisors, Inc.

**Selection Criteria**

Selected market price and financial performance data for all public thrifts listed on major stock exchanges are shown in Exhibit III. The list excludes companies that are subject to being acquired under a pending transaction and companies that have a majority ownership interest controlled by a mutual holding company. Several criteria, discussed below, were used to select the individual members of the Comparative Group from the overall universe of publicly traded thrifts.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· <u>Operating characteristics</u> – An institution's operating characteristics are the most important factors because they affect investors'
expected rates of return on a company's stock under various business/economic scenarios, and they influence the market's
general perception of the quality and attractiveness of a given company. Operating characteristics, which may vary in importance during
the business cycle, include financial variables such as profitability, balance sheet growth, capitalization, asset quality, and other
factors such as lines of business and management strategies.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· <u>Degree of marketability and liquidity</u> – Marketability of a stock reflects the relative ease and promptness with which a security may
be sold when desired, at a representative current price, without material concession in price merely because of the necessity of sale.
Marketability also connotes the existence of buying interest as well as selling interest and is usually indicated by trading volumes
and the spread between the bid and asked price for a security. Liquidity of the stock issue refers to the organized market exchange process
whereby the security can be converted into cash. We attempted to limit our selection to companies that have access to a regular trading
market or price quotations, and therefore only considered companies listed on major stock exchanges. We eliminated from the Comparative
Group companies whose market prices were materially influenced by announced acquisitions or other unusual circumstances. However, the
expectation of continued industry consolidation is currently embedded in thrift equity valuations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· <u>Geographic Location</u> – The region of the country where a company operates is also of importance in selecting the comparative group. The
operating environment for thrift institutions varies from region to region with respect to business and economic environments, real estate
market conditions, speculative takeover activity, and investment climates. Economic and investor climates can also vary greatly within
a region, particularly due to takeover activity.

Feldman Financial Advisors, Inc.

The operations of the Association fit the general profile of a smaller thrift institution, concentrating primarily on residential real estate lending in its local market and relying on retail deposits as a funding source. Fixed-rate residential mortgage loans remain the core product in the Association's loan portfolio, drawing upon its roots as a traditional home lender. The Association has made moderate progress in diversifying its loan mix through the expanded origination of commercial real estate, commercial business, and consumer loans.

In determining the Comparative Group composition, we focused on the Association's asset size, capitalization, asset quality, earnings fundamentals, and geographic location. Attempting to concentrate on the Association's performance characteristics and to develop a meaningful number of comparables for valuation purposes, we expanded the criteria to include a statistically significant number of companies. In addition, because of the scarcity of candidates meeting the criteria precisely, we expanded the asset size and geographic criteria to generate a significant number of comparables. As with any composition of a group of comparable companies, the selection criteria were broadened sufficiently to assemble a significant number of members. We performed an initial screening for publicly traded thrifts headquartered in the West region of the United States with total assets less than $1 billion. We then expanded the selection criteria nationwide to other geographic regions and applied the following selection criteria:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· <u>Publicly traded thrift</u> – stock-form thrift whose shares are traded on the New York Stock Exchange ("NYSE"), NYSE American,
or NASDAQ Stock Market.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· <u>Excludes mutual holding companies</u> – company's corporate structure is not organized in the mutual holding company ("MHC")
form.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· <u>Seasoned trading issue</u> – company has been publicly traded in the fully-converted stock form for at least one year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· <u>Non-acquisition target</u> – company is not subject to a pending or rumored acquisition.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· <u>Asset size</u> – total assets less than $1 billion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· <u>Capital level</u> – tangible common equity to tangible assets greater than 7.0%.

Feldman Financial Advisors, Inc.

As a result of applying the stated criteria, the screening process produced a reliable representation of public thrifts. A general operating summary of the 10 companies included in the Comparative Group is presented in Table 13. All of the selected companies are traded on the NASDAQ Stock Market. The Comparative Group companies ranged in asset size from $273.8 million at Catalyst Bancorp to $987.5 million at Magyar Bancorp. The median asset size of the Comparative Group was $572.3 million and larger than the Association's total assets of $113.3 million as of June 30, 2025. Because of the initial and continuing listing standards of the major stock exchanges, including public float and round lot holders requirements, as well as the fact that many of the smaller converted thrifts ultimately de-list their shares from NASDAQ and/or are acquired by larger companies, there were not many smaller thrifts eligible for inclusion in the Comparative Group based on the stated criterion of being listed on a major exchange,

The Comparative Group includes four thrifts based in the Southwest region, Catalyst Bancorp (Louisiana), Fifth District Bancorp (Louisiana), Home Federal Bancorp (Louisiana), and Texas Community Bancshares (Texas). The Comparative Group includes two thrifts based in the Midwest region, Central Plains Bancshares (Nebraska) and NSTS Bancorp (Illinois). The remaining members are located in the Mid-Atlantic (two companies) Southeast (two companies), and New England (one company). Of the 10 public thrifts based in the West, eight were excluded because their asset size exceeded $1.0 billion and the other two were excluded since they are not traded on a major stock exchange and are instead listed on the over-the-counter ("OTC") markets. There are currently no public thrifts headquartered in Montana. While some differences inevitably may exist between the Association and the individual companies in the Comparative Group, we believe that the chosen Comparative Group, on the whole, provides a meaningful basis of financial comparison for valuation purposes.

Feldman Financial Advisors, Inc.

**Table 13**

**Comparative Group Operating Summary**

As of June 30, 2025

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  |  |  | | Initial<br> Public | Total | Tang. <br>Equity/ |
|  |  |  | No. of | Offering | Assets | Assets |
| Company | City | St. | Offices | Date | ($Mil.) | (%) |
| Pioneer Federal Savings and Loan Association | Deer Lodge | MT | 2 | NA | $113.3 | 16.27 |
| <u>Comparative Group</u> |  |  |  |  |  |  |
| Affinity Bancshares, Inc. | Covington | GA | 3 | 04/27/17 | 933.8 | 14.34 |
| BV Financial, Inc. | Baltimore | MD | 13 | 01/12/05 | 908.3 | 33.60 |
| Catalyst Bancorp, Inc. | Opelousas | LA | 6 | 10/12/21 | 273.8 | 33.60 |
| Central Plains Bancshares, Inc. | Grand Island | NE | 9 | 10/19/12 | 500.9 | 24.26 |
| Fifth District Bancorp, Inc. | New Orleans | LA | 7 | 07/31/24 | 539.8 | 9.71 |
| First Seacoast Bancorp, Inc. | Dover | DE | 5 | 07/16/19 | 604.8 | 9.71 |
| Home Federal Bancorp, Inc. | Shreveport | LA | 11 | 01/18/05 | 609.5 | 8.44 |
| Magyar Bancorp, Inc. | New Brunswick | NJ | 7 | 01/23/06 | 987.5 | 12.16 |
| NSTS Bancorp, Inc. | Waukegan | IL | 3 | 01/18/22 | 276.0 | 29.52 |
| Texas Community Bancshares, Inc. | Mineola | TX | 7 | 07/14/21 | 444.1 | 14.71 |

---

Source: Pioneer Federal Savings and Loan Association; S&P Global.

Feldman Financial Advisors, Inc.

**Recent Financial Comparisons**

Table 14 summarizes certain key financial comparisons between the Association and the Comparative Group. Tables 15 through 19 contain the detailed financial comparisons of the Association with the individual Comparative Group companies based on measures of profitability, income and expense components, capital levels, balance sheet composition, asset quality, and growth rates. Financial data for the Association, the Comparative Group, and All Public Thrift aggregate were utilized for the latest available period as of or for the last twelve months ("LTM") ended June 30, 2025.

The Association's LTM earnings amounted to $145,000 for an LTM ROA of 0.13%, reflecting profitability below the Comparative Group median of 0.70% and the All Public Thrift median of 0.55%. The Association's lower ROA was attributable mainly to a lower level of non-interest income and a higher level of operating expenses. The Association's LTM ROE was 0.79% and trailed the Comparative Group median of 5.23%. The Association's ROA was below the ROA results of all but one of the members of the Comparative Group. The Comparative Group's ROA results ranged from a low of -0.42% at First Seacoast Bancorp to 1.19% at BV Financial.

Based on core earnings (as adjusted to exclude securities gains or losses, intangibles amortization expense, and other non-recurring items), the Association's core profitability was also lower than the Comparative Group's levels. The Association's LTM core earnings ratio measured 0.19% of average assets and positioned below the corresponding Comparative Group median of 0.67% and the All Public Thrift median of 0.55%. The Association's core earnings exclude the impact of $90,000 in non-recurring operating expenses in the form of professional fees and reflect a resulting amount of core earnings equal to $216,000 for the LTM ended June 30, 2025.

Feldman Financial Advisors, Inc.

**Table 14**

**Key Financial Comparisons**

**Pioneer Federal Savings and Loan Association and the Comparative Group**

As of or For the Last Twelve Months Ended June 30, 2025

---

| | | | |
|:---|:---|:---|:---|
|  | Pioneer<br>Federal<br>S&LA | Comparative<br>Group<br>Median | All Public<br>Thrift<br>Median |
| **<u>Profitability Ratios</u>** |  |  |  |
| LTM Return on Average Assets (ROA) | 0.13% | 0.70% | 0.55% |
| LTM Return on Average Equity (ROE) | 0.79 | 5.23 | 4.90 |
| Core Return on Avg. Assets (Core ROA) | 0.19 | 0.67 | 0.56 |
| Core Return on Avg. Equity (Core ROE) | 1.17 | 5.35 | 4.64 |
| Net Interest Margin | 3.27 | 3.23 | 2.86 |
| Efficiency Ratio | 94.91 | 75.76 | 76.82 |
| **<u>Income and Expense</u>** (% of avg. assets) |  |  |  |
| Total Interest Income | 4.62 | 5.10 | 4.98 |
| Total Interest Expense | 1.63 | 1.82 | 2.16 |
| Net Interest Income | 2.99 | 3.05 | 2.71 |
| Provision (Recovery) for Credit Losses | (0.07) | 0.03 | 0.04 |
| Other Operating Income | 0.19 | 0.42 | 0.33 |
| Net Securities Gains and Non-rec. Income | 0.00 | 0.00 | 0.00 |
| General and Administrative Expense | 3.02 | 2.63 | 2.45 |
| Intangibles Amortization Expense | 0.00 | 0.00 | 0.01 |
| Non-recurring Expense | 0.08 | 0.01 | 0.00 |
| Pre-tax Core Earnings | 0.23 | 0.79 | 0.71 |
| **<u>Equity Capital Ratios</u>** |  |  |  |
| Total Equity / Total Assets | 16.27 | 15.09 | 11.84 |
| Tangible Equity / Tangible Assets | 16.27 | 14.40 | 11.34 |
| **<u>Growth Rates</u>** |  |  |  |
| Total Assets | (0.05) | 2.52 | 1.61 |
| Net Total Loans | 1.03 | 5.95 | 2.75 |
| Total Deposits | (0.32) | 4.20 | 4.53 |

---

Feldman Financial Advisors, Inc.

**Table 14 (continued)**

**Key Financial Comparisons**

**Pioneer Federal Savings and Loan Association and the Comparative Group**

As of or For the Last Twelve Months Ended June 30, 2025

---

| | | | |
|:---|:---|:---|:---|
|  | Pioneer<br>Federal<br>S&LA | Comparative<br>Group<br>Median | All Public<br>Thrift<br>Median |
| **<u>Balance Sheet Composition</u>** (% of total assets) |  |  |  |
| Cash and Securities | 18.70% | 21.27% | 17.50% |
| Loans Receivable, net | 75.17 | 73.99 | 77.69 |
| Real Estate Owned | 0.00 | 0.02 | 0.01 |
| Intangible Assets | 0.00 | 0.02 | 0.04 |
| Other Assets | 6.14 | 5.15 | 4.73 |
| Total Deposits | 75.79 | 77.23 | 75.49 |
| Borrowed Funds | 7.06 | 3.59 | 7.86 |
| Other Liabilities | 0.87 | 1.19 | 1.05 |
| Total Liabilities | 83.73 | 84.91 | 88.89 |
| Total Equity | 16.27 | 15.09 | 11.84 |
| **<u>Loan Portfolio Composition</u>** (% of total loans) |  |  |  |
| Residential Real Estate Loans (1) | 88.57 | 44.30 | 29.06 |
| Other Real Estate Loans | 8.53 | 35.61 | 54.54 |
| Non-Real Estate Loans | 2.90 | 14.66 | 16.40 |
| **<u>Credit Risk Ratios</u>** |  |  |  |
| Non-performing Loans (2) / Total Loans | 0.66 | 0.45 | 0.50 |
| Non-performing Assets (2) /Total Assets | 0.50 | 0.40 | 0.40 |
| Allowance for Reserves / Non-perf. Loans(2) | 192.46 | 179.82 | 170.23 |
| Allowance for Reserves / Total Loans | 1.27 | 1.02 | 0.96 |

---

(1) Includes home equity and second mortgage loans.

(2) Includes accruing troubled debt restructurings and excludes accruing loans past due 30-89 days.

Source: Pioneer Federal Savings and Loan Association; S&P Global.

As shown in Table 17, the Association's level of net interest income at 2.99% of average assets was only slightly below the Comparative Group median of 3.05%, owing to the Association's relatively high concentration of assets invested in loans, which generally carry higher yields than investment securities. The Association's total interest income measured 4.62% of average assets for the LTM period, trailing the Comparative Group median of 5.10%. The Association's interest expense amounted to 1.63% of average assets and was slightly above the Comparative Group median of 1.82%. As reflected by its higher net interest margin of 3.27% versus the corresponding Comparative Group median of 3.23%, the earning power of the Association's balance sheet is bolstered by the relatively large concentration of loans to assets and its strong capital position.

Feldman Financial Advisors, Inc.

The Association's non-interest operating income totaled 0.19% of average assets, lagging behind the Comparative Group median of 0.42%. The Association's primary sources of non-interest income include service fees and interchange fees. Most of the Comparative Group companies reported higher levels of non-interest income, particularly expanded revenue from mortgage banking operations producing significant loan origination and servicing fees and gains on sale of loans.

The Association's provision for credit losses on loans amounted to -0.07% of average assets (reflecting a recovery) for the recent LTM period and was positioned below the Comparative Group median of 0.03%. The Association's non-performing assets (excluding accruing loans past due 30-89 days) measured 0.50% at June 30, 2025, which was slightly higher than the Comparative Group and All Public Thrift medians both at 0.40%. The Association's non-performing loans were 0.66% of total loans at June 30, 2025, which was higher than the Comparative Group and All Public Thrift medians of 0.45% and 0.50%, respectively. The Association's 1.27% ratio of allowance for credit losses on loans to total loans was higher than the corresponding Comparative Group median of 1.02% and All Public Thrift median of 0.96%. Furthermore, the Association's 192.5% ratio of allowance for credit losses on loans to non-performing loans was positioned above the Comparative Group median of 179.8% and All Public Thrift median of 170.2%.

Feldman Financial Advisors, Inc.

The Association's operating expense ratio at 3.02% of average assets was higher than the Comparative Group median of 2.63% and All Public Thrift median of 2.56%. Pioneer Federal's operating expenses have increased recently following its relocation of the Deer Lodge office into a new building. The Association's 94.9% efficiency ratio (defined as non-interest expense less intangibles amortization expense and non-recurring expenses as a percent of the sum of net interest income before provision plus non-interest operating income) compared unfavorably to the Comparative Group median of 75.8%. Only two members of the Comparative Group exhibited efficiency ratios above the Association's efficiency ratio, which is reflective of the Association's comparatively higher operating expense ratio and its lower non-interest income ratio. Further improving the efficiency ratio is a strategic goal for the Association as it seeks to leverage the operating infrastructure and staffing resources in place to grow the balance sheet and generate increased levels of market share penetration and lending activity.

As reflected in Table 18, the overall balance sheet composition of the Association reflected a higher concentration of loans to assets versus that of the overall Comparative Group. The Association's net total loans amounted to 75.2% of total assets as of June 30, 2025, above the median of 74.0% for the Comparative Group. The Association's ratio of cash and securities to total assets was 18.7% and moderately below the median of 21.3% for the Comparative Group. The Association had no intangible assets or real estate owned on its balance sheet as of June 30, 2025. The Association's ratio of other assets to total assets measured 6.1% and was slightly higher than the Comparative Group median of 5.2%. The Association's other assets have increased recently as a result of the construction of a new office building in Deer Lodge. The Association's other assets primarily comprised premises and equipment (4.4% of total assets) and the cash value of life insurance (0.7% of total assets) as of June 30, 2025.

Feldman Financial Advisors, Inc.

The Association's ratio of borrowed funds to total assets amounted to 7.1% at June 30, 2025 and was higher than the Comparative Group median of 3.6%. The Association historically had not actively utilized borrowings as a supplemental source of funds. However, the Association obtained an $8.0 million FHLB advance in September 2023 and used the debt proceeds to help the fund construction of the new office building and support ongoing lending activity.

Pioneer Federal's level of deposits at 75.8% of total assets was below the Comparative Group median of 77.2% of total assets due to the Association's strong capital level along with the increased utilization of borrowed funds. The Association's equity level before the Stock Offering was 16.27% relative to total assets as of June 30, 2025, which was above the Comparative Group median equity level of 15.09% of total assets. The Comparative Group includes several companies that completed full conversion or second-step conversion offerings over the past two years and have emerged with very high capital levels that have not been notably leveraged due to the relatively short passage of time.

The Association's level of residential real estate loans (including home equity and second mortgage loans) measured 88.6% of total loans based on regulatory financial data as of June 30, 2025, outdistancing the Comparative Group median of 44.3% and reflective of the Association's traditional thrift orientation. Three other members of the Comparative Group exhibited a majority of loans in the residential category: Fifth District Bancorp at 90.5%, NSTS Bancorp at 86.4%, and First Seacoast Bancorp at 62.8% of total loans. Other companies within the Comparative Group exhibited more diverse loan portfolio compositions with higher percentages of non-residential real estate loans and non-real estate loans in portfolio than the levels exhibited by Pioneer Federal.

Feldman Financial Advisors, Inc.

The Association's concentration of non-residential real estate loans (which category includes commercial real estate and construction and land development loans) represented 8.5% of total loans and was lower than the Comparative Group median of 65.63%. The Association also exhibited a lower level of non-real estate loans (primarily commercial business loans and other consumer loans), which accounted for 2.9% of total loans versus the Comparative Group median of 14.7%.

The Association's asset growth rate measured -0.1% over the recent LTM period versus the Comparative Group median asset growth rate of 2.5%. The Association exhibited a deposit growth rate of -0.3% versus the Comparative Group median of 4.2%. The Association's loan growth rate of 1.0% also trailed the Comparative Group median of 6.0%. The lack of meaningful balance sheet growth at Pioneer Federal poses a major challenge to the Association's capacity to improve earnings by generating incremental net interest income.

In summary, the Association's recent earnings performance measured below the results exhibited by the Comparative Group, while its capital ratio was higher (even before the effect of the Stock Offering) and its asset quality ratios were relatively comparable to the levels represented by the Comparative Group medians. The Association's profitability was characterized by a lower level of non-interest income and a higher non-interest expense ratio. Similar to most financial institutions of its size, the Association is faced with the ongoing challenge of improving its efficiency ratio either through bolstering its net interest margin, enhancing non-interest income generation, or improving the efficiency and productivity of its operating infrastructure. The Association's earnings growth outlook will depend largely on its ability to maintain satisfactory credit quality as it grows the loan portfolio, to improve the net interest margin across movements in the interest rate environment, and to control non-interest expense as it seeks to expand its operations and transition to a public company.

Feldman Financial Advisors, Inc.

**Table 15**

**General Operating Characteristics**

As of June 30, 2025

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| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | <br>City/State | <br>Ticker | <br>Exchange | <br>No. of<br>Offices | <br>IPO<br>Date | <br>Total<br>Assets<br>($000s) | <br>Total<br>Deposits<br>($000s) | <br>Total<br>Equity<br>($000s) | Tang.<br>Common<br>Equity<br>($000s) |
| **Pioneer Federal S&LA** | **Deer Lodge, MT** | **NA** | **NA** | **2** | **NA** | **113259** | **85842** | **18428** | **18428** |
| **Comparative Group Average** |  |  |  |  |  | **607847** | **475998** | **98147** | **94368** |
| **Comparative Group Median** |  |  |  |  |  | **572324** | **436450** | **82723** | **82723** |
| <u>Comparative Group</u> |  |  |  |  |  |  |  |  |  |
| Affinity Bancshares, Inc. | Covington, GA | AFBI | NASDAQ | 3 | 04/27/17 | 933799 | 749338 | 124100 | 106020 |
| BV Financial, Inc. | Baltimore, MD | BVFL | NASDAQ | 13 | 01/12/05 | 908327 | 658891 | 197991 | 182830 |
| Catalyst Bancorp, Inc. | Opelousas, LA | CLST | NASDAQ | 6 | 10/12/21 | 273785 | 182211 | 80799 | 80799 |
| Central Plains Bancshares, Inc. | Grand Island, NE | CPBI | NASDAQ | 9 | 10/19/23 | 500877 | 400636 | 84646 | 84646 |
| Fifth District Bancorp, Inc. | New Orleans, LA | FDSB | NASDAQ | 7 | 07/31/24 | 539807 | 398243 | 130898 | 130898 |
| First Seacoast Bancorp, Inc. | Dover, NH | FSEA | NASDAQ | 5 | 07/16/19 | 604840 | 472264 | 60801 | 60602 |
| Home Federal Bancorp, Inc. | Shreveport, LA | HFBL | NASDAQ | 11 | 01/18/05 | 609492 | 546290 | 55205 | 51300 |
| Magyar Bancorp, Inc. | New Brunswick, NJ | MGYR | NASDAQ | 7 | 01/23/06 | 987488 | 819962 | 116323 | 115948 |
| NSTS Bancorp, Inc. | Waukegan, IL | NSTS | NASDAQ | 3 | 01/18/22 | 275976 | 192960 | 77833 | 77833 |
| Texas Community Bancshares, Inc. | Mineola, TX | TCBS | NASDAQ | 7 | 07/14/21 | 444082 | 339180 | 52869 | 52803 |

---

Source: Pioneer Federal Savings and Loan Association; S&P Global.

Feldman Financial Advisors, Inc.

**Table 16**

**General Financial Performance Ratios**

As of or For the Last Twelve Months Ended June 30, 2025

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | <br>Total<br>Assets<br>($000s) | <br>Total<br>Deposits<br>($000s) | Total<br>Equity/<br>Assets<br>(%) | Tang.<br>Equity/<br>Assets<br>(%) | Net<br>Interest<br>Margin<br>(%) | <br>Effcy.<br>Ratio<br>(%) | <br>LTM<br>ROA<br>(%) | <br>LTM<br>ROE<br>(%) | <br>Core<br>ROA<br>(%) | <br>Core<br>ROE<br>(%) |
| **Pioneer Federal S&LA** | **113259** | **85842** | **16.27** | **16.27** | **3.27** | **94.91** | **0.13** | **0.79** | **0.19** | **1.17** |
| **Comparative Group Average** | **607847** | **475998** | **17.67** | **17.30** | **3.22** | **79.63** | **0.55** | **3.73** | **0.57** | **3.91** |
| **Comparative Group Median** | **572324** | **436450** | **15.09** | **14.40** | **3.23** | **75.76** | **0.70** | **5.23** | **0.67** | **5.35** |
| **All Public Thrift Average** | **6306370** | **4779188** | **14.15** | **13.50** | **3.09** | **78.71** | **0.48** | **3.06** | **0.51** | **3.13** |
| **All Public Thrift Median** | **1515829** | **1138666** | **11.84** | **11.34** | **2.86** | **76.82** | **0.55** | **4.90** | **0.56** | **4.64** |
| <u>Comparative Group</u> |  |  |  |  |  |  |  |  |  |  |
| Affinity Bancshares, Inc. | 933799 | 749338 | 13.29 | 11.58 | 3.54 | 67.90 | 0.79 | 5.54 | 0.87 | 6.09 |
| BV Financial, Inc. | 908327 | 658891 | 21.80 | 20.47 | 4.33 | 60.55 | 1.19 | 5.32 | 1.20 | 5.39 |
| Catalyst Bancorp, Inc. | 273785 | 182211 | 29.51 | 29.51 | 3.87 | 75.79 | 0.80 | 2.70 | 0.67 | 2.25 |
| Central Plains Bancshares, Inc. | 500877 | 400636 | 16.90 | 16.90 | 3.61 | 75.38 | 0.77 | 5.52 | 0.77 | 5.52 |
| Fifth District Bancorp, Inc. | 539807 | 398243 | 24.25 | 24.25 | 2.36 | 79.09 | 0.49 | 2.09 | 0.68 | 2.90 |
| First Seacoast Bancorp, Inc. | 604840 | 472264 | 10.05 | 10.02 | 2.17 | 117.24 | (0.42) | (3.99) | (0.42) | (3.96) |
| Home Federal Bancorp, Inc. | 609492 | 546290 | 9.06 | 8.47 | 3.23 | 75.73 | 0.63 | 7.30 | 0.67 | 7.73 |
| Magyar Bancorp, Inc. | 987488 | 819962 | 11.78 | 11.75 | 3.22 | 57.93 | 0.99 | 8.77 | 1.00 | 8.86 |
| NSTS Bancorp, Inc. | 275976 | 192960 | 28.20 | 28.20 | 2.82 | 108.87 | (0.29) | (1.04) | (0.29) | (1.04) |
| Texas Community Bancshares, Inc. | 444082 | 339180 | 11.91 | 11.89 | 3.05 | 77.85 | 0.53 | 5.13 | 0.55 | 5.31 |

---

Source: Pioneer Federal Savings and Loan Association; S&P Global.

Feldman Financial Advisors, Inc.

**Table 17**

**Income and Expense Analysis**

For the Last Twelve Months Ended June 30, 2025

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | As a Percent of Average Assets | As a Percent of Average Assets | As a Percent of Average Assets | As a Percent of Average Assets | As a Percent of Average Assets | As a Percent of Average Assets | As a Percent of Average Assets | As a Percent of Average Assets | As a Percent of Average Assets | As a Percent of Average Assets |
|  | <br>Interest<br>Income | <br>Interest<br>Expense | Net<br>Interest<br>Income | Other<br>Oper.<br>Income | Gains &<br>Non-rec.<br>Income | Loan<br>Loss<br>Prov. | Gen. &<br>Admin.<br>Expense | Intang.<br>Amort.<br>Expense | <br>Non-rec.<br>Expense | Pre-tax<br>Core<br>Earnings |
| **Pioneer Federal S&LA** | **4.62** | **1.63** | **2.99** | **0.19** | **0.00** | **(0.07)** | **3.02** | **0.00** | **0.08** | **0.23** |
| **Comparative Group Average** | **4.89** | **1.85** | **3.04** | **0.46** | **0.02** | **0.04** | **2.74** | **0.01** | **0.04** | **0.73** |
| **Comparative Group Median** | **5.10** | **1.82** | **3.05** | **0.42** | **0.00** | **0.03** | **2.63** | **0.00** | **0.01** | **0.79** |
| **All Public Thrift Average** | **5.07** | **2.15** | **2.92** | **0.53** | **0.03** | **0.09** | **2.67** | **0.03** | **0.02** | **0.71** |
| **All Public Thrift Median** | **4.98** | **2.16** | **2.71** | **0.33** | **0.00** | **0.04** | **2.45** | **0.01** | **0.00** | **0.71** |
| Comparative Group |  |  |  |  |  |  |  |  |  |  |
| Affinity Bancshares, Inc. | 5.53 | 2.18 | 3.35 | 0.24 | (0.04) | 0.04 | 2.44 | 0.02 | 0.04 | 1.11 |
| BV Financial, Inc. | 5.35 | 1.34 | 4.01 | 0.29 | 0.00 | 0.04 | 2.60 | 0.02 | 0.00 | 1.65 |
| Catalyst Bancorp, Inc. | 5.13 | 1.53 | 3.60 | 0.50 | 0.18 | 0.16 | 3.16 | 0.00 | 0.02 | 0.78 |
| Central Plains Bancshares, Inc. | 5.19 | 1.71 | 3.48 | 0.54 | 0.00 | 0.04 | 3.03 | 0.00 | 0.00 | 0.95 |
| Fifth District Bancorp, Inc. | 3.97 | 1.74 | 2.23 | 0.84 | 0.00 | 0.00 | 2.43 | 0.00 | 0.24 | 0.65 |
| First Seacoast Bancorp, Inc. | 4.44 | 2.31 | 2.13 | 0.26 | 0.00 | 0.02 | 2.80 | 0.01 | 0.00 | (0.43) |
| Home Federal Bancorp, Inc. | 4.92 | 1.90 | 3.02 | 0.37 | (0.00) | (0.02) | 2.61 | 0.05 | 0.00 | 0.80 |
| Magyar Bancorp, Inc. | 5.36 | 2.29 | 3.08 | 0.33 | 0.00 | 0.02 | 1.98 | 0.00 | 0.01 | 1.41 |
| NSTS Bancorp, Inc. | 3.93 | 1.31 | 2.62 | 0.80 | 0.00 | (0.02) | 3.72 | 0.00 | 0.00 | (0.28) |
| Texas Community Bancshares, Inc. | 5.08 | 2.16 | 2.92 | 0.48 | 0.06 | 0.09 | 2.65 | 0.03 | 0.05 | 0.65 |

---

Source: Pioneer Federal Savings and Loan Association; S&P Global.

Feldman Financial Advisors, Inc.

**Table 18**

**Balance Sheet Composition**

As of June 30, 2025

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | As a Percent of Total Assets | As a Percent of Total Assets | As a Percent of Total Assets | As a Percent of Total Assets | As a Percent of Total Assets | As a Percent of Total Assets | As a Percent of Total Assets | As a Percent of Total Assets | As a Percent of Total Assets | As a Percent of Total Assets |
|  | Cash and<br>Securities | Net<br>Loans | Real<br>Estate | Intang.<br>Assets | Other<br>Assets | Total<br>Deposits | Borrowed<br>Funds | Other<br>Liabs. | Total<br>Liabs. | Total<br>Equity |
| **Pioneer Federal S&LA** | **18.70** | **75.17** | **0.00** | **0.00** | **6.14** | **75.79** | **7.06** | **0.87** | **83.73** | **16.27** |
| **Comparative Group Average** | **22.27** | **71.97** | **0.05** | **0.43** | **5.27** | **77.01** | **4.15** | **1.16** | **82.33** | **17.67** |
| **Comparative Group Median** | **21.27** | **73.99** | **0.02** | **0.02** | **5.15** | **77.23** | **3.59** | **1.19** | **84.91** | **15.09** |
| **All Public Thrift Average** | **18.35** | **76.96** | **0.08** | **0.76** | **4.55** | **74.95** | **9.70** | **1.17** | **87.04** | **14.15** |
| **All Public Thrift Median** | **17.50** | **77.69** | **0.01** | **0.04** | **4.73** | **75.49** | **8.60** | **1.05** | **88.89** | **11.84** |
| <u>Comparative Group</u> |  |  |  |  |  |  |  |  |  |  |
| Affinity Bancshares, Inc. | 17.24 | 77.38 | 0.00 | 1.94 | 3.44 | 80.25 | 5.78 | 0.68 | 86.71 | 13.29 |
| BV Financial, Inc. | 10.85 | 81.73 | 0.02 | 1.67 | 5.73 | 72.54 | 3.94 | 1.72 | 78.20 | 21.80 |
| Catalyst Bancorp, Inc. | 31.09 | 60.32 | 0.03 | 0.00 | 8.56 | 66.55 | 3.52 | 0.41 | 70.49 | 29.51 |
| Central Plains Bancshares, Inc. | 13.94 | 81.41 | 0.01 | 0.00 | 4.63 | 79.99 | 1.69 | 1.42 | 83.10 | 16.90 |
| Fifth District Bancorp, Inc. | 23.90 | 70.32 | 0.01 | 0.00 | 5.77 | 73.78 | 0.00 | 1.98 | 75.75 | 24.25 |
| First Seacoast Bancorp, Inc. | 25.41 | 72.08 | 0.00 | 0.03 | 2.48 | 78.08 | 10.90 | 0.97 | 89.95 | 10.05 |
| Home Federal Bancorp, Inc. | 18.63 | 75.89 | 0.16 | 0.64 | 4.68 | 89.63 | 0.80 | 0.52 | 90.94 | 9.06 |
| Magyar Bancorp, Inc. | 10.23 | 84.65 | 0.22 | 0.04 | 4.86 | 83.04 | 3.65 | 1.53 | 88.22 | 11.78 |
| NSTS Bancorp, Inc. | 43.18 | 49.74 | 0.00 | 0.00 | 7.08 | 69.92 | 0.00 | 1.88 | 71.80 | 28.20 |
| Texas Community Bancshares, Inc. | 28.25 | 66.21 | 0.10 | 0.01 | 5.43 | 76.38 | 11.21 | 0.51 | 88.09 | 11.91 |

---

Source: Pioneer Federal Savings and Loan Association; S&P Global.

Feldman Financial Advisors, Inc.

**Table 19** 

**Growth Rates, Credit Risk, and Loan Composition** 

As of or For the Last Twelve Months Ended June 30, 2025

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | <br>Asset<br>Growth<br>Rate | <br>Loan<br>Growth<br>Rate | <br>Deposit<br>Growth<br>Rate | <br>NPLs(1)/<br>Total<br>Loans | <br>NPAs(1)/<br>Total<br>Assets | Allow.<br>for Credit<br>Losses/<br>NPLs(1) | Allow.<br>for Credit<br>Losses/<br>Loans | Resid.<br>Real Est.<br>Loans(2)/<br>Loans | Other<br>Real Est.<br>Loans/<br>Loans | Non-<br>Real Est.<br>Loans/<br>Loans |
| **Pioneer Federal S&LA** | **(0.05)** | **1.03** | **(0.32)** | **0.66** | **0.50** | **192.46** | **1.27** | **88.57** | **8.53** | **2.90** |
| **Comparative Group Average** | **1.56** | **5.16** | **2.86** | **0.70** | **0.54** | **274.21** | **1.03** | **46.75** | **33.42** | **19.83** |
| **Comparative Group Median** | **2.52** | **5.95** | **4.20** | **0.45** | **0.40** | **179.82** | **1.02** | **44.30** | **35.61** | **14.66** |
| **All Public Thrift Average** | **1.60** | **3.61** | **4.78** | **0.84** | **0.64** | **223.67** | **0.96** | **33.22** | **43.29** | **23.50** |
| **All Public Thrift Median** | **1.61** | **2.75** | **4.53** | **0.50** | **0.40** | **170.23** | **0.96** | **29.06** | **54.54** | **16.40** |
| <u>Comparative Group</u> |  |  |  |  |  |  |  |  |  |  |
| Affinity Bancshares, Inc. | 6.89 | 5.62 | 8.65 | 0.62 | 0.49 | 187.12 | 1.17 | 5.99 | 44.98 | 49.03 |
| BV Financial, Inc. | 1.24 | 7.00 | 2.90 | 0.58 | 0.50 | 208.59 | 1.22 | 31.00 | 56.09 | 12.91 |
| Catalyst Bancorp, Inc. | (7.30) | 9.33 | 1.19 | 0.87 | 0.56 | 167.08 | 1.45 | 46.33 | 23.52 | 30.15 |
| Central Plains Bancshares, Inc. | 7.35 | 6.28 | 6.35 | 0.10 | 0.09 | NM | 1.32 | 26.91 | 46.20 | 26.88 |
| Fifth District Bancorp, Inc. | 4.61 | 3.18 | (7.08) | 0.33 | 0.24 | 133.99 | 0.45 | 90.45 | 4.42 | 5.13 |
| First Seacoast Bancorp, Inc. | 0.52 | 0.90 | 4.55 | 0.00 | 0.00 | NM | 0.80 | 62.77 | 20.83 | 16.40 |
| Home Federal Bancorp, Inc. | (4.40) | (2.12) | (4.83) | 0.56 | 0.59 | 172.53 | 0.96 | 42.79 | 44.85 | 12.36 |
| Magyar Bancorp, Inc. | 4.57 | 11.21 | 3.90 | 0.11 | 0.31 | 875.98 | 0.95 | 29.06 | 62.08 | 8.86 |
| NSTS Bancorp, Inc. | 3.79 | 0.77 | 8.51 | 0.21 | 0.10 | 418.12 | 0.87 | 86.39 | 4.85 | 8.76 |
| Texas Community Bancshares, Inc. | (1.66) | 9.43 | 4.50 | 3.58 | 2.52 | 30.31 | 1.09 | 45.82 | 26.36 | 27.82 |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1) Includes
 accruing troubled debt restructurings and excludes accruing loans past due 30-89 days.

&nbsp;&nbsp;&nbsp;&nbsp;(2) Includes
 home equity and second mortgage loans.

Source: Pioneer Federal Savings and Loan Association; S&P Global.

Feldman Financial Advisors, Inc.

**III. MARKET VALUE ADJUSTMENTS**

**General Overview**

This concluding chapter of the Appraisal identifies certain additional adjustments to the Association's estimated pro forma market value relative to the Comparative Group selected in Chapter II. The adjustments discussed in this chapter are made from the viewpoints of potential investors, which would include depositors holding subscription rights and unrelated parties who may purchase stock in a community offering. It is assumed that these potential investors are aware of all relevant and necessary facts as they would pertain to the value of the Association relative to other publicly traded thrift institutions and relative to alternative investments.

Our appraised value is predicated on a continuation of the current operating environment for the Association and thrift institutions in general. Changes in the Association's operating performance along with changes in the local and national economy, the stock market, interest rates, the regulatory environment, and other external factors may occur from time to time, often with great unpredictability, which could materially impact the pro forma market value of the Association or thrift stocks in general. Therefore, the Valuation Range provided herein is subject to a more current re-evaluation prior to the actual completion of the Conversion and Stock Offering.

In addition to the comparative operating fundamentals discussed in Chapter II, it is important to address additional market value adjustments based on certain financial and other criteria, which include, among other factors:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Earnings Growth and Viability

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Financial Condition

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Market Area

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) Management

Feldman Financial Advisors, Inc.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) Dividend Payments

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6) Liquidity of the Stock Issue

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7) Subscription Interest

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(8) Recent Acquisition Activity

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(9) Stock Market Conditions and New Issue Discount

**<u>Earnings Growth and Viability</u>**

Earnings prospects are dependent upon the sensitivity of asset yields and liability costs to changes in market rates, the credit quality of assets, the stability of non-interest components of income and expense, and the ability to leverage the balance sheet. Each of the foregoing is an important factor for investors in assessing earnings growth and viability. The Association's profitability in recent years has been restrained due to rising operating expenses and a relatively low level of non-interest income. These fundamental disadvantages are offset partially by the Association's solid net interest margin and low level of credit-related provisions.

The Association's recent earnings ROA measured 0.13% for the LTM period versus the Comparative Group median of 0.70%. On a core earnings basis, which excludes non-recurring items, the Association's LTM core ROA of 0.19% also trailed the Comparative Group median core ROA of 0.67%. The Association's increased capital position after the Stock Offering will help to improve its net interest margin across changing interest rate and business cycles, provide added interest rate risk protection, and support additional leverage capacity to grow the balance sheet. In the near term, the Association's profitability will continue to be challenged by net interest margin pressure due to its high concentration of fixed-rate mortgage loans and the outstanding FHLB borrowing, increased costs due to potential staff additions and a planned data processing systems conversion, new stock benefit plans, and ongoing public company costs. Based on the Association's basic earnings fundamentals and continuing challenge to grow the loan portfolio and generate revenue from the increased expenditures, we believe that the uncertain viability of increasing profitability meaningfully warrants a downward adjustment to the Association's pro forma market value relative to the Comparative Group.

Feldman Financial Advisors, Inc.

**<u>Financial Condition</u>**

As discussed and summarized in Chapter I, the Association's balance sheet composition reflects a large concentration of fixed-rate residential mortgage loans. The significant level of fixed-rate loans heightens the Association's interest rate risk exposure. The Association relies mainly on its deposit base as a funding source and recently added FHLB borrowing to supplement deposits. Historically, the Association's deposit base has been composed mainly of core deposits, which amounted to 65.4% of total deposits at June 30, 2025. Relative to the Comparative Group, the Association exhibited a slightly higher level of equity capital, a higher ratio of loans to assets, and comparable measures of asset quality. Before the infusion of net capital proceeds, the Association's total equity ratio at 16.27% of assets was positioned moderately above the 15.09% Comparative Group median. The selection criteria ensured a set of Comparative Group companies with solid capital positions, emphasis on real estate lending, and satisfactory asset quality, similar to the Association's financial profile. Therefore, on the whole, we believe that no adjustment is warranted for the Association's financial condition relative to the Comparative Group.

**<u>Market Area</u>**

The members of the Comparative Group are located in various regions of the country. The Comparative Group companies are characterized by a cross-section of market areas that constitute smaller to larger metropolitan areas with relatively stable economies and moderate population growth prospects. Pioneer Federal's primary market area encompasses Powell and Beaverhead Counties, along with contiguous counties and areas in southwestern Montana. The Association's market area is sparsely populated, with the primary economic drivers encompassing agriculture, health care, tourism, and energy and resources, including forest and mineral products.

Feldman Financial Advisors, Inc.

As shown in Table 20, the median household income was $64,818 in Powell County and $63,124 in Beaverhead County. These areas are projecting population expansion over the next five years of 3.6% in Powell County and 6.3% in Beaverhead County. The unemployment rates for June 2025 were 3.2% and 2.3% in Powell County and Beaverhead County, respectively. Most of the Comparative Group companies exhibited moderately higher household income levels in their respective market areas , but lower rates of population growth and higher unemployment rates as indicated by the Comparative Group average and median data. In recognition of these offsetting demographic factors, we believe that no additional adjustment is warranted for market area.

**Table 20**

**Comparative Market Area Data**

**Pioneer Federal Savings and Loan Association and the Comparative Group**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  | Wtd. Avg. | Wtd. Avg. | |
|  |  | Median | Estimated | Unemployment |
|  |  | Household | Population | Rate (2) |
|  |  | Income | Growth | June |
|  | Headquarters | 2025 (1) | 2025-30 (1) | 2025 |
| Company | Location | ($) | (%) | (%) |
| Pioneer Federal Savings and Loan Assn. | Deer Lodge, MT (1) | 64020 | 4.86 | 2.8 |
|  | [Powell County, MT] | 64818 | 3.56 | 3.2 |
|  | [Beaverhead County, MT] | 63124 | 6.32 | 2.3 |
| Comparative Group Average |  | 74033 | 1.27 | 4.5 |
| Comparative Group Median |  | 77372 | 1.33 | 4.7 |
| <u>Comparative Group</u> |  |  |  |  |
| Affinity Bancshares, Inc. | Covington, GA | 87947 | 4.39 | 3.6 |
| BV Financial, Inc. | Baltimore, MD | 84878 | 1.62 | 3.6 |
| Catalyst Bancorp, Inc. | Opelousas, LA | 45999 | 0.16 | 6.0 |
| Central Plains Bancshares, Inc. | Grand Island, NE | 69866 | 1.14 | 4.4 |
| Fifth District Bancorp, Inc. | New Orleans, LA | 61991 | (6.32) | 5.1 |
| First Seacoast Bancorp, Inc. | Dover, NH | 88464 | 3.45 | 2.7 |
| Home Federal Bancorp, Inc. | Shreveport, LA | 54077 | (1.69) | 5.0 |
| Magyar Bancorp, Inc. | New Brunswick, NJ | 106408 | 1.51 | 5.4 |
| NSTS Bancorp, Inc. | Waukegan, IL | 86627 | (0.74) | 4.7 |
| Texas Community Bancshares, Inc. | Mineola, TX | 54077 | 9.13 | 4.6 |

---

(1) Weighted average based on pro rata branch deposit totals of
 each company in its primary MSA (or county) markets.

(2) Based on unemployment rate in company's primary MSA (or county) market as ranked
 by de *posits.* 

Source: Claritas; S&P Global; U.S. Bureau of Labor Statistics.

Feldman Financial Advisors, Inc.

**<u>Management</u>**

Management's principal challenges are to generate profitable results, monitor credit risks, and control operating costs while the Association competes in an increasingly challenging financial services environment. The normal challenges facing the Association in attempting to deliver earnings growth and enhance its competitiveness remain paramount as it attempts to leverage the net capital proceeds from the Stock Offering. Phillip Willett is the current President and CEO of Pioneer Federal, a role he has held since January 2018, and will serve in the same role with PSB Financial and Pioneer State Bank. He previously served as Executive Vice President of the Association from June 2016 to December 2017 and has over 20 years of experience in banking.

The Association's management team has ongoing challenges ahead in improving earnings results, growing the retail and commercial banking franchises, and controlling operating expenses as the organization transitions to a public company and seeks to leverage the incremental capital. Because of the Association's relatively small size and lean staffing profile, its executive officers fulfill a broad range of job functions and the Association's successful operation is significantly dependent on its senior management team. Investors will likely rely upon actual financial results as the means of evaluating the future performance of management as the Association pursues its asset growth and earnings improvement objectives. We have taken these factors into account collectively and believe that no adjustment is warranted relative to the Comparative Group for this factor.

Feldman Financial Advisors, Inc.

**<u>Dividend Payments</u>**

Following the completion of the Conversion and Stock Offering, the Company's Board of Directors will have the authority to declare cash dividends on the shares of common stock, subject to statutory and regulatory requirements. However, no decision has been made with respect to the amount, if any, and timing of any dividend payments. The payment and amount of any dividends will depend upon many factors, including the following: (1) the financial condition and operating results of the Company and the Association; (2) regulatory capital requirements and limitations on dividends; (3) other uses of funds for the long-term value of stockholders; (4) tax considerations; and (5) general economic conditions. There is no assurance that PSB Financial will actually pay cash dividends or that, if paid, such dividends will not be reduced or eliminated in the future.

Payment of cash dividends has become commonplace among publicly traded thrifts with solid capital levels. Three of the 10 members of the Comparative Group currently pay regular cash dividends, while approximately 58% of the companies in the All Public Thrift aggregate pay dividends. The median dividend yields of the Comparative Group and All Public Thrift aggregate were 0.00% and 0.93% as of September 2, 2025, respectively. Based on the anticipated strong capital levels of Pioneer State Bank and PSB Financial after the Stock Offering, investors are likely to expect that PSB Financial has the capacity to commence paying regular dividends at some opportune time after the Stock Offering is completed as a means of enhancing shareholder returns. Therefore, we have concluded that no adjustment is warranted for purposes of dividend policy.

**<u>Liquidity of the Stock Issue</u>**

With the increased number of market makers and institutional investors following thrift stocks, the majority of initial public offerings by thrift institutions are able to develop a public market for their new stock issues. Most publicly traded thrift stocks continue to be traded on the NASDAQ Stock Market. All 10 members of the Comparative Group are listed on the NASDAQ Stock Market. PSB Financial expects that its shares of common stock will be quoted on the OTCQB Market operated by the OTC Markets Group upon conclusion of the Conversion and Stock Offering.

Feldman Financial Advisors, Inc.

Stock liquidity connotes the relative ease and promptness with which a security may be sold when desired, at a representative current price, without material concession in price merely because of the necessity of sale. Empirical evidence demonstrates that investors are willing to pay a premium for this level of liquidity, or conversely, extract a discount relative to actively traded securities or other investment interests that lack this high degree of liquidity. The development and maintenance of a public market, having the desirable characteristics of depth, liquidity, and orderliness, depend on the existence of willing buyers and sellers.

The median market capitalization of the Comparative Group companies was $62.5 million as of September 2, 2025. The All Public Thrift median market capitalization was much higher at $156.3 million. Of the 10 companies in the Comparative Group, all are traded on NASDAQ Stock Market and indicated an overall average daily trading volume of approximately 10,800 shares over the LTM period. Due to the smaller size of the Stock Offering and its anticipated listing on the OTCQB Market, it is questionable that an active trading market for PSB Financial's common shares will develop to the extent experienced by the stock issues of the Comparative Group traded on the NASDAQ Stock Market. Therefore, we have concluded that a downward adjustment to the Association's estimated pro forma market value is warranted to address the comparative difference in liquidity of the issue.

**<u>Subscription Interest</u>**

The Association has retained the services of Keefe, Bruyette & Woods, Inc. to assist in the marketing and sale of the Stock Offering. The Association's ESOP intends to purchase shares in the Stock Offering equal to 8.0% of the total amount of common stock to be outstanding. The Association expects its directors and executive officers, together with their associates, to purchase 107,700 shares of common stock in the Stock Offering for an aggregate amount of $1.1 million based on a $10.00 offering price per share. The minimum number of shares of common stock that may be purchased in the Stock Offering is 25 shares ($250 equivalent). Excluding the ESOP purchase, the maximum number of shares of common stock that may be purchased in the Stock Offering by any individual or individuals acting through a single qualifying account held jointly is 25,000 shares ($250,000 equivalent). No person together with an associate or group of persons acting in concert may purchase more than 40,000 shares ($400,000 equivalent).

Feldman Financial Advisors, Inc.

Recent subscription interest in thrift stock conversion offerings has been varied. Three standard conversion offerings have been completed thus far in 2025. Only one of these three offerings was oversubscribed in the subscription phase. Magnolia Bancorp (Metairie, Louisiana) completed its offering in January 2025 with gross proceeds raised of $8.3 million, representing the maximum of its offering range. Security Midwest Bancorp (Springfield, Illinois) closed its offering in July 2025 at a level between the minimum and the midpoint of the offering and raised gross proceeds of $8.9 million. Avidia Bancorp (Hudson, Massachusetts) closed its offering in July 2025 at a level representing the adjusted maximum of the offering and raised gross proceeds of $191.8 million following an oversubscription in the first subscription tier by eligible depositors.

Investor interest in recent thrift stock issues has been supported by the overall favorable performance results of the banking industry, stable housing market conditions, appealing after-market pricing trends, and the expectation of continued merger and acquisition activity. We are not currently aware of any additional market evidence or characteristics that may help predict the level of interest in the Association's subscription offering. Accordingly, absent actual results of the subscription offering, we believe that subscription interest is currently a neutral factor and, at the present time, requires no further adjustment.

Feldman Financial Advisors, Inc.

**<u>Recent Acquisition Activity</u>**

Table 21 summarizes recent acquisition activity involving commercial banks and thrift institutions based in the state of Montana from January 1, 2017 to September 2, 2025. During this period, all of the sellers in the listed acquisition transactions were commercial banks. The largest transaction involved the acquisition in 2018 of Inter-Mountain Bancorporation by Glacier Bancorp. Eagle Bancorp Montana has been among the active acquirers in the state, purchasing four banks in Montana over the past eight years. The acquisition valuation ratios paid in these transactions generally have followed the nationwide acquisition valuation trends. Given that there will be significant charter restrictions on the ability to acquire control of PSB Financial for a period of five years following the Conversion, we do not believe that acquisition premiums are a significant factor to consider in analyzing the Association's pro forma market value. Moreover, the standard of value applied herein does not require an acquisition value determination.

**<u>Stock Market Conditions and New Issue Discount</u>**

Table 22 displays the one-year performance of the S&P 500, NASDAQ Bank, and S&P U.S. SmallCap Banks indexes. The NASDAQ Bank Index increased by 8.0% over the one-year period ended September 2, 2025, trailing the broader S&P 500 Index, which was up 16.0% during this period. Over the three-year period, the NASDAQ Bank Index is up 10.6% as compared to the S&P 500 Index advancing significantly by 63.5%, as shown in Table 23. The divergence in bank and thrift stock prices from the overall market commenced in March 2023 following the sudden failure and liquidation of three large, high-profile commercial banks. These events led to a greater focus by financial institutions, investors, and regulators on balance sheet liquidity, funding sources for financial institutions and the composition of their deposits including the amount of uninsured deposits, the level of AOCL deficits, regulatory capital levels, and interest rate risk management.

Feldman Financial Advisors, Inc.

**Table 21**

**Summary of Montana Bank and Thrift Acquisition Activity**

Transactions Announced After January 1, 2017

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| | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  |  |  | Seller's Prior Financial Data | Seller's Prior Financial Data | Seller's Prior Financial Data | Seller's Prior Financial Data |  |  |  |  | Offer Value to | Offer Value to |  |
|  |  |  |  | Total | Equity/ | LTM | LTM |  |  | Offer | Book | Tang. | LTM | Total |
|  |  |  |  | Assets | Assets | ROA | ROE | Date | Date | Value | Value | Book | EPS | Assets |
| Buyer | St. | Seller | St. | ($Mil.) | (%) | (%) | (%) | Anncd. | Completed | ($Mil.) | (%) | (%) | (x) | (%) |
| **Median** |  |  |  | **92.8** | **10.83** | **1.30** | **13.63** | **NA** | **NA** | **18.7** | **135.8** | **140.0** | **16.05** | **16.84** |
| **Average** |  |  |  | **168.7** | **10.83** | **0.78** | **5.49** | **NA** | **NA** | **52.4** | **140.4** | **149.2** | **16.51** | **15.57** |
| Frontier Credit Union | ID | First Citizens Bank of Butte | MT | 75.3 | 11.45 | 1.10 | 10.18 | 05/01/25 | Pending | NA | NA | NA | NA | NA |
| Forstrom Bancorp. Inc. | MN | Stockmens Bank | MT | 42.0 | 10.39 | 0.52 | 5.32 | 09/20/24 | 01/10/25 | NA | NA | NA | NA | NA |
| Forstrom Bancorp. Inc. | MN | Granite Mountain Bank Inc. | MT | 129.2 | 7.50 | 1.40 | 20.32 | 01/15/23 | 06/02/23 | NA | NA | NA | NA | NA |
| Bitterroot Holding Co. | MT | Antler Land Co. | MT | 134.7 | 9.73 | 1.59 | 17.14 | 11/19/21 | 04/18/22 | NA | NA | NA | NA | NA |
| Eagle Bancorp Montana, Inc. | MT | First Community Bancorp Inc. | MT | 376.8 | 11.13 | 1.60 | 14.18 | 10/01/21 | 04/30/22 | 41.3 | 135.8 | 140.0 | 7.23 | 11.30 |
| Yellowstone Holding Co. | MT | 1st Bank | MT | 58.8 | 8.73 | 1.30 | 14.77 | 04/24/21 | 09/18/21 | NA | NA | NA | NA | NA |
| Kimberly Leasing Corp. | WI | First Citizens Bank of Polson | MT | 16.9 | 5.16 | (6.42) | (87.18) | 03/04/20 | 05/15/20 | NA | NA | NA | NA | NA |
| American Bancor Ltd. | ND | Beartooth Financial Corp. | MT | 46.7 | 17.06 | 1.11 | 6.71 | 09/23/19 | 01/31/20 | NA | NA | NA | NA | NA |
| Eagle Bancorp Montana Inc. | MT | Western Hldg. Co. of Wolf Pt. | MT | 100.2 | 10.95 | 1.28 | 12.36 | 08/09/19 | 01/01/20 | 13.5 | 119.1 | 119.1 | 16.05 | 13.44 |
| Bridger Co. | MT | Valley Bank/First Security Bank | MT | 75.6 | 11.14 | NA | NA | 07/03/19 | 10/05/19 | NA | NA | NA | NA | NA |
| American Bancor Ltd. | ND | Prairie Mountain Bank | MT | 93.7 | 10.67 | 1.18 | 11.31 | 06/03/19 | 10/18/19 | NA | NA | NA | NA | NA |
| Eagle Bancorp Montana, Inc. | MT | Big Muddy Bancorp Inc. | MT | 110.9 | 11.86 | 1.47 | 13.63 | 08/21/18 | 01/01/19 | 18.7 | 137.0 | 140.9 | 24.67 | 16.84 |
| Glacier Bancorp Inc. | MT | Inter-Mountain Bancorp. Inc. | MT | 1009.6 | 10.70 | 1.85 | 17.97 | 10/26/17 | 02/28/18 | 170.9 | 186.1 | 222.0 | 20.23 | 16.92 |
| Eagle Bancorp Montana, Inc. | MT | TwinCo Inc. | MT | 91.8 | 15.10 | 2.12 | 14.61 | 09/06/17 | 01/31/18 | 17.8 | 123.8 | 123.8 | 14.37 | 19.34 |

---

Source: S&P Global.

Feldman Financial Advisors, Inc.

**Table 22**

**Comparative One-Year Stock Market Index Performance**

For the One-Year Period Ended September 2, 2025

![](tm2525788d3_ex99-3sp6img001.jpg)

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| | | |
|:---|:---|:---|
| &nbsp;&nbsp;S&P 500 Index | + | 16.0% |
| &nbsp;&nbsp;NASDAQ Bank Index | + | 8.0% |
| &nbsp;&nbsp;U.S. SmallCap Banks Index | + | 10.8% |

---

Feldman Financial Advisors, Inc.

**Table 23**

**Comparative Three-Year Stock Market Index Performance**

For the Three-Year Period Ended September 2, 2025

![](tm2525788d3_ex99-3sp6img002.jpg)

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| | | |
|:---|:---|:---|
| &nbsp;&nbsp;S&P 500 Index | + | 63.5% |
| &nbsp;&nbsp;NASDAQ Bank Index | + | 10.6% |
| &nbsp;&nbsp;U.S. SmallCap Banks Index | + | 16.0% |

---

Feldman Financial Advisors, Inc.

While the financial sector lagged the S&P 500 Index through much of 2023, it started to outperform in mid-2024 and then spiked further upward after the U.S. elections in November 2024. The strong performance by financials was bolstered by the steeper yield curve, falling rates, and the strong U.S. economy. The Federal Reserve lowered the target federal funds rate by 50 basis points in September 2024, which was followed by consecutive 25-basis point reductions in November and December 2024. Additionally, the prospect rose that, under a new presidential administration, there could be a loosening of banking regulations, which could lead to an improvement in banking industry profits and expanded consolidation activity.

However, market turbulence emerged in February 2025 that pushed stock prices lower and created tremendous volatility. The S&P 500 Index reached an all-time high in February 2025, but investor sentiment shifted sharply thereafter due to concerns about (1) the lofty prices of big tech stocks, (2) the possibility of slower economic growth, and (3) repercussions related to trade policy and tariffs. The financial sector turned weaker as recession fears and other economic headwinds caused investors to question the outlook for consumer loan demand and credit quality stability.

More recently, beginning in May 2025 through August 2025, major U.S. stock indexes rose steadily, buoyed by signs of a cooling labor market that fueled optimism for interest rate cuts from the Federal Reserve. While market momentum was strong, renewed inflation concerns have injected more volatility into overall stock prices. On a year-to-date basis through September 2, 2025, the S&P 500 Index was up 9.1% despite the current presidential administration imposing severe tariffs. Nevertheless, many stock research analysts have lowered their earnings forecasts for future quarters. The combination of a rising stock market and declining earnings estimates has left the S&P 500 Index at 22.4 times forward earnings, an expensive valuation level that has historically led to market declines in the next year.

Feldman Financial Advisors, Inc.

A "new issue" discount that reflects investor concerns and investment risks inherent in all initial public offerings is a factor to be considered for purposes of valuing converting thrifts. Table 24 presents a summary of the 15 standard thrift conversion offerings completed since January 1, 2022. There were three and four such conversion offerings that closed in 2024 and year-to-date 2025, respectively. The final pricing of these conversion offerings confirms the presence of the new issue discount in the pro forma market valuations of converting thrifts versus the trading valuations of existing publicly traded thrifts.

The distinction of the new issue discount is most apparent with the price-to-book value ratio because the pro forma equity calculation involves combining the net new capital proceeds with the historical equity of the converting company. The median pro forma price-to-book value ratio for standard thrift conversion offerings was 45.3% for the 2024 to 2025 period, and the median pro forma price-to-tangible book ratio was 45.3%.

Historically, newly converted thrifts have gradually traded upward in the after-market to a range near existing thrift stock valuation levels, but found resistance approaching book value until a discernible trend in earnings improvement was evident. Pricing a new offering at a relatively high ratio in relation to pro forma book value, because of the mathematics of the calculation, would require substantial increases in valuations resulting in unsustainable price-to-earnings ratios and marginal returns on equity.

Accordingly, thrift conversions continue to be priced at discounts to comparable publicly traded companies. This is due to the relatively high pro forma equity ratios, expected low returns on equity, and the uncertainty regarding the prospects of an institution to leverage the balance sheet prudently and effectively in the current economic environment and against the backdrop of an increasingly competitive banking sector and volatile equities market.

Feldman Financial Advisors, Inc.

**Table 24**

**Summary of Standard Conversion Offerings**

Transactions Completed Since January 1, 2022

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| | | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  |  |  |  |  | Pro Forma Ratios | Pro Forma Ratios | Pro Forma Ratios | Pro Forma Ratios |  |  | After-Market | After-Market | After-Market | Price |
|  |  |  |  |  | Gross | Price/ | Price/ | Price/ | Tang. |  | Closing | Price Change | Price Change | Price Change | Change |
|  |  |  | Stock | Total | Offering | Book | Tang. | LTM | Eqty./ | IPO | Price | One | One | One | Through |
|  |  | Stock | Offering | Assets | Proceeds | Value | Book | EPS | Assets | Price | 9/2/25 | Day | Week | Month | 9/2/25 |
| Company | State | Exchange | Date | ($Mil.) | ($Mil.) | (%) | (%) | (x) | (%) | ($) | ($) | (%) | (%) | (%) | (%) |
| **Average** |  |  |  | **782.3** | **80.3** | **51.5** | **52.3** | **23.7** | **18.96** | **NA** | **NA** | **16.6** | **19.6** | **21.6** | **33.6** |
| **Median** |  |  |  | **267.5** | **41.3** | **50.2** | **50.9** | **17.5** | **16.21** | **NA** | **NA** | **14.0** | **18.2** | **24.6** | **24.6** |
| **Average (2024-25)** |  |  |  | **711.6** | **67.8** | **48.5** | **48.9** | **32.7** | **18.89** | **NA** | **NA** | **15.9** | **20.0** | **22.3** | **19.1** |
| **Median (2024-25)** |  |  |  | **267.5** | **8.9** | **45.3** | **45.3** | **40.0** | **12.24** | **NA** | **NA** | **13.5** | **15.0** | **19.5** | **18.8** |
| **<u>Standard Conversion Offerings</u>** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Avidia Bancorp, Inc. | MA | NYSE | 07/31/25 | 2656.5 | 191.8 | 56.2 | 58.2 | 14.3 | 12.24 | 10.00 | 15.50 | 46.4 | 45.8 | 55.0 | 55.0 |
| Security Midwest Bancorp, Inc. | IL | OTCQB | 07/31/25 | 217.6 | 8.9 | 45.3 | 45.3 | 9.6 | 8.90 | 10.00 | 12.46 | 14.0 | 11.2 | 24.6 | 24.6 |
| Magnolia Bancorp, Inc. | LA | OTCQB | 01/14/25 | 35.1 | 8.3 | 41.8 | 41.8 | NM | 48.12 | 10.00 | 11.00 | 11.2 | 10.1 | 12.5 | 10.0 |
| Monroe Federal Bancorp, Inc. | OH | OTCQB | 10/23/24 | 147.5 | 5.3 | 44.2 | 44.2 | 55.6 | 7.74 | 10.00 | 13.25 | 13.5 | 37.5 | 29.1 | 32.5 |
| FB Bancorp, Inc. | LA | NASDAQ | 10/22/24 | 1171.5 | 198.4 | 60.5 | 61.6 | 40.0 | 25.95 | 10.00 | 11.88 | 18.6 | 18.2 | 19.5 | 18.8 |
| EWSB Bancorp, Inc. | WI | OTCQB | 09/18/24 | 267.5 | 7.5 | 46.3 | 46.3 | NM | 5.84 | 10.00 | 8.75 | 5.0 | 15.0 | 10.1 | (12.5) |
| Fifth District Bancorp, Inc. | LA | NASDAQ | 07/31/24 | 485.7 | 54.6 | 45.0 | 45.0 | 44.1 | 23.45 | 10.00 | 10.51 | 2.5 | 2.4 | 5.0 | 5.1 |
| NB Bancorp, Inc. | MA | NASDAQ | 12/27/23 | 4231.8 | 410.0 | 60.1 | 60.2 | 11.9 | 16.21 | 10.00 | 18.91 | 37.7 | 36.1 | 46.7 | 89.1 |
| Central Plains Bancshares, Inc. | NE | NASDAQ | 10/19/23 | 450.4 | 41.3 | 56.5 | 56.5 | 19.2 | 15.47 | 10.00 | 15.74 | (9.0) | (9.3) | (0.7) | 57.4 |
| PFS Bancorp, Inc. | IL | OTCQB | 10/17/23 | 184.7 | 17.3 | 50.9 | 50.9 | 17.5 | 17.08 | 10.00 | 11.96 | (10.0) | (11.0) | (11.0) | 19.6 |
| SR Bancorp, Inc. (1) | NJ | NASDAQ | 09/19/23 | 651.5 | 90.6 | 49.0 | 57.3 | 15.7 | 14.76 | 10.00 | 15.00 | (7.2) | (14.0) | (18.5) | 50.0 |
| Mercer Bancorp, Inc. | OH | OTCQB | 07/26/23 | 149.0 | 9.7 | 47.5 | 47.5 | 6.9 | 11.32 | 10.00 | 15.17 | 30.0 | 42.4 | 37.5 | 51.7 |
| ECB Bancorp, Inc. | MA | NASDAQ | 07/27/22 | 688.6 | 89.2 | 59.8 | 59.8 | 25.9 | 20.64 | 10.00 | 17.05 | 40.9 | 41.3 | 40.5 | 70.5 |
| VWF Bancorp, Inc. | OH | OTCQX | 07/13/22 | 137.0 | 19.2 | 50.2 | 50.2 | NA | 24.84 | 10.00 | 11.30 | 29.0 | 45.0 | 49.1 | 13.0 |
| NSTS Bancorp, Inc. | IL | NASDAQ | 01/18/22 | 259.9 | 52.9 | 59.7 | 59.7 | NA | 31.81 | 10.00 | 11.90 | 25.9 | 23.0 | 24.9 | 19.0 |

---

(1) Conversion transaction
 involved simultaneous cash acquisition of Regal Bancorp, Inc.

Source: S&P Global.

Feldman Financial Advisors, Inc.

The 4,421 FDIC-insured commercial banks and savings institutions reported quarterly net income of $69.9 billion in the second quarter of 2025, down $677.3 million or 1.0% from the first quarter of 2025. The banking industry reported an aggregate ROA of 1.13% in the second quarter of 2025, down from 1.16% in the first quarter of 2025 and 1.20% in the year-ago quarter. Increases in net interest income and non-interest income were offset by moderately higher credit provisions.

The ROA for the 3,982 community banks (including commercial banks and savings institutions) improved to 1.11% for the second quarter of 2025, compared to 0.99% for the first quarter of 2025. Higher net interest income (up 5.7%) and higher non-interest income (up 10.1%) more than offset higher non-interest expense (up 3.5%) and higher provision expense (up 29.2%). The community bank net interest margin increased 16 basis points from the prior quarter and 32 basis points year-over-year to 3.62%. The efficiency ratio for community banks declined to 63.0% in the second quarter of 2025 from 64.7% in the first quarter of 2025. The ratio of non-performing assets to total assets for community banks continued to increase moderately, rising from 0.46% at June 30, 2024 to 0.55% at March 31, 2025 and 0.58% at June 30, 2025. The tier 1 leverage capital ratio for community banks increased from 10.83% at June 30, 2024 to 10.91% at March 31, 2025 and 11.01% at June 30, 2025.

Bank and thrift industry earnings results have continued to be solid in comparison to historical levels, but earnings growth has been challenged recently by increasing credit-related charges. Industry operating expenses generally continue to rise in the face of sluggish growth in non-interest operating income. While bank and thrift industry capital levels remain strong and overall asset quality has stabilized, there continue to be volatile swings in the market for bank and thrift stocks in response to the economic outlook and the anxiety in the overall market that is contributing to the current fluctuations. Therefore, we believe that with the heightened uncertainty attendant to prevailing stock market conditions, the new issue discount continues to be highly relevant because of the risks and uncertainties associated with a new stock offering in the current market and warrants a downward adjustment.

Feldman Financial Advisors, Inc.

**<u>Adjustments Conclusion</u>**

It is our opinion that the Association's pro forma market value should be discounted relative to the Comparative Group. Our conclusion is based on downward adjustments for earnings growth and viability, liquidity of the issue, and the new issue discount underlying current stock market conditions. Converting thrifts are often valued at meaningful discounts to peer trading companies relative to price-to-book value and price-to-tangible book value ratios. Due to initially restrained levels of post-offering earnings growth without the benefit of sustained leveraging of balance sheets, resulting price-to-earnings ratios may reflect premiums to established trading companies. It is the judgment of the appraiser to balance the relative dynamics of price-to-book and price-to-earnings discounts or premiums.

**<u>Valuation Approach</u>**

In determining the estimated pro forma market value of the Association, we have employed the comparative company approach and considered the following pricing ratios: price-to-book value per share ("P/B"), price-to-tangible book value per share ("P/TB"), price-to-earnings per share ("P/E"), and price-to-assets ("P/A"). Table 25 presents the trading market valuation ratios of the Comparative Group and All Public Thrift averages and medians as of September 2, 2025. As shown in Table 25, the median P/B ratio for the Comparative Group was 83.7%. Nine of the 10 members of the Comparative Group were valued at levels under book value (P/B ratio less than 100.0%). The median P/TB ratio for the Comparative Group was 84.8%. Higher equity levels have a restraining impact on P/B and P/TB ratios because of the accompanying challenge to generate competitive ROE results on such excess capital. Among the Comparative Group members, Catalyst Bancorp reported the highest equity capital ratio at 29.51% of total assets along with a P/B ratio of 66.4%. NSTS Bancorp reported an equity capital ratio of 28.20% and a P/B ratio of 80.1%. The median P/E ratio based on LTM earnings for the Comparative Group was 17.4x. On a core earnings basis, the median core P/E ratio of the Comparative Group was 16.4x. Some companies within the Comparative Group and All Public Thrift aggregate generated P/E ratios that were negative and their corresponding P/E ratios are expressed as "NM" or not meaningful.

Feldman Financial Advisors, Inc.

Investors continue to make decisions to purchase thrift conversion stocks and more seasoned thrift issues based upon consideration of core earnings profitability and P/B comparisons. The P/E ratio remains an important valuation ratio in the current thrift stock market. However, as noted above, the P/E ratio is not useful for companies reporting negative or low earnings. The Company's earnings for the LTM ended June 30, 2025 amounted to $145,000 (LTM ROA of 0.13%) and its LTM core earnings amounted to $216,000 (core ROA of 0.19%). On a pro forma basis, after making adjustments for re-investment of net offering proceeds and expensing charges related to the implementation of various stock benefit plans, including the ESOP, restricted stock plan ("RSP"), and stock option plan, the Association's pro forma earnings results are moderately higher than the historical earnings levels. The pro forma earnings results do not take into account the capacity of the Association to leverage the additional capital because of the attendant risks of executing and implementing operating strategies and business expansion initiatives.

Feldman Financial Advisors, Inc.

Based on our comparative financial and valuation analyses, we concluded that the Association should be discounted relative to the trading valuation ratios of the overall Comparative Group. In consideration of the foregoing factors along with the additional adjustments discussed in this chapter, we have determined pro forma P/B and P/TB ratios of approximately 44.5% at the midpoint for the Association, which reflects an aggregate pro forma midpoint of $12.0 million for the Valuation Range based on the assumptions summarized in Exhibit IV. Employing a range of 15% above and below the midpoint, the resulting minimum value of $10.2 million reflects a 40.1% P/B ratio and the resulting maximum value of $13.8 million reflects a 48.3% P/B ratio. The adjusted maximum value, computed as an additional 15% above the maximum, is positioned at $15.87 million and a P/B ratio of 52.2%. The Association's pro forma P/B and P/TB ratios are equivalent since the Association had no intangible assets as of June 30, 2025.

The Association's pro forma midpoint P/B and P/TB ratios of 44.5% reflect discounts of 46.9% and 47.6% to the Comparative Group median P/B and P/TB ratios of 83.7% and 84.8%, respectively. The Association's pro forma maximum P/B and P/TB ratios of 48.3% reflect discounts of 42.3% and 43.1% to the Comparative Group median P/B and P/TB ratios of 83.7% and 84.8%, respectively. At the adjusted maximum, the Association's pro forma P/B and P/TB ratios of 52.2% are positioned at discounts of 37.6% and 38.5% to the Comparative Group median P/B and P/TB ratios of 83.7% and 84.8% respectively.

Based on the Valuation Range as indicated above, the Association's pro forma LTM P/E ratios measured 58.8x, 62.5x, 66.7x, and 71.4x at the minimum, midpoint, maximum, and adjusted maximum, respectively, of the Valuation Range and represent significant premiums to the Comparative Group median P/E ratio of 17.9x. The Association's pro forma core P/E ratios were 40.0x, 45.5x, 50.0x, and 55.6x at the minimum, midpoint, maximum, and adjusted maximum, respectively, of the Valuation Range. The Association's pro forma P/E ratios are inflated by the low level of historical profitability reported and render the P/E approach less relevant for valuation purposes and result in more reliance on the P/B approach.

Feldman Financial Advisors, Inc.

Based on the price-to-assets valuation metric, the Association's pro forma midpoint of the Valuation Range at $12.0 million reflects a corresponding P/A ratio of 9.85%, ranging from 8.48% at the minimum valuation to 11.18% and 12.67% at the maximum and adjusted maximum, respectively. The Association's pro forma P/A ratios represent discounts of 36.2%, 26.0%, 16.0%, and 4.8% at the minimum, midpoint, maximum, and adjusted maximum, respectively, of the Valuation Range as compared to the Comparative Group median P/A ratio of 13.31%. On a pro forma consolidated basis, the Company's total equity-to-assets ratio ranges from 21.13% at the minimum valuation and 22.15% at the midpoint valuation to 23.15% at the maximum valuation and 24.27% at the adjusted maximum valuation. Thus, upon completion of the Conversion and Stock Offering, the Company's pro forma equity capital ratios would exceed the Comparative Group average of 17.67% and median of 15.09%. Among the Comparative Group companies, only three of the members would have higher or comparable ratios of total equity-to-assets: Catalyst Bancorp at 29.51%, NSTS Bancorp at 28.20%, and Fifth District Bancorp at 24.25%. As noted earlier, the solid post-Conversion equity capital levels of the Company will provide greater expansion opportunity and flexibility, but also present challenges in generating competitive returns on equity.

**<u>Valuation Conclusion</u>**

It is our opinion that, as of September 2, 2025, the estimated pro forma market value of the Association was within a Valuation Range of $10,200,000 to $13,800,000 with a midpoint of $12,000,000. Pursuant to applicable appraisal guidelines, the Valuation Range was based upon a decrease of 15% from the midpoint value to determine the minimum value and an increase of 15% from the midpoint value to establish the maximum value. Assuming an additional increase of 15% above the maximum value would result in an adjusted maximum of $15,870,000. Based on an initial offering price of $10.00 per share, the number of shares to be sold in the Stock Offering is as follows: 1,070,000 at the minimum, 1,200,000 at the midpoint, 1,380,000 at the maximum, and 1,587,000 at the adjusted maximum. Table 25 compares the Association's pro forma valuation ratios to the market valuation ratios of the Comparative Group.

Feldman Financial Advisors, Inc.

Exhibit IV-1 displays the assumptions utilized in calculating the pro forma financial consequences of the Stock Offering. Exhibit IV-2 displays the pro forma financial data at the minimum, midpoint, maximum, and adjusted maximum levels of the Valuation Range. Exhibit IV-3 provides more detailed data and calculations at the pro forma midpoint level of the Valuation Range. Exhibit IV-4 compares the pro forma valuation ratios with the averages and medians reported by the Comparative Group.

Feldman Financial Advisors, Inc.

**Table 25**

**Comparative Pro Forma Market Valuation Analysis**

Computed from Market Price Data as of September 2, 2025

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | Current | Total | Price/ | Price/ | Price/ | Price/ | Price/ | Total | Tang. | Current |
|  | Stock | Market | LTM | Core | Book | Tang. | Total | Equity/ | Equity/ | Dividend |
|  | Price | Value | EPS | EPS | Value | Book | Assets | Assets | Assets | Yield |
| Company | ($) | ($Mil.) | (x) | (x) | (%) | (%) | (%) | (%) | (%) | (%) |
| **Pioneer Federal S&LA**<sup>(1)</sup>** |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;**Pro Forma Minimum** | **10.00** | **10.2** | **58.82** | **40.00** | **40.14** | **40.14** | **8.48** | **21.13** | **21.13** | **0.00** |
| &nbsp;&nbsp;&nbsp;&nbsp;**Pro Forma Midpoint** | **10.00** | **12.0** | **62.50** | **45.45** | **44.46** | **44.46** | **9.85** | **22.15** | **22.15** | **0.00** |
| &nbsp;&nbsp;&nbsp;&nbsp;**Pro Forma Maximum** | **10.00** | **13.8** | **66.67** | **50.00** | **48.31** | **48.31** | **11.18** | **23.15** | **23.15** | **0.00** |
| &nbsp;&nbsp;&nbsp;&nbsp;**Pro Forma Adj. Maximum** | **10.00** | **15.9** | **71.43** | **52.63** | **52.22** | **52.22** | **12.67** | **24.27** | **24.27** | **0.00** |
| **Comparative Group Average** | **NA** | **78.9** | **17.88** | **17.10** | **82.30** | **85.37** | **14.01** | **17.67** | **17.30** | **0.69** |
| **Comparative Group Median** | **NA** | **62.5** | **17.37** | **16.44** | **83.67** | **84.84** | **13.31** | **15.09** | **14.40** | **0.00** |
| **All Public Thrift Average**<sup>(2)</sup>** | **NA** | **615.7** | **16.75** | **16.50** | **91.92** | **100.75** | **11.72** | **14.15** | **13.50** | **1.71** |
| **All Public Thrift Median**<sup>(2)</sup>** | **NA** | **156.3** | **16.05** | **15.91** | **84.37** | **85.86** | **11.10** | **11.84** | **11.34** | **0.93** |
| <u>Comparative Group</u> |  |  |  |  |  |  |  |  |  |  |
| Affinity Bancshares, Inc. | 19.79 | 124.8 | 18.50 | 16.84 | 100.39 | 117.51 | 13.34 | 13.29 | 11.58 | 0.00 |
| BV Financial, Inc. | 16.74 | 162.0 | 16.25 | 16.04 | 87.24 | 94.48 | 19.02 | 21.80 | 20.47 | 0.00 |
| Catalyst Bancorp, Inc. | 12.94 | 53.4 | 22.70 | 27.13 | 66.35 | 66.35 | 19.58 | 29.51 | 29.51 | 0.00 |
| Central Plains Bancshares, Inc. | 15.74 | 66.9 | 15.90 | 15.90 | 78.53 | 78.53 | 13.27 | 16.90 | 16.90 | 0.00 |
| Fifth District Bancorp, Inc. | 13.94 | 77.3 | 27.33 | 19.92 | 59.21 | 59.21 | 14.36 | 24.25 | 24.25 | 0.00 |
| First Seacoast Bancorp, Inc. | 11.52 | 50.1 | NM | NM | 89.18 | 89.47 | 8.96 | 10.05 | 10.02 | 0.00 |
| Home Federal Bancorp, Inc. | 13.34 | 40.1 | 10.59 | 10.00 | 74.54 | 80.22 | 6.75 | 9.06 | 8.47 | 4.05 |
| Magyar Bancorp, Inc. | 17.11 | 110.9 | 10.83 | 10.72 | 94.89 | 95.19 | 11.18 | 11.78 | 11.75 | 1.86 |
| NSTS Bancorp, Inc. | 11.90 | 58.1 | NM | NM | 80.10 | 80.10 | 22.59 | 28.20 | 28.20 | 0.00 |
| Texas Community Bancshares, Inc. | 16.31 | 45.1 | 20.91 | 20.25 | 92.54 | 92.66 | 11.02 | 11.91 | 11.89 | 0.98 |

---

<sup>(1)</sup> Pro forma ratios assume an estimated pro forma market value of $10.2 million at the minimum, $12.0 million at the midpoint, $13.8 million at the maximum, and $15.87 million at the adjusted maximum.

<sup>(2)</sup> All public thrifts traded on a major exchange, excluding mutual holding companies and companies being acquired in announced merger transactions.

Source: Pioneer Federal Savings and Loan Association; S&P Global.

Feldman Financial Advisors, Inc.

**Exhibit I**

**Background of Feldman Financial Advisors, Inc.**

**<u>Overview of Firm</u>**

**Feldman Financial Advisors** provides consulting and advisory services to financial institutions and mortgage companies in the areas of corporate valuations, mergers and acquisitions, strategic planning, branch sales and purchases, developing and implementing regulatory business and capital plans, and expert witness testimony and analysis. Our senior staff members have been involved in the stock conversion process since 1982 and have valued more than 350 converting institutions.

**Feldman Financial Advisors** was incorporated in February 1996 by a group of consultants who were previously associated with Credit Suisse First Boston and Kaplan Associates. Each of the principals at Feldman Financial Advisors has more than 35 years of experience in consulting, and all were officers of their prior firm. Our senior staff collectively has worked with more than 1,000 commercial banks, savings institutions, credit unions, insurance companies, and mortgage companies nationwide. The firm's office is located outside of Washington, D.C. in McLean, Virginia.

**<u>Background of Senior Professional Staff</u>**

**<u>Trent Feldman</u>** - President. Trent is a nationally recognized expert in providing strategic advice to and valuing financial service companies and advising on mergers and acquisitions. Trent was with Kaplan Associates for 14 years and was one of three founding principals at that firm. Trent also has worked at the Federal Home Loan Bank Board and with the California legislature. Trent holds Bachelor's and Master's Degrees from the University of California, Los Angeles.

**<u>Peter Williams</u>** - Principal. Peter specializes in merger and acquisition analysis, mutual-to-stock conversion valuations, corporate valuations, strategic business plans, and fair value accounting analysis. Peter previously was with Kaplan Associates for 13 years. Peter also worked as a Corporate Planning Analyst with the Wilmington Trust Company in Delaware. Peter holds a BA in Economics from Yale University and an MBA in Finance and Investments from The George Washington University.

Feldman Financial Advisors, Inc.

**Exhibit II-1**

**Balance Sheets**

**Pioneer Federal Savings and Loan Association**

As of December 31, 2023 and 2024 and June 30, 2025

(Dollars in Thousands)

---

| | | | |
|:---|:---|:---|:---|
|  | | December 31, | December 31, |
|  | June 30,<br>2025 | 2024 | 2023 |
| **<u>Assets</u>** |  |  |  |
| Cash and due from banks | $883041 | $1029393 | $1010448 |
| Interest-bearing deposits | 8315891 | 5404094 | 9182472 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents | 9198932 | 6433487 | 10192920 |
| Investment securities available for sale | 9411834 | 9538032 | 11303990 |
| Investment securities held to maturity | 1849761 | 2005207 | 2835565 |
| Other investments | 714761 | 729335 | 713120 |
| Loans receivable | 86230661 | 87535364 | 82176780 |
| Allowance for credit losses | (1098861) | (1208149) | (1140550) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total loans, net | 85131800 | 86327215 | 81036230 |
| Premises and equipment, net | 4976905 | 5118229 | 4715208 |
| Accrued interest receivable | 384856 | 361572 | 323417 |
| Cash value of life insurance | 754002 | 744112 | 763732 |
| Deferred tax asset | 484710 | 563577 | 665449 |
| Other assets | 350973 | 288212 | 172897 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Assets | $113258534 | $112108978 | $112722528 |
| **<u>Liabilities and Equity</u>** |  |  |  |
| Total deposits | $85842459 | $85089582 | $86071413 |
| Advances from borrowers for taxes and insurance | 135302 | 54200 | 36929 |
| Federal Home Loan Bank advances | 8000000 | 8000000 | 8000000 |
| Accrued interest payable | 94463 | 105112 | 33065 |
| Deferred compensation | 336816 | 364886 | 397078 |
| Accrued income taxes payable | 54898 | 75539 | 80867 |
| Reserve for unfunded loan commitments | 35041 | 35041 | 74409 |
| Other liabilities | 331132 | 231087 | 199315 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Liabilities | 94830111 | 93955447 | 94893076 |
| Retained earnings | 18733227 | 18607441 | 18383704 |
| Accumulated other comprehensive loss | (304804) | (453910) | (554252) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Equity | 18428423 | 18153531 | 17829452 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Liabilities and Equity | $113258534 | $112108978 | $112722528 |

---

Source: Pioneer Federal Savings and Loan Association, financial statements.

Feldman Financial Advisors, Inc.

**Exhibit II-2**

**Income Statements**

**Pioneer Federal Savings and Loan Association**

For the Years Ended December 31, 2023 and 2024

And the Six Months Ended June 30, 2024 and 2025

(Dollars in Thousands)

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Six Months Ended | Six Months Ended | Year Ended | Year Ended |
|  | June 30, | June 30, | December 31, | December 31, |
|  | 2025 | 2024 | 2024 | 2023 |
| Total interest income | $2600363 | $2435947 | $5014732 | $4380954 |
| Total interest expense | 867082 | 863778 | 1822436 | 1088528 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net interest income | 1733281 | 1572169 | 3192296 | 3292426 |
| Provision for (recovery of) credit losses on loans | (104378) |  | 67599 | 18094 |
| Provision for credit losses on unfunded commitments | - | - | (39368) | 16875 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net interest income after provision | 1837659 | 1572169 | 3164065 | 3257457 |
| Service fees | 30001 | 35658 | 67892 | 65214 |
| Interchange fees | 87100 | 56323 | 127435 | 137558 |
| Loan servicing income | 1351 | 1263 | 2827 | 2672 |
| Increase in cash value of life insurance | 9890 | 9964 | (19620) | 56496 |
| Net gain on sale of premises and equipment |  | 311069 | 311069 |  |
| Other non-interest income | - | - | 5887 | 6492 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total non-interest income | 128342 | 414277 | 495490 | 268432 |
| Salaries and employee benefits | 828569 | 838513 | 1614041 | 1633476 |
| Occupancy | 268826 | 242432 | 486663 | 226908 |
| Data processing | 220421 | 209892 | 413892 | 434231 |
| Advertising | 56894 | 57050 | 104027 | 114487 |
| Professional fees | 152649 | 62496 | 129164 | 118319 |
| Directors fees | 56700 | 54045 | 110745 | 129105 |
| Insurance | 23184 | 40291 | 77139 | 74978 |
| Loan costs | 29692 | 34616 | 69990 | 62802 |
| ATM fee expense | 30300 | 46718 | 96542 | 94873 |
| Other non-interest expense | 164044 | 136079 | 260121 | 246486 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total non-interest expense | 1831279 | 1722132 | 3362324 | 3135665 |
| Income before income taxes | 134722 | 264314 | 297231 | 390224 |
| Income tax expense | 8936 | 59606 | 73494 | 132980 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net income | $125786 | $204708 | $223737 | $257244 |

---

Source: Pioneer Federal Savings and Loan Association, financial statements.

Feldman Financial Advisors, Inc.

**Exhibit II-3**

**Loan Portfolio Composition**

**Pioneer Federal Savings and Loan Association**

As of December 31, 2023 and 2024 and June 30, 2025

(Dollars in Thousands)

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | June 30, | June 30, | December 31, | December 31, | December 31, | December 31, |
|  | 2025 | 2025 | 2024 | 2024 | 2023 | 2023 |
| Loan | Amount | Percent | Amount | Percent | Amount | Percent |
| Category | (000s) | (%) | (000s) | (%) | (000s) | (%) |
| Residential real estate loans: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;First liens | $73212 | 84.52 | $74275 | 84.46 | $71561 | 86.68 |
| &nbsp;&nbsp;&nbsp;Junior liens | 1007 | 1.16 | 707 | 0.80 | 368 | 0.45 |
| &nbsp;&nbsp;&nbsp;Revolving, open-end | 2508 | 2.89 | 1763 | 2.00 | 1516 | 1.84 |
| &nbsp;&nbsp;&nbsp;Residential construction | 1225 | 1.41 | 2322 | 2.64 | 1532 | 1.86 |
|  | 77951 | 89.99 | 79067 | 89.91 | 74978 | 90.82 |
| Commercial loans: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Commercial real estate | 4421 | 5.10 | 4173 | 4.75 | 2916 | 3.53 |
| &nbsp;&nbsp;&nbsp;Construction and land/land dev. | 1742 | 2.01 | 1909 | 2.17 | 832 | 1.01 |
| &nbsp;&nbsp;&nbsp;Farmland |  |  |  |  | 110 | 0.13 |
| &nbsp;&nbsp;&nbsp;Agricultural production | 10 | 0.01 | 15 | 0.02 | 26 | 0.03 |
| &nbsp;&nbsp;&nbsp;Commercial and industrial | 1112 | 1.28 | 1516 | 1.72 | 2608 | 3.16 |
| &nbsp;&nbsp;&nbsp;Municipal | 49 | 0.06 | 51 | 0.06 | 56 | 0.07 |
|  | 7334 | 8.47 | 7665 | 8.72 | 6548 | 7.93 |
| Consumer loans | 1338 | 1.54 | 1207 | 1.37 | 1034 | 1.25 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total loans | 86623 | 100.00 | 87939 | 100.00 | 82559 | 100.00 |
| Allowance for credit losses | (1099) |  | (1208) |  | (1141) |  |
| Deferred loan fees, net | (393) |  | (403) |  | (382) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net total loans | $85132 |  | $86327 |  | $81036 |  |

---

Source: Pioneer Federal Savings and Loan Association, financial statements.

Feldman Financial Advisors, Inc.

**Exhibit II-4**

**Cash and Investments Composition**

**Pioneer Federal Savings and Loan Association**

As of December 31, 2023 and 2024 and June 30, 2025

(Dollars in Thousands)

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | June 30, | June 30, | December 31, | December 31, | December 31, | December 31, |
|  | 2025 | 2025 | 2024 | 2024 | 2023 | 2023 |
| Cash and Investments | Amount | Percent | Amount | Percent | Amount | Percent |
| Category | (000s) | (%) | (000s) | (%) | (000s) | (%) |
| Cash and cash equivalents (1) | $9199 | 43.44 | $6433 | 34.39 | $10193 | 39.66 |
| Available-for-sale securities, at fair value:: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;U.S. Government and agency securities | 1030 | 4.86 | 1009 | 5.40 | 1511 | 5.88 |
| &nbsp;&nbsp;&nbsp;Municipal and state obligations | 2891 | 13.65 | 2889 | 15.44 | 3116 | 12.12 |
| &nbsp;&nbsp;&nbsp;Mortgage-backed securities | 5492 | 25.93 | 5640 | 30.15 | 6677 | 25.98 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total available-for-sale securities | 9412 | 44.45 | 9538 | 50.99 | 11304 | 43.98 |
| Held-to-maturity securities, at amortized cost: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;U.S. Government and agency securities | 84 | 0.40 | 128 | 0.68 | 169 | 0.66 |
| &nbsp;&nbsp;&nbsp;Municipal and state obligations | 975 | 4.61 | 975 | 5.21 | 1106 | 4.30 |
| &nbsp;&nbsp;&nbsp;Mortgage-backed securities | 790 | 3.73 | 902 | 4.82 | 1561 | 6.07 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total held-to-maturity securities | 1850 | 8.74 | 2005 | 10.72 | 2836 | 11.03 |
| Other investments: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Federal Home Loan Bank stock | 427 | 2.02 | 428 | 2.29 | 1106 | 4.30 |
| &nbsp;&nbsp;&nbsp;Mutual funds | 287 | 1.36 | 302 | 1.61 | 262 | 1.02 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total other investments | 715 | 3.38 | 729 | 3.90 | 1368 | 5.32 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total cash and investments | $21175 | 100.00 | $18706 | 100.00 | $25700 | 100.00 |
| <u>Percent of total assets (%)</u> |  |  |  |  |  |  |
| Cash and cash equivalents |  | 8.12 |  | 5.74 |  | 9.04 |
| Available-for-sale securities |  | 8.31 |  | 8.51 |  | 10.03 |
| Held-to-maturity securities |  | 1.63 |  | 1.79 |  | 2.52 |
| Other investments |  | 0.63 |  | 0.65 |  | 1.21 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total cash and investments |  | 18.70 |  | 16.69 |  | 22.80 |

---

(1) Includes cash and due from banks and interest-bearing deposits.

Source: Pioneer Federal Savings and Loan Association, financial statements.

Feldman Financial Advisors, Inc.

**Exhibit II-5**

**Deposit Accounts Composition**

**Pioneer Federal Savings and Loan Association**

As of December 31, 2023 and 2024 and June 30, 2025

(Dollars in Thousands)

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | June 30, | June 30, | December 31, | December 31, | December 31, | December 31, |
|  | 2025 | 2025 | 2024 | 2024 | 2023 | 2023 |
| Deposit Account | Amount | Percent | Amount | Percent | Amount | Percent |
| Category | (000s) | (%) | (000s) | (%) | (000s) | (%) |
| Non-interest demand accounts | $7140 | 8.32 | $6363 | 7.48 | $7233 | 8.40 |
| NOW checking accounts | 13125 | 15.29 | 12829 | 15.08 | 15196 | 17.66 |
| Regular savings accounts | 26427 | 30.79 | 24596 | 28.91 | 24269 | 28.20 |
| Money market accounts | 9482 | 11.05 | 8623 | 10.13 | 9010 | 10.47 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total non-certificate accounts | 56174 | 65.44 | 52411 | 61.60 | 55708 | 64.72 |
| Certificate of deposit accounts | 23174 | 27.00 | 25610 | 30.10 | 22033 | 25.60 |
| IRA certificate of deposit accounts | 6494 | 7.57 | 7068 | 8.31 | 8331 | 9.68 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total certificate accounts | 29668 | 34.56 | 32678 | 38.40 | 30364 | 35.28 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total deposits | $85842 | 100.00 | $85090 | 100.00 | $86071 | 100.00 |

---

Source: Pioneer Federal Savings and Loan Association, financial statements.

Feldman Financial Advisors, Inc.

**Exhibit III**

**Financial and Market Data for All Public Thrifts**

---

| | | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  |  |  | Total | Tang. |  |  | Closing | Total | Price/ | Price/ | Price/ | Price/ | Price/ |  |
|  |  |  | Total | Equity/ | Equity/ | LTM | LTM | Price | Market | LTM | Core | Book | Tang. | Total | Div. |
|  |  |  | Assets | Assets | Assets | ROA | ROE | 9/2/25 | Value | EPS | EPS | Value | Book | Assets | Yield |
| Company | State | Ticker | ($Mil.) | (%) | (%) | (%) | (%) | ($) | ($Mil.) | (x) | (x) | (%) | (%) | (%) | (%) |
| **<u>All Public Thrifts</u> (1)** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Affinity Bancshares, Inc. | GA | AFBI | 934 | 13.29 | 11.58 | 0.79 | 5.54 | 19.79 | 124.8 | 18.5 | 16.8 | 100.4 | 117.5 | 13.34 | 0.00 |
| Axos Financial, Inc. | NV | AX | 24783 | 10.82 | 10.33 | 1.82 | 17.30 | 90.02 | 5084.9 | 12.1 | 11.8 | 189.7 | 199.7 | 20.52 | 0.00 |
| Blue Foundry Bancorp | NJ | BLFY | 2128 | 15.10 | 15.10 | (0.55) | (3.40) | 9.30 | 181.9 | NM | NM | 62.5 | 62.5 | 9.44 | 0.00 |
| Broadway Financial Corporation | CA | BYFC | 1227 | 23.28 | 21.52 | 0.05 | 0.21 | 8.01 | 45.4 | NM | NM | 54.3 | 68.1 | 6.84 | 0.00 |
| BV Financial, Inc. | MD | BVFL | 908 | 21.80 | 20.47 | 1.19 | 5.32 | 16.74 | 162.0 | 16.3 | 16.0 | 87.2 | 94.5 | 19.02 | 0.00 |
| Capitol Federal Financial, Inc. | KS | CFFN | 9693 | 10.79 | 10.70 | 0.64 | 5.92 | 6.42 | 842.4 | 13.7 | 13.6 | 81.5 | 82.3 | 8.80 | 5.25 |
| Carver Bancorp, Inc. | NY | CARV | 714 | 4.00 | 4.00 | (1.73) | (36.28) | 2.33 | 8.8 | NM | NM | 179.8 | 179.8 | 1.77 | 0.00 |
| Catalyst Bancorp, Inc. | LA | CLST | 274 | 29.51 | 29.51 | 0.80 | 2.70 | 12.94 | 53.4 | 22.7 | 27.1 | 66.3 | 66.3 | 19.58 | 0.00 |
| Central Plains Bancshares, Inc. | NE | CPBI | 501 | 16.90 | 16.90 | 0.77 | 5.52 | 15.74 | 66.9 | 15.9 | 15.9 | 78.5 | 78.5 | 13.27 | 0.00 |
| ECB Bancorp, Inc. | MA | ECBK | 1515 | 11.11 | 11.11 | 0.38 | 3.16 | 17.05 | 150.6 | 26.6 | 26.6 | 90.7 | 90.7 | 10.07 | 0.00 |
| FB Bancorp, Inc. | LA | FBLA | 1247 | 26.64 | 26.64 | (0.38) | (1.68) | 11.88 | 219.8 | NA | NA | 71.0 | 71.0 | 18.90 | 0.00 |
| Fifth District Bancorp, Inc. | LA | FDSB | 540 | 24.25 | 24.25 | 0.49 | 2.09 | 13.94 | 77.3 | 27.3 | 19.9 | 59.2 | 59.2 | 14.36 | 0.00 |
| First Northwest Bancorp | WA | FNWB | 2195 | 6.82 | 6.77 | (0.46) | (6.50) | 7.50 | 65.2 | NM | NM | 47.3 | 47.7 | 3.23 | 3.76 |
| First Seacoast Bancorp, Inc. | NH | FSEA | 605 | 10.05 | 10.02 | (0.42) | (3.99) | 11.52 | 50.1 | NM | NM | 89.2 | 89.5 | 8.96 | 0.00 |
| Flagstar Financial, Inc. | NY | FLG | 92237 | 8.78 | 8.35 | (0.60) | (7.60) | 12.83 | 5331.6 | NM | NM | 70.2 | 74.4 | 5.81 | 0.31 |
| FS Bancorp, Inc. | WA | FSBW | 3176 | 9.36 | 8.91 | 1.10 | 11.38 | 42.18 | 320.0 | 10.0 | 9.3 | 108.1 | 114.1 | 10.12 | 2.62 |
| Hingham Institution for Savings | MA | HIFS | 4539 | 9.82 | 9.82 | 0.77 | 7.76 | 279.00 | 619.8 | 18.2 | 28.8 | 136.5 | 136.5 | 13.41 | 0.89 |
| Home Federal Bancorp, Inc. | LA | HFBL | 609 | 9.06 | 8.47 | 0.63 | 7.30 | 13.34 | 40.1 | 10.6 | 10.0 | 74.5 | 80.2 | 6.75 | 4.05 |
| IF Bancorp, Inc. | IL | IROQ | 888 | 9.22 | 9.22 | 0.49 | 5.52 | 25.05 | 81.7 | 18.3 | NA | 102.6 | 102.6 | 9.46 | 1.58 |
| Kearny Financial Corp. | NJ | KRNY | 7740 | 9.64 | 8.27 | 0.34 | 3.49 | 6.74 | 423.8 | 16.0 | 15.9 | 58.3 | 69.0 | 5.62 | 6.52 |
| Magyar Bancorp, Inc. | NJ | MGYR | 987 | 11.78 | 11.75 | 0.99 | 8.77 | 17.11 | 110.9 | 10.8 | 10.7 | 94.9 | 95.2 | 11.18 | 1.86 |
| Northeast Community Bancorp, Inc. | NY | NECB | 1974 | 17.06 | 17.06 | 2.26 | 13.90 | 22.01 | 263.9 | 6.7 | 6.7 | 91.7 | 91.7 | 15.64 | 3.55 |
| Northfield Bancorp, Inc. | NJ | NFBK | 5679 | 12.51 | 11.87 | 0.62 | 5.01 | 11.86 | 495.5 | 13.8 | 14.9 | 69.8 | 74.1 | 8.73 | 4.39 |
| NSTS Bancorp, Inc. | IL | NSTS | 276 | 28.20 | 28.20 | (0.29) | (1.04) | 11.90 | 58.1 | NM | NM | 80.1 | 80.1 | 22.59 | 0.00 |
| Ponce Financial Group, Inc. | NY | PDLB | 3154 | 16.52 | 16.52 | 0.57 | 3.42 | 14.87 | 337.8 | 20.7 | 21.2 | 120.5 | 120.5 | 12.18 | 0.00 |
| Provident Financial Holdings, Inc. | CA | PROV | 1246 | 10.32 | 10.32 | 0.50 | 4.79 | 15.51 | 102.7 | 16.7 | 16.6 | 79.4 | 79.4 | 8.19 | 3.61 |
| Provident Financial Services, Inc. | NJ | PFS | 24547 | 11.03 | 8.04 | 0.96 | 8.71 | 19.83 | 2590.3 | 11.2 | 8.9 | 95.7 | 135.7 | 10.55 | 4.84 |
| Riverview Bancorp, Inc. | WA | RVSB | 1517 | 10.68 | 9.05 | 0.34 | 3.22 | 4.93 | 106.0 | 20.5 | 21.7 | 63.8 | 76.7 | 6.82 | 1.58 |
| SR Bancorp, Inc. | NJ | SRBK | 1083 | 17.76 | 15.69 | 0.35 | 1.95 | 15.00 | 133.7 | 34.1 | 26.2 | 69.2 | 80.4 | 12.29 | 1.33 |
| Texas Community Bancshares, Inc. | TX | TCBS | 444 | 11.91 | 11.89 | 0.53 | 5.13 | 16.31 | 45.1 | 20.9 | 20.2 | 92.5 | 92.7 | 11.02 | 0.98 |

---

Feldman Financial Advisors, Inc.

**Exhibit III (continued)**

**Financial and Market Data for All Public Thrifts**

---

| | | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  |  |  | Total | Tang. |  |  | Closing | Total | Price/ | Price/ | Price/ | Price/ | Price/ |  |
|  |  |  | Total | Equity/ | Equity/ | LTM | LTM | Price | Market | LTM | Core | Book | Tang. | Total | Div. |
|  |  |  | Assets | Assets | Assets | ROA | ROE | 9/2/25 | Value | EPS | EPS | Value | Book | Assets | Yield |
| Company | State | Ticker | ($Mil.) | (%) | (%) | (%) | (%) | ($) | ($Mil.) | (x) | (x) | (%) | (%) | (%) | (%) |
| Timberland Bancorp, Inc. | WA | TSBK | 1957 | 13.11 | 12.42 | 1.40 | 10.91 | 33.45 | 264.2 | 9.8 | 9.8 | 102.6 | 109.2 | 13.46 | 3.11 |
| Triumph Financial, Inc. | TX | TFIN | 6495 | 14.05 | 8.27 | 0.23 | 1.51 | 60.85 | 1444.2 | NM | NM | 166.5 | 315.1 | 22.39 | 0.00 |
| TrustCo Bank Corp NY | NY | TRST | 6348 | 10.91 | 10.91 | 0.86 | 7.91 | 40.11 | 750.1 | 14.3 | 14.3 | 109.1 | 109.2 | 11.91 | 3.82 |
| Waterstone Financial, Inc. | WI | WSBF | 2257 | 15.13 | 15.11 | 0.93 | 6.06 | 14.81 | 281.4 | 13.0 | 13.1 | 81.4 | 81.6 | 12.32 | 4.00 |
| **Average** |  |  | **6306** | **14.15** | **13.50** | **0.48** | **3.06** | **NA** | **615.7** | **16.7** | **16.5** | **91.9** | **100.8** | **11.72** | **1.71** |
| **Median** |  |  | **1516** | **11.84** | **11.34** | **0.55** | **4.90** | **NA** | **156.3** | **16.0** | **15.9** | **84.4** | **85.9** | **11.10** | **0.93** |

---

(1) Public thrifts traded on NYSE, NYSE American, and NASDAQ stock markets; excludes companies subject to pending acquisitions or mutual holding company ownership.

Source: S&P Global.

Feldman Financial Advisors, Inc.

**Exhibit IV-1**

**Pro Forma Assumptions for the Stock Offering**

1. The total amount of the net offering proceeds
 was fully invested at the beginning of the applicable period.

2. The net offering proceeds are invested to
 yield a return of 3.79%, which represented the yield on five-year U.S. Treasury securities
 at June 30, 2025. The effective combined federal and state income tax rate was assumed
 to be 27.75%, resulting in a net after-tax yield of 2.74%.

3. It is assumed that 8.0% of the total shares
 of common stock to be issued in the Conversion will be acquired by the Association's
 employee stock ownership plan ("ESOP"). Pro forma adjustments have been made
 to earnings and equity to reflect the impact of the ESOP. The annual expense is estimated
 based on a 25-year loan to the ESOP from the Association. No re-investment is assumed on
 proceeds used to fund the ESOP.

4. It is assumed that the Association's
 restricted stock plan ("RSP") will purchase in the open market a number of shares
 equal to 4.0% of the total shares issued in the Conversion. Also, it is assumed that these
 shares are acquired at the initial public offering price of $10.00 per share. Pro forma adjustments
 have been made to earnings and equity to reflect the impact of the RSP. The annual expense
 is estimated based on a five-year vesting period. No re-investment is assumed on proceeds
 used to fund the RSP.

5. It is assumed that an additional 10.0% of
 the total shares sold in the Stock Offering will be reserved for issuance by the Association's
 stock option plan. The pro forma net income has been adjusted to reflect the expense associated
 with the granting of options at an assumed options value of $4.90 per option. It is further
 assumed that options for all shares reserved under the plan were granted to plan participants
 at the beginning of the period and 25.0% were non-qualified options for income tax purposes,
 the options would vest at a rate of 20.0% per year, and compensation expense will be recognized
 on a straight-line basis over the five-year vesting period

6. The fair value of stock options has been estimated
 at $4.90 per option using the Black-Scholes option pricing model with the following assumptions:
 a grant-date share price and option exercise price of $10.00; dividend yield of 0.00%; an
 expected option life of 10 years; a risk-free interest rate of 4.24%; and a volatility rate
 of 28.65% based a selected bank stock index.

7. Total offering expenses are estimated at $2.0
 million.

8. No effect has been given to withdrawals from
 deposit accounts for the purpose of purchasing common stock in the Stock Offering.

9. No effect has been given in the pro forma
 equity calculation for the assumed earnings on the net proceeds.

Feldman Financial Advisors, Inc.

**Exhibit IV-2**

**Pioneer Federal Savings and Loan Association**

**Pro Forma Conversion Valuation Range**

Historical Financial Data as of June 30, 2025

(Dollars in Thousands, Except Per Share Data)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | ***MINIMUM*** | **** | ***MIDPOINT*** | ***MAXIMUM*** | ***ADJ. MAX.*** |
| Shares sold in the offering | 1020000 |  | 1200000 | 1380000 | 1587000 |
| Offering price | $10.00 |  | $10.00 | $10.00 | $10.00 |
| **Gross offering proceeds** | $**10200** |  | $**12000** | $**13800** | $**15870** |
| Less: estimated offering expenses | (2000 |  | (2000 | (2000 | (2000 |
| &nbsp;&nbsp;&nbsp;Net offering proceeds | 8200 |  | 10000 | 11800 | 13870 |
| Less: ESOP purchase | (816) |  | (960) | (1104) | (1270) |
| Less: RSP purchase | (408 |  | (480 | (552 | (635 |
| &nbsp;&nbsp;&nbsp;Net investable proceeds | $6976 |  | $8560 | $10144 | $11965 |
| **Net income - LTM ended 6/30/25** | $145 |  | $145 | $145 | $145 |
| &nbsp;&nbsp;&nbsp;Pro forma income on net proceeds | 191 |  | 234 | 278 | 328 |
| &nbsp;&nbsp;&nbsp;Pro forma ESOP adjustment | (24) |  | (28) | (32) | (37) |
| &nbsp;&nbsp;&nbsp;Pro forma RSP adjustment | (59) |  | (69) | (80) | (92) |
| &nbsp;&nbsp;&nbsp;Pro forma option adjustment | (93 |  | (109 | (126 | (145 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pro forma net income | $160 |  | $173 | $185 | $199 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pro forma earnings per share | $0.17 |  | $0.16 | $0.15 | $0.14 |
| **Core earnings - LTM ended 6/30/25** | $216 |  | $216 | $216 | $216 |
| &nbsp;&nbsp;&nbsp;Pro forma income on net proceeds | 191 |  | 234 | 278 | 328 |
| &nbsp;&nbsp;&nbsp;Pro forma ESOP adjustment | (24) |  | (28) | (32) | (37) |
| &nbsp;&nbsp;&nbsp;Pro forma RSP adjustment | (59) |  | (69) | (80) | (92) |
| &nbsp;&nbsp;&nbsp;Pro forma option adjustment | (93 |  | (109 | (126 | (145 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pro forma core earnings | $231 |  | $244 | $256 | $270 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pro forma core earnings per share | $0.25 |  | $0.22 | $0.20 | $0.18 |
| **Total equity - 6/30/25** | $18428 |  | $18428 | $18428 | $18428 |
| &nbsp;&nbsp;&nbsp;Net offering proceeds | 8200 |  | 10000 | 11800 | 13870 |
| &nbsp;&nbsp;&nbsp;Less: ESOP purchase | (816) |  | (960) | (1104) | (1270) |
| &nbsp;&nbsp;&nbsp;Less: RSP purchase | (408 |  | (480 | (552 | (635 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pro forma total equity | $25404 |  | $26988 | $28572 | $30393 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pro forma book value | $24.91 |  | $22.49 | $20.70 | $19.15 |
| **Total assets - 6/30/25** | $113259 |  | $113259 | $113259 | $113259 |
| &nbsp;&nbsp;&nbsp;Net offering proceeds | 8200 |  | 10000 | 11800 | 13870 |
| &nbsp;&nbsp;&nbsp;Less: ESOP purchase | (816) |  | (960) | (1104) | (1270) |
| &nbsp;&nbsp;&nbsp;Less: RSP purchase | (408 |  | (480 | (552 | (635 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pro forma total assets | $120235 |  | $121819 | $123403 | $125224 |
| **Pro Forma Ratios:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Price / LTM EPS | 58.82 |  | 62.50 | 66.67 | 71.43 |
| &nbsp;&nbsp;&nbsp;Price / Core EPS | 40.00 |  | 45.45 | 50.00 | 55.56 |
| &nbsp;&nbsp;&nbsp;Price / Book Value | 40.14 |  | 44.46 | 48.31 | 52.22 |
| &nbsp;&nbsp;&nbsp;Price / Tangible Book Value | 40.14 |  | 44.46 | 48.31 | 52.22 |
| &nbsp;&nbsp;&nbsp;Price / Total Assets | 8.48 |  | 9.85 | 11.18 | 12.67 |
| &nbsp;&nbsp;&nbsp;Total Equity / Assets | 21.13 |  | 22.15 | 23.15 | 24.27 |
| &nbsp;&nbsp;&nbsp;Tangible Equity / Assets | 21.13 |  | 22.15 | 23.15 | 24.27 |

---

Feldman Financial Advisors, Inc.

**Exhibit IV-3**

**Pro Forma Conversion Analysis at the Midpoint Value**

**Pioneer Federal Savings and Loan Association**

Historical Financial Data as of June 30, 2025

---

| | | | |
|:---|:---|:---|:---|
| **Valuation Parameters** | **Symbol** | **Data** |  |
| Net income -- LTM | Y | $145000 |  |
| Core earnings -- LTM | Y | 216000 |  |
| Net worth | B | 18428000 |  |
| Tangible net worth | B | 18428000 |  |
| Total assets | A | 113259000 |  |
| Expenses in conversion | X | 2000000 |  |
| Other proceeds not reinvested | O | 1440000 |  |
| ESOP purchase | E | 960000 |  |
| ESOP expense (pre-tax) | F | 38754 |  |
| RSP purchase | M | 480000 |  |
| RSP expense (pre-tax) | N | 95502 |  |
| Stock option expense (pre-tax) | Q | 117600 |  |
| Option expense tax-deductible | D | 25.00 | % |
| Re-investment rate (after-tax) | R | 2.74 | % |
| Tax rate | T | 27.75 | % |
| Shares for EPS | S | 92.32 | % |
| **<u>Pro Forma Valuation Ratios at Midpoint Value</u>** |  |  |  |
| Price / LTM EPS | P/E | 62.50 | x |
| Price / Core EPS | P/E | 45.45 | x |
| Price / Book Value | P/B | 44.46 | % |
| Price / Tangible Book | P/TB | 44.46 | % |
| Price / Assets | P/A | 9.85 | % |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| **<u>Pro Forma Calculation at Midpoint Value</u>** | **<u>Pro Forma Calculation at Midpoint Value</u>** | **<u>Pro Forma Calculation at Midpoint Value</u>** |  | &nbsp;&nbsp;&nbsp;<u>Based on</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;V | = | (**P/E** / S)\*((Y-R\*(O+X)-(F+N)\*(1-T)-(Q-Q\*D\*T))) | $12000000 | [LTM earnings] |
|  |  | 1 - (**P/E** / S) \* R |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;V | = | (**P/E** / S)\*((Y-R\*(O+X)-(F+N)\*(1-T)-(Q-Q\*D\*T)) | $12000000 | [Core earnings] |
|  |  | 1 - (**P/E** / S) \* R |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;V | = | **P/B** \* (B - X - E - M) | $12000000 | [Book value] |
|  |  | 1 - **P/B** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;V | = | **P/TB** \* (B - X - E - M) | $12000000 | [Tangible book] |
|  |  | 1 - **P/TB** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;V | = | **P/A** \* (A - X - E - M) | $12000000 | [Total assets] |
|  |  | 1 - **P/A** |  |  |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **<u>Valuation Range</u>** | **<u>Valuation Range</u>** | **<u>Valuation Range</u>** |  |  |  |
| Minimum | = | $12000000 | &nbsp;&nbsp;&nbsp;x | 0.85 | $10200000 |
| Midpoint | = | $12000000 | &nbsp;&nbsp;&nbsp;x | 1 | $12000000 |
| Maximum | = | $12000000 | &nbsp;&nbsp;&nbsp;x | 1.15 | $13800000 |
| Adj. Max. | = | $13800000 | &nbsp;&nbsp;&nbsp;x | 1.15 | $15870000 |

---

Feldman Financial Advisors, Inc.

**Exhibit IV-4**

**Comparative Valuation Ratio Analysis**

**Pro Forma Conversion Valuation**

Computed from Market Price Data as of September 2, 2025

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  |  | Pioneer | Comparative | Comparative | All Public | All Public |
| Valuation |  | Federal | Group | Group | Thrifts (1) | Thrifts (1) |
| Ratio | Symbol | S&LA | Average | Median | Average | Median |
| **Price / LTM EPS** | P/E |  | **17.88** | **17.37** | **16.75** | **16.05** |
| Minimum | (x) | **58.82** | 229.1% | 238.6% | 251.2% | 266.6% |
| Midpoint |  | **62.50** | 249.6% | 259.7% | 273.2% | 289.5% |
| Maximum |  | **66.67** | 272.9% | 283.7% | 298.1% | 315.4% |
| Adjusted Maximum |  | **71.43** | 299.6% | 311.1% | 326.5% | 345.1% |
| **Price / Core EPS** | P/E |  | **17.10** | **16.44** | **16.50** | **15.91** |
| Minimum | (x) | **40.00** | 133.9% | 143.4% | 142.4% | 151.5% |
| Midpoint |  | **45.45** | 165.8% | 176.5% | 175.4% | 185.7% |
| Maximum |  | **50.00** | 192.4% | 204.2% | 203.0% | 214.3% |
| Adjusted Maximum |  | **55.56** | 224.9% | 238.0% | 236.7% | 249.3% |
| **Price / Book Value** | P/B |  | **82.30** | **83.67** | **91.92** | **84.37** |
| Minimum | (%) | **40.14** | -51.2% | -52.0% | -56.3% | -52.4% |
| Midpoint |  | **44.46** | -46.0% | -46.9% | -51.6% | -47.3% |
| Maximum |  | **48.31** | -41.3% | -42.3% | -47.4% | -42.7% |
| Adjusted Maximum |  | **52.22** | -36.5% | -37.6% | -43.2% | -38.1% |
| **Price / Tangible Book** | P/TB |  | **85.37** | **84.84** | **100.75** | **85.86** |
| Minimum | (%) | **40.14** | -53.0% | -52.7% | -60.2% | -53.2% |
| Midpoint |  | **44.46** | -47.9% | -47.6% | -55.9% | -48.2% |
| Maximum |  | **48.31** | -43.4% | -43.1% | -52.1% | -43.7% |
| Adjusted Maximum |  | **52.22** | -38.8% | -38.5% | -48.2% | -39.2% |
| **Price / Total Assets** | P/A |  | **14.01** | **13.31** | **11.72** | **11.10** |
| Minimum | (%) | **8.48** | -39.4% | -36.2% | -27.6% | -23.6% |
| Midpoint |  | **9.85** | -29.7% | -26.0% | -16.0% | -11.2% |
| Maximum |  | **11.18** | -20.2% | -16.0% | -4.6% | 0.8% |
| Adjusted Maximum |  | **12.67** | -9.5% | -4.8% | 8.1% | 14.2% |

---

(1) Excludes companies subject to mutual holding company ownership or pending acquisition.

## Ex-Filing

?xml version='1.0' encoding='ASCII'? EX-FILING FEES

---

| |
|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Calculation of Filing Fee Tables**  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **S-1**  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **PSB Financial, Inc.**  |

---

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Security Type**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Security Class Title**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Fee Calculation or Carry Forward Rule**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Amount Registered**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Proposed Maximum Offering Price Per Unit**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Maximum Aggregate Offering Price**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Fee Rate**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Amount of Registration Fee**  |
| **Newly Registered Securities** | **Newly Registered Securities** | **Newly Registered Securities** | **Newly Registered Securities** | **Newly Registered Securities** | **Newly Registered Securities** | **Newly Registered Securities** | **Newly Registered Securities** | **Newly Registered Securities** | **Newly Registered Securities** |
| Fees to be Paid | 1 | Equity | Common stock, par value $0.01 per share | 457(a) | 1587000 | $10.00 | $15870000.00 | 0.0001531 | $2429.70 |
| Fees Previously Paid |  |  |  |  |  |  |  |  |  |
| **Carry Forward Securities** | **Carry Forward Securities** | **Carry Forward Securities** | **Carry Forward Securities** | **Carry Forward Securities** | **Carry Forward Securities** | **Carry Forward Securities** | **Carry Forward Securities** | **Carry Forward Securities** | **Carry Forward Securities** |
| Carry Forward Securities |  |  |  |  |  |  |  |  |  |
|  |  |  | Total Offering Amounts: | Total Offering Amounts: | Total Offering Amounts: |  | $15870000.00  |  | $2429.70  |
|  |  |  | Total Fees Previously Paid:  | Total Fees Previously Paid:  | Total Fees Previously Paid:  |  |  |  | $0.00  |
|  |  |  | Total Fee Offsets:  | Total Fee Offsets:  | Total Fee Offsets:  |  |  |  | $0.00  |
|  |  |  | Net Fee Due:  | Net Fee Due:  | Net Fee Due:  |  |  |  | $2429.70  |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Offering Note** <br>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <sup>1</sup> Estimated solely for the purpose of calculating the registration fee in accordance with Rule 457(a) under the Securities Act of 1933, as amended. <br>

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| | |
|:---|:---|
| | |
| **Rules 457(b) and 0-11(a)(2)** | **Rules 457(b) and 0-11(a)(2)** |
| Fee Offset Claims | N/A |
| Fee Offset Sources | N/A |
| **Rule 457(p)** | **Rule 457(p)** |
| Fee Offset Claims | N/A |
| Fee Offset Sources | N/A |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Security Type**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Security Class Title**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Amount of Securities Previously Registered**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Maximum Aggregate Offering Price of Securities Previously Registered**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Form Type**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **File Number**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Initial Effective Date**  |
| N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |

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