Pioneer Federal Savings and Loan Association in Deer Lodge, Mont., is planning to convert from a mutual to a stock holding company.
The $120 million-asset bank said in a regulatory filing that PSB Financial, a newly formed holding company, plans to sell 1.1 million to 1.7 million shares of common stock for net proceeds of $9.5 million to $15.6 million.
Proceeds would be used to strengthen PSB Financial’s capital base by retaining up to half of net proceeds, while investing $4.7 million to $7.8 million into the newly formed Pioneer State Bank. Proceeds could also be used to fund the ESOP,​ pay future dividends and enhance the investment portfolio, among other things.