Pioneer Community Bank: Overview of the bank

Founded in 1931, Pioneer Community Bank is a relatively small bank. The company’s main office is located in the city of Iaeger in the state of West Virginia. There are a total of 46 banks operating in the state of West Virginia and combined these banks have $41,173 million of assets. Pioneer Community Bank has been operating for 91 years. The Federal Deposit Insurance Corporation has provided insurance to the bank since 1934. The FDIC is one of two governmental agencies that provides deposit insurance to American depository institutions – the other is the National Credit Union Administration (NCUA). The FDIC’s mandate is mainly to insure deposits, but the agency also examines and supervises financial institutions and manages receiverships. In addition, the FDIC is the primary federal regulator for the bank and is focused on supervising and examining the bank for operational safety and soundness. Mainly because of its relative size, geographic reach and presence, the bank is considered to be a community bank, instead of a national bank. Based on our estimates, we believe its asset base of $145 million ranks it in the 30th percentile of banks in the United States. Pioneer Community Bank is essentially a purely domestic bank from an operational standpoint. This is because the bank does not have offices outside of the United States. Within the U.S. the bank currently has 5 offices, all of which are located in the state of West Virginia. Finally, the bank currently has a total employee base of 41 people.

Overview of the Bank’s Assets and Liabilities

As previously indicated, the bank currently has total assets of $145 million, which makes it a relatively small bank in the United States. The bank also has net loans outstanding to customers of $99 million and a deposit base of $125 million. Domestic deposits currently represent (in terms of total size), 87% of the bank’s total assets, and 100% of the bank’s total deposits outstanding. Within these deposits 94% are insured based on the latest available information. Moving on to the components of the bank’s assets we can see that loans provided to customers represent 69% of the banks total assets. Of this amount, loans related to real estate activities comprised 62% of gross loans outstanding. Pioneer Community Bank has $55 million of outstanding 1-4 family residential loans (mortgages), which in total represents 54% of its loans outstanding. Loans to individuals and loans to commercial and industrial interests represent 4% and 33% of loans outstanding, respectively. Auto loans represents 2% of loans outstanding.

Contact Information For Pioneer Community Bank

  • Main Office Address: 5229 Coal Heritage Rd., Iaeger, WV 24844
  • Website:
  • Total Number of Branches: 5
  • Total Number of International Branches: None
  • Number of Employees: 41
  • FDIC Certificate Number: 2448
  • FDIC Community Bank: Yes
  • FDIC Field Office: Scott Depot
  • Independent or Subsidiary Bank: Independent
  • Federal Reserve ID Number: 294827
  • Bank Charter Class: NM
  • Primary Regulator: FDIC

Financial Overview

pioneer community bank-financial-metrics-dec-21

The bank had total assets of $145 million based on the latest available information. Its total assets have increased substantially over the past year, with an increase of 7.8%. In terms of the bank’s lending activities, net loans represented 68.5% of its total assets, and stood at $99 million. The bank’s loan portfolio has increased substantially over the past year, with an increase of 11.0%. Taking a closer look at the bank’s loan portfolio, we see that residential mortgages, which make up the majority of the bank’s lending activities comprise 54% of the bank’s loan book. The bank has $55 million of residential mortgages outstanding, which compares with $57 million in the prior year. This implies a decrease of 3.6% over the past year. In addition, the bank provides loans to commercial and industrial businesses, which represents 33.3% of its total lending and stood at $33 million based on the latest available information. Finally, the bank also engages in the provision of auto loans. These are loans provided to customers to help finance vehicle purchases. Auto loans represent 2.1% of the bank’s total lending.

Bank Liquidity and Funding

Liquidity and funding are two important considerations when evaluating a bank. It gives us a sense of how a bank finances its activities and can help both depositors and customers better understand a banks financial positioning. Oftentimes one of the cheapest forms of funding is customer deposits. Pioneer Community Bank has total customer deposits outstanding of $125 million. The bank’s deposit base has increased substantially over the past year, growing 8.1%. In addition, the bank has a loan to deposit ratio of 79%, which is below the average of banks in the United States. The average in the United States is approximately 82% and as a reminder, a lower ratio indicates greater liquidity. The entirety of the bank’s deposit base stems from domestic depositors.


Bank Performance and Capital Metrics

pioneer community bank-performance-metrics-dec-21

The above chart provides a brief summary of some of the key performance metrics for Pioneer Community Bank. Next to these metrics are the equivalent for the average U.S. bank. Starting with its return on assets, over the past year it has improved. Importantly, on this metric we can also see that the bank is above the average bank. Return on assets tells us how productive a bank is being with its asset base. Next, looking at the bank’s return on equity, which tells us how much of a return the bank has generated for its owners, over the past year it has improved. In addition, we can also see that the bank is below the average bank on this metric. The bank’s total leverage ratio has been relatively stable over the past year and is currently above the national average. Finally, we could not find Pioneer Community Bank’s risk-weighted asset information for this period and therefore had to make some assumptions and estimates. We estimate that the bank had a tier 1 capital ratio of 20.2% which is above the average U.S. bank.

Final Thoughts: Pioneer Community Bank

Ultimately, after considering all of the relevant factors we rate Pioneer Community Bank 3.5 out of 5.0, which is very good. Specifically, an area of strength for the bank would be its cost of funds which is above the national average. On the contrary, the bank’s return on assets is one of the primary drawbacks on its rating as on this metric, the bank is below average. Importantly, please be aware that none of the information presented is meant to be investment advice or advice of any form. All of the information and views expressed in this note and on this site are purely for informational purposes.