Item 8.01 Other Events.

On July 20, 2012, Pioneer Bankshares, Inc. (the "Company") executed a stock repurchase transaction with its principal shareholder, Mr. Richard T. Spurzem, for 89,220 shares of Common Stock of the Company at a per share price of $19.95, for an aggregate purchase price of $1,779,939. This transaction was executed pursuant to previously disclosed Stock Purchase Agreements, as reported on Form 8-K and filed with the Securities and Exchange Commission on July 2, 2012.

The Company further expects to execute a stock repurchase transaction for the remaining 1,400 shares of Common Stock beneficially owned by Mr. Spurzem. This additional stock repurchase transaction is anticipated to be completed within the next few weeks, pursuant to the previously disclosed Stock Purchase Agreements.

It is the Company's intent to retire all such shares obtained in conjunction with these repurchase transactions.

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