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Growth defines PremierWest Bancorp By GREG STILES Mail Tribune PremierWest Bancorp grew in several ways during fiscal 2001. The Medford-based financial institution has grown rapidly since the Bank of Southern Oregon and Douglas National Bank merged in February 2000. The bank's assets grew 42 percent to $488.7 million, its loans rose 51.6 percent to $353 million and its deposits jumped 42 percent to $430.2 million. The firm centralized its administrative operations, while adding 13 financial offices, bringing the total to 29. Despite the acquisition of Timberline Community Bank in Northern California and opening two branches in Grants Pass, the bank's net income rose 13.1 percent to $2.04 million. Moreover, the bank has aggressively loaned money, lending 85 cents for every dollar on deposit. "We want to put money back into the community," PremierWest's Chief Executive Officer and President John Anhorn said Wednesday. "We could buy treasuries, but we want to build local economies." Because PremierWest doesn't borrow from the Federal Reserve, it didn't gain the advantage of the lower rates larger banks did. Consolidating administrative functions into its Airport Road office, including a 10,000 square-foot addition, resulted in one-time charges of more than $400,000. The start-up cost for the Grants Pass branches was $220,000. The bank's non-performing assets, defined as loans that are 90 days past due, shrank to 1.95 percent from 2.82 percent last year. Nonetheless, the bank has set aside $1.163 million (up 73.8 percent) for bad loans. The allowance for loan losses was increased $510,000 in the fourth quarter. The bank charged-off $1.1 million for bad loans in the fourth quarter of 2001. However it will continue its collection efforts. PremierWest Executive Vice President and Chief Operating Officer Richard Hieb said the area's diversified employment has produced a good base for expansion. "We haven't seen a lot of construction people crying wolf," he said. The bank recently received a four-star rating from Baurer Financial Reports. Reach reporter Greg Stiles at 776-4463 or e-mail [email protected] . Mail Tribune Home | Ottaway Newspapers, Inc. | Dow Jones & Co., Inc. | Privacy | Contact Us Copyright � 2001 Mail Tribune, Inc.