Strong loan and deposit growth helped PremierWest Bancorp in Medford, Ore., earn $2.6 million in the first quarter, 44% more than a year earlier.
The $836 million-asset company, which operates in southern Oregon and northern California, said in a news release Tuesday that loans outstanding rose 25%, to $731 million, and that net interest income rose nearly 28%, to $10.2 million. The net interest margin rose 46 basis points, to 5.61%.
A 17% increase in deposits, to $718 million, was attributed in part to free checking and online bill paying services introduced last year.
PremierWest had estimated that 2005 earnings would rise 15%-25%. Tom Anderson, its chief financial officer, said that given the first quarter’s showing, “we would expect the increase in full-year earnings will be at the higher end of our guidance.”
