PremierWest Bancorp of Medford, Ore., announced Tuesday that it has agreed to buy Timberline Bancshares Inc. of Yreka, Calif., for $14 million.
Timberline shareholders would receive $13.50 for each share, either in cash or in shares of PremierWest stock.
The deal is expected to close in the first quarter. PremierWest is the $331 million-asset parent company of PremierWest Bank, which serves the Southern Oregon region along the Interstate 5 corridor.
Timberline, with $97 million of assets, is the holding company for Timberline Community Bank, which operates eight branches in Siskiyou County, Calif.
