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.

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