PremierWest Bancorp in Medford, Ore., has succeeded in recapitalizing its bank, though a fresh regulatory order has pushed back the target.
The $1.56 billion-asset company announced late Wednesday that it raised $14.6 million in capital in the public stock offering it commenced last month. The public offering followed it raising $18.7 million in a rights offering to its existing shareholders that closed in early March. In total, PremierWest raised $33.3 million.
Although the combined capital-raising efforts were $2.7 million short of the goal, the additional equity boosted the bank's capital ratios from adequately capitalized at the end of the fourth quarter to above the threshold for well-capitalized institutions. PremierWest reported that its bank unit's leverage ratio was 8.36% and its total risk-based capital ratio was 11.17% at the end of the quarter.
PremierWest also announced that its bank unit finalized its consent order with Federal Deposit Insurance Corp. and the Oregon Division of Finance and Corporate Securities. The order requires the bank to boost its leverage ratio to 10% within 180 days.