With its bank unit low on capital, PremierWest Bancorp in Medford, Ore., is planning to raise up to $36 million in a rights offering.
The $1.7 billion-asset company has filed a shelf registration that would give stockholders nontransferable subscription rights to buy newly issued shares. If all of the rights are not exercised, the company would then turn to institutional and high-net-worth investors.
The company said that the proceeds would be used to add capital at its PremierWest Bank, which fell to adequately capitalized in the third quarter, with a total risk-based capital ratio of 9.72%.
The company's stock has dropped 17% since it first disclosed its capital plans in a Securities and Exchange Commission filing Wednesday, to close at $1.49 on Friday.