Federal regulators have given PremierWest Bancorp in Medford, Ore., 60 days to come up with a capital plan even though the company raised capital in the first quarter.

The Federal Reserve on Wednesday released a written agreement between it and the $1.5 billion-asset company, which has been dealing with problem assets.

At the end of the first quarter PremierWest's nonperforming assets made up 8.37% of its total assets.

Besides the capital plan, the agreement calls for the company to serve as a source of strength for its bank and prevents it from paying out dividends.

PremierWest's bank unit is also operating under a regulatory order that calls for it to increase its leverage ratio to 10% by Oct. 2.

At the end of the first quarter that ratio was 8.21% after a $33 million capital-raising effort.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.