Exhibit 99
PREMIERWEST BANCORP AND TIMBERLINE BANCSHARES
ANNOUNCE MERGER
MEDFORD, Oregon - PremierWest Bancorp (OTCBB: "PRWT") and Timberline
Bancshares, Inc. (OTCBB: "TBLS"), the holding company for Timberline Community
Bank, today announced that they had entered into a definitive agreement for
the acquisition of Timberline Bancshares, Inc. by PremierWest Bancorp and the
merger of Timberline Community Bank into PremierWest Bank, PremierWest
Bancorp's banking subsidiary.
Under this transaction, Timberline Bancshares shareholders will receive
$13.50 for each Timberline Bancshares share held, payable at the election of
Timberline Bancshares' shareholders in cash, or in shares of PremierWest
Bancorp stock, or a combination of cash and shares of PremierWest Bancorp
stock under certain terms and limitations set forth in the agreement.
John Anhorn, Chief Executive Officer of PremierWest Bancorp, stated: "The
acquisition is a major step in our growth strategy along the I-5 corridor by
extending our market presence into northern California. Timberline Community
Bank is a great fit for our bank. It's employees provide the same attention
and service to their customers as we provide to ours. We expect the
integration to go smoothly and be accretive to earnings in 2001."
Robert Youngs, Chairman and CEO of Timberline Bancshares, stated:
"PremierWest offered a proposal which we think is in the best interests of
both our shareholders and our customers. We have watched the progress and
performance of PremierWest and are pleased to join their fine organization.
The merger will give increased value to our shareholders and our customers
will receive new products and services. We view this as a win for all
parties."
The merger is expected to close in the first quarter of 2001 following
shareholder and regulatory approvals. The combined organization will have
assets of over $425 million and 20 branch offices located in Southern Oregon
and Northern California.
PremierWest Bancorp, headquartered in Medford, is the parent company of
PremierWest Bank. At September 30, 2000, PremierWest Bancorp had consolidated
assets of $331 million and deposits of $276 million.
Timberline Bancshares and its banking subsidiary Timberline Community
Bank, headquartered in Yreka, California had assets of $96.8 million and
deposits of $87.5 at September 30, 2000. Timberline Community Bank was founded
in 1979 and operates eight branches in Siskiyou County, California.
This press release includes forward looking statements, which management
believes are a benefit to shareholders. These statements are necessarily
subject to risk and uncertainty and actual results could differ materially due
to certain risk factors, including without limitation, economic conditions,
the timing and receipt of regulatory and shareholder approvals, acquisition
risk factors including costs of integration and anticipated savings, as well
as others set forth from time to time in PremierWest Bancorp's filings with
the SEC.
