U.S. SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C.  20549

FORM 10-Q

| | [X] | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 2001
| | --- | ------------------------------------------------------------------------------------------------------------------------------------
| | [_] | TRANSITION REPORT UNDER SECTION 13 or 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from _____ to _____    

Commission File Number 333-96209

PREMIERWEST BANCORP
(Exact name of registrant as specified in its charter)

|Oregon
(State or other jurisdiction of incorporation or organization) | 93-1282171
(I.R.S. Employer Identification No.)
|--------------------------------------------------------------------- | -----------------------------------------------

503 Airport Road
P.O. Box 40
Medford, Oregon  97504
(Address of principal executive offices) (Zip code)

(541) 618-6003
(Registrant's telephone number, including area code)

Indicate by check mark
whether the registrant (1) has filed all reports required to be filed by Section
13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12
months (or for such shorter period that the registrant was required to file such
reports), and (2) has been subject to such filing requirements for the past 90
days.
Yes  [X]        No  [_]

Indicate the number of shares  outstanding  of each of the  issuer's  classes of
common stock, as of latest  practicable  date:  10,854,732 shares as of July 31,
2001.

1

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Disclosure Regarding Forward-Looking Statements

This report includes
forward-looking statements within the meaning of the safe-harbor
provisions of the Private Securities Litigation Reform Act of 1995. Such
forward-looking statements are based on the beliefs of the Companys
management and on assumptions made by and information currently available to
management. All statements other than statements of historical fact, regarding
the Companys financial position, business strategy and plans and
objectives of management for future operations of the Company are
forward-looking statements. When used herein, the words anticipate,
believe, estimate, expect, and
intend and words or phrases of similar meaning, as they relate to
the Company or management, are intended to identify forward-looking statements.
Examples of forward-looking statements include, but are not limited to (i)
projections of revenues, income or expenses, earnings per share, capital
expenditures, dividends, capital structure and other financial items, (ii)
statements of the plans and objectives of the Company or its management, or
Board of Directors, including the introduction of new products or services,
plans for expansion, acquisitions or future growth, or estimates or predictions
of actions by customers, vendors, competitors or regulatory authorities, (iii)
statements of future economic performance, and (iv) statements of assumptions
underlying other statements about the Company and its business. Although the
Company believes that the expectations reflected in such forward-looking
statements are reasonable, it can give no assurance that such expectations will
prove to have been correct. Forward-looking statements are subject to certain
risks and uncertainties, which could cause actual results to differ materially
from those indicated by the forward-looking statements. These risks and
uncertainties include the Companys ability to maintain or expand its
market share, net interest margins, or implement its marketing and growth
strategies. Further, actual results may be affected by the Companys
ability to compete on price and other factors with other financial institutions;
customer acceptance of new products and services; general trends in the banking
industry and the regulatory environment, as they relate to the Companys
cost of funds and returns on assets. In addition, there are risks inherent in
the banking industry relating to collectibility of loans and changes in interest
rates. The reader is advised that this list of risks is not exhaustive and
should not be construed as any prediction by the Company as to which risks would
cause actual results to differ materially from those indicated by the
forward-looking statements.

2

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FORM 10-Q
TABLE OF CONTENTS

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|PART I.    | FINANCIAL INFORMATION                                                               
|---------- | ------------------------------------------------------------------------------------
|Item 1.    | Condensed Consolidated Financial Statements                                         
|Item 2.    | Management's Discussion and Analysis of Financial Condition and Results of Operation
|PART II    | OTHER INFORMATION                                                                   
|Item 1.    | Legal Proceedings                                                                   
|Item 4.    | Submission of Matters to a Vote of Securities Holders                               
|Item 6.    | Exhibits and Reports on Form 8-K                                                    
|Signatures | 17                                                                                  

3

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PART I.     FINANCIAL INFORMATION
ITEM 1.     CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

PREMIERWEST BANCORP AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in 000's)
(UNAUDITED)

|                                                                                                                                                                  | June 30, 2001        |   | December 31, 2000    |  
|----------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------- | - | -------------------- | -
|ASSETS                                                                                                                                                            |                      |   |                      |  
|CASH AND DUE FROM BANKS                                                                                                                                           | $    17,115          |   | $    14,306          |  
|FEDERAL FUNDS SOLD AND INTEREST-BEARING DEPOSITS                                                                                                                  | 25,562               |   | 3,730                |  
|Total cash and cash equivalents                                                                                                                                   | 42,677               |   | 18,036               |  
|INVESTMENT SECURITIES AVAILABLE-FOR-SALE                                                                                                                          | 69,138               |   | 73,634               |  
|LOANS, NET OF ALLOWANCE FOR LOAN LOSSES                                                                                                                           | 321,070              |   | 232,910              |  
|FEDERAL HOME LOAN BANK STOCK                                                                                                                                      | 1,540                |   | 1,490                |  
|PREMISES AND EQUIPMENT, NET                                                                                                                                       | 15,372               |   | 11,172               |  
|ACCRUED INTEREST AND OTHER ASSETS                                                                                                                                 | 16,288               |   | 7,004                |  
|TOTAL ASSETS                                                                                                                                                      | $  466,085
========= |   | $  344,246
========= |  
|LIABILITIES AND SHAREHOLDERS' EQUITY                                                                                                                              |                      |   |                      |  
|LIABILITIES:
    DEPOSITS:
        Non-interest-bearing checking                                                                                                  | $    76,536          |   | $    51,062          |  
|Savings and interest-bearing demand                                                                                                                               | 167,500              |   | 125,398              |  
|Time                                                                                                                                                              | 162,586              |   | 119,780              |  
|Total deposits                                                                                                                                                    | 406,622              |   | 296,240              |  
|FEDERAL HOME LOAN BANK BORROWINGS                                                                                                                                 | 5,885                |   | 6,672                |  
|REPURCHASE AGREEMENTS                                                                                                                                             | 7,743                |   | 6,162                |  
|EMPLOYEE STOCK OWNERSHIP PLAN NOTES PAYABLE                                                                                                                       | 272                  |   | 383                  |  
|Total borrowings                                                                                                                                                  | 13,900               |   | 13,217               |  
|OTHER LIABILITIES                                                                                                                                                 | 2,936                |   | 2,347                |  
|Total liabilities                                                                                                                                                 | 423,458              |   | 311,804              |  
|COMMITMENTS AND CONTINGENCIES
SHAREHOLDERS' EQUITY
    Preferred stock - no par value; 1,000,000 shares authorized; none issued                                   | --                   |   | --                   |  
|Common stock - no par value; 20,000,000 shares authorized;
      and 10,828,272 and 9,028,862 shares issued and outstanding 
      in 2001 and 2000, respectively | 29,391               |   | 18,679               |  
|Retained earnings                                                                                                                                                 | 13,218               |   | 14,514               |  
|Unearned Employee Stock Ownership Plan compensation                                                                                                               | (272                 | ) | (383                 | )
|Accumulated other comprehensive income (loss)                                                                                                                     | 290                  |   | (368                 | )
|Total shareholders' equity                                                                                                                                        | 42,627               |   | 32,442               | )
|TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY                                                                                                                        | $ 466,085
=========  |   | $  344,246
========= |  

See accompanying notes.

4

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PREMIERWEST BANCORP AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in 000's, Except for Earnings per Share Data)
(UNAUDITED)

|                                                         | FOR THE THREE MONTHS ENDED |                         | FOR THE SIX MONTHS ENDED
|-------------------------------------------------------- | -------------------------- | ----------------------- | ------------------------
|Interest income:
    Interest and fees on loans          | $    6,739                 | $    5,071              |                         
|Interest-earning deposits                                | 353                        | 390                     |                         
|Investment securities                                    | 1,008                      | 981                     |                         
|Total interest income                                    | 8,100                      | 6,442                   |                         
|Interest expense:
    Deposits                           | 3,513                      | 2,177                   |                         
|Other borrowings                                         | 126                        | 607                     |                         
|Total interest expense                                   | 3,639                      | 2,784                   |                         
|Net interest income                                      | 4,461                      | 3,658                   |                         
|Loan loss provision                                      | 193                        | 193                     |                         
|Net interest income after loan
           loss provision | 4,268                      | 3,465                   |                         
|Non-interest income                                      | 951                        | 594                     |                         
|Non-interest expense:
    Salaries and employee benefits | 2,476                      | 1,698                   |                         
|Professional fees                                        | 170                        | 122                     |                         
|Occupancy & equipment, net                               | 779                        | 509                     |                         
|Advertising                                              | 93                         | 140                     |                         
|Merger costs                                             | --                         | 883                     |                         
|Goodwill                                                 | 96                         | --                      |                         
|Other                                                    | 700                        | 750                     |                         
|Total non-interest expense                               | 4,314                      | 4,102                   |                         
|Income (loss) before income taxes                        | 905                        | (43                     | )                       
|Provision for income taxes                               | 305                        | 193                     |                         
|Net income (loss)                                        | $        600
========      | $        (236
========  | )                       
|Earnings (loss) per common share:
    Basic              | $        0.06
========     | $        (0.03
======== | )                       
|Diluted                                                  | $        0.06
========     | $        (0.03
======== | )                       

See accompanying notes.

5

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PREMIERWEST BANCORP AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
(Dollars in 000's)
(UNAUDITED)

|                                                                                                                                                                                                                                                           | Comprehensiveincome (loss) |   | Retainedearnings     |   | Unearned
ESOPcompensation |   | Accumulated
other
comprehensiveincome (loss) |   | Commonstock           | Total
shareholders'equity |  
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------- | - | -------------------- | - | ------------------------- | - | -------------------------------------------- | - | --------------------- | ------------------------- | -
|BALANCE - JANUARY 1, 2000                                                                                                                                                                                                                                  |                            |   | $    12,710          |   | $      (604               | ) | $    (1,800                                  | ) | $    17,918           | $    28,224               |  
|Comprehensive income:
    Net income                                                                                                                                                                                                                       | $      386                 |   | $      386           |   | --                        |   | --                                           |   | --                    | $      386                |  
|Net change in unrealized loss
    on investment securities
    available-for-sale,
    net of taxes                                                                                                                                                        | (63                        | ) | --                   |   | --                        |   | (63                                          | ) | --                    | (63                       | )
|Comprehensive income                                                                                                                                                                                                                                       | $      323
========        |   |                      |   |                           |   |                                              |   |                       |                           |  
|ESOP compensation expense                                                                                                                                                                                                                                  |                            |   | --                   |   | 111                       |   | --                                           |   | --                    | 111                       |  
|Stock options exercised                                                                                                                                                                                                                                    |                            |   | --                   |   | --                        |   | --                                           |   | 575                   | 575                       |  
|Tax benefit of stock options
    exercised                                                                                                                                                                                                                 |                            |   | --                   |   | --                        |   | --                                           |   | 29                    | 29                        |  
|BALANCE - JUNE 30, 2000                                                                                                                                                                                                                                    |                            |   | $    13,096
======== |   | $       (493
========     | ) | $     (1,863
========                        | ) | $     18,522
======== | $     29,262
========     |  
|BALANCE - JANUARY 1, 2001                                                                                                                                                                                                                                  |                            |   | $    14,514          |   | $      (383               | ) | $    (368                                    | ) | $    18,679           | $    32,442               |  
|Comprehensive income:
    Net income                                                                                                                                                                                                                       | $    1,250                 |   | $    1,250           |   | --                        |   | --                                           |   | --                    | $    1,250                |  
|Net change in unrealized gains
    on investment securities
    available-for-sale
    (net of taxes),
    net of reclassification
    adjustment for gains included
    in the statement of operations
    of approximately $23 (net of
    $12 in taxes) | 658                        |   | --                   |   | --                        |   | 658                                          |   | --                    | 658                       |  
|Comprehensive income                                                                                                                                                                                                                                       | $    1,908
========        |   |                      |   |                           |   |                                              |   |                       |                           |  
|Common stock issued to
    shareholders of Timberline
    Bancshares, Inc.                                                                                                                                                                                 |                            |   | --                   |   | --                        |   | --                                           |   | 7,995                 | 7,995                     |  
|Stock dividend paid (5%)                                                                                                                                                                                                                                   |                            |   | (2,546               | ) | --                        |   | --                                           |   | 2,546                 | --                        |  
|ESOP compensation expense                                                                                                                                                                                                                                  |                            |   | --                   |   | 111                       |   | --                                           |   | 34                    | 145                       |  
|Tax benefit of stock
    options exercised                                                                                                                                                                                                                 |                            |   | --                   |   | --                        |   | --                                           |   | 31                    | 31                        |  
|Stock options exercised                                                                                                                                                                                                                                    |                            |   | --                   |   | --                        |   | --                                           |   | 106                   | 106                       |  
|BALANCE - JUNE 30, 2001                                                                                                                                                                                                                                    |                            |   | $    13,218
======== |   | $      (272
========      | ) | $       290
========                         |   | $    29,391
========  | $    42,627
========      |  

See accompanying notes.

6

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PREMIERWEST BANCORP AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollars in 000's)
(UNAUDITED)

|                                                                                                                                 | FOR THE SIX MONTHS ENDED
|-------------------------------------------------------------------------------------------------------------------------------- | ------------------------
|                                                                                                                                 | June 30, 2001           
|CASH FLOWS FROM OPERATING ACTIVITIES:
  Net income                                                                               | $     1,250             
|Adjustments to reconcile net income to net cash provided (used)
    by operating activities:
      Depreciation and amortization | 661                     
|Goodwill and core deposit amortization                                                                                           | 96                      
|Amortization of premiums (accretion of discounts)
        on investment securities, net                                          | 25                      
|Deferred income taxes                                                                                                            | --                      
|Dividends on Federal Home Loan Bank stock                                                                                        | (50                     
|Net securities gains                                                                                                             | (35                     
|Loan loss provision                                                                                                              | 355                     
|Loss on sale of other real estate                                                                                                | 57                      
|Recognition of deferred compensation relating to ESOP                                                                            | 145                     
|Increase in accrued interest and other assets                                                                                    | (76                     
|(Decrease) increase in accrued interest and other liabilities                                                                    | (194                    
|Net cash provided (used) by operating activities                                                                                 | 2,234                   
|CASH FLOWS FROM INVESTING ACTIVITIES:
  Proceeds from sale of Federal Home Loan Bank
    and Federal Reserve Bank stock          | --                      
|Purchases of investment securities available-for-sale                                                                            | (19,867                 
|Proceeds from maturities and calls of investment
    securities available-for-sale                                               | 35,190                  
|Loan originations, net                                                                                                           | (32,125                 
|Proceeds from sale of property and equipment                                                                                     | 815                     
|Purchase of premises and equipment, net                                                                                          | (3,158                  
|Acquired net assets of Timberline, net of cash and cash
    equivalents acquired of $19,714                                      | 17,835                  
|Net cash used by investing activities                                                                                            | (1,310                  
|CASH FLOWS FROM FINANCING ACTIVITIES:
  Net increase in deposits                                                                 | 22,928                  
|Net borrowings from Federal Home Loan Bank
    and other borrowings                                                              | 683                     
|Proceeds from exercise of stock options                                                                                          | 106                     
|Net cash provided by financing activities                                                                                        | 23,717                  
|INCREASE IN CASH AND CASH EQUIVALENTS                                                                                            | 24,641                  
|CASH AND CASH EQUIVALENTS - Beginning of the period                                                                              | 18,036                  
|CASH AND CASH EQUIVALENTS - End of the period                                                                                    | $    42,677
=========   

See accompanying notes.

7

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PREMIERWEST BANCORP AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
June 30, 2001

1.          SUMMARY OF ORGANIZATION, BUSINESS AND SIGNIFICANT ACCOUNTING POLICIESOrganization and  merger:    PremierWest  Bancorp was  incorporated in the state of Oregon on November 26, 2000.  Effective on May
       8, 2000, in a reorganization and merger accounted for as a pooling-of-interests,  PremierWest Bancorp became the holding company
       for PremierWest Bank (formerly,  Bank of Southern Oregon);  United Bancorp (United) merged with and into PremierWest Bancorp and
       United's wholly owned  subsidiary,  Douglas National Bank,  merged with and into PremierWest Bank (the Bank). In connection with
       the merger,  PremierWest  Bancorp issued 3,910,016 shares of its common stock to United shareholders and 5,100,417 shares of its
       common stock to PremierWest Bank shareholders.

       On April 16, 2001,  the Company  completed the  acquisition  of  Timberline  Bancshares,  Inc. and its wholly owned  subsidiary,
       Timberline  Community  Bank  (Timberline).  The  acquisition  was  accounted  for  using  the  purchase  method  of  accounting.
       Accordingly,  the assets and liabilities of Timberline have been recorded by the Company at their  respective fair values at the
       time of the  completion of the merger and the results of Timberline  have been included with those of the Company since the date
       of the  acquisition.  The financial  statement data for the periods  presented are not comparable as a result of the acquisition
       of Timberline using the purchase method of accounting (see Note 8).

       PremierWest Bank, including its subsidiaries, serves Jackson, Josephine, Douglas, and Klamath counties of Southern Oregon.Basis of presentation:    The condensed  consolidated  financial  statements include the accounts of PremierWest  Bancorp and
       its wholly owned subsidiaries,  PremierWest Bank, PremierWest Investment Company and Premier Finance Company, hereafter referred
       to as the Company.  All significant intercompany accounts and transactions have been eliminated in consolidation.

       The interim condensed  consolidated  financial statements are not audited, but include all adjustments that management considers
       necessary  for a fair  presentation  of the  results  of  operations  for such  interim  periods.  In  preparing  the  condensed
       consolidated financial statements,  management is required to make estimates and assumptions that affect the reported amounts of
       assets and  liabilities  as of the date of the balance  sheets and income and  expenses for the periods.  Actual  results  could
       differ from those estimates.

       The  accompanying  condensed  consolidated  financial  statements  are  presented  as though  the  merger  with  United had been
       consummated  as of the  earliest  date  reported.  The  balance  sheet data as of  December 31,  2000 was derived  from  audited
       financial  statements  and does not include all  disclosures  contained in the 2000 Annual Report to  Shareholders.  The interim
       condensed  consolidated  financial  statements  should be read in  conjunction  with the Company's 2000  consolidated  financial
       statements,  including the notes  thereto,  included in the 2000 Annual Report to  Shareholders.  The reader should keep in mind
       that the results of operations for the interim periods shown in the accompanying  condensed  consolidated  financial  statements
       are not necessarily indicative of results for any future interim periods or the entire fiscal year.Method of  accounting:    The  Company  prepares its financial  statements  in conformity  with  accounting  principles  generally
       accepted in the United States.  The Company utilizes the accrual method of accounting,  which recognizes  income when earned and
       expenses when incurred.  The preparation of financial statements in conformity with accounting  principles generally accepted in
       the United  States  requires  management  to make  estimates  and  assumptions  that affect the  reported  amounts of assets and
       liabilities,  the  disclosure of contingent  assets and  liabilities at the date of the financial  statements,  and the reported
       amounts of income and expenses during the reporting period.  Actual results could differ from those estimates.Stock  dividend:    On  April 19, 2001, the Company  declared a 5% stock dividend  payable to its  shareholders  of record June 1,
       2001. All shares and per share data in the  accompanying  condensed  consolidated  financial  statement have been  retroactively
       restated to reflect the stock dividend.Reclassifications:    Certain amounts in 2000 have been reclassified to conform with the 2001 presentation.

8

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PREMIERWEST BANCORP AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
June 30, 2001

2.          INVESTMENT SECURITIES AVAILABLE-FOR-SALE

Investment securities available-for-sale at June 30, 2001 and December 31, 2000 consisted of the following:

|                                                                     | 2001                 
|-------------------------------------------------------------------- | ---------------------
|(Dollars in 000's)                                                   | Amortizedcost        
|U.S. agency securities                                               | $    23,155          
|Collateralized mortgage obligations
  and mortgage-backed securities | 21,778               
|Obligations of states and
  political subdivisions                   | 20,519               
|Corporate securities                                                 | 3,003                
|Equity securities                                                    | 283                  
|Total                                                                | $    68,738
=========
|                                                                     | 2000                 
|(Dollars in 000's)                                                   | Amortizedcost        
|U.S. agency securities                                               | $    41,531          
|Collateralized mortgage obligations
  and mortgage-backed securities | 17,198               
|Obligations of states and
  political subdivisions                   | 15,176               
|Equity securities                                                    | 326                  
|Total                                                                | $    74,231
=========

At June 30, 2001, approximately  $34 million in investment securities  available-for-sale were pledged to secure public deposits
and nonpublic deposits and borrowings.

3.          LOANS AND ALLOWANCE FOR LOAN LOSSES

The composition of the loan portfolio at June 30, 2001 and December 31, 2000 was as follows:

|(Dollars in 000's)         | 2001                 |   | 2000                 |  
|-------------------------- | -------------------- | - | -------------------- | -
|Commercial                 | $    76,494          |   | $    37,878          |  
|Real estate - construction | 56,355               |   | 48,039               |  
|Real estate - other        | 160,006              |   | 114,902              |  
|Consumer installment       | 30,751               |   | 30,675               |  
|Other                      | 2,623                |   | 5,478                |  
|                           | 326,227              |   | 236,972              |  
|Allowance for loan losses  | (4,466               | ) | (3,476)              | )
|Deferred loan fees         | (693                 | ) | (586                 | )
|Loans - net                | $  321,070
========= |   | $  232,910
========= |  

Impaired  loans, on which
the accrual of interest had been  discontinued,  were approximately $4.0 million
at June 30, 2001 and $4.8 million at December 31, 2000.9
PREMIERWEST BANCORP AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
June 30, 2001

A summary of changes in the  allowance  for loan losses for the six months ended
June 30, 2001 and 2000 were as follows:

|(Dollars in 000's)                                 | 2001                   |   | 2000                   |  
|-------------------------------------------------- | ---------------------- | - | ---------------------- | -
|Balance - Beginning of the period                  | $      3,476           |   | $      3,075           |  
|Loans charged-off                                  | (77                    | ) | (402                   | )
|Loan recoveries                                    | 36                     |   | 74                     |  
|Loan loss provision                                | 355                    |   | 379                    |  
|Allowance for loan losses acquired from Timberline | 676                    |   | --                     |  
|Balance - End of the period                        | $      4,466
========= |   | $      3,126
========= |  

4.          LINE OF CREDIT AND OTHER BORROWINGS

The Company has a line of credit with Federal  Home Loan Bank of Seattle  (FHLB)
up to  approximately  $50  million as of June 30,  2001.  This line of credit is
secured by  restricted  FHLB stock owned by the Company and is limited to 15% of
the  Bank's  total  assets  and by the  amount of FHLB  stock  held by the Bank.
Interest and principal  payments are due monthly on any outstanding  borrowings.
As of June  30,  2001  and  December  31,  2000,  the  Company  had no  draws on
short-term  advances  from FHLB under the line of credit.  The  Company has also
borrowed long-term funds from the FHLB against this line of credit,  aggregating
approximately  $5.89  million and $6.67 million as of June 30, 2001 and December
31,  2000,  respectively.  As of June 30,  2001,  $4.9 million is due August 28,
2008, and the remaining  $990,000 is due at various times through February 2014.
The Company is making monthly principal  payments of approximately  $60,000 plus
interest at rates of 5.82% to 7.75%.

Borrowings of  approximately  $7.7 million and $6.2 million at June 30, 2001 and
December 31, 2000, relate to repurchase  agreements used for customer  overnight
sweep  accounts.  The cost of these funds at June 30, 2001 is an average  annual
rate of interest of  approximately  3.45%.  Certain  investment  securities,  as
required, have been pledged as collateral to fully secure the long-term debt and
the repurchase agreements.

Additionally,  as of June 30, 2001 the Company has  approximately $25 million in
available  borrowings through lines of credit with certain  correspondent  banks
and through the Federal Reserve Bank's discount window.

5.          COMMITMENTS AND CONTINGENCIES

The Company is a party to financial instruments with  off-balance-sheet  risk in
the normal  course of business  to meet the  financing  needs of its  customers.
These  financial  instruments  include  commitments to extend credit and standby
letters of credit.  These  instruments  involve  various  levels and elements of
credit  and  interest  rate  risk in  excess  of the  amount  recognized  in the
accompanying  condensed  consolidated  financial  statements.  The  contract  or
notional  amounts of those  instruments  reflect the extent of  involvement  the
Company has in particular classes of financial instruments. As of June 30, 2001,
the Company has $40 million of  commitments to extend credit to customers and $2
million of standby letters of credit.

6.          EARNINGS PER SHARE

The Company's  basic  earnings  (loss) per common share are computed by dividing
net income (loss) by the weighted  average  number of common shares  outstanding
during the period.  The Company's  diluted  earnings  (loss) per common share is
computed by dividing net income (loss) by the weighted-average  number of common
shares  outstanding  plus dilutive  common shares related to stock options.  The
weighted  average number of common shares  outstanding for basic earnings (loss)
per share computations were  approximately  10.488 million and 9.762 million for
the  three-month  and six-month  periods  ended June 30, 2001 and  approximately
8.715 million for each of the three-month  and six-month  periods ended June 30,
2000. Dilutive common shares related to stock options were approximately  93,000
for each of the  three-month  and  six-month  periods  ended June 30, 2001,  and
approximately   312,000  for  the  three-month   period  ended  June  30,  2000,
respectively.10
PREMIERWEST BANCORP AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
June 30, 2001

7.          ADOPTION OF NEW ACCOUNTING STANDARDS

In September  2000,  the Financial  Standards  Board (FASB) issued  Statement of
Financial  Accounting  Standards  (SFAS) No. 140,  "Accounting for Transfers and
Servicing  of  Financial  Assets  and  Extinguishments  of  Liabilities,"  as  a
replacement  for SFAS No. 125. SFAS No. 140 revises the standards for accounting
for securitizations and other transfers of financial assets and collateral,  but
it carries over most of the provisions of SFAS No. 125 without change.

SFAS No. 140 is effective for  transfers  and servicing of financial  assets and
extinguishments of liabilities  occurring after March 31, 2001. The statement is
effective for  recognition and  reclassification  of collateral for fiscal years
ending  after  December  15,  2000.  The adoption of SFAS No. 140 did not have a
material effect on the Company's financial position or results of operation.

In July 2001, FASB issued SFAS No. 141,  "Business  Combinations",  and SFAS No.
142,  "Goodwill and Other Intangible  Assets." These statements make significant
changes to the accounting for business  combinations and goodwill.  SFAS No. 141
eliminates the  pooling-of-interests  method of accounting and requires that the
purchase method of accounting be used for business combinations  initiated after
June 30, 2001. SFAS No. 142 discontinues the practice of amortizing goodwill and
requires  that  goodwill  be   continually   evaluated  for  impairment  and  be
written-down  when  appropriate.  Other  intangible  assets with a  determinable
useful  life  will  continue  to be  amortized  over  future  periods.  Goodwill
previously  recorded by the Company will be affected  upon  adoption of SFAS No.
142 on January 1, 2002.  Application of the  non-amortization  provisions of the
statement  will  eliminate the Company's  future  amortization  of goodwill.  In
addition,  during  2002,  the Company  will  perform  the first of the  required
impairment  tests of goodwill.  However,  management has not yet determined what
the  effect of these  impairment  tests  will be on the  Company's  consolidated
results of operations and financial position.

8.          ACQUISITION OF TIMBERLINE BANSCHARES, INC.

On  April  16,  2001,  the  Company  completed  the  acquisition  of  Timberline
Bancshares,  Inc. and its wholly owned  subsidiary,  Timberline  Community  Bank
(Timberline).  The Company issued 1,757,775 shares of its common stock valued at
$7,995,000  and  $5,595,000  in cash to  shareholders  in  connection  with  the
acquisition.  The  acquisition is being accounted for, using the purchase method
of accounting.  Accordingly,  the assets and liabilities of Timberline have been
recorded by the Company at their respective estimated fair values at the time of
the  completion  of the  transaction  and the  results of  Timberline  have been
included with those of the Company since the date of the acquisition. The excess
of the Company's  purchase price over the estimated net fair value of the assets
acquired and liabilities assumed,  including identifiable  intangible assets, is
reported as goodwill  and is being  amortized on a  straight-line  basis over 20
years.

The estimated  fair values of net assets  acquired at the  acquisition  date are
summarized as follows:

(Dollars in 000's)
Cash and due from banks
        
        $      4,614Federal funds sold
        
        19,700Investment securities
        
        10,159Loans, net of allowance for loan losses
        
        56,270Property and equipment
        
        2,847Other assets
        
        8,838Total Assets
        
        $  102,428Deposits
        
        $    87,454Other liabilities
        
        783$    88,237Purchase price:
  PremierWest Common Stock
        $      7,995Cash payments
        5,595Costs of acquisition
        601
        $    14,191
=========11
PREMIERWEST BANCORP AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
June 30, 2001


The following pro forma
information presents the Companys consolidated results of operations as if
the acquisition of Timberline had occurred at the beginning of each of the
periods presented below. The pro forma information does not purport to be
indicative of the actual results of operations that would have occurred had the
transactions taken place at the beginning of the periods presented or of future
result of operations.

8.          ACQUISITION OF TIMBERLINE BANSCHARES, INC. (continued)

(Dollars in 000's, except earnings per share)
     Six-months ended June 30,2001
     2000Total interest and non-interest income
     $    18,707
     $    17,010Net income
     $      1,378
     $         698Basic earnings per common share
     $        0.13
     $        0.07Diluted earnings per common share
     $        0.13
     $        0.07Note:    Earnings per share data have been adjusted for a 5% stock dividend declared April 19, 2001

12
ITEM 2.    MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSHIGHLIGHTS

As discussed in the notes  accompanying  the  condensed  consolidated  financial
statements included in this report,  effective May 8, 2000,  PremierWest Bancorp
and its subsidiaries  (hereafter also referred to as the Company)  consummated a
merger as a  pooling-of-interests.  The  merger  was  between  Bank of  Southern
Oregon,  which changed its name to PremierWest  Bank, and United Bancorp and its
wholly owned  subsidiary,  Douglas National Bank.  Accordingly,  information and
data included in the accompanying  condensed  consolidated  financial statements
and related  notes,  and  Management's  Discussion  and  Analysis  of  Financial
Condition and Results of Operations  have been combined as though the merger had
been consummated as of the earliest period financial information is presented.

On  April  16,  2001,  the  Company  completed  the  acquisition  of  Timberline
Bancshares,  Inc. and its wholly owned  subsidiary,  Timberline  Community  Bank
(Timberline).  The Company issued 1,757,775 shares of its common stock valued at
$7,995,000 and $5,595,000 in cash to Timberline  shareholders in connection with
the  acquisition.  The  acquisition  is being  accounted for, using the purchase
method of accounting. Accordingly, the assets and liabilities of Timberline have
been recorded by the Company at their  respective  estimated  fair values at the
time of the  completion of the  acquisition  and the results of Timberline  have
been included with those of the Company since the date of the  acquisition.  The
unidentified  intangible assets related to the excess of the Company's  purchase
price over the estimated net fair value of the assets  acquired and  liabilities
assumed is reported as goodwill and is being  amortized over a useful life of 20
years. The financial statement data for the periods presented are not comparable
as a result  of the  acquisition  of  Timberline  using the  purchase  method of
accounting.

Forward-looking  statements are based on the beliefs of the Company's management
and on assumptions  made by and information  currently  available to management.
Although  the  Company  believes  that  the   expectations   reflected  in  such
forward-looking  statements are  reasonable,  it can give no assurance that such
expectations  will prove to have been correct.  Forward-looking  statements  are
subject to certain risks and uncertainties,  which could cause actual results to
differ materially from those indicated by the forward-looking statements.FOR THE THREE MONTHS ENDED JUNE 30, 2001 AND 2000

The Company had net income of $600,000  for the three months ended June 30, 2001
which was an increase of $836,000 (or 254%) compared to the same period in 2000.
This  increase is due mainly to a $803,000  increase in net interest  income and
$357,000  increase in  non-interest  income offset by an increase of $212,000 in
non-interest expense over the comparative three-month period ended June 30,2000.

The following table presents  information  regarding yields on  interest-earning
assets, expense on interest-bearing liabilities, net interest spread, net yields
on  average  interest-earning  assets,  return on  average  assets and return on
average equity for the periods indicated (dollars in thousands):

Analysis for the three-month periods endedJune 30, 2001 and 2000
        2001
        2000
        Increase(Decrease)
        % ChangeAverage interest-earning assets
        $  397,290
        $  277,700
        $  119,950
        43.1%Average interest-bearing liabilities
        $  411,865
        $  296,600
        $  115,265
        38.9%Average total assets
        $  455,245
        $  328,700
        $  126,545
        38.5%Average equity
        $    37,500
        $    29,500
        $      8,000
        27.1%Average yield earned
        8.18%
        9.33%
        -1.2%
        -12.4%Average rate paid
        3.54%
        3.78%
        0.2%
        -6.1%Net interest spread
        4.63%
=========
        5.55%
=========
        -0.9%
=========
        -16.6%Net interest income to average
  interest-earning assets
        4.50%
        5.30%
        -0.8%
        -15.0%Return on average assets, before merger costs
        0.57%
        -0.29%
        0.9%
        298.3%Return on average equity, before merger costs
        6.95%
        -3.22%
        10.2%
        316.1%Efficiency ratio, before merger costs
        77.94%
        96.47%
        -18.5%
        -19.2%13
NET INTEREST INCOME. Net
interest income before the loan loss provision increased $803,000 for the
three-month period ended June 30, 2001 over the same period in 2000. Of this
increase, $500,000 was contributed from the Timberline operations since its
acquisition. The remaining increase was mainly due to an increase in the volume
of loans offset by a decrease in overall yields. The Companys volume of
interest-earning assets increased approximately $76 million during the
three months ended June 30, 2001 as compared to the corresponding period in
2000. Average earning assets of $63 million relates to the acquired Timberline
operations. Though the Companys cost of funds decreased to 3.79%, the
volume of its interest-bearing liabilities increased $115 million ($77 million
relating to the acquired Timberline operations) during the three months ended
June 30, 2001 as compared to the corresponding period in 2000. As a result, the
Companys interest rate margin decreased by 80 basis points resulting in a
15% decrease in net interest margin.

LOAN LOSS PROVISION. The
loan loss provision during the three-month periods ended June 30, 2001 and 2000,
was $193,000. The Company had net charge-offs of $33,000 during the three-month
period ended June 30, 2001, compared to net charge-offs of $112,000 for the
corresponding period in 2000. Additions to the loan loss provision have
maintained the allowance for loan losses at $4.5 million as of June 30, 2001,
compared to $3.1 million as of June 30, 2000. Of the increase in the
allowance for loan losses, $676,000 relates to loans of $57 million acquired in
the Timberline transaction. The remaining increase in the allowance for loan
losses is primarily related to the increase in loans in addition to specific and
inherent losses in the loan portfolio. The Companys ratio of allowance for
loan losses to total loans was 1.37% at June 30, 2001, compared to 1.46% at
June 30, 2000. Non-performing assets (defined as loans on non-accrual
status, 90 days or more past due, and other real estate owned) either
specifically reserved or adequately collateralized were $6.9 million and
$3.8 million at June 30, 2001 and 2000, respectively.

NON-INTEREST INCOME.
Non-interest income increased 60% to $951,000for the three months ended June 30,
2001, as compared to $594,000 for the same period in 2000. Of this increase,
$109,000 relates to the acquired Timberline operations and $248,000 relates
primarily to the increase in mortgage brokerage fees.

NON-INTEREST EXPENSE.
Non-interest expense increased $212,000 for the three months ended June 30, 2001
as compared to the corresponding period in 2000. Salaries and employee benefits
increased $778,000 ($356,000 relates to the Timberline operations) as a result
of higher costs associated with recruiting and hiring and profit sharing
expenses during the three months ended June 30, 2001 as compared to the
corresponding period in 2000. Professional fees (not included in the $883,000
merger costs) increased by $48,000 due to costs associated with the Douglas
National Bank merger in progress during the first quarter of 2000. Occupancy and
equipment expenses increased a total of $270,000 ($98,000 relates to the
Timberline operations) for the three months ended March 31, 2001, as compared to
the same period in 2000. This increase was attributed to higher costs associated
with building maintenance and repairs. Advertising costs decreased $47,000
compared to the prior period since deposit-marketing programs were not warranted
with increased deposit levels. Other non-interest expense decreased by $50,000
due to various factors including cost savings associated with the Douglas
National Bank merger. During the three months ended June 30, 2001, the Company
amortized $96,000 in goodwill, such charges of which were not incurred during
the three-month period ended June 30, 2000. However, during the second quarter
of 2000, the Company charged to expense $883,000 in costs related to the Douglas
National Bank merger completed in May 2000.FOR THE SIX MONTHS ENDED JUNE 30, 2001 AND 2000

Net income was $1,250,000
for the six months ended June 30, 2001, which was greater by $864,000 as
compared to the same period in 2000. Goodwill amortization of $96,000 was
charged to earnings for the six months ended June 30, 2001 compared to no
amortization charges during the six months ended June 30, 2000. During the
second quarter of 2000, net income for the six-month period ended June 30,
2000 includes one-time merger and data conversion costs of $883,000.

The following table
presents information regarding yields on interest-earning assets, expense on
interest-bearing liabilities, net interest spread, net yields on average
interest-earning assets, return on average assets and return on average equity
for the periods indicated (dollars in thousands):

14
Analysis for the six-month periods endedJune 30, 2001 and 2000
        2001
        2000
        Increase(Decrease)
        % ChangeAverage interest-earning assets
        $  355,937
        $  280,246
        $    75,691
        27.0%Average interest-bearing liabilities
        $  359,461
        $  282,600
        $    76,861
        27.2%Average total assets
        $  396,404
        $  311,600
        $    84,804
        27.2%Average equity
        $    36,000
        $    29,100
        $      6,900
        23.7%Average yield earned
        8.47%
        8.86%
        -0.4%
        -4.4%Average rate paid
        3.79%
        3.65%
        0.1%
        3.9%Net interest spread
        4.68%
=========
        5.21%
=========
        -0.5%
=========
        -10.2%Net interest income to average
  interest-earning assets
        4.64%
        5.18%
        -0.5%
        -10.4%Return on average assets, before merger costs
        0.66%
        0.25%
        0.4%
        165.5%Return on average equity, before merger costs
        7.28%
        2.67%
        4.6%
        173.0%Efficiency ratio, before merger costs
        76.34%
        84.20%
        -7.9%
        -9.3%NET   INTEREST
INCOME.      During the six months ended June 30, 2001,  net
interest income increased by $973,000,  ($500,000  contributed by the Timberline
operations), as compared to the same period in 2000.

Other than the increase contributed by the Timberline operations,  this increase
was  primarily  due to an  increase  in the  volume  of loans  offset by a 12.4%
decrease  in  related  yields.  There  was also an  increase  in the  volume  of
interest-bearing  deposits. During the six-month period ended June 30, 2001, the
volume of average loans increased by  approximately  $76 million,  while overall
yields decreased  approximately 39 basis points as compared to the corresponding
period in the prior  year.  There was also an  increase  of $77  million  in the
volume of interest-bearing liabilities,  excluding Timberline, while at the same
time a 10 basis point increase in rates paid, negatively impacting the Company's
net interest margin by 54 basis points.

LOAN LOSS PROVISION.  The loan loss provision  during the six-month period ended
June 30, 2001, was $355,000 as compared to $379,000 for the same period in 2000.
The Company had net  charge-offs  of $41,000  during the six-month  period ended
June 30, 2001,  compared to net  charge-offs of $328,000 for 2000. The provision
for loan losses was  decreased  by $24,000  during this period due mainly to the
decrease in net  charge-offs as a result of the impact of improved  underwriting
policies.

NON-INTEREST INCOME. Non-interest income increased by $649,000 ($109,000 relates
to the Timberline  operations) to $1.7 million for the six months ended June 30,
2001,  as  compared  to $1  million  for the same  period  in 2000.  Most of the
remaining  increase  relates to mortgage  loan  brokerage  fees that were earned
during the six months ended June 30, 2001.

NON-INTEREST EXPENSE.  Non-interest expense increased to $7.6 million, including
a $96,000  charge for  goodwill  amortization  for the six months ended June 30,
2001, as compared to $6.9  million,  including  $883,000 of one-time  merger and
data conversion costs discussed above, for the same period in 2000. Salaries and
employee benefits  increased $1.1 million  ($356,000  relating to the Timberline
operations) with the increase in full-time  employees  supporting the high level
of customer service and the greater volume of Company operations.  Occupancy and
equipment  expenses  increased  $314,000  ($96,000  relates  to  the  Timberline
operations)  for the six months  ended June 30,  2001,  as  compared to the same
period in 2000.  This increase was attributed to costs  associated  with the new
administration  and loan  production  facility  that opened in December 2000 and
additional  computer  and  phone  equipment.  While  the  size of the  Company's
operations  expanded,  costs in other  non-interest  expense have also increased
though to a lesser degree.  Management of the Company  continually reviews areas
to reduce  duplication  of  operational  processes  in an effort to reduce other
non-interest expenses.

INCOME TAXES. In accordance with provisions of the IRC and as discussed above, a
significant  portion of merger costs  incurred  during the six months ended June
30, 2000 were not deductible for income tax purposes. As a result, the Company's
taxable income resulted in an estimated  $535,000 (an effective tax rate of 58%)
in federal and state income taxes for the six-month  period ended June 30, 2000.
This  compares to an effective  tax rate of 33% for the  six-month  period ended
June 30, 2001.15
FINANCIAL  CONDITION.  Total  assets at June 30,  2001,  increased  to over $466
million  since  December 31, 2000,  $97 million  added with the  acquisition  of
Timberline and $25 million due to growth in mainly the loan area.  Growth of $87
million in  deposits  with the  Timberline  acquisition  and $24  million in new
customer  growth added $110 million in total deposits to $407 million.  With the
liquidation of $28 million of callable U.S.  agency  securities  during the fist
six months of 2001,  federal funds sold increased by $22 million helping to make
available  funds for future loans.  With the  acquisition of Timberline in April
2001,  the  Company  added  approximately  $8  million to  capital  holding  the
Company's capital to assets ratio at 9.15%.

LIQUIDITY. Liquidity enables the Company to meet withdrawals of its deposits and
borrowing  needs of its loan  customers.  The Company  maintains  its  liquidity
position  through  maintenance  of cash  resources and the stability of its core
deposit base. Liquidity significantly increased during this quarter. Excess cash
was invested on a short-term basis into federal funds sold and  interest-earning
deposits  with the FHLB.  As of June 30,  2001,  the  Company had $26 million in
federal funds sold.

A  further  source of
liquidity  is the  Company's  ability to borrow funds by  maintaining  a secured
line-of-credit  with the FHLB up to 15% of the Bank's total  assets.  As of June
30, 2001,  $5.9 million had been advanced in long-term  borrowings from the FHLB
against the  Company's  credit line.  Other  borrowings  of  approximately  $7.7
million relate to repurchase  agreements for customer  overnight sweep accounts.
The cost of these funds is approximately 3.45%. The Company also has established
secured credit lines of approximately $25 million through certain  correspondent
banks  and  the   discount   window  with  the  Federal   Reserve  Bank  of  San
Francisco.

At June 30,  2001,  the Company  had  approximately  $40 million in  outstanding
commitments to extend credit for newly  approved  loans and available  funds for
construction  projects.  Under  the  terms of such  commitments,  completion  of
specified  project  benchmarks  must be certified  before funds may be drawn. In
addition,  it is anticipated that a portion of other  commitments will expire or
terminate  without  funding.  Management  believes that the Company's  available
resources  will be sufficient to fund these  commitments in the normal course of
business.

CAPITAL  RESOURCES.  Federal  regulators  require the  calculation of risk-based
capital.  This is an analysis that weights balance sheet and  off-balance  sheet
items for their  inherent  risk. It requires  minimum  standards for  risk-based
capital-by-capital  tier. As a minimum  requirement,  total  risk-based  capital
ratio should be at least 8.00%,  Tier 1 capital  ratio should be at least 4.00%,
and a  leverage  capital  ratio  should  be at least  4.00%.  At June 30,  2001,
PremierWest Bancorp's estimated  regulatory  capital ratios were as follows:  total
risk-based  capital  ratio of  11.26%,  Tier 1  capital  ratio of  10.04%,  and a
leverage capital ratio of 9.11%.  The Company's  capital ratios also approximate
the capital ratios of PremierWest  Bank,  since most Company  capital and assets
include the capital and assets of PremierWest Bank.  However,  if the Company or
PremierWest Bank were fully leveraged, further growth could be restricted to the
level attainable  through  generation and retention of net income or the Company
could seek additional capital from outside sources.

MARKET  RISK.  Market  risk is the risk of loss from  adverse  changes in market
prices and rates.  The Company's  market risk arises  principally  from interest
rate risk in its lending, deposit and borrowing activities.  Management actively
monitors  and manages its  interest  rate risk  exposure.  Although  the Company
manages  other risks,  as in credit  quality and  liquidity  risk, in the normal
course of business,  management considers interest rate risk to be a significant
market  risk,  which could have the  largest  material  effect on the  Company's
financial condition and results of operations. Other types of market risks, such
as foreign currency exchange rate risk and commodity price risk, do not arise in
the normal course of the Company's business activities.  The Company experienced
a change in market risk at June 30, 2001 as compared to December 31, 2000. Prime
rate adjusted by 275 basis points during the first quarter 2001 that caused a 53
basis point  tightening  of the Company's  interest rate margin.  The Company is
adjusting its cost of deposits to correct its interest  rate margin.  Additional
downward  adjustments  in the  Prime  interest  rate  will  result  in a further
tightening of the Company's margins.

ITEM
3.    QUANTITATIVE  AND QUALITATIVE DISCLOSURES ABOUT MARKET
RISK.

Please  refer to the section  above  "Management's  Discussion  and  Analysis of
Financial Condition and Results of Operations" on pages 14-16.

16
PART II.     OTHER INFORMATION

ITEM   1.     LEGAL   PROCEEDINGS.   The   Company  may
occasionally  have pending routine  litigation  resulting from the collection of
secured  and  unsecured  indebtedness  as  part  of its  business  of  providing
financial services. In some cases, such litigation will involve counterclaims or
other claims against the Company.  Other than litigation in the normal course of
business  and in the  collection  of Company  loans and other such  assets,  the
Company is not involved in any significant cases, which in management's  opinion
would have a material impact on the Company's financial condition.

ITEM 4.     SUBMISSION OF MATTERS TO A VOTE OF SECURITIES HOLDERS.

Annual Shareholders' Meeting held June 20, 2001 to vote for the Directors of PremierWest Bancorp:

Directors
        Yes
        No
        AbstainJohn L. Anhorn
        7,574,482
        -0-
        128,307Don L. Hilton
        7,676,064
        -0-
        26,725James L. Patterson
        7,569,864
        -0-
        132,925Thomas Becker
        7,644,378
        -0-
        58,411Dennis N. Hoffbuhr
        7,569,864
        -0-
        132,925Pete Martini
        7,661,456
        -0-
        41,333John A. Duke
        7,676,064
        -0-
        26,725Patrick G. Huycke
        7,671,074
        -0-
        31,715Rickar D. Watkins
        7,661,456
        -0-
        41,333Quorum:
  Allowed shares to vote:
        10,310,264Responded:
        7,702,789Percent Responded:
        74.70%ITEM 6.      EXHIBITS AND REPORTS ON FORM 8-K(a)
        None(b)
        Reports on Form 8-K
April 16, 2001 - Press Release on Close of the Timberline Bancshares, Inc. acquisition
April 30, 2001 - Acquisition of Assets related to the purchase of Timberline Bancshares, Inc.
July 20, 2001 - Earnings Release dated July 18, 2001SIGNATURES:    Pursuant to the  requirements  of the  Securities  Exchange Act of 1934,  the registrant has duly caused this report to be
signed on its behalf by the undersigned thereunto duly authorized.

DATED: August 10, 2001

PREMIERWEST BANCORP/s/ Bruce R. McKee
Bruce R. McKee
Chief Financial Officer/s/ John L. Anhorn
John L. Anhorn
Chief Executive Officer




17