Medford-based PremierWest Bancorp, the parent company of PremierWest Bank, must see its common stock close at $1 a share or higher by Sept. 13 or lose its Nasdaq listing.

Medford-based PremierWest Bancorp, the parent company of PremierWest Bank, must see its common stock close at $1 a share or higher by Sept. 13 or lose its Nasdaq listing.

The National Association of Securities Dealers Automated Quotations, or Nasdaq, notified PremierWest that it is not in compliance with the $1 minimum bid price requirement for continued listing on The Nasdaq Capital Market.

PremierWest has until Sept.13 to bring the stock to the $1-a-share level, and it must stay there for a minimum of 10-consecutive business days. After that, the holding company could be afforded a second 180-day grace period if it meets Nasdaq's other initial listing criteria.

If PremierWest fails to regain compliance, its common stock will be subject to de-listing. PremierWest shares traded as high as $16 four years ago, but haven't finished a session above $6 since the start of 2009. Shares have drifted above 80 cents the past two days, spurred by a strong overall market. However, the price fell to 73 cents at the end of trading on Friday.

"Obviously, we would like to see the bank stock rise to its previous level," said Chief Financial Officer Mike Fowler. "It's a long road back, but we think we're making good progress in that direction."

PremierWest rapidly expanded through the acquisition of Northern California banks. Its bottom line was pummeled by the collapse of the residential real estate market that followed.

"Slowly but surely, we're working through the credit issues," Fowler said. "I wouldn't say the economy and real estate market have fully rebounded, but in Northern California we are starting to see (residential tracts') appraised values coming up. There is light at the end of the tunnel, we just don't know how long that tunnel is."

Separately, PremierWest announced a supplemental offering allowing public access to shares at 44 cents. The company completed stock sales to its directors and executive officers earlier this month, selling 42,486,822 shares and raising approximately $18.7 million before expenses. It is now offering up to 39,260,540 common stock shares between now and March 31. The offering may be extended to April 30 or could be canceled at any time.

Fowler said PremierWest anticipates raising $17.3 million in the second phase of the offering. After the offering to insiders, board member Georges St. Laurent owns just more than 7 percent of the PremierWest Bancorp stock and board Chairman John Duke 6 percent. In a filing with Securities and Exchange Commission, Laurent indicated he would obtain up to 9.9 percent of the shares.

Reach reporter Greg Stiles at 541-776-4463 or e-mail business@mailtribune.com.