Related Party Transactions and Outside Related Director Information

PremierWest Bancorp (PRWT)

4/6/2006 Proxy Information

Mr. Dickerson served as Chief Executive Officer of Mid Valley Bank from 1990 until its merger with PremierWest Bancorp in January 2004, at which time he retired.

PremierWest Bank has deposit and lending relationships with many of its directors and officers, as well as with their affiliates. All loans to directors, officers and their affiliates were made in the ordinary course of business, on substantially the same terms (including interest rates and collateral) as those prevailing at the time for comparable transactions with other persons, and did not involve more than the normal credit risk or present other unfavorable features. All of the loans are current and all required payments thereon have been made. As of December 31, 2005, the aggregate outstanding amount of all loans to officers and directors was approximately $8.9 million, which represented 8.6% of shareholders' equity on that date.

In the last quarter of 2003, Bancorp issued 11,000 shares of Series A Preferred Stock in a private placement to three investors. John Duke, a current board member, acquired 4,140 shares of Series A Preferred Stock for an investment of $3,622,500. Mr. Duke acquired these shares on the same terms and conditions as the non-affiliated investors and did not participate in any of the deliberations or voting regarding the designation and issuance of the Series A Preferred Stock. In accordance with the NASDAQ listing requirements, this transaction was presented to and ratified by the shareholders at the 2004 annual shareholders' meeting.