South Valley Bancorp Inc. in Klamath Falls, Ore., has withdrawn its plan to go public, stating in a Securities and Exchange Commission filing that "current market conditions make proceeding with this offering unattractive."
Shares of most banks' stocks have fallen sharply in recent months as the economic recovery has slowed and loan demand has remained tepid. The parent of the $860 million-asset South Valley Bank & Trust said in Friday's filing that it might instead try to raise capital through a private offering.
South Valley said in an SEC filing in July said it had intended to use the proceeds to strengthen the bank's capital, support long-term growth and for general corporate purposes. At June 30, the bank had a tier 1 risk-based capital ratio of 12.15% and a total risk-based capital ratio of 13.41%.
South Valley reported a $2 million loss in 2009 after its provision for loan losses climbed significantly from the previous year, but it turned a profit in 2010 and reported earnings of $1.1 million for the six months ending June 30.