South Valley Bancorp Inc. in Klamath Falls, Ore., has withdrawn its plan to go public, stating in a Securities and Exchange Commission filing that "current market conditions make proceeding with this offering unattractive."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.

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