Bradford Bank Completes Acquisition of American Bank's Ellicott City Branch Deposits.

BALTIMORE -- Bradford Bank announced today that it has completed the acquisition of over $6 million in retail deposits from American Bank's in-store branch formerly located in the Super Fresh at 3301 N. Ridge Road at Route 40 in Ellicott City, Maryland. The transfer of accounts began when American Bank relocated the branch on Friday, September 29, at 2:00 p.m. The transfer was completed by start-of-business today. Accounts were transferred to Bradford Bank's Ellicott City branch located at 10100 Baltimore National Pike.

"We are so pleased to welcome these customers to Bradford Bank and it was a pleasure working with American Bank," said Dallas R. Arthur, Bradford Bank president. "We opened our Ellicott City branch in 1973 and are committed to servingCoand stayingCoin this community. This acquisition is a way to reach more customers in this growing area," he continued.

In 2005, Bradford Bank completed its mutual holding company reorganization, forming Bradford Bank MHC as its mutual holding company parent and Bradford Bancorp, Inc., as its mid-tier stock holding company. In a separate transaction dated September 30, 2006, Bradford Bancorp, Inc. announced an agreement to purchase Valley Bancorp, Inc., Hunt Valley, Maryland, in a cash transaction valued at approximately $9.6 million; approval is pending. In addition, Bradford Bank owns Bradford Financial Group, Inc., a non-banking subsidiary that offers investments and insurance products.

Bradford Bank is a community bank headquartered in Rodgers Forge, Baltimore County, Md., and, as of August 1, 2006, has $450 million in assets. Bradford Bank has six branches in the greater Baltimore metropolitan area. Bradford Bank provides consumer and commercial banking services to individuals and businesses. Agreements with Allpoint ATM network and a regional bank provide over 32,000 fee-free ATMs.