Two banking companies, Bradford Bancorp Inc. of Baltimore and Hunt Valley-based Valley Bancorp Inc., have signed an agreement in which Bradford will acquire Valley Bancorp for about $9.6 million.
The transaction will increase Bradford Bancorp?s assets from $431 million as of June 30 to about $476 million. It will also add an additional location. Under terms of the agreement, Valley Bancorp shareholders will be eligible to receive $71 in cash for each share of Valley Bancorp common stock.
“This allows us to grow Bradford Bank through the acquisition of an existing entity that was already producing income,” said David R. Arthur, president of Bradford Bancorp Inc. “And it gives us a new branch in an area where we currently do not have a branch.”
The acquisition is expected to be completed by early in the first quarter of 2007. The transaction still must be approved by Valley Bancorp shareholders and must receive regulatory approval from Bradford Bancorp.
Joseph M. Solomon, Valley Bancorp?s president and chief executive officer, who will be stepping down from the company following the transaction, said that the acquisition will offer Valley?s customers a variety of additional services currently not available to them as well as six more locations to conduct their banking.
Solomon added that he expects Bradford to offer positions to many of Valley?s employees following the merger.
“I believe that they?re going to need our employees to be able to continue to provide good services and continuity to Valley?s customers,” Solomon said.
Bradford Bancorp is the holding company for Bradford Bank, which operates out of six offices in the Baltimore metropolitan region. Valley Bancorp is the holding company of Valley Bank of Maryland in Hunt Valley.
