STATEN ISLAND, N.Y. – (April 2017) First-quarter results of VSB Bancorp, Inc. (OTCQX: VSBN) show an increase of $21.2 million in assets, or 6.4 percent, at March 31, 2017, from December 31 of the last year.

Also up, is the net income of $619,820 for the first quarter of 2017, which signifies an increase of $70,424, or 12.8 percent, from the first quarter of 2016.

“We have been able to consistently generate growth in our demand and checking accounts,” stated Raffaele (Ralph) M. Branca, president and CEO of VSB Bancorp, Inc. “We have a significant loan pipeline which we expect to convert to loans in the near future.”

According to unaudited figures released earlier in the month, pre-tax income was $953,575 in the first quarter of 2017, compared to $845,262 for the first quarter of 2016.

Net income for the quarter was $619,820, or basic income of 35 cents per common share, compared to a net income of $549,396, or 32 cents basic income per common share, for the quarter ended March 31, 2016.

Joseph J. LiBassi, chairman of VSB Bancorp, stated, “Our loan portfolio is generating more income as we have been able to originate more loans. We paid our 38th consecutive dividend to our stockholders and our book value per share has reached $17.07. Our dedication to deliver the highest quality personal service is a key factor in our success.”

Return on average assets increased from 0.67 percent in the first quarter of 2016 to 0.68 percent in the first quarter of 2017, while return on average equity increased from 7.25 percent to 7.77 percent.

Overall, average interest-earning assets increased by $34.0 million from the first quarter of 2016 to the first quarter of 2017.

Non-interest income increased by $27,558 to $669,184 in the first quarter of 2017, compared to $641,626 in the same quarter in 2016.

About VSB Bancorp, Inc.

VSB Bancorp, Inc. is the one-bank holding company for Victory State Bank.

As Staten Island, N.Y.’s only community-based commercial bank, Victory State Bank operates five full-service locations on the Island, including the main office in the community of Great Kills and branches in West Brighton, St. George, Dongan Hills and Rosebank.

The bank is planning to open a sixth branch in Meiers Corners section of Staten Island, subject to regulatory and building department approvals.

Victory State Bank commenced operations on Nov. 17, 1997. The Bank’s initial capitalization of $7 million was primarily raised in the Staten Island community. The Bancorp’s total equity has increased to $31.2 million primarily through the retention of earnings.

For additional information, Victory State Bank may be reached at 718-979-1100 or visited online at www.VictoryStateBank.com.

FORWARD LOOKING STATEMENTS

This release contains forward-looking statements that are subject to risks and uncertainties. Such risks and uncertainties may include but are not necessarily limited to adverse changes in local, regional or national economic conditions, fluctuations in market interest rates, changes in laws or government regulations, weaknesses of other financial institutions, changes in customer preferences, and changes in competition within our market area. When used in this release or in any other written or oral statements by the Company or its directors, officers or employees, words or phrases such as “will result in,” “management expects that,” “will continue,” “is anticipated,” “estimate,” “projected,” or similar expressions, and other terms used to describe future events, are intended to identify “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 (“PSLRA”). Readers should not place undue reliance on the forward-looking statements, which reflect management’s view only as of the date of the statement. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect subsequent events or circumstances. This statement is included for the express purpose of protecting the Company under the PSLRA’s safe harbor provisions.

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