Formed with initial capitalization of $7 million, Staten Island’s only community-based commercial bank now has total equity of $32.7 million and nearly $400 million in total assets

STATEN ISLAND, N.Y. (November 2017) – Victory State Bank, Staten Island’s only community-based commercial bank has marked its 20^th anniversary, flourishing in tandem with the borough’s vibrant business sector and expanding populous.

Launched Nov. 17, 1997, the home-grown bank was created in response to an economic environment its founders – Raffaele (Ralph) M. Branca, Joseph J. LiBassi, Joan Nerlino-Caddell, Dr. Carlos Perez, and other local leaders – interpreted as a chasm between Staten Island’s banking services and the needs of the borough’s business community.

Formed with initial capitalization of $7 million raised mostly on the Island, the bank’s total assets flourished to the $100 million mark by 2001. Operating since May 2003 under the umbrella of one-bank holding company VSB Bancorp, Inc. (OTCQX: VSBN), the bank has grown to embrace a total equity of $32.7 million, as of the third quarter of 2017.

Under the leadership of LiBassi serving as chairman of VSB Bancorp, Inc., from the onset, and Branca as president and CEO of Victory State Bank since November 2007, the financial institution has expanded to five full-service Island branches, with an additional location on the horizon. Sites include the main office in Great Kills, branches in West Brighton; St. George; Dongan Hills, and Rosebank, and its future sixth location in Meiers Corners, for which a lease was signed in 2016.

“Joseph LiBassi, myself and the founding directors created Victory State Bank in 1997 to provide the businesses of Staten Island with a bank dedicated to providing the utmost in personal service,” Branca said. “Throughout our 20 years, we have grown to five branches and almost $400 million in total assets by vigilantly abiding by this philosophy. We have been blessed with excellent staff and loyal customers who help us realize our vision every day. Thank you to all who have made us such a success.”

Concurring with Branca’s sentiment, LiBassi said the evolution of Victory State Bank’s success was fueled by a supportive community and devoted bank staff.

“We are grateful to those who helped support our goal of becoming Staten Island’s premier community bank,” LiBassi said, “including our shareholders; the Staten Island Advance and NY1 for their coverage; borough residents; community leaders; non-profit groups; businesses, and professional organizations. We are very fortunate to have a highly competent, service-oriented family of employees who have a stake in Staten Island.”

Victory State Bank became profitable in its tenth month of operation, subsequently adding branches in 1999; 2000; 2002, and 2006. The bank’s main office relocated to its then newly completed Great Kills building in 2007.

Some additional highlights of the past two decades:

• May 2003: 3-for-2 stock split issued
• March 2004: 4-for-3 stock split issued
• 2004: Total assets exceed $200 million
• May 2006: 5- for-4 stock split issued
• January 2008: First quarterly cash dividend of 6 cents per share is paid
• October 2008: First 100,000 share repurchase program is started
• November 2009: Second 100,000 share repurchase program is started
• September 2011: Third 100,000 share repurchase program is started
• 2013: VSB Bancorp, Inc. delists from the NASDAQ and starts trading on the OTC Marketplace
• June 2015: Fourth 100,000 share repurchase program is started
• 2015: Total assets exceed $300 million
• January 2016: Quarterly cash dividend increases to 7 cents per share
• January 2017: Quarterly cash dividend increases to 8 cents per share

ABOUT VICTORY STATE BANK

VSB Bancorp, Inc. (OTCQX: VSBN) 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.

A planned sixth branch, to be situated in Meiers Corners, has received both 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 $32.7 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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