FOR IMMEDIATE RELEASE:

MONDAY, DEC. 16, 2019

VSB Bancorp, Inc. Announces 49th Consecutive Cash Dividend

STATEN ISLAND, N.Y. – VSB Bancorp, Inc. (VSBN), the holding company for Victory State Bank, recently declared a quarterly cash dividend of 15 cents per share, payable on Jan. 2, 2020 to stockholders of record on Dec. 20, 2019. The action, announced Dec. 11, represents a 15 percent increase in the quarterly cash dividend.

“We are pleased to announce our 49th consecutive cash dividend. We increased the quarterly cash dividend by two cents per share based upon our continued strong earnings,” stated Joseph J. LiBassi, chairman of the VSB Bancorp, Inc. Board of Directors.

Raffaele (Ralph) M. Branca, president and CEO of VSB Bancorp, Inc., reported, “Our dividend payout ratio is 23.7 percent on third quarter 2019 earnings. This is the second increase in our quarterly cash dividend rate this year.”

About VSB Bancorp, Inc.

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

Victory State Bank, a Staten Island-based commercial bank, commenced operations on Nov. 17, 1997. The Bank’s initial capitalization of $7.0 million was primarily raised in the Staten Island community.

The Bancorp’s total equity stood at $38.1 million by September 30, 2019.

As Staten Island, N.Y.’s only community-based business bank, Victory State Bank operates six full-service locations on the Island, including its main office in the community of Great Kills and branches in West Brighton, St. George, Dongan Hills, Rosebank and Meiers Corners. The bank additionally operates a business center in Dongan Hills.

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

FORWARD -LOOKING STATEMENTS

The payment of dividends is at the discretion of the Board of Directors and nothing contained herein should be interpreted as a commitment to pay future dividends.

Statements contained in this press release, which are not historical facts, are forward -looking statements, as defined in the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to risks and uncertainties, which could cause actual results to materially differ from those currently anticipated. Those risks and uncertainties include, among other things, possible future changes in (i) the local, regional or national economy, (ii) market interest rates, (iii) customer preferences, (iv) competition or (v) federal or state laws.

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