VSB Bancorp Inc. reported unaudited consolidated earnings results for the third quarter and nine months ended September 30, 2009. For the quarter, the company reported net income of $474,469 or $0.26 per diluted share on total interest income of $2,623,941 compared to net income of $542,704 or $0.29 per diluted share on total interest income of $2,798,701 for the same period a year ago. The company reported income before income taxes of $881,222 and net interest income after provision for loan loss of $2,233,952 compared to income before income taxes of $1,009,408 and net interest income after provision for loan loss of $2,241,173 for the same period a year ago. The decrease in interest income was partially offset by an $82,241 increase in interest income from loans. The company reported ROA of 0.79% and ROE of 7.42%. For the nine months, the company reported net income of $1,306,817 or $0.72 per diluted share on total interest income of $7,985,556 compared to net income of $1,330,924 or $0.71 per diluted share on total interest income of $8,208,613 for the same period a year ago. The company reported income before income taxes of $2,427,087 and net interest income after provision for loan loss of $6,476,701 compared to income before income taxes of $2,475,516 and net interest income after provision for loan loss of $6,217,472 for the same period a year ago. Book value per common share was $13.69 compared to book value per common share of $11.53 for the same period a year ago. The $24,107 decline in net income was attributable principally to an increase in the provision for loan losses of $325,000, due to weakness in the economy, an increase in non-interest expense of $338,893, due primarily to a $141,500 increase in FDIC and NYSBD assessments, and a $44,100 increase in professional fees, due to preparing for first year of compliance with Section 404(b) of the Sarbanes-Oxley Act.

VSB Bancorp Inc. announced that its board of directors has declared a quarterly cash dividend of $0.06 per share payable on October 1, 2009 to stockholders of record on September 17, 2009.

VSB Bancorp Inc. and Victory State Bank announced that Jonathan Lipschitz, CPA, has been appointed as Vice President, Controller and Principal Accounting Officer. Mr. Lipschitz, 53, has more than 24 years experience in banking in various financial capacities. Prior to joining the Registrant, he had been CFO for TAOCON Inc., a construction company, since 2008. Prior to that, he was CFO/Business Manager-Commercial Bank Unit for JPMorgan Chase and held various other positions in JPMorgan Chase from 1984 through 2008.