VSB Bancorp, Inc. is the holding company for Victory State Bank (the Bank), a commercial bank. The Bank�s principal business is attracting commercial deposits from primarily the general public and investing those deposits, together with funds generated from operations and repayments on investments, primarily in loans for business purposes and investment securities. The Bank�s revenues are derived principally from interest on its commercial loan and investment securities portfolios. The Bank�s primary sources of funds are deposits and principal and interest payments on loans and investment securities. The Bank serves its primary market of Staten Island, New York through its five banking offices. The Bank�s loan portfolio consists primarily of commercial mortgage loans and unsecured commercial loans. Investment securities consist of collateralized mortgage obligations (CMO), mortgage-backed securities (MBS) and United States Agency notes.