FSB Community Bankshares, Inc. Announces Third Quarter Results

FAIRPORT, N.Y., Oct. 29 /PRNewswire-FirstCall/ -- FSB Community Bankshares,
Inc. (the "Company") (OTC Bulletin Board: FSBC), the mid-tier stock holding
company of Fairport Savings Bank (the "Bank"), reported a net loss of $34,000
for the quarter ended September 30, 2009 compared to net income of $1,000 for
the quarter ended September 30, 2008. Net loss per share for the quarter
ended September 30, 2009 was $(0.02) compared to no net income per share for
the quarter ended September 30, 2008. The Company's net interest margin for
the quarter ended September 30, 2009 decreased 23 basis point to 2.17% from
2.40% for the quarter ended September 30, 2008. Another factor that
negatively affected the third quarter of 2009 compared to the third quarter of
2008 was an additional $74,000 in FDIC premium expense recorded in other
expense.

For the nine months ended September 30, 2009, the Company reported net income
of $44,000 compared to a net loss of $95,000 for the nine months ended
September 30, 2008. Net income per share for the nine months ended September
30, 2009 was $0.03 compared to a net loss per share of $(0.06) for the nine
months ended September 30, 2008. The Company's net interest margin for the
nine months ended September 30, 2009 increased 9 basis points to 2.30% from
2.21% for the nine months ended September 30, 2008.

At September 30, 2009, the Company had $221.7 million in consolidated assets,
an increase of $25.5 million, or 13.0% from $196.1 million at December 31,
2008. Net loans receivable decreased $18.7 million, or 13.8% to $117.0 million
at September 30, 2009 from $135.7 million at December 31, 2008, primarily as a
result of mortgage loan sales in the secondary market. The Bank sold $12.7
million of fixed-rate mortgage loans in the current year as a balance sheet
management strategy to reduce long term interest rate risk in a potentially
rising interest rate environment. The Bank sold these loans at a net gain of
$49,000 which was recorded in other income, and expects to realize servicing
income on these loans as long as these loans have outstanding balances. The
decrease in net loans receivable and an increase in deposits has resulted in
an increase in investment securities. Investment securities increased $36.9
million, or 72.0% to $88.1 million at September 30, 2009 from $51.2 million at
December 31, 2008. The Company has reviewed its investment securities
portfolio at September 30, 2009, and has determined that no
other-than-temporary impairment exists in the portfolio. Total deposits
increased $32.6 million, or 25.6%, to $160.1 million at September 30, 2009
from $127.5 million at December 31, 2008. Short-Term and Long-Term borrowings
in the form of Federal Home Loan Bank advances decreased $8.3 million, or
18.3%, to $37.2 million at September 30, 2009 from $45.5 million at December
31, 2008 as a result of replacing wholesale borrowings with deposit growth
from all of the Bank's branches, including the Webster branch that opened on
September 14, 2009. Our deposit costs have decreased as market interest rates
remain at historically low levels. Stockholders' equity at September 30, 2009
was $20.5 million, or 9.24% of assets.

The credit quality of the Bank's loan portfolio remains solid. The Bank
continues to have no involvement in, and has no exposure to, sub-prime lending
activities. The Bank ended the third quarter with net loans receivable of
$117.0 million, with only $93,000 in non-performing loans comprised of two
residential properties. At September 30, 2009 management has evaluated the
Bank's loan loss reserve and believes it is adequately funded based on the
quality of the current loan portfolio.

FSB Community Bankshares, MHC owns 53% of the outstanding common stock of the
Company. The Company is a federally chartered corporation. The Bank conducts
business from its main office in Fairport, New York and three branches located
in Penfield, Irondequoit and Webster, New York. The Bank's principal business
consists of originating one-to-four-family residential real estate mortgages,
home equity loans and lines of credit, and to a lesser extent, commercial real
estate, multi-family, construction and other consumer loans. The Bank
attracts retail deposits from the general public in the areas surrounding its
main office and branches, offering a wide variety of deposit products.
Through its wholly owned subsidiary, Oakleaf Services Corporation, the Bank
offers non-deposit investment products, consisting of annuities, insurance
products and mutual funds.

Statements contained in this news release, which are not historical facts,
contain forward-looking statements as that term is defined in the Private
Securities Litigation Reform Act of 1995. Such forward-looking statements are
subject to risk and uncertainties, which could cause actual results to differ
materially from those currently anticipated due to a number of factors, which
include, but are not limited to, factors discussed in documents filed by the
Company with the Securities and Exchange Commission from time to time.

FSB COMMUNITY BANKSHARES, INC.

Selected Consolidated Balance Sheet Information
September 30, 2009 and December 31, 2008
(Dollars in thousands, except per share data)

(Unaudited)
September 30, December 31,
Assets 2009 2008
------ ------------- ------------

Total Assets $221,679 $196,135
Cash and Cash Equivalents 10,043 3,173
Investment Securities 88,071 51,214
Net Loans Receivable 116,963 135,713
Deposits 160,147 127,522
Short-Term and Long-Term Borrowings 37,172 45,481
Total Stockholders' Equity 20,474 20,041
Book value per share $11.87 $11.64
Stockholders' equity to total assets 9.24% 10.22%

FSB COMMUNITY BANKSHARES, INC.

Selected Consolidated Statement of Operations Information
Three Months and Nine Months Ended September 30, 2009 and
September 30, 2008
(In thousands except per share data)

(Unaudited)
For the Three Months For the Nine Months
Ended September 30, Ended September 30,
2009 2008 2009 2008

Interest and Dividend Income 2,350 2,614 7,210 7,555
Interest Expense 1,248 1,463 3,821 4,479
Net Interest Income 1,102 1,151 3,389 3,076
Provision for Loan Losses 7 8 21 14
Net Interest Income after
Provision for Loan Losses 1,095 1,143 3,368 3,062
Other Income 133 89 516 314
Other Expense 1,285 1,197 3,822 3,491
Income (Loss) Before
Income Taxes (57) 35 62 (115)
Provision (Benefit) for
Income Taxes (23) 34 18 (20)
Net Income (Loss) (34) 1 44 (95)

Net Income (Loss)
per common share (0.02) 0.00 0.03 (0.06)
Average common shares
outstanding 1,725 1,719 1,724 1,719

SOURCE FSB Community Bankshares, Inc.

Dana C. Gavenda, Chief Executive Officer, FSB Community Bankshares, Inc.,
+1-585-223-9080