----

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**SECURITIES        AND EXCHANGE COMMISSION**

**Washington,        D.C. 20549**

**FORM        10-QSB**

| x      | Quarterly                  Report Pursuant To Section 13 or 15(d) of the Securities Exchange                  Act of                  1934  |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                        |
|   | For                  the quarterly period ended March 31, 2007                                                                              |
|   |                                                                                                                                        |
| **OR** |
|   |                                                                                                                                        |
| o      | Transition                  Report Pursuant to Section 13 or 15(d) of the Securities Exchange                  Act of                  1934 |

**Commission        File No. 333-141380**

**FSB        Community Bankshares, Inc.**

| **United                  States**                                                               | **74-3164710**                                                            |
|--------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------|
| (State                  or other jurisdiction of incorporation                  or organization) | (I.R.S.                  Employer Identification                  Number) |
|                                                                                             |                                                                      |
|                                                                                             |                                                                      |
| **45                  South Main Street, Fairport, New                  York**                   | **14450**                                                                 |
| (Address                  of Principal Executive                  Offices)                       | Zip                  Code                                                 |

**(585)        223-9080**

**N/A**

----

**FSB        Community Bankshares, Inc. **

**FORM        10-QSB**

|                                               |                                                                                                               | Page   |
|----------------------------------------------------|--------------------------------------------------------------------------------------------------------------------|--------|
|                                               |                                                                                                               |   |
| **Part                  I. Financial Information** |
|                                               |                                                                                                               |   |
| Item                  1.                           | Consolidated                  Financial Statements (unaudited)                                                     |   |
|                                               |                                                                                                               |   |
|                                               | Consolidated                  Balance Sheets as of March 31, 2007                                                  |   |
|                                               | and                  December 31, 2006                                                                             | 1      |
|                                               |                                                                                                               |   |
|                                               | Consolidated                  Statements of Operations for the Three Months Ended                                  |   |
|                                               | March                  31, 2007 and 2006                                                                           | 2      |
|                                               |                                                                                                               |   |
|                                               | Consolidated                  Statements of Stockholder’s Equity for the Three Months                  Ended |   |
|                                               | March                  31, 2007 and 2006                                                                           | 3      |
|                                               |                                                                                                               |   |
|                                               | Consolidated                  Statements of Cash Flows for the Three Months Ended                                  |   |
|                                               | March                  31, 2007 and 2006                                                                           | 4      |
|                                               |                                                                                                               |   |
|                                               | Notes                  to Consolidated Financial Statements                                                        | 6      |
|                                               |                                                                                                               |   |
| Item                  2.                           | Management’s                  Discussion and Analysis or Plan of Operations                                  | 9      |
|                                               |                                                                                                               |   |
| Item                  3.                           | Controls                  and Procedures                                                                           | 18     |
|                                               |                                                                                                               |   |
| **Part                  II. Other Information**    |
|                                               |                                                                                                               |   |
| Item                  1.                           | Legal                  Proceedings                                                                                 | 18     |
|                                               |                                                                                                               |   |
| Item                  2.                           | Unregistered                  Sales of Equity Securities and Use of Proceeds                                       | 18     |
|                                               |                                                                                                               |   |
| Item                  3.                           | Defaults                  upon Senior Securities                                                                   | 18     |
|                                               |                                                                                                               |   |
| Item                  4.                           | Submission                  of Matters to a Vote of Security Holders                                               | 18     |
|                                               |                                                                                                               |   |
| Item                  5.                           | Other                  Information                                                                                 | 19     |
|                                               |                                                                                                               |   |
| Item                  6.                           | Exhibits                                                                                                           | 19     |
|                                               |                                                                                                               |   |
|                                               | Signature                  Page                                                                                    | 20     |

----

**Part        I. Financial Information**

**Item        1.**
**Consolidated        Financial Statements**

**FSB        COMMUNITY BANKSHARES, INC. **

| **Assets**                                                                             |   | **March                  31,****2007** |                    | **December                  31,****2006** |   |
|----------------------------------------------------------------------------------------|--------|----------------------------------------|-------------------------|-------------------------------------------|--------|
|                                                                                   |   |                                   |                    |                                      |   |
| Cash                  and due from banks                                               |   | $                                      | 1,273                   |                                      | $      | 1,202 |   |
| Interest-earning                  demand deposits                                      |   |                                   | 2,                  217 |                                      |   | 980 |   |
| Cash                  and Cash Equivalents                                             |   |                                   | 3,490                   |                                      |   | 2,182 |   |
|                                                                                   |   |                                   |                    |                                      |   |   |   |
| Securities                  available for sale                                         |   |                                   | 529                     |                                      |   | 604 |   |
| Securities                  held to maturity (fair value 2007- $22,310, 2006- $23,873) |   |                                   | 22,504                  |                                      |   | 24,191 |   |
| Investment                  in FHLB stock                                              |   |                                   | 1,203                   |                                      |   | 1,490 |   |
| Loans                  receivable, net of allowance for loan losses of $322            |   |                                   | 119,564                 |                                      |   | 121,137 |   |
| Accrued                  interest receivable                                           |   |                                   | 729                     |                                      |   | 873 |   |
| Premises                  and equipment, net                                           |   |                                   | 2,710                   |                                      |   | 2,146 |   |
| Other                  assets                                                          |   |                                   | 406                     |                                      |   | 200 |   |
| **Total                  Assets**                                                      |   | $                                      | 151,135                 |                                      | $      | 152,823 |   |
|                                                                                   |   |                                   |                    |                                      |   |   |   |
| **Liabilities**                                                                        |   |                                   |                    |                                      |   |   |   |
|                                                                                   |   |                                   |                         |                                      |   |   |   |
| Deposits:                                                                              |   |                                   |                    |                                      |   |   |   |
| Non-interest                  bearing                                                  |   | $                                      | 3,227                   |                                      | $      | 3,402 |   |
| Interest                  bearing                                                      |   |                                   | 110,992                 |                                      |   | 105,178 |   |
| Total                  Deposits                                                        |   |                                   | 114,219                 |                                      |   | 108,580 |   |
|                                                                                   |   |                                   |                    |                                      |   |   |   |
| Short                  term borrowings                                                 |   |                                   | -                       |                                      |   | 4,200 |   |
| Long                  term borrowings                                                  |   |                                   | 21,642                  |                                      |   | 23,824 |   |
| Advances                  from borrowers for taxes and insurance                       |   |                                   | 1,305                   |                                      |   | 1,828 |   |
| Other                  Liabilities                                                     |   |                                   | 284                     |                                      |   | 521 |   |
|  **Total                  Liabilities**                                           |   |                                   | 137,450                 |                                      |   | 138,953 |   |
|                                                                                   |   |                                   |                    |                                      |   |   |   |
| **Stockholder’s                  Equity**                                        |   |                                   |                    |                                      |   |   |   |
|                                                                                   |   |                                   |                    |                                      |   |   |   |
| Preferred                  Stock- No par- 1,000,000 shares authorized;                 |   |                                   | -                       |                                      |   | - |   |
| No                  shares issued and outstanding                                      |   |                                   |                    |                                      |   |   |   |
| Common                  Stock- $0.10 par value - 10,000,000 shares authorized;         |   |                                   | -                       |                                      |   | - |   |
| 100                  shares issued and outstanding                                     |   |                                   |                    |                                      |   |   |   |
| Additional                  paid in capital                                            |   |                                   | 10                      |                                      |   | 10 |   |
| Retained                  earnings                                                     |   |                                   | 13,370                  |                                      |   | 13,505 |   |
| Accumulated                  other comprehensive income                                |   |                                   | 305                     |                                      |   | 355 |   |
|  **Total                  Stockholder’s Equity**                            |   |                                   | 13,685                  |                                      |   | 13,870 |   |
|                                                                                   |   |                                   |                    |                                      |   |   |   |
|  **Total                  Liabilities and Stockholder’s Equity**            |   | $                                      | 151,135                 |                                      | $      | 152,823 |   |
|                                                                                   |   |                                   |                    |                                      |   |   |   |
|                                                                                   |   |                                   |                    |                                      |   |   |   |
| See                  accompanying notes to consolidated financial statements           |   |                                   |                    |                                      |   |   |   |

----

**FSB        COMMUNITY BANKSHARES, INC.**

|                                                                         |   | **2007** |   | **2006** |   |
|------------------------------------------------------------------------------|--------|----------|--------|----------|--------|
|                                                                         |   |     |   |     |   |
| **Interest                  and Dividend Income**                            |   |     |   |     |   |   |   |
| Loans                                                                        |   | $        | 1,794  |     | $      | 1,595 |   |
| Securities                                                                   |   |     | 235    |     |   | 218 |   |
| Mortgage-backed                  securities                                  |   |     | 59     |     |   | 81 |   |
| ** **Other                                                              |   |     | 6      |     |   | 27 |   |
|  **Total                  Interest and Dividend Income**                |   |     | 2,094  |     |   | 1,921 |   |
|                                                                         |   |     |   |     |   |   |   |
| **Interest                  expense**                                        |   |     |   |     |   |   |   |
| Deposits                                                                     |   |     | 962    |     |   | 742 |   |
| Borrowings:                                                                  |   |     |   |     |   |   |   |
| Short                  term                                                  |   |     | 30     |     |   | 7 |   |
| Long                  term                                                   |   |     | 261    |     |   | 213 |   |
|  **Total                  Interest Expense**                            |   |     | 1,253  |     |   | 962 |   |
|                                                                         |   |     |   |     |   |   |   |
|                                                                         |   |     |   |     |   |   |   |
|  **Net                  Interest Income**                               |   |     | 841    |     |   | 959 |   |
|                                                                         |   |     |   |     |   |   |   |
| **Other                  Income**                                            |   |     |   |     |   |   |   |
| Service                  fees                                                |   |     | 24     |     |   | 16 |   |
| Fee                  income                                                  |   |     | 22     |     |   | 24 |   |
| Other                                                                        |   |     | 35     |     |   | 28 |   |
|  **Total                  Other Income**                                |   |     | 81     |     |   | 68 |   |
|                                                                         |   |     |   |     |   |   |   |
| **Other                  Expenses**                                          |   |     |   |     |   |   |   |
| Salaries                  and employee benefits                              |   |     | 625    |     |   | 532 |   |
| Occupancy                  expense                                           |   |     | 107    |     |   | 67 |   |
| Data                  processing costs                                       |   |     | 24     |     |   | 19 |   |
| Advertising                                                                  |   |     | 102    |     |   | 34 |   |
| Equipment                  expense                                           |   |     | 93     |     |   | 78 |   |
| Electronic                  banking                                          |   |     | 7      |     |   | 21 |   |
| Directors                  fees                                              |   |     | 29     |     |   | 26 |   |
| Mortgage                  fees and taxes                                     |   |     | 24     |     |   | 31 |   |
| Other                  expense                                               |   |     | 121    |     |   | 114 |   |
|  **Total                  Other Expenses**                              |   |     | 1,132  |     |   | 922 |   |
|                                                                         |   |     |   |     |   |   |   |
|  **Income                  (Loss) Before Income Taxes**                 |   |     | (210   | )        |   | 105 |   |
|                                                                         |   |     |   |     |   |   |   |
|  **Provision                  (Benefit) for Income Taxes**              |   |     | (75    | )        |   | 38 |   |
|                                                                         |   |     |   |     |   |   |   |
|  **Net                  Income (Loss)**                                 |   | $        | (135   | )        | $      | 67 |   |
|                                                                         |   |     |   |     |   |   |   |
| See                  accompanying notes to consolidated financial statements |   |     |   |     |   |   |   |

----

**FSB        COMMUNITY BANKSHARES, INC.**

|                                                 |   | **Preferred****Stock** |   | **Common****Stock** |   | **Additional****Paid                  in****Capital** |   | **Retained****Earnings** |   | **Accumulated****Other****Comprehensive                  Income** |   | **Total** |   |
|------------------------------------------------------|--------|------------------------|--------|---------------------|--------|-------------------------------------------------------|--------|--------------------------|--------|-------------------------------------------------------------------|--------|-----------|--------|
|  **Balance                  - January 1, 2006** |   | $                      | -      |                | $      | -                                                     |   | $                        | 10     |                                                              | $      | 13,272    |   | $ | 336 |   | $ | 13,618 |   |
|                                                 |   |                   |   |                |   |                                                  |   |                     |   |                                                              |   |      |   |   |   |   |   |   |   |
| Comprehensive                  income                |   |                   |   |                |   |                                                  |   |                     |   |                                                              |   |      |   |   |   |   |   |   |   |
| Net                  income                          |   |                   |   |                |   |                                                  |   |                     |   |                                                              |   | 67        |   |   |  |   |   | 67 |   |
| Change                  in net unrealized gain       |   |                   |   |                |   |                                                  |   |                     |   |                                                              |   |      |   |   |   |   |   |   |   |
| on                  securities available for sale,   |   |                   |   |                |   |                                                  |   |                     |   |                                                              |   |      |   |   |   |   |   |   |   |
| net                  of taxes                        |   |                   | -      |                |   | -                                                     |   |                     | -      |                                                              |   | -         |   |   | (16 | ) |   | (16 | ) |
| **Total                  Comprehensive Income**      |   |                   |   |                |   |                                                  |   |                     |   |                                                              |   |      |   |   |   |   |   | 51 |   |
|                                                 |   |                   |   |                |   |                                                  |   |                     |   |                                                              |   |      |   |   |   |   |   |   |   |
| **Balance                  - March 31, 2006**        |   | $                      | -      |                | $      | -                                                     |   | $                        | 10     |                                                              | $      | 13,339    |   | $ | 320 |   | $ | 13,669 |   |
|                                                 |   |                   |   |                |   |                                                  |   |                     |   |                                                              |   |      |   |   |   |   |   |   |   |
|                                                 |   |                   |   |                |   |                                                  |   |                     |   |                                                              |   |      |   |   |   |   |   |   |   |
| **Balance                  - January 1, 2007**       |   | $                      | -      |                | $      | -                                                     |   | $                        | 10     |                                                              | $      | 13,505    |   | $ | 355 |   | $ | 13,870 |   |
|                                                 |   |                   |   |                |   |                                                  |   |                     |   |                                                              |   |      |   |   |   |   |   |   |   |
| Comprehensive                  loss                  |   |                   |   |                |   |                                                  |   |                     |   |                                                              |   |      |   |   |   |   |   |   |   |
| Net                  loss                            |   |                   |   |                |   |                                                  |   |                     |   |                                                              |   | (135      | )      |   |  |   |   | (135 | ) |
| Change                  in net unrealized gain       |   |                   |   |                |   |                                                  |   |                     |   |                                                              |   |      |   |   |   |   |   |   |   |
| on                  securities available for sale,   |   |                   |   |                |   |                                                  |   |                     |   |                                                              |   |      |   |   |   |   |   |   |   |
| net                  of taxes                        |   |                   | -      |                |   | -                                                     |   |                     | -      |                                                              |   | -         |   |   | (50 | ) |   | (50 | ) |
| **Total                  Comprehensive Loss**        |   |                   |   |                |   |                                                  |   |                     |   |                                                              |   |      |   |   |   |   |   | (185 | ) |
|                                                 |   |                   |   |                |   |                                                  |   |                     |   |                                                              |   |      |   |   |   |   |   |   |   |
| **Balance                  - March 31, 2007**        |   | $                      | -      |                | $      | -                                                     |   | $                        | 10     |                                                              | $      | 13,370    |   | $ | 305 |   | $ | 13,685 |   |

| See                  accompanying notes to consolidated financial                  statements |
|-----------------------------------------------------------------------------------------------|

----

**FSB        COMMUNITY BANKSHARES, INC.**

|                                                                             |   |     |   |
|----------------------------------------------------------------------------------|--------|----------|--------|
|                                                                             |   | **2007** |   | **2006** |   |
| **Cash                  Flows From Operating Activities**                        |   |     |   |   |   |   |   |
| Net                  income (loss)                                               |   | $        | (135   | ) | $ | 67 |   |
| Adjustments                  to reconcile net income (loss) to net cash provided |   |     |   |   |   |   |   |
| from                  operating activities:                                      |   |     |   |   |   |   |   |
| Amortization                  of premium on investments                          |   |     | 9      |   |   | 13 |   |
| Accretion                  of discount on investments                            |   |     | (1     | ) |   | (                  1 | ) |
| Amortization                  of net deferred loan origination costs             |   |     | (1     | ) |   | (41 | ) |
| Depreciation                  and amortization                                   |   |     | 76     |   |   | 57 |   |
| Deferred                  income tax benefit                                     |   |     | (23    | ) |   | (24 | ) |
| Decrease                  in accrued interest receivable                         |   |     | 144    |   |   | 42 |   |
| Increase                  in other assets                                        |   |     | (52    | ) |   | (276 | ) |
| Increase                  (decrease) in other liabilities                        |   |     | (192   | ) |   | 114 |   |
| **Net                  Cash Used By Operating Activities**                       |   |     | (175   | ) |   | (49 | ) |
|                                                                             |   |     |   |   |   |   |   |
| **Cash                  Flows From Investing Activities**                        |   |     |   |   |   |   |   |
| Purchase                  of securities held to maturity                         |   |     | (2,000 | ) |   | - |   |
| Proceeds                  from maturities and calls of securities                |   |     |   |   |   |   |   |
| held                  to maturity                                                |   |     | 3,679  |   |   | 489 |   |
| Net                  (increase) decrease in loans                                |   |     | 1,312  |   |   | (2,847 | ) |
| Proceeds                  from sales of loans                                    |   |     | 262    |   |   | - |   |
| Sale                  of Federal Home Loan Bank stock                            |   |     | 287    |   |   | 49 |   |
| Purchase                  of premises and equipment                              |   |     | (791   | ) |   | (39 | ) |
| Proceeds                  from sale of foreclosed real estate                    |   |     | -      |   |   | 225 |   |
| **Net                  Cash Provided (Used) By Investing Activities**            |   |     | 2,749  |   |   | (2,123 | ) |
|                                                                             |   |     |   |   |   |   |   |
| **Cash                  Flows From Financing Activities**                        |   |     |   |   |   |   |   |
| Net                  increase in deposits                                        |   |     | 5,639  |   |   | 2,165 |   |
| Net                  decrease in short term borrowings                           |   |     | (4,200 | ) |   | - |   |
| Repayments                  on long-term borrowings                              |   |     | (2,182 | ) |   | (1,103 | ) |
| Net                  decrease in advances from borrowers                         |   |     |   |   |   |   |   |
| for                  taxes and insurance                                         |   |     | (523   | ) |   | (388 | ) |
| **Net                  Cash Provided (Used) By Financing Activities**            |   |     | (1,266 | ) |   | 674 |   |
|                                                                             |   |     |   |   |   |   |   |
|  **Net                  Increase (Decrease) in Cash**                       |   |     | 1,308  |   |   | (1,498 | ) |
|  **and                  Cash Equivalents**                                  |   |     |   |   |   |   |   |
|                                                                             |   |     |   |   |   |   |   |
| **Cash                  and Cash Equivalents- Beginning**                        |   |     | 2,182  |   |   | 4,669 |   |
|                                                                             |   |     |   |   |   |   |   |
| **Cash                  and Cash Equivalents- End**                              |   | $        | 3,490  |   | $ | 3,171 |   |
|                                                                             |   |     |   |   |   |   |   |

----

**FSB        COMMUNITY BANKSHARES, INC.**

| Consolidated                  Statements of Cash Flows, Cont’d         |   |
|------------------------------------------------------------------------------|--------|
|                                                                         |   |   |   |
|                                                                         |   | **2007** |   | **2006** |   |
| **Supplementary                  Cash Flows Information**                    |   |   |   |   |   |   |   |
|                                                                         |   |   |   |   |   |   |   |
| Interest                  paid                                               |   | $ | 1,259 |   | $ | 962 |   |
|                                                                         |   |   |   |   |   |   |   |
| Income                  taxes paid                                           |   | $ | - |   | $ | - |   |
|                                                                         |   |   |   |   |   |   |   |
| See                  accompanying notes to consolidated financial statements |   |   |   |   |   |   |   |

----

**Notes        to Financial Statements**

**Note        1-Basis of Presentation**

**Note        2-Stock Issuance Plan**

----

**Note        3-Recent Accounting Pronouncements**

----

**Note        4-Comprehensive Income (Loss)**

|                                                                          |   |   | 2007                                        |   |   | 2006   |   |
|-------------------------------------------------------------------------------|--------|--------|---------------------------------------------|--------|--------|--------|--------|
|                                                                          |   |   |  (In                  Thousands)  |   |
|                                                                          |   |   |                                        |   |   |   |   |
| Unrealized                  holding loss on available for sale securities     |   | $      | (76                                         | )      | $      | (24    | )      |
| Less                  reclassification adjustment for realized gains included |   |   |                                        |   |   |   |   |
| in                  net income                                                |   |   | -                                           |   |   | -      |   |
|                                                                          |   |   |                                        |   |   |   |   |
| Net                  unrealized loss                                          |   |   | (76                                         | )      |   | (24    | )      |
|                                                                          |   |   |                                        |   |   |   |   |
| Tax                  effect                                                   |   |   | (26                                         | )      |   | (8     | )      |
|                                                                          |   |   |                                        |   |   |   |   |
| Net                  of tax amount                                       |   | $      | (50                                         | )      | $      | (16    | )      |

**Note        5-Earnings (Loss) Per Share**

----

**Item        2.**
**Management’s        Discussion or Plan of Operations**

**General**

**Forward        Looking Statement**
**s**

**Critical        Accounting Policies**

----

***Allowance        for Loan Losses.***

**Comparison        of Financial Condition at March 31, 2007 and December 31,        2006**

***Total        Assets***
**.        **

----

***Deposits        and Borrowings***
**.        **

***Stockholder’s        Equity***
**.        **

----

***Non-Performing        Assets.***

|                                                          |   | **March                  31, 2007**         |   | **December                  31, 2006** |   |
|---------------------------------------------------------------|--------|---------------------------------------------|--------|----------------------------------------|--------|
|                                                          |   | **(Dollars                  in thousands)** |   |
|                                                          |   |                                        |   |                                   |   |
| Non-accrual                  loans:                           |   |                                        |   |                                   |   |   |   |
| Real                  estate loans:                           |   |                                        |   |                                   |   |   |   |
| One-                  to four-family residential              |   | $                                           | 46     |                                   | $      | 143 |   |
| Home                  equity lines of credit                  |   |                                        | -      |                                   |   | 28 |   |
| Multi-family                  residential                     |   |                                        | -      |                                   |   | - |   |
| Construction                                                  |   |                                        | -      |                                   |   | - |   |
| Commercial                                                    |   |                                        | -      |                                   |   | - |   |
| Other                  loans                                  |   |                                        | -      |                                   |   | - |   |
| Total                                                         |   |                                        | 46     |                                   |   | 171 |   |
|                                                          |   |                                        |   |                                   |   |   |   |
| Accruing                  loans 90 days or more past due:     |   |                                        | -      |                                   |   | - |   |
|                                                          |   |                                        |   |                                   |   |   |   |
| Total                  non-performing loans                   |   |                                        | 46     |                                   |   | 171 |   |
|                                                          |   |                                        |   |                                   |   |   |   |
| Foreclosed                  real estate                       |   |                                        | -      |                                   |   | - |   |
| Other                  non-performing assets                  |   |                                        | -      |                                   |   | - |   |
|                                                          |   |                                        |   |                                   |   |   |   |
| Total                  non-performing                  assets |   | $                                           | 46     |                                   | $      | 171 |   |
|                                                          |   |                                        |   |                                   |   |   |   |
| Ratios:                                                       |   |                                        |   |                                   |   |   |   |
| Total                  non-performing loans to total loans    |   |                                        | 0.04   | %                                      |   | 0.14 | % |
| Total                  non-performing loans to total assets   |   |                                        | 0.03   | %                                      |   | 0.11 | % |
| Total                  non-performing assets to total assets  |   |                                        | 0.03   | %                                      |   | 0.11 | % |

----

***Average        balances and yields***

|                                                                                                            |   |                                        | **For                  the Quarter Ended March 31,** |   |
|-----------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------|------------------------------------------------------|--------|
|                                                                                                            |   |                                        | **2007**                                             |   |   | **2006** |   |
|                                                                                                            |   |                                        |                                                 |   |   | **Interest** |   |   |   |   |   |   |   |   | **Interest** |   |   |   |   |
|                                                                                                            |   |                                        | **Average**                                          |   |   | **Income/** |   |   | **Yield/** |   |   | **Average** |   |   | **Income/** |   |   | **Yield/** |   |
|                                                                                                            |   |                                        | **Balance**                                          |   |   | **Expense** |   |   | **Cost** |   |   | **Balance** |   |   | **Expense** |   |   | **Cost** |   |
|                                                                                                            |   | **(Dollars                  in thousands)** |
| **Interest-earning                  assets:**                                                                   |   |                                        |                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans                                                                                                      |   | $                                           | 120,473                                              |   | $ | 1,794 |   |   | 5.96 | % | $ | 109,657 |   |   | 1,595 |   |   | 5.82 | % |
| Securities                                                                                                 |   |                                        | 19,416                                               |   |   | 235 |   |   | 4.84 |   |   | 19,540 |   |   | 218 |   |   | 4.46 |   |
| Mortgage-backed                  securities                                                                |   |                                        | 5,773                                                |   |   | 59 |   |   | 4.09 |   |   | 7,640 |   |   | 81 |   |   | 4.24 |   |
| Other                                                                                                      |   |                                        | 454                                                  |   |   | 6 |   |   | 5.29 |   |   | 2,424 |   |   | 27 |   |   | 4.46 |   |
| Total                  interest-earning assets                                                                  |   |                                        | 146,116                                              |   |   | 2,094 |   |   | 5.73 |   |   | 139,261 |   |   | 1921 |   |   | 5.52 |   |
| Noninterest-earning                  assets                                                                |   |                                        | 4,694                                                |   |   |   |   |   |   |   |   | 3,375 |   |   |   |   |   |   |   |
| Total                  assets                                                                                   |   | $                                           | 150,810                                              |   |   |   |   |   |   |   | $ | 142,636 |   |   |   |   |   |   |   |
|                                                                                                            |   |                                        |                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Interest-bearing                  liabilities:**                                                              |   |                                        |                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| NOW                  accounts                                                                              |   | $                                           | 4,885                                                |   |   | 7 |   |   | 0.57 |   | $ | 3,250 |   |   | 4 |   |   | 0.49 |   |
| Passbook                  savings                                                                          |   |                                        | 12,190                                               |   |   | 31 |   |   | 1.02 |   |   | 12,243 |   |   | 15 |   |   | 0.49 |   |
| Money                  market savings  Individual                  retirement accounts      |   |                                        | 10,207                                               |   |   | 71 |   |   | 2.78 |   |   | 10,457 |   |   | 50 |   |   | 1.91 |   |
| 14,999                                                                                                          |   |                                        | 157                                                  |   |   | 4.19 |   |   | 14,848 |   |   | 134 |   |   | 3.61 |   |
| Certificates                  of deposit                                                                   |   |                                        | 65,462                                               |   |   | 696 |   |   | 4.25 |   |   | 61,765 |   |   | 539 |   |   | 3.49 |   |
| Federal                  Home Loan Bank advances                                                           |   |                                        | 24,193                                               |   |   | 291 |   |   | 4.81 |   |   | 20,606 |   |   | 220 |   |   | 4.27 |   |
| Total                  interest-bearing liabilities                                                             |   |                                        | 131,936                                              |   |   | 1,253 |   |   | 3.80 | % |   | 123,169 |   |   | 962 |   |   | 3.12 | % |
| **Noninterest-bearing                  liabilities:**                                                           |   |                                        |                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Demand                  deposits                                                                           |   |                                        | 3,246                                                |   |   |   |   |   |   |   |   | 4,134 |   |   |   |   |   |   |   |
| Other                                                                                                      |   |                                        | 1,844                                                |   |   |   |   |   |   |   |   | 1,764 |   |   |   |   |   |   |   |
| Total                  liabilities                                                                              |   |                                        | 137,026                                              |   |   |   |   |   |   |   |   | 129,067 |   |   |   |   |   |   |   |
| Stockholder’s                  equity                                                                |   |                                        | 13,784                                               |   |   |   |   |   |   |   |   | 13,660 |   |   |   |   |   |   |   |
| Total                  liabilities and stockholder’s equity                                               |   | $                                           | 150,810                                              |   |   |   |   |   |   |   | $ | 142,727 |   |   |   |   |   |   |   |
|                                                                                                            |   |                                        |                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                  interest income                                                                       |   |                                        |                                                 |   | $ | 841 |   |   |   |   |   |   |   | $ | 959 |   |   |   |   |
| Interest                  rate spread (1)                                                                  |   |                                        |                                                 |   |   |   |   |   | 1.93 | % |   |   |   |   |   |   |   | 2.40 | % |
| Net                  interest-earning assets (2)                                                           |   | $                                           | 14,180                                               |   |   |   |   |   |   |   | $ | 16,092 |   |   |   |   |   |   |   |
| Net                  interest margin (3)                                                                   |   |                                        |                                                 |   |   | 2.30 | % |   |   |   |   |   |   |   | 2.76 | % |   |   |   |
| Average                  interest-earning assets to average interest-bearing                  liabilities  |   |                                        | 111                                                  | %      |   |   |   |   |   |   |   | 113 | % |   |   |   |   |   |   |

*_____________________*

| (1) | Interest                  rate spread represents the difference between the yield on average                  interest-earning assets and the cost of average interest-bearing                  liabilities. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (2) | Net                  interest-earning assets represent total interest-earning assets                  less total                  interest-bearing liabilities.                                              |
| (3) | Net                  interest margin represents net interest income divided by total                  interest-earning assets.                                                                               |

----

**Comparison        of Operating Results for the Three Months Ended March 31, 2007 and March        31,        2006**

***General***
**.        **

***Interest        and Dividend Income***
**.        **

***Interest        Expense***
**.        **

----

***Net        Interest Income***
**.        **

***Provision        for Loan Losses***
**.        **

***Non-interest        Income***
**.        **

***Non-interest        Expense***
**.        **

***Income        Tax Expense/Benefit***
**.        **

**Liquidity        and Capital Resources**

----

|   | (i)    | expected                  loan demand;                                                              |
|--------|--------|-----------------------------------------------------------------------------------------------------|
|   |   |                                                                                                |
|   | (ii)   | expected                  deposit flows;                                                            |
|   |   |                                                                                                |
|   | (iii)  | yields                  available on interest-earning deposits and securities;                  and |
|   |   |                                                                                                |
|   | (iv)   | the                  objectives of our asset/liability management program.                          |

** **

----

**Off-Balance        Sheet Arrangements**

----

**Item        3.**
**Controls        and Procedures**

**Part        II - Other Information**

**Item        1. Legal Proceedings**

**Item        2. Unregistered Sales of Equity Securities and Use of        Proceeds**

|   | (a)    | There                  were no sales of unregistered securities during the period covered                  by this                  Report.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|   | (b)    | The                  Company commenced its initial stock offering on or about May 22,                  2007, and                  the offering is scheduled to be completed on or before August 13,                  2007.                  Subscriptions                  received in the offering have been earning interest at Fairport                  Savings                  Bank’s passbook savings rate. There have been no material changes in                  the                  Company’s projected use of the offering proceeds as from what was                  disclosed in the section entitled “How We Intend to Use the Proceeds From                  the Stock Offering” of                  the Company’s Prospectus filed pursuant to Rule 424(b)(3) with the SEC on                  May 23, 2007, as amended. |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|   | (c)    | There                  were no issuer repurchases of securities during the period covered                  by this                  Report.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |

**Item        3. Defaults Upon Senior Securities**

**Item        4. Submission of Matters to a Vote of Security Holders**

----

**Item        5. Other Information**

**Item        6. Exhibits**

|   | The                  following exhibits are either filed as part of this report or are                  incorporated herein by reference:                                                               |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                    |
| 3.1    | Charter                  of FSB Community Bankshares, Inc.*                                                                                                                                             |
|   |                                                                                                                                                                                                    |
| 3.2    | Bylaws                  of FSB Community Bankshares, Inc.*                                                                                                                                              |
|   |                                                                                                                                                                                                    |
| 4      | Form                  of Common Stock Certificate of FSB Community Bankshares,                  Inc.*                                                                                                   |
|   |                                                                                                                                                                                                    |
| 10.1   | Employment                  Agreement between FSB Community Bankshares, Inc. and Dana C.                  Gavenda*                                                                                      |
|   |                                                                                                                                                                                                    |
| 10.2   | Supplemental                  Executive Retirement Plan*                                                                                                                                                |
|   |                                                                                                                                                                                                    |
| 10.3   | Form                  of Employee Stock Ownership Plan*                                                                                                                                                 |
|   |                                                                                                                                                                                                    |
| 31.1   | Certification                  of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley                  Act of 2002                                                                    |
|   |                                                                                                                                                                                                    |
| 31.2   | Certification                  of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley                  Act of 2002                                                                    |
|   |                                                                                                                                                                                                    |
| 32     | Certification                  of Chief Executive Officer and Chief Financial Officer pursuant                  to                  Section 906 of the Sarbanes-Oxley Act of                  2002 |

|  | __________________________ |
|--|----------------------------|
| * | Filed                  as exhibits to the Company’s Registration Statement on Form SB-2, and any                  amendments thereto, with the Securities and Exchange Commission                  (Registration No. 333-141380). |
|---|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**SIGNATURES**

|   |                            |   | **FSB                  COMMUNITY BANKSHARES, INC.**                                 |
|--------|---------------------------------|--------|-------------------------------------------------------------------------------------|
|   |                            |   |                                                                                |
|   |                            |   |                                                                                |
| Date:  | August                  1, 2007 |   | /s/                  Dana C. Gavenda                                                |
|   |                            |   | Dana                  C. Gavenda                                                    |
|   |                            |   | President                  and Chief Executive Officer                              |
|   |                            |   |                                                                                |
|   |                            |   |                                                                                |
| Date:  | August                  1, 2007 |   | /s/                  Kevin D. Maroney                                               |
|   |                            |   | Kevin                  D. Maroney                                                   |
|   |                            |   | Senior                  Vice President and Chief Financial                  Officer |