----

----

| x | Quarterly Report Pursuant To Section 13 or 15(d) of the Securities Exchange Act of 1934 |
|---|-----------------------------------------------------------------------------------------|

| o | Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
|---|------------------------------------------------------------------------------------------|

|                                                   | FSB Community Bankshares, Inc. |   |
|--------------------------------------------------------|--------------------------------|--------|
| (Exact name of registrant as specified in its charter) |

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

| (585) 223-9080                        |
|---------------------------------------|
| (Registrant’s telephone number) |

|                                                          | N/A |   |
|---------------------------------------------------------------|-----|--------|
| (Former name or former address, if changed since last report) |

|                                        Large accelerated filer             o                |   | Accelerated filer                                   o |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                        Non-accelerated filer               o |   | Smaller reporting company                 x                                                                                                     |
| (Do not check if smaller reporting company)                                                                                                                                                                                                                                                                                                      |   |                                                                                                                                                                                                                                 |

----

|                          |                                                                                                     |   |
|-------------------------------|----------------------------------------------------------------------------------------------------------|--------|
|                          |                                                                                                     | Page   |
|                          |
| Part I. Financial Information |
|                          |                                                                                                     |   |
| Item 1.                       | Consolidated Financial Statements (unaudited)                                                            |   |
|                          |                                                                                                     |   |
|                          | Consolidated Balance Sheets as of March 31, 2011 and December 31, 2010                                   | 1      |
|                          |                                                                                                     |   |
|                          | Consolidated Statements of Income for the Three Months Ended March 31, 2011 and 2010                     | 2      |
|                          |                                                                                                     |   |
|                          | Consolidated Statements of Stockholders’ Equity for the Three Months Ended March 31, 2011 and 2010 | 3      |
|                          |                                                                                                     |   |
|                          | Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2011 and 2010                 | 4      |
|                          |                                                                                                     |   |
|                          | Notes to Consolidated Financial Statements                                                               | 5      |
|                          |                                                                                                     |   |
| Item 2.                       | Management’s Discussion and Analysis of Financial Condition and Results of Operations              | 18     |
|                          |                                                                                                     |   |
| Item 3.                       | Quantitative and Qualitative Disclosures about Market Risk                                               | 27     |
|                          |                                                                                                     |   |
| Item 4T.                      | Controls and Procedures                                                                                  | 27     |
|                          |                                                                                                     |   |
| Part II. Other Information    |
|                          |                                                                                                     |
| Item 1.                       | Legal Proceedings                                                                                        | 27     |
|                          |                                                                                                     |   |
| Item 1A.                      | Risk Factors                                                                                             | 27     |
|                          |                                                                                                     |   |
| Item 2.                       | Unregistered Sales of Equity Securities and Use of Proceeds                                              | 28     |
|                          |                                                                                                     |   |
| Item 3.                       | Defaults upon Senior Securities                                                                          | 28     |
|                          |                                                                                                     |   |
| Item 4.                       | [Removed and Reserved]                                                                                   | 28     |
|                          |                                                                                                     |   |
| Item 5.                       | Other Information                                                                                        | 28     |
|                          |                                                                                                     |   |
| Item 6.                       | Exhibits                                                                                                 | 28     |
|                          |                                                                                                     |   |
|                          | Signature Page                                                                                           | 29     |

----

| Assets                                                                                                                                                                                                                                                                                                                                 |   | March 31,2011 |    |   | December 31, 2010 |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------|---------|--------|-------------------|--------|
|                                                                                                                                                                                                                                                                                                                                   |   |          |    |   |              |   |
| Cash and due from banks                                                                                                                                                                                                                                                                                                                |   | $             | 3,715   |   |              | $      | 4,533 |   |
| Interest-earning demand deposits                                                                                                                                                                                                                                                                                                       |   |          | 4,405   |   |              |   | 3,301 |   |
|      Cash and Cash Equivalents                                                                                                                                                                                                                                                                                |   |          | 8,120   |   |              |   | 7,834 |   |
|                                                                                                                                                                                                                                                                                                                                   |   |          |    |   |              |   |   |   |
| Securities available for sale                                                                                                                                                                                                                                                                                                          |   |          | 70,429  |   |              |   | 72,634 |   |
| Securities held to maturity (fair value 2011 $7,169; 2010 $7,305)                                                                                                                                                                                                                                                                      |   |          | 7,040   |   |              |   | 7,183 |   |
| Investment in FHLB stock                                                                                                                                                                                                                                                                                                               |   |          | 1,487   |   |              |   | 1,513 |   |
| Loans receivable, net of allowance for loan losses (2011 $392; 2010  $384)                                                                                                                                                                                                                                                   |   |          | 116,323 |   |              |   | 114,819 |   |
| Bank owned life insurance                                                                                                                                                                                                                                                                                                              |   |          | 3,174   |   |              |   | 3,144 |   |
| Accrued interest receivable                                                                                                                                                                                                                                                                                                            |   |          | 829     |   |              |   | 888 |   |
| Premises and equipment, net                                                                                                                                                                                                                                                                                                            |   |          | 2,745   |   |              |   | 2,705 |   |
| Prepaid FDIC premium                                                                                                                                                                                                                                                                                                                   |   |          | 514     |   |              |   | 579 |   |
| Other assets                                                                                                                                                                                                                                                                                                                           |   |          | 748     |   |              |   | 1,108 |   |
|                                  Total Assets                                                                                                                     |   | $             | 211,409 |   |              | $      | 212,407 |   |
|                                                                                                                                                                                                                                                                                                                                   |   |          |    |   |              |   |   |   |
|                                                Liabilities & Stockholders’ Equity |   |          |    |   |              |   |   |   |
|                                                                                                                                                                                                                                                                                                                                   |   |          |    |   |              |   |   |   |
| Deposits:                                                                                                                                                                                                                                                                                                                              |   |          |    |   |              |   |   |   |
|      Non-interest-bearing                                                                                                                                                                                                                                                                                     |   | $             | 3,737   |   |              | $      | 3,705 |   |
|      Interest-bearing                                                                                                                                                                                                                                                                                         |   |          | 159,455 |   |              |   | 158,701 |   |
|                 Total Deposits                                                                                                                                                                                                                         |   |          | 163,192 |   |              |   | 162,406 |   |
|                                                                                                                                                                                                                                                                                                                                   |   |          |    |   |              |   |   |   |
| Borrowings                                                                                                                                                                                                                                                                                                                             |   |          | 26,218  |   |              |   | 26,732 |   |
| Advances from borrowers for taxes and insurance                                                                                                                                                                                                                                                                                        |   |          | 1,372   |   |              |   | 1,926 |   |
| Official bank checks                                                                                                                                                                                                                                                                                                                   |   |          | 200     |   |              |   | 363 |   |
| Other liabilities                                                                                                                                                                                                                                                                                                                      |   |          | 202     |   |              |   | 488 |   |
|                             Total Liabilities                                                                                                                                              |   |          | 191,184 |   |              |   | 191,915 |   |
|                                                                                                                                                                                                                                                                                                                                   |   |          |    |   |              |   |   |   |
|                                             Stockholders’ Equity                                     |   |          |    |   |              |   |   |   |
|                                                                                                                                                                                                                                                                                                                                   |   |          |    |   |              |   |   |   |
| Preferred Stock- no par value- 1,000,000 shares authorized;                                                                                                                                                                                                                                                                            |   |          |    |   |              |   |   |   |
|   no shares issued and outstanding                                                                                                                                                                                                                                                                                           |   |          | -       |   |              |   | - |   |
| Common Stock- $0.10 par value – 10,000,000 shares authorized;                                                                                                                                                                                                                                                                    |   |          |    |   |              |   |   |   |
|   1,785,000 shares issued and outstanding                                                                                                                                                                                                                                                                                    |   |          | 179     |   |              |   | 179 |   |
| Additional paid-in-capital                                                                                                                                                                                                                                                                                                             |   |          | 7,268   |   |              |   | 7,269 |   |
| Retained earnings                                                                                                                                                                                                                                                                                                                      |   |          | 13,491  |   |              |   | 13,537 |   |
| Accumulated other comprehensive income (loss)                                                                                                                                                                                                                                                                                          |   |          | (162    | )      |              |   | 67 |   |
| Unearned ESOP shares – at cost                                                                                                                                                                                                                                                                                                   |   |          | (551    | )      |              |   | (560 | )  |
|                         Total Stockholders’ Equity                                                                                                                                                       |   |          | 20,225  |   |              |   | 20,492 |   |
|                                                                                                                                                                                                                                                                                                                                   |   |          |    |   |              |   |   |   |
|                         Total Liabilities and Stockholders’ Equity                                                                                                                                       |   | $             | 211,409 |   |              | $      | 212,407 |   |
|                                                                                                                                                                                                                                                                                                                                   |   |          |    |   |              |   |   |   |
| See accompanying notes to consolidated financial statements                                                                                                                                                                                                                                                                            |   |          |    |   |              |   |   |   |

----

|                                                                                                                                                |   |   |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|
|                                                                                                                                                |   | 2011   |   |   | 2010 |   |
|                                                                                                                                                |   |   |   |   |   |   |
| Interest and Dividend Income                                                                                                                        |   |   |   |   |   |   |
|     Loans                                                                                                                       |   | $      | 1,524  |   |   | $ | 1,593 |   |
|     Securities – taxable                                                                                                  |   |   | 264    |   |   |   | 447 |   |
|     Securities – tax exempt                                                                                               |   |   | 12     |   |   |   | - |   |
|     Mortgage-backed securities                                                                                                  |   |   | 240    |   |   |   | 217 |   |
|     Other                                                                                                                       |   |   | 2      |   |   |   | 2 |   |
|                 Total Interest and Dividend Income                  |   |   | 2,042  |   |   |   | 2,259 |   |
|                                                                                                                                                |   |   |   |   |   |   |   |   |
| Interest expense                                                                                                                                    |   |   |   |   |   |   |   |   |
|     Deposits                                                                                                                    |   |   | 505    |   |   |   | 735 |   |
|  Borrowings                                                                                                                                    |   |   | 229    |   |   |   | 354 |   |
|                 Total Interest Expense                              |   |   | 734    |   |   |   | 1,089 |   |
|                                                                                                                                                |   |   |   |   |   |   |   |   |
|                 Net Interest Income                                 |   |   | 1,308  |   |   |   | 1,170 |   |
| Provision for Loan Losses                                                                                                                           |   |   | 8      |   |   |   | 3 |   |
|                 Net Interest Income After Provision for Loan Losses |   |   | 1,300  |   |   |   | 1,167 |   |
|                                                                                                                                                |   |   |   |   |   |   |   |   |
| Other Income                                                                                                                                        |   |   |   |   |   |   |   |   |
| Service fees                                                                                                                                        |   |   | 44     |   |   |   | 57 |   |
| Fee income                                                                                                                                          |   |   | 3      |   |   |   | 6 |   |
| Realized loss on sale of securities                                                                                                                 |   |   | -      |   |   |   | (8 | ) |
| Increase in cash surrender value of bank owned life insurance                                                                                       |   |   | 30     |   |   |   | 33 |   |
| Realized gain on sale of loans                                                                                                                      |   |   | 46     |   |   |   | 14 |   |
| Mortgage fee income                                                                                                                                 |   |   | 55     |   |   |   | 30 |   |
| Other                                                                                                                                               |   |   | 30     |   |   |   | 27 |   |
|              Total Other Income                                                    |   |   | 208    |   |   |   | 159 |   |
|                                                                                                                                                |   |   |   |   |   |   |   |   |
| Other Expense                                                                                                                                       |   |   |   |   |   |   |   |   |
|      Salaries and employee benefits                                                                                        |   |   | 855    |   |   |   | 687 |   |
|      Occupancy expense                                                                                                     |   |   | 173    |   |   |   | 150 |   |
|      Data processing costs                                                                                                 |   |   | 27     |   |   |   | 17 |   |
|      Advertising                                                                                                           |   |   | 43     |   |   |   | 41 |   |
|      Equipment expense                                                                                                     |   |   | 125    |   |   |   | 103 |   |
|      Electronic banking                                                                                                    |   |   | 22     |   |   |   | 16 |   |
|      Directors’ fees                                                                                                 |   |   | 32     |   |   |   | 27 |   |
|      Mortgage fees and taxes                                                                                               |   |   | 55     |   |   |   | 30 |   |
|      FDIC premium expense                                                                                                  |   |   | 70     |   |   |   | 57 |   |
|      Other expense                                                                                                         |   |   | 195    |   |   |   | 175 |   |
|              Total Other Expenses                                                  |   |   | 1,597  |   |   |   | 1,303 |   |
|                                                                                                                                                |   |   |   |   |   |   |   |   |
|              Income (Loss ) Before Income Taxes                                    |   |   | (89    | ) |   |   | 23 |   |
|                                                                                                                                                |   |   |   |   |   |   |   |   |
|               Provision (Benefit) for Income Taxes                            |   |   | (43    | ) |   |   |  (10 | ) |
|                                                                                                                                                |   |   |   |   |   |   |   |   |
|              Net Income (Loss)                                                     |   | $      | (46    | ) |   | $ | 33 |   |
|               Earnings (Loss) per common share – basic and diluted           |   | $      | (0.03  | ) |   | $ | 0.02 |   |
|  See accompanying notes to consolidated financial statements                                                                                   |   |   |   |   |   |   |   |   |

----

|                                                                                                                    |   | Common Stock |   |   | AdditionalPaid in Capital |   |   | RetainedEarnings |   |   | Accumulated Other Comprehensive Income (Loss) |   |   | UnearnedESOPShares |   |   | Total  |   |
|-------------------------------------------------------------------------------------------------------------------------|--------|--------------|--------|--------|---------------------------|--------|--------|------------------|--------|--------|-----------------------------------------------|--------|--------|--------------------|--------|--------|--------|--------|
| Balance – January 1, 2010                                                                                         |   | $            | 179    |   |                      | $      | 7,275  |             |   | $      | 13,317                                        |   |   | $                  | 174    |   |   | $      | (595 | ) |   | $ | 20,350 |   |
|                                                                                                                    |   |         |   |   |                      |   |   |             |   |   |                                          |   |   |               |   |   |   |   |   |   |   |   |   |   |
|    Comprehensive income:                                                                                 |   |         |   |   |                      |   |   |             |   |   |                                          |   |   |               |   |   |   |   |   |   |   |   |   |   |
|         Net income                                                              |   |         | -      |   |                      |   | -      |             |   |   | 33                                            |   |   |               | -      |   |   |   | - |   |   |   | 33 |   |
| Change in net unrealized gain on securities available for sale, net of reclassification adjustment and taxes            |   |         | -      |   |                      |   | -      |             |   |   | -                                             |   |   |               | 265    |   |   |   | - |   |   |   | 265 |   |
|        Total Comprehensive Income                                                    |   |         |   |   |                      |   |   |             |   |   |                                          |   |   |               |   |   |   |   |   |   |   |   | 298 |   |
|   ESOP shares committed to be                                                                                 |   |         |   |   |                      |   |   |             |   |   |                                          |   |   |               |   |   |   |   |   |   |   |   |   |   |
|              Released (875 shares)                     |   |         | -      |   |                      |   | (1     | )                |   |   | -                                             |   |   |               | -      |   |   |   | 9 |   |   |   | 8 |   |
| Balance – March 31, 2010                                                                                          |   | $            | 179    |   |                      | $      | 7,274  |             |   | $      | 13,350                                        |   |   | $                  | 439    |   |   | $      | (586 | ) |   | $ | 20,656 |   |
|                                                                                                                    |   |         |   |   |                      |   |   |             |   |   |                                          |   |   |               |   |   |   |   |   |   |   |   |   |   |
| Balance – January 1, 2011                                                                                         |   | $            | 179    |   |                      | $      | 7,269  |             |   | $      | 13,537                                        |   |   | $                  | 67     |   |   | $      | (560 | ) |   | $ | 20,492 |   |
|                                                                                                                    |   |         |   |   |                      |   |   |             |   |   |                                          |   |   |               |   |   |   |   |   |   |   |   |   |   |
|    Comprehensive loss:                                                                                   |   |         |   |   |                      |   |   |             |   |   |                                          |   |   |               |   |   |   |   |   |   |   |   |   |   |
|         Net loss                                                                |   |         | -      |   |                      |   | -      |             |   |   | (46                                           | )      |   |               | -      |   |   |   | - |   |   |   | (46 | ) |
| Change in net unrealized  loss on securities available for sale, net of reclassification adjustment and taxes |   |         | -      |   |                      |   | -      |             |   |   | -                                             |   |   |               | (229   | )      |   |   | - |   |   |   | (229 | ) |
|        Total Comprehensive Loss                                                      |   |         |   |   |                      |   |   |             |   |   |                                          |   |   |               |   |   |   |   |   |   |   |   | (275 | ) |
|  ESOP shares committed to be                                                                                       |   |         |   |   |                      |   |   |             |   |   |                                          |   |   |               |   |   |   |   |   |   |   |   |   |   |
|              Released (875 shares)                     |   |         | -      |   |                      |   | (1     | )                |   |   | -                                             |   |   |               | -      |   |   |   | 9 |   |   |   | 8 |   |
| Balance – March 31, 2011                                                                                          |   | $            | 179    |   |                      | $      | 7,268  |             |   | $      | 13,491                                        |   |   | $                  | (162   | )      |   | $      | (551 | ) |   | $ | 20,225 |   |
|                                                                                                                    |   |         |   |   |                      |   |   |             |   |   |                                          |   |   |               |   |   |   |   |   |   |   |   |   |   |

----

|                                                                                                                                                                                                                 |   |   |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|
|                                                                                                                                                                                                                 |   | 2011   |   |   | 2010 |   |
| Cash Flows From Operating Activities                                                                                                                                                                                 |   |   |   |   |   |   |
| Net income (loss)                                                                                                                                                                                                    |   | $      | (46    | ) |   | $ | 33 |   |
| Adjustments to reconcile net income to net cash used by operating activities:                                                                                                                                        |   |   |   |   |   |   |   |   |
| Net amortization of premiums and discounts on investments                                                                                                                                                            |   |   | 174    |   |   |   | 280 |   |
|        Gain on sale of securities available for sale                                                                                                                              |   |   | -      |   |   |   | (2 | ) |
|        Loss on sale of securities held to maturity                                                                                                                                |   |   | -      |   |   |   | 10 |   |
|        Gain on sale of loans                                                                                                                                                      |   |   | (46    | ) |   |   | (14 | ) |
|        Proceeds from loans sold                                                                                                                                                   |   |   | 83     |   |   |   | 2,125 |   |
|        Loans originated for sale                                                                                                                                                  |   |   | (37    | ) |   |   | (2,111 | ) |
|        Amortization of net deferred loan origination costs                                                                                                                        |   |   | 5      |   |   |   | 15 |   |
|        Amortization of premium on FHLB advances                                                                                                                                   |   |   | 49     |   |   |   | - |   |
|        Depreciation and amortization                                                                                                                                              |   |   | 98     |   |   |   | 78 |   |
|        Provision for loan losses                                                                                                                                                  |   |   | 8      |   |   |   | 3 |   |
|        Expense related to ESOP                                                                                                                                                    |   |   | 8      |   |   |   | 8 |   |
|        Deferred income tax benefit                                                                                                                                                |   |   | (59    | ) |   |   | (16 | ) |
|        Earnings on investment in bank owned life insurance                                                                                                                        |   |   | (30    | ) |   |   | (33 | ) |
|        Decrease (increase) in accrued interest receivable                                                                                                                         |   |   | 59     |   |   |   | (87 | ) |
|        Decrease in prepaid FDIC premium                                                                                                                                           |   |   | 65     |   |   |   | 54 |   |
|        Decrease (increase) in other assets                                                                                                                                        |   |   | 360    |   |   |   | (489 | ) |
|        Decrease in other liabilities                                                                                                                                              |   |   | (109   | ) |   |   | (81 | ) |
|                         Net Cash Provided By/(Used By) Operating Activities                  |   |   | 582    |   |   |   | (227 | ) |
|                                                                                                                                                                                                                 |   |   |   |   |   |   |   |   |
| Cash Flows From Investing Activities                                                                                                                                                                                 |   |   |   |   |   |   |   |   |
| Purchases of securities available for sale                                                                                                                                                                           |   |   | (5,544 | ) |   |   | (21,506 | ) |
| Proceeds from maturities and calls of securities available for sale                                                                                                                                                  |   |   | 5,500  |   |   |   | 17,000 |   |
| Proceeds from sales of securities available for sale                                                                                                                                                                 |   |   | -      |   |   |   | 11 |   |
| Proceeds from principal paydowns on securities available for sale                                                                                                                                                    |   |   | 1,732  |   |   |   | 3,380 |   |
| Proceeds from principal paydowns on securities held to maturity                                                                                                                                                      |   |   | 139    |   |   |   | 114 |   |
| Proceeds from sales of securities held to maturity                                                                                                                                                                   |   |   | -      |   |   |   | 686 |   |
| Net decrease (increase) in loans                                                                                                                                                                                     |   |   | (1,517 | ) |   |   | 3,204 |   |
| Redemption of FHLB stock                                                                                                                                                                                             |   |   | 26     |   |   |   | 150 |   |
| Purchase of premises and equipment                                                                                                                                                                                   |   |   | (138   | ) |   |   | (56 | ) |
|                         Net Cash Provided By Investing Activities                            |   |   | 198    |   |   |   | 2,983 |   |
|                                                                                                                                                                                                                 |   |   |   |   |   |   |   |   |
| Cash Flows From Financing Activities                                                                                                                                                                                 |   |   |   |   |   |   |   |   |
| Net increase in deposits                                                                                                                                                                                             |   |   | 786    |   |   |   | 6,680 |   |
| Proceeds from borrowings                                                                                                                                                                                             |   |   | 2,000  |   |   |   | - |   |
| Repayments on borrowings                                                                                                                                                                                             |   |   | (2,563 | ) |   |   | (3,330 | ) |
| Net decrease in advances from borrowers for taxes and insurance                                                                                                                                                      |   |   | (554   | ) |   |   | (666 | ) |
| Net increase (decrease) in official bank checks                                                                                                                                                                      |   |   | (163   | ) |   |   | 38 |   |
|                         Net Cash Provided By/(Used By) Financing Activities                  |   |   | (494   | ) |   |   | 2,722 |   |
|                                                                                                                                                                                                                 |   |   |   |   |   |   |   |   |
|                         Net Increase in Cash                                                 |   |   |   |   |   |   |   |   |
|                                 and Cash Equivalents |   |   | 286    |   |   |   | 5,478 |   |
|                                                                                                                                                                                                                 |   |   |   |   |   |   |   |   |
| Cash and Cash Equivalents- Beginning                                                                                                                                                                                 |   |   | 7,834  |   |   |   | 5,965 |   |
|                                                                                                                                                                                                                 |   |   |   |   |   |   |   |   |
| Cash and Cash Equivalents- Ending                                                                                                                                                                                    |   | $      | 8,120  |   |   | $ | 11,443 |   |

| Supplementary Cash Flows Information                              |   |   |   |   |   |   |
|-------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|
|                                                              |   |   |   |   |   |   |
|         Interest paid     |   | $      | 741    |   |   | $      | 1,101 |   |
|                                                              |   |   |   |   |   |   |   |   |
|         Income taxes paid |   | $      | -      |   |   | $      | - |   |
|                                                              |   |   |   |   |   |   |   |   |

----

----

| March 31, 2011Securities Available for Sale:(In Thousands)    |   | Total  |   |   | Level 1 |   |   | Level 2 |   |   | Level 3 |   |
|---------------------------------------------------------------|--------|--------|--------|--------|---------|--------|--------|---------|--------|--------|---------|--------|
|                                                          |   |   |   |   |    |   |   |    |   |   |    |   |   |   |   |   |
| U.S. Government and agency obligations                        |   | $      | 37,582 |   |    | $      | 2,000  |    |   | $      | 35,582  |   |   | $ | - |   |
| Mortgage-backed securities - residential                      |   |   | 28,994 |   |    |   | -      |    |   |   | 28,994  |   |   |   | - |   |
| SBA pools                                                     |   |   | 3,853  |   |    |   | -      |    |   |   | 3,853   |   |   |   | - |   |
| Total Available for Sale Securities                           |   | $      | 70,429 |   |    | $      | 2,000  |    |   | $      | 68,429  |   |   | $ | - |   |
|                                                          |   |
| December 31, 2010Securities Available for Sale:(In Thousands) |   | Total  |   |   | Level 1 |   |   | Level 2 |   |   | Level 3 |   |
| U.S. Government and agency obligations                        |   | $      | 39,336 |   |    | $      | 8,014  |    |   | $      | 31,322  |   |   | $ | - |   |
| Mortgage-backed securities - residential                      |   |   | 29,361 |   |    |   | 1,673  |    |   |   | 27,688  |   |   |   | - |   |
| SBA pools                                                     |   |   | 3,937  |   |    |   | -      |    |   |   | 3,937   |   |   |   | - |   |
| Total Available for Sale Securities                           |   | $      | 72,634 |   |    | $      | 9,687  |    |   | $      | 62,947  |   |   | $ | - |   |

----

----

|                             |   | March 31, 2011 |    |   | December 31, 2010 |   |
|----------------------------------|--------|----------------|---------|--------|-------------------|--------|
|                             |   | CarryingAmount |    |   | FairValue         |   |   | CarryingAmount |   |   | FairValue |   |
|                             |   | (In Thousands) |    |
| Financial assets:                |   |           |    |   |              |   |   |   |   |   |   |   |
| Cash and due from banks          |   | $              | 3,715   |   |              | $      | 3,715 |   |   | $ | 4,533 |   |   | $ | 4,533 |   |
| Interest bearing demand deposits |   |           | 4,405   |   |              |   | 4,405 |   |   |   | 3,301 |   |   |   | 3,301 |   |
| Securities available for sale    |   |           | 70,429  |   |              |   | 70,429 |   |   |   | 72,634 |   |   |   | 72,634 |   |
| Securities held to maturity      |   |           | 7,040   |   |              |   | 7,169 |   |   |   | 7,183 |   |   |   | 7,305 |   |
| FHLB stock                       |   |           | 1,487   |   |              |   | 1,487 |   |   |   | 1,513 |   |   |   | 1,513 |   |
| Loans, net                       |   |           | 116,323 |   |              |   | 117,349 |   |   |   | 114,819 |   |   |   | 116,692 |   |
| Accrued interest receivable      |   |           | 829     |   |              |   | 829 |   |   |   | 888 |   |   |   | 888 |   |
|                             |   |           |    |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Financial liabilities:           |   |           |    |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Deposits                         |   |           | 163,192 |   |              |   | 162,130 |   |   |   | 162,406 |   |   |   | 161,165 |   |
| Borrowings                       |   |           | 26,218  |   |              |   | 24,803 |   |   |   | 26,732 |   |   |   | 25,107 |   |
| Accrued interest payable         |   |           | 61      |   |              |   | 61 |   |   |   | 68 |   |   |   | 68 |   |
|                             |   |           |    |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Off-balance sheet instruments:   |   |           |    |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Commitments to extend credit     |   |           | -       |   |              |   | - |   |   |   | - |   |   |   | - |   |

----

|                                                                                                            |   | AmortizedCost  |   |   | GrossUnrealizedGains |   |   | GrossUnrealizedLosses |   |   | FairValue |   |
|-----------------------------------------------------------------------------------------------------------------|--------|----------------|--------|--------|----------------------|--------|--------|-----------------------|--------|--------|-----------|--------|
|                                                                                                            |   | (In Thousands) |   |
| March 31, 2011:                                                                                                 |   |           |   |   |                 |   |   |                  |   |   |      |   |
| Available for Sale:                                                                                             |   |           |   |   |                 |   |   |                  |   |   |      |   |
|             U.S. Government and agency obligations  |   | $              | 38,166 |   |                 | $      | 25     |                  |   | $      | (609      | )      |   | $ | 37,582 |   |
|            Mortgage-backed securities - residential |   |           | 28,673 |   |                 |   | 484    |                  |   |   | (163      | )      |   |   | 28,994 |   |
|            SBA pools                                     |   |           | 3,835  |   |                 |   | 18     |                  |   |   | -         |   |   |   | 3,853 |   |

|                                   |   | $      | 70,674 |   |   | $      | 527    |   |   | $      | (772   | )      |   | $      | 70,429 |   |
|----------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Held to Maturity:                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Mortgage-backed securities-residential |   | $      | 4,777  |   |   | $      | 166    |   |   | $      | -      |   |   | $      | 4,943  |   |
| State and Municipal securities         |   |   | 2,263  |   |   |   | 1      |   |   |   | (38    | )      |   |   | 2,226  |   |
|                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                   |   |   | 7,040  |   |   |   | 167    |   |   |   | (38    | )      |   |   | 7,169  |   |

| December 31, 2010:                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |
|-----------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Available for Sale:                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |
|             U.S. Government and agency obligations  |   | $      | 39,764 |   |   |   | 32     |   |   |   | (460   | )      |   |   | 39,336 |   |
|            Mortgage-backed securities - residential |   |   | 28,882 |   |   |   | 539    |   |   |   | (60    | )      |   |   | 29,361 |   |
| SBA pools                                                                                                       |   |   | 3,886  |   |   |   | 51     |   |   |   | -      |   |   |   | 3,937 |   |

|                                                |   | $      | 72,532 |   |   | $      | 622    |   |   | $      | (520   | )      |   | $      | 72,634 |   |
|-----------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Held to Maturity:                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Mortgage-backed securities – residential |   | $      | 4,918  |   |   | $      | 182    |   |   | $      | -      |   |   | $      | 5,100  |   |
| State and Municipal securities                      |   |   | 2,265  |   |   |   | -      |   |   |   | (60    | )      |   |   | 2,205  |   |
|                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                |   |   | 7,183  |   |   |   | 182    |   |   |   | (60    | )      |   |   | 7,305  |   |

----

|                                           |   | Available for Sale |   |   | Held to Maturity    |   |
|------------------------------------------------|--------|--------------------|--------|--------|---------------------|--------|
|                                           |   | Amortized Cost     |   |   | EstimatedFair Value |   |   | Amortized Cost |   |   | EstimatedFair Value |   |
|                                           |   | (In Thousands)     |   |   | (In Thousands)      |   |
|                                           |   |               |   |   |                |   |   |   |   |   |   |   |   |   |   |   |
| Due in one year or less                        |   | $                  | -      |   |                | $      | - |   |   | $ | - |   |   | $ | - |   |
| Due after one year through five years          |   |               | 2,500  |   |                |   | 2,506 |   |   |   | 946 |   |   |   | 931 |   |
| Due after five years through ten years         |   |               | 19,544 |   |                |   | 19,461 |   |   |   | 1,317 |   |   |   | 1,295 |   |
| Due after ten years                            |   |               | 16,122 |   |                |   | 15,615 |   |   |   | - |   |   |   | - |   |
| Mortgage-backed securities – residential |   |               | 28,673 |   |                |   | 28,994 |   |   |   | 4,777 |   |   |   | 4,943 |   |
| SBA pools                                      |   |               | 3,835  |   |                |   | 3,853 |   |   |   | - |   |   |   | - |   |
|                                           |   |               |   |   |                |   |   |   |   |   |   |   |   |   |   |   |
|                                           |   | $                  | 70,674 |   |                | $      | 70,429 |   |   | $ | 7,040 |   |   | $ | 7,169 |   |

----

|                                      |   | Less than 12 Months |   |   | 12 Months or More       |   |   | Total     |   |
|-------------------------------------------|--------|---------------------|--------|--------|-------------------------|--------|--------|-----------|--------|
|                                      |   | FairValue           |   |   | Gross Unrealized Losses |   |   | FairValue |   |   | Gross Unrealized Losses |   |   | FairValue |   |   | Gross Unrealized Losses |   |
|                                      |   | (In Thousands)      |   |
|                                      |   |                |   |   |                    |   |   |      |   |   |   |   |   |   |   |   |   |   |
| March 31, 2011:                           |   |                |   |   |                    |   |   |      |   |   |   |   |   |   |   |   |   |   |
| Available for Sale                        |   |                |   |   |                    |   |   |      |   |   |   |   |   |   |   |   |   |   |
| U.S. Government and agency obligations    |   | $                   | 30,056 |   |                    | $      | 609    |      |   | $ | - |   |   | $ | - |   |   | $ | 30,056 |   |   | $ | 609 |   |
| Mortgaged-backed securities - residential |   |                | 15,366 |   |                    |   | 163    |      |   |   | - |   |   |   | - |   |   |   | 15,366 |   |   |   | 163 |   |
| Held to Maturity                          |   |                |   |   |                    |   |   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| State and Municipal securities            |   |                | 1,716  |   |                    |   | 38     |      |   |   | - |   |   |   | - |   |   |   | 1,716 |   |   |   | 38 |   |
|                                      |   |                |   |   |                    |   |   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                      |   | $                   | 47,138 |   |                    | $      | 810    |      |   | $ | - |   |   | $ | - |   |   | $ | 47,138 |   |   | $ | 810 |   |

| December 31, 2010:                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|-------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Available for Sale                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| U.S. Government and agency obligations    |   | $      | 24,757 |   |   | $      | 460    |   |   | $      | -      |   |   | $      | -      |   |   | $      | 24,757 |   |   | $ | 460 |   |
| Mortgaged-backed securities - residential |   |   | 8,387  |   |   |   | 60     |   |   |   | -      |   |   |   | -      |   |   |   | 8,387 |   |   |   | 60 |   |
| Held to Maturity                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| State and Municipal securities            |   |   | 1,875  |   |   |   | 60     |   |   |   | -      |   |   |   | -      |   |   |   | 1,875 |   |   |   | 60 |   |
|                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                      |   | $      | 35,019 |   |   | $      | 580    |   |   | $      | -      |   |   | $      | -      |   |   | $      | 35,019 |   |   | $ | 580 |   |

----

|                                      |   | 2011           |    |   | 2010   |   |
|-------------------------------------------|--------|----------------|---------|--------|--------|--------|
|                                      |   | (In Thousands) |    |
|                                      |   |           |    |   |   |   |
| Real estate loans:                        |   |           |    |   |   |   |
| Secured by one to four family residences  |   | $              | 104,163 |   |   | $      | 102,637 |   |
| Secured by five or more family residences |   |           | 1,153   |   |   |   | 1,165 |   |
| Construction                              |   |           | 100     |   |   |   | 652 |   |
| Commercial                                |   |           | 1,967   |   |   |   | 1,395 |   |
| Home equity lines of credit               |   |           | 8,880   |   |   |   | 8,900 |   |
| Other                                     |   |           | 76      |   |   |   | 73 |   |

| Total Loans                         |   |   | 116,339 |   |   |   | 114,822 |   |
|-------------------------------------|--------|--------|---------|--------|--------|--------|---------|--------|
|                                |   |   |    |   |   |   |    |   |
| Net deferred loan origination costs |   |   | 376     |   |   |   | 381     |   |
| Allowance for loan losses           |   |   | (392    | )      |   |   | (384    | )      |
|                                |   |   |    |   |   |   |    |   |
| Net Loans                           |   | $      | 116,323 |   |   | $      | 114,819 |   |

|                                                                |   | 2011   |   |
|---------------------------------------------------------------------|--------|--------|--------|
|                                                                |   |   |   |   |
| Balance at January 1                                                |   | $      | 384    |   |
|        Provision for loan losses |   |   | 8      |   |
| Loans charged-off                                                   |   |   | -      |   |
| Recoveries                                                          |   |   | -      |   |
|                                                                |   |   |   |   |
| Balance at March 31                                                 |   | $      | 392    |   |

----

----

----

|                                |   |                                   |   |   |                                      |   |   |         |   |   |       |   |   |       |   |   |              |   |   |   |   |
|-------------------------------------|--------|----------------------------------------|--------|--------|-------------------------------------------|--------|--------|--------------|--------|--------|------------|--------|--------|------------|--------|--------|-------------------|--------|--------|--------|--------|
|                                |   | Secured by 1-4 family residential |   |   | Secured by more than 4 family residential |   |   | Construction |   |   | Commercial |   |   | HomeEquity |   |   | Other/Unallocated |   |   | Total  |   |
| Allowance for Loan Losses:          |   |                                   |   |   |                                      |   |   |         |   |   |       |   |   |       |   |   |              |   |   |   |   |
| Beginning Balance December 31, 2010 |   |                                   | 242    |   |                                      |   | 9      |         |   |   | 3          |   |   |       | 14     |   |              |   | 55     |   |   |   | 61 |   |   |   | 384 |   |
| Charge Offs                         |   |                                   | -      |   |                                      |   | -      |         |   |   | -          |   |   |       | -      |   |              |   | -      |   |   |   | - |   |   |   | - |   |
| Recoveries                          |   |                                   | -      |   |                                      |   | -      |         |   |   | -          |   |   |       | -      |   |              |   | -      |   |   |   | - |   |   |   | - |   |
| Provisions                          |   |                                   | 63     |   |                                      |   | -      |         |   |   | (2         | )      |   |       | 6      |   |              |   | (11    | )      |   |   | (48 | ) |   |   | 8 |   |
| Ending Balance March 31, 2011 (1)   |   |                                   | 305    |   |                                      |   | 9      |         |   |   | 1          |   |   |       | 20     |   |              |   | 44     |   |   |   | 13 |   |   |   | 392 |   |

|                        |   | Pass   |    |   | Special Mention |   |   | Substandard |   |   | Doubtful |   |   | Total  |   |
|-----------------------------|--------|--------|---------|--------|-----------------|--------|--------|-------------|--------|--------|----------|--------|--------|--------|--------|
| One-to-four residential     |   | $      | 103,479 |   |            |   | -      |        |   | $      | 684      |   |   |   | -      |   |   | $ | 104,163 |   |
| Home equity lines of credit |   |   | 8,880   |   |            |   | -      |        |   |   | -        |   |   |   | -      |   |   |   | 8,880 |   |
| Multi-family residential    |   |   | 1,153   |   |            |   | -      |        |   |   | -        |   |   |   | -      |   |   |   | 1,153 |   |
| Construction                |   |   | 100     |   |            |   | -      |        |   |   | -        |   |   |   | -      |   |   |   | 100 |   |
| Commercial                  |   |   | 1,967   |   |            |   | -      |        |   |   | -        |   |   |   | -      |   |   |   | 1,967 |   |
| Other loans                 |   |   | 76      |   |            |   | -      |        |   |   | -        |   |   |   | -      |   |   |   | 76 |   |
| Total                       |   | $      | 115,655 |   |            |   | -      |        |   | $      | 684      |   |   |   | -      |   |   | $ | 116,339 |   |

----

|                        |   | Pass   |    |   | SpecialMention |   |   | Substandard |   |   | Doubtful |   |   | Total  |   |
|-----------------------------|--------|--------|---------|--------|----------------|--------|--------|-------------|--------|--------|----------|--------|--------|--------|--------|
| One-to-four residential     |   | $      | 102,580 |   |           |   | -      |        |   | $      | 57       |   |   |   | -      |   |   | $ | 102,637 |   |
| Home equity lines of credit |   |   | 8,784   |   |           |   | -      |        |   |   | 116      |   |   |   | -      |   |   |   | 8,900 |   |
| Multi-family residential    |   |   | 1,165   |   |           |   | -      |        |   |   | -        |   |   |   | -      |   |   |   | 1,165 |   |
| Construction                |   |   | 652     |   |           |   | -      |        |   |   | -        |   |   |   | -      |   |   |   | 652 |   |
| Commercial                  |   |   | 1,395   |   |           |   | -      |        |   |   | -        |   |   |   | -      |   |   |   | 1,395 |   |
| Other loans                 |   |   | 73      |   |           |   | -      |        |   |   | -        |   |   |   | -      |   |   |   | 73 |   |
| Total                       |   | $      | 114,649 |   |           |   | -      |        |   | $      | 173      |   |   |   | -      |   |   | $ | 114,822 |   |

|                           |   | 30-59 Days Past Due    |   |   | 60-89 Days Past Due |   |   | Greater than 90 Days |   |   | Total PastDue |   |   | Current |   |   | Total Loans Receivable |   |
|--------------------------------|--------|------------------------|--------|--------|---------------------|--------|--------|----------------------|--------|--------|---------------|--------|--------|---------|--------|--------|------------------------|--------|
|                           |   | (Dollars in thousands) |   |
| At March 31, 2011              |   |                   |   |   |                |   |   |                 |   |   |          |   |   |    |   |   |                   |   |
| Real estate loans:             |   |                   |   |   |                |   |   |                 |   |   |          |   |   |    |   |   |                   |   |
| One-to-four-family residential |   | $                      | 359    |   |                | $      | 325    |                 |   | $      | -             |   |   | $       | 684    |   |                   | $      | 103,479 |   |   | $ | 104,163 |   |
| Home equity lines of credit    |   |                   | -      |   |                |   | -      |                 |   |   | -             |   |   |    | -      |   |                   |   | 8,880 |   |   |   | 8,880 |   |
| Multi-family residential       |   |                   | -      |   |                |   | -      |                 |   |   | -             |   |   |    | -      |   |                   |   | 1,153 |   |   |   | 1,153 |   |
| Construction                   |   |                   | -      |   |                |   | -      |                 |   |   | -             |   |   |    | -      |   |                   |   | 100 |   |   |   | 100 |   |
| Commercial                     |   |                   | -      |   |                |   | -      |                 |   |   | -             |   |   |    | -      |   |                   |   | 1,967 |   |   |   | 1,967 |   |
| Other loans                    |   |                   | -      |   |                |   | -      |                 |   |   | -             |   |   |    | -      |   |                   |   | 76 |   |   |   | 76 |   |
|   Total              |   | $                      | 359    |   |                | $      | 325    |                 |   | $      | -             |   |   | $       | 684    |   |                   | $      | 115,655 |   |   | $ | 116,339 |   |
|                           |   |                   |   |   |                |   |   |                 |   |   |          |   |   |    |   |   |                   |   |   |   |   |   |   |   |
| At December 31, 2010           |   |                   |   |   |                |   |   |                 |   |   |          |   |   |    |   |   |                   |   |   |   |   |   |   |   |
| Real estate loans:             |   |                   |   |   |                |   |   |                 |   |   |          |   |   |    |   |   |                   |   |   |   |   |   |   |   |
| One-to-four-family residential |   | $                      | 57     |   |                | $      | -      |                 |   | $      | -             |   |   | $       | 57     |   |                   | $      | 102,580 |   |   | $ | 102,637 |   |
| Home equity lines of credit    |   |                   | 116    |   |                |   | -      |                 |   |   | -             |   |   |    | 116    |   |                   |   | 8,784 |   |   |   | 8,900 |   |
| Multi-family residential       |   |                   | -      |   |                |   | -      |                 |   |   | -             |   |   |    | -      |   |                   |   | 1,165 |   |   |   | 1,165 |   |
| Construction                   |   |                   | -      |   |                |   | -      |                 |   |   | -             |   |   |    | -      |   |                   |   | 652 |   |   |   | 652 |   |
| Commercial                     |   |                   | -      |   |                |   | -      |                 |   |   | -             |   |   |    | -      |   |                   |   | 1,395 |   |   |   | 1,395 |   |
| Other loans                    |   |                   | -      |   |                |   | -      |                 |   |   | -             |   |   |    | -      |   |                   |   | 73 |   |   |   | 73 |   |
|   Total              |   | $                      | 173    |   |                | $      | -      |                 |   | $      | -             |   |   | $       | 173    |   |                   | $      | 114,649 |   |   | $ | 114,822 |   |

----

|                                                                                   |   | For the Three MonthsEnded March 31, |   |
|----------------------------------------------------------------------------------------|--------|-------------------------------------|--------|
|                                                                                   |   | 2011                                |   |   | 2010 |   |
|  Unrealized holding gain (loss) on available for sale securities                  |   | $                                   | (347   | ) |   | $ | 404 |   |
| Reclassification adjustment for realized  gain included in net income (loss) |   |                                | -      |   |   |   | (2 | ) |
| Net Unrealized Gain (Loss)                                                             |   |                                | (347   | ) |   |   | 402 |   |
|  Tax effect                                                                       |   |                                | (118   | ) |   |   |  137 |   |
|            Net of tax amount    |   | $                                   | (229   | ) |   | $ | 265 |   |

----

----

----

----

----

----

|                                                                    |   | For the Three months Ended March 31, |      |
|-------------------------------------------------------------------------|--------|--------------------------------------|-----------|
|                                                                    |   | 2011                                 |      |   | 2010 |   |
|                                                                    |   | Average Balance                      |      |   | Interest Income/Expense |   |   | Yield/Cost |   |   | Average Balance |   |   | Interest Income/Expense |   |   | Yield/Cost |   |
|                                                                    |   | (Dollars in thousands)               |      |
| Interest-earning assets:                                                |   |                                 |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans                                                                   |   | $                                    | 116,029   |   |   | $ | 1,524 |   |   |   | 5.25 | % |   | $ | 114,369 |   |   | $ | 1,593 |   |   |   | 5.57 | % |
| Securities - taxable                                                    |   |                                 | 44,732    |   |   |   | 264 |   |   |   | 2.36 |   |   |   | 59,222 |   |   |   | 447 |   |   |   | 3.02 |   |
| Mortgage-backed securities                                              |   |                                 | 34,235    |   |   |   | 240 |   |   |   | 2.80 |   |   |   | 25,700 |   |   |   | 217 |   |   |   | 3.38 |   |
| State and Municipal securities (1)                                      |   |                                 | 2,263     |   |   |   | 18 |   |   |   | 3.18 |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Other                                                                   |   |                                 | 5,804     |   |   |   | 2 |   |   |   | 0.14 |   |   |   | 6,206 |   |   |   | 2 |   |   |   | 0.13 |   |
| Total interest-earning assets                                           |   |                                 | 203,063   |   |   |   | 2,048 |   |   |   | 4.03 | % |   |   | 205,497 |   |   |   | 2,259 |   |   |   | 4.40 | % |
| Non-interest-earning assets                                             |   |                                 | 8,791     |   |   |   |   |   |   |   |   |   |   |   | 9,577 |   |   |   |   |   |   |   |   |   |
| Total assets                                                            |   | $                                    | 211,854   |   |   |   |   |   |   |   |   |   |   | $ | 215,074 |   |   |   |   |   |   |   |   |   |
|                                                                    |   |                                 |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing liabilities:                                           |   |                                 |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                    |   |                                 |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| NOW accounts                                                            |   | $                                    | 11,531    |   |   | $ | 12 |   |   |   | 0.42 | % |   | $ | 9,014 |   |   | $ | 16 |   |   |   | 0.71 | % |
| Passbook savings                                                        |   |                                 | 24,946    |   |   |   | 28 |   |   |   | 0.45 |   |   |   | 26,887 |   |   |   | 73 |   |   |   | 1.09 |   |
| Money market savings Individual retirement accounts                |   |                                 | 27,586    |   |   |   | 49 |   |   |   | 0.71 |   |   |   | 23,422 |   |   |   | 65 |   |   |   | 1.11 |   |
|                                                                    |   | 18,306                               |      |   |   | 109 |   |   |   | 2.38 |   |   |   | 18,072 |   |   |   | 141 |   |   |   | 3.12 |   |
| Certificates of deposit                                                 |   |                                 | 76,730    |   |   |   | 307 |   |   |   | 1.60 |   |   |   | 77,485 |   |   |   | 440 |   |   |   | 2.27 |   |
| Borrowings                                                              |   |                                 | 26,302    |   |   |   | 229 |   |   |   | 3.48 |   |   |   | 33,060 |   |   |   | 354 |   |   |   | 4.28 |   |
| Total interest-bearing liabilities                                      |   |                                 | 185,401   |   |   |   | 734 |   |   |   | 1.58 | % |   |   | 187,940 |   |   |   | 1,089 |   |   |   | 2.32 | % |
| Non-interest-bearing liabilities:                                       |   |                                 |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Demand deposits                                                         |   |                                 | 3,793     |   |   |   |   |   |   |   |   |   |   |   | 3,940 |   |   |   |   |   |   |   |   |   |
| Other                                                                   |   |                                 | 2,308     |   |   |   |   |   |   |   |   |   |   |   | 2,646 |   |   |   |   |   |   |   |   |   |
| Total liabilities                                                       |   |                                 | 191,502   |   |   |   |   |   |   |   |   |   |   |   | 194,526 |   |   |   |   |   |   |   |   |   |
| Stockholders’ equity                                              |   |                                 | 20,352    |   |   |   |   |   |   |   |   |   |   |   | 20,548 |   |   |   |   |   |   |   |   |   |
| Total liabilities and stockholders’ equity                        |   | $                                    | 211,854   |   |   |   |   |   |   |   |   |   |   | $ | 215,074 |   |   |   |   |   |   |   |   |   |
|                                                                    |   |                                 |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net interest income                                                     |   |                                 |      |   |   | $ | 1,314 |   |   |   |   |   |   |   |   |   |   | $ | 1,170 |   |   |   |   |   |
| Interest rate spread (2)                                                |   |                                 |      |   |   |   |   |   |   |   | 2.45 | % |   |   |   |   |   |   |   |   |   |   | 2.08 | % |
| Net interest-earning assets (3)                                         |   | $                                    | 17,662    |   |   |   |   |   |   |   |   |   |   | $ | 17,557 |   |   |   |   |   |   |   |   |   |
| Net interest margin (4)                                                 |   |                                 |      |   |   |   | 2.59 | % |   |   |   |   |   |   |   |   |   |   | 2.28 | % |   |   |   |   |
| Average interest-earning assets to average interest-bearing liabilities |   |                                 |  110 | % |   |   |   |   |   |   |   |   |   |   |  109 | % |   |   |   |   |   |   |   |   |

| (1) | Tax-exempt interest income is presented on a tax equivalent basis using a 35 percent federal tax rate. |
|-----|--------------------------------------------------------------------------------------------------------|

| (2)  | Interest rate spread represents the difference between the yield on average interest-earning assets and the cost of average interest-bearing liabilities. |
|-----------|-----------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities. |
|-----|--------------------------------------------------------------------------------------------------------------|

| (4) | Net interest margin represents net interest income divided by total interest-earning assets. |
|-----|----------------------------------------------------------------------------------------------|

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|   | (a) | There were no sales of unregistered securities during the period covered by this Report. |
|--------|-----|------------------------------------------------------------------------------------------|

|   | (b) | Not applicable. |
|--------|-----|-----------------|

|   | (c) | There were no issuer repurchases of securities during the period covered by this Report. |
|--------|-----|------------------------------------------------------------------------------------------|

|   | 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 | Supplemental Executive Retirement Plan* |
|--------|------|-----------------------------------------|

|   | 10.2 | Form of Employee Stock Ownership Plan* |
|--------|------|----------------------------------------|

|   | 10.3 | Supplemental Executive Retirement Plan for K. Maroney** |
|--------|------|---------------------------------------------------------|

|   | 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) on March 16, 2007. |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ** | Filed as an exhibit to the Company’s Current Report on Form 8-K, file with the Securities and Exchange Commission on August 4, 2010. |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------|

----

|               |   | FSB COMMUNITY BANKSHARES, INC.                       |   |
|--------------------|--------|------------------------------------------------------|--------|
|               |   |                                                 |   |
| Date: May 13, 2011 |   | /s/ Dana C. Gavenda                                  |   |
|               |   | Dana C. Gavenda                                      |   |
|               |   | President and Chief Executive Officer                |   |
|               |   |                                                 |   |
| Date: May 13, 2011 |   | /s/ Kevin D. Maroney                                 |   |
|               |   | Kevin D. Maroney                                     |   |
|               |   | Executive Vice President and Chief Financial Officer |   |