|                               |
|------------------------------------|
| EXHIBIT      13                    |
|                               |
| PORTIONS      OF                   |
| ANNUAL      REPORT TO SHAREHOLDERS |

----

----

----

----

|   |    |                                                                                                                                                                                                                                          |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | ● | Operating      as a community-oriented retail financial institution with branch expansion      primarily in eastern Monroe County, New York;                                                                                                  |
|   |    |                                                                                                                                                                                                                                          |
|   | ● | Continuing      to manage our interest rate risk;                                                                                                                                                                                             |
|   |    |                                                                                                                                                                                                                                          |
|   | ● | Aggressively      marketing our core deposits; increasing our share of lower-cost checking      accounts, cross selling our deposit products, and enhancing transaction      convenience with wider ATM access at no cost to the    customer; |
|   |    |                                                                                                                                                                                                                                          |
|   | ● | Continuing      to emphasize the origination of residential real estate    loans;                                                                                                                                                             |
|   |    |                                                                                                                                                                                                                                          |
|   | ● | Maintaining      high asset quality; and                                                                                                                                                                                                      |
|   |    |                                                                                                                                                                                                                                          |
|   | ● | Increasing      non-interest revenues                                                                                                                                                                                                         |

|   |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | ● | Retail-Oriented      Community Financial Institution. Fairport Savings Bank was      established in Fairport, New York in 1888 and has been operating      continuously since that time. We are committed to meeting the financial      needs of the communities we serve and we are dedicated to providing      personalized quality service to our customers. We believe that we can be      more effective than many of our competitors in serving our customers      because of the ability of our senior management to promptly and      effectively respond to customer requests and inquiries. We intend to      continue to use the mutual holding company structure to maintain Fairport      Savings Bank as a community-oriented, independent savings bank. We intend      to open our fourth branch location in the Town of Webster in the third      quarter of 2009 and we plan to open one or two new branch offices in      Monroe County in the next three to five years, depending on market      conditions and as opportunities present  themselves. |

----

|   | ● | Managing      Our Interest Rate Risk. Our assets currently consist primarily of      one- to-four family fixed-rate loans with terms of up to 30 years, while      our liabilities consist of shorter-term deposits, primarily certificates      of deposit which carry higher interest rates and are more sensitive to      changes in interest rates than passbook or savings accounts. The      composition of our interest-earning assets and interest-bearing      liabilities increases the risk that we will be adversely affected by      changes in interest rates and the relative spread between short-term and      long-term interest rates. Consequently, we have adopted strategies to      improve our interest rate risk. These strategies include reducing our      fixed-rate loan originations added to our loan portfolio by selling select      fixed rate mortgages, investing a portion of funds received from loan      payments and repayments in shorter-term and intermediate term, liquid      investment securities and securities classified as available for sale      including US Government Agency and mortgage-backed securities, emphasizing      the marketing of our passbook, savings and checking accounts, money market      accounts and increasing the duration whenever possible of our certificates      of deposit, and longer duration Federal Home Loan Bank      borrowings. |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   |    | If      the Federal Reserve Bank continues to keep interest rates low in 2009, we      expect a decrease in our cost of funds on deposits and borrowings, which      would positively affect our interest bearing liabilities as our      certificates of deposit and borrowings mature and reprice at a lower cost      to us. We have $50.1 million in certificate of deposit accounts (including      individual retirement accounts) that are scheduled to mature during 2009.      If we retain these deposits, it will most likely be at a lower cost to us      than their current contractual rate.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|   |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   | ● | Emphasizing      Residential Real Estate Lending. Historically, we have emphasized      the origination of one-to-four family residential loans within Monroe      County and the surrounding counties of Livingston, Ontario, Orleans and      Wayne. As of December 31, 2008, 91.4% of our loan portfolio consisted of      one-to-four family residential loans, and 99.9% of our loan portfolio      consisted of loans secured by real estate. We intend to continue to      emphasize originating loans secured by residential real estate. The      decrease in both the prime rate and in the treasury rates will continue to      have a decreasing effect on the yield on our average assets in      2009.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   | ● | Maintaining      High Asset Quality. We believe that our      high asset quality is a result of conservative underwriting standards, the      diligence of our loan collection personnel and the stability of the local      economy. At December 31, 2008, our ratio of non-performing loans to total      loans was 0.11%. At December 31, 2008, our ratio of allowance for loan      losses to non-performing loans was 236.3% and our ratio of allowance for      loan losses to total loans was 0.25%. Because 99.9% of our loans are      secured by real estate, and our level of non-performing loans has been low      in recent periods, we believe that our allowance for loan losses is      adequate to absorb the probable losses inherent in our loan portfolio. The      Bank continues not to be involved in, and has no exposure to, sub-prime or      Alt-A lending activities. Management continues to actively monitor the      performance of the loan portfolio during these difficult economic      times.                                                                                                                                                                                                                                                                                                                                                                                        |

----

|                                    |   |                     |    |   |                     |   |
|-----------------------------------------|--------|--------------------------|---------|--------|--------------------------|--------|
|                                    |   | At      December 31,2008 |    |   | At      December 31,2007 |   |
|                                    |   | (In      thousands)      |    |
| Selected      Financial Condition Data: |   |                     |    |   |                     |   |
|                                    |   |                     |    |   |                     |   |
| Total      assets                       |   | $                        | 196,135 |   |                     | $      | 167,630 |   |
| Cash      and cash equivalents          |   |                     | 3,173   |   |                     |   | 9,444 |   |
| Securities      available for sale      |   |                     | 43,925  |   |                     |   | 244 |   |
| Securities      held to maturity        |   |                     | 7,289   |   |                     |   | 28,550 |   |
| Loans,      net                         |   |                     | 135,713 |   |                     |   | 124,326 |   |
| Deposits                                |   |                     | 127,522 |   |                     |   | 119,158 |   |
| Federal      Home Loan Bank advances    |   |                     | 45,481  |   |                     |   | 25,581 |   |
| Stockholder’s      equity         |   |                     | 20,041  |   |                     |   | 20,149 |   |

|                                                     |   |                                 |   |   |   |   |
|----------------------------------------------------------|--------|--------------------------------------|--------|--------|--------|--------|
|                                                     |   | For      the Year Ended December 31, |   |
|                                                     |   | 2008                                 |   |   | 2007   |   |
|                                                     |   | (In      thousands)                  |   |
| Selected      Operating Data:                            |   |                                 |   |   |   |   |
|                                                     |   |                                 |   |   |   |   |
| Interest      and dividend income                        |   | $                                    | 10,159 |   |   | $      | 8,815 |   |
| Interest      expense                                    |   |                                 | 5,862  |   |   |   | 5,369 |   |
| Net      interest income                                 |   |                                 | 4,297  |   |   |   | 3,446 |   |
| Provision      for loan losses                           |   |                                 | 24     |   |   |   | ― |   |
| Net      interest income after provision for loan losses |   |                                 | 4,273  |   |   |   | 3,446 |   |
| Non-interest      income                                 |   |                                 | 453    |   |   |   | 429 |   |
| Non-interest      expense                                |   |                                 | 4,657  |   |   |   | 4,312 |   |
| Income      (loss) before income taxes                   |   |                                 | 69     |   |   |   | (437 | ) |
| Provision      (benefit) for income taxes                |   |                                 | 44     |   |   |   | (156 | ) |
| Net      income (loss)                                   |   | $                                    | 25     |   |   | $      | (281 | ) |

----

|                                                                              |   |                                           |   |   |   |   |
|-----------------------------------------------------------------------------------|--------|------------------------------------------------|--------|--------|--------|--------|
|                                                                              |   | At      or For the YearEnded      December 31, |   |
|                                                                              |   | 2008                                           |   |   | 2007   |   |
|                                                                              |   |                                           |   |   |   |   |
| Selected      Financial Ratios and Other Data:                                    |   |                                           |   |   |   |   |
|                                                                              |   |                                           |   |   |   |   |
| Performance      Ratios:                                                          |   |                                           |   |   |   |   |
| Return      on average assets                                                     |   |                                           | 0.01   | %      |   |   | (0.18 | )% |
| Return      on average equity                                                     |   |                                           | 0.12   | %      |   |   | (1.69 | )% |
| Interest      rate spread (1)                                                     |   |                                           | 1.91   | %      |   |   | 1.81 | % |
| Net      interest margin (2)                                                      |   |                                           | 2.30   | %      |   |   | 2.25 | % |
| Efficiency      ratio (3)                                                         |   |                                           | 98.04  | %      |   |   | 111.28 | % |
| Non-interest      income to average total assets                                  |   |                                           | 0.24   | %      |   |   | 0.27 | % |
| Non-interest      expense to average total assets                                 |   |                                           | 2.42   | %      |   |   | 2.71 | % |
| Average      interest-earning assets to average interest-bearing      liabilities |   |                                           | 113    | %      |   |   | 112 | % |
|                                                                              |   |                                           |   |   |   |   |   |   |
| Asset      Quality Ratios:                                                        |   |                                           |   |   |   |   |   |   |
| Non-performing      assets as a percent of total assets                           |   |                                           | 0.07   | %      |   |   | 0.04 | % |
| Non-performing      loans as a percent of total loans                             |   |                                           | 0.11   | %      |   |   | 0.05 | % |
| Allowance      for loan losses as a percent of non-performing loans               |   |                                           | 236.3  | %      |   |   | 506.35 | % |
| Allowance      for loan losses as a percent of total loans                        |   |                                           | 0.25   | %      |   |   | 0.26 | % |
|                                                                              |   |                                           |   |   |   |   |   |   |
| Capital      Ratios:                                                              |   |                                           |   |   |   |   |   |   |
| Total      risk-based capital (to risk-weighted assets)                           |   |                                           | 20.52  | %      |   |   | 22.23 | % |
| Tier      1 leverage (core) capital (to adjusted tangible assets)                 |   |                                           | 8.47   | %      |   |   | 9.89 | % |
| Tangible      capital (to tangible assets)                                        |   |                                           | 8.47   | %      |   |   | 9.89 | % |
| Tier      1 risk-based capital (to risk-weighted assets)                          |   |                                           | 20.09  | %      |   |   | 21.81 | % |
| Average      equity to average total assets                                       |   |                                           | 10.42  | %      |   |   | 10.45 | % |
|                                                                              |   |                                           |   |   |   |   |   |   |
| Other      Data:                                                                  |   |                                           |   |   |   |   |   |   |
| Number      of full service offices                                               |   |                                           | 3      |   |   |   | 3 |   |

| (1) | Represents      the difference between the weighted-average yield on interest-earning      assets and the weighted-average cost of interest-bearing liabilities for      the period. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (2) | The      net interest margin represents net interest income as a percent of average      interest-earning assets for the period.                                                     |
| (3) | The      efficiency ratio represents non-interest expense divided by the sum of net      interest income and non-interestincome.                                                     |

----

----

----

----

----

|                                                                              |   |                        |   |   |                                  |   |    |       |   |   |           |   |   |                   |   |   |       |   |    |   |   |
|-----------------------------------------------------------------------------------|--------|-----------------------------|--------|--------|---------------------------------------|--------|---------|------------|--------|--------|----------------|--------|--------|------------------------|--------|--------|------------|--------|---------|--------|--------|
|                                                                              |   | AtDecember31,      2008     |   |   | For      the Years Ended December 31, |   |
|                                                                              |   | 2008                        |   |   | 2007                                  |   |
|                                                                              |   | AverageBalance              |   |   | InterestIncome/Expense                |   |    | Yield/Cost |   |   | AverageBalance |   |   | InterestIncome/Expense |   |   | Yield/Cost |   |
|                                                                              |   | Yield/Cost                  |   |
|                                                                              |   | (Dollars      in thousands) |   |
|                                                                              |   |                        |   |   |                                  |   |    |       |   |   |           |   |   |                   |   |   |       |   |    |   |   |
| Interest-earning      assets:                                                     |   |                        |   |   |                                  |   |    |       |   |   |           |   |   |                   |   |   |       |   |    |   |   |
| Loans                                                                             |   |                        | 5.76   | %      |                                  | $      | 130,321 |       |   | $      | 7,596          |   |   |                   | 5.83   | %      |       | $      | 121,428 |   |   | $ | 7,240 |   |   |   | 5.96 | % |
| Federal      funds sold                                                           |   |                        | 6.74   |   |                                  |   | 3,920   |       |   |   | 106            |   |   |                   | 2.70   |   |       |   | 4,437   |   |   |   | 222 |   |   |   | 5.00 |   |
| Investment      securities                                                        |   |                        | 4.41   |   |                                  |   | 28,532  |       |   |   | 1,356          |   |   |                   | 4.75   |   |       |   | 20,566  |   |   |   | 1,062 |   |   |   | 5.16 |   |
| Mortgage-backed      securities                                                   |   |                        | 4.75   |   |                                  |   | 23,988  |       |   |   | 1,101          |   |   |                   | 4.59   |   |       |   | 6,813   |   |   |   | 291 |   |   |   | 4.27 |   |
| Total      interest-earning assets                                                |   |                        | 5.42   |   |                                  |   | 186,761 |       |   |   | 10,159         |   |   |                   | 5.44   |   |       |   | 153,244 |   |   |   | 8,815 |   |   |   | 5.75 |   |
| Noninterest-earning      assets                                                   |   |                        |   |   |                                  |   | 5,302   |       |   |   |           |   |   |                   |   |   |       |   | 5,770   |   |   |   |   |   |   |   |   |   |
| Total      assets                                                                 |   |                        |   |   |                                  | $      | 192,063 |       |   |   |           |   |   |                   |   |   |       | $      | 159,014 |   |   |   |   |   |   |   |   |   |
|                                                                              |   |                        |   |   |                                  |   |    |       |   |   |           |   |   |                   |   |   |       |   |    |   |   |   |   |   |   |   |   |   |
| Interest-bearing      liabilities:                                                |   |                        |   |   |                                  |   |    |       |   |   |           |   |   |                   |   |   |       |   |    |   |   |   |   |   |   |   |   |   |
|                                                                              |   |                        |   |   |                                  |   |    |       |   |   |           |   |   |                   |   |   |       |   |    |   |   |   |   |   |   |   |   |   |
| NOW      accounts                                                                 |   |                        | 1.26   |   |                                  | $      | 6,940   |       |   |   | 75             |   |   |                   | 1.08   |   |       | $      | 5,721   |   |   |   | 37 |   |   |   | 0.65 |   |
| Passbook      savings                                                             |   |                        | 0.88   |   |                                  |   | 13,897  |       |   |   | 134            |   |   |                   | 0.96   |   |       |   | 14,306  |   |   |   | 185 |   |   |   | 1.29 |   |
| Money      market savings                                                         |   |                        | 2.26   |   |                                  |   | 12,429  |       |   |   | 263            |   |   |                   | 2.12   |   |       |   | 10,400  |   |   |   | 301 |   |   |   | 2.89 |   |
| Individual retirement      accounts                                     |   |                        | 4.06   |   |                                  |   | 16,362  |       |   |   | 709            |   |   |                   | 4.33   |   |       |   | 15,733  |   |   |   | 698 |   |   |   | 4.44 |   |
| Certificates      of deposit                                                      |   |                        | 3.35   |   |                                  |   | 74,725  |       |   |   | 2,958          |   |   |                   | 3.96   |   |       |   | 68,672  |   |   |   | 3,100 |   |   |   | 4.51 |   |
| Federal      Home Loan Bank advances                                              |   |                        | 4.07   |   |                                  |   | 41,603  |       |   |   | 1,723          |   |   |                   | 4.14   |   |       |   | 21,522  |   |   |   | 1,048 |   |   |   | 4.87 |   |
| Total      interest-bearing liabilities                                           |   |                        | 3.21   | %      |                                  |   | 165,956 |       |   |   | 5,862          |   |   |                   | 3.53   | %      |       |   | 136,354 |   |   |   | 5,369 |   |   |   | 3.94 | % |
| Noninterest-bearing      liabilities:                                             |   |                        |   |   |                                  |   |    |       |   |   |           |   |   |                   |   |   |       |   |    |   |   |   |   |   |   |   |   |   |
| Demand      deposits                                                              |   |                        |   |   |                                  |   | 3,256   |       |   |   |           |   |   |                   |   |   |       |   | 3,214   |   |   |   |   |   |   |   |   |   |
| Other                                                                             |   |                        |   |   |                                  |   | 2,835   |       |   |   |           |   |   |                   |   |   |       |   | 2,833   |   |   |   |   |   |   |   |   |   |
| Total      liabilities                                                            |   |                        |   |   |                                  |   | 172,047 |       |   |   |           |   |   |                   |   |   |       |   | 142,401 |   |   |   |   |   |   |   |   |   |
| Stockholders’      equity                                                   |   |                        |   |   |                                  |   | 20,016  |       |   |   |           |   |   |                   |   |   |       |   | 16,613  |   |   |   |   |   |   |   |   |   |
| Total      liabilities and stockholders’ equity                             |   |                        |   |   |                                  | $      | 192,063 |       |   |   |           |   |   |                   |   |   |       | $      | 159,014 |   |   |   |   |   |   |   |   |   |
|                                                                              |   |                        |   |   |                                  |   |    |       |   |   |           |   |   |                   |   |   |       |   |    |   |   |   |   |   |   |   |   |   |
| Net      interest income                                                          |   |                        |   |   |                                  |   |    |       |   | $      | 4,297          |   |   |                   |   |   |       |   |    |   |   | $ | 3,446 |   |   |   |   |   |
| Interest      rate spread (1)                                                     |   |                        |   |   |                                  |   |    |       |   |   |           |   |   |                   | 1.91   | %      |       |   |    |   |   |   |   |   |   |   | 1.81 | % |
| Net      interest-earning assets (2)                                              |   |                        |   |   |                                  | $      | 20,805  |       |   |   |           |   |   |                   |   |   |       | $      | 16,890  |   |   |   |   |   |   |   |   |   |
| Net      interest margin (3)                                                      |   |                        |   |   |                                  |   |    |       |   |   | 2.30           | %      |   |                   |   |   |       |   |    |   |   |   | 2.25 | % |   |   |   |   |
| Average      interest-earning assets to average interest-bearing      liabilities |   |                        |   |   |                                  |   | 113     | %          |   |   |           |   |   |                   |   |   |       |   | 112     | %      |   |   |   |   |   |   |   |   |

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

----

|                                    |   |                                                        |   |   |   |   |   |   |   |
|-----------------------------------------|--------|-------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|
|                                    |   | For      theYears      Ended December 31,2008      vs. 2007 |   |
|                                    |   | Increase      (Decrease)Due      to                         |   |   |   |   |
|                                    |   | Volume                                                      |   |   | Rate   |   |   | Net    |   |
|                                    |   | (In      thousands)                                         |   |
|                                    |   |                                                        |   |
| Interest-earning      assets:           |   |                                                        |   |   |   |   |   |   |   |
| Loans                                   |   | $                                                           | 507    |   |   | $      | (151   | )      |   | $ | 356 |   |
| Federal      funds sold                 |   |                                                        | 39     |   |   |   | (155   | )      |   |   | (116 | ) |
| Investment      securities              |   |                                                        | 370    |   |   |   | (76    | )      |   |   | 294 |   |
| Mortgage-backed      securities         |   |                                                        | 787    |   |   |   | 23     |   |   |   | 810 |   |
| Total      interest-earning assets      |   |                                                        | 1,703  |   |   |   | (359   | )      |   |   | 1,344 |   |
|                                    |   |                                                        |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing      liabilities:      |   |                                                        |   |   |   |   |   |   |   |   |   |   |
| NOW      accounts                       |   |                                                        | 9      |   |   |   | 29     |   |   |   | 38 |   |
| Passbook      savings                   |   |                                                        | (5     | )      |   |   | (46    | )      |   |   | (51 | ) |
| Money      market savings               |   |                                                        | 99     |   |   |   | (137   | )      |   |   | (38 | ) |
| Individual      retirement accounts     |   |                                                        | 27     |   |   |   | (16    | )      |   |   | 11 |   |
| Certificates      of deposit            |   |                                                        | 347    |   |   |   | (489   | )      |   |   | (142 | ) |
| Federal      Home Loan Bank advances    |   |                                                        | 582    |   |   |   | 93     |   |   |   | 675 |   |
| Total      interest-bearing liabilities |   |                                                        | 1,059  |   |   |   | (566   | )      |   |   | 493 |   |
|                                    |   |                                                        |   |   |   |   |   |   |   |   |   |   |
| Net      change in net interest income  |   | $                                                           | 644    |   |   | $      | 207    |   |   | $ | 851 |   |

----

|   |   |                                                                                                                                           |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------|
|   | (i)    | investing      in shorter to medium-term repricing and/or maturing securities whenever      market allows;                                     |
|   |   |                                                                                                                                           |
|   | (ii)   | emphasizing      the marketing of our passbook, savings and checking accounts and      increasing the duration of our certificates of deposit; |
|   |   |                                                                                                                                           |
|   | (iii)  | selling      a portion of our long-term, fixed-rate one-to-four family residential real      estate mortgage loans; and                        |
|   |   |                                                                                                                                           |
|   | (iv)   | maintaining      a strong capital position.                                                                                                    |

----

|                                                                 |   |                        |              |                                           |                                  |                                                        |    |   |   |    |   |   |   |   |   |    |   |
|----------------------------------------------------------------------|--------|-----------------------------|-------------------|------------------------------------------------|---------------------------------------|-------------------------------------------------------------|---------|--------|--------|---------|--------|--------|--------|--------|--------|---------|--------|
| Change      in Interest Rates      (basis points)      (1) |   | Estimated NPV      (2) |              | Estimated      Increase (Decrease) in NPV |                                  | NPV      as a Percentage of PresentValue      of Assets (3) |    |
|                                                                 |   |                        |              |                                           | Increase(Decrease)(basis      points) |                                                        |
|                                                                 |   |                        | NPVRatio      (4) |                                           |                                  |
|                                                                 |   | Amount                      |              | Percent                                        |                                  |                                                        |    |
| (Dollars      in thousands)                                          |   |
|                                                                 |   |                        |              |                                           |                                  |                                                        |    |   |   |    |   |   |   |   |   |    |   |
| +300                                                                 |   |                        | $                 | 10,720                                         |                                  | $                                                           | (6,053  | )      |   | (36     | )%     |   | 5.68   | %      |   | (268    | )      |
| +200                                                                 |   |                        |              | 15,205                                         |                                  |                                                        | (1,569  | )      |   | (9      | )      |   | 7.79   |   |   | (56     | )      |
| +100                                                                 |   |                        |              | 16,935                                         |                                  |                                                        | 161     |   |   | 1       |   |   | 8.52   |   |   | 16      |   |
| +50                                                                  |   |                        |              | 16,866                                         |                                  |                                                        | 92      |   |   | 1       |   |   | 8.44   |   |   | 9       |   |
| —                                                              |   |                        |              | 16,773                                         |                                  |                                                        | — |   |   | — |   |   | 8.36   |   |   | — |   |
| -50                                                                  |   |                        |              | 16,259                                         |                                  |                                                        | (514    | )      |   | (3      | )      |   | 8.08   |   |   | (28     | )      |
| -100                                                                 |   |                        |              | 15,653                                         |                                  |                                                        | (1,121  | )      |   | (7      | )      |   | 7.77   |   |   | (59     | )      |

|   |   |                                                                                                                           |   |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------|--------|
|   | (1)    | Assumes      an instantaneous uniform change in interest rates at all      maturities.                                         |
|   | (2)    | NPV      is the discounted present value of expected cash flows from assets,      liabilities and off-balance sheet contracts. |
|   | (3)    | Present      value of assets represents the discounted present value of incoming cash      flows on interest-earning assets.   |
|   | (4)    | NPV      Ratio represents NPV divided by the present value of    assets.                                                       |

----

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

----

----

----

|                                    |   |   |   |   |   |   |
|-----------------------------------------|--------|--------|--------|--------|--------|--------|
| Year      Ended December 31, 2008  |   |   | High   |   | Low    |   |
|                                    |   |   |   |   |   |   |
| Fourth      quarter                     |   | $      | 9.10   |   |   | $      | 5.75 |   |
| Third      quarter                      |   |   | 9.25   |   |   |   | 7.20 |   |
| Second      quarter                     |   |   | 9.25   |   |   |   | 6.80 |   |
| First      quarter                      |   |   | 8.62   |   |   |   | 7.31 |   |
|                                    |   |   |   |   |   |   |   |   |
| Year      Ended December 31, 2007  |   |   | High   |   | Low    |   |
|                                    |   |   |   |   |   |   |   |   |
| Fourth      quarter                     |   | $      | 11.25  |   |   | $      | 8.20 |   |
| Third      quarter(1)                   |   |   | 11.25  |   |   |   | 8.75 |   |

|   |                                                                                                                                  |   |
|--------|---------------------------------------------------------------------------------------------------------------------------------------|--------|
| (1)    | Information      is from August 10, 2007, the date of the consummation of our initial      public offering through September 30,2007. |

----

| ANNUAL      MEETING                                                                                                                                                                                   |   |   | TRANSFER      AGENT                                                                                                                                                                                                                                                                                                                                                    |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                                                                                  |   |   |                                                                                                                                                                                                                                                                                                                                                                   |   |
| The      Annual Meeting of Stockholders will be held at 3:00 p.m., New York time on      May 20, 2009 at the Perinton Community Center located at 1350 Turk Hill      Road, Fairport, New York 14450. |   |   | Registrar      and Transfer Company10      Commerce DriveCranford,      New Jersey 07016 If      you have any questions concerning your stockholder account, please call      our transfer agent, noted above, at (800) 525-7686. This is the number to      call if you require a change of address or need records or information      about lost certificates. |   |
|                                                                                                                                                                                                  |   |   |                                                                                                                                                                                                                                                                                                                                                                   |   |
| STOCK      LISTING                                                                                                                                                                                    |   |   | ANNUAL      REPORT ON FORM 10-K                                                                                                                                                                                                                                                                                                                                        |   |
|                                                                                                                                                                                                  |   |   |                                                                                                                                                                                                                                                                                                                                                                   |   |
| The      Company’s Common Stock is quoted on the OTC Bulletin Board under the      symbol “FSBC.”                                                                                   |   |   | A      copy of the Company’s Form 10-K for the year ended December 31, 2008 will      be furnished without charge to stockholders as of the record date, upon      written request to the Secretary, FSB Community Bankshares, Inc., 54 South      Main Street, Fairport, New York 14450.                                                                        |   |
|                                                                                                                                                                                                  |   |   |                                                                                                                                                                                                                                                                                                                                                                   |   |
| SPECIAL      COUNSEL                                                                                                                                                                                  |   |   | INDEPENDENT      REGISTEREDPUBLIC      ACCOUNTING FIRM                                                                                                                                                                                                                                                                                                                 |   |
|                                                                                                                                                                                                  |   |   |                                                                                                                                                                                                                                                                                                                                                                   |   |
| Luse      Gorman Pomerenk & Schick, P.C.5335      Wisconsin Avenue, N.W., Suite 400Washington,      D.C. 20015                                                                                    |   |   | Beard      Miller Company115      Solar Street, Suite 100Syracuse,      New York 13204                                                                                                                                                                                                                                                                                 |   |

----

|                                |
|-------------------------------------|
| FSB      Community Bankshares, Inc. |

|                                                         |   |
|--------------------------------------------------------------|--------|
|                                                         |   | Page |
|                                                         |   |
| Report      of Independent Registered Public Accounting Firm | F-1    |
|                                                         |   |
| Consolidated      Financial Statements                       |   |
|                                                         |   |
| Consolidated      Balance Sheets                             | F-2    |
|                                                         |   |
| Consolidated      Statements of Operations                   | F-3    |
|                                                         |   |
| Consolidated      Statements of Stockholders’ Equity   | F-4    |
|                                                         |   |
| Consolidated      Statements of Cash Flows                   | F-5    |
|                                                         |   |
| Notes      to Consolidated Financial Statements              | F-6    |

----

|   |   | /s/ Beard Miller      Company LLP |   |
|--------|--------|-----------------------------------|--------|

----

| FSB      Community Bankshares, Inc. |
|-------------------------------------|
| Consolidated      Balance Sheets    |
| December      31, 2008 and 2007     |

|                                                                                                           |   | 2008                                                   |    |   | 2007   |   |
|----------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------|---------|--------|--------|--------|
|                                                                                                           |   | (Dollars      in Thousands,Except      Per Share Data) |    |
| Assets                                                                                                         |   |                                                   |    |   |   |   |
|                                                                                                           |   |                                                   |    |   |   |   |
| Cash      and due from banks                                                                                   |   | $                                                      | 2,154   |   |   | $      | 1,159 |   |
| Interest      bearing demand deposits                                                                          |   |                                                   | 1,019   |   |   |   | 8,285 |   |
|                                                                                                           |   |                                                   |    |   |   |   |   |   |
| Cash      and Cash Equivalents                                                                                 |   |                                                   | 3,173   |   |   |   | 9,444 |   |
|                                                                                                           |   |                                                   |    |   |   |   |   |   |
| Securities      available for sale                                                                             |   |                                                   | 43,925  |   |   |   | 244 |   |
| Securities      held to maturity (fair value 2008 $7,091 ; 2007 $28,597)                                       |   |                                                   | 7,289   |   |   |   | 28,550 |   |
| Investment      in FHLB stock                                                                                  |   |                                                   | 2,312   |   |   |   | 1,405 |   |
| Loans,      net of allowance for loan losses 2008 $345; 2007 $319                                              |   |                                                   | 135,713 |   |   |   | 124,326 |   |
| Accrued      interest receivable                                                                               |   |                                                   | 1,032   |   |   |   | 872 |   |
| Premises      and equipment, net                                                                               |   |                                                   | 2,308   |   |   |   | 2,525 |   |
| Other      assets                                                                                              |   |                                                   | 383     |   |   |   | 264 |   |
|                                                                                                           |   |                                                   |    |   |   |   |   |   |
| Total      Assets                                                                                              |   | $                                                      | 196,135 |   |   | $      | 167,630 |   |
|                                                                                                           |   |                                                   |    |   |   |   |   |   |
| Liabilities      and Stockholders’ Equity                                                                |   |                                                   |    |   |   |   |   |   |
|                                                                                                           |   |                                                   |    |   |   |   |   |   |
| Liabilities                                                                                                    |   |                                                   |    |   |   |   |   |   |
| Deposits:                                                                                                      |   |                                                   |    |   |   |   |   |   |
| Non-interest-bearing                                                                                           |   | $                                                      | 3,487   |   |   | $      | 3,169 |   |
| Interest      bearing                                                                                          |   |                                                   | 124,035 |   |   |   | 115,989 |   |
|                                                                                                           |   |                                                   |    |   |   |   |   |   |
| Total      Deposits                                                                                            |   |                                                   | 127,522 |   |   |   | 119,158 |   |
|                                                                                                           |   |                                                   |    |   |   |   |   |   |
| Short-term      borrowings                                                                                     |   |                                                   | 3,850   |   |   |   | — |   |
| Long-term      borrowings                                                                                      |   |                                                   | 41,631  |   |   |   | 25,581 |   |
| Advances      from borrowers for taxes and insurance                                                           |   |                                                   | 2,152   |   |   |   | 1,898 |   |
| Other      liabilities                                                                                         |   |                                                   | 939     |   |   |   | 844 |   |
|                                                                                                           |   |                                                   |    |   |   |   |   |   |
| Total      Liabilities                                                                                         |   |                                                   | 176,094 |   |   |   | 147,481 |   |
|                                                                                                           |   |                                                   |    |   |   |   |   |   |
| Commitments      and Contingencies                                                                             |   |                                                   |    |   |   |   |   |   |
|                                                                                                           |   |                                                   |    |   |   |   |   |   |
| 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 |   |
| Paid-in      capital                                                                                           |   |                                                   | 7,286   |   |   |   | 7,293 |   |
| Retained      earnings                                                                                         |   |                                                   | 13,249  |   |   |   | 13,224 |   |
| Accumulated      other comprehensive income (loss)                                                             |   |                                                   | (43     | )      |   |   | 118 |   |
| Unearned      ESOP shares – at cost                                                                      |   |                                                   | (630    | )      |   |   | (665 | ) |
|                                                                                                           |   |                                                   |    |   |   |   |   |   |
| Total      Stockholders’ Equity                                                                          |   |                                                   | 20,041  |   |   |   | 20,149 |   |
|                                                                                                           |   |                                                   |    |   |   |   |   |   |
| Total      Liabilities and Stockholders’ Equity                                                          |   | $                                                      | 196,135 |   |   | $      | 167,630 |   |

| See      notes to consolidated financialstatements. |
|-----------------------------------------------------|

----

| FSB      Community Bankshares, Inc.        |
|--------------------------------------------|
| Consolidated      Statements of Operations |
| Years      Ended December 31, 2008 and2007 |

|                                                        |   | 2008                        |    |   | 2007   |   |
|-------------------------------------------------------------|--------|-----------------------------|---------|--------|--------|--------|
|                                                        |   | (Dollars      in Thousands, |    |
|                                                        |   | Except      Per Share Data) |    |
|                                                        |   |                        |    |   |   |   |
| Interest      and Dividend Income                           |   |                        |    |   |   |   |
|                                                        |   |                        |    |   |   |   |
| Loans                                                       |   | $                           | 7,596   |   |   | $      | 7,240 |   |
| Securities      - taxable                                   |   |                        | 1,356   |   |   |   | 1,062 |   |
| Mortgage-backed      securities                             |   |                        | 1,101   |   |   |   | 291 |   |
| Other                                                       |   |                        | 106     |   |   |   | 222 |   |
|                                                        |   |                        |    |   |   |   |   |   |
| Total      Interest and Dividend Income                     |   |                        | 10,159  |   |   |   | 8,815 |   |
| Interest      Expense                                       |   |                        |    |   |   |   |   |   |
|                                                        |   |                        |    |   |   |   |   |   |
| Deposits                                                    |   |                        | 4,139   |   |   |   | 4,321 |   |
| Borrowings:                                                 |   |                        |    |   |   |   |   |   |
| Short-term                                                  |   |                        | 4       |   |   |   | 30 |   |
| Long-term                                                   |   |                        | 1,719   |   |   |   | 1,018 |   |
|                                                        |   |                        |    |   |   |   |   |   |
| Total      Interest Expense                                 |   |                        | 5,862   |   |   |   | 5,369 |   |
|                                                        |   |                        |    |   |   |   |   |   |
| Net      Interest Income                                    |   |                        | 4,297   |   |   |   | 3,446 |   |
| Provision      for loan losses                              |   |                        | 24      |   |   |   | — |   |
| Net      Interest Income after Provision for loan losses    |   |                        | 4,273   |   |   |   | 3,446 |   |
|                                                        |   |                        |    |   |   |   |   |   |
| Other      Income                                           |   |                        |    |   |   |   |   |   |
|                                                        |   |                        |    |   |   |   |   |   |
| Service      fees                                           |   |                        | 198     |   |   |   | 109 |   |
| Fee      income                                             |   |                        | 142     |   |   |   | 79 |   |
| Realized      gain on sale of securities available for sale |   |                        | — |   |   |   | 81 |   |
| Realized      gain on sale of foreclosed real estate        |   |                        | — |   |   |   | 8 |   |
| Realized      loss on impairment of securities              |   |                        | (57     | )      |   |   | — |   |
| Other                                                       |   |                        | 170     |   |   |   | 152 |   |
|                                                        |   |                        |    |   |   |   |   |   |
| Total      Other Income                                     |   |                        | 453     |   |   |   | 429 |   |
| Other      Expense                                          |   |                        |    |   |   |   |   |   |
|                                                        |   |                        |    |   |   |   |   |   |
| Salaries      and employee benefits                         |   |                        | 2,435   |   |   |   | 2,322 |   |
| Occupancy                                                   |   |                        | 464     |   |   |   | 431 |   |
| Data      processing costs                                  |   |                        | 82      |   |   |   | 83 |   |
| Advertising                                                 |   |                        | 251     |   |   |   | 271 |   |
| Equipment                                                   |   |                        | 337     |   |   |   | 337 |   |
| Electronic      banking                                     |   |                        | 70      |   |   |   | 65 |   |
| Directors      fees                                         |   |                        | 114     |   |   |   | 97 |   |
| Mortgage      fees and taxes                                |   |                        | 241     |   |   |   | 154 |   |
| Other                                                       |   |                        | 663     |   |   |   | 552 |   |
|                                                        |   |                        |    |   |   |   |   |   |
| Total      Other Expense                                    |   |                        | 4,657   |   |   |   | 4,312 |   |
|                                                        |   |                        |    |   |   |   |   |   |
| Income      (Loss) before Income Taxes                      |   |                        | 69      |   |   |   | (437 | ) |
|                                                        |   |                        |    |   |   |   |   |   |
| Provision      (Benefit) for Income Taxes                   |   |                        | 44      |   |   |   | (156 | ) |
|                                                        |   |                        |    |   |   |   |   |   |
| Net      Income (Loss)                                      |   | $                           | 25      |   |   | $      | (281 | ) |
|                                                        |   |                        |    |   |   |   |   |   |
| Basic      earnings (loss) per common share                 |   | $                           | 0.01    |   |   | $      | (0.22 | ) |

| See      notes to consolidated financialstatements. |
|-----------------------------------------------------|

----

| FSB      Community Bankshares, Inc.                        |
|------------------------------------------------------------|
|                                                       |
| Consolidated      Statements of Stockholders’ Equity |
| Years      Ended December 31, 2008 and 2007                |
| (In      Thousands)                                        |

|                                                                                                                     |   |   |    |   |    |   |    |     |   |   | Accumulated      Other |   |   | Unearned |    |   |   |   |
|--------------------------------------------------------------------------------------------------------------------------|--------|--------|---------|--------|---------|--------|---------|----------|--------|--------|------------------------|--------|--------|----------|---------|--------|--------|--------|
|                                                                                                                     |   | Common |    |   | Paid-In |   |    | Retained |   |   | Comprehensive          |   |   | ESOP     |    |   |   |   |
|                                                                                                                     |   | Stock  |    |   | Capital |   |    | Earnings |   |   | Income      (Loss)     |   |   | Shares   |    |   | Total  |   |
|                                                                                                                     |   |   |    |   |    |   |    |     |   |   |                   |   |   |     |    |   |   |   |
| Balance      - December 31, 2006                                                                                         |   | $      | — |   |    | $      | 10      |     |   | $      | 13,505                 |   |   | $        | 355     |   |   | $      | — |   |   | $ | 13,870 |   |
|                                                                                                                     |   |   |    |   |    |   |    |     |   |   |                   |   |   |     |    |   |   |   |   |   |   |   |   |   |
| Comprehensive      loss:                                                                                                 |   |   |    |   |    |   |    |     |   |   |                   |   |   |     |    |   |   |   |   |   |   |   |   |   |
| Net      loss                                                                                                            |   |   | — |   |    |   | — |     |   |   | (281                   | )      |   |     | — |   |   |   | — |   |   |   | (281 | ) |
| Change      in unrealized gain on securities available for sale, net of      reclassification adjustment and taxes       |   |   | — |   |    |   | — |     |   |   | —                |   |   |     | (237    | )      |   |   | — |   |   |   | (237 | ) |
|                                                                                                                     |   |   |    |   |    |   |    |     |   |   |                   |   |   |     |    |   |   |   |   |   |   |   |   |   |
| Total      Comprehensive Loss                                                                                            |   |   |    |   |    |   |    |     |   |   |                   |   |   |     |    |   |   |   |   |   |   |   | (518 | ) |
| Shares      issued in public offering, net of offering costs of    $905,000                                              |   |   | 179     |   |    |   | 7,283   |     |   |   | —                |   |   |     | — |   |   |   | — |   |   |   | 7,462 |   |
| Shares      purchased by ESOP                                                                                            |   |   | — |   |    |   | — |     |   |   | —                |   |   |     | — |   |   |   | (700 | ) |   |   | (700 | ) |
| ESOP      shares committed to be released                                                                                |   |   | — |   |    |   | — |     |   |   | —                |   |   |     | — |   |   |   | 35 |   |   |   | 35 |   |
|                                                                                                                     |   |   |    |   |    |   |    |     |   |   |                   |   |   |     |    |   |   |   |   |   |   |   |   |   |
| Balance      - December 31, 2007                                                                                         |   |   | 179     |   |    |   | 7,293   |     |   |   | 13,224                 |   |   |     | 118     |   |   |   | (665 | ) |   |   | 20,149 |   |
|                                                                                                                     |   |   |    |   |    |   |    |     |   |   |                   |   |   |     |    |   |   |   |   |   |   |   |   |   |
| Comprehensive      Loss:                                                                                                 |   |   |    |   |    |   |    |     |   |   |                   |   |   |     |    |   |   |   |   |   |   |   |   |   |
| Net      income                                                                                                          |   |   | — |   |    |   | — |     |   |   | 25                     |   |   |     | — |   |   |   | — |   |   |   | 25 |   |
| Change      in unrealized gain (loss)on securities available for sale, net of      reclassification adjustment and taxes |   |   | — |   |    |   | — |     |   |   | —                |   |   |     | (161    | )      |   |   | — |   |   |   | (161 | ) |
|                                                                                                                     |   |   |    |   |    |   |    |     |   |   |                   |   |   |     |    |   |   |   |   |   |   |   |   |   |
| Total      Comprehensive Loss                                                                                            |   |   |    |   |    |   |    |     |   |   |                   |   |   |     |    |   |   |   |   |   |   |   | (136 | ) |
| ESOP      shares committed to be released                                                                                |   |   | — |   |    |   | (7      | )        |   |   | —                |   |   |     | — |   |   |   | 35 |   |   |   | 28 |   |
|                                                                                                                     |   |   |    |   |    |   |    |     |   |   |                   |   |   |     |    |   |   |   |   |   |   |   |   |   |
| Balance      - December 31, 2008                                                                                         |   | $      | 179     |   |    | $      | 7,286   |     |   | $      | 13,249                 |   |   | $        | (43     | )      |   | $      | (630 | ) |   | $ | 20,041 |   |

| See      notes to consolidated financialstatements. |
|-----------------------------------------------------|

----

| FSB      Community Bankshares, Inc.        |
|--------------------------------------------|
| Consolidated      Statements of Cash Flows |
| Years      Ended December 31, 2008 and2007 |

|                                                                                                      |   |                |    |   |   |   |
|-----------------------------------------------------------------------------------------------------------|--------|---------------------|---------|--------|--------|--------|
|                                                                                                      |   | 2008                |    |   | 2007   |   |
|                                                                                                      |   | (In      Thousands) |    |
| Cash      Flows from Operating Activities                                                                 |   |                |    |   |   |   |
| Net      income (loss)                                                                                    |   | $                   | 25      |   |   | $      | (281 | ) |
| Adjustments      to reconcile net income (loss) to net cash provided (used) by operating      activities: |   |                |    |   |   |   |   |   |
| Gain      on sale of securities available for sale                                                        |   |                | — |   |   |   | (81 | ) |
| Loss      on impairment of securities available for sale                                                  |   |                | 57      |   |   |   | — |   |
| Gain      on sale of loans                                                                                |   |                | (20     | )      |   |   | (4 | ) |
| Net      gain on sale of foreclosed real estate                                                           |   |                | — |   |   |   | (8 | ) |
| Amortization      of premium on investment securities                                                     |   |                | 294     |   |   |   | 36 |   |
| Accretion      of discount on investment securities                                                       |   |                | (10     | )      |   |   | (3 | ) |
| Amortization      of net deferred loan origination costs                                                  |   |                | 27      |   |   |   | 44 |   |
| Depreciation      and amortization                                                                        |   |                | 266     |   |   |   | 298 |   |
| Provision      for loan losses                                                                            |   |                | 24      |   |   |   | — |   |
| Stock-based      compensation expense                                                                     |   |                | 28      |   |   |   | 35 |   |
| Deferred      income tax expense (benefit)                                                                |   |                | 21      |   |   |   | (6 | ) |
| (Increase)      decrease in accrued interest receivable                                                   |   |                | (160    | )      |   |   | 1 |   |
| Increase      in other assets                                                                             |   |                | (143    | )      |   |   | (48 | ) |
| Increase      (decrease) in other liabilities                                                             |   |                | 181     |   |   |   | (81 | ) |
|                                                                                                      |   |                |    |   |   |   |   |   |
| Net      Cash Provided (Used) by Operating Activities                                                     |   |                | 590     |   |   |   | (98 | ) |
|                                                                                                      |   |                |    |   |   |   |   |   |
| Cash      Flows from Investing Activities                                                                 |   |                |    |   |   |   |   |   |
| Purchases      of securities available for sale                                                           |   |                | (58,971 | )      |   |   | — |   |
| Proceeds      from maturities and calls of securities available for sale                                  |   |                | 12,050  |   |   |   | — |   |
| Proceeds      from sales of securities available for sale                                                 |   |                | — |   |   |   | 82 |   |
| Proceeds      from principal paydowns on securities available for sale                                    |   |                | 2,685   |   |   |   | — |   |
| Purchases      of securities held to maturity                                                             |   |                | (3,001  | )      |   |   | (24,980 | ) |
| Proceeds      from maturities and calls of securities held to maturity                                    |   |                | 21,987  |   |   |   | 19,009 |   |
| Proceeds      from principal paydowns on securities held to maturity                                      |   |                | 2,245   |   |   |   | 1,579 |   |
| Net      increase in loans                                                                                |   |                | (14,315 | )      |   |   | (4,288 | ) |
| Proceeds      from sales of loans                                                                         |   |                | 2,897   |   |   |   | 1,018 |   |
| Redemption      (purchase) of Federal Home Loan Bank stock                                                |   |                | (907    | )      |   |   | 85 |   |
| Purchase      of premises and equipment                                                                   |   |                | (49     | )      |   |   | (677 | ) |
| Proceeds      from sale of foreclosed real estate                                                         |   |                | — |   |   |   | 49 |   |
|                                                                                                      |   |                |    |   |   |   |   |   |
| Net      Cash Used by Investing Activities                                                                |   |                | (35,379 | )      |   |   | (8,123 | ) |
|                                                                                                      |   |                |    |   |   |   |   |   |
| Cash      Flows from Financing Activities                                                                 |   |                |    |   |   |   |   |   |
| Net      increase in deposits                                                                             |   |                | 8,364   |   |   |   | 10,578 |   |
| Net      increase (decrease) in short-term borrowings                                                     |   |                | 3,850   |   |   |   | (4,200 | ) |
| Proceeds      from long-term borrowings                                                                   |   |                | 22,000  |   |   |   | 6,000 |   |
| Repayments      on long-term borrowings                                                                   |   |                | (5,950  | )      |   |   | (4,243 | ) |
| Net      increase in advances from borrowers for taxes andinsurance                                       |   |                | 254     |   |   |   | 70 |   |
| Net      proceeds from common stock offering                                                              |   |                | — |   |   |   | 7,462 |   |
| Purchase      of shares for employee stock ownership plan                                                 |   |                | — |   |   |   | (700 | ) |
|                                                                                                      |   |                |    |   |   |   |   |   |
| Net      Cash Provided by Financing Activities                                                            |   |                | 28,518  |   |   |   | 14,967 |   |
|                                                                                                      |   |                |    |   |   |   |   |   |
| Net      Increase (Decrease) in Cash and Cash Equivalents                                                 |   |                | (6,271  | )      |   |   | 6,746 |   |
|                                                                                                      |   |                |    |   |   |   |   |   |
| Cash      and Cash Equivalents - Beginning                                                                |   |                | 9,444   |   |   |   | 2,698 |   |
|                                                                                                      |   |                |    |   |   |   |   |   |
| Cash      and Cash Equivalents - Ending                                                                   |   | $                   | 3,173   |   |   | $      | 9,444 |   |

| Supplementary      Cash Flows Information                                 |   |   |    |   |   |   |
|---------------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|
| Interest      paid                                                        |   | $      | 5,805   |   |   | $      | 5,357 |   |
|                                                                      |   |   |    |   |   |   |   |   |
| Income      taxes paid                                                    |   | $      | 1       |   |   | $      | 9 |   |
|                                                                      |   |   |    |   |   |   |   |   |
| Supplementary      Schedule of Noncash Investing and Financing Activities |   |   |    |   |   |   |   |   |
| Transfer      of loans to foreclosed real estate                          |   | $      | — |   |   | $      | 41 |   |

| See      notes to consolidated financialstatements. |
|-----------------------------------------------------|

----

| FSB Community Bankshares,      Inc.             |
|-------------------------------------------------|
| Notes to      Consolidated Financial Statements |
| December      31, 2008 and 2007                 |

|                                       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|--------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Organization      and Nature of Operations |
|                                       |
|                                       | On      December 17, 2003, the Bank’s depositors approved a Plan of      Reorganization (the “Plan”) from a Federal Mutual Savings Bank to a      Federal Mutual Holding Company. Under the Plan, effective January 14,      2005, FSB Community Bankshares, MHC (the “Mutual Company”) was      incorporated under the laws of the United States as a mutual holding      company. Also under the Plan, FSB Community Bankshares, Inc. (the      “Company”) was incorporated and became a wholly-owned subsidiary of the      Mutual Company. In addition, effective January 14, 2005, the Bank      completed its reorganization whereby the Bank converted to a stock savings      bank and became a wholly-owned subsidiary of the  Company.                     |
|                                       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|                                       | In      August 2007, the Company completed its minority stock offering of 47% of      the aggregate total voting stock of the Company pursuant to the laws of      the United States of America and the rules and regulations of the Office      of Thrift Supervision (“OTS”). In connection with the minority stock      offering, 1,785,000 shares of common stock were issued, of which 838,950      shares were sold, including 69,972 issued to the Company’s Employee Stock      Ownership Plan (ESOP), at $10 per share raising net proceeds of $7.4      million. The stock was offered to the Bank’s eligible depositors, the      Bank’s ESOP, and the public. Additionally, the Company issued 946,050      shares, or 53% of its common stock, to the Mutual Holding      Company. |
|                                       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|                                       | The      Company provides a variety of financial services to individuals and      corporate customers through its wholly-owned subsidiary, Fairport Savings      Bank (the “Bank”). The Bank’s operations are conducted in three branches      located in Monroe County, New York. The Company and the Bank are subject      to the regulations of certain regulatory authorities and undergo periodic      examinations by those regulatory authorities.                                                                                                                                                                                                                                                                                                                                                   |
|                                       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|                                       | The      Bank also provides non-deposit investment services to its customers      through its wholly-owned subsidiary, Oakleaf Services Corporation      (“Oakleaf”). The results of operations of Oakleaf are not material to the      consolidated financial statements                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|                                       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| Basis      of Consolidation                |
|                                       |
|                                       | The      Mutual Company, which engages in no significant business activity other      than holding the stock of the Company, is not included in the accompanying      consolidated financial statements. The consolidated financial statements      include the accounts of the Company, the Bank and Oakleaf. All significant      inter-company accounts and transactions have been eliminated in      consolidation.                                                                                                                                                                                                                                                                                                                                                                                                       |
|                                       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| Use      of Estimates                      |
|                                       |
|                                       | The      preparation of financial statements in conformity with accounting      principles generally accepted in the United States of America requires      management to make estimates and assumptions that affect the reported      amounts of assets and liabilities and disclosure of contingent assets and      liabilities at the date of the consolidated financial statements and the      reported amounts of revenue and expense during the reporting period.      Actual results could differ from those estimates. Material estimates that      are particularly susceptible to significant changes in the near term      relate to the determination of the allowance for loan losses, the      evaluation of other than temporary impairment of investment securities,      and the net deferred tax asset.    |
|                                       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| Cash      and Cash Equivalents             |
|                                       |
|                                       | For      purposes of the consolidated statements of cash flows, cash and cash      equivalents include cash, balances due from banks, and interest-bearing      demand deposits.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |

----

| FSB Community Bankshares,      Inc.             |
|-------------------------------------------------|
| Notes to      Consolidated Financial Statements |
| December      31, 2008 and 2007                 |

|                                                 |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Significant      Group Concentrations of Credit Risk |
|                                                 |
|                                                 | Most      of the Bank’s activities are with customers located within Monroe,      Livingston, Ontario, Orleans, and Wayne Counties, New York. Note 2      discusses the types of securities that the Company invests in. The      concentration of credit by type of loan is set forth in Note 3. Although      the Bank has a diversified loan portfolio, its debtors’ ability to honor      their contracts is primarily dependent upon the real estate and general      economic conditions in those areas.                                                                                                                                                                                                                                                    |
|                                                 |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| Securities                                           |
|                                                 |
|                                                 | The      Company has classified as held to maturity, all mortgage-backed securities      which it has the positive intent and ability to hold until maturity. These      securities are carried at amortized cost. All other debt, equity, and      mortgage-backed securities having readily determinable fair values are      classified as available for sale and stated at fair value. Unrealized      gains or losses related to securities available for sale are excluded from      earnings and reported in other comprehensive income net of the related      deferred income tax effect. The Company has no securities classified as      trading securities.                                                                                                       |
|                                                 |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|                                                 | Amortization      of premiums and accretion of discounts are calculated using the interest      method and included in interest income.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|                                                 |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|                                                 | Declines      in fair value of securities held to maturity and available for sale below      their cost that are deemed to be other than temporary are reflected in      earnings as realized losses. In estimating other-than-temporary impairment      losses, management considers (1) the length of time and the extent to      which the fair value has been less than cost, (2) the financial condition      and near-term prospects of the issuer, and (3) the intent and ability of      the Bank to retain its investment in the issuer for a period of time      sufficient to allow for any anticipated recovery in fair value. Realized      gains or losses, determined on the basis of the cost of the specific      securities sold, are included in earnings. |
|                                                 |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| Federal      Home Loan Bank of New York              |
|                                                 |
|                                                 | Federal      law requires a member institution of the Federal Home Loan Bank System to      hold stock of its district Federal Home Loan Bank according to a      predetermined formula. This restricted stock is carried at      cost.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|                                                 |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| Mortgage      Loans Held for Sale                    |
|                                                 |
|                                                 | Mortgage      loans held for sale in the secondary market are carried at the lower of      cost or estimated market value determined in the aggregate. Realized gains      and losses on sales are computed using the specific identification method.      There were no loans held for sale at December 31, 2008 and      2007.                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|                                                 |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|                                                 | The      Bank retains the servicing on loans sold and receives a fee based on the      principal balance outstanding. Servicing rights were not material at      December 31, 2008 and 2007.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|                                                 |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|                                                 | Loans      serviced for others totaled $5,386,780 and $2,759,226 at December 31, 2008      and 2007, respectively.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |

----

| FSB Community Bankshares,      Inc.             |
|-------------------------------------------------|
| Notes to      Consolidated Financial Statements |
| December      31, 2008 and 2007                 |

|                           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|--------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Loans                          |
|                           |
|                           | Loans      that management has the intent and ability to hold for the foreseeable      future or until maturity or pay-off generally are reported at their      outstanding unpaid principal balances adjusted for charge-offs, the      allowance for loan losses, and net deferred origination fees and costs.      Interest income is accrued on the unpaid principal balance. Loan      origination fees, net of certain direct origination costs, are deferred      and recognized as an adjustment of the related loan yield using the      interest method over the contractual life of the loan.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|                           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|                           | The      accrual of interest is generally discontinued when the contractual payment      of principal or interest has become 90 days past due or management has      serious doubts about further collectability of principal or interest, even      though the loan is currently performing. A loan may remain on accrual      status if it is in the process of collection and is well secured. When a      loan is placed on nonaccrual status, unpaid interest credited to income in      the current year is reversed and unpaid interest accrued in prior years is      charged against the allowance for loan losses. Interest received on      nonaccrual loans generally is either applied against principal or reported      as interest income, according to management’s judgment as to the      collectability of principal. Generally, loans are restored to accrual      status when the obligation is brought current, has performed in accordance      with the contractual terms for a reasonable period of time and the      ultimate collectability of the total contractual principal and interest is      no longer in doubt. |
|                           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| Allowance      for Loan Losses |
|                           |
|                           | The      allowance for loan losses is established as losses are estimated to have      occurred in the loan portfolio. The allowance for loan losses is recorded      through a provision for loan losses charged to earnings. Loan losses are      charged against the allowance when management believes the      un-collectability of a loan balance is confirmed. Subsequent recoveries,      if any, are credited to the allowance.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|                           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|                           | The      allowance for loan losses is evaluated on a regular basis by management      and is based upon management’s periodic review of the collectability of      the loans in light of historical experience, the nature and volume of the      loan portfolio, adverse situations that may affect the borrower’s ability      to repay, the estimated value of any underlying collateral and prevailing      economic conditions. This evaluation is inherently subjective as it      requires estimates that are susceptible to significant revision as more      information becomes available.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|                           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|                           | The      allowance consists of specific, general and unallocated components. The      specific component relates to loans that are classified as either      doubtful, substandard or special mention. For such loans that are also      classified as impaired, an allowance is generally established when the      collateral value of the impaired loan is lower than the carrying value of      that loan. The general component covers non-classified loans and is based      on historical loss experience adjusted for qualitative factors. An      unallocated component is maintained to cover uncertainties that could      affect management’s estimate of probable losses. The unallocated component      of the allowance reflects the margin of imprecision inherent in the      underlying assumptions used in the methodologies for estimating specific      and general losses in theportfolio.                                                                                                                                                                                                                                    |

----

| FSB Community Bankshares,      Inc.             |
|-------------------------------------------------|
| Notes to      Consolidated Financial Statements |
| December      31, 2008 and 2007                 |

|                        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|-----------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                        | A      loan is considered impaired when, based on current information and events,      it is probable that the Bank will be unable to collect the scheduled      payments of principal or interest when due according to the contractual      terms of the loan agreement. Factors considered by management in      determining impairment include payment status, collateral value, and the      probability of collecting scheduled principal and interest payments when      due. Loans that experience insignificant payment delays and payment      shortfalls generally are not classified as impaired. Management determines      the significance of payment delays and payment shortfalls on a      case-by-case basis, taking into consideration all of the circumstances      surrounding the loan and the borrower, including the length of the delay,      the reasons for the delay, the borrower’s prior payment record, and the      amount of the shortfall in relation to the principal and interest owed.      Impairment is measured on a loan by loan basis by either the present value      of expected future cash flows discounted at the loan’s effective interest      rate or the fair value of the collateral if the loan is collateral      dependent. |
|                        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|                        | Large      groups of smaller balance homogeneous loans are collectively evaluated for      impairment. Accordingly, the Bank does not separately identify individual      consumer and residential loans for impairment  disclosures.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|                        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| Premises      and Equipment |
|                        |
|                        | Premises      and equipment are stated at cost. Depreciation and amortization are      computed on the straight-line basis over the shorter of the estimated      useful lives or lease terms of the related assets. Estimated useful lives      are generally 20 to 50 years for premises and 3 to 10 years for furniture      and equipment.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|                        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| Foreclosed      Real Estate |
|                        |
|                        | Real      estate properties acquired through, or in lieu of, loan foreclosure are      initially recorded at fair value less estimated selling costs at the date      of foreclosure. Any write-downs based on the asset’s fair value at date of      acquisition are charged to the allowance for loan losses. After      foreclosure, property held for sale is carried at the lower of the new      basis or fair value less any costs to sell. Costs of significant property      improvements are capitalized, whereas costs relating to holding property      are expensed. Valuations are periodically performed by management, and any      subsequent write-downs are recorded as a charge to operations, if      necessary, to reduce the carrying value of the property to the lower of      its cost or fair value less cost to sell.                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|                        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| Income      Taxes           |
|                        |
|                        | Income      taxes are provided for the tax effects of certain transactions reported in      the consolidated financial statements. Income taxes consist of taxes      currently due plus deferred taxes related primarily to temporary      differences between the financial reporting and income tax basis of the      allowance for loan losses, premises and equipment, certain state tax      credits, and deferred loan origination costs. The deferred tax assets and      liabilities represent the future tax return consequences of the temporary      differences, which will either be taxable or deductible when the assets      and liabilities are recovered or settled. Deferred tax assets are reduced      by a valuation allowance when, in the opinion of management, it is more      likely than not that some portion of the deferred tax assets will not be      realized. Deferred tax assets and liabilities are reflected at income tax      rates applicable to the period in which the deferred tax assets and      liabilities are expected to be realized or settled. As changes in tax laws      or rates are enacted, deferred tax assets and liabilities are adjusted      through the provision for incometaxes.                                              |

----

| FSB Community Bankshares,      Inc.             |
|-------------------------------------------------|
| Notes to      Consolidated Financial Statements |
| December      31, 2008 and 2007                 |

|                                         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|----------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Advertising      Costs                       |
|                                         |
|                                         | The      Company follows the policy of charging the costs of advertising to expense      as incurred.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|                                         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| Off-Balance      Sheet Financial Instruments |
|                                         |
|                                         | In      the ordinary course of business, the Bank has entered into off-balance      sheet financial instruments consisting of commitments to extend credit.      Such financial instruments are recorded in the consolidated balance sheets      when they are funded.                                                                                                                                                                                                                                                                                                                     |
|                                         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| Transfers      of Financial Assets           |
|                                         |
|                                         | Transfers      of financial assets are accounted for as sales, when control over the      assets has been surrendered. Control over transferred assets is deemed to      be surrendered when (1) the assets have been isolated from the Company,      (2) the transferee obtains the right (free of conditions that constrain it      from taking advantage of that right) to pledge or exchange the transferred      assets, and (3) the Company does not maintain effective control over the      transferred assets through an agreement to repurchase them before their      maturity. |
|                                         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| Comprehensive      Income (Loss)             |
|                                         |
|                                         | Accounting      principles generally require that recognized revenue, expenses, gains, and      losses be included in net income. Although certain changes in assets and      liabilities, such as unrealized gains and losses on available for sale      securities, are reported as a separate component of the stockholders’      equity section of the consolidated balance sheets, such items, along with      net income (loss), are components of comprehensive income      (loss).                                                                                           |
|                                         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|                                         | The      components of other comprehensive income (loss) and related tax effects      for the years ended December 31, 2008 and 2007 are as    follows:                                                                                                                                                                                                                                                                                                                                                                                                                                    |

|   |                                                                      |   | 2008                |    |   | 2007   |   |
|--------|---------------------------------------------------------------------------|--------|---------------------|---------|--------|--------|--------|
|   |                                                                      |   | (In      Thousands) |    |
|   |                                                                      |   |                |    |
|   | Unrealized      holding loss on available for sale securities             |   | $                   | (301    | )      |   | $      | (278 | ) |
|   | Reclassification      adjustment for realized gain included in net income |   |                | — |   |   |   | (81 | ) |
|   | Realized      loss on other than temporary impairment of securities       |   |                | 57      |   |   |   | — |   |
|   |                                                                      |   |                |    |   |   |   |   |   |
|   | Net      Unrealized Loss                                                  |   |                | (244    | )      |   |   | (359 | ) |
|   |                                                                      |   |                |    |   |   |   |   |   |
|   | Tax      effect                                                           |   |                | (83     | )      |   |   | (122 | ) |
|   |                                                                      |   |                |    |   |   |   |   |   |
|   | Net      of Tax Amount                                                    |   | $                   | (161    | )      |   | $      | (237 | ) |

----

| FSB Community Bankshares,      Inc.             |
|-------------------------------------------------|
| Notes to      Consolidated Financial Statements |
| December      31, 2008 and 2007                 |

|                                    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|-----------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Earnings      (Loss) Per Common Share   |
|                                    |
|                                    | Basic      earnings (loss) per common share is calculated by dividing net income      (loss) by the weighted-average number of common shares outstanding during      the period. The common shares issued to FSB Community Bankshares, MHC of      946,050 are assumed to be outstanding for all periods presented,      consistent with the provisions of SFAS No. 128, Earnings per Share,      pertaining to changes in capital structure. The 838,950 shares issued to      the public are included in the weighted average common shares outstanding      calculation only from the date such shares were issued. The Company has      not granted any restricted stock      awards or stock options and, during the years ended December 31, 2008 and      2007, had no potentially dilutive common stock equivalents. Unallocated      common shares held by the ESOP are not included in the weighted-average      number of common shares outstanding for purposes of calculating basic      earnings per common share until they are committed to be released. The      average common shares outstanding were 1,722,025 and 1,249,428 for the      years ended December 31, 2008 and December 31, 2007      respectively. |
|                                    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| Reclassifications                       |
|                                    |
|                                    | Amounts      in the prior year’s consolidated financial statements have been      reclassified whenever necessary to conform to the current year’s      presentation. Such reclassifications had no impact on net      income.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|                                    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| Recent      Accounting Standards Issued |
|                                    |
|                                    | FAS 141      (R)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|                                    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|                                    | FASB      Statement No. 141 (R) “Business Combinations” was issued in December of      2007. This Statement establishes principles and requirements for how the      acquirer of a business recognizes and measures in its financial statements      the identifiable assets acquired, the liabilities assumed, and any      non-controlling interest in the acquiree. The Statement also provides      guidance for recognizing and measuring the goodwill acquired in the      business combination and determines what information to disclose to enable      users of the financial statements to evaluate the nature and financial      effects of the business combination. This new pronouncement will impact      the Company’s acquisitions after January 1,  2009.                                                                                                                                                                                                                                                                                                                                                                                                                                                 |

----

| FSB Community Bankshares,      Inc.             |
|-------------------------------------------------|
| Notes to      Consolidated Financial Statements |
| December      31, 2008 and 2007                 |

|                             |   |                |   |   |                 |   |    |                  |   |   |      |   |
|----------------------------------|--------|---------------------|--------|--------|----------------------|--------|---------|-----------------------|--------|--------|-----------|--------|
|                             |   | AmortizedCost       |   |   | GrossUnrealizedGains |   |    | GrossUnrealizedLosses |   |   | FairValue |   |
|                             |   | (In      Thousands) |   |
| December      31, 2008:          |   |                |   |   |                 |   |    |                  |   |   |      |   |
| Available      for Sale:         |   |                |   |   |                 |   |    |                  |   |   |      |   |
| Equity      securities           |   | $                   | 9      |   |                 | $      | — |                  |   | $      | (3        | )      |   | $ | 6 |   |
| U.S.      Government obligations |   |                | 22,196 |   |                 |   | 82      |                  |   |   | (49       | )      |   |   | 22,229 |   |
| Mortgage-backed      securities  |   |                | 21,785 |   |                 |   | 38      |                  |   |   | (133      | )      |   |   | 21,690 |   |
|                             |   |                |   |   |                 |   |    |                  |   |   |      |   |   |   |   |   |
|                             |   | $                   | 43,990 |   |                 | $      | 120     |                  |   | $      | (185      | )      |   | $ | 43,925 |   |
|                             |   |                |   |   |                 |   |    |                  |   |   |      |   |   |   |   |   |
| Held      to Maturity:           |   |                |   |   |                 |   |    |                  |   |   |      |   |   |   |   |   |
| Mortgage-backed      securities  |   | $                   | 7,289  |   |                 | $      | — |                  |   | $      | (198      | )      |   | $ | 7,091 |   |
|                             |   |                |   |   |                 |   |    |                  |   |   |      |   |   |   |   |   |
| December      31, 2007:          |   |                |   |   |                 |   |    |                  |   |   |      |   |   |   |   |   |
| Available      for Sale:         |   |                |   |   |                 |   |    |                  |   |   |      |   |   |   |   |   |
| Equity      securities           |   | $                   | 65     |   |                 | $      | 179     |                  |   | $      | —   |   |   | $ | 244 |   |
|                             |   |                |   |   |                 |   |    |                  |   |   |      |   |   |   |   |   |
| Held      to Maturity:           |   |                |   |   |                 |   |    |                  |   |   |      |   |   |   |   |   |
| U.S.      Government obligations |   | $                   | 18,997 |   |                 | $      | 37      |                  |   | $      | (3        | )      |   | $ | 19,031 |   |
| Mortgage-backed      securities  |   |                | 9,553  |   |                 |   | 32      |                  |   |   | (19       | )      |   |   | 9,566 |   |
|                             |   |                |   |   |                 |   |    |                  |   |   |      |   |   |   |   |   |
|                             |   | $                   | 28,550 |   |                 | $      | 69      |                  |   | $      | (22       | )      |   | $ | 28,597 |   |

|                                        |   | Available      for Sale |    |   | Held      to Maturity    |   |
|---------------------------------------------|--------|-------------------------|---------|--------|--------------------------|--------|
|                                        |   | AmortizedCost           |    |   | EstimatedFair      Value |   |   | AmortizedCost |   |   | EstimatedFair      Value |   |
|                                        |   | (In      Thousands)     |    |   | (In      Thousands)      |   |
|                                        |   |                    |    |   |                     |   |   |   |   |   |   |   |
| Due      in one year or less                |   | $                       | — |   |                     | $      | — |   |   | $ | — |   |   | $ | — |   |
| Due      after one year through five years  |   |                    | 1,500   |   |                     |   | 1,501 |   |   |   | — |   |   |   | — |   |
| Due      after five years through ten years |   |                    | 8,360   |   |                     |   | 8,398 |   |   |   | — |   |   |   | — |   |
| Due      after ten years                    |   |                    | 12,336  |   |                     |   | 12,330 |   |   |   | — |   |   |   | — |   |
| Mortgage-backed      securities             |   |                    | 21,785  |   |                     |   | 21,690 |   |   |   | 7,289 |   |   |   | 7,091 |   |
|                                        |   | $                       | 43,981  |   |                     | $      | 43,919 |   |   | $ | 7,289 |   |   | $ | 7,091 |   |

----

| FSB Community Bankshares,      Inc.             |
|-------------------------------------------------|
| Notes to      Consolidated Financial Statements |
| December      31, 2008 and 2007                 |

|                             |   |                     |   |   |                   |   |   |      |   |   |                  |   |   |      |    |   |                  |   |
|----------------------------------|--------|--------------------------|--------|--------|------------------------|--------|--------|-----------|--------|--------|-----------------------|--------|--------|-----------|---------|--------|-----------------------|--------|
|                             |   | Less      than 12 Months |   |   | 12      Months or More |   |   | Total     |   |
|                             |   | FairValue                |   |   | GrossUnrealizedLosses  |   |   | FairValue |   |   | GrossUnrealizedLosses |   |   | FairValue |    |   | GrossUnrealizedLosses |   |
|                             |   | (In      Thousands)      |   |
|                             |   |                     |   |   |                   |   |   |      |   |   |                  |   |   |      |    |   |                  |   |
| 2008:                            |   |                     |   |   |                   |   |   |      |   |   |                  |   |   |      |    |   |                  |   |
| Equity      securities           |   | $                        | 6      |   |                   | $      | 3      |      |   | $      | —               |   |   | $         | — |   |                  | $      | 6 |   |   | $ | 3 |   |
| U.S.      Government obligations |   |                     | 3,354  |   |                   |   | 49     |      |   |   | —               |   |   |      | — |   |                  |   | 3,354 |   |   |   | 49 |   |
| Mortgaged-backed      securities |   |                     | 22,556 |   |                   |   | 268    |      |   |   | 1,335                 |   |   |      | 63      |   |                  |   | 23,891 |   |   |   | 331 |   |
|                             |   |                     |   |   |                   |   |   |      |   |   |                  |   |   |      |    |   |                  |   |   |   |   |   |   |   |
|                             |   | $                        | 25,916 |   |                   | $      | 320    |      |   | $      | 1,335                 |   |   | $         | 63      |   |                  | $      | 27,251 |   |   | $ | 383 |   |
|                             |   |                     |   |   |                   |   |   |      |   |   |                  |   |   |      |    |   |                  |   |   |   |   |   |   |   |
| 2007:                            |   |                     |   |   |                   |   |   |      |   |   |                  |   |   |      |    |   |                  |   |   |   |   |   |   |   |
| U.S.      Government obligations |   | $                        | 1,000  |   |                   | $      | 2      |      |   | $      | 2,998                 |   |   | $         | 1       |   |                  | $      | 3,998 |   |   | $ | 3 |   |
| Mortgaged-backed      securities |   |                     | 1,466  |   |                   |   | 6      |      |   |   | 740                   |   |   |      | 13      |   |                  |   | 2,206 |   |   |   | 19 |   |
|                             |   |                     |   |   |                   |   |   |      |   |   |                  |   |   |      |    |   |                  |   |   |   |   |   |   |   |
|                             |   | $                        | 2,466  |   |                   | $      | 8      |      |   | $      | 3,738                 |   |   | $         | 14      |   |                  | $      | 6,204 |   |   | $ | 22 |   |

----

| FSB Community Bankshares,      Inc.             |
|-------------------------------------------------|
| Notes to      Consolidated Financial Statements |
| December      31, 2008 and 2007                 |

|   |                                           |   |                |    |   |   |   |
|--------|------------------------------------------------|--------|---------------------|---------|--------|--------|--------|
|   |                                           |   | 2008                |    |   | 2007   |   |
|   |                                           |   | (In      Thousands) |    |
|   |                                           |   |                |    |   |   |   |
|   | Real      estate loans:                        |   |                |    |   |   |   |
|   | Secured      by one to four family residences  |   | $                   | 123,880 |   |   | $      | 113,267 |   |
|   | Secured      by five or more family residences |   |                | 846     |   |   |   | 918 |   |
|   | Construction                                   |   |                | 316     |   |   |   | 1,114 |   |
|   | Commercial                                     |   |                | 2,119   |   |   |   | 2,123 |   |
|   | Home      equity lines of credit               |   |                | 8,214   |   |   |   | 6,622 |   |
|   | Other                                          |   |                | 148     |   |   |   | 200 |   |
|   |                                           |   |                |    |   |   |   |   |   |
|   | Total      Loans                               |   |                | 135,523 |   |   |   | 124,244 |   |
|   |                                           |   |                |    |   |   |   |   |   |
|   | Net      deferred loan origination costs       |   |                | 535     |   |   |   | 401 |   |
|   | Allowance      for loan losses                 |   |                | (345    | )      |   |   | (319 | ) |
|   |                                           |   |                |    |   |   |   |   |   |
|   | Net      Loans                                 |   | $                   | 135,713 |   |   | $      | 124,326 |   |

|   |                           |   |                |    |   |   |   |
|--------|--------------------------------|--------|---------------------|---------|--------|--------|--------|
|   |                           |   | 2008                |    |   | 2007   |   |
|   |                           |   | (In      Thousands) |    |
|   |                           |   |                |    |   |   |   |
|   | Balance      at January 1      |   | $                   | 319     |   |   | $      | 322 |   |
|   | Provision      for loan losses |   |                | 24      |   |   |   | — |   |
|   | Loans      charged-off         |   |                | — |   |   |   | (3 | ) |
|   | Recoveries                     |   |                | 2       |   |   |   | — |   |
|   |                           |   |                |    |   |   |   |   |   |
|   | Balance      at December 31    |   | $                   | 345     |   |   | $      | 319 |   |

----

| FSB Community Bankshares,      Inc.             |
|-------------------------------------------------|
| Notes to      Consolidated Financial Statements |
| December      31, 2008 and 2007                 |

|   |                                           |   |                |   |   |   |   |
|--------|------------------------------------------------|--------|---------------------|--------|--------|--------|--------|
|   |                                           |   | 2008                |   |   | 2007   |   |
|   |                                           |   | (In      Thousands) |   |
|   |                                           |   |                |   |   |   |   |
|   | Premises                                       |   | $                   | 2,763  |   |   | $      | 2,761 |   |
|   | Furniture,      fixtures and equipment         |   |                | 1,556  |   |   |   | 1,587 |   |
|   | Construction      in progress                  |   |                | 12     |   |   |   | — |   |
|   |                                           |   |                |   |   |   |   |   |   |
|   |                                           |   |                | 4,331  |   |   |   | 4,348 |   |
|   | Accumulated      depreciation and amortization |   |                | (2,023 | )      |   |   | (1,823 | ) |
|   |                                           |   |                |   |   |   |   |   |   |
|   |                                           |   | $                   | 2,308  |   |   | $      | 2,525 |   |

|   |   |                |   |   |     |   |   |        |   |   |   |   |
|--------|--------|---------------------|--------|--------|----------|--------|--------|-------------|--------|--------|--------|--------|
|   |   | Webster             |   |   | Penfield |   |   | Irondequoit |   |   | Total  |   |
|   |   | (In      Thousands) |   |
|   |   |                |   |   |     |   |   |        |   |   |   |   |
| 2009   |   | $                   | 34     |   |     | $      | 72     |        |   | $      | 55     |   |   | $ | 161 |   |
| 2010   |   |                | 68     |   |     |   | 72     |        |   |   | 55     |   |   |   | 195 |   |
| 2011   |   |                | 68     |   |     |   | 72     |        |   |   | 55     |   |   |   | 195 |   |
| 2012   |   |                | 68     |   |     |   | 72     |        |   |   | 63     |   |   |   | 203 |   |
| 2013   |   |                | 68     |   |     |   | 79     |        |   |   | 63     |   |   |   | 210 |   |
|   |   |                |   |   |     |   |   |        |   |   |   |   |   |   |   |   |
|   |   | $                   | 306    |   |     | $      | 367    |        |   | $      | 291    |   |   | $ | 964 |   |

----

| FSB      Community Bankshares, Inc.             |
|-------------------------------------------------|
| Notes      to Consolidated Financial Statements |
| December      31, 2008 and 2007                 |

|   |                                  |   |                |    |   |   |   |
|--------|---------------------------------------|--------|---------------------|---------|--------|--------|--------|
|   |                                  |   | 2008                |    |   | 2007   |   |
|   |                                  |   | (In      Thousands) |    |
|   |                                  |   |                |    |   |   |   |
|   | Non-interest      bearing             |   | $                   | 3,487   |   |   | $      | 3,169 |   |
|   | NOW      accounts                     |   |                | 7,582   |   |   |   | 5,513 |   |
|   | Regular      savings and demand clubs |   |                | 13,457  |   |   |   | 13,605 |   |
|   | Money      market                     |   |                | 15,685  |   |   |   | 10,665 |   |
|   | Individual      retirement accounts   |   |                | 16,812  |   |   |   | 16,157 |   |
|   | Certificates      of deposit          |   |                | 70,499  |   |   |   | 70,049 |   |
|   |                                  |   |                |    |   |   |   |   |   |
|   |                                  |   | $                   | 127,522 |   |   | $      | 119,158 |   |

|   |   |   |   |   |   |
|--------|--------|--------|--------|--------|--------|
|   | 2009   |   | $      | 50,114 |   |
|   | 2010   |   |   | 27,398 |   |
|   | 2011   |   |   | 3,856  |   |
|   | 2012   |   |   | 4,834  |   |
|   | 2013   |   |   | 1,109  |   |
|   |   |   |   |   |   |
|   |   |   | $      | 87,311 |   |

|   |                                  |   |                |   |   |   |   |
|--------|---------------------------------------|--------|---------------------|--------|--------|--------|--------|
|   |                                  |   | 2008                |   |   | 2007   |   |
|   |                                  |   | (In      Thousands) |   |
|   |                                  |   |                |   |   |   |   |
|   | NOW      accounts                     |   | $                   | 75     |   |   | $      | 37 |   |
|   | Regular      savings and demand clubs |   |                | 134    |   |   |   | 185 |   |
|   | Money      market                     |   |                | 263    |   |   |   | 301 |   |
|   | Individual      retirement accounts   |   |                | 709    |   |   |   | 698 |   |
|   | Certificates      of deposit          |   |                | 2,958  |   |   |   | 3,100 |   |
|   |                                  |   |                |   |   |   |   |   |   |
|   |                                  |   | $                   | 4,139  |   |   | $      | 4,321 |   |

----

| FSB      Community Bankshares, Inc.              |
|--------------------------------------------------|
| Notes      to Consolidated Financial Statements  |
| December      31, 2008 and 2007                  |
|                                             |
| Note      6 - Short-Term and Long-TermBorrowings |

|   |        |   |         |     |        |   |   |   |                |    |   |   |    |   |
|--------|-------------|--------|--------------|----------|-------------|--------|--------|--------|---------------------|---------|--------|--------|---------|--------|
|   | AdvanceDate |   | MaturityDate |     | CurrentRate |   | 2008   |   | 2007                |    |
|   |        |   |         |     |        |   |   |   | (In      Thousands) |    |
|   | 04/08/04    |   |         | 04/08/08 |        |   | 3.34   | %      | $                   | — |   | $      | 1,500   |   |
|   | 11/18/04    |   |         | 11/18/08 |        |   | 3.87   | %      |                | — |   |   | 1,000   |   |
|   | 11/29/04    |   |         | 12/01/08 |        |   | 4.10   | %      |                | — |   |   | 1,000   |   |
|   | 11/29/04    |   |         | 11/30/09 |        |   | 3.94   | %      |                | 216     |   |   | 424     |   |
|   | 03/22/05    |   |         | 03/23/09 |        |   | 4.60   | %      |                | 750     |   |   | 750     |   |
|   | 03/22/05    |   |         | 03/22/10 |        |   | 4.73   | %      |                | 750     |   |   | 750     |   |
|   | 08/18/05    |   |         | 08/18/10 |        |   | 4.70   | %      |                | 1,000   |   |   | 1,000   |   |
|   | 09/06/05    |   |         | 09/06/11 |        |   | 4.53   | %      |                | 1,000   |   |   | 1,000   |   |
|   | 09/14/05    |   |         | 09/14/15 |        |   | 4.75   | %      |                | 844     |   |   | 895     |   |
|   | 11/01/05    |   |         | 11/02/09 |        |   | 5.05   | %      |                | 1,000   |   |   | 1,000   |   |
|   | 11/01/05    |   |         | 11/01/10 |        |   | 4.95   | %      |                | 430     |   |   | 629     |   |
|   | 11/16/05    |   |         | 11/18/13 |        |   | 5.19   | %      |                | 1,000   |   |   | 1,000   |   |
|   | 11/16/05    |   |         | 11/16/12 |        |   | 5.18   | %      |                | 1,000   |   |   | 1,000   |   |
|   | 11/16/05    |   |         | 11/16/10 |        |   | 5.11   | %      |                | 1,000   |   |   | 1,000   |   |
|   | 06/05/06    |   |         | 06/06/16 |        |   | 5.63   | %      |                | 1,000   |   |   | 1,000   |   |
|   | 06/05/06    |   |         | 06/05/14 |        |   | 5.60   | %      |                | 1,000   |   |   | 1,000   |   |
|   | 08/17/06    |   |         | 08/19/13 |        |   | 5.45   | %      |                | 1,000   |   |   | 1,000   |   |
|   | 08/17/06    |   |         | 08/17/15 |        |   | 5.50   | %      |                | 1,000   |   |   | 1,000   |   |
|   | 08/24/06    |   |         | 08/24/11 |        |   | 5.39   | %      |                | 583     |   |   | 775     |   |
|   | 09/08/06    |   |         | 09/09/13 |        |   | 5.32   | %      |                | 729     |   |   | 858     |   |
|   | 11/28/06    |   |         | 11/28/11 |        |   | 5.00   | %      |                | 1,000   |   |   | 1,000   |   |
|   | 10/25/07    |   |         | 10/25/10 |        |   | 4.52   | %      |                | 1,000   |   |   | 1,000   |   |
|   | 11/27/07    |   |         | 11/27/09 |        |   | 4.04   | %      |                | 1,000   |   |   | 1,000   |   |
|   | 11/27/07    |   |         | 11/27/12 |        |   | 4.46   | %      |                | 1,000   |   |   | 1,000   |   |
|   | 12/12/07    |   |         | 12/14/09 |        |   | 4.09   | %      |                | 1,000   |   |   | 1,000   |   |
|   | 12/12/07    |   |         | 12/12/11 |        |   | 4.36   | %      |                | 1,000   |   |   | 1,000   |   |
|   | 12/28/07    |   |         | 12/28/10 |        |   | 4.09   | %      |                | 1,000   |   |   | 1,000   |   |
|   | 01/04/08    |   |         | 01/04/11 |        |   | 3.71   | %      |                | 500     |   |   | — |   |
|   | 01/04/08    |   |         | 01/04/13 |        |   | 4.04   | %      |                | 500     |   |   | — |   |
|   | 01/15/08    |   |         | 01/18/11 |        |   | 3.45   | %      |                | 500     |   |   | — |   |
|   | 01/15/08    |   |         | 01/17/12 |        |   | 3.65   | %      |                | 500     |   |   | — |   |
|   | 01/15/08    |   |         | 01/15/13 |        |   | 3.81   | %      |                | 500     |   |   | — |   |

|   | 01/29/08 |   |   | 01/29/10 |   |   | 3.11   | %      |   | 1,000  |   |   | — |   |
|--------|----------|--------|--------|----------|--------|--------|--------|--------|--------|--------|--------|--------|---------|--------|
|   | 01/29/08 |   |   | 01/31/11 |   |   | 3.37   | %      |   | 1,000  |   |   | — |   |
|   | 02/13/08 |   |   | 02/13/09 |   |   | 2.69   | %      |   | 1,000  |   |   | — |   |
|   | 02/13/08 |   |   | 02/16/10 |   |   | 2.39   | %      |   | 1,000  |   |   | — |   |
|   | 02/13/08 |   |   | 02/13/13 |   |   | 3.39   | %      |   | 2,582  |   |   | — |   |
|   | 02/19/08 |   |   | 02/19/09 |   |   | 2.78   | %      |   | 1,000  |   |   | — |   |
|   | 02/19/08 |   |   | 02/22/11 |   |   | 2.85   | %      |   | 2,000  |   |   | — |   |
|   | 02/19/08 |   |   | 02/21/12 |   |   | 3.73   | %      |   | 1,000  |   |   | — |   |
|   | 02/20/08 |   |   | 02/20/13 |   |   | 3.29   | %      |   | 2,000  |   |   | — |   |
|   | 06/12/08 |   |   | 06/12/13 |   |   | 4.36   | %      |   | 1,849  |   |   | — |   |
|   | 06/12/08 |   |   | 06/12/15 |   |   | 4.70   | %      |   | 1,898  |   |   | — |   |
|   | 11/21/08 |   |   | 11/21/13 |   |   | 4.48   | %      |   | 1,500  |   |   | — |   |
|   |     |   |   |     |   |   |   |   |   |   |   |   |    |   |
|   |     |   |   |     |   |   |   |   | $      | 41,631 |   | $      | 25,581  |   |

----

| FSB      Community Bankshares, Inc.                            |
|----------------------------------------------------------------|
| Notes      to Consolidated Financial Statements                |
| December      31, 2008 and 2007                                |
|                                                           |
| Note      6 - Short-Term and Long-Term Borrowings  (continued) |

|       |   | ContractualMaturity |   |   | WeightedAverage      Rate |   |   | Next      CallDate |   |   | WeightedAverage      Rate |   |
|------------|--------|---------------------|--------|--------|---------------------------|--------|--------|--------------------|--------|--------|---------------------------|--------|
| 2009       |   | $                   | 5,966  |   |                      |   | 3.85   | %                  |   | $      | 1,000                     |   |   |   | 2.39 | % |
| 2010       |   |                | 7,180  |   |                      |   | 4.12   |               |   |   | 2,000                     |   |   |   | 2.85 |   |
| 2011       |   |                | 7,583  |   |                      |   | 3.91   |               |   |   | 2,000                     |   |   |   | 3.29 |   |
| 2012       |   |                | 3,500  |   |                      |   | 4.34   |               |   |   | —                   |   |   |   | — |   |
| 2013       |   |                | 11,660 |   |                      |   | 4.15   |               |   |   | —                   |   |   |   | — |   |
| Thereafter |   |                | 5,742  |   |                      |   | 5.17   |               |   |   | —                   |   |   |   | — |   |
|       |   |                |   |   |                      |   |   |               |   |   |                      |   |   |   |   |   |
|       |   | $                   | 41,631 |   |                      |   | 4.21   | %                  |   | $      | 5,000                     |   |   |   | 2.93 | % |

|   |     |   | 2008                |    |   | 2007   |   |
|--------|----------|--------|---------------------|---------|--------|--------|--------|
|   |     |   | (In      Thousands) |    |
|   | Current  |   |                |    |   |   |   |
|   | Federal  |   | $                   | 23      |   |   | $      | (152 | ) |
|   | State    |   |                | — |   |   |   | 2 |   |
|   | Deferred |   |                | 21      |   |   |   | (6 | ) |
|   |     |   | $                   | 44      |   |   | $      | (156 | ) |

----

| FSB      Community Bankshares, Inc.             |
|-------------------------------------------------|
| Notes      to Consolidated Financial Statements |
| December      31, 2008 and 2007                 |
|                                            |
| Note 7 - Income Taxes      (Continued)          |

|                                       |   |   |      |   |                    |   |    |   |   |   |                  |   |
|--------------------------------------------|--------|--------|-----------|--------|-------------------------|--------|---------|--------|--------|--------|-----------------------|--------|
|                                       |   | 2008   |      |   | 2007                    |   |
|                                       |   | Amount |      |   | %      of Pre-taxIncome |   |    | Amount |   |   | %      of Pre-taxLoss |   |
| Federal      Tax at a Statutory rate       |   | $      | 23        |   |                    |   | 34      | %      |   | $      | (149                  | )      |   |   | (34 | )% |
| State      taxes, net of Federal provision |   |   | —   |   |                    |   | — |   |   |   | 1                     |   |   |   | — |   |
| Change      in valuation allowance         |   |   |  107 |   |                    |   | 155     | %      |   |   |  50              |   |   |   |  11 |   |
| Other      items                           |   |   | (86       | )      |                    |   | (125    | )      |   |   | (58                   | )      |   |   | (13 | ) |
| Income      tax provision (benefit)        |   | $      | 44        |   |                    |   | 64      | %      |   | $      | (156                  | )      |   |   | (36 | )% |

|   |                                                       |   |                |    |    |   |   |
|--------|------------------------------------------------------------|--------|---------------------|---------|---------|--------|--------|
|   |                                                       |   | 2008                |    |    | 2007   |   |
|   |                                                       |   | (In      Thousands) |    |
|   | Deferred      tax assets:                                  |   |                |    |    |   |   |
|   | Deferred      loan origination fees                        |   | $                   | 20      |    |   | $      | 27 |   |
|   | Pension      expense                                       |   |                | — |    |   |   | 7 |   |
|   | Allowance      for loan losses - Federal                   |   |                | 26      |    |   |   | 16 |   |
|   | Accrued      bonuses                                       |   |                | — |    |   |   | 10 |   |
|   | Charitable      contributions                              |   |                | 16      |    |   |   | 13 |   |
|   | State      tax credits                                     |   |                | 382     |    |   |   | 263 |   |
|   | Depreciation                                               |   |                | 17      |    |   |   | — |   |
|   | Supplemental      Executive Retirement Plan                |   |                | 19      |    |   |   | — |   |
|   | Other      than temporary impairment loss on securities    |   |                | 22      |    |   |   | — |   |
|   | Unrealized      loss on securities available for sale      |   |                | 25      |    |   |   | — |   |
|   | Other                                                      |   |                | 2       |    |   |   | 2 |   |
|   |                                                       |   |                |    |    |   |   |   |   |
|   |                                                       |   |                | 529     |    |   |   | 338 |   |
|   | Valuation      allowance                                   |   |                | (386    | )       |   |   | (279 | ) |
|   | Total      deferred tax assets, net of valuation allowance |   |                | 143     |    |   |   | 59 |   |
|   |                                                       |   |                |    |    |   |   |   |   |
|   | Deferred      tax liabilities:                             |   |                |    |    |   |   |   |   |
|   | Depreciation                                               |   |                | — |    |   |   | (22 | ) |
|   | Unrealized      gain on securities available for sale      |   |                | — |    |   |   | (61 | ) |
|   | Other                                                      |   |                | (102    | )  |   |   | — |   |
|   |                                                       |   |                |    |    |   |   |   |   |
|   | Total      deferred tax liabilities                        |   |                | (102    | )       |   |   | (83 | ) |
|   |                                                       |   |                |    |    |   |   |   |   |
|   | Net      deferred tax asset (liability)                    |   | $                   | 41      |    |   | $      | (24 | ) |

----

| FSB      Community Bankshares, Inc.             |
|-------------------------------------------------|
| Notes      to Consolidated Financial Statements |
| December      31, 2008 and 2007                 |

----

| FSB      Community Bankshares, Inc.             |
|-------------------------------------------------|
| Notes      to Consolidated Financial Statements |
| December      31, 2008 and 2007                 |

----

| FSB      Community Bankshares, Inc.             |
|-------------------------------------------------|
| Notes      to Consolidated Financial Statements |
| December      31, 2008 and 2007                 |

|   |                                            |   | 2008                |   |   | 2007   |   |
|--------|-------------------------------------------------|--------|---------------------|--------|--------|--------|--------|
|   |                                            |   | (In      Thousands) |   |
|   | Commitments      to extend credit:              |   |                |   |   |   |   |
|   | Commitments      to grant loans                 |   | $                   | 1,832  |   |   | $      | 998 |   |
|   | Unfunded      commitments under lines of credit |   |                | 8,221  |   |   |   | 7,511 |   |
|   |                                            |   |                |   |   |   |   |   |   |
|   |                                            |   | $                   | 10,053 |   |   | $      | 8,509 |   |

----

| FSB      Community Bankshares, Inc.             |
|-------------------------------------------------|
| Notes      to Consolidated Financial Statements |
| December      31, 2008 and 2007                 |

|                                                       |   |                        |   |   |                              |   |   |                                                                         |   |   |        |   |   |   |      |   |   |   |
|------------------------------------------------------------|--------|-----------------------------|--------|--------|-----------------------------------|--------|--------|------------------------------------------------------------------------------|--------|--------|-------------|--------|--------|--------|-----------|--------|--------|--------|
|                                                       |   | Actual                      |   |   | For      Capital AdequacyPurposes |   |   | To      be Well Capitalizedunder      PromptCorrective      ActionProvisions |   |
|                                                       |   | Amount                      |   |   | Ratio                             |   |   | Amount                                                                       |   |   | Ratio       |   |   | Amount |      |   | Ratio  |   |
|                                                       |   | (Dollars      in Thousands) |   |
|                                                       |   |                        |   |   |                              |   |   |                                                                         |   |   |        |   |   |   |      |   |   |   |
| December      31, 2008:                                    |   |                        |   |   |                              |   |   |                                                                         |   |   |        |   |   |   |      |   |   |   |
| Total      risk-based capital (to risk-weighted assets)    |   | $                           | 16,660 |   |                              |   | 20.52  | %                                                                            |   | $      | >6,497   |   |   |   | 38.0 | %      |   | $      | >8,121 |   |   |   | 310.0 | % |
| Tier      1 capital (to risk-weighted assets)              |   |                        | 16,315 |   |                              |   | 20.09  |                                                                         |   |   | 33,248 |   |   |   | 34.0 |   |   |   | 34,873 |   |   |   | 3 6.0 |   |
| Tier      1 capital (leveraged - to adjusted total assets) |   |                        | 16,315 |   |                              |   | 8.47   |                                                                         |   |   | 37,707 |   |   |   | 34.0 |   |   |   | 39,633 |   |   |   | 3 5.0 |   |
| Tangible      capital (to adjusted total assets)           |   |                        | 16,315 |   |                              |   | 8.47   |                                                                         |   |   | 32,890 |   |   |   | 31.5 |   |   |   | N/A |   |   |   | N/A |   |
|                                                       |   |                        |   |   |                              |   |   |                                                                         |   |   |        |   |   |   |      |   |   |   |   |   |   |   |   |   |
| December      31, 2007:                                    |   |                        |   |   |                              |   |   |                                                                         |   |   |        |   |   |   |      |   |   |   |   |   |   |   |   |   |
| Total      risk-based capital (to risk-weighted assets)    |   | $                           | 16,533 |   |                              |   | 22.23  | %                                                                            |   | $      | >5,948   |   |   |   | 38.0 | %      |   | $      | >7,435 |   |   |   | 310.0 | % |
| Tier      1 capital (to risk-weighted assets)              |   |                        | 16,214 |   |                              |   | 21.81  |                                                                         |   |   | 32,974 |   |   |   | 34.0 |   |   |   | 34,461 |   |   |   | 3 6.0 |   |
| Tier      1 capital (leveraged - to adjusted total assets) |   |                        | 16,214 |   |                              |   | 9.89   |                                                                         |   |   | 36,555 |   |   |   | 34.0 |   |   |   | 38,193 |   |   |   | 35.0 |   |
| Tangible      capital (to adjusted total assets)           |   |                        | 16,214 |   |                              |   | 9.89   |                                                                         |   |   | 32,458 |   |   |   | 31.5 |   |   |   | N/A |   |   |   | N/A |   |

----

| FSB      Community Bankshares, Inc.             |
|-------------------------------------------------|
| Notes      to Consolidated Financial Statements |
| December      31, 2008 and 2007                 |

|   |                                                                                          |   |                |   |   |   |   |
|--------|-----------------------------------------------------------------------------------------------|--------|---------------------|--------|--------|--------|--------|
|   |                                                                                          |   | 2008                |   |   | 2007   |   |
|   |                                                                                          |   | (In      Thousands) |   |
|   |                                                                                          |   |                |   |
|   | Bank      GAAP equity                                                                         |   | $                   | 16,272 |   |   | $      | 16,332 |   |
|   | Net      unrealized (gains) losses on securities available for sale, net of income      taxes |   |                | 43     |   |   |   | (118 | ) |
|   |                                                                                          |   |                |   |   |   |   |   |   |
|   | Tangible      capital, core capital and Tier 1 risk-based capital                             |   |                | 16,315 |   |   |   | 16,214 |   |
|   |                                                                                          |   |                |   |   |   |   |   |   |
|   | Allowance      for loan losses                                                                |   |                | 345    |   |   |   | 319 |   |
|   |                                                                                          |   |                |   |   |   |   |   |   |
|   | Total      risk-based capital                                                                 |   | $                   | 16,660 |   |   | $      | 16,533 |   |

----

| FSB      Community Bankshares, Inc.             |
|-------------------------------------------------|
| Notes      to Consolidated Financial Statements |
| December      31, 2008 and 2007                 |

|   |                                                                                                                                                                                                    |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | Level      1: Unadjusted quoted prices in active markets that are accessible at the      measurement date for identical unrestricted assets or      liabilities.                                        |
|   |                                                                                                                                                                                                    |
|   | Level      2: Quoted prices in markets that are not active, or inputs that are      observable either directly or indirectly, for substantially the full term      of the asset or liability.           |
|   |                                                                                                                                                                                                    |
|   | Level      3: Prices or valuation techniques that require inputs that are both      significant to the fair value measurement and unobservable (i.e. supported      with little or no market activity). |

|                               |   |   |   |   |         |   |         |   |         |   |   |    |   |   |
|------------------------------------|--------|--------|--------|--------|--------------|--------|--------------|--------|--------------|--------|--------|---------|--------|--------|
| (In      Thousands)                |   |   | Total  |   | Level      1 |   | Level      2 |   | Level      3 |   |
|                               |   |   |   |   |         |   |         |   |         |   |   |    |   |
| Securities      available for sale |   | $      | 43,925 |   | $            | 6      |         | $      | 43,919       |   | $      | — |   |

----

| FSB      Community Bankshares, Inc.             |
|-------------------------------------------------|
| Notes      to Consolidated Financial Statements |
| December      31, 2008 and 2007                 |

| Note      12 - Fair Value Measurement and Fair Values of Financial Instruments      (continued) |
|-------------------------------------------------------------------------------------------------|
|                                                                                            |   |
| Investment      Securities                                                                      |
|                                                                                            |   |
|                                                                                            | The      fair value of securities available for sale (carried at fair value) and      held to maturity (carried at amortized cost) are determined by obtaining      quoted market prices on nationally recognized securities exchanges      (Level 1), or matrix pricing (Level 2), which is a mathematical      technique used widely in the industry to value debt securities without      relying exclusively on quoted market prices for the specific securities      but rather by relying on the securities’ relationship to other benchmark      quoted prices. For certain securities which are not traded in active      markets or are subject to transfer restrictions, valuations are adjusted      to reflect illiquidity and/or non-transferability, and such adjustments      are generally based on available market evidence (Level 3). In the absence      of such evidence, management’s best estimate is used. Management’s best      estimate consists of both internal and external support on certain Level 3      investments. Internal cash flow models using a present value formula that      includes assumptions market participants would use along with indicative      exit pricing obtained from broker/dealers (where available) were used to      support fair values of certain Level 3 investments. The Company had no      Level 3 investment securities at December 31, 2008. |
|                                                                                            |   |
| Investment      in FHLB Stock                                                                   |
|                                                                                            |   |
|                                                                                            | The      carrying value of FHLB stock approximates its fair value based on the      redemption provisions of the FHLB stock. |
|                                                                                            |   |
| Loans                                                                                           |
|                                                                                            |   |
|                                                                                            | The      fair values of loans are estimated using discounted cash flow analyses,      using market rates at the balance sheet date that reflect the credit and      interest rate-risk inherent in the loans. Projected future cash flows are      calculated based upon contractual maturity or call dates, projected      repayments and prepayments of principal. Generally, for variable rate      loans that reprice frequently and with no significant change in credit      risk, fair values are based on carrying values. |
|                                                                                            |   |
| Accrued      Interest Receivable and Payable                                                    |
|                                                                                            |   |
|                                                                                            | The      carrying amount of accrued interest receivable and payable approximates      fair value. |
|                                                                                            |   |
| Deposits                                                                                        |
|                                                                                            |   |
|                                                                                            | The      fair values disclosed for demand deposits (e.g., NOW accounts,      non-interest checking, regular savings and certain types of money market      accounts) are, by definition, equal to the amount payable on demand at the      reporting date (i.e., their carrying amounts). The carrying amounts for      variable-rate certificates of deposit approximate their fair values at the      reporting date. Fair values for fixed rate certificates of deposit are      estimated using a discounted cash flow calculation that applies market      interest rates currently being offered on certificates to a schedule of      aggregated expected monthly maturities on timedeposits. |
|                                                                                            |   |
| Borrowings                                                                                      |
|                                                                                            |   |
|                                                                                            | The      fair values of FHLB long-term borrowings are estimated using discounted      cash flow analyses, based on the quoted rates for new FHLB advances with      similar credit risk characteristics, terms and remaining maturity. The      carrying amount of short-term borrowings approximate their fair      value. |
|                                                                                            |   |
| Off-Balance      Sheet Instruments                                                              |
|                                                                                            |   |
|                                                                                            | The      fair values for off-balance sheet financial instruments (lending      commitments and lines of credit) are estimated using the fees currently      charged to enter into similar agreements, taking into account market      interest rates, the remaining terms and present credit worthiness of the      counterparties. |

----

| FSB      Community Bankshares, Inc.             |
|-------------------------------------------------|
| Notes      to Consolidated Financial Statements |
| December      31, 2008 and 2007                 |

|                                  |   |                |    |   |      |   |    |           |   |   |      |   |
|---------------------------------------|--------|---------------------|---------|--------|-----------|--------|---------|----------------|--------|--------|-----------|--------|
|                                  |   | 2008                |    |   | 2007      |   |
|                                  |   | CarryingAmount      |    |   | FairValue |   |    | CarryingAmount |   |   | FairValue |   |
|                                  |   | (In      Thousands) |    |
|                                  |   |                |    |   |      |   |    |           |   |   |      |   |
| Financial      assets:                |   |                |    |   |      |   |    |           |   |   |      |   |
| Cash      and due from banks          |   | $                   | 2,154   |   |      | $      | 2,154   |           |   | $      | 1,159     |   |   | $ | 1,159 |   |
| Interest      bearing demand deposits |   |                | 1,019   |   |      |   | 1,019   |           |   |   | 8,285     |   |   |   | 8,285 |   |
| Securities      available for sale    |   |                | 43,925  |   |      |   | 43,925  |           |   |   | 244       |   |   |   | 244 |   |
| Securities      held to maturity      |   |                | 7,289   |   |      |   | 7,091   |           |   |   | 28,550    |   |   |   | 28,597 |   |
| FHLB      stock                       |   |                | 2,312   |   |      |   | 2,312   |           |   |   | 1,405     |   |   |   | 1,405 |   |
| Loans,      net                       |   |                | 135,713 |   |      |   | 136,610 |           |   |   | 124,326   |   |   |   | 122,781 |   |
| Accrued      interest receivable      |   |                | 1,032   |   |      |   | 1,032   |           |   |   | 872       |   |   |   | 872 |   |
|                                  |   |                |    |   |      |   |    |           |   |   |      |   |   |   |   |   |
| Financial      liabilities:           |   |                |    |   |      |   |    |           |   |   |      |   |   |   |   |   |
| Deposits                              |   |                | 127,522 |   |      |   | 129,245 |           |   |   | 119,158   |   |   |   | 119,664 |   |
| Short-term      borrowings            |   |                | 3,850   |   |      |   | 3,850   |           |   |   | —   |   |   |   | — |   |
| Long-term      borrowings             |   |                | 41,631  |   |      |   | 41,899  |           |   |   | 25,581    |   |   |   | 25,210 |   |
| Accrued      interest payable         |   |                | 153     |   |      |   | 153     |           |   |   | 96        |   |   |   | 96 |   |
|                                  |   |                |    |   |      |   |    |           |   |   |      |   |   |   |   |   |
| Off-balance      sheet instruments:   |   |                |    |   |      |   |    |           |   |   |      |   |   |   |   |   |
| Commitments      to extend credit     |   |                | — |   |      |   | — |           |   |   | —   |   |   |   | — |   |

----

| FSB      Community Bankshares, Inc.             |
|-------------------------------------------------|
| Notes      to Consolidated Financial Statements |
| December      31, 2008 and 2007                 |

|   |                                                  |   |                |    |   |   |   |
|--------|-------------------------------------------------------|--------|---------------------|---------|--------|--------|--------|
|   |                                                  |   | December      31    |    |
|   |                                                  |   | 2008                |    |   | 2007   |   |
|   |                                                  |   | (In      Thousands) |    |
|   |                                                  |   |                |    |   |   |   |
|   | Assets                                                |   |                |    |   |   |   |
|   | Cash      and cash equivalents                        |   | $                   | 155     |   |   | $      | 96 |   |
|   | Securities      held to maturity                      |   |                | — |   |   |   | 3,050 |   |
|   | Securities      available for sale                    |   |                | 3,018   |   |   |   | — |   |
|   | Investment      in banking subsidiary                 |   |                | 16,272  |   |   |   | 16,332 |   |
|   | ESOP      Loan receivable                             |   |                | 636     |   |   |   | 653 |   |
|   | Accrued      interest receivable                      |   |                | 55      |   |   |   | 18 |   |
|   | Total      Assets                                     |   | $                   | 20,136  |   |   | $      | 20,149 |   |
|   |                                                  |   |                |    |   |   |   |   |   |
|   | Liabilities      & Stockholders’ Equity     |   |                |    |   |   |   |   |   |
|   |                                                  |   |                |    |   |   |   |   |   |
|   | Total      Liabilities                                |   | $                   | 95      |   |   | $      | — |   |
|   |                                                  |   |                |    |   |   |   |   |   |
|   | Stockholders’      equity                       |   |                | 20,041  |   |   |   | 20,149 |   |
|   |                                                  |   |                |    |   |   |   |   |   |
|   | Total      Liabilities and Stockholders’ Equity |   | $                   | 20,136  |   |   | $      | 20,149 |   |

|   |                                                               |   | Year      Ended December 31 |   |
|--------|--------------------------------------------------------------------|--------|-----------------------------|--------|
|   |                                                               |   | 2008                        |   |   | 2007 |   |
|   |                                                               |   | (In      Thousands)         |   |
|   |                                                               |   |                        |   |   |   |   |
|   | Interest      Income                                               |   | $                           | 142    |   |   | $ | 87 |   |
|   | Other      Expense                                                 |   |                        | (190   | ) |   |   | — |   |
|   | Equity      in undistributed earnings (loss) of banking subsidiary |   |                        | 73     |   |   |   | (368 | ) |
|   |                                                               |   |                        |   |   |   |   |   |   |
|   | Net      Income (loss)                                             |   | $                           | 25     |   |   | $ | (281 | ) |

----

| FSB      Community Bankshares, Inc.             |
|-------------------------------------------------|
| Notes      to Consolidated Financial Statements |
| December      31, 2008 and 2007                 |

|   |                                                                                              |   |                        |    |   |   |   |
|--------|---------------------------------------------------------------------------------------------------|--------|-----------------------------|---------|--------|--------|--------|
|   |                                                                                              |   | Year      Ended December 31 |    |
|   |                                                                                              |   | 2008                        |    |   | 2007   |   |
|   |                                                                                              |   | (In      Thousands)         |    |
|   |                                                                                              |   |                        |    |   |   |   |
|   | Cash      flows from operating activities                                                         |   |                        |    |   |   |   |
|   | Net      income (loss)                                                                            |   | $                           | 25      |   |   | $      | (281 | ) |
|   | Adjustments      to reconcile net income (loss) to net cash provided by operating      activities |   |                        |    |   |   |   |   |   |
|   | Equity      in undistributed (earnings) loss of banking subsidiary                                |   |                        | (73     | )      |   |   | 368 |   |
|   | Amortization      of premium on securities available for sale                                     |   |                        | 32      |   |   |   | — |   |
|   | Increase      in accrued interest receivable                                                      |   |                        | (37     | )      |   |   | (18 | ) |
|   | Net      increase in other liabilities                                                            |   |                        | 95      |   |   |   | — |   |
|   | Net      cash provided by operating activities                                                    |   |                        | 42      |   |   |   | 69 |   |
|   |                                                                                              |   |                        |    |   |   |   |   |   |
|   | Cash      flows from investing activities                                                         |   |                        |    |   |   |   |   |   |
|   | Purchases      of securities held to maturity                                                     |   |                        | — |   |   |   | (3,050 | ) |
|   | Proceeds      from maturities and calls of securities held to maturity                            |   |                        | 3,050   |   |   |   | — |   |
|   | Purchases      of securities available for sale                                                   |   |                        | (3,550  | )      |   |   | — |   |
|   | Proceeds      from maturities and calls of securities available for sale                          |   |                        | 500     |   |   |   | — |   |
|   | Payments      received on ESOP loan                                                               |   |                        | 17      |   |   |   | 47 |   |
|   | Net      cash provided (used) by investing activities                                             |   |                        | 17      |   |   |   | (3,003 | ) |
|   |                                                                                              |   |                        |    |   |   |   |   |   |
|   | Cash      flows from financing activities                                                         |   |                        |    |   |   |   |   |   |
|   | Net      proceeds from common stock offering                                                      |   |                        | — |   |   |   | 7,462 |   |
|   | Cash      provided to ESOP for purchase of shares                                                 |   |                        | — |   |   |   | (700 | ) |
|   | Capital      contributed to banking subsidiary                                                    |   |                        | — |   |   |   | (3,742 | ) |
|   | Net      cash provided by financing activities                                                    |   |                        | — |   |   |   | 3,020 |   |
|   |                                                                                              |   |                        |    |   |   |   |   |   |
|   | Net      increase in cash and cash equivalents                                                    |   |                        | 59      |   |   |   | 86 |   |
|   | Cash      and cash equivalents - beginning                                                        |   |                        | 96      |   |   |   | 10 |   |
|   |                                                                                              |   |                        |    |   |   |   |   |   |
|   | Cash      and cash equivalents - ending                                                           |   | $                           | 155     |   |   | $      | 96 |   |