Victory State Bank

Victory State Bank is a state-chartered, stock commercial bank, which was formed on November 13, 1997 with initial capital of $7,000,000 and commenced operations on November 17, 1997. The initial capital was raised in a public offering, primarily in the borough of Staten Island. The Bank operates five full service locations in Staten Island, the main office in Great Kills, the second on Forest Avenue, the third on Hyatt Street, the fourth branch on Hylan Boulevard and the fifth on Bay Street.

The Bank's results of operations are dependent primarily on net interest income, which is the difference between the income earned on its loan and investment portfolios and its direct costs of funds, consisting of interest paid on its deposits. The Bank's operating expenses principally consist of employee compensation and benefits, occupancy expenses, professional fees, advertising and marketing expenses and other general and administrative expenses.

The Bank's results of operations are significantly affected by general economic and competitive conditions, particularly changes in market interest rates, government policies and actions of regulatory authorities.