May 10, 2007

LNB BANCORP, INC. COMPLETES ACQUISITION OF MORGAN BANCORP, INC.
Combination creates $975 million “community bank of scale” in Northeast Ohio 

LNB Bancorp, Inc. (NASDAQ: LNBB) announced the completion of its acquisition of Morgan Bancorp, Inc. and its wholly-owned subsidiary, Morgan Bank, N.A., both based in Hudson, Ohio, effective May 10, 2007.

Shareholders of Morgan Bancorp overwhelmingly approved the merger at a special meeting on May 9, 2007. With approximately $125 million in assets, Morgan Bank operates from one location in Hudson, where it enjoys the number one deposit market share position in the community. With the merger LNB Bancorp has nearly $1 billion in total assets and 23 retail branches and 29 ATM locations in Lorain, eastern Erie, Cuyahoga and Summit counties.  

“We are delighted to welcome the Morgan shareholders, employees and customers to the LNB family,” said Daniel E. Klimas, president and chief executive officer of LNB Bancorp and Lorain National Bank. “This merger is consistent with our strategy of creating a community bank of scale in Northeast Ohio. LNB and Morgan share a common focus on local-decision making, quality customer service and strong community involvement. ”

LNB Bancorp’s Morgan Bank division will be led by William “Wink” Dougherty in the Hudson area. Morgan’s local branch in Hudson will continue to be available to customers, operating at the same convenient hours, with the same courteous professionals they have come to know. 

“Those of us in the Morgan family are delighted to join the LNB family,” said Dougherty. “Retaining the Morgan name and local management are strong testimonials to the fact that we will continue to put community first. In addition, our customers will have the opportunity to access an expanded array of products and services.”

Upon the closing of the merger, J. Martin Erbaugh, formerly the chairman of the board of Morgan Bancorp, Inc., was elected as a member of the Board of Directors of LNB Bancorp and Lorain National Bank. Erbaugh is president of JM Erbaugh Co., a private investment firm.

“It is indeed a great pleasure to serve on the LNB boards,” said Erbaugh. “LNB has charted an exciting course for the future and those of us associated with Morgan are proud to be a part of it.”