Feb 26, 2008

LNB BANCORP, INC. REPORTS FOURTH QUARTER EARNINGS INCREASE 81 PERCENT

• Solid commercial loan growth
• Credit quality shows improvement in second half of the year
• Morgan Bancorp acquisition contributes to enhanced revenue performance

Lorain, Ohio--LNB Bancorp, Inc. (NASDAQ:LNBB) today reported financial results for the fourth quarter and full year ended December 31, 2007.

Net income for the fourth quarter of 2007 was $1,668,000, or $0.23 per diluted share, up 81.7 percent from net income of $918,000 or $0.14 per diluted share, for the fourth quarter of 2006. Net income for 2007 totaled $5,512,000, or $0.79 per diluted share, compared to net income of $5,424,000, or $0.84 per diluted share, for 2006. Much of the growth in net income came in the second half of the year which increased 54% over the first half of 2007. Both the fourth quarter and full year of 2006 results were impacted by an increase in the provision for loan losses. Earnings per share were affected by the issuance of 851,990 shares in May, 2007 as part of the acquisition of Morgan Bancorp.

"The 54 percent improvement in performance in the second half of 2007 over the first six months of the year was very encouraging and is further testimony to the solid progress we are continuing to make with our long-term strategy," said Daniel E. Klimas, president and chief executive officer of LNB Bancorp, Inc. Specifically, Klimas pointed to a significant increase in commercial loan growth and improved credit quality.

"Non-performing loans in the fourth quarter of 2007 declined $2 million, or 15.5 percent, from the same period a year ago. This improvement in overall credit quality is very heartening and is a reflection of the additional controls we implemented over our credit administration process over the past 15 months," said Klimas. The majority of this improvement was primarily due to loans becoming current or paid-off.

"The investments we have made in facilities and personnel over the past two years have enhanced the bank's income and opportunities for growth," said Klimas. These investments include the acquisition of Morgan Bancorp of Hudson, Ohio last May, the construction of two offices in high growth areas of Lorain County and the opening of a business development office in adjoining Cuyahoga County.

"With these positive developments, we continue to create a community bank of scale that is competing effectively in our markets,"he said. "We genuinely appreciate the efforts of our associates and value the strategic support of our board of directors in these positive developments.

"While we expect to operate in a difficult economic environment in 2008, we will continue our focus on growing revenue, effectively managing our expenses and improving our credit quality," said Klimas.

Fourth Quarter Review
Fourth quarter net interest income totaled $7.8 million, up $927,000 from the same period a year ago. While some of this increase was attributable to the acquisition of Morgan Bank of Hudson, Ohio in May 2007, the Company experienced solid growth in commercial loans and an increase in interest income from securities. Average earning assets increased 19 percent in the last quarter of 2007 compared with the same quarter a year ago.

The fourth quarter continued to prove to be a difficult banking environment with a rapidly changing yield curve and a challenging competitive environment. The net interest margin was 3.24 percent for the fourth quarter of 2007, down seven basis points from 3.31 percent for the third quarter of 2007 and 26 basis points from 3.50 percent for the fourth quarter of 2006.

Noninterest income was $3.1 million for the fourth quarter of 2007, an increase of $273,000, or 9.75 percent, compared to the fourth quarter of 2006. The increase was largely from net gains of $233,000 recorded on the sale of indirect loans and mortgage loans to the secondary market. The Company retains the servicing rights for these loans. The sale of high quality indirect loans was a primary activity of Morgan Bank prior to the acquisition and is continued by the Company.

Other types of non-interest income grew as well, including an increase of $198,000 in service charges on deposit accounts and ATM charges reflecting continued momentum in fee-based services The fourth quarter of 2006 included a gain of $234,000 on the sale of Other Real Estate Owned as compared to $38,000 during the fourth quarter of 2007.

Non-interest expense was $8.1 million for the quarter as compared to $7.3 million for the fourth quarter of 2006. Increases of approximately $372,000 in occupancy, postage, supplies and delivery, telephone and furniture and equipment primarily are associated with the Morgan acquisition as well as other facilities opened in over the past two years. While making these significant investments for the future, the Company has had success in limiting related increases in overhead expense. The Company also expects to achieve considerable savings in technology costs as LNB and Morgan systems were merged during December 2007. The $744,000 increase in non-interest expense also includes an increase of $208,000 in expenses related to Other Real Estate Owned such as real estate taxes and insurance costs, as well as an increased level of other operating charge-offs and losses primarily related to overdrafts as the economy continues to weaken.

The provision for loan losses was $578,000 for the fourth quarter of 2007, down from $787,000 for the fourth quarter of 2006. Annualized net charge-offs were 0.38 percent of average loans for the quarter compared to 0.24 percent for the fourth quarter of 2006.

Non-performing assets to total assets were 1.26 percent at December 31, 2007 compared to 1.37 percent at September 30, 2007 and 1.66 percent at December 31, 2006. Of the $13.3 million of non-performing assets at December 31, 2007, $10.8 million were primarily nonperforming commercial loans and approximately $2.5 million is other real estate or repossessed assets in which collateral held is considered collectible. The Company does not make subprime mortgage loans and was, therefore, not significantly impacted by the subprime mortgage financial crisis this year. The allowance for loan losses was 1.04 percent of total loans at December 31, 2007 compared to 1.16 percent at December 31, 2006.

Full year 2007 Review
Net interest income for 2007 was $29.7 million, compared to $28.6 million for the same period a year ago. The net interest margin 2007 was 3.39 percent versus 3.78 percent for 2006. During the second quarter of 2007, the Company completed two private offerings of trust preferred securities which reduced the net interest margin 10 basis points for 2007.

The Company's progress in improving its credit quality in the commercial real estate development sector is reflected in a lower level of nonperforming loans at December 31, 2007 as compared to December 31, 2006. The local and national economic conditions are not expected to improve substantially for at least the next several months, but the Company continues to work on strategies to further increase net interest margin and reduce nonperforming loans.

Noninterest income this year was $11,499,000, a 17.9 percent increase from the $9,751,000 for the same period in 2006. The increase was largely from net gains recorded on the sale of indirect loans and mortgage loans to the secondary market.

Total assets increased by $205.5 million from December 31, 2006 to $1.1 billion at December 31, 2007. Over the same twelve month period, portfolio loans increased by $125.3 million to $753.6 million, and total deposits increased $139.7 million to $856.9 million. The Company experienced solid growth in its commercial loan portfolio and core deposits during 2007. The Morgan Bancorp acquisition during the second quarter of this year contributed $93.1 million in loans and $101.9 million in deposits.

About LNB Bancorp, Inc.
LNB Bancorp, Inc. is a $1.1 billion financial holding company. Its major subsidiary, The Lorain National Bank, is a full-service commercial bank, specializing in commercial, personal banking services, residential mortgage lending and investment and trust services. The Lorain National Bank and Morgan Bank serve customers through 21 retail-banking locations and 29 ATMs in Lorain, eastern Erie, western Cuyahoga and Summit counties. North Coast Community Development Corporation is a wholly owned subsidiary of The Lorain National Bank. Brokerage services are provided by the bank through an agreement with Investment Centers of America. For more information about LNB Bancorp, Inc., and its related products and services or to view its filings with the Securities and Exchange Commission, visit us at http://www.4lnb.com.

This press release contains forward-looking statements within the meaning of the "Safe Harbor" provisions of the Private Securities Litigation Reform Act of 1995. Terms such as "will," "should," "plan," "intend," "expect," "continue," "believe," "anticipate" and "seek," as well as similar expressions, are forward-looking in nature. Actual results and events may differ materially from those expressed or anticipated as a result of risks and uncertainties which include fluctuations in interest rates, inflation, government regulations, and economic conditions and competition in the geographic and business areas in which LNB Bancorp, Inc. conducts its operations, as well as the risks and uncertainties described from time to time in LNB Bancorp's reports as filed with the Securities and Exchange Commission. We undertake no obligation to review or update any forward-looking statements, whether as a result of new information, future events or otherwise.

Consolidated Balance Sheets December 31, 2007 December 31, 2006 (Dollars in thousands except share amounts) ASSETS Cash and due from Banks $ 23,523 $ 29,122 Federal funds sold and short-term investments - - Securities: Trading securities 33,402 - Available for sale, at fair value 179,424 155,810 Federal Home Loan Bank and Federal Reserve Stock 4,579 3,248 Investment in Trust Preferred Securities 620 - Total securities 218,025 159,058 Loans: Loans held for sale 4,724 - Portfolio loans 753,598 628,333 Allowance for loan losses (7,820) (7,300) Net loans 750,502 621,033 Bank premises and equipment, net 13,328 12,599 Other real estate owned 2,478 1,289 Bank owned life insurance 15,487 14,755 Goodwill and intangible assets, net 23,617 3,157 Accrued interest receivable 4,074 3,939 Other assets 5,611 6,146 Total Assets $ 1,056,645 $ 851,098 LIABILITIES AND SHAREHOLDERS' EQUITY Deposits Demand and other noninterest-bearing $ 88,812 $ 91,216 Savings, money market and interest-bearing demand 331,306 278,401 Certificates of deposit 436,823 347,644 Total deposits 856,941 717,261 Short-term borrowings 42,105 22,163 Federal Home Loan Bank advances 44,207 35,086 Junior subordinated debentures 20,676 - Accrued interest payable 4,564 3,698 Accrued taxes, expenses and other liabilities 5,499 4,193 Total Liabilities 973,992 782,401 Shareholders' Equity Common stock, par value $1 per share, authorized 15,000,000 shares, issued 7,623,857 shares at December 31, 2007 and 6,771,867 at December 31, 2006 7,624 6,772 Additional paid-in capital 37,712 26,382 Retained earnings 42,951 43,728 Accumulated other comprehensive loss (458) (2,093) Treasury shares at cost, 328,194 shares at December 31, 2007 and at December 31, 2006 (6,092) (6,092) Total Shareholders' Equity 82,653 68,697 Total Liabilities and Shareholders' Equity $ 1,056,645 $ 851,098

Consolidated Statements of Income (unaudited) Three Months Ended December 31, Twelve Months Ended December 31, 2007 2006 2007 2006 (Dollars in thousands except share and per share amounts) Interest Income Loans $ 13,279 $ 11,110 $49,889 $ 42,800 Securities: U.S. Government agencies and corporations 1,901 1,450 6,771 5,699 State and political subdivisions 163 134 606 464 Trading securities 377 - 817 - Other debt and equity securities 81 52 285 202 Federal funds sold and short-term investments 56 4 394 77 Total interest income 15,857 12,750 58,762 49,242 Interest Expense Deposits: Certificates of deposit, $100 and over 2,680 2,066 9,256 6,884 Other deposits 4,419 3,188 16,279 11,261 Federal Home Loan Bank advances 320 358 1,555 1,585 Short-term borrowings 264 250 1,076 895 Other interest expense 359 - 926 10 Total interest expense 8,042 5,862 29,092 20,635 Net Interest Income 7,815 6,888 29,670 28,607 Provision for Loan Losses 578 1,365 2,255 2,280 Net interest income after provision for loan losses 7,237 5,523 27,415 26,327 Noninterest Income Investment and trust services 577 542 2,170 2,079 Deposit service charges 1,268 1,199 4,725 4,533 Other service charges and fees 633 504 2,339 1,948 Income from bank owned life insurance 201 265 732 739 Other income 123 56 396 216 Total fees and other income 2,802 2,566 10,362 9,515 Securities gains, net 13 - 274 - Gains on sale of loans 220 - 766 - Gains (losses) on sale of other assets, net 38 234 97 236 Total noninterest income 3,073 2,800 11,499 9,751 Noninterest Expense Salaries and employee benefits 3,846 3,908 15,708 14,894 Furniture and equipment 949 757 3,515 2,984 Net occupancy 573 492 2,256 1,905 Outside services 498 349 1,815 1,609 Marketing and public relations 180 210 1,116 1,279 Supplies, postage and freight 371 324 1,357 1,236 Telecommunications 226 174 849 751 Ohio Franchise tax 184 181 788 817 Other real estate owned 280 72 585 131 Electronic banking expenses 210 152 803 618 Other charge-offs and losses 189 120 576 410 Other expense 544 567 2,383 2,351 Total noninterest expense 8,050 7,306 31,751 28,985 Income before income tax expense 2,260 1,017 7,163 7,093 Income tax expense 592 99 1,651 1,669 Net Income $ 1,668 $ 918 $ 5,512 $ 5,424 Net Income Per Common Share Basic $ 0.23 $ 0.14 $ 0.79 $ 0.84 Diluted 0.23 0.14 0.79 0.84 Dividends declared 0.18 0.18 0.72 0.72 Average Common Shares Outstanding Basic 7,295,663 6,443,673 6,992,215 6,461,892 Diluted 7,295,663 6,443,673 6,992,215 6,462,094

Supplemental Financial Information (Unaudited - Dollars in thousands except Share and Per Share Data) Three Months Ended Twelve Months Ended December 31, 2007 Septmeber 30, 2007 December 31, 2006 December 31, 2007 December 31, 2006 END OF PERIOD BALANCES Assets $ 1,056,645 $ 1,019,197 $ 851,098 $ 1,056,645 $ 851,098 Deposits 856,941 834,323 717,261 856,941 717,261 Portfolio loans 753,598 728,624 628,333 753,598 628,333 Allowance for loan losses 7,820 7,951 7,300 7,820 7,300 Shareholders' equity 82,653 81,340 68,697 82,653 68,697 AVERAGE BALANCES Assets: Total assets $ 1,032,796 $ 1,019,758 $ 801,295 $ 957,782 $ 819,635 Earning assets 956,860 937,937 752,410 886,832 763,899 Securities 214,137 200,085 157,429 188,430 162,780 Portfolio loans 742,723 737,853 594,980 698,401 601,119 Liabilities and shareholders' equity: Total deposits $ 858,921 $ 820,578 $ 693,993 $ 793,764 $ 679,818 Interest bearing deposits 772,660 734,185 586,507 709,411 596,041 Interest bearing liabilities 853,309 841,952 637,482 786,299 660,748 Total shareholders' equity 82,775 81,964 70,001 78,042 68,735 INCOME STATEMENT Net interest income $ 7,815 $ 7,828 $ 6,888 $ 29,670 $ 28,607 Net interest income-FTE (1) 7,916 7,927 6,977 30,052 28,876 Provision for loan losses 578 441 1,365 2,255 2,280 Noninterest income 3,073 3,004 2,800 11,499 9,751 Noninterest expense 8.050 8,334 7,306 31,751 28,985 Taxes 592 384 99 1,651 1,669 Net income 1,668 1,673 918 5512 5,424 Total revenue 10,888 10,832 9,688 41,169 38,358 PER SHARE DATA Basic net income per common share $ 0.23 $ 0.23 $ 0.14 $ 0.79 $ 0.84 Diluted net income per common share 0.23 0.23 0.14 0.79 0.84 Cash dividends per common share 0.18 0.18 0.18 0.72 0.72 Basic average common shares outstanding 7,295,663 7,295,663 6,443,673 6,992,215 6,461,892 Diluted average common shares outstanding 7,295,663 7,295,663 6,443,684 6,992,215 6,462,094 KEY RATIOS Return on average assets (2) 0.64% 0.65% 0.45% 0.58% 0.66% Return on average common equity (2) 7.99% 8.10% 5.20% 7.06% 7.89% Efficiency ratio 73.26% 76.24% 74.73% 76.41% 75.04% Noninterest expense to average assets (2) 3.09% 3.24% 3.62% 3.32% 3.54% Average equity to average assets 8.01% 8.04% 8.74% 8.15% 8.39% Net interest margin 3.24% 3.31% 3.63% 3.35% 3.74% Net interest margin (FTE)(1) 3.28% 3.35% 3.68% 3.39% 3.78% ASSET QUALITY Nonperforming loans $ 10,831 $ 10,942 $ 12,812 $ 10,831 $ 12,812 Other real estate owned 2,478 3,053 1,289 2,478 1,289 Total nonperforming assets 13,309 13,995 14,101 13,309 14,101 Net Charge Offs 708 605 369 2,832 1,602 Total nonperforming loans to total loans 1.44% 1.50% 2.04% 1.44% 2.04% Total nonperforming assets to total assets 1.26% 1.37% 1.66% 1.26% 1.66% Net charge-offs to average loans (2) 0.38% 0.33% 0.25% 0.41% 0.27% Allowance for loan losses 1.04% 1.09% 1.16% 1.04% 1.16% Allowance to nonperforming loans 72.20% 72.66% 56.98% 72.20% 56.98% (1) FTE -- fully tax equivalent at 34% tax rate (2) Annualized