LNB Bancorp (LNBB) 8-K LNB Bancorp, Inc. Reports Fourth Quarter and Full Year 2012 Results

Exhibit 99.1

LNB Bancorp, Inc. Reports Fourth Quarter and Full Year 2012 Results

• Fourth quarter 2012 net income of $1.64 million, up 10% from a year-ago.
• Full year 2012 net income of $6.1 million, up 22% from 2011
• Loan balances increased $39.5 million over prior year, or 4.7%.
• Nonperforming assets declined by $7 million, or 19.3% from 2011
• Repurchased approximately 25% of outstanding preferred shares with funds from earnings

LORAIN, Ohio--(BUSINESS WIRE)--January 31, 2013--LNB Bancorp, Inc. (NASDAQ: LNBB) (“LNB” or the “Company”) today reported financial results for the fourth quarter and the full year ended December 31, 2012. For the fourth quarter 2012, net income was $1.64 million compared to $1.49 million for the fourth quarter of 2011. Net income available to common shareholders was $1.32 million, or $0.17 per common share, compared to $1.17 million, or $0.15 per common share, for the year-ago quarter.

“We are pleased to report another year of improved operating performance,” stated Daniel E. Klimas, president and chief executive officer of LNB Bancorp. “We continue to make progress on improving credit quality. Non-performing assets declined $5.1 million in the fourth quarter and nearly $7 million in 2012 compared to 2011. The ratio of non-performing assets to total assets at December 31, 2012, is 2.48%, down from 3.09% at the end of 2011.”

“Loans grew by 4.7% in 2012. We continue to see growth in commercial lending; recently the Small Business Administration (SBA) recognized the Company as the 4^th highest SBA lender in the Cleveland metropolitan area, based on 2012 loan totals. Residential mortgage loan volume showed strong growth in 2012, with originations up 97% over 2011. The Company opened new loan offices in Solon and Hudson, expanding our sales efforts beyond Lorain County. We expect mortgage revenue to continue to grow in 2013 assuming the housing market continues to improve.”

Net income for the year ended December 31, 2012 was $6.11 million, compared with net income of $5.0 million for 2011. Net income available to common shareholders for 2012 was $4.84 million, or $0.61 per common share, compared to $3.73 million for 2011, or $0.47 per common share.

Fourth Quarter Review

Net income for the fourth quarter of 2012 was $1.64 million, up by $113,000, or 7.4%, from the third quarter of 2012, primarily as a result of a lower loan loss provision expense and net gains from sale of mortgage loans.

Operating revenue, including net interest income on a fully tax-equivalent basis ("FTE") plus noninterest income from operations, was $12.7 million for the fourth quarter of 2012, which was virtually unchanged from the fourth quarter of the prior year. The net interest margin (FTE) for the fourth quarter of 2012 was 3.30%, a decline of 32 basis points from the 2011 fourth quarter.

Noninterest income was $3.4 million for the fourth quarter of 2012 compared to $3.0 million for the prior-year fourth quarter. Noninterest expense was $8.64 million for the fourth quarter of 2012 compared with $8.10 million for the fourth quarter of 2011, an increase of 6.5%.

The provision for loan losses was $1.8 million in the fourth quarter of 2012, down $1 million from the 2011 fourth quarter, reflecting the Company’s improvement in credit quality. Net charge-offs were $1.8 million for the fourth quarter of 2012, or 0.79% of average loans (annualized), compared to $3.59 million, or 1.71% of average loans (annualized) in the fourth quarter of 2011.

The Company is focused on active capital management and is committed to maintaining strong capital levels while supporting balance sheet growth and enhancing returns to the Company’s shareholders. During the fourth quarter of 2012, the Company repurchased $6.3 million in par value, or approximately 25% of the outstanding shares, of its Fixed Rate Cumulative Perpetual Preferred Stock, Series B, $1,000 per share liquidation preference, in exchange for cash at a price representing a discount to par value. The Series B Preferred Stock was originally issued by LNB in December 2008 as part of the U.S. Department of the Treasury’s Capital Purchase Program. The Treasury sold all of the Series B Preferred Stock to private investors through a modified Dutch auction that was completed in June 2012.

Full Year 2012 Review

Total assets at December 31, 2012 were $1.18 billion, up $10 million from year-end 2011. Portfolio loans grew $39.5 million to $882.5 million at December 31, 2012, an increase of 4.7% from 2011. Total deposits at December 31, 2012 were $999.6 million compared with $991.1 million at 2011 year end.

Net interest income on a fully tax-equivalent basis (FTE) for 2012 was $39.9 million compared to $39.8 million for 2011. The net interest margin was 3.49% for 2012 compared to 3.67% for 2011.

Noninterest income for 2012 was $11.7 million for 2012, compared to $11.4 million for 2011.

Noninterest expense was $34.9 million in 2012, up 2% from $34.1 million in 2011. Legal expenses related to the Treasury’s sale of TARP preferred shares to private investors and costs associated with the completion of our conversion to a new operating system were one-time expenses during 2012.

The company continues to aggressively manage credit quality. During 2012, nonperforming assets declined by nearly $7 million, or 19.3%, to $29.2 million. At year-end 2012, nonperforming assets comprised 2.48 % of total assets, compared to nonperforming assets of $36.2 million, comprising 3.09% of total assets, at year-end 2011.

Net charge-offs were $6.7 million for 2012, or 0.77 % of average loans, compared to $9.4 million in 2011, or 1.14% of average loans.

The allowance for loan losses was $17.6 million at December 31, 2012, or 2% of total loans, compared to $17.1 million at December 31, 2011, or 2.02% of total loans. For the year 2012, the provision for loan losses was $7.2 million compared to the 2011 provision of $10.4 million.

All regulatory ratios continue to exceed the threshold for “well-capitalized.” As of December 31, 2012 Tier 1 leverage ratio totaled 8.79%, Tier 1 risk-based capital ratio totaled 11.21% and Total risk-based capital ratio totaled 12.47%. Tangible leverage improved by 24 basis points to 5.97%.

About LNB Bancorp, Inc.

LNB Bancorp, Inc. is a $1.2 billion bank 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 its Morgan Bank division serve customers through 20 retail-banking locations and 28 ATMs in Lorain, Erie, Cuyahoga and Summit counties. North Coast Community Development Corporation is a wholly owned subsidiary of The Lorain National Bank. 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.

Forward-Looking Statements

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 comments, 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 but are not limited to:

• a worsening of economic conditions or slowing of any economic recovery, which could negatively impact, among other things, business activity and consumer spending and could lead to a lack of liquidity in the credit markets;
• changes in the interest rate environment which could reduce anticipated or actual margins;
• increases in interest rates or further weakening of economic conditions that could constrain borrowers’ ability to repay outstanding loans or diminish the value of the collateral securing those loans;
• market conditions or other events that could negatively affect the level or cost of funding, affecting the Company’s ongoing ability to accommodate liability maturities and deposit withdrawals, meet contractual obligations, and fund asset growth, and new business transactions at a reasonable cost, in a timely manner and without adverse consequences;
• changes in political conditions or the legislative or regulatory environment, including new or heightened legal standards and regulatory requirements, practices or expectations, which may impede profitability or affect the Company’s financial condition (such as, for example, the Dodd-Frank Act and rules and regulations that have been or may be promulgated under the Act);
• persisting volatility and limited credit availability in the financial markets, particularly if market conditions limit the Company’s ability to raise funding to the extent required by banking regulators or otherwise;
• significant increases in competitive pressure in the banking and financial services industries, particularly in the geographic or business areas in which the Company conducts its operations;
• limitations on the Company’s ability to return capital to shareholders, including the ability to pay dividends, and the dilution of the Company’s common shares that may result from, among other things, the terms of the CPP, pursuant to which the Company issued securities to the U.S. Treasury;
• adverse effects on the Company’s ability to engage in routine funding transactions as a result of the actions and commercial soundness of other financial institutions;
• general economic conditions becoming less favorable than expected, continued disruption in the housing markets and/or asset price deterioration, which have had and may continue to have a negative effect on the valuation of certain asset categories represented on the Company’s balance sheet;
• increases in deposit insurance premiums or assessments imposed on the Company by the FDIC;
• a failure of the Company’s operating systems or infrastructure, or those of its third-party vendors, that could disrupt its business;
• risks that are not effectively identified or mitigated by the Company’s risk management framework; and
• difficulty attracting and/or retaining key executives and/or relationship managers at compensation levels necessary to maintain a competitive market position; as well as the risks and uncertainties described from time to time in the Company’s reports as filed with the SEC.

The Company undertakes no obligation to update or clarify forward-looking statements, whether as a result of new information, future events or otherwise.

CONSOLIDATED BALANCE SHEETS
	At December 31, 2012			At December 31, 2011
	(unaudited)
	(Dollars in thousands except share amounts)
ASSETS
Cash and due from Banks	$	24,139		$	34,323
Federal funds sold and interest bearing deposits in banks		6,520			6,324
Cash and cash equivalents		30,659			40,647
Securities Available for sale, at fair value		203,763			226,012
Total securities		203,763			226,012
Restricted stock		5,741			5,741
Loans held for sale		7,634			3,448
Loans:
Portfolio loans		882,548			843,088
Allowance for loan losses		(17,637	)		(17,063	)
Net loans		864,911			826,025
Bank premises and equipment, net		8,721			8,968
Other real estate owned		1,366			1,687
Bank owned life insurance		18,611			17,868
Goodwill, net		21,582			21,582
Intangible assets, net		594			731
Accrued interest receivable		3,726			3,550
Other assets		10,946			12,163
Total Assets	$	1,178,254		$	1,168,422
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits
Demand and other noninterest-bearing	$	139,895		$	126,713
Savings, money market and interest-bearing demand		377,287			359,977
Certificates of deposit		482,411			504,390
Total deposits		999,593			991,080
Short-term borrowings		1,115			227
Federal Home Loan Bank advances		46,508			42,497
Junior subordinated debentures		16,238			16,238
Accrued interest payable		882			1,118
Accrued taxes, expenses and other liabilities		3,774			3,988
Total Liabilities		1,068,110			1,055,148
Shareholders' Equity
Preferred stock, Series A Voting, no par value, authorized 150,000 shares at December 31, 2012 and December 31, 2011.		-			-
Fixed rate cumulative preferred stock, Series B, no par value, $1,000 liquidation value, 18,880 shares authorized and issued at December 31, 2012 and 25,223 shares at December 31, 2011.		18,880			25,223
Discount on Series B preferred stock		(65	)		(101	)
Warrant to purchase common stock		-			146
Common stock, par value $1 per share, authorized 15,000,000 shares, issued shares 8,272,548 at December 31, 2012 and 8,210,443 at December 31, 2011.		8,273			8,210
Additional paid-in capital		39,141			39,607
Retained earnings		48,767			44,080
Accumulated other comprehensive income		1,240			2,201
Treasury shares at cost, 328,194 shares at December 31, 2012 and at December 31, 2011		(6,092	)		(6,092	)
Total Shareholders' Equity		110,144			113,274
Total Liabilities and Shareholders' Equity	$	1,178,254		$	1,168,422

Consolidated Statements of Income (unaudited)
	Three Months Ended December 31,						Twelve Months Ended December 31,
	2012			2011			2012			2011
	(Dollars in thousands except share and per share amounts)						(Dollars in thousands except share and per share amounts)
Interest Income
Loans	$	9,556		$	10,402		$	39,794		$	42,133
Securities:
U.S. Government agencies and corporations		991			1,253			4,677			5,847
State and political subdivisions		290			265			1,157			1,035
Other debt and equity securities		75			67			285			277
Federal funds sold and short-term investments		8			19			35			57
Total interest income		10,920			12,006			45,948			49,349
Interest Expense
Deposits		1,336			1,836			5,944			8,367
Federal Home Loan Bank advances		224			263			865			1,053
Short-term borrowings		1			-			1			2
Junior subordinated debenture		171			175			699			686
Total interest expense		1,732			2,274			7,509			10,108
Net Interest Income		9,188			9,732			38,439			39,241
Provision for Loan Losses		1,800			2,808			7,242			10,353
Net interest income after provision for loan losses		7,388			6,924			31,197			28,888
Noninterest Income
Investment and trust services		373			359			1,563			1,610
Deposit service charges		953			1,064			3,811			4,079
Other service charges and fees		768			752			3,082			3,246
Income from bank owned life insurance		241			198			742			722
Other income		263			144			877			330
Total fees and other income		2,598			2,517			10,075			9,987
Securities gains, net		143			325			189			832
Gains on sale of loans		659			291			1,575			889
Loss on sale of other assets, net		(24	)		(135	)		(92	)		(293	)
Total noninterest income		3,376			2,998			11,747			11,415
Noninterest Expense
Salaries and employee benefits		4,581			3,795			16,768			15,944
Furniture and equipment		958			789			4,060			3,088
Net occupancy		543			541			2,207			2,310
Professional fees		595			473			2,034			1,854
Marketing and public relations		277			241			1,231			1,002
Supplies, postage and freight		308			281			1,091			1,107
Telecommunications		195			180			731			727
Ohio Franchise tax		305			399			1,232			1,298
FDIC assessments		172			380			1,304			1,749
Other real estate owned		156			80			570			1,021
Electronic banking expenses		40			231			722			899
Loan and collection expense		99			278			1,150			1,364
Other expense		405			436			1,803			1,781
Total noninterest expense		8,634			8,104			34,903			34,144
Income before income tax expense		2,130			1,818			8,041			6,159
Income tax expense		491			329			1,934			1,156
Net Income	$	1,639		$	1,489		$	6,107		$	5,003
Dividends and accretion on preferred stock		310			320			1,266			1,276
Net Income Available to Common Shareholders	$	1,329		$	1,169		$	4,841		$	3,727
Net Income Per Common Share
Basic	$	0.17		$	0.15		$	0.61		$	0.47
Diluted		0.17			0.15			0.61			0.47
Dividends declared		0.01			0.01			0.04			0.04
Average Common Shares Outstanding
Basic		7,944,354			7,880,249			7,939,433			7,880,249
Diluted		7,949,118			7,880,249			7,943,888			7,880,249

Supplemental Financial Information
(Unaudited - Dollars in thousands except Share and Per Share Data)
	Three Months Ended										Twelve Months Ended
	December 31,		September 30,		June 30,		March 31,		December 31,		December 31,		December 31,
END OF PERIOD BALANCES	2012		2012		2012		2012		2011		2012		2011
Cash and Cash Equivalents	$	30,659	$	28,527	$	56,619	$	44,112	$	40,647	$	30,659	$	40,647
Securities		203,763		235,334		228,788		231,851		226,012		203,763		226,012
Restricted stock		5,741		5,741		5,741		5,741		5,741		5,741		5,741
Loans held for sale		7,634		3,380		1,207		4,462		3,448		7,634		3,448
Portfolio loans		882,548		885,715		867,459		862,220		843,088		882,548		843,088
Allowance for loan losses		17,637		17,587		17,300		17,115		17,063		17,637		17,063
Net loans		864,911		868,128		850,159		845,105		826,025		864,911		826,025
Other assets		65,546		65,519		65,431		67,823		66,549		65,546		66,549
Total assets	$	1,178,254	$	1,206,629	$	1,207,945	$	1,199,094	$	1,168,422	$	1,178,254	$	1,168,422
Total deposits		999,593		1,021,709		1,023,553		1,016,166		991,080		999,593		991,080
Other borrowings		63,861		64,720		64,560		64,628		58,962		63,861		58,962
Other liabilities		4,656		4,123		4,296		4,240		5,106		4,656		5,106
Total liabilities		1,068,110		1,090,552		1,092,409		1,085,034		1,055,148		1,068,110		1,055,148
Total shareholders' equity		110,144		116,077		115,537		114,061		113,274		110,144		113,274
Total liabilities and shareholders' equity	$	1,178,254	$	1,206,629	$	1,207,945	$	1,199,094	$	1,168,422	$	1,178,254	$	1,168,422
AVERAGE BALANCES
Assets:
Total assets	$	1,198,845	$	1,202,425	$	1,206,297	$	1,176,454	$	1,168,340	$	1,196,005	$	1,167,661
Earning assets*		1,124,703		1,128,665		1,122,918		1,093,618		1,082,438		1,117,489		1,085,412
Securities		224,876		233,153		226,476		222,832		224,778		226,827		229,920
Portfolio loans		883,228		876,817		866,909		856,364		833,811		869,455		823,962
Liabilities and shareholders' equity:
Total deposits	$	1,013,808	$	1,016,029	$	1,022,428	$	993,839	$	991,105	$	1,011,511	$	991,523
Interest bearing deposits		870,551		872,309		885,922		869,107		866,037		874,434		869,737
Interest bearing liabilities		935,239		939,268		950,647		933,033		925,530		939,520		929,461
Total shareholders' equity		116,573		115,666		115,281		114,156		112,925		115,423		111,809
INCOME STATEMENT
Total Interest Income	$	10,920	$	11,290	$	11,845	$	11,677	$	12,006	$	45,948	$	49,349
Total Interest Expense		1,732		1,843		1,912		2,022		2,274		7,509		10,108
Net interest income		9,188		9,447		9,933		9,655		9,732		38,439		39,241
Provision for loan losses		1,800		1,875		1,667		1,900		2,808		7,242		10,353
Other income		2,598		2,592		2,384		2,581		2,517		10,075		9,987
Net gain on sale of assets		778		441		159		294		481		1,672		1,428
Noninterest expense		8,634		8,542		9,047		8,544		8,104		34,903		34,144
Income before income taxes		2,130		2,063		1,762		2,086		1,818		8,041		6,159
Income tax expense		491		538		324		581		329		1,934		1,156
Net income		1,639		1,525		1,438		1,505		1,489		6,107		5,003
Preferred stock dividend and accretion		310		319		318		319		320		1,266		1,276
Net income available to common shareholders	$	1,329	$	1,206	$	1,120	$	1,186	$	1,169	$	4,841	$	3,727
Common cash dividend declared and paid	$	79	$	79	$	79	$	79	$	79	$	317	$	316
Net interest income-FTE (1)	$	9,339	$	9,592	$	10,093	$	9,806	$	9,877	$	39,050	$	39,833
Pre-provision core earnings		3,930		3,938		3,429		3,986		4,626		15,283		16,512

	Three Months Ended															Twelve Months Ended
	December 31,			September 30,			June 30,			March 31,			December 31,			December 31,			December 31,
	2012			2012			2012			2012			2011			2012			2011
PER SHARE DATA
Basic net income per common share	$	0.17		$	0.15		$	0.14		$	0.15		$	0.15		$	0.61		$	0.47
Diluted net income per common share		0.17			0.15			0.14			0.15			0.15			0.61			0.47
Cash dividends per common share		0.01			0.01			0.01			0.01			0.01			0.04			0.04
Book value per common shares outstanding		11.50			11.45			11.38			11.19			11.18			11.50			11.18
Tangible book value per common shares outstanding**		8.70			8.65			8.58			8.39			8.35			8.70			8.35
Period-end common share market value		5.90			6.09			6.58			6.94			4.70			5.90			4.70
Market as a % of book		51.32	%		53.20	%		57.82	%		61.99	%		42.04	%		51.32	%		42.04	%
Basic average common shares outstanding		7,944,354			7,944,354			7,944,354			7,924,562			7,882,249			7,939,433			7,880,249
Diluted average common shares outstanding		7,949,537			7,949,118			7,950,539			7,925,368			7,882,249			7,943,888			7,880,249
Common shares outstanding		7,944,354			7,944,354			7,944,354			7,944,354			7,882,249			7,944,354			7,882,249
KEY RATIOS
Return on average assets (2)		0.54	%		0.50	%		0.48	%		0.51	%		0.51	%		0.51	%		0.43	%
Return on average common equity (2)		5.59	%		5.25	%		5.02	%		5.30	%		5.23	%		5.29	%		4.47	%
Efficiency ratio		67.91	%		67.66	%		71.60	%		67.38	%		62.94	%		68.71	%		66.63	%
Noninterest expense to average assets (2)		2.87	%		2.83	%		3.02	%		2.92	%		2.75	%		2.92	%		2.92	%
Average equity to average assets		9.72	%		9.62	%		9.56	%		9.70	%		9.67	%		9.65	%		9.58	%
Net interest margin (FTE) (1)		3.30	%		3.38	%		3.61	%		3.61	%		3.62	%		3.49	%		3.67	%
Common stock dividend payout ratio		5.98	%		6.59	%		7.10	%		6.68	%		6.74	%		6.56	%		8.46	%
Common stock market capitalization	$	46,872		$	48,381		$	52,274		$	55,134		$	37,047		$	46,872		$	37,047
ASSET QUALITY
Allowance for Loan Losses
Allowance for loan losses, beginning of period	$	17,587		$	17,300		$	17,115		$	17,063		$	17,845			17,063			16,136
Provision for loan losses		1,800			1,875			1,667			1,900			2,808			7,242			10,353
Charge-offs		2,201			1,681			1,621			2,076			3,747			7,579			10,109
Recoveries		451			93			139			228			157			911			683
Net charge-offs		1,750			1,588			1,482			1,848			3,590			6,668			9,426
Allowance for loan losses, end of period	$	17,637		$	17,587		$	17,300		$	17,115		$	17,063		$	17,637		$	17,063
CAPITAL & LIQUIDITY
Period-end tangible common equity to assets**		5.97	%		5.79	%		5.73	%		5.65	%		5.73	%		5.97	%		5.73	%
Average equity to assets		9.72	%		9.62	%		9.56	%		9.70	%		9.67	%		9.65	%		9.58	%
Average equity to loans		13.20	%		13.19	%		13.30	%		13.33	%		13.54	%		13.28	%		13.57	%
Average loans to deposits		87.12	%		86.30	%		84.79	%		86.17	%		84.13	%		85.96	%		83.10	%
Tier 1 leverage ratio (3)		8.79	%		9.17	%		8.78	%		8.87	%		8.80	%		8.79	%		8.80	%
Tier 1 risk-based capital ratio (3)		11.21	%		11.71	%		11.46	%		11.37	%		11.39	%		11.21	%		11.39	%
Total risk-based capital ratio (3)		12.47	%		12.97	%		13.97	%		13.94	%		14.01	%		12.47	%		14.01	%
Nonperforming Assets
Nonperforming loans	$	27,796		$	32,584		$	34,993		$	36,870		$	34,471		$	27,796		$	34,471
Other real estate owned		1,366			1,653			1,506			1,845			1,687			1,366			1,687
Total nonperforming assets	$	29,162		$	34,237		$	36,499		$	38,715		$	36,158		$	29,162		$	36,158
Ratios
Total nonperforming loans to total loans		3.15	%		3.68	%		4.03	%		4.28	%		4.09	%		3.15	%		4.09	%
Total nonperforming assets to total assets		2.48	%		2.84	%		3.02	%		3.23	%		3.09	%		2.48	%		3.09	%
Net charge-offs to average loans (2)		0.79	%		0.72	%		0.69	%		0.87	%		1.71	%		0.77	%		1.14	%
Provision for loan losses to average loans (2)		0.81	%		0.85	%		0.77	%		0.89	%		1.34	%		0.83	%		1.26	%
Allowance for loan losses to portfolio loans		2.00	%		1.99	%		1.99	%		1.98	%		2.02	%		2.00	%		2.02	%
Allowance to nonperforming loans		63.45	%		53.97	%		49.44	%		46.42	%		49.50	%		63.45	%		49.50	%
Allowance to nonperforming assets		60.48	%		51.37	%		47.40	%		44.21	%		47.19	%		60.48	%		47.19	%
(1) FTE -- fully tax equivalent at 34% tax rate
(2) Annualized
(3) 12-31-12 ratio is estimated.
* Earning Assets includes Loans Held for Sale
* * Non-GAAP measures.

Reconciliation of Pre-Provision Core Earnings*
	Three Months Ended December 31,				Twelve Months Ended December 31,
	2012		2011		2012		2011
Pre-provision Core Earnings*	$	3,930	$	4,626	$	15,283	$	16,512
Provision for Loan Losses		1,800		2,808		7,242		10,353
Income before income tax expense	$	2,130	$	1,818	$	8,041	$	6,159

* Pre-provision core earnings is a non-GAAP financial measure that the Company’s management believes is useful in analyzing the Company’s underlying performance trends, particularly in periods of economic stress. Pre-provision core earnings is defined as income before income tax expense, adjusted to exclude the impact of provision for loan losses.

CONTACT:
LNB Bancorp, Inc.
Peter R. Catanese, Senior Vice President, 440-244-7126