LNB Bancorp (LNBB)

   2007 versus 2006 Net Interest Income Comparison

     Net interest income is the difference between interest income earned on interest-earning assets and the interest expense incurred on interest-bearing liabilities. The Corporation reviews net interest income on a fully taxable equivalent basis, which presents interest income with an adjustment for tax-exempt interest income on an equivalent pre-tax basis assuming a 34% statutory Federal tax rate. These rates may differ from the Corporation’s actual effective tax rate. Net interest income is affected by changes in the volumes, rates and the composition of interest-earning assets and interest-bearing liabilities. The net interest margin is net interest income as a percentage of average earning assets.

     Table 1 summarizes net interest income and the net interest margin for the three years ended December 31, 2007.

   2007 versus 2006 Net
Interest Income Comparison

     Net
interest income is the difference between interest income earned on
interest-earning assets and the interest expense incurred on interest-bearing
liabilities. The Corporation reviews net interest income on a fully taxable
equivalent basis, which presents interest income with an adjustment for
tax-exempt interest income on an equivalent pre-tax basis assuming a 34%
statutory Federal tax rate. These rates may differ from the Corporation’s actual
effective tax rate. Net interest income is affected by changes in the volumes,
rates and the composition of interest-earning assets and interest-bearing
liabilities. The net interest margin is net interest income as a percentage of
average earning assets.

     Table 1
summarizes net interest income and the net interest margin for the three years
ended December 31, 2007.