Exhibit 99.1

LNB Bancorp, Inc. Reports Fourth Quarter and Full Year 2011 Results

• Fourth quarter 2011 net income was $1.49 million, up $1.43 million from the fourth quarter year-ago.
• Pre-tax pre-provision earnings were $4.6 million, up 21.9 percent from the 2010 fourth quarter.
• Efficiency ratio improved to 66.6% from 70.2% during 2011.
• Nonperforming assets declined by 19.4 percent during 2011.

LORAIN, Ohio--(BUSINESS WIRE)--January 26, 2012--LNB Bancorp, Inc. (NASDAQ: LNBB) (“LNB” or the “Company”) today reported financial results for the fourth quarter and full year ended December 31, 2011. For the fourth quarter of 2011, net income was $1.49 million compared to $61,000 for the fourth quarter of 2010. Net income available to common shareholders was $1.17 million, or $0.15 per common share, compared to a loss of $(258,000), or $(0.03) per common share, for the prior-year fourth quarter.

“We are pleased to report another year of improved operating performance,” said Daniel E. Klimas, president and chief executive officer of LNB Bancorp. “Our revenue is stable and well-diversified, while operating expenses have continued to decline. The fourth quarter results, in particular, reflect the significant progress we’ve made in nearly every expense category, reducing expenses over $1 million compared to the year-ago fourth quarter.

“Loans grew nearly four percent during 2011 in a market where growth remains a challenge. We have continued our solid performance in commercial lending; recently, Crain’s Cleveland Business cited Lorain National Bank as one of Northeast Ohio’s Top Ten Small Business (SBA) lenders. On the consumer side, our auto loan portfolio grew by $30 million during 2011, both through local markets as well as accessing higher growth markets in other parts of the country. We believe our multi-state expansion of indirect auto lending should enable us to sustain our revenue growth.”

Net income for the year ended December 31, 2011 was $5.0 million compared with net income of $5.37 million for 2010. Net income for 2010 included a one-time gain of $2.2 million related to the extinguishment of debt which increased 2010 after-tax income by $1.46 million, or $0.19 per share. Excluding this gain, net income for 2010 was $3.91 million. Net income available to common shareholders totaled $3.73 million or $0.47 per common share for 2011, compared to $4.09 million, or $0.55 per common share, for 2010.

Fourth Quarter Review

LNB reported pre-provision core earnings* for the 2011 fourth quarter of $4.63 million, up $830,000 or 21.9 percent from the $3.80 million reported for the year-ago fourth quarter. Improved expense control was the primary driver; in particular, credit administration and OREO expense declined $500,000 year over year.

Fourth quarter 2011 net interest income (fully-tax equivalent or “FTE”) totaled $9.88 million, substantially unchanged from the prior-year fourth quarter. The Company’s net interest margin (FTE) for the fourth quarter of 2011 was 3.62 percent, a decline of 12 basis points from the 3.74 percent reported for the third quarter of 2011, but higher by three basis points than the year-ago quarter.

Noninterest income was $3.0 million for the fourth quarter of 2011 compared to $3.2 million for the fourth quarter of 2010, a decline of 5.9 percent. Noninterest expense was $8.10 million for the fourth quarter of 2011 compared with $9.15 million for the fourth quarter of 2010, a decline of 11.5 percent.

The provision for loan losses was $2.8 million in the fourth quarter of 2011, down $1.1 million from the 2010 fourth quarter, reflecting the lower level of nonperforming assets. Net charge-offs were $3.6 million for the fourth quarter of 2011 or 1.71 percent of average loans (annualized) compared to $5.0 million, or 2.48 percent annualized, in the fourth quarter of 2010.

Full year 2011 Review

LNB reported pre-provision core earnings* for the full year 2011 of $16.5 million, up $1.9 million or 13.0 percent from the $14.6 million of pre-provision core earnings reported for 2010.

Net interest income on a fully tax-equivalent basis (FTE) for 2011 was $39.8 million compared to $39.1 million for 2010, a 1.8 percent gain resulting primarily from the combined impact of a seven basis point improvement in the net interest margin (FTE) and a 0.8 percent decline in average earning assets. The net interest margin averaged 3.67 percent for 2011 compared to 3.60 percent in 2010.

Noninterest income for 2011 was $11.4 million compared to $13.78 million for 2010. However, noninterest income was favorably impacted in 2010 by a $2.2 million gain from the extinguishment of debt related to the Company’s exchange of trust preferred securities for common shares during the third quarter of 2010; excluding this one-time gain, noninterest income for 2011 declined by $152,000, or 1.3 percent.

Noninterest expense was $34.1 million for 2011, down 4.0 percent from the $35.6 million reported for 2010. “Expense management continues to be a major focus for LNB, as evidenced by our efficiency ratio which has improved from 70.2 percent for 2010 to 66.6 percent for 2011,” said Klimas.

Total assets at December 31, 2011 were $1.17 billion, substantially unchanged from year-end 2010. Portfolio loans grew $30.5 million to $843.1 million at December 31, 2011, an increase of 3.75 percent since year-end 2010. Total deposits at December 31, 2011 were $991.1 million compared with $978.5 million at 2010 year-end; noninterest-bearing demand deposits increased by $11.2 million, or 9.7 percent, during 2011.

The Company continues to aggressively manage credit quality. During 2011, nonperforming assets declined by $8.8 million, or 19.6 percent, to $36.2 million. At year-end 2011, nonperforming assets comprised 3.09 percent of total assets compared to $44.9 million, or 3.90 percent, of total assets at year-end 2010.

Net charge-offs were $9.4 million for 2011, or 1.14 percent of average loans, compared to $12.9 million in 2010, or 1.62 percent of average loans. “We have continued to make steady progress managing our problem loans. Being a community bank means working with our customers through difficult times and often leads to a longer workout process,” said Klimas.

The allowance for possible loan losses was $17.1 million at December 31, 2011, or 2.02 percent of total loans, compared to $16.1 million at December 31, 2010, or 1.99 percent of total loans. For the year 2011, the provision for loan losses was $10.35 million compared to the 2010 provision for loan losses of $10.22 million.

* 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 and the gain on the extinguishment of debt. Pre-provision core earnings is reconciled to the related GAAP financial measure in the “Reconciliation” table included after the consolidated financial statements and supplemental financial information included in this press release.

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 Morgan Bank, located in Hudson Ohio, serve customers through 20 retail-banking locations and 29 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: uncertain economic conditions, resulting in slow recoveries of business activity and consumer spending and 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 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 ability to accommodate liability maturities and deposit withdrawals, meet contractual obligations, fund asset growth, 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 Wall Street reform and Consumer Protection Act and rules and regulations that may be promulgated under the Act); significant increases in competitive pressure in the banking and financial services industries; persisting volatility and limited credit availability in the financial markets, particularly if limitations on the Company's ability to raise funding to the extent required by banking regulators or otherwise; initiatives undertaken by the U.S. government do not have the intended effect on the financial markets; limitations on the Company's ability to return capital to shareholders and dilution of the Company's common shares that may result from the terms of the Capital Purchase Program ("CPP"), pursuant to which the Company issued securities to the United States Department of the Treasury (the "U.S. Treasury");limitations on the Company's ability to pay dividends; 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; asset price deterioration, which has had and may continue to have a negative effect on the valuation of certain asset categories represented on the Company's balance sheet; general economic conditions, either nationally or regionally (especially in northeastern Ohio), becoming less favorable than expected resulting in, among other things, further deterioration in credit quality of assets; 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; difficulty attracting and/or retaining key executives and/or relationship managers at compensation levels necessary to maintain a competitive market position; changes occurring in business conditions and inflation; changes in technology; changes in trade, monetary, fiscal and tax policies; changes in the securities markets, in particular, continued disruption in the fixed income markets and adverse capital market conditions; continued disruption in the housing markets and related conditions in the financial markets; and changes in general economic conditions and competition in the geographic and business areas in which the Company conducts its operations, particularly in light of the recent consolidation of competing financial institutions, as well as the risks and uncertainties described from time to time in the Company's reports as filed with the Securities and Exchange Commission.

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

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