<PAGE>
                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                   FORM 10-QSB

[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT
    OF 1934

                      FOR THE QUARTER ENDED MARCH 31, 2003

[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT

Commission file number 333-43361
                       ---------


                          WESTERN RESERVE BANCORP, INC.
                          -----------------------------
        (Exact name of small business issuer as specified in its charter)

<TABLE>
<S>                                                     <C>
             Ohio                                           31-1566623
             ----                                           -----------
 (State or other jurisdiction of                           (IRS Employer
 incorporation or organization)                         Identification No.)
</TABLE>

          4015 Medina Road, Suite 100, P.O. Box 585, Medina, Ohio 44256
          -------------------------------------------------------------
                    (Address of principal executive offices)


                                 (330) 764-3131
                                 --------------
                 Issuer's telephone number, including area code


State the number of shares outstanding of each of the issuer's classes of common
equity, as of the latest practicable date.

                 Common Stock, no par value, $1.00 stated value
                 ----------------------------------------------
                                (Class of Stock)

                              388,052 common shares
                              ---------------------
               (number of shares outstanding as of April 30, 2003)


Transitional Small Business Disclosure Format (Check one):  Yes [ ]   No [X]



                                  Page 1 of 26
<PAGE>


                          WESTERN RESERVE BANCORP, INC.
                                   FORM 10-QSB
                          QUARTER ENDED MARCH 31, 2003


PART I--FINANCIAL INFORMATION
                                                                           Page
ITEM 1        FINANCIAL STATEMENTS

              Consolidated Balance Sheets as of March 31, 2003
                 and December 31, 2002                                       3

              Consolidated Statements of Income for the three months
                  ended March 31, 2003 and 2002                              4

              Consolidated Statements of Comprehensive Income
                 for the three months ended March 31, 2003 and 2002          5

              Consolidated Statements of Cash Flows for the three months
                 ended March 31, 2003 and 2002                               6

              Notes to Consolidated Financial Statements                     7

ITEM 2        MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                 FINANCIAL CONDITION AND RESULTS OF OPERATIONS              11


ITEM 3        DISCLOSURE CONTROLS AND PROCEDURES REPORT                     19


PART II--OTHER INFORMATION                                                  20

SIGNATURES                                                                  21

CERTIFICATIONS                                                              22






                                  Page 2 of 26
<PAGE>


                          WESTERN RESERVE BANCORP, INC.
                     CONSOLIDATED BALANCE SHEETS (UNAUDITED)

<TABLE>
<CAPTION>
                                                                                    March 31,           December 31,
                                                                                       2003                 2002
                                                                                   ------------         ------------
<S>                                                                                <C>                  <C>
Assets
       Cash and due from financial institutions                                    $  1,943,941         $  1,762,735
       Federal funds sold                                                             3,311,000            2,164,000
                                                                                   ------------         ------------
            Cash and cash equivalents                                                 5,254,941            3,926,735

       Securities available for sale                                                  2,215,122            2,864,855
       Loans held for sale                                                               80,000              237,141

       Loans                                                                         76,894,493           74,649,961
       Allowance for loan losses                                                     (1,092,309)          (1,042,309)
                                                                                   ------------         ------------
            Loans, net                                                               75,802,184           73,607,652

       Federal Reserve Bank stock                                                       171,100              171,100
       Federal Home Loan Bank stock                                                     189,700              187,900
       Premises and equipment, net                                                      715,643              734,157
       Accrued interest receivable and other assets                                     717,617              646,848
                                                                                   ------------         ------------
                 Total Assets                                                      $ 85,146,307         $ 82,376,388
                                                                                   ============         ============

Liabilities and Shareholders' Equity
Deposits
       Noninterest-bearing                                                         $  8,116,350         $  8,875,323
       Interest-bearing                                                              65,392,874           62,005,088
                                                                                   ------------         ------------
            Total deposits                                                           73,509,224           70,880,411
Short-term borrowings                                                                    83,947               59,965
Federal Home Loan Bank advances                                                       3,200,000            3,200,000
Accrued interest payable and other liabilities                                          220,438              230,512
                                                                                   ------------         ------------
            Total Liabilities                                                        77,013,609           74,370,888

Shareholders' equity
       Common stock, without par value, $1 stated value:
            750,000 shares authorized, 388,052 shares
            issued and outstanding at March 31, 2003
            and December 31, 2002                                                       388,052              388,052
       Additional paid-in capital                                                     7,557,845            7,557,845
       Retained earnings                                                                166,162               31,111
       Accumulated other comprehensive income                                            20,639               28,492
                                                                                   ------------         ------------
            Total Shareholders' Equity                                                8,132,698            8,005,500
                                                                                   ------------         ------------
                 Total Liabilities and Shareholders' Equity                        $ 85,146,307         $ 82,376,388
                                                                                   ============         ============
</TABLE>

See accompanying notes to consolidated financial statements.



                                  Page 3 of 26
<PAGE>

                          WESTERN RESERVE BANCORP, INC.
                  CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

<TABLE>
<CAPTION>
                                                                           Three months ended March 31,
                                                                               2003              2002
                                                                           ----------        ----------
<S>                                                                        <C>               <C>
Interest income
      Loans, including fees                                                $1,162,961        $  986,889
      Securities                                                               33,274            41,091
      Federal funds sold and other short-term funds                            10,362             9,766
                                                                           ----------        ----------
                                                                            1,206,597         1,037,746
Interest expense
      Deposits                                                                347,075           291,792
      Borrowings                                                               33,442            18,413
                                                                           ----------        ----------
                                                                              380,517           310,205
                                                                           ----------        ----------
           Net interest income                                                826,080           727,541
Provision for loan losses                                                      50,000            70,254
                                                                           ----------        ----------
           Net interest income after
              provision for loan losses                                       776,080           657,287
Noninterest income
      Service charges on deposit accounts                                      24,004            22,005
      Net gains on sales of mortgage loans                                     35,016            22,639
      Other                                                                    17,761            13,978
                                                                           ----------        ----------
                                                                               76,781            58,622
Noninterest expense
      Salaries and employee benefits                                          340,478           281,103
      Premises and equipment                                                   94,555            76,387
      Data processing                                                          54,547            47,071
      Professional fees                                                        53,742            18,402
      Taxes other than income and payroll                                      20,841            18,534
      Supplies, printing and postage                                           17,550            13,800
      Other                                                                    66,525            67,430
                                                                           ----------        ----------
                                                                              648,238           522,727
                                                                           ----------        ----------
Income before income taxes                                                    204,623           193,182
Income tax expense                                                             69,572            65,681
                                                                           ----------        ----------
Net income                                                                 $  135,051        $  127,501
                                                                           ==========        ==========
Average shares outstanding (basic)                                            388,052           388,052
                                                                           ==========        ==========
Average shares outstanding (diluted)                                          397,343           395,582
                                                                           ==========        ==========

Basic income per share                                                     $     0.35        $     0.33
                                                                           ==========        ==========
Diluted income per share                                                   $     0.34        $     0.32
                                                                           ==========        ==========
</TABLE>

See accompanying notes to consolidated financial statements.



                                  Page 4 of 26
<PAGE>


                          WESTERN RESERVE BANCORP, INC.
                 CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

<TABLE>
<CAPTION>
                                                                                   Three months ended March 31,
                                                                                  2003                    2002
                                                                                ---------               ---------
<S>                                                                             <C>                     <C>
Net income                                                                      $ 135,051               $ 127,501
Other comprehensive income, net of tax:
      Net unrealized gains/(losses) on securities
           arising during the period                                               (7,853)                 (9,549)
                                                                                ---------               ---------
                                                                                   (7,853)                 (9,549)
                                                                                ---------               ---------

Comprehensive income                                                            $ 127,198               $ 117,952
                                                                                =========               =========
</TABLE>


See accompanying notes to consolidated financial statements.



                                  Page 5 of 26
<PAGE>


                          WESTERN RESERVE BANCORP, INC.
                      CONSOLIDATED STATEMENTS OF CASH FLOWS

<TABLE>
<CAPTION>
                                                                              Three months ended March 31,
                                                                                2003                2002
                                                                            -----------         -----------
<S>                                                                         <C>                 <C>
Cash flows from operating activities
      Net income                                                            $   135,051         $   127,501
      Adjustments to reconcile net income to
        net cash from operating activities:
           Provision for loan losses                                             50,000              70,254
           Depreciation                                                          32,755              27,212
           Net amortization of securities                                         5,458               4,472
           Loans originated for sale                                         (3,651,814)         (1,770,042)
           Proceeds from sales of loan originations                           3,843,971           2,666,686
           Gains on sales of loans                                              (35,016)            (22,639)
           Federal Home Loan Bank stock dividends                                (1,800)             (1,000)
           Net change in:
              Interest receivable                                                (9,063)            (51,511)
              Interest payable                                                   10,636               3,993
              Other assets                                                      (61,706)             42,387
              Other liabilities                                                 (20,710)             57,515
                                                                            -----------         -----------
              Net cash from operating activities                                297,762           1,154,828

Cash  flows from investing activities Available for sale securities:
           Maturities, repayments and calls                                     636,422             208,494
      Net increase in loans                                                  (2,244,532)         (6,863,037)
      Purchases of premises and equipment                                       (14,241)             (1,494)
                                                                            -----------         -----------
           Net cash from investing activities                                (1,622,351)         (6,656,037)

Cash flows from financing activities
      Net increase in deposits                                                2,628,813           5,930,120
      Net change in short-term borrowings                                        23,982             176,761
                                                                            -----------         -----------
           Net cash from financing activities                                 2,652,795           6,106,881
                                                                            -----------         -----------

Change in cash and cash equivalents                                           1,328,206             605,672
Cash and cash equivalents at beginning of period                              3,926,735           2,142,993
                                                                            -----------         -----------
Cash and cash equivalents at end of period                                  $ 5,254,941         $ 2,748,665
                                                                            ===========         ===========

Supplemental cash flow information:
      Interest paid                                                         $   369,881         $   306,212
      Income taxes paid                                                          55,000                   0
</TABLE>


See accompanying notes to consolidated financial statements.



                                  Page 6 of 26
<PAGE>

                          WESTERN RESERVE BANCORP, INC.
                          NOTES TO FINANCIAL STATEMENTS
                                 MARCH 31, 2003


NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Organization: Western Reserve Bancorp, Inc. (the Company) was incorporated under
the laws of the State of Ohio on February 27, 1997. Until November 6, 1998, the
Company was a development stage company and its efforts had been devoted to the
offering of its common shares to the general public and to obtaining regulatory
approvals, recruiting personnel and financial planning relating to the
organization of Western Reserve Bank (the Bank). The Company completed its
public stock offering on July 1, 1998. A total of 320,267 shares of the
Company's common stock were sold. Proceeds, net of offering costs, were
$6,368,499. Approximately $5,800,000 of the proceeds were used to purchase all
of the capital stock of the Bank. During 2000, the Company sold an additional
67,785 shares of common stock in an intra-state offering. The Offering resulted
in proceeds, net of offering costs, of $1,577,000.

The Bank, which commenced operations on November 6, 1998, is chartered by the
State of Ohio, and is a member of the Federal Reserve System and the Federal
Deposit Insurance Corporation (FDIC). The Company is a bank holding company
pursuant to the Bank Holding Company Act of 1956, as amended.

Nature of Business: The Bank offers a full range of commercial and consumer
banking services primarily in its defined market area of Medina County, Ohio.
All of the financial service operations are considered by management to be
aggregated in one reportable operating segment, i.e., commercial banking.

Principles of Consolidation: The consolidated financial statements include the
accounts of Western Reserve Bancorp, Inc. and its wholly-owned subsidiary,
Western Reserve Bank. All material intercompany accounts and transactions have
been eliminated.

Cash Equivalents: For purposes of the Statements of Cash Flows, cash equivalents
include amounts due from banks and federal funds sold. Generally, federal funds
are sold for periods of less than thirty days.

Use of Estimates in Preparation of Financial Statements: In preparing financial
statements in conformity with accounting principles generally accepted in the
United States, management makes estimates and assumptions based on available
information. These estimates and assumptions affect the amounts reported in the
financial statements and the disclosures provided, and future results could
differ. Areas involving the use of management's estimates and assumptions
include the allowance for loan losses, the realization of deferred tax assets
and the depreciation of premises and equipment.



                                  Page 7 of 26
<PAGE>


                          WESTERN RESERVE BANCORP, INC.
                          NOTES TO FINANCIAL STATEMENTS
                                 MARCH 31, 2003


NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Basis of Presentation: The accompanying unaudited consolidated financial
statements have been prepared in accordance with generally accepted accounting
principles for interim financial information and with the instructions to Form
10-QSB. Accordingly, they do not include all of the information and footnotes
required by accounting principles generally accepted in the United States for
complete financial statements.

It is the opinion of management that all adjustments necessary for a fair
presentation have been made and that all adjustments were of a normal recurring
nature. The Annual Report of the Company for the year ended December 31, 2002
contains consolidated financial statements and related notes, which should be
read in conjunction with the accompanying consolidated financial statements.

Stock Compensation: Employee compensation expense under stock options is
reported using the intrinsic value method. No stock-based compensation cost is
reflected in net income, as all options granted had an exercise price equal to
or greater than the market price of the underlying common stock at the date of
grant. The following table illustrates the effect on net income and earnings per
share if expense was measured using the fair value recognition provisions of
FASB Statement No. 123, Accounting for Stock Based Compensation.

<TABLE>
<CAPTION>
                                       Three months ended March 31,
                                           2003               2002
                                      -----------         -----------
<S>                                   <C>                 <C>
Net income as reported                $   135,051         $   127,501
Deduct: stock based
   Compensation expense
   determined under fair value
   based method                           (18,432)            (31,824)
                                      -----------         -----------
Pro forma net income                  $   116,619         $    95,677
                                      ===========         ===========

Basic earnings per share
   as reported                        $      0.35         $      0.33
Pro forma basic earnings
   per share                          $      0.30         $      0.25

Diluted earnings per share
   as reported                        $      0.34         $      0.32
Pro forma diluted earnings
   per share                          $      0.29         $      0.24
</TABLE>


                                  Page 8 of 26
<PAGE>


                          WESTERN RESERVE BANCORP, INC.
                          NOTES TO FINANCIAL STATEMENTS
                                 MARCH 31, 2003


NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

No options were granted during 2002 or the first quarter of 2003.

Reclassifications: For comparative purposes, certain amounts in the 2002
consolidated financial statements have been reclassified to conform to the 2003
presentation.


NOTE 2 - LOANS

Loans at March 31, 2003 and December 31, 2002, were as follows:

<TABLE>
<CAPTION>
                                 March 31,        December 31,
                                   2003               2002
                               -----------        -----------
<S>                            <C>                <C>
Commercial business            $23,074,124        $22,844,715
Commercial real estate          39,553,560         38,906,291
Commercial construction          3,040,810          2,418,218
Home equity                      8,158,508          7,482,574
Residential mortgage
   and construction              1,303,908          1,264,597
Consumer installment             1,536,105          1,505,334
Credit card and other              227,478            228,232
                               -----------        -----------
                               $76,894,493        $74,649,961
                               ===========        ===========
</TABLE>

Activity in the Allowance for Loan Losses for the three months ended March 31,
2003 and 2002, was as follows:

<TABLE>
<CAPTION>
                                 Three months ended March 31,
                                    2003               2002
                                 ----------        ----------
<S>                              <C>               <C>
Beginning balance                $1,042,309        $  754,679
Loans charged off                        --                --
Recoveries                               --            35,649
Provision for loan losses            50,000            70,254
                                 ----------        ----------
Ending balance                   $1,092,309        $  860,582
                                 ==========        ==========
</TABLE>

As of March 31, 2003 and December 31, 2002, loans totaling $340,776 were in
nonaccrual status. There were no other loans more than 90 days past due.



                                  Page 9 of 26
<PAGE>


                          WESTERN RESERVE BANCORP, INC.
                          NOTES TO FINANCIAL STATEMENTS
                                 MARCH 31, 2003


NOTE 3 - DEPOSITS

Deposits at March 31, 2003 and December 31, 2002, were as follows:

<TABLE>
<CAPTION>
                                              March 31,        December 31,
                                                2003               2002
                                            -----------        -----------
<S>                                         <C>                <C>
Noninterest-bearing demand                  $ 8,116,350        $ 8,875,323
Interest-bearing demand                       4,938,468          5,302,358
Market Rate Savings                          26,044,162         27,475,357
Time under $100,000                          21,840,838         18,375,589
Time $100,000 and over                       12,569,406         10,850,784
                                            -----------        -----------
                                            $73,509,224        $70,880,411
                                            ===========        ===========
</TABLE>

At March 31, 2003, the Bank had $12,877,000 in national market certificates of
deposit, primarily in amounts of $99,000. As of December 31, 2002, the Bank had
$10,099,000 in national market CDs.





                                 Page 10 of 26
<PAGE>


                          WESTERN RESERVE BANCORP, INC.
           MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
                            AND RESULTS OF OPERATIONS
                                 MARCH 31, 2003

OVERVIEW

The following discussion compares the financial condition of Western Reserve
Bancorp, Inc. (the Company) and its wholly-owned subsidiary, Western Reserve
Bank (the Bank) at March 31, 2003, to that of December 31, 2002, and the results
of operations for the three months ended March 31, 2003 and 2002. This
discussion should be read in conjunction with the interim financial statements
and footnotes included herein.

Certain statements contained in this report that are not historical facts are
forward looking statements subject to certain risks and uncertainties. When used
herein, the terms "anticipates," "plans," "expects," "believes," and similar
expressions as they relate to the Company or its management are intended to
identify such forward looking statements. The Company's actual results,
performance or achievements may materially differ from those expressed or
implied in the forward-looking statements. Risks and uncertainties that could
cause or contribute to such material differences include, but are not limited
to, general economic conditions, the interest rate environment, competitive
conditions in the financial services industry, changes in law, governmental
policies and regulations, and rapidly changing technology affecting financial
services.

FINANCIAL CONDITION

Total assets as of March 31, 2003 increased 3.4%, or $2,769,919, to $85,146,307,
compared with $82,376,388 at December 31, 2002.

The primary reason for the increase in total assets was an increase in Federal
funds sold and loans, primarily funded by the Bank obtaining $2,778,000 in new
national market certificates of deposit to fund anticipated loan growth and to
provide liquidity.

Total loans at March 31, 2003, were $76,894,493, an increase of $2,244,532, or
3.0% when compared to $74,649,961 at December 31, 2002. Most of the net loan
growth in the first quarter of 2003 was in the commercial loan sector. This
growth was spread over several categories, including commercial real estate
loans, which increased approximately $647,000, commercial construction loans, up
$623,000, and purchased loan participations, up $684,000. Home equity lines of
credit also increased, by $676,000, or 9.0%, primarily due to the Bank's efforts
to cross-sell home equity lines when originating or refinancing first mortgage
loans. As of March 31, 2003, commercial loans to businesses were $65,668,494, or
85.4% of total loans. Residential real estate and home equity loans totaled
$9,462,416, or 12.3% of total loans, and consumer installment and credit card
loans were $1,763,582, or 2.3% of the loan portfolio.




                                 Page 11 of 26
<PAGE>


                          WESTERN RESERVE BANCORP, INC.
           MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
                            AND RESULTS OF OPERATIONS
                                 MARCH 31, 2003

FINANCIAL CONDITION (CONTINUED)

During the first quarter of 2003, commercial loan growth was slower than
anticipated. Two factors contributed to this slower growth: the winter weather
slowed construction projects and the related loan draws; and several existing
loans were lost to competitors who offered long-term, fixed-rate loans at rates
that the Bank declined to match because management believed doing so would be
detrimental to the Bank's results.

Mortgage loans held for sale amounted to $80,000 at March 31, 2003, compared
with $237,141 at December 31, 2002.

Management anticipates that loan demand will continue to be strong, especially
in the commercial loan segment. The loan-to-deposit ratio as of March 31, 2003,
was 104.6%, compared to 105.3% at December 31, 2002, and the loan-to-assets
ratio was 90.3% at March 31, 2003, compared to 90.6% at December 31, 2002.
Management expects that the loan-to-deposit ratio throughout 2003 will remain in
the range of 95%-105% and the loan-to-assets ratio will be between 85% to 95%.

Of the total loans at March 31, 2003, approximately $69,800,000 or 90.8% are at
a variable rate of interest, and $7,094,000 or 9.2% are fixed rate. $47,173,000,
or 61.3%, of the Bank's loans mature or are able to be repriced within twelve
months. Only $779,000 of total loans mature or reprice in more than five years.

Cash and cash equivalents increased $1,328,206 to $5,254,941 at March 31, 2003
from $3,926,735 at December 31, 2002. The increase is a result of the Bank
obtaining additional deposits, and provides additional liquidity.

As of March 31, 2003, the Bank owned $1,545,535 of U.S. government agency
securities and $669,587 of variable-rate mortgage-backed securities in its
available-for-sale securities portfolio. As of March 31, 2003, the maturity
dates of the agency securities ranged from November 2004 to June 2007.

Deposits increased to $73,509,224 at March 31, 2003, an increase of $2,628,813,
or 3.7%, over the $70,880,411 at December 31, 2002. Deposits at March 31, 2003
consisted of $8,116,350 or 11.0% in noninterest-bearing demand deposits,
$4,938,468 or 6.7% in interest-bearing NOW accounts, $26,044,162 or 35.4% in
variable-rate savings and money market accounts, $31,244,076 or 42.5% in time
certificates of deposit, and $3,166,168 or 4.3% in IRAs.

The mix of the Bank's deposits has shifted since the beginning of 2002. There
are two primary reasons. First, as interest rates declined, depositors moved
funds from the Bank's market rate savings product to seek higher yields in
certificates of deposit. The Bank's market rate savings


                                 Page 12 of 26
<PAGE>


                          WESTERN RESERVE BANCORP, INC.
           MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
                            AND RESULTS OF OPERATIONS
                                 MARCH 31, 2003

FINANCIAL CONDITION (CONTINUED)

product is a liquid savings account that offers tiered rates which, at balances
of $15,000 or more, are indexed to a national money-market average, plus 5 to 15
basis points. The weighted average cost of all market rate savings accounts
during the first three months of 2003 was 0.96%. Market rate savings balances
decreased $1,431,000 in the first three months of 2003.

Also, management made the strategic decision to obtain longer-term CD funding to
lock in the historically low rates and to better match the repricing of its
loans with its deposits. A large portion of the Bank's commercial loans are real
estate loans, and many have terms which fix the interest rate for three-year
intervals. By obtaining three-, four- and five-year CDs, the bank is better able
to "match" the repricing of its assets (loans) and liabilities (deposits). This
was accomplished in part by obtaining national market CDs, primarily in
increments of $99,000, with terms ranging from two years to five years, and
rates ranging from 1.70% to 5.25%. At March 31, 2003, the Bank had $12,877,000
of these national market CDs, with a weighted average rate of 3.81%, and a
weighted average remaining maturity of 22 months.

The Bank has obtained additional funding through the Federal Home Loan Bank. In
December 2001 the Bank borrowed $1,700,000 under a 4.28% fixed rate advance that
matures on June 30, 2004. In April 2002 the Bank borrowed $1,500,000 under a
4.15% fixed rate advance that matures on October 30, 2004. Interest is payable
monthly, and the advances are payable at their maturity dates, with prepayment
penalties for early payment. The advances are collateralized by $4,000,000 of
first mortgage loans and $189,700 of FHLB stock under a blanket lien
arrangement.

Total shareholders' equity increased $127,198, to $8,132,698 at March 31, 2003,
from $8,005,500 at December 31, 2002. This increase was due to the Company's net
income of $135,051 for the first quarter of 2003, offset by the decrease in the
fair value of its available-for-sale securities, net of tax, of $7,853.

RESULTS OF OPERATIONS

For the first three months of 2003, net income was $135,051, a 5.9% increase
when compared to $127,501 for the same period in 2002.

The primary reason for the increase in net income was the steady increase in net
interest income. Net interest income before the provision for loan losses for
the first three months of 2003 increased 13.5%, to $826,080. This compares with
$727,541 in the first three months of 2002. The increase in net interest income
is attributable both to loan growth and to lower interest rates paid on
deposits. This effect was partially offset by lower yields on loans and other
interest-earning assets, as well the increase in interest-bearing deposit
balances.


                                 Page 13 of 26
<PAGE>


                          WESTERN RESERVE BANCORP, INC.
           MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
                            AND RESULTS OF OPERATIONS
                                 MARCH 31, 2003

RESULTS OF OPERATIONS (CONTINUED)

Interest and fee income on loans for the first three months of 2003 was
$1,162,961, up 17.8% from $986,889 in the first three months of 2002. Interest
income from investments and short-term funds decreased to $43,636 through the
first three months of 2003, from $50,857 in the same period in 2002. The
decrease in 2003 was primarily due to significantly lower interest rates on both
investments and Federal funds sold when compared to 2002. Also, average balances
in both Federal funds and investments were slightly lower in 2003 than in 2002,
which resulted in lower interest income on these funds.

Interest expense totaled $380,517 for the first quarter of 2003, compared to
$310,205 in the same period of 2002. Interest on deposits increased $55,283, or
18.9%, to $347,075 in the first three months of 2003, from $291,792 in the same
period last year. The increase in deposit interest expense was due to increased
balances in interest-bearing deposits, somewhat offset by decreases in overall
interest rates throughout 2002. Interest on borrowings was $33,442 year-to-date
in 2003, compared to $18,413 in 2002. This increase is due to the Federal Home
Loan Bank borrowings discussed in the "Financial Condition" section of this
report.

The net interest margin for the first quarter of 2003 was 4.06% (including loan
fees of $27,246, which contributed 0.13% to the net interest margin). For the
first quarter of 2002, the net interest margin was 4.61%. The net interest
margin has been impacted by the Bank's strategy (beginning in the second quarter
of 2002) to obtain longer-term funding. (See the discussion of "Interest Rate
Sensitivity" later in this section.) These funds provided additional liquidity
but had a negative effect on the net interest margin in that excess funds were
invested in lower-yielding Federal funds sold until they could be deployed in
higher-yielding loans.

The yield on earning assets has continued to decrease each quarter, reflecting
overall interest rate cuts, the scheduled repricing of existing loans, and new
loans being booked at the current, lower rates. The first quarter yield on
earning assets was 5.93% in 2003, down from 6.58% in the first quarter of 2002.

The cost of interest-bearing funds was stable during 2002, but decreased in the
first quarter of 2003. In the first quarter of 2003, the cost of
interest-bearing funds was 2.28%, compared to 2.49% in the same period of 2002.

In the first quarter of 2003, the provision for probable loan losses was
$50,000, compared to $70,254 in the first quarter of 2002. The primary reason
for the lower provision was that loan growth was slower in early 2003 compared
with the first quarter of 2002 ($6,899,000 in 2002 compared to $2,245,000 in
2003).



                                 Page 14 of 26
<PAGE>


                          WESTERN RESERVE BANCORP, INC.
           MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
                            AND RESULTS OF OPERATIONS
                                 MARCH 31, 2003

RESULTS OF OPERATIONS (CONTINUED)

At March 31, 2003 and December 31, 2002, the Bank had loans totaling $340,776 in
nonaccrual status (i.e., on which no interest income is being recorded). No
other loans were more than 90 days past due.

Management's determination of the appropriate level of the allowance for loan
losses is based, in part, on an evaluation of specific loans, as well as the
consideration of historical loss experiences of other similar community
financial institutions which management believes are representative of the
probable loss experience of the Bank. Other factors considered by management
include the composition of the loan portfolio, current and anticipated economic
conditions, the creditworthiness of the Bank's borrowers and other related
factors. The provision for loan losses has been directly impacted by the rapid
loan growth experienced by the Bank, as well as the effect of the loan portfolio
maturing. Management believes the allowance for loan losses at March 31, 2003,
is adequate to absorb probable losses in the loan portfolio.

Total noninterest income for the first three months of 2003 was $76,781, up
31.0% from $58,622 for the same period in 2002. The primary source of this
income is the origination and sale of long-term fixed rate mortgages. The Bank
sells these mortgage loans and the related servicing, which helps minimize the
interest rate risk associated with keeping long-term mortgages in the Bank's
loan portfolio. During 2002 and continuing into 2003, there has been a
significant increase in the volume of mortgage loans originated and sold due to
the lower interest rate environment. Service charges on deposit accounts have
also increased, to $24,004 year-to-date in 2003, compared to $22,005 in 2002, an
increase of 9.1%. This is due to an increased number of checking accounts, as
well as an increase in certain fees in the second quarter of 2002. The largest
components of "other" noninterest income are fee income from the bank's credit
card and ATM programs, the rental of safe deposit boxes, and the sales of checks
to depositors.

Noninterest expenses were $648,238 for the first three months of 2003, a 24.0%
increase over the $522,727 for the same period of 2002.

Noninterest expenses have increased as the Bank has grown, attributable
primarily to additional salaries and benefits associated with growth of the bank
and increased staffing in the lending area, as well as increases in professional
fees associated with legal, accounting, audit and directors' fees.


                                 Page 15 of 26
<PAGE>


                          WESTERN RESERVE BANCORP, INC.
           MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
                            AND RESULTS OF OPERATIONS
                                 MARCH 31, 2003

RESULTS OF OPERATIONS (CONTINUED)

Total "other" noninterest expenses in the first three months of 2003 and 2002
consisted of the following:

<TABLE>
<CAPTION>
                                             Three months ended March 31,
                                                 2003           2002
                                                -------        -------
<S>                                             <C>            <C>
Community relations, marketing
   and advertising                              $21,346        $20,548
Loan expenses                                     6,291         21,603
Insurance                                        10,602          7,594
Travel and entertainment                         10,144          3,564
Telephone                                         6,571          4,547
Other                                            11,571          9,574
                                                -------        -------
                                                $66,525        $67,430
                                                =======        =======
</TABLE>

In the first quarter of 2002, the Bank entered into a lease for approximately
2,080 square feet of additional space in the building adjoining its
headquarters, and the commercial lending group moved into the new space in the
second quarter of 2002.

Management expects that noninterest expenses will continue to increase
moderately during the next several quarters in conjunction with the growth of
the Bank.


LIQUIDITY AND CAPITAL RESOURCES

Liquidity refers to the ability to fund loan demand, meet deposit customers'
withdrawal needs and provide for operating expenses. As summarized in the
Statement of Cash Flows, the main source of cash flow is deposits from
customers, and to a lesser extent, repayment of loan principal and interest
income on loans and investments.

The primary uses of cash are making loans and, secondarily, investing in
securities and short-term interest-earning assets. As loan demand outpaced local
deposit growth, the Bank utilized other sources of funding, including national
market CDs and Federal Home Loan Bank advances (as previously discussed). Other
potential sources of liquidity include the sale of securities from the Bank's
securities portfolio, the sale of loans, obtaining additional Federal Home Loan
Bank advances, and the purchase of federal funds, repurchase agreements, and
brokered deposits.




                                 Page 16 of 26
<PAGE>


                          WESTERN RESERVE BANCORP, INC.
           MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
                            AND RESULTS OF OPERATIONS
                                 MARCH 31, 2003

LIQUIDITY AND CAPITAL RESOURCES (CONTINUED)

At March 31, 2003 and December 31, 2002, Western Reserve Bank's risk-based
capital ratios and the minimums to be considered well-capitalized under the
Federal Reserve Board's prompt corrective action guidelines were as follows:

<TABLE>
<CAPTION>

                                                                       Western Reserve Bank          Minimum to be
                                                                  March 31,        December 31,        considered
                                                                    2003              2002          well-capitalized
                                                                  ---------        ------------     ----------------
<S>                                                               <C>              <C>               <C>
     Tier 1 "core" capital to risk-weighted assets                    8.4%               8.5%              6.0%
     Total capital to risk-weighted assets                           11.6               11.7              10.0%
     Tier 1 leverage ratio                                            7.6                7.6               5.0%
</TABLE>

As the Bank continues to grow, management expects its risk-based capital ratios
to continue to decrease. The Company has been evaluating the growth trends and
alternative mechanisms for supporting that growth. Some of the options under
consideration were selling more stock, issuing trust preferred securities, or
borrowing through a line of credit. The Company has decided to use the line of
credit approach, and will be finalizing the details in the second quarter. Under
this plan, the Company would borrow against the line of credit and then
downstream capital as needed to the Bank in order to maintain the Bank's capital
levels above the well-capitalized minimums. Factors that management and the
Board considered include: this approach does not dilute current shareholders'
positions; interest rates are extremely favorable at this time; and it will be
more cost-effective to do one larger stock offering in the future rather than
several smaller ones in the next few years as the Bank grows.

Management also continues to evaluate selected growth opportunities, which could
include branching. However, any such decision would require that the opportunity
meet strict criteria for potential growth and profitability.

As discussed above, total shareholders' equity increased $127,198, to $8,132,698
at March 31, 2003 from $8,005,500 at December 31, 2002. The increase was due to
the net income of $135,051, offset by the decrease in the fair value of
available-for-sale securities of $7,853, net of tax.




                                 Page 17 of 26
<PAGE>


                          WESTERN RESERVE BANCORP, INC.
           MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
                            AND RESULTS OF OPERATIONS
                                 MARCH 31, 2003

INTEREST RATE SENSITIVITY

One of management's objectives in managing the Bank's balance sheet for interest
rate sensitivity is to reduce volatility in the net interest margin by matching,
as closely as possible, the timing of the repricing of its interest rate
sensitive assets with interest rate sensitive liabilities. During 2001, interest
rates decreased rapidly and significantly, with 11 interest rate decreases
totaling 475 basis points during the year. In November 2002, there was another
50 basis point decrease. To the extent that the Bank's interest sensitive
liabilities, primarily market rate savings accounts, repriced more quickly than
interest sensitive loans, the Bank's net interest margin was positively
affected. However, management believed that, in the first half of 2002, interest
rates were at or near their low point. Therefore, management's strategy has been
to lock in lower rates on the funding side of the balance sheet with longer-term
CDs and fixed rate Federal Home Loan Bank advances. Also, many of the Bank's
loans are commercial real estate loans with rates that are fixed for up to three
years, and this strategy allows the Bank to match longer-term funding with these
loans, thus minimizing volatility in the net interest margin.




                                 Page 18 of 26
<PAGE>


                          WESTERN RESERVE BANCORP, INC.
                    DISCLOSURE CONTROLS AND PROCEDURES REPORT
                                 MARCH 31, 2003

Within the 90-day period prior to the filing of this report, an evaluation was
carried out under the supervision and with the participation of Western Reserve
Bancorp, Inc.'s management, including its Chief Executive Officer and Chief
Financial Officer, of the effectiveness of its disclosure controls and
procedures (as defined in Rule 13a-14(c)/15d-14(d) under the Securities Exchange
Act of 1934). Based on their evaluation, the Chief Executive Officer and Chief
Financial Officer have concluded that the Company's disclosure controls and
procedures are, to the best of their knowledge, effective to ensure that
information required to be disclosed by Western Reserve Bancorp, Inc. in reports
that it files or submits under the Exchange Act is recorded, processed,
summarized and reported within the time periods specified in Securities and
Exchange Commission rules and forms. Subsequent to the date of their evaluation,
there were no significant changes in Western Reserve Bancorp, Inc.'s internal
controls or in other factors that could significantly affect these controls,
including any corrective actions with regard to significant deficiencies and
material weaknesses.





                                 Page 19 of 26
<PAGE>


                          WESTERN RESERVE BANCORP, INC.
                                   FORM 10-QSB
                          QUARTER ENDED MARCH 31, 2003

                           PART II--OTHER INFORMATION


Items 1 - 5 are not applicable.

Item 6 - Exhibits and Reports on Form 8-K:

         (a) Exhibits

<TABLE>
<CAPTION>
     EXHIBIT
     NUMBER        DESCRIPTION
     -------       -----------
<S>                <C>                                                                                      <C>
       3.1         Certificate of Incorporation of Western Reserve Bancorp, Inc.                             *
       3.2         Bylaws of Western Reserve Bancorp, Inc.                                                   *
       4.1         Stock Certificate of Western Reserve Bancorp, Inc.                                        *
      10.1         Employment Agreement of Edward J. McKeon, Dated December 14, 2001                         *
      10.2         Lease Agreement by and between Michael Rose DBA Washington Properties and Western
                   Reserve Bancorp, Inc.                                                                     *
      10.3         Western Reserve Bancorp, Inc. 1998 Stock Option Plan, Amended and Restated as of April    *
                   20, 2000
      10.4         Agreement by and between Western Reserve Bancorp, Inc. and Brian K. Harr, dated June      *
                   18, 2001, as amended February 20, 2002
      10.5         Agreement by and between Western Reserve Bancorp, Inc. and Cynthia A. Mahl, dated June    *
                   18, 2001, as amended February 20, 2002
       11          Earnings per Share                                                                        24
      99.1         Certification of Financial Results by Edward J. McKeon, President and Chief Executive     25
                   Officer
      99.2         Certification of Financial Results by Cynthia A. Mahl, Senior Vice President and Chief    26
                   Financial Officer
</TABLE>

* Previously filed and incorporated herein by reference.


         (b) No current reports on Form 8-K were filed by the Company during
             the quarter ended March 31, 2003


                                 Page 20 of 26
<PAGE>


                          WESTERN RESERVE BANCORP, INC.
                                   FORM 10-QSB
                          QUARTER ENDED MARCH 31, 2003

                                   SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.

                                  Western Reserve Bancorp, Inc.



Date: May 13, 2003       By:      /s/ Edward J. McKeon
                                  ---------------------------------------------
                                  Edward J. McKeon
                                  President and Chief Executive Officer
                                  (Principal Executive Officer)



                                  /s/ Cynthia A. Mahl
                                  ---------------------------------------------
                                  Cynthia A. Mahl
                                  Senior Vice President/Chief Financial Officer
                                  (Principal Financial Officer)





                                 Page 21 of 26
<PAGE>


                          WESTERN RESERVE BANCORP, INC.
                                   FORM 10-QSB
                          QUARTER ENDED MARCH 31, 2003

                                 CERTIFICATIONS

I, Edward J. McKeon, President and Chief Executive Officer, certify that:

1)   I have reviewed this quarterly report on Form 10-QSB of Western Reserve
     Bancorp, Inc.;

2)   Based on my knowledge, this quarterly report does not contain any untrue
     statement of a material fact or omit to state a fact necessary to make the
     statements made, in light of the circumstances under which such statements
     were made, not misleading with respect to the period covered by this
     quarterly report;

3)   Based on my knowledge, the financial statements and other financial
     information included in this quarterly report, fairly present in all
     material respects the financial condition, results of operations and cash
     flows of the registrant as of, and for, the periods presented in this
     quarterly report;

4)   The registrant's other certifying officers and I are responsible for
     establishing and maintaining disclosure controls and procedures (as defined
     in Exchange Act Rules 13a-14 and 15d-14) for the registrant and we have:

     a)   designed such disclosure controls and procedures to ensure that
          material information relating to the registrant, including its
          consolidated subsidiaries, is made known to us by others within those
          entities, particularly during the period in which this quarterly
          report is being prepared;

     b)   evaluated the effectiveness of the registrant's disclosure controls
          and procedures as of a date within 90 days prior to the filing date of
          this quarterly report (the "Evaluation Date"); and

     c)   presented in this quarterly report our conclusions about the
          effectiveness of the disclosure controls and procedures based on our
          evaluation as of the Evaluation Date;

5)   The registrant's other certifying officers and I have disclosed, based on
     our most recent evaluation, to the registrant's auditors and the audit
     committee of registrant's board of directors (or persons performing the
     equivalent functions):

     a)   all significant deficiencies in the design or operation of internal
          controls which could adversely affect the registrant's ability to
          record, process, summarize and report financial data and have
          identified for the registrant's auditors any material weaknesses in
          internal controls; and

     b)   any fraud, whether or not material, that involves management or other
          employees who have a significant role in the registrant's internal
          controls; and

6)   The registrant's other certifying officers and I have indicated in this
     quarterly report whether or not there were significant changes in internal
     controls or in other factors that could significantly affect internal
     controls subsequent to the date of our most recent evaluation, including
     any corrective actions with regard to significant deficiencies and material
     weaknesses.


Date:  May 13, 2003                     /s/ Edward J. McKeon
                                        ---------------------------------------
                                        Edward J. McKeon, President and CEO


                                 Page 22 of 26
<PAGE>


                          WESTERN RESERVE BANCORP, INC.
                                   FORM 10-QSB
                          QUARTER ENDED MARCH 31, 2003

                                 CERTIFICATIONS

I, Cynthia A. Mahl, Senior Vice President and Chief Financial Officer, certify
that:

1.   I have reviewed this quarterly report on Form 10-QSB of Western Reserve
     Bancorp, Inc.;

2.   Based on my knowledge, this quarterly report does not contain any untrue
     statement of a material fact or omit to state a fact necessary to make the
     statements made, in light of the circumstances under which such statements
     were made, not misleading with respect to the period covered by this
     quarterly report;

3.   Based on my knowledge, the financial statements and other financial
     information included in this quarterly report, fairly present in all
     material respects the financial condition, results of operations and cash
     flows of the registrant as of, and for, the periods presented in this
     quarterly report;

4.   The registrant's other certifying officers and I are responsible for
     establishing and maintaining disclosure controls and procedures (as defined
     in Exchange Act Rules 13a-14 and 15d-14) for the registrant and we have:

     a)   designed such disclosure controls and procedures to ensure that
          material information relating to the registrant, including its
          consolidated subsidiaries, is made known to us by others within those
          entities, particularly during the period in which this quarterly
          report is being prepared;

     b)   evaluated the effectiveness of the registrant's disclosure controls
          and procedures as of a date within 90 days prior to the filing date of
          this quarterly report (the "Evaluation Date"); and

     c)   presented in this quarterly report our conclusions about the
          effectiveness of the disclosure controls and procedures based on our
          evaluation as of the Evaluation Date;

5.   The registrant's other certifying officers and I have disclosed, based on
     our most recent evaluation, to the registrant's auditors and the audit
     committee of registrant's board of directors (or persons performing the
     equivalent functions):

     a)   all significant deficiencies in the design or operation of internal
          controls which could adversely affect the registrant's ability to
          record, process, summarize and report financial data and have
          identified for the registrant's auditors any material weaknesses in
          internal controls; and

     b)   any fraud, whether or not material, that involves management or other
          employees who have a significant role in the registrant's internal
          controls; and

6.   The registrant's other certifying officers and I have indicated in this
     quarterly report whether or not there were significant changes in internal
     controls or in other factors that could significantly affect internal
     controls subsequent to the date of our most recent evaluation, including
     any corrective actions with regard to significant deficiencies and material
     weaknesses.


Date:  May 13, 2003            /s/ Cynthia A. Mahl
                                -----------------------------------------------
                                Cynthia A. Mahl, Senior Vice President and CFO


                                 Page 23 of 26