| x                                             | Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934  |
|-----------------------------------------------|------------------------------------------------------------------------------------------|
|                                          |                                                                                     |
| For the Quarterly Period ended March 31, 2011 |
|                                          |                                                                                     |
| o                                             | Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |

| Ohio                            | 31-1566623          |
|---------------------------------|---------------------|
| (State or other jurisdiction of | (IRS Employer       |
| incorporation or organization)  | Identification No.) |
|                            |                |

|   | Large accelerated filer o | Accelerated filer o         |
|--------|---------------------------|-----------------------------|
|   | Non-accelerated filer o   | Smaller reporting company x |

----

| PART I--Financial Information |                                                                                                                               |
|-------------------------------|------------------------------------------------------------------------------------------------------------------------------------|
|                          |                                                                                                                               | Page |
| ITEM 1                        | FINANCIAL STATEMENTS                                                                                                          |   |
|                          | Consolidated Balance Sheets as of March 31, 2011   and December 31, 2010                                            |  3  |
|                          | Consolidated Statements of Operations for the three-month   periods ended March 31, 2011 and 2010                   |  4  |
|                          | Consolidated Statements of Comprehensive Income (Loss) for the three-   month periods ended March 31, 2011 and 2010 |  5  |
|                          | Consolidated Statements of Cash Flows for the three-month periods   ended March 31, 2011 and 2010                   |  6  |
|                          | Notes to Consolidated Financial Statements                                                                                         | 7  |
| ITEM 2                        | MANAGEMENT’S DISCUSSION AND ANALYSIS OF   FINANCIAL CONDITION AND RESULTS OF OPERATIONS                       |  26  |
| ITEM 3                        | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT   MARKET RISK                                                        |  N/A |
|                          |                                                                                                                               |   |
| ITEM 4                        | CONTROLS AND PROCEDURES                                                                                                            | 38  |
|                          |                                                                                                                               |
| PART II--Other Information    | 39                                                                                                                                 |
|                          |                                                                                                                               |   |
| SIGNATURES                    | 43                                                                                                                            |
|                          |                                                                                                                               |

----

| WESTERN RESERVE BANCORP, INC. |
|-------------------------------|
| CONSOLIDATED BALANCE SHEETS   |

|                                                                                                                          |   | (unaudited) |        |   |         |   |
|-------------------------------------------------------------------------------------------------------------------------------|--------|-------------|-------------|--------|--------------|--------|
|                                                                                                                          |   | March 31,   |        |   | December 31, |   |
|                                                                                                                          |   | 2011        |        |   | 2010         |   |
| ASSETS                                                                                                                        |   |        |        |   |         |   |
| Cash and due from financial institutions                                                                                      |   | $           | 2,786,740   |   |         | $      | 2,343,069 |   |
| Interest-bearing deposits in other financial institutions                                                                     |   |        | 10,822,645  |   |         |   | 11,923,425 |   |
| Federal funds sold                                                                                                            |   |        | 305,000     |   |         |   | 230,000 |   |
|         Cash and cash equivalents                                                          |   |        | 13,914,385  |   |         |   | 14,496,494 |   |
| Securities available for sale                                                                                                 |   |        | 12,334,103  |   |         |   | 12,993,197 |   |
| Loans held for sale                                                                                                           |   |        | -           |   |         |   | 236,000 |   |
| Loans, net of allowance of $4,506,818 and $4,544,316                                                                          |   |        | 151,700,623 |   |         |   | 154,960,478 |   |
| Restricted stock                                                                                                              |   |        | 966,100     |   |         |   | 966,100 |   |
| Other real estate owned                                                                                                       |   |        | 1,072,386   |   |         |   | 991,450 |   |
| Premises and equipment, net                                                                                                   |   |        | 991,242     |   |         |   | 1,029,685 |   |
| Bank owned life insurance                                                                                                     |   |        | 2,459,343   |   |         |   | 2,434,183 |   |
| Prepaid Federal Deposit Insurance Corporation premiums                                                                        |   |        | 529,643     |   |         |   | 618,005 |   |
| Accrued interest receivable and other assets                                                                                  |   |        | 2,859,089   |   |         |   | 2,838,804 |   |
|                                                                                                                          |   | $           | 186,826,914 |   |         | $      | 191,564,396 |   |
|                                                                                                                          |   |        |        |   |         |   |   |   |
| LIABILITIES AND SHAREHOLDERS' EQUITY                                                                                          |   |        |        |   |         |   |   |   |
| Deposits                                                                                                                      |   |        |        |   |         |   |   |   |
|         Noninterest-bearing                                                                |   | $           | 20,740,361  |   |         | $      | 22,934,531 |   |
|         Interest-bearing                                                                   |   |        | 145,251,324 |   |         |   | 148,704,510 |   |
|                Total deposits                           |   |        | 165,991,685 |   |         |   | 171,639,041 |   |
| Federal Home Loan Bank advances                                                                                               |   |        | 2,500,000   |   |         |   | 1,900,000 |   |
| Accrued interest payable and other liabilities                                                                                |   |        | 690,848     |   |         |   | 688,299 |   |
|                Total Liabilities                        |   |        | 169,182,533 |   |         |   | 174,227,340 |   |
|                                                                                                                          |   |        |        |   |         |   |   |   |
| Shareholders' Equity                                                                                                          |   |        |        |   |         |   |   |   |
|   Cumulative preferred stock, no par value, $1,000 per share liquidation value:                                          |   |        |        |   |         |
|            Series A, fixed rate, 4,700 shares authorized and                |   |        |        |   |         |   |   |   |
|               issued at March 31, 2011 and December 31, 2010 |   |        | 4,700,000   |   |         |   | 4,700,000 |   |
|           Discount on Series A preferred stock                                   |   |        | (189,242    | )      |         |   | (204,381 | ) |
|           Series B, fixed rate, 235 shares authorized and                        |   |        |        |   |         |   |   |   |
|               issued at March 31, 2011 and December 31, 2010 |   |        | 235,000     |   |         |   | 235,000 |   |
|           Premium on Series B preferred stock                                    |   |        | 18,464      |   |         |   | 19,941 |   |
|   Common stock, no par value, $1 stated value, 1,500,000 shares                                                     |   |        |        |   |         |   |   |   |
|           authorized, 586,414 and 586,084 shares issued and                      |   |        |        |   |         |   |   |   |
|           outstanding as of March 31, 2011 and December 31, 2010                 |   |        | 586,414     |   |         |   | 586,084 |   |
|   Additional paid-in capital                                                                                             |   |        | 9,984,734   |   |         |   | 9,981,912 |   |
|   Retained earnings                                                                                                 |   |        | 2,094,686   |   |         |   | 1,809,618 |   |
|   Accumulated other comprehensive income                                                                            |   |        | 214,325     |   |         |   | 208,882 |   |
|                  Total Shareholders' Equity   |   |        | 17,644,381  |   |         |   | 17,337,056 |   |
|                                                                                                                          |   | $           | 186,826,914 |   |         | $      | 191,564,396 |   |

----

| WESTERN RESERVE BANCORP, INC.         |
|---------------------------------------|
| CONSOLIDATED STATEMENTS OF OPERATIONS |
| (unaudited)                           |

|                                               |   | Three months ended |      |
|----------------------------------------------------|--------|--------------------|-----------|
|                                               |   | March 31,          |      |
|                                               |   | 2011               |      |   | 2010 |   |
| Interest and dividend income                       |   |               |      |   |   |   |
| Loans, including fees                              |   | $                  | 2,053,553 |   |   | $ | 2,131,924 |   |
| Securities:                                        |   |               |      |   |   |   |   |   |
| Taxable                                            |   |               | 69,060    |   |   |   | 58,028 |   |
| Tax exempt                                         |   |               | 44,591    |   |   |   | 44,383 |   |
| Dividends on restricted stock                      |   |               | 12,317    |   |   |   | 10,354 |   |
| Federal funds sold and short-term investments      |   |               | 4,973     |   |   |   | 9,359 |   |
|                                               |   |               | 2,184,494 |   |   |   | 2,254,048 |   |
| Interest expense                                   |   |               |      |   |   |   |   |   |
| Deposits                                           |   |               | 413,635   |   |   |   | 555,610 |   |
| Borrowings                                         |   |               | 16,571    |   |   |   | 30,869 |   |
|                                               |   |               | 430,206   |   |   |   | 586,479 |   |
| Net interest income                                |   |               | 1,754,288 |   |   |   | 1,667,569 |   |
| Provision for loan losses                          |   |               | 8,135     |   |   |   | 785,830 |   |
| Net interest income after                          |   |               |      |   |   |   |   |   |
|    provision for loan losses        |   |               | 1,746,153 |   |   |   | 881,739 |   |
| Noninterest income                                 |   |               |      |   |   |   |   |   |
| Service charges on deposit accounts                |   |               | 43,013    |   |   |   | 51,064 |   |
| Net gains on sales of loans                        |   |               | 6,606     |   |   |   | 14,305 |   |
| Other                                              |   |               | 73,110    |   |   |   | 80,169 |   |
|                                               |   |               | 122,729   |   |   |   | 145,538 |   |
| Noninterest expense                                |   |               |      |   |   |   |   |   |
| Salaries and employee benefits                     |   |               | 594,880   |   |   |   | 634,946 |   |
| Occupancy and equipment                            |   |               | 224,946   |   |   |   | 215,472 |   |
| Federal deposit insurance                          |   |               | 95,125    |   |   |   | 71,845 |   |
| Data processing                                    |   |               | 90,887    |   |   |   | 93,654 |   |
| Professional fees                                  |   |               | 55,944    |   |   |   | 67,249 |   |
| Taxes other than income and payroll                |   |               | 54,013    |   |   |   | 50,165 |   |
| Directors' fees                                    |   |               | 27,400    |   |   |   | 69,135 |   |
| Collection and other real estate owned             |   |               | 107,279   |   |   |   | 81,315 |   |
| Marketing and community relations                  |   |               | 34,154    |   |   |   | 39,188 |   |
| Other                                              |   |               | 68,004    |   |   |   | 65,240 |   |
|                                               |   |               | 1,352,632 |   |   |   | 1,388,209 |   |
| Income (loss) before income taxes                  |   |               | 516,251   |   |   |   | (360,932 | ) |
| Income tax expense (benefit)                       |   |               | 153,481   |   |   |   | (144,497 | ) |
| Net income (loss)                                  |   | $                  | 362,769   |   |   | $ | (216,435 | ) |
|                                               |   |               |      |   |   |   |   |   |
| Preferred stock dividends and amortization, net    |   |               | 77,700    |   |   |   | 77,700 |   |
| Net income (loss) available to common shareholders |   | $                  | 285,069   |   |   | $ | (294,135 | ) |
|                                               |   |               |      |   |   |   |   |   |
| Earnings (loss) per common share:                  |   |               |      |   |   |   |   |   |
| Basic                                              |   | $                  | 0.49      |   |   | $ | (0.50 | ) |
| Diluted                                            |   | $                  | 0.49      |   |   | $ | (0.50 | ) |
|                                               |   |               |      |   |   |   |   |   |
| Average shares outstanding (basic)                 |   |               | 586,088   |   |   |   | 584,731 |   |
| Average shares outstanding (diluted)               |   |               | 586,088   |   |   |   | 584,731 |   |

----

| WESTERN RESERVE BANCORP, INC.                          |
|--------------------------------------------------------|
| CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) |
|   (unaudited)                                |

|                                    |   | Three months ended March 31, |    |
|-----------------------------------------|--------|------------------------------|---------|
|                                    |   | 2011                         |    |   | 2010 |   |
| Net income  (loss)            |   | $                            | 362,768 |   |   | $ | (216,435 | ) |
| Other comprehensive income, net of tax: |   |                         |    |   |   |   |   |   |
| Unrealized gains on securities          |   |                         |    |   |   |   |   |   |
| arising during the period               |   |                         | 5,443   |   |   |   | 50,888 |   |
|                                    |   |                         |    |   |   |   |   |   |
|                                    |   | $                            | 368,211 |   |   | $ | (165,547 | ) |

----

| WESTERN RESERVE BANCORP, INC.         |
|---------------------------------------|
| CONSOLIDATED STATEMENTS OF CASH FLOWS |
| (unaudited)                           |

|                                                     |   | Quarter ended March 31, |       |
|----------------------------------------------------------|--------|-------------------------|------------|
|                                                     |   | 2011                    |       |   | 2010 |   |
| Cash flows from operating activities                     |   |                    |       |   |   |   |
| Net income (loss)                                        |   | $                       | 362,769    |   |   | $ | (216,435 | ) |
| Adjustments to reconcile net income to net cash          |   |                    |       |   |   |   |   |   |
|    from operating activities:             |   |                    |       |   |   |   |   |   |
| Provision for loan losses                                |   |                    | 8,135      |   |   |   | 785,830 |   |
| Depreciation                                             |   |                    | 49,733     |   |   |   | 38,855 |   |
| Net amortization (accretion) of securities               |   |                    | 8,271      |   |   |   | (2,153 | ) |
| Stock-based compensation                                 |   |                    | 182        |   |   |   | 35,391 |   |
| Loans originated for sale                                |   |                    | (100,000   | ) |   |   | (383,000 | ) |
| Proceeds from sales of loan originations                 |   |                    | 342,606    |   |   |   | 1,087,305 |   |
| Gains on sales of loans                                  |   |                    | (6,606     | ) |   |   | (14,305 | ) |
| Proceeds from disposition of other repossessed assets    |   |                    | 25,765     |   |   |   | - |   |
| Increase in cash surrender value of                      |   |                    |       |   |   |   |   |   |
|    bank owned life insurance              |   |                    | (25,160    | ) |   |   | (25,017 | ) |
| Net change in other assets and other liabilities         |   |                    | 42,056     |   |   |   | 122,976 |   |
| Net cash from operating activities                       |   |                    | 707,751    |   |   |   | 1,429,447 |   |
|                                                     |   |                    |       |   |   |   |   |   |
| Cash flows from investing activities                     |   |                    |       |   |   |   |   |   |
| Available for sale securities:                           |   |                    |       |   |   |   |   |   |
| Purchases                                                |   |                    | -          |   |   |   | - |   |
| Maturities, repayments and calls                         |   |                    | 659,070    |   |   |   | 376,978 |   |
| Purchase of restricted stock                             |   |                    | -          |   |   |   | (34,200 | ) |
| Net decrease (increase) in loans                         |   |                    | 3,170,784  |   |   |   | (722,399 | ) |
| Purchases of premises and equipment                      |   |                    | (11,290    | ) |   |   | (92,348 | ) |
| Net cash from investing activities                       |   |                    | 3,818,564  |   |   |   | (471,969 | ) |
|                                                     |   |                    |       |   |   |   |   |   |
| Cash flows from financing activities                     |   |                    |       |   |   |   |   |   |
| Net (decrease) increase in deposits                      |   |                    | (5,647,356 | ) |   |   | 2,658,664 |   |
| Repayments of FHLB advances                              |   |                    | (400,000   | ) |   |   | (500,000 | ) |
| Proceeds from FHLB advances                              |   |                    | 1,000,000  |   |   |   | - |   |
| Dividends on preferred stock                             |   |                    | (64,038    | ) |   |   | (64,037 | ) |
| Proceeds from issuance of common stock under ESPP        |   |                    | 2,970      |   |   |   | 3,699 |   |
| Net cash from financing activities                       |   |                    | (5,108,424 | ) |   |   | 2,098,326 |   |
|                                                     |   |                    | -          |   |   |   |   |   |
| Change in cash and cash equivalents                      |   |                    | (582,109   | ) |   |   | 3,055,804 |   |
| Cash and cash equivalents at beginning of period         |   |                    | 14,496,494 |   |   |   | 18,178,601 |   |
| Cash and cash equivalents at end of period               |   | $                       | 13,914,385 |   |   | $ | 21,234,405 |   |
|                                                     |   |                    |       |   |   |   |   |   |
| Supplemental cash flow information:                      |   |                    |       |   |   |   |   |   |
| Interest paid                                            |   |                    | 426,383    |   |   |   | 556,709 |   |
| Income taxes paid                                        |   |                    | -          |   |   |   | - |   |
|                                                     |   |                    |       |   |   |   |   |   |
| Supplemental disclosure of noncash investing activities: |   |                    |       |   |   |   |   |   |
| Transfer from loans to other real estate owned           |   |                    | 80,936     |   |   |   | - |   |
| Transfer from loans to other repossessed assets          |   |                    | -          |   |   |   | 82,500 |   |
| Transfer from loans to loans held for sale               |   |                    | -          |   |   |   | - |   |

----

----

|                                                           |   | Three months ended March 31, |    |
|----------------------------------------------------------------|--------|------------------------------|---------|
|                                                           |   | 2011                         |    |   | 2010 |   |
| Numerator:                                                     |   |                         |    |   |   |   |
|   Net income                                         |   | $                            | 362,769 |   |   | $ | (216,435 | ) |
|   Preferred stock dividends and amortization, net    |   |                         | (77,700 | ) |   |   | (77,700 | ) |
|   Net income (loss) available to common shareholders |   |                         | 285,069 |   |   |   | (294,135 | ) |
|                                                           |   |                         |    |   |   |   |   |   |
| Denominator:                                                   |   |                         |    |   |   |   |   |   |
|   Denominator for basic earnings per share available |   |                         |    |   |   |   |   |   |
| to common shareholders-weighted average shares                 |   |                         | 586,088 |   |   |   | 584,731 |   |
|                                                           |   |                         |    |   |   |   |   |   |
| Effect of dilutive shares:                                     |   |                         |    |   |   |   |   |   |
| Nonqualified stock options                                     |   |                         | -       |   |   |   | - |   |
|                                                           |   |                         |    |   |   |   |   |   |
| Denominator for diluted earnings per share available           |   |                         |    |   |   |   |   |   |
| to common shareholders                                         |   |                         | 586,088 |   |   |   | 584,731 |   |
|                                                           |   |                         |    |   |   |   |   |   |
| Basic earnings (loss) per common share                         |   | $                            | 0.49    |   |   | $ | (0.50 | ) |
|                                                           |   |                         |    |   |   |   |   |   |
| Diluted earnings (loss) per common share                       |   | $                            | 0.49    |   |   | $ | (0.50 | ) |
|                                                           |   |                         |    |   |   |   |   |   |
| Stock options not considered in computing                      |   |                         |    |   |   |   |   |   |
|   diluted earnings per common share because          |   |                         |    |   |   |   |   |   |
|   they were antidilutive                             |   |                         | 98,137  |   |   |   | 98,137 |   |

----

----

|                           |   |      |       |   | Gross      |   |    | Gross      |   |   |       |   |
|--------------------------------|--------|-----------|------------|--------|------------|--------|---------|------------|--------|--------|------------|--------|
|                           |   | Amortized |       |   | Unrealized |   |    | Unrealized |   |   |       |   |
|                           |   | Cost      |       |   | Gains      |   |    | Losses     |   |   | Fair Value |   |
| March 31, 2011                 |   |      |       |   |       |   |    |       |   |   |       |   |
| Mortgage-backed residential:   |   |      |       |   |       |   |    |       |   |   |       |   |
|   Guaranteed by GNMA |   | $         | 3,889,307  |   |       | $      | -       |       |   | $      | (32,792    | )      |   | $ | 3,856,515 |   |
|   Issued by FHLMC    |   |      | 1,419,362  |   |       |   | 82,906  |       |   |   | -          |   |   |   | 1,502,268 |   |
|   Issued by FNMA     |   |      | 1,756,893  |   |       |   | 124,750 |       |   |   | (601       | )      |   |   | 1,881,042 |   |
| Tax-free municipal             |   |      | 4,690,288  |   |       |   | 158,340 |       |   |   | -          |   |   |   | 4,848,628 |   |
| Taxable municipal              |   |      | 253,519    |   |       |   | -       |       |   |   | (7,869     | )      |   |   | 245,650 |   |
|                           |   | $         | 12,009,369 |   |       | $      | 365,996 |       |   | $      | (41,262    | )      |   | $ | 12,334,103 |   |
|                           |   |      |       |   |       |   |    |       |   |   |       |   |   |   |   |   |
| December 31, 2010              |   |      |       |   |       |   |    |       |   |   |       |   |   |   |   |   |
| Mortgage-backed residential:   |   |      |       |   |       |   |    |       |   |   |       |   |   |   |   |   |
|   Guaranteed by GNMA |   | $         | 4,048,961  |   |       | $      | 2,936   |       |   | $      | (45,584    | )      |   | $ | 4,006,313 |   |
|   Issued by FHLMC    |   |      | 1,556,847  |   |       |   | 80,434  |       |   |   | -          |   |   |   | 1,637,281 |   |
|   Issued by FNMA     |   |      | 1,927,112  |   |       |   | 131,517 |       |   |   | (174       | )      |   |   | 2,058,455 |   |
| Tax-free municipal             |   |      | 4,890,165  |   |       |   | 158,571 |       |   |   | (3,258     | )      |   |   | 5,045,478 |   |
| Taxable municipal              |   |      | 253,625    |   |       |   | -       |       |   |   | (7,955     | )      |   |   | 245,670 |   |
|                           |   | $         | 12,676,710 |   |       | $      | 373,458 |       |   | $      | (56,971    | )      |   | $ | 12,993,197 |   |

----

|                        |   | Amortized |       |   | Fair   |   |
|-----------------------------|--------|-----------|------------|--------|--------|--------|
|                        |   | Cost      |       |   | Value  |   |
| Less than one year          |   | $         | 239,398    |   |   | $      | 243,123 |   |
| One to five years           |   |      | 573,500    |   |   |   | 594,124 |   |
| Five to ten years           |   |      | 3,469,612  |   |   |   | 3,587,105 |   |
| Ten to fifteen years        |   |      | 661,297    |   |   |   | 669,926 |   |
| Mortgage-backed residential |   |      | 7,065,562  |   |   |   | 7,239,825 |   |
|                        |   | $         | 12,009,369 |   |   | $      | 12,334,103 |   |

|                    |   | Less than 12 Months |      |   | 12 Months or more |   |    | Total  |   |
|-------------------------|--------|---------------------|-----------|--------|-------------------|--------|---------|--------|--------|
|                    |   | Fair                |      |   | Unrealized        |   |    | Fair   |   |   | Unrealized |   |   | Fair |   |   | Unrealized |   |
|                    |   | Value               |      |   | Loss              |   |    | Value  |   |   | Loss |   |   | Value |   |   | Loss |   |
| March 31, 2011          |   |                |      |   |              |   |    |   |   |   |   |   |   |   |   |   |   |   |
| Guaranteed by GNMA      |   | $                   | 3,856,515 |   |              | $      | (32,792 | )      |   | $ | - |   |   | $ | - |   |   | $ | 3,856,515 |   |   | $ | (32,792 | ) |
| Issued by FNMA          |   |                | 45,969    |   |              |   | (601    | )      |   |   | - |   |   |   | - |   |   |   | 45,969 |   |   |   | (601 | ) |
| Tax-free municipal      |   |                | -         |   |              |   | -       |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Taxable municipal       |   |                | 245,650   |   |              |   | (7,869  | )      |   |   | - |   |   |   | - |   |   |   | 245,650 |   |   |   | (7,869 | ) |
|    Total |   | $                   | 4,148,134 |   |              | $      | (41,262 | )      |   | $ | - |   |   | $ | - |   |   | $ | 4,148,134 |   |   | $ | (41,262 | ) |
|                    |   |                |      |   |              |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| December 31, 2010       |   |                |      |   |              |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Guaranteed by GNMA      |   | $                   | 3,499,522 |   |              | $      | (45,584 | )      |   | $ | - |   |   | $ | - |   |   | $ | 3,499,522 |   |   | $ | (45,584 | ) |
| Issued by FNMA          |   |                | 48,751    |   |              |   | (174    | )      |   |   | - |   |   |   | - |   |   |   | 48,751 |   |   |   | (174 | ) |
| Tax-free municipal      |   |                | 396,740   |   |              |   | (3,258  | )      |   |   | - |   |   |   | - |   |   |   | 396,740 |   |   |   | (3,258 | ) |
| Taxable municipal       |   |                | 245,670   |   |              |   | (7,955  | )      |   |   | - |   |   |   | - |   |   |   | 245,670 |   |   |   | (7,955 | ) |
|    Total |   | $                   | 4,190,683 |   |              | $      | (56,971 | )      |   | $ | - |   |   | $ | - |   |   | $ | 4,190,683 |   |   | $ | (56,971 | ) |

----

|                                          |   | March 31, |        |   | December 31, |   |
|-----------------------------------------------|--------|-----------|-------------|--------|--------------|--------|
|                                          |   | 2011      |        |   | 2010         |   |
| Commercial real estate                        |   | $         | 110,435,174 |   |         | $      | 113,451,159 |   |
| Commercial business                           |   |      | 27,538,341  |   |         |   | 27,141,540 |   |
| Residential mortgages:                        |   |      |        |   |         |   |   |   |
|    Home equity lines of credit |   |      | 11,301,084  |   |         |   | 11,620,756 |   |
|    1-4 family residential      |   |      | 646,992     |   |         |   | 806,411 |   |
| Consumer:                                     |   |      |        |   |         |   |   |   |
|    Installment                 |   |      | 4,975,735   |   |         |   | 4,926,165 |   |
|    Purchased auto loans        |   |      | 1,310,115   |   |         |   | 1,558,763 |   |
|                                          |   |      | 156,207,441 |   |         |   | 159,504,794 |   |
| Less allowance for loan losses                |   |      | 4,506,818   |   |         |   | 4,544,316 |   |
|                                          |   | $         | 151,700,623 |   |         | $      | 154,960,478 |   |

| March 31, 2011                                   |   |                  |      |   |               |   |     |        |   |   |     |   |   |        |   |   |   |   |
|--------------------------------------------------|--------|-----------------------|-----------|--------|--------------------|--------|----------|-------------|--------|--------|----------|--------|--------|-------------|--------|--------|--------|--------|
| Allowance for loan losses:                       |   | CommercialReal Estate |      |   | CommercialBusiness |   |     | Residential |   |   | Consumer |   |   | Unallocated |   |   | Total  |   |
|    Beginning Balance              |   | $                     | 3,466,505 |   |               | $      | 666,437  |        |   | $      | 162,372  |   |   | $           | 34,776 |   |   | $      | 214,226 |   |   | $ | 4,544,316 |   |
|    Loans charged off              |   |                  | (43,416   | )      |               |   | -        |        |   |   | (19,061  | )      |   |        | (3,522 | )      |   |   | - |   |   |   | (65,999 | ) |
|    Recoveries                     |   |                  | 12,603    |   |               |   | 7,331    |        |   |   | -        |   |   |        | 432    |   |   |   | - |   |   |   | 20,366 |   |
|    Provision for loan losses      |   |                  | (53,315   | )      |               |   | (160,250 | )           |   |   | 9,320    |   |   |        | 1,814  |   |   |   | 210,566 |   |   |   | 8,135 |   |
|    Total ending allowance balance |   | $                     | 3,382,377 |   |               | $      | 513,518  |        |   | $      | 152,631  |   |   | $           | 33,500 |   |   | $      | 424,792 |   |   | $ | 4,506,818 |   |

| Beginning balance         |   | $      | 2,316,715 |   |
|---------------------------|--------|--------|-----------|--------|
| Provision for loan losses |   |   | 785,830   |   |
| Loans charged off         |   |   | (781,573  | )      |
| Recoveries                |   |   | 1,356     |   |
| Ending balance            |   | $      | 2,322,328 |   |

----

| March 31, 2011                                  |   | CommercialReal Estate |        | CommercialBusiness |   | ResidentialMortgages |       | Consumer |   |   | Unallocated |   |   | Total  |      |
|-------------------------------------------------|--------|-----------------------|-------------|--------------------|--------|----------------------|------------|----------|--------|--------|-------------|--------|--------|--------|-----------|
| Allowance for loan losses:                      |   |                  |        |               |   |                 |       |     |   |   |        |   |   |   |      |   |   |   |
| Ending allowance balance attributable to loans: |   |                  |        |               |   |                 |       |     |   |   |        |   |   |   |      |   |   |   |
| Individually evaluated for impairment           |   | $                     | 1,538,341   |               |   | $                    | 101,408    |     |   | $      | 27,047      |   |   | $      | -         |   |   | $ | - |   |   | $ | 1,666,796 |   |
| Collectively evaluated for impairment           |   |                  | 1,844,036   |               |   |                 | 412,110    |     |   |   | 125,584     |   |   |   | 33,500    |   |   |   | 424,792 |   |   |   | 2,840,022 |   |
|                                            |   |                  |        |               |   |                 |       |     |   |   |        |   |   |   |      |   |   |   |   |   |   |   |   |   |
| Total ending allowance balance                  |   | $                     | 3,382,377   |               |   | $                    | 513,518    |     |   | $      | 152,631     |   |   | $      | 33,500    |   |   | $ | 424,792 |   |   | $ | 4,506,818 |   |
|                                            |   |                  |        |               |   |                 |       |     |   |   |        |   |   |   |      |   |   |   |   |   |   |   |   |   |
| Loans:                                          |   |                  |        |               |   |                 |       |     |   |   |        |   |   |   |      |   |   |   |   |   |   |   |   |   |
| Loans individually evaluated for impairment     |   | $                     | 8,072,605   |               |   | $                    | 344,820    |     |   | $      | 289,171     |   |   | $      | -         |   |   | $ | - |   |   | $ | 8,706,596 |   |
| Loans collectively evaluated for impairment     |   |                  | 102,362,569 |               |   |                 | 27,193,521 |     |   |   | 11,658,905  |   |   |   | 6,285,850 |   |   |   | - |   |   |   | 147,500,845 |   |
|                                            |   |                  |        |               |   |                 |       |     |   |   |        |   |   |   |      |   |   |   |   |   |   |   |   |   |
| Total ending loans balance                      |   | $                     | 110,435,174 |               |   | $                    | 27,538,341 |     |   | $      | 11,948,076  |   |   | $      | 6,285,850 |   |   | $ | - |   |   | $ | 156,207,441 |   |
|                                            |   |                  |        |               |   |                 |       |     |   |   |        |   |   |   |      |   |   |   |   |   |   |   |   |   |
|                                            |   |                  |        |               |   |                 |       |     |   |   |        |   |   |   |      |   |   |   |   |   |   |   |   |   |
|                                            |   |                  |        |               |   |                 |       |     |   |   |        |   |   |   |      |   |   |   |   |   |   |   |   |   |
|                                            |   |                  |        |               |   |                 |       |     |   |   |        |   |   |   |      |   |   |   |   |   |   |   |   |   |
| December 31, 2010                               |   | CommercialReal Estate |        | CommercialBusiness |   | ResidentialMortgages |       | Consumer |   |   | Unallocated |   |   | Total  |      |
| Allowance for loan losses:                      |   |                  |        |               |   |                 |       |     |   |   |        |   |   |   |      |   |   |   |   |   |   |   |   |   |
| Ending allowance balance attributable to loans: |   |                  |        |               |   |                 |       |     |   |   |        |   |   |   |      |   |   |   |   |   |   |   |   |   |
| Individually evaluated for impairment           |   | $                     | 1,574,734   |               |   | $                    | 101,258    |     |   | $      | 28,303      |   |   | $      | -         |   |   | $ | - |   |   | $ | 1,704,295 |   |
| Collectively evaluated for impairment           |   |                  | 1,891,771   |               |   |                 | 565,179    |     |   |   | 134,069     |   |   |   | 34,776    |   |   |   | 214,226 |   |   |   | 2,840,021 |   |
|                                            |   |                  |        |               |   |                 |       |     |   |   |        |   |   |   |      |   |   |   |   |   |   |   |   |   |
| Total ending allowance balance                  |   | $                     | 3,466,505   |               |   | $                    | 666,437    |     |   | $      | 162,372     |   |   | $      | 34,776    |   |   | $ | 214,226 |   |   | $ | 4,544,316 |   |
|                                            |   |                  |        |               |   |                 |       |     |   |   |        |   |   |   |      |   |   |   |   |   |   |   |   |   |
| Loans:                                          |   |                  |        |               |   |                 |       |     |   |   |        |   |   |   |      |   |   |   |   |   |   |   |   |   |
| Loans individually evaluated for impairment     |   | $                     | 8,429,959   |               |   | $                    | 436,289    |     |   | $      | 292,483     |   |   | $      | -         |   |   | $ | - |   |   | $ | 9,158,731 |   |
| Loans collectively evaluated for impairment     |   |                  | 105,021,200 |               |   |                 | 26,705,251 |     |   |   | 12,134,684  |   |   |   | 6,484,928 |   |   |   | - |   |   |   | 150,346,063 |   |
|                                            |   |                  |        |               |   |                 |       |     |   |   |        |   |   |   |      |   |   |   |   |   |   |   |   |   |
| Total ending loans balance                      |   | $                     | 113,451,159 |               |   | $                    | 27,141,540 |     |   | $      | 12,427,167  |   |   | $      | 6,484,928 |   |   | $ | - |   |   | $ | 159,504,794 |   |

----

| March 31, 2011                      |   | UnpaidPrincipalBalance |      |   | RecordedInvestment |   |      | Allowance forLoan LossesAllocated |   |   | AverageRecordedInvestment |   |
|-------------------------------------|--------|------------------------|-----------|--------|--------------------|--------|-----------|-----------------------------------|--------|--------|---------------------------|--------|
| With no related allowance recorded: |   |                   |      |   |               |   |      |                              |   |   |                      |   |
| Commercial real estate              |   | $                      | 2,743,233 |   |               | $      | 2,502,531 |                              |   | $      | -                         |   |   | $ | 2,515,201 |   |
| Commercial business                 |   |                   | 243,412   |   |               |   | 243,412   |                              |   |   | -                         |   |   |   | 275,342 |   |
| Residential mortgage:               |   |                   |      |   |               |   |      |                              |   |   |                      |   |   |   |   |   |
|  Home equity line of credit    |   |                   | -         |   |               |   | -         |                              |   |   | -                         |   |   |   | - |   |
|  1-4 family residential        |   |                   | 50,103    |   |               |   | 50,103    |                              |   |   | -                         |   |   |   | 51,117 |   |
| Consumer:                           |   |                   | -         |   |               |   | -         |                              |   |   |                      |   |   |   |   |   |
|  Installment                   |   |                   | -         |   |               |   | -         |                              |   |   | -                         |   |   |   | - |   |
|  Purchased auto loans          |   |                   | -         |   |               |   | -         |                              |   |   | -                         |   |   |   | - |   |
|                                |   |                   |      |   |               |   |      |                              |   |   |                      |   |   |   |   |   |
| With an allowance recorded:         |   |                   |      |   |               |   |      |                              |   |   |                      |   |   |   |   |   |
| Commercial real estate              |   |                   | 5,685,808 |   |               |   | 5,570,074 |                              |   |   | 1,538,341                 |   |   |   | 5,586,616 |   |
| Commercial business                 |   |                   | 101,408   |   |               |   | 101,408   |                              |   |   | 101,408                   |   |   |   | 101,408 |   |
| Residential mortgage:               |   |                   |      |   |               |   |      |                              |   |   |                      |   |   |   |   |   |
|  Home equity line of credit    |   |                   | 239,068   |   |               |   | 239,068   |                              |   |   | 27,047                    |   |   |   | 239,491 |   |
|  1-4 family residential        |   |                   | -         |   |               |   | -         |                              |   |   | -                         |   |   |   | - |   |
| Consumer:                           |   |                   |      |   |               |   |      |                              |   |   |                      |   |   |   |   |   |
|  Installment                   |   |                   | -         |   |               |   | -         |                              |   |   | -                         |   |   |   | - |   |
|  Purchased auto loans          |   |                   | -         |   |               |   | -         |                              |   |   | -                         |   |   |   | - |   |
| Total                               |   | $                      | 9,063,032 |   |               | $      | 8,706,596 |                              |   | $      | 1,666,796                 |   |   | $ | 8,769,175 |   |

----

| December 31, 2010                   |   | UnpaidPrincipalBalance |      |   | RecordedInvestment |   |      | Allowance forLoan LossesAllocated |   |
|-------------------------------------|--------|------------------------|-----------|--------|--------------------|--------|-----------|-----------------------------------|--------|
| With no related allowance recorded: |   |                   |      |   |               |   |      |                              |   |
| Commercial real estate              |   | $                      | 3,854,343 |   |               | $      | 3,335,723 |                              |   | $ | - |   |
| Commercial business                 |   |                   | 334,881   |   |               |   | 334,881   |                              |   |   | - |   |
| Residential mortgage:               |   |                   |      |   |               |   |      |                              |   |   |   |   |
|  Home equity line of credit    |   |                   | -         |   |               |   | -         |                              |   |   | - |   |
|  1-4 family residential        |   |                   | 51,725    |   |               |   | 51,725    |                              |   |   | - |   |
| Consumer:                           |   |                   | -         |   |               |   | -         |                              |   |   |   |   |
|  Installment                   |   |                   | -         |   |               |   | -         |                              |   |   | - |   |
|  Purchased auto loans          |   |                   | -         |   |               |   | -         |                              |   |   | - |   |
|                                |   |                   |      |   |               |   |      |                              |   |   |   |   |
| With an allowance recorded:         |   |                   |      |   |               |   |      |                              |   |   |   |   |
| Commercial real estate              |   |                   | 5,094,236 |   |               |   | 5,094,236 |                              |   |   | 1,574,734 |   |
| Commercial business                 |   |                   | 101,408   |   |               |   | 101,408   |                              |   |   | 101,258 |   |
| Residential mortgage:               |   |                   |      |   |               |   |      |                              |   |   |   |   |
|  Home equity line of credit    |   |                   | 240,758   |   |               |   | 240,758   |                              |   |   | 28,303 |   |
|  1-4 family residential        |   |                   | -         |   |               |   | -         |                              |   |   | - |   |
| Consumer:                           |   |                   |      |   |               |   |      |                              |   |   |   |   |
|  Installment                   |   |                   | -         |   |               |   | -         |                              |   |   | - |   |
|  Purchased auto loans          |   |                   | -         |   |               |   | -         |                              |   |   | - |   |
| Total                               |   | $                      | 9,677,351 |   |               | $      | 9,158,731 |                              |   | $ | 1,704,295 |   |

----

|                             |   | Nonaccrual |      |   | Loans Past Due Over90 Days Still Accruing |   |
|----------------------------------|--------|------------|-----------|--------|-------------------------------------------|--------|
|                             |   | 2011       |      |   | 2010                                      |   |   | 2011 |   |   | 2010 |   |
| Commercial real estate           |   | $          | 6,587,226 |   |                                      | $      | 6,866,564 |   |   | $ | - |   |   | $ | - |   |
| Commercial business              |   |       | 296,182   |   |                                      |   | 387,251 |   |   |   | - |   |   |   | - |   |
| Residential mortgage:            |   |       |      |   |                                      |   |   |   |   |   |   |   |   |   |   |   |
|  Home equity line of credit |   |       | 239,068   |   |                                      |   | 240,758 |   |   |   | - |   |   |   | - |   |
|  1-4 family residential     |   |       | 50,103    |   |                                      |   | 51,725 |   |   |   | - |   |   |   | - |   |
| Consumer:                        |   |       |      |   |                                      |   |   |   |   |   |   |   |   |   |   |   |
|  Installment                |   |       | -         |   |                                      |   | - |   |   |   | - |   |   |   | - |   |
|  Purchased auto loans       |   |       | -         |   |                                      |   | - |   |   |   | - |   |   |   | 8,131 |   |
| Total                            |   | $          | 7,172,579 |   |                                      | $      | 7,546,298 |   |   | $ | - |   |   | $ | 8,131 |   |

| March 31, 2011                   |   | 30 - 59 DaysPast Due |    |   | 60 - 89 DaysPast Due |   |    | Over 90 DaysPast Due |   |   | Total PastDue |   |   | Not Past Due |      |   | Total  |   |
|----------------------------------|--------|----------------------|---------|--------|----------------------|--------|---------|----------------------|--------|--------|---------------|--------|--------|--------------|-----------|--------|--------|--------|
| Commercial real estate           |   | $                    | 112,722 |   |                 | $      | 122,298 |                 |   | $      | 2,843,839     |   |   | $            | 3,078,859 |   |   | $      | 107,356,315 |   |   | $ | 110,435,174 |   |
| Commercial business              |   |                 | 120,098 |   |                 |   | 10,212  |                 |   |   | 190,367       |   |   |         | 320,677   |   |   |   | 27,217,664 |   |   |   | 27,538,341 |   |
| Residential mortgage:            |   |                 |    |   |                 |   |    |                 |   |   |          |   |   |         |      |   |   |   |   |   |   |   |   |   |
|  Home equity line of credit |   |                 | -       |   |                 |   | 239,068 |                 |   |   | -             |   |   |         | 239,068   |   |   |   | 11,062,016 |   |   |   | 11,301,084 |   |
|  1-4 family residential     |   |                 | 73,338  |   |                 |   | -       |                 |   |   | 50,103        |   |   |         | 123,441   |   |   |   | 523,551 |   |   |   | 646,992 |   |
| Consumer:                        |   |                 |    |   |                 |   |    |                 |   |   |          |   |   |         |      |   |   |   |   |   |   |   |   |   |
|  Installment                |   |                 | -       |   |                 |   | -       |                 |   |   | -             |   |   |         | -         |   |   |   | 4,975,735 |   |   |   | 4,975,735 |   |
|  Purchased auto loans       |   |                 | 30,739  |   |                 |   | 14,481  |                 |   |   | -             |   |   |         | 45,220    |   |   |   | 1,264,895 |   |   |   | 1,310,115 |   |
| Total                            |   | $                    | 336,897 |   |                 | $      | 386,059 |                 |   | $      | 3,084,309     |   |   | $            | 3,807,265 |   |   | $      | 152,400,176 |   |   | $ | 156,207,441 |   |

----

| December 31, 2010                |   | 30 - 59 DaysPast Due |    |   | 60 - 89 DaysPast Due |   |   | Over 90 DaysPast Due |   |   | Total PastDue |   |   | Not Past Due |      |   | Total  |   |
|----------------------------------|--------|----------------------|---------|--------|----------------------|--------|--------|----------------------|--------|--------|---------------|--------|--------|--------------|-----------|--------|--------|--------|
| Commercial real estate           |   | $                    | 244,449 |   |                 | $      | -      |                 |   | $      | 2,485,133     |   |   | $            | 2,729,582 |   |   | $      | 110,721,577 |   |   | $ | 113,451,159 |   |
| Commercial business              |   |                 | 101,155 |   |                 |   | 54,284 |                 |   |   | 178,978       |   |   |         | 334,417   |   |   |   | 26,807,123 |   |   |   | 27,141,540 |   |
| Residential mortgage:            |   |                 |    |   |                 |   |   |                 |   |   |          |   |   |         |      |   |   |   |   |   |   |   |   |   |
|  Home equity line of credit |   |                 | -       |   |                 |   | -      |                 |   |   | -             |   |   |         | -         |   |   |   | 11,620,756 |   |   |   | 11,620,756 |   |
|  1-4 family residential     |   |                 | 75,653  |   |                 |   | -      |                 |   |   | 51,725        |   |   |         | 127,378   |   |   |   | 679,033 |   |   |   | 806,411 |   |
| Consumer:                        |   |                 |    |   |                 |   |   |                 |   |   |          |   |   |         |      |   |   |   |   |   |   |   |   |   |
|  Installment                |   |                 | -       |   |                 |   | -      |                 |   |   | -             |   |   |         | -         |   |   |   | 4,926,165 |   |   |   | 4,926,165 |   |
|  Purchased auto loans       |   |                 | 12,149  |   |                 |   | -      |                 |   |   | 8,131         |   |   |         | 20,280    |   |   |   | 1,538,483 |   |   |   | 1,558,763 |   |
| Total                            |   | $                    | 433,406 |   |                 | $      | 54,284 |                 |   | $      | 2,723,967     |   |   | $            | 3,211,657 |   |   | $      | 156,293,137 |   |   | $ | 159,504,794 |   |

----

| March 31, 2011                   |   | Pass   |        |   | SpecialMention |   | Substandard |   |   | Doubtful |       |   | Not Rated |   |   | Total  |   |
|----------------------------------|--------|--------|-------------|--------|----------------|--------|-------------|--------|--------|----------|------------|--------|-----------|--------|--------|--------|--------|
|                             |   |   |        |   |           |   |        |   |   |     |       |   |      |   |   |   |   |   |
| Commercial real estate           |   | $      | 82,846,690  |   |           | $      | 11,103,783  |   |   | $        | 16,484,701 |   |      | $      | -      |   |   | $ | - |   |   | $ | 110,435,174 |   |
| Commercial business              |   |   | 24,920,988  |   |           |   | 1,646,150   |   |   |     | 971,203    |   |      |   | -      |   |   |   | - |   |   |   | 27,538,341 |   |
| Residential mortgage:            |   |   |        |   |           |   |        |   |   |     |       |   |      |   |   |   |   |   |   |   |   |   |   |   |
|  Home equity line of credit |   |   | -           |   |           |   | 71,250      |   |   |     | 630,365    |   |      |   | -      |   |   |   | 10,599,469 |   |   |   | 11,301,084 |   |
|  1-4 family residential     |   |   | -           |   |           |   | -           |   |   |     | 50,103     |   |      |   | -      |   |   |   | 596,889 |   |   |   | 646,992 |   |
| Consumer:                        |   |   |        |   |           |   |        |   |   |     |       |   |      |   |   |   |   |   |   |   |   |   |   |   |
|  Installment                |   |   | -           |   |           |   | -           |   |   |     | -          |   |      |   | -      |   |   |   | 4,975,735 |   |   |   | 4,975,735 |   |
|  Purchased auto loans       |   |   | -           |   |           |   | -           |   |   |     | -          |   |      |   | -      |   |   |   | 1,310,115 |   |   |   | 1,310,115 |   |
| Total                            |   | $      | 107,767,678 |   |           | $      | 12,821,183  |   |   | $        | 18,136,372 |   |      | $      | -      |   |   | $ | 17,482,208 |   |   | $ | 156,207,441 |   |
|                             |   |   |        |   |           |   |        |   |   |     |       |   |      |   |   |   |   |   |   |   |   |   |   |   |
|                             |   |   |        |   |           |   |        |   |   |     |       |   |      |   |   |   |   |   |   |   |   |   |   |   |
| December 31, 2010                |   | Pass   |        |   | SpecialMention |   | Substandard |   |   | Doubtful |       |   | Not Rated |   |   | Total  |   |
|                             |   |   |        |   |           |   |        |   |   |     |       |   |      |   |   |   |   |   |   |   |   |   |   |   |
| Commercial real estate           |   | $      | 85,034,950  |   |           | $      | 10,717,741  |   |   | $        | 17,698,468 |   |      | $      | -      |   |   | $ | - |   |   | $ | 113,451,159 |   |
| Commercial business              |   |   | 24,023,215  |   |           |   | 1,229,339   |   |   |     | 1,888,986  |   |      |   | -      |   |   |   | - |   |   |   | 27,141,540 |   |
| Residential mortgage:            |   |   |        |   |           |   |        |   |   |     |       |   |      |   |   |   |   |   |   |   |   |   |   |   |
|  Home equity line of credit |   |   | -           |   |           |   | 73,250      |   |   |     | 709,912    |   |      |   | -      |   |   |   | 10,837,594 |   |   |   | 11,620,756 |   |
|  1-4 family residential     |   |   | -           |   |           |   | -           |   |   |     | 51,725     |   |      |   | -      |   |   |   | 754,686 |   |   |   | 806,411 |   |
| Consumer:                        |   |   |        |   |           |   |        |   |   |     |       |   |      |   |   |   |   |   |   |   |   |   |   |   |
|  Installment                |   |   | -           |   |           |   | -           |   |   |     | -          |   |      |   | -      |   |   |   | 4,926,165 |   |   |   | 4,926,165 |   |
|  Purchased auto loans       |   |   | -           |   |           |   | -           |   |   |     | -          |   |      |   | -      |   |   |   | 1,558,763 |   |   |   | 1,558,763 |   |
| Total                            |   | $      | 109,058,165 |   |           | $      | 12,020,330  |   |   | $        | 20,349,091 |   |      | $      | -      |   |   | $ | 18,077,208 |   |   | $ | 159,504,794 |   |

----

|              |   | Residential mortgage       |       |                  | Consumer |        |
|-------------------|--------|----------------------------|------------|-----------------------|----------|-------------|
| March 31, 2011    |   | Home equitylines of credit |       | 1-4 familyresidential |     | Installment |   |   | Purchased autoloans |   |
| Performing        |   | $                          | 11,062,016 |                  |     | $           | 596,889 |   |   | $ | 4,975,735 |   |   | $ | 1,310,115 |   |
| Nonperforming     |   |                       | 239,068    |                  |     |        | 50,103 |   |   |   | - |   |   |   | - |   |
| Total             |   | $                          | 11,301,084 |                  |     | $           | 646,992 |   |   | $ | 4,975,735 |   |   | $ | 1,310,115 |   |
|              |   |                       |       |                  |     |        |   |   |   |   |   |   |   |   |   |   |
|              |   |                       |       |                  |     |        |   |   |   |   |   |   |   |   |   |   |
|              |   | Residential mortgage       |       |                  | Consumer |        |
| December 31, 2010 |   | Home equitylines of credit |       | 1-4 familyresidential |     | Installment |   |   | Purchased auto loans |   |
| Performing        |   | $                          | 11,379,998 |                  |     | $           | 754,686 |   |   | $ | 4,926,165 |   |   | $ | 1,550,632 |   |
| Nonperforming     |   |                       | 240,758    |                  |     |        | 51,725 |   |   |   | - |   |   |   | 8,131 |   |
| Total             |   | $                          | 11,620,756 |                  |     | $           | 806,411 |   |   | $ | 4,926,165 |   |   | $ | 1,558,763 |   |

|                    |   | March 31, 2011 |        |   | December 31, 2010 |   |
|-------------------------|--------|---------------------|-------------|--------|-------------------|--------|
| Interest-bearing demand |   | $                   | 11,347,402  |   |              |   | 11,048,838 |   |
| Savings                 |   |                | 38,290,353  |   |              |   | 39,019,690 |   |
| Money market            |   |                | 30,812,232  |   |              |   | 30,463,427 |   |
| Time under $100,000     |   |                | 27,557,094  |   |              |   | 28,641,574 |   |
| Time $100,000 and over  |   |                | 37,244,243  |   |              |   | 39,530,981 |   |
|                    |   | $                   | 145,251,324 |   |              | $      | 148,704,510 |   |

----

|                                     |   | Three months ended March 31, 2011 |
|------------------------------------------|--------|-----------------------------------|
|                                     |   | Shares                            |   |   | Weighted Average Exercise Price |   |
|                                     |   |                              |   |   |   |   |
| Options outstanding, beginning of period |   |                              | 98,137 |   |   | $ | 18.65 |   |
| Forfeited                                |   |                              | - |   |   |   | - |   |
| Exercised                                |   |                              | - |   |   |   | - |   |
| Granted                                  |   |                              | - |   |   |   | - |   |
|                                     |   |                              |   |   |   |   |   |   |
| Options outstanding, end of period       |   |                              | 98,137 |   |   | $ | 18.65 |   |
|                                     |   |                              |   |   |   |   |   |   |
| Options exercisable, end of period       |   |                              | 97,637 |   |   | $ | 18.60 |   |

----

| Risk free interest rate         | 2.42% to 2.79% |
|---------------------------------|----------------|
| Expected option life (years)    | 5.0 to 6.0     |
| Expected stock price volatility | 22.9% to 24.4% |
| Dividend yield                  | 0.00%          |

----

----

|                                                                                                                                                 |   | Fair Value Measurements Using                                   |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------------------|--------|
|                                                                                                                                                 |   | Quoted Prices in Active Markets for Identical Assets(Level One) |   |   | Significant Other Observable Inputs(Level Two) |   |   | Significant Unobservable Inputs(Level Three) |   |
| March 31, 2011                                                                                                                                       |   |                                                            |   |   |   |   |   |   |   |
| Assets and liabilities measured at fair value                                                                                                        |   |                                                            |   |   |   |   |   |   |   |
| · On a recurring basis                                                                                                                     |   |                                                            |   |   |   |   |   |   |   |
| Investment securities available for sale                                                                                                             |   |                                                            |   |   |   |   |   |   |   |
| Mortgage backed residential                                                                                                                          |   |                                                            |   |   |   |   |   |   |   |
| Guaranteed by GNMA                                                                                                                                   |   | $                                                               | -      |   |   | $ | 3,856,515 |   |   | $ | - |   |
| Issued by FHLMC                                                                                                                                      |   |                                                            | -      |   |   |   | 1,502,268 |   |   |   | - |   |
| Issued by FNMA                                                                                                                                       |   |                                                            | -      |   |   |   | 1,881,042 |   |   |   | - |   |
| Tax free municipal                                                                                                                                   |   |                                                            | -      |   |   |   | 4,848,628 |   |   |   | - |   |
| Taxable municipal                                                                                                                                    |   |                                                            | -      |   |   |   | 245,650 |   |   |   | - |   |
|                                                                                                                                                 |   |                                                            |   |   |   |   |   |   |   |   |   |   |
| · On a nonrecurring basis                                                                                                                  |   |                                                            |   |   |   |   |   |   |   |   |   |   |
| Impaired loans                                                                                                                                       |   |                                                            |   |   |   |   |   |   |   |   |   |   |
| Commercial real estate                                                                                                                               |   |                                                            | -      |   |   |   | - |   |   |   | 4,031,738 |   |
| Commercial business                                                                                                                                  |   |                                                            | -      |   |   |   | - |   |   |   | - |   |
| Home equity line of credit                                                                                                                           |   |                                                            | -      |   |   |   | - |   |   |   | 212,021 |   |
| Other real estate owned                                                                                                                              |   |                                                            |   |   |   |   |   |   |   |   |   |   |
|                      Commercial real estate |   |                                                            | -      |   |   |   | - |   |   |   | - |   |
|                      Commercial business    |   |                                                            | -      |   |   |   | - |   |   |   | - |   |
|                                                                                                                                                 |   |                                                            |   |   |   |   |   |   |   |   |   |   |
| December 31, 2010                                                                                                                                    |   |                                                            |   |   |   |   |   |   |   |   |   |   |
| Assets and liabilities measured at fair value                                                                                                        |   |                                                            |   |   |   |   |   |   |   |   |   |   |
| · On a recurring basis                                                                                                                     |   |                                                            |   |   |   |   |   |   |   |   |   |   |
| Investment securities available for sale                                                                                                             |   |                                                            |   |   |   |   |   |   |   |   |   |   |
| Mortgage backed residential                                                                                                                          |   |                                                            |   |   |   |   |   |   |   |   |   |   |
| Guaranteed by GNMA                                                                                                                                   |   | $                                                               | -      |   |   | $ | 4,006,313 |   |   | $ | - |   |
| Issued by FHLMC                                                                                                                                      |   |                                                            | -      |   |   |   | 1,637,281 |   |   |   | - |   |
| Issued by FNMA                                                                                                                                       |   |                                                            | -      |   |   |   | 2,058,455 |   |   |   | - |   |
| Tax free municipal                                                                                                                                   |   |                                                            | -      |   |   |   | 5,045,478 |   |   |   | - |   |
| Taxable municipal                                                                                                                                    |   |                                                            | -      |   |   |   | 245,670 |   |   |   | - |   |
|                                                                                                                                                 |   |                                                            |   |   |   |   |   |   |   |   |   |   |
| · On a nonrecurring basis                                                                                                                  |   |                                                            |   |   |   |   |   |   |   |   |   |   |
| Impaired loans                                                                                                                                       |   |                                                            |   |   |   |   |   |   |   |   |   |   |
| Commercial real estate                                                                                                                               |   |                                                            | -      |   |   |   | - |   |   |   | 2,038,206 |   |
| Commercial business                                                                                                                                  |   |                                                            | -      |   |   |   | - |   |   |   | 150 |   |
| Home equity line of credit                                                                                                                           |   |                                                            | -      |   |   |   | - |   |   |   | 212,455 |   |
| Other real estate owned                                                                                                                              |   |                                                            | -      |   |   |   | - |   |   |   | 991,450 |   |

----

|                            |   | March 31, 2011 |         |    | December 31, 2010   |   |
|---------------------------------|--------|----------------|--------------|---------|---------------------|--------|
|                            |   | CarryingAmount |         |    | Estimated FairValue |   |   | CarryingAmount |   |   | Estimated FairValue |   |
| Financial assets                |   |           |         |    |                |   |   |   |   |   |   |   |
| Cash and cash equivalents       |   | $              | 13,914,385   |    |                | $      | 13,914,000 |   |   | $ | 14,496,494 |   |   | $ | 14,496,000 |   |
| Securities available for sale   |   |           | 12,334,103   |    |                |   | 12,334,000 |   |   |   | 12,993,197 |   |   |   | 12,993,000 |   |
| Loans, net of allowance         |   |           | 151,700,623  |    |                |   | 148,962,000 |   |   |   | 154,960,478 |   |   |   | 152,301,000 |   |
| Loans held for sale             |   |           | -            |    |                |   | - |   |   |   | 236,000 |   |   |   | 241,000 |   |
| Accrued interest receivable     |   |           | 514,305      |    |                |   | 514,000 |   |   |   | 468,759 |   |   |   | 469,000 |   |
|                            |   |           |         |    |                |   |   |   |   |   |   |   |   |   |   |   |
| Financial liabilities           |   |           |         |    |                |   |   |   |   |   |   |   |   |   |   |   |
| Demand and savings deposits     |   |           | (101,190,348 | )  |                |   | (101,190,000 | )  |   |   | (103,466,486 | ) |   |   | (103,466,000 | ) |
| Time deposits                   |   |           | (64,801,337  | )  |                |   | (63,868,000 | )  |   |   | (68,172,555 | ) |   |   | (67,553,000 | ) |
| Federal Home Loan Bank advances |   |           | (2,500,000   | )  |                |   | (2,549,000 | )  |   |   | (1,900,000 | ) |   |   | (1,934,000 | ) |
| Accrued interest payable        |   |           | (80,389      | )  |                |   | (80,000 | ) |   |   | (76,566 | ) |   |   | (77,000 | ) |

----

|                                          |   | Western Reserve Bank |   |   | Minimum Required forCapital Adequacy Purposes |   |   | Minimum To Be WellCapitalized under PromptCorrective Action Provisions |   |
|-----------------------------------------------|--------|----------------------|--------|--------|-----------------------------------------------|--------|--------|------------------------------------------------------------------------|--------|
| March 31, 2011                                |   | Amount               |   |   | Ratio                                         |   |   | Amount                                                                 |   |   | Ratio |   |   | Amount |   |   | Ratio |   |
|                                          |   |                 |   |   |                                          |   |   |                                                                   |   |   |   |   |   |   |   |   |   |   |
| Total Capital to risk-weighted assets         |   | $                    | 18,385 |   |                                          |   | 11.8   | %                                                                      |   | $ | 12,452 |   |   |   | 8.0 | % |   | $ | 15,565 |   |   |   | 10.0 | % |
|                                          |   |                 |   |   |                                          |   |   |                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Tier 1 (Core) Capital to risk-weighted assets |   |                 | 16,407 |   |                                          |   | 10.5   | %                                                                      |   |   | 6,226 |   |   |   | 4.0 | % |   |   | 9,339 |   |   |   | 6.0 | % |
|                                          |   |                 |   |   |                                          |   |   |                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Tier 1 (Core) Capital to average assets       |   |                 | 16,407 |   |                                          |   | 8.8    | %                                                                      |   |   | 7,432 |   |   |   | 4.0 | % |   |   | 9,290 |   |   |   | 5.0 | % |
|                                          |   |                 |   |   |                                          |   |   |                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| December 31, 2010                             |   |                 |   |   |                                          |   |   |                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                          |   |                 |   |   |                                          |   |   |                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total Capital to risk-weighted assets         |   |                 | 18,060 |   |                                          |   | 11.3   | %                                                                      |   |   | 12,766 |   |   |   | 8.0 | % |   |   | 15,958 |   |   |   | 10.0 | % |
|                                          |   |                 |   |   |                                          |   |   |                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Tier 1 (Core) Capital to risk-weighted assets |   |                 | 16,029 |   |                                          |   | 10.0   | %                                                                      |   |   | 6,383 |   |   |   | 4.0 | % |   |   | 9,575 |   |   |   | 6.0 | % |
|                                          |   |                 |   |   |                                          |   |   |                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Tier 1 (Core) Capital to average assets       |   |                 | 16,029 |   |                                          |   | 8.0    | %                                                                      |   |   | 8,017 |   |   |   | 4.0 | % |   |   | 10,021 |   |   |   | 5.0 | % |

----

----

----

|                                |   | March 31, 2011 |        |   | December 31, 2010    |   |
|-------------------------------------|--------|----------------|-------------|--------|----------------------|--------|
|                                |   | Amount         |        |   | Percent of Portfolio |   |   | Amount |   |   | Percent of Portfolio |   |
| Noninterest bearing demand deposits |   | $              | 20,741,000  |   |                 |   | 12.5 | % |   | $ | 22,934,000 |   |   |   | 13.4 | % |
| Interest-bearing NOW accounts       |   |           | 11,347,000  |   |                 |   | 6.8 | % |   |   | 11,049,000 |   |   |   | 6.4 | % |
| Savings and money market accounts   |   |           | 69,103,000  |   |                 |   | 41.6 | % |   |   | 69,483,000 |   |   |   | 40.5 | % |
| Certificates of deposit (CDs)       |   |           | 56,254,000  |   |                 |   | 33.9 | % |   |   | 59,625,000 |   |   |   | 34.7 | % |
| Individual Retirement Arrangements  |   |           | 8,547,000   |   |                 |   | 5.2 | % |   |   | 8,548,000 |   |   |   | 5.0 | % |
|    Total Deposits    |   | $              | 165,992,000 |   |                 |   | 100.0 | % |   | $ | 171,639,000 |   |   |   | 100.0 | % |

----

----

----

|                                       |   | Quarter ended  |    |   | Quarter ended  |   |
|--------------------------------------------|--------|----------------|---------|--------|----------------|--------|
|                                       |   | March 31, 2011 |    |   | March 31, 2010 |   |
|                                       |   | Average        |    |   |           |   |   | Average |   |   | Average |   |   |   |   |   | Average |   |
|                                       |   | Balance        |    |   | Interest       |   |   | Rate |   |   | Balance |   |   | Interest |   |   | Rate |   |
| ($ in thousands)                           |   |           |    |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-earning assets:                   |   |           |    |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Federal funds sold and other               |   |           |    |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |
| short term funds                           |   | $              | 8,539   |   |           | $      | 5 |   |   |   | 0.25 | % |   | $ | 15,467 |   |   | $ | 9 |   |   |   | 0.25 | % |
| Securities — taxable                 |   |           | 7,706   |   |           |   | 69 |   |   |   | 3.70 | % |   |   | 5,117 |   |   |   | 58 |   |   |   | 4.83 | % |
| Securities — tax exempt              |   |           | 4,908   |   |           |   | 68 |   |   |   | 5.75 | % |   |   | 4,776 |   |   |   | 64 |   |   |   | 5.64 | % |
| Restricted stock                           |   |           | 966     |   |           |   | 12 |   |   |   | 5.17 | % |   |   | 830 |   |   |   | 10 |   |   |   | 5.06 | % |
| Loans                                      |   |           | 158,324 |   |           |   | 2,054 |   |   |   | 5.26 | % |   |   | 168,188 |   |   |   | 2,132 |   |   |   | 5.14 | % |
| Total interest-earning assets              |   |           | 180,443 |   |           |   | 2,208 |   |   |   | 4.96 | % |   |   | 194,378 |   |   |   | 2,273 |   |   |   | 4.75 | % |
| Noninterest earning assets                 |   |           | 6,264   |   |           |   |   |   |   |   |   |   |   |   | 7,066 |   |   |   |   |   |   |   |   |   |
| Total assets                               |   | $              | 186,707 |   |           |   |   |   |   |   |   |   |   | $ | 201,444 |   |   |   |   |   |   |   |   |   |
|                                       |   |           |    |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing liabilities:              |   |           |    |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Transaction accounts (NOW)                 |   | $              | 10,966  |   |           |   | 11 |   |   |   | 0.41 | % |   | $ | 9,780 |   |   |   | 12 |   |   |   | 0.52 | % |
| Market rate savings accounts               |   |           | 68,610  |   |           |   | 97 |   |   |   | 0.57 | % |   |   | 65,952 |   |   |   | 129 |   |   |   | 0.79 | % |
| Time deposits                              |   |           | 67,548  |   |           |   | 306 |   |   |   | 1.84 | % |   |   | 81,631 |   |   |   | 414 |   |   |   | 2.06 | % |
| Federal Home Loan Bank                     |   |           |    |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| advances and other borrowings              |   |           | 1,947   |   |           |   | 17 |   |   |   | 3.45 | % |   |   | 3,367 |   |   |   | 31 |   |   |   | 3.72 | % |
| Total interest-bearing liabilities         |   |           | 149,071 |   |           |   | 431 |   |   |   | 1.17 | % |   |   | 160,730 |   |   |   | 586 |   |   |   | 1.48 | % |
| Noninterest-bearing liabilities            |   |           | 20,178  |   |           |   |   |   |   |   |   |   |   |   | 21,126 |   |   |   |   |   |   |   |   |   |
| Shareholders' equity                       |   |           | 17,458  |   |           |   |   |   |   |   |   |   |   |   | 19,588 |   |   |   |   |   |   |   |   |   |
| Total liabilities and shareholders' equity |   | $              | 186,707 |   |           |   |   |   |   |   |   |   |   | $ | 201,444 |   |   |   |   |   |   |   |   |   |
|                                       |   |           |    |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net interest income                        |   |           |    |   |           |   | 1,777 |   |   |   |   |   |   |   |   |   |   |   | 1,687 |   |   |   |   |   |
| Tax equivalent adjustment                  |   |           |    |   |           |   | (23 | ) |   |   |   |   |   |   |   |   |   |   | (19 | ) |   |   |   |   |
| Net interest income per                    |   |           |    |   |           | $      | 1,754 |   |   |   |   |   |   |   |   |   |   | $ | 1,668 |   |   |   |   |   |
| financial statements                       |   |           |    |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                       |   |           |    |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net interest margin                        |   |           |    |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| (Net yield on average earning assets)      |   |           |    |   |           |   |   |   |   |   | 3.99 | % |   |   |   |   |   |   |   |   |   |   | 3.52 | % |

----

|                               |   | Three months ended March 31, |   |
|------------------------------------|--------|------------------------------|--------|
|                               |   | 2011 vs. 2010                |   |
|                               |   | Increase (Decrease) due to   |   |
|                               |   | Volume                       |   |   | Rate |   |   | Net |   |
| ($ in thousands)                   |   |                         |   |   |   |   |   |   |   |
| Interest income:                   |   |                         |   |   |   |   |   |   |   |
| Federal funds sold and other       |   |                         |   |   |   |   |   |   |   |
| short term funds                   |   | $                            | (4     | ) |   | $ | (0 | ) |   | $ | (4 | ) |
| Securities - taxable               |   |                         | 27     |   |   |   | (16 | ) |   |   | 11 |   |
| Securities - tax exempt            |   |                         | 2      |   |   |   | 2 |   |   |   | 4 |   |
| Restricted stock                   |   |                         | 2      |   |   |   | 0 |   |   |   | 2 |   |
| Loans                              |   |                         | (140   | ) |   |   | 62 |   |   |   | (78 | ) |
| Total interest-earning assets      |   |                         | (113   | ) |   |   | 48 |   |   |   | (65 | ) |
|                               |   |                         |   |   |   |   |   |   |   |   |   |   |
| Interest expense:                  |   |                         |   |   |   |   |   |   |   |   |   |   |
| Transaction accounts (NOW)         |   |                         | (1     | ) |   |   | 2 |   |   |   | 1 |   |
| Market rate savings accounts       |   |                         | (6     | ) |   |   | 38 |   |   |   | 32 |   |
| Time deposits                      |   |                         | 126    |   |   |   | (18 | ) |   |   | 108 |   |
| Federal Home Loan Bank             |   |                         |   |   |   |   |   |   |   |   |   |   |
| advances and other borrowings      |   |                         | 12     |   |   |   | 2 |   |   |   | 14 |   |
| Total interest-bearing liabilities |   |                         | 131    |   |   |   | 24 |   |   |   | 155 |   |
| Change in net interest income      |   | $                            | 18     |   |   | $ | 72 |   |   | $ | 90 |   |

----

----

|                           |   | Three months ended |   |
|--------------------------------|--------|--------------------|--------|
|                           |   | March 31,          |   |
|                           |   | 2011               |   |   | 2010 |   |
|                           |   |               |   |   |   |   |
| Supplies, printing and postage |   | $                  | 16,000 |   |   | $ | 20,000 |   |
| Travel and entertainment       |   |               | 8,000  |   |   |   | 7,000 |   |
| Insurance                      |   |               | 3,000  |   |   |   | 5,000 |   |
| Loan expenses                  |   |               | 19,000 |   |   |   | 13,000 |   |
| Telephone                      |   |               | 5,000  |   |   |   | 5,000 |   |
| Dues & memberships         |   |               | 7,000  |   |   |   | 8,000 |   |
| Other                          |   |               | 10,000 |   |   |   | 7,000 |   |
|                           |   | $             | 68,000 |   |   | $  | 65,000 |   |

----

----

----

----

| Item 1.  | Legal Proceedings                                           | None           |
|----------|-------------------------------------------------------------|----------------|
|     |                                                        |           |
| Item 1a. | Risk Factors                                                | Not applicable |
|     |                                                        |           |
| Item 2.  | Unregistered Sales of Equity Securities and Use of Proceeds | None           |
|     |                                                        |           |
| Item 3.  | Defaults Upon Senior Securities                             | None           |
|     |                                                        |           |
| Item 4.  | Removed and Reserved                                        |           |
|     |                                                        |           |
| Item 5.  | Other Information                                           | None           |

----

|     Exhibit No.                                             | WESTERN RESERVE BANCORP, INC.FORM 10-QMarch 31, 2011 Description of Exhibits                                                                                                                                                                                                                                                                                  |   |
|---------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                            |                                                                                                                                                                                                                                                                                                                                                               |   |
| 3.1                                                                             | Amended and Restated Articles of Incorporation of Western Reserve Bancorp, Inc.  (incorporated by reference to the Company’s Report on Form 10-QSB filed with the Commission on August 14, 2008)                                                                                                                                                   | *      |
|                                                                            |                                                                                                                                                                                                                                                                                                                                                               |   |
| 3.2                                                                             | Code of Regulations of Western Reserve Bancorp, Inc. (incorporated by reference to the Company’s Report on Form SB-2 filed with the Commission on December 29, 1997)                                                                                                                                                                                         | *      |
|                                                                            |                                                                                                                                                                                                                                                                                                                                                               |   |
| 10.1                                                                            | Employment Agreement of Edward J. McKeon Dated December 15, 2005, as amended November 19, 2009. (incorporated by reference to the Company’s Report on Form 8-K filed with the Commission on December 19, 2005 and the Company’s Report on Form 8-K filed with the Commission on November 25, 2009)                                                     | *      |
|                                                                            |                                                                                                                                                                                                                                                                                                                                                               |   |
| 10.2                                                                            | Lease Agreement by and between Michael Rose DBA Washington Properties and Western Reserve Bancorp, Inc. (incorporated by reference to the Company’s Report on Form 10-KSB filed with the Commission on March 31, 1999)                                                                                                                                       | *      |
|                                                                            |                                                                                                                                                                                                                                                                                                                                                               |   |
| 10.3                                                                            | Western Reserve Bancorp, Inc. 1998 Stock Option Plan, Amended and Restated as of August 21, 2008 (incorporated by reference to the Company’s Report on Form 8-K filed with the Commission on August 26, 2008)                                                                                                                                                | *      |
|                                                                            |                                                                                                                                                                                                                                                                                                                                                               |   |
| 10.4                                                                            | Agreement by and between Western Reserve Bancorp, Inc. and Brian K. Harr, dated June 18, 2001, as amended February 20, 2002 and November 19, 2009 (incorporated by reference to the Company’s Report on Form 10-KSB filed with the Commission on March 28, 2003 and Company’s Report on Form 8-K filed with the Commission on November 25, 2009)       | *      |
|                                                                            |                                                                                                                                                                                                                                                                                                                                                               |   |
| 10.5                                                                            | Agreement by and between Western Reserve Bancorp, Inc. and Cynthia A. Mahl, dated June 18, 2001, as amended February 20, 2002 and November 19, 2009 (incorporated by reference to the Company’s Report on Form 10-KSB filed with the Commission on March 28, 2003 and the Company’s Report on Form 8-K filed with the Commission on November 25, 2009) | *      |
|                                                                            |                                                                                                                                                                                                                                                                                                                                                               |   |
| 10.6                                                                            | Loan Agreement between Western Reserve Bancorp, Inc. and TCF National Bank, dated May 5, 2003 (incorporated by reference to the Company’s Report on Form 10-QSB filed with the Commission on August 14, 2003)                                                                                                                                                | *      |
|                                                                            |                                                                                                                                                                                                                                                                                                                                                               |   |
| 10.7                                                                            | Western Reserve Bank Supplemental Executive Retirement Plan, Amended and restated as if December 21, 2006 (incorporated by reference to the Company’s Report on Form 8-K filed with the Commission on December 27, 2006)                                                                                                                                     | *      |
|                                                                            |                                                                                                                                                                                                                                                                                                                                                               |   |
| 10.8                                                                            | Western Reserve Bancorp, Inc. Employee Stock Purchase Plan (incorporated by reference to the Company’s Form S-8 filed with the Commission on March 23, 2010)                                                                                                                                                                                                 | *      |
|                                                                            |                                                                                                                                                                                                                                                                                                                                                               |   |
| 10.9                                                                            | Lease Agreement by and between Western Reserve of Brecksville, LLC and Western Reserve Bank (incorporated by reference to the Company’s Report on Form 10-KSB filed with the Commission on March 30, 2005)                                                                                                                                                   | *      |
|                                                                            |                                                                                                                                                                                                                                                                                                                                                               |   |
|  *   Previously filed and incorporated herein by reference. |

----

|     Exhibit No.                                       | WESTERN RESERVE BANCORP, INC.FORM 10-QMarch 31, 2011 Description of Exhibits                                                                                                                                                                                              |    |
|---------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------|
|                                                                      |                                                                                                                                                                                                                                                                           |    |
| 10.10                                                                     | First amendment to the Loan Agreement by and between Western Reserve Bancorp, Inc. and TCF National Bank, dated March 31, 2005 (incorporated by reference to the Company’s Report on Form 10-QSB filed with the Commission on May 16, 2005)                              | *       |
|                                                                      |                                                                                                                                                                                                                                                                           |    |
| 10.11                                                                     | Second amendment to the Loan Agreement by and between Western Reserve Bancorp, Inc. and TCF National Bank, dated June 30, 2005 (incorporated by reference to the Company’s Report on Form 10-QSB filed with the Commission on August 15, 2005)                           | *       |
|                                                                      |                                                                                                                                                                                                                                                                           |    |
| 10.12                                                                     | Western Reserve Bancorp, Inc. and Western Reserve Bank Incentive Compensation Plan, Amended and Restated as of May 1, 2008 (incorporated by reference to the Company’s Report on Form 8-K filed with the Commission on May 7, 2008)                                      | *       |
|                                                                      |                                                                                                                                                                                                                                                                           |    |
| 10.13                                                                     | Third amendment to the Loan Agreement by and between Western Reserve Bancorp, Inc. and TCF National Bank, dated July 20, 2006 (incorporated by reference to the Company’s Report on Form 10-QSB filed with the Commission on November 14, 2006)                          | *       |
|                                                                      |                                                                                                                                                                                                                                                                           |    |
| 10.14                                                                     | Fourth Amendment to the Loan Agreement by and between Western Reserve Bancorp, Inc. and TCF National Bank, dated February 6, 2007 (incorporated by reference to the Company’s Report on Form 10-QSB filed with the Commission on August 14, 2007)                        | *       |
|                                                                      |                                                                                                                                                                                                                                                                           |    |
| 10.15                                                                     | Fifth Amendment to the Loan Agreement and Waiver by and between Western Reserve Bancorp, Inc. and TCF National Bank, dated June 21, 2007 (incorporated by reference to the Company’s Report on Form 10-QSB filed with the Commission on August 14, 2007)                 | *  |
|                                                                      |                                                                                                                                                                                                                                                                           |    |
| 10.16                                                                | Sixth Amendment to the Loan Agreement by and between Western Reserve Bancorp, Inc. and TCF National Bank, dated September 28, 2007 (incorporated by reference to the Company’s Report on Form 10-QSB filed with the Commission on November 14, 2007)                     | *       |
|                                                                      |                                                                                                                                                                                                                                                                           |    |
| 10.17                                                                     | Seventh Amendment to the Loan Agreement by and between Western Reserve Bancorp, Inc. and TCF National Bank, dated July 1, 2008 (incorporated by reference to the Company’s Report on Form 10-Q filed with the Commission on November 14, 2008)                           | *       |
|                                                                      |                                                                                                                                                                                                                                                                           |    |
| 10.18                                                                     | Form of Amendment to the Western Reserve Bancorp, Inc. Stock Option Grant Agreement as of October 16, 2008 (incorporated by reference to the Company’s Report on Form 8-K filed with the Commission on October 22, 2008)                                                 | *       |
|                                                                      |                                                                                                                                                                                                                                                                           |    |
| 10.19                                                                     | Eighth Amendment to the Loan Agreement by and between Western Reserve Bancorp, Inc. and TCF National Bank, dated July 1, 2009 (incorporated by reference to the Company’s Report on Form 10-Q filed with the Commission on August 14, 2009)                              | *       |
|                                                                      |                                                                                                                                                                                                                                                                           |    |
| 10.20                                                                     | Ninth Amendment to the Loan Agreement and Waiver by and between Western Reserve Bancorp, Inc. and TCF National Bank, dated  September 17, 2010 (incorporated by reference to the Company’s Report on Form 10-Q filed with the Commission on November 15, 2010) | *       |
|                                                                      |                                                                                                                                                                                                                                                                           |    |
| 10.21                                                                     | Tenth  Amendment to the Loan Agreement and Waiver by and between Western Reserve Bancorp, Inc. and TCF National Bank, dated March 31, 2011                                                                                                                           |    |
|                                                                      |                                                                                                                                                                                                                                                                           |    |
| 11                                                                        | Statement re: Computation of Per Share Earnings (incorporated by reference to the Company’s Report on Form 10-Q filed with the Commission on May 16, 2011)                                                                                                               | *       |
|                                                                      |                                                                                                                                                                                                                                                                           |    |
| *   Previously filed and incorporated herein by reference. |

----

|     Exhibit No.                                       | WESTERN RESERVE BANCORP, INC.FORM 10-QMarch 31, 2011 Description of Exhibits                                                                                                      |   |
|---------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                      |                                                                                                                                                                                   |   |
| 14                                                                        | Western Reserve Bancorp, Inc. Code of Ethics and Business Conduct (incorporated by reference to the Company’s Report on Form 10-KSB filed with the Commission on March 30, 2004) |   |
|                                                                      |                                                                                                                                                                                   |   |
| 31.1                                                                      | Certification under Section 302 of the Sarbanes-Oxley Act by Edward J. McKeon, President and Chief Executive Officer                                                                   |   |
|                                                                      |                                                                                                                                                                                   |   |
| 31.2                                                                      | Certification under Section 302 of the Sarbanes-Oxley Act by Cynthia A. Mahl, Executive Vice President and Chief Financial Officer                                                     |   |
|                                                                      |                                                                                                                                                                                   |   |
| 32.1                                                                      | Certification under Section 906 of the Sarbanes-Oxley Act by Edward J. McKeon, President and Chief Executive Officer                                                                   |   |
|                                                                      |                                                                                                                                                                                   |   |
| 32.2                                                                      | Certification under Section 906 of the Sarbanes-Oxley Act by Cynthia A. Mahl, Executive Vice President and Chief Financial Officer                                                     |   |
|                                                                      |                                                                                                                                                                                   |   |
| *   Previously filed and incorporated herein by reference. |

----

|               | Western Reserve Bancorp, Inc.                                                               |
|--------------------|---------------------------------------------------------------------------------------------|
|               |                                                                                        |   |
|               |                                                                                        |   |
|               |                                                                                        |   |
| Date: May 16, 2011 | By:      /s/ Edward J. McKeon                                 |
|               |                                                                                        | Edward J. McKeon |
|               |                                                                                        | President and Chief Executive Officer |
|               |                                                                                        | (Principal Executive Officer) |
|               |                                                                                        |   |
|               |                                                                                        |   |
|               |                                                                                        |   |
|               |             /s/ Cynthia A. Mahl |
|               |                                                                                        | Cynthia A. Mahl |
|               |                                                                                        | Executive Vice President/Chief Financial |
|               |                                                                                        | Officer |
|               |                                                                                        | (Principal Financial Officer) |