##### Table of Contents



UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
 Washington, D.C. 20549
 FORM 10-QSB
 þ
    
    Quarterly report under Section 13 or 15(d) of the Securities Exchange Act of 1934
 For the quarter ended March 31, 2007
 o
    
    Transition Report Under Section 13 or 15(d) of the Exchange Act
 Commission file number 000-51264
 WESTERN RESERVE BANCORP, INC.
  Ohio
    
    31-1566623(State or other jurisdiction of 
incorporation or organization)
    
    (IRS Employer
Identification No.)
 4015 Medina Road, Suite 100, P.O. Box 585, Medina, Ohio 44256
  (330) 764-3131
  þ o
 o þ
  Common Stock, no par value, $1.00 stated value
 575,502 common shares
  o þ




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##### 



WESTERN RESERVE BANCORP, INC.
FORM 10-QSB
Quarter ended March 31, 2007
 PagePART IFinancial InformationITEM 1
    
    FINANCIAL STATEMENTSConsolidated Balance Sheets as of March 31, 2007
and December 31, 2006
    
    
    3Consolidated Statements of Income for the three months ended
March 31, 2007 and 2006
    
    
    4Consolidated Statements of Comprehensive Income for the
three months ended March 31, 2007 and 2006
    
    
    5Consolidated Statements of Cash Flows for the three months
ended March 31, 2007 and 2006
    
    
    6Notes to Consolidated Financial Statements
    
    
    7ITEM 2
    
    MANAGEMENTS DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
    
    
    14ITEM 3
    
    CONTROLS AND PROCEDURES
    
    
    27PART IIOther Information
    
    
    28SIGNATURES
    
    
    31EX-4EX-31.1EX-31.2EX-32.1EX-32.2
  Page 2




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##### Table of Contents



(Unaudited)Mar. 31,
    
    
    Dec. 31,2007
    
    
    2006AssetsCash and due from financial institutions
    
    $
    1,846,007
    
    
    $
    2,923,863Federal funds sold and other short-term funds

    
    
    15,272,387
    
    
    
    15,172,614Cash and cash equivalents
    
    
    17,118,394
    
    
    
    18,096,477Interest-bearing deposits in other banks
    
    
    
    
    
    
    2,200,000Securities available for sale
    
    
    10,825,272
    
    
    
    10,964,783Restricted stock
    
    
    568,800
    
    
    
    568,800Loans
    
    
    115,794,469
    
    
    
    110,149,244Allowance for loan losses
    
    
    (1,626,316
    )
    
    
    (1,588,217
    )Loans, net
    
    
    114,168,153
    
    
    
    108,561,027Premises and equipment, net
    
    
    1,299,880
    
    
    
    1,237,761Bank owned life insurance
    
    
    1,104,278
    
    
    
    1,092,473Foreclosed assets
    
    
    265,000
    
    
    
    265,000Accrued interest receivable and other assets
    
    
    1,219,773
    
    
    
    1,129,092Total Assets
    
    $
    146,569,550
    
    
    $
    144,115,413Liabilities and Shareholders EquityDepositsNoninterest-bearing
    
    $
    14,256,950
    
    
    $
    16,115,340Interest-bearing
    
    
    115,330,206
    
    
    
    111,143,783Total deposits
    
    
    129,587,156
    
    
    
    127,259,123Federal Home Loan Bank advances
    
    
    3,500,000
    
    
    
    3,500,000Accrued interest payable and other liabilities
    
    
    335,537
    
    
    
    424,897Total Liabilities
    
    
    133,422,693
    
    
    
    131,184,020Shareholders EquityCommon stock, without par value, $1 stated value:750,000 shares authorized; 573,502 and
573,277 shares issued and outstanding as of
March 31, 2007 and December 31, 2006
    
    
    573,502
    
    
    
    573,277Additional paid-in capital
    
    
    9,580,081
    
    
    
    9,572,861Retained earnings
    
    
    2,990,648
    
    
    
    2,770,693Accumulated other comprehensive income
    
    
    2,626
    
    
    
    14,562Total Shareholders Equity
    
    
    13,146,857
    
    
    
    12,931,393Total Liabilities and Shareholders Equity
    
    $
    146,569,550
    
    
    $
    144,115,413
  Page 3




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Three months ended March 31,2007
    
    
    2006Interest and dividend incomeLoans, including fees
    
    $
    2,225,539
    
    
    $
    2,123,273Securities:Taxable
    
    
    82,592
    
    
    
    70,214Tax exempt
    
    
    43,031
    
    
    
    5,237Dividends on restricted stock
    
    
    8,390
    
    
    
    7,711Federal funds sold and other
short-term funds
    
    
    194,176
    
    
    
    59,3492,553,728
    
    
    
    2,265,784Interest expenseDeposits
    
    
    1,203,141
    
    
    
    884,803Borrowings
    
    
    31,303
    
    
    
    31,3031,234,444
    
    
    
    916,106Net interest income
    
    
    1,319,284
    
    
    
    1,349,678Provision (credit) for loan losses
    
    
    (4,600
    )
    
    
    (130,600
    )Net interest income after
provision for loan losses
    
    
    1,323,884
    
    
    
    1,480,278Noninterest incomeService charges on deposit accounts
    
    
    35,154
    
    
    
    42,230Net gains on sales of loans
    
    
    13,453
    
    
    
    Other
    
    
    36,690
    
    
    
    39,21985,297
    
    
    
    81,449Noninterest expenseSalaries and employee benefits
    
    
    532,345
    
    
    
    536,214Premises and equipment, net
    
    
    215,024
    
    
    
    200,157Marketing and advertising
    
    
    27,638
    
    
    
    21,005Data processing
    
    
    86,493
    
    
    
    82,928Professional fees
    
    
    86,959
    
    
    
    73,055Taxes other than income and payroll
    
    
    36,128
    
    
    
    32,446Community and shareholder relations
and contributions
    
    
    22,414
    
    
    
    26,802Supplies, printing and postage
    
    
    18,808
    
    
    
    18,512Other
    
    
    73,151
    
    
    
    58,4691,098,960
    
    
    
    1,049,588Income before income taxes
    
    
    310,221
    
    
    
    512,139Income tax expense
    
    
    90,267
    
    
    
    172,601Net income
    
    $
    219,954
    
    
    $
    339,538Average shares outstanding (basic)
    
    
    573,280
    
    
    
    571,666Average shares outstanding (diluted)
    
    
    602,676
    
    
    
    592,531Basic earnings per share
    
    $
    0.38
    
    
    $
    0.59Diluted earnings per share
    
    $
    0.36
    
    
    $
    0.57
  Page 4




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Three months ended March 31,2007
    
    
    2006Net income
    
    $
    219,954
    
    
    $
    339,538Other comprehensive income (loss), net of tax:Unrealized gains/(losses) on
securities arising during the period
    
    
    (11,936
    )
    
    
    (8,573
    )Comprehensive income
    
    $
    208,018
    
    
    $
    330,965
  Page 5




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Three months ended March 31,2007
    
    
    2006Cash flows from operating activitiesNet income
    
    $
    219,954
    
    
    $
    339,538Adjustments to reconcile net income
to net cash from operating activities:Provision (credit) for loan losses
    
    
    (4,600
    )
    
    
    (130,600
    )Depreciation
    
    
    46,407
    
    
    
    42,550Net amortization (accretion) of securities
    
    
    (3,945
    )
    
    
    (52,431
    )Stock-based compensation
    
    
    364
    
    
    
    733Loans originated for sale
    
    
    (518,000
    )
    
    
    Proceeds from sales of loan originations
    
    
    531,453
    
    
    
    Gains on sales of loans
    
    
    (13,453
    )
    
    
    Federal Home Loan Bank stock dividends
    
    
    
    
    
    
    (4,100
    )Increase in cash surrender value of life insurance
    
    
    (11,805
    )
    
    
    (5,685
    )Net change in other assets and other liabilities
    
    
    (173,890
    )
    
    
    1,575Net cash from operating activities
    
    
    72,485
    
    
    
    191,580Cash flows from investing activitiesAvailable for sale securities:Maturities, repayments and calls
    
    
    125,369
    
    
    
    43,125Net decrease in interest-bearing deposits in other banks
    
    
    2,200,000
    
    
    
    Net (increase) decrease in loans
    
    
    (5,602,526
    )
    
    
    (1,860,383
    )Purchases of premises and equipment
    
    
    (108,526
    )
    
    
    (6,710
    )Net cash from investing activities
    
    
    (3,385,683
    )
    
    
    (1,823,968
    )Cash flows from financing activitiesNet increase in deposits
    
    
    2,328,033
    
    
    
    1,552,898Proceeds from issuance of common stock
under Employee Stock Purchase Plan
    
    
    7,082
    
    
    
    5,931Net cash from financing activities
    
    
    2,335,115
    
    
    
    1,558,829Change in cash and cash equivalents
    
    
    (978,083
    )
    
    
    (73,559
    )Cash and cash equivalents at beginning of period
    
    
    18,096,477
    
    
    
    7,343,006Cash and cash equivalents at end of period
    
    $
    17,118,394
    
    
    $
    7,269,447Supplemental cash flow information:Interest paid
    
    $
    1,273,819
    
    
    $
    979,256Income taxes paid
    
    
    50,000
    
    
    
    50,000
  Page 6




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WESTERN RESERVE BANCORP, INC.
NOTES TO FINANCIAL STATEMENTS
March 31, 2007
 NOTE 1  ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
        Page 7




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WESTERN RESERVE BANCORP, INC.
NOTES TO FINANCIAL STATEMENTS
March 31, 2007
 NOTE 1  ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
   Three months ended March 31,2007
    
    
    2006Numerator:Net income
    
    $
    219,954
    
    
    $
    339,538Denominator:Denominator for basic
earnings per shareweighted average shares
    
    
    573,280
    
    
    
    571,666Effect of dilutive securities:Nonqualified stock options
    
    
    29,396
    
    
    
    20,865Denominator for diluted
earnings per share
    
    
    602,676
    
    
    
    592,531Basic earnings per share
    
    $
    0.38
    
    
    $
    0.59Diluted earnings per share
    
    $
    0.36
    
    
    $
    0.57
  Page 8




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WESTERN RESERVE BANCORP, INC.
NOTES TO FINANCIAL STATEMENTS
March 31, 2007
 NOTE 1  ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
   Accounting
for Uncertainty in Income Taxes
 Accounting
for Deferred Compensation and Postretirement Benefit Aspects of Endorsement Split-Dollar Life
Insurance Arrangement. Employers Accounting
for Postretirement Benefits Other Than Pensions.
 Fair Value Measurements.
 Page 9




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WESTERN RESERVE BANCORP, INC.
NOTES TO FINANCIAL STATEMENTS
March 31, 2007
 NOTE 1  ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
  The Fair Value Option for Financial Assets and
Financial Liabilities.
 NOTE 2  LOANS
  March 31,
    
    
    December 31,2007
    
    
    2006Commercial real estate
    
    $
    68,386,743
    
    
    $
    66,570,136Commercial business
    
    
    32,384,621
    
    
    
    28,987,234Commercial construction
    
    
    1,753,185
    
    
    
    2,214,763Home equity lines of credit
    
    
    7,383,175
    
    
    
    7,860,647Residential mortgage
and construction
    
    
    858,908
    
    
    
    1,226,016Consumer installment
    
    
    4,999,195
    
    
    
    3,261,615Other
    
    
    28,642
    
    
    
    28,833$
    115,794,469
    
    
    $
    110,149,244
 Page 10




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##### Table of Contents



WESTERN RESERVE BANCORP, INC.
NOTES TO FINANCIAL STATEMENTS
March 31, 2007
 NOTE 2  LOANS
  Three months ended March 31,2007
    
    
    2006Beginning balance
    
    $
    1,588,217
    
    
    $
    1,541,654Loans charged off
    
    
    
    
    
    
    Recoveries
    
    
    42,699
    
    
    
    195,000Provision (credit)
for loan losses
    
    
    (4,600
    )
    
    
    (130,600
    )Ending balance
    
    $
    1,626,316
    
    
    $
    1,606,054
  NOTE 3  DEPOSITS
  March 31,
    
    
    December 31,2007
    
    
    2006Noninterest-bearing demand
    
    $
    14,256,950
    
    
    $
    16,115,340Interest-bearing demand
    
    
    6,226,294
    
    
    
    7,859,550Market Rate Savings
    
    
    66,632,302
    
    
    
    58,528,182Time under $100,000
    
    
    25,581,893
    
    
    
    26,049,710Time $100,000 and over
    
    
    16,889,717
    
    
    
    18,706,341$
    129,587,156
    
    
    $
    127,259,123
  Page 11




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WESTERN RESERVE BANCORP, INC.
NOTES TO FINANCIAL STATEMENTS
March 31, 2007
 NOTE 4FEDERAL HOME LOAN BANK ADVANCES AND OTHER BORROWINGS
  March 31,
    
    
    December 31,2007
    
    
    2006Maturing March 2009, fixed rate advance at 3.25%
    
    $
    2,500,000
    
    
    $
    2,500,000Maturing April 2010, fixed rate advance at 4.57%
    
    
    1,000,000
    
    
    
    1,000,000$
    3,500,000
    
    
    $
    3,500,000
     Page 12




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WESTERN RESERVE BANCORP, INC.
NOTES TO FINANCIAL STATEMENTS
March 31, 2007
 NOTE 5  STOCK COMPENSATION PLAN
  Three months ended
    
    Three months endedMarch 31, 2007
    
    March 31, 2006Weighted Average
    
    
    
    
    
    Weighted AverageShares
    
    Exercise Price
    
    Shares
    
    Exercise PriceOptions outstanding, beginning of
period
    
    
    113,136
    
    
    $
    18.53
    
    
    
    114,140
    
    
    $
    18.52Forfeited
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Exercised
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Granted
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Options outstanding, end of period
    
    
    113,136
    
    
    $
    18.53
    
    
    
    114,140
    
    
    $
    18.52Options exercisable, end of period
    
    
    112,277
    
    
    $
    18.48
    
    
    
    112,578
    
    
    $
    18.46
  Page 13




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WESTERN RESERVE BANCORP, INC.
MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
March 31, 2007
 OVERVIEW
   FINANCIAL CONDITION
 Assets
    Page 14




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WESTERN RESERVE BANCORP, INC  MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
March 31, 2007
 FINANCIAL CONDITION
       Page 15




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WESTERN RESERVE BANCORP, INC.
MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
March 31, 2007
 FINANCIAL CONDITION
 Liabilities
     Shareholders Equity
  Page 16




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WESTERN RESERVE BANCORP, INC.
MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
March 31, 2007
 RESULTS OF OPERATIONS  FOR THE THREE MONTHS ENDED MARCH 31, 2007
 Overview
  Net Interest Income
   Page 17




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WESTERN RESERVE BANCORP, INC.
MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
March 31, 2007
 RESULTS OF OPERATIONS  FOR THE THREE MONTHS ENDED MARCH 31, 2007
  Three months ended March 31,($ in thousands)
    
    
    
    
    
    2007
    
    
    
    
    
    
    
    
    
    
    2006Average
    
    
    Income/
    
    
    Yield/
    
    
    Average
    
    
    Income/
    
    
    Yield/Balance
    
    
    Expense
    
    
    Cost
    
    
    Balance
    
    
    Expense
    
    
    CostLoans
    
    $
    112,694
    
    
    $
    2,225
    
    
    
    8.01
    %
    
    $
    111,492
    
    
    $
    2,123
    
    
    
    7.72
    %Investment securities-taxable
    
    
    6,428
    
    
    
    83
    
    
    
    5.21
    %
    
    
    6,707
    
    
    
    71
    
    
    
    4.25
    %Investment securities-tax exempt
    
    
    4,460
    
    
    
    60
    
    
    
    5.45
    %
    
    
    633
    
    
    
    7
    
    
    
    4.49
    %Restricted stock
    
    
    569
    
    
    
    8
    
    
    
    5.98
    %
    
    
    537
    
    
    
    8
    
    
    
    5.82
    %Federal funds sold and other
short-term funds
    
    
    14,968
    
    
    
    194
    
    
    
    5.27
    %
    
    
    5,463
    
    
    
    59
    
    
    
    4.45
    %Total interest earning assets
    
    
    139,119
    
    
    
    2,570
    
    
    
    7.49
    %
    
    
    124,832
    
    
    
    2,268
    
    
    
    7.37
    %Noninterest earning assets
    
    
    4,581
    
    
    
    
    
    
    
    
    
    
    
    3,570Total Assets
    
    $
    143,700
    
    
    
    
    
    
    
    
    
    
    $
    128,402Interest-bearing transaction
accounts
    
    $
    6,573
    
    
    
    16
    
    
    
    1.00
    %
    
    $
    6,721
    
    
    
    16
    
    
    
    1.00
    %Market rate savings
    
    
    62,988
    
    
    
    725
    
    
    
    4.67
    %
    
    
    46,871
    
    
    
    437
    
    
    
    3.78
    %Certificate of deposit and IRAs
    
    
    42,445
    
    
    
    462
    
    
    
    4.41
    %
    
    
    46,033
    
    
    
    432
    
    
    
    3.80
    %Borrowings
    
    
    3,500
    
    
    
    31
    
    
    
    3.63
    %
    
    
    3,500
    
    
    
    31
    
    
    
    3.63
    %Total interest bearing liabilities
    
    
    115,506
    
    
    
    1,234
    
    
    
    4.33
    %
    
    
    103,125
    
    
    
    916
    
    
    
    3.60
    %Noninterest bearing liabilities
    
    
    15,202
    
    
    
    
    
    
    
    
    
    
    
    13,508Shareholders equity
    
    
    12,992
    
    
    
    
    
    
    
    
    
    
    
    11,769Total Liabilities and
Shareholders Equity
    
    $
    143,700
    
    
    
    
    
    
    
    
    
    
    $
    128,402Net interest income
    
    
    
    
    
    
    1,336
    
    
    
    
    
    
    
    
    
    
    
    1,352Tax equivalent adjustment
    
    
    
    
    
    
    (17
    )
    
    
    
    
    
    
    
    
    
    
    (2
    )Net interest income per financial
statements
    
    
    
    
    
    $
    1,319
    
    
    
    
    
    
    
    
    
    
    $
    1,350Net yield on average earning assets
    
    
    
    
    
    
    
    
    
    
    3.90
    %
    
    
    
    
    
    
    
    
    
    
    4.39
    %
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WESTERN RESERVE BANCORP, INC.
MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
March 31, 2007
 RESULTS OF OPERATIONS  FOR THE THREE MONTHS ENDED MARCH 31, 2007
   Three months endedMarch 31, 2007 vs. 2006Increase (Decrease) inNet Interest Income Due to($ in thousands)
    
    Volume
    
    
    Rate
    
    
    NetInterest income:Loans
    
    $
    5
    
    
    $
    97
    
    
    $
    102Investment securities-taxable
    
    
    (3
    )
    
    
    15
    
    
    
    12Investment securities-tax exempt
    
    
    51
    
    
    
    2
    
    
    
    53Restricted stock
    
    
    
    
    
    
    
    
    
    
    Federal funds sold and other short-term funds
    
    
    121
    
    
    
    14
    
    
    
    135Total interest-earning assets
    
    
    174
    
    
    
    128
    
    
    
    302Interest expense:Interest-bearing transaction accounts
    
    
    
    
    
    
    
    
    
    
    Market rate savings accounts
    
    
    (171
    )
    
    
    (117
    )
    
    
    (288
    )Certificates of deposit and IRAs
    
    
    35
    
    
    
    (65
    )
    
    
    (30
    )Borrowings
    
    
    
    
    
    
    
    
    
    
    Total interest-bearing liabilities
    
    
    (136
    )
    
    
    (182
    )
    
    
    (318
    )Change in net interest income
    
    $
    38
    
    
    $
    (54
    )
    
    $
    (16
    )
 Interest Income
   Page 19




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WESTERN RESERVE BANCORP, INC.
MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
March 31, 2007
 RESULTS
OF OPERATIONS  FOR THE THREE MONTHS ENDED MARCH 31, 2007
 Interest Expense
   Net Interest Margin
    Page 20




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WESTERN RESERVE BANCORP, INC.
MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
March 31, 2007
 RESULTS OF OPERATIONS  FOR THE THREE MONTHS ENDED MARCH 31, 2007
 Provision for Loan Losses
     Noninterest Income
  Page 21




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WESTERN RESERVE BANCORP, INC.
MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
March 31, 2007
 (continued)
    Noninterest Expenses
   Three months endedMarch 31,2007
    
    
    2006Loan expenses
    
    $
    28,000
    
    
    $
    12,000Insurance
    
    
    20,000
    
    
    
    12,000Travel and entertainment
    
    
    10,000
    
    
    
    12,000Telephone
    
    
    6,000
    
    
    
    6,000Other
    
    
    9,000
    
    
    
    16,000$
    73,000
    
    
    $
    58,000
 Page 22




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##### Table of Contents



WESTERN RESERVE BANCORP, INC.
MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONSMarch 31, 2007
 RESULTS OF OPERATIONS  FOR THE THREE MONTHS ENDED MARCH 31, 2007
   LIQUIDITY AND CAPITAL RESOURCES
      Page 23




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WESTERN RESERVE BANCORP, INC.
MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONSMarch 31, 2007
 LIQUIDITY AND CAPITAL RESOURCES
  Minimum to be
    
    Minimum requiredWestern Reserve Bank
    
    considered
    
    for capitalMarch 31, 2007
    
    December 31, 2006
    
    well-capitalized
    
    adequacy purposesTier 1 core capital to
risk-weighted assets
    
    
    8.8
    %
    
    
    9.0
    %
    
    
    6.0
    %
    
    
    4.0
    %Total capital to
risk-weighted assets
    
    
    10.8
    %
    
    
    11.3
    %
    
    
    10.0
    %
    
    
    8.0
    %Tier 1 leverage ratio
    
    
    7.6
    %
    
    
    7.5
    %
    
    
    5.0
    %
    
    
    4.0
    %
    Page 24




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##### Table of Contents



WESTERN RESERVE BANCORP, INC.
MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONSMarch 31, 2007
 INTEREST RATE SENSITIVITY
     Page 25




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##### Table of Contents



WESTERN RESERVE BANCORP, INC.
MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONSMarch 31, 2007
 CRITICAL ACCOUNTING POLICIES
  Page 26




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##### Table of Contents



WESTERN RESERVE BANCORP, INC.
CONTROLS AND PROCEDURESMarch 31, 2007
   Page 27




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##### Table of Contents



WESTERN RESERVE BANCORP, INC.
FORM 10-QSBMarch 31, 2007
 
 PART IIOTHER INFORMATION
        WESTERN RESERVE BANCORP, INC.
FORM 10-QSB
March 31, 2007
 Exhibit No.
    
    Description of Exhibits3.1
    
    Articles of Incorporation 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)
    
    *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)
    
    *4
    
    Legend Placed on Certificates Representing Shares Issued
pursuant to an exemption from registration under Section
3(a)(11) of the Securities Act and Rule 147 thereunder10.1
    
    Employment Agreement of Edward J. McKeon, Dated December
15, 2005. (incorporated by reference to the Companys
Report on Form 8-K filed with the Commission on December
19, 2005)
    
    *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 April 20, 2000 (incorporated
by reference to the Companys Report on Form 10-QSB filed
with the Commission on August 13, 2000)
    
    *
 
 *
    
    Previously filed and incorporated herein by reference. Page 28




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##### Table of Contents



WESTERN RESERVE BANCORP, INC.
FORM 10-QSB
March 31, 2007
 Exhibit No.
    
    Description of Exhibits10.4
    
    Agreement by and between
Western Reserve Bancorp,
Inc. and Brian K. Harr,
dated June 18, 2001, as
amended February 20, 2002
(incorporated by reference
to the Companys Report on
Form 10-KSB filed with the
Commission on March 28,
2003)
    
    *10.5
    
    Agreement by and between
Western Reserve Bancorp,
Inc. and Cynthia A. Mahl,
dated June 18, 2001, as
amended February 20, 2002
(incorporated by reference
to the Companys Report on
Form 10-KSB filed with the
Commission on March 28,
2003)
    
    *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, dated May
15, 2003 (incorporated by
reference to the Companys
Report on Form 10-QSB filed
with the Commission on
August 14, 2003)
    
    *10.8
    
    Western Reserve Bancorp,
Inc. Employee Stock Purchase
Plan (incorporated by
reference to the Companys
Report on Form 10-QSB filed
with the Commission on
November 14, 2003)
    
    *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)
    
    *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 January 18, 2007
(incorporated by reference
to the Companys Report on
Form 10-KSB filed with the
Commission on March 29,
2007)
    
    *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)
    
    *11
    
    Statement re: Computation of
Per Share Earnings
(incorporated by reference
to Note 1 of this Form
10-QSB)
    
    *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 Officer31.2
    
    Certification under Section
302 of the Sarbanes-Oxley
Act by Cynthia A. Mahl,
Senior Vice President and
Chief Financial Officer
 
 *
    
    Previously filed and incorporated herein by reference. Page 29




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##### Table of Contents



WESTERN RESERVE BANCORP, INC.
FORM 10-QSB
March 31, 2007
 Exhibit No.
    
    Description of Exhibits32.1
    
    Certification under Section 906 of the
Sarbanes-Oxley Act by Edward J. McKeon,
President and Chief Executive Officer32.2
    
    Certification under Section 906 of the
Sarbanes-Oxley Act by Cynthia A. Mahl,
Senior Vice President and Chief Financial
Officer
 
 *
    
    Previously filed and incorporated herein by reference. Page 30




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##### Table of Contents



WESTERN RESERVE BANCORP, INC.
FORM 10-QSB
Quarter ended March 31, 2007
 
 SIGNATURES
  Western Reserve Bancorp, Inc.Date: May 14, 2007
    By:
    /s/ Edward J. McKeonEdward J. McKeonPresident and Chief Executive
Officer
(Principal Executive Officer)/s/ Cynthia A. MahlCynthia A. MahlSenior Vice President/Chief Financial Officer
(Principal Financial Officer) Page 31