We believe that inreaction to that changed perception Congress and the Treasury

We believe that inreaction to that changed perception, Congress and the Treasury havefundamentally altered the burdens under the Capital Purchase Program,imposing greater operating restrictions, increased reporting burdens and,more importantly, putting the Bank and its employees on the defensive inresponding to public inquiry. Accordingly, the Board and management havedetermined that repayment of the TARP funding should be undertaken at theearliest prudent opportunity.”Given the strong and growing balance sheet, it might appear incongruousto reduce the shareholder dividend. The Board and management struggledwith the decision to reduce the dividend but believe that the resulting$1.8 million addition to bank capital is in the best long-term interestsof all shareholders.”First, as implied above, the Bank has already relied upon the $15 millionof TARP funding to increase loans to our local community. Thus, while wecould repay the full amount of the TARP funding immediately and stillremain ‘well capitalized’ as defined by federal and state bank regulators,we would be only just so without much leeway for any unexpected investmentor loan loss.

Additionally, an immediate repayment would require a sharpcurtailment in all lending. Given the improved opportunity for profitablelending and this rare opportunity for profitable market share growth, anyadditional curtailment would be disruptive to our customers andshort-sighted from the perspective of our shareholders.”Second, events totally beyond our control have combined to dramaticallyincrease the expenses of all banks across the country and reduce theincome of most banks in New England. For all of 2008, RiverBank recorded a$60,000 expense for FDIC premiums In 2009, we project that expense to be$1.4 million. Likewise, in 2008, RiverBank recorded a dividend on itsFederal Home Loan Bank of Boston (‘FHLBB’) stock of $428,000.

The FHLBBhas suspended all dividends indefinitely and certainly for all of 2009.”The combination of increased FDIC premiums and suspension of the FHLBBdividend results in an almost $2 million swing in earnings from 2008 to2009. Maintenance of our previous dividend of $0.15 per share would haveresulted in a payout ratio this quarter of 83%. The Bankoffers a range of commercial and consumer loan and deposit products and isheadquartered at 30 Massachusetts Avenue, North Andover, Massachusetts,approximately 25 miles north of Boston. River Bank operates 5 full-servicebanking offices in Massachusetts in Andover, Lawrence, Methuen (2) andNorth Andover and 2 full-service banking offices in New Hampshire in Derryand Salem.The reader is cautioned that this press release may contain certainstatements that are “forward-looking statements” within the meaning ofSection 27A of the Securities Act of 1933 and Section 21E of theSecurities Exchange Act of 1934, as amended.

Such forward-lookingstatements are expressions of management’s expectations as of the date ofthis press release regarding future events or trends and which do notrelate to historical matters. Such expectations may or may not berealized, depending on a number of variable factors, including but notlimited to, changes in interest rates, changes in real estate valuations,general economic conditions (either nationally or regionally), regulatoryconsiderations and competition. For more information about these factors,please see our recent Annual Report on Form 10-K and Quarterly Report onForm 10-Q on file with the SEC, including the sections entitled “RiskFactors” and “Management’s Discussion and Analysis of Financial Conditionand Results of Operations.” As a result of such risk factors anduncertainties, the Company’s actual results may differ materially fromsuch forward-looking statements. The Company does not undertake andspecifically disclaims any obligation to publicly release updates orrevisions to any such forward-looking statements as a result of newinformation, future events or otherwise.LSB CorporationSelect Financial Data (unaudited) Three months ended———————————————–(For the periods ending)March 31, 2009 Dec. 31, 2008 March 31, 2008————– ————- ————–Performance ratios (annualized):Efficiency ratio71.38%63.08% 64.39%Return on average assets 0.51% 1.96%0.57%Return on average stockholders equity 5.45%26.08%6.03%Return on average common stockholders’ equity5.70%27.69%6.03%Net interest margin2.48% 2.39%2.52%Interest rate spread (int.

bearing only) 2.14% 2.09%2.06%Dividends paid per common share during period $ 0.15 $0.15$0.14 ——– —————-(At) March 31,Dec. MulliganPresident & CEO(978) 725-7555Copyright 2009, Market Wire, All rights reserved.-0-. I find that no matter how well I’m doing in my fantasy baseball league, there’s always something to gripe about The game sets you up to feel beat down constantly No category lead ever seems large enough. No twist of fate is ever cruel enough.The little things that just don’t go your way seem to outweigh the things that do, even when the good results outnumber the bad.Here, then, are some of the game’s little annoyances that seem to pop up over and over. (Note: This was written from the perspective of a 12-team, 5×5, head-to-head league with daily transactions.)A real team puts up big numbers, but your players don’t show up for the party.Wow, the Phillies scored 20 runs! I can’t wait to see the damage Burrell did! Or…maybe not This happened to me three times over the past week The Phillies beat Colorado 20-5 and Washington 12-2 The Tigers (cliche warning) mauled Minnesota 19-3. In those three games, Pat Burrell and Carlos Guillen went a combined 1-for-11 with 1 RBI Way to pitch in guys.