IBCA (MM)

Intervest Bancshares Corporation (NASDAQ-GS: IBCA) (the "Company") today reported net earnings for the first quarter of 2009 ("Q1-09") of $0.5 million, or $0.06 per diluted common share, compared to $2.3 million, or $0.28 per share, for the first quarter of 2008 ("Q1-08").

Net earnings for Q1-09 as compared to Q1-08 decreased by $1.8 million due to the following: a $2.4 million increase in noninterest expenses, a $0.8 million decrease in noninterest income, and a $0.4 million increase in preferred stock dividend requirements. The aggregate of these items was partially offset by a $1.0 million decrease in the provision for income tax expense, a $0.4 million increase in net interest and dividend income and a $0.4 million decrease in the provision for loan losses.

Net interest and dividend income increased to $9.3 million in Q1-09 from $8.9 million in Q1-08, primarily reflecting growth in the Company's net interest earning assets. The Company's net interest margin (excluding prepayment income) was 1.67% in Q1-09, compared to 1.71% in Q1-08 as lower deposit and borrowing costs were offset primarily by calls of higher yielding U.S. government agency security investments (coupled with the reinvestment of those proceeds into the same types of securities with lower market rates) as well as the repayment of higher yielding loans (coupled with the origination of new fixed-rate loans with lower yields). The yield on interest-earning assets decreased to 5.51% in Q1-09 from 6.16% in Q1-08, while the Company's cost of funds decreased to 4.29% in Q1-09 from 4.94% in Q1-08. The provision for loan losses decreased to $1.9 million in Q1-09 from $2.3 million in Q1-08 due to a lower level of net loan growth as compared to the prior year period, partially offset by a larger provision for nonaccrual loans. Noninterest expenses increased to $5.9 million in Q1-09 from $3.5 million in Q1-08 primarily due to $1.0 million of expense from the early retirement of $26 million of higher cost (6.75%) debentures, a $0.6 million increase in expenses associated with nonperforming assets and a $0.4 million increase in FDIC insurance premiums due to higher rates imposed on all banks. Noninterest income decreased to $0.1 million in Q1-09 from $0.9 million in Q1-08 due to a $0.3 million impairment charge on a trust preferred security investment as well as $0.4 million of income from calls of investment securities in Q1-08 that did not recur in Q1-09. The Company's effective income tax rate was approximately 43% for both periods. The Company had 73 employees at March 31, 2009, compared to 71 employees at March 31, 2008.

Total assets at March 31, 2009 were $2.32 billion, compared to $2.27 billion at December 31, 2008, reflecting primarily a higher level of security investments, partially offset by a lower level of overnight investments.

Total loans, net of unearned fees, amounted to $1.71 billion at March 31, 2009, relatively unchanged from December 31, 2008, as $46 million of new loan originations secured primarily by commercial real estate was offset by $43 million of principal repayments and $0.8 million of loans transferred to foreclosed real estate. Nearly all the new loans in Q1-09 have fixed interest rates and a weighted-average yield and term of 6.77% and 5.7 years, respectively. New loans totaled $46 million for Q1-09, compared to $97 million for Q1-08. Principal repayments totaled $43 million for Q1-09, compared to $31 million for Q1-08.

Total nonperforming assets at March 31, 2009 amounted to $129.0 million, or 5.57% of total assets, compared to $117.7 million, or 5.18%, at December 31, 2008 and $101.7 million, or 4.70%, at March 31, 2008. At March 31, 2009, nonperforming assets were comprised of $119.3 million of nonaccrual loans, or 31 loans, and $9.7 million (net of a $0.7 million valuation allowance) of real estate acquired through foreclosure, or 4 properties. At March 31, 2009, a specific SFAS No. 114 valuation allowance in the aggregate amount of $10.2 million (included as part of the overall allowance for loan losses) was maintained on nonaccrual loans, which are considered impaired. At March 31, 2009, the Company also had $31 million of accruing loans on which the Company has granted certain concessions generally consisting of the temporary deferral of interest or principal payments to provide some relief to the borrower.

The Company's ability to complete foreclosure or other proceedings to acquire and sell certain collateral properties continues to be delayed by bankruptcy proceedings. As a result of these delays and other factors, the timing of the resolution/disposition of nonperforming assets cannot be predicted with certainty. There can be no assurance that the Company will not incur significant additional loan loss provisions or expenses in connection with the ultimate collection of nonaccrual loans or in carrying and disposing of foreclosed real estate. Although the Company has never originated or acquired subprime loans nor invested in securities collateralized by subprime loans, the current world financial crisis has affected the Company indirectly through reductions in overall real estate values, reduced home sales and construction, increased unemployment and a weakening of national and local economic conditions, particularly in New York and Florida, the Company's two primary markets. The Company does not own or originate construction/development loans.

The total allowance for loan losses was $30.4 million at March 31, 2009, compared to $28.5 million at December 31, 2008. The increase from December 31, 2008 was due to $1.9 million of provisions. The allowance represented 1.78% of total loans (net of deferred fees) at March 31, 2009, compare to 1.67% at December 31, 2008.

Total securities held to maturity at March 31, 2009 increased to $545 million, from $476 million at December 31, 2008. At March 31, 2009, the portfolio had a weighted-average remaining contractual maturity and a yield of 4.4 years and 3.19%, respectively. The Company does not own or invest in any CDOs, CMOs or any preferred or common stock of FNMA or FHLMC.

Total deposits at March 31, 2009 increased to $1.94 billion, from $1.86 billion at December 31, 2008, reflecting an increase of $93 million in money market accounts, partially offset by a $20 million decrease in certificate of deposit accounts. Total borrowed funds and related interest payable at March 31, 2009 decreased to $122 million, from $149 million at December 31, 2008, reflecting the early repayment of $26 million of higher rate subordinated debentures.

On April 7, 2009, the Company's wholly owned subsidiary, Intervest National Bank (the "Bank"), entered into a Memorandum of Understanding ("MOU") with the Comptroller of the Currency ("OCC"), which requires the Bank to (1) appoint a Compliance Committee to monitor and coordinate the Bank's adherence to the MOU and to submit progress reports to the OCC; (2) develop and implement a Strategic Plan in accordance with guidelines set forth in the MOU; (3) review and revise the Bank's Contingency Funding Plan to address matters outlined in the MOU; (4) develop and implement a written program to improve credit risk management processes that are consistent across the Bank's two primary markets; (5) develop and implement a three-year capital program in accordance with guidelines set out in the MOU; and (6) review and revise the Bank�s interest rate risk policy and procedures to address matters set forth in the MOU. Management has commenced the steps necessary to satisfy the conditions of the MOU and is committed to addressing and resolving any and all issues presented therein. The Bank has also agreed with the OCC to maintain minimum capital ratios at specified levels higher than those otherwise required by applicable regulations as follows: Tier 1 capital to total average assets (leverage ratio) - 9%; Tier 1 capital to risk-weighted assets - 10%; and total capital to risk-weighted assets - 12%. At March 31, 2009, the Bank's actual capital ratios were in excess of these levels at 10.32%, 12.48% and 13.73%, respectively.

Total stockholders' equity at March 31, 2009 increased to $212.6 million, from $212.0 million at December 31, 2008 primarily due to net earnings for Q1-09.

Intervest Bancshares Corporation is a financial holding company. Its operating subsidiaries are: Intervest National Bank, a nationally chartered commercial bank that has its headquarters and full-service banking office at One Rockefeller Plaza, in New York City, and a total of six full-service banking offices in Clearwater and Gulfport, Florida; and Intervest Mortgage Corporation, a mortgage investment company. Intervest National Bank maintains capital ratios in excess of the regulatory requirements to be designated as a well-capitalized institution. Intervest Bancshares Corporation's Class A Common Stock is listed on the NASDAQ Global Select Market: Trading Symbol IBCA.

This press release may contain forward-looking information. Except for historical information, the matters discussed herein are subject to certain risks and uncertainties that may affect the Company's actual results of operations. The following important factors, among others, could cause actual results to differ materially from those set forth in forward looking statements: changes in general economic conditions and real estate values in the Company's market areas; changes in policies by regulatory agencies; fluctuations in interest rates; demand for loans and deposits; and competition. Reference is made to the Company's filings with the SEC for further discussion of risks and uncertainties regarding the Company's business. Historical results are not necessarily indicative of the future prospects of the Company.

Selected Consolidated Financial Information Follows.

INTERVEST BANCSHARES CORPORATION

Selected Consolidated Financial Information

Quarter Ended (Dollars in thousands, except per share amounts) March 31, � 2009 � 2008 Selected Operating Data: � Interest and dividend income $30,679 $31,788 Interest expense 21,389 � 22,933 Net interest and dividend income 9,290 8,855 Provision for loan losses 1,857 � 2,263 Net interest and dividend income after provision for loan losses 7,433 6,592 Noninterest income 73 943 Noninterest expenses 5,939 � 3,518 Earnings before income taxes 1,567 4,017 Provision for income taxes 672 � 1,736 Net earnings before preferred dividend requirements 895 2,281 Preferred dividend requirements (1) 405 � - Net earnings available to common stockholders $ 490 � $ 2,281 Basic earnings per common share $ 0.06 $ 0.28 Diluted earnings per common share $ 0.06 $ 0.28 Cash dividends paid per common share $ - $ -

Weighted-average common shares and common equivalent shares outstanding for computing:

Basic earnings per common share 8,270,812 8,225,812 Diluted earnings per common share (2) 8,270,812 8,238,031 Common shares outstanding at end of period 8,270,812 8,270,812

Common stock options/warrants outstanding at end of period

959,112 � 136,040 Yield on interest-earning assets 5.51% 6.16% Cost of funds 4.29% 4.94% Net interest margin (3) 1.67% � 1.71% Return on average assets (annualized) 0.16% 0.44% Return on average common equity (annualized) 1.89% 5.01% Effective income tax rate 42.88% 43.22% Efficiency ratio (4) 63% � 36% Total average loans outstanding $1,713,685 $1,646,655 Total average securities outstanding 525,702 401,143 Total average short-term investments outstanding 17,212 29,207 Total average interest-earning assets outstanding 2,256,599 2,077,005 Total average assets outstanding 2,281,226 � 2,095,651 Total average interest-bearing deposits outstanding $1,888,774 $1,722,631 Total average borrowings outstanding 131,461 144,466 Total average interest-bearing liabilities outstanding 2,020,235 1,867,097 Total average stockholders' equity 212,159 � 181,990 � � � � � � � � � �

At Mar 31,

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At Dec 31,

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At Sep 30,

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At Jun 30,

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At Mar 31,

Selected Financial Condition Information: 2009 � 2008 � 2008 � 2008 � 2008 Total assets $2,317,613 $2,271,833 $2,180,746 $2,207,170 $2,165,017 Total cash and short-term investments 30,203 54,903 21,969 16,726 47,229 Total securities held to maturity 544,702 475,581 410,844 430,934 406,727 Total FRB and FHLB stock 9,657 8,901 10,912 8,428 7,368 Total loans, net of unearned fees 1,708,752 1,705,711 1,691,851 1,723,213 1,677,119 Total deposits 1,938,123 1,864,135 1,734,820 1,809,683 1,781,188 Total borrowed funds and accrued interest payable 122,194 149,566 210,551 168,063 159,189 Total preferred equity 23,177 23,080 - - - Total common equity 189,440 188,894 186,230 183,549 183,703 Book value per common share 22.90 � 22.84 � 22.52 � 22.19 � 22.21 Total allowance for loan losses $ 30,371 $ 28,524 $ 25,828 $ 26,609 $ 23,856 Total loan chargeoffs for the quarter 10 - 4,227 - - Total accruing troubled debt restructurings 30,586 - - - - Total loans ninety days past due and still accruing. 1,958 1,964 - 3,051 837 Total nonaccrual loans 119,305 108,610 82,759 119,078 97,692 Total foreclosed real estate 9,742 9,081 25,099 7,272 4,022 Allowance for loan losses/net loans 1.78% � 1.67% � 1.53% � 1.54% � 1.42%

(1) Represents accrued dividends on $25 million of 5% cumulative preferred stock held by the U.S. Treasury and amortization of related preferred stock discount.

(2) Diluted EPS includes shares that would be outstanding if dilutive common stock options/warrants were assumed to be exercised during the period. Outstanding options/warrants are dilutive when their exercise price is above the average market price of the Class A common stock during the reporting periods.

(3) Net interest margin is reported exclusive of income from loan prepayments, which is included as a component of noninterest income. Inclusive of such income, the margin would compute to 1.68% and 1.74% for the quarters ended March 31, 2009 and 2008, respectively.

(4) Represents noninterest expenses (excluding the provision for loan losses) as a percentage of net interest and dividend income plus noninterest income.

INTERVEST BANCSHARES CORPORATION

Consolidated Financial Highlights

At or For The Period Ended

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($ in thousands, except per share amounts)

Quarter Ended Mar 31, 2009

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Year Ended Dec 31, 2008

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Year Ended Dec 31, 2007

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Year Ended Dec 31, 2006

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Year Ended Dec 31, 2005

Balance Sheet Highlights: � � � � Total assets $2,317,613 $2,271,833 $2,021,392 $1,971,753 $1,706,423 Asset growth rate 2% 12% 3% 16% 30% Total loans, net of unearned fees $1,708,752 $1,705,711 $1,614,032 $1,490,653 $1,367,986 Loan growth rate 0% 6% 8% 9% 35% Total deposits $1,938,123 $1,864,135 $1,659,174 $1,588,534 $1,375,330 Deposit growth rate 4% 12% 4% 16% 38% Loans/deposits (Intervest National Bank) 83% 85% 88% 84% 88% Total borrowed funds and accrued interest payable. $ 122,194 $ 149,566 $ 136,434 $ 172,909 $ 155,725 Preferred equity $ 23,177 $ 23,080 $ - $ - $ - Common equity $ 189,440 $ 188,894 $ 179,561 $ 170,046 $ 136,178 Common shares outstanding 8,270,812 8,270,812 8,075,812 8,371,595 7,823,058 Common book value per share $ 22.90 $ 22.84 $ 22.23 $ 20.31 $ 17.41 Market price per common share $ 2.15 � $ 3.99 � $ 17.22 � $ 34.41 � $ 24.04 Asset Quality Highlights Nonaccrual loans $119,305 $108,610 $90,756 $ 3,274 $ 750 Loans ninety days past due and still accruing 1,958 1,964 11,853 - 2,649 Accruing troubled debt restructurings 30,586 - - - - Foreclosed real estate 9,742 9,081 - - - Allowance for loan losses 30,371 28,524 21,593 17,833 15,181 Loan recoveries - - - - - Loan chargeoffs 10 4,227 - - - Allowance for loan losses / net loans 1.78% � 1.67% � 1.34% � 1.20% � 1.11% Statement of Operations Highlights: Interest and dividend income $30,679 $128,497 $131,916 $128,605 $97,881 Interest expense 21,389 � 90,335 � 89,653 � 78,297 � 57,447 Net interest and dividend income 9,290 38,162 42,263 50,308 40,434 Provision for loan losses 1,857 11,158 3,760 2,652 4,075 Noninterest income 73 5,026 8,825 6,855 6,594 Noninterest expenses 5,939 � 18,873 � 12,876 � 13,027 � 10,703 Earnings before income taxes 1,567 13,157 34,452 41,484 32,250 Provision for income taxes 672 � 5,891 � 15,012 � 17,953 � 14,066 Net earnings before preferred dividend requirements 895 7,266 19,440 23,531 18,184 Preferred dividend requirements (1) 405 � 41 � - � - � - Net earnings available to common stockholders $ 490 � $ 7,225 � $ 19,440 � $ 23,531 � $18,184 Basic earnings per common share $ 0.06 $ 0.87 $ 2.35 $ 2.98 $ 2.65 Diluted earnings per common share $ 0.06 $ 0.87 $ 2.31 $ 2.82 $ 2.47

Adjusted net earnings used to calculate diluted earnings per common share

$ 490

$ 7,225

$19,484

$ 23,679

$18,399

Average common shares used to calculate: Basic earnings per common share 8,270,812 8,259,091 8,275,539 7,893,489 6,861,887 Diluted earnings per common share 8,270,812 8,267,781 8,422,017 8,401,379 7,449,658 Net interest margin (2) 1.67% 1.79% 2.11% 2.75% 2.70% Return on average assets 0.16% 0.34% 0.96% 1.28% 1.20% Return on average common equity 1.89% 3.94% 11.05% 15.82% 16.91% Effective income tax rate 42.88% 44.77% 43.57% 43.28% 43.62% Efficiency ratio (3) 63% 44% 25% 23% 23% Full-service banking offices 7 � 7 � 7 � 7 � 6

(1) Represents accrued dividends on $25 million of 5% cumulative preferred stock held by the U.S. Treasury and amortization of related preferred stock discount.

(2) Net interest margin is reported exclusive of income from loan prepayments, which is included as a component of noninterest income. Inclusive of such income, the margin would compute to 1.68% for the quarter ended March 31, 2009, 1.74% for 2008, 2.64% for 2007, 3.31% for 2006 and 2.66% for 2005.

(3) Represents noninterest expenses (excluding the provision for loan losses) as a percentage of net interest and dividend income plus noninterest income. Noninterest expenses for 2006 included a one-time charge of $1.5 million.