PBIB Porter Bancorp, Inc. (delisted)

Porter Bancorp, Inc. (NASDAQ: PBIB), parent company of PBI�Bank, with 19 full-service banking offices in 11 counties in Kentucky, today reported results for the first quarter of 2009.

The Company reported net income of $3.1 million, or $0.31 per fully diluted common share, for the first quarter of 2009, compared with $3.6 million, or $0.43 per fully diluted common share, for the first quarter of 2008. The Company also reported a 4.2% increase in loans to $1.4 billion and a 12.5% increase in deposits to $1.4 billion compared with the first quarter of 2008.

�Porter Bancorp reported a 5.5% increase in net interest income to $12.0 million in the first quarter of 2009 and benefited from the continued growth in average earning assets compared with the first quarter of 2008,� stated Maria L. Bouvette, President and CEO of Porter Bancorp. �Our net income for the first quarter of 2009 showed solid improvement since the linked fourth quarter of 2008, but was lower than the first quarter of 2008 due to higher costs, including a $950,000 increase in our provision for loan losses, a more than doubling in our FDIC insurance assessments to $459,000, and $482,000 ($0.07 per share) in preferred stock dividends and accretion on the preferred stock issued in the fourth quarter of 2008. We also reported a $332,000 decrease in non-interest income compared with the first quarter of 2008 due to lower service charges, fiduciary income and gain on sale of securities.

�We increased our provision for loan losses to $1.6 million in the first quarter, up from $650,000 in the first quarter of 2008, to account for an increase in non-performing loans and to ensure the adequacy and strength of our loan loss reserves,� continued Ms. Bouvette. �We believe the increase in our loan loss reserve to 1.49% of total assets strengthens our reserves and will provide an important buffer to Porter Bancorp�s earnings and capital base during this extraordinarily challenging and uncertain economic environment.�

First Quarter Results

• Earnings per share improved from the linked fourth quarter of 2008 due primarily to growth in net interest income and a lower provision for loan losses. Diluted EPS increased 19.2% to $0.31 in the first quarter of 2009 compared with $0.26 in the linked fourth quarter of 2008.
• Net income was $3.1 million for the three months ended March 31, 2009, compared with $3.6 million for the first quarter of 2008. Earnings per diluted common share decreased 29.5% to $0.31 compared with the first quarter of 2008. Earnings per common share were reduced by approximately $0.07 per common share due to dividends and accretion on $35 million in preferred stock issued to the United States Treasury. There were no comparable preferred dividends paid in the first quarter of 2008.
• Net interest margin increased 6 basis points to 3.02% in the first quarter of 2009 from 2.96% in the linked fourth quarter of 2008.
• Net interest income increased 5.5% to $12.0 million for the three months ended March 31, 2009, compared with the same quarter of 2008 and benefited from a 13.1% increase in average earning assets to $1.6 billion.
• Loans grew 4.2% to $1.4 billion, compared with $1.3 billion at March 31, 2008.
• Deposits increased 12.5% to $1.4 billion compared with $1.2 billion at March 31, 2008.
• Total assets increased 11.1% to $1.7 billion since the first quarter of 2008, fueled by organic loan growth and growth in the security portfolio.
• Efficiency ratio improved to 54.09% for the first three months of 2009, compared with 54.47% for the first quarter of 2008.

Net Interest Income

Net interest income increased 5.5% to $12.0 million for the three months ended March 31, 2009, an increase of $624,000, compared with $11.3 million for the same period in 2008. This increase was primarily attributable to an increase in average earning assets and decreased cost of funds compared with 2008.

Net interest margin increased 6 basis points to 3.02% from our margin of 2.96% in the fourth quarter of 2008 due primarily to a lower cost of funds. The yield on earning assets declined 36 basis points from the fourth quarter of 2008 compared with a 40 basis point decline in rates paid on interest-bearing liabilities. Net interest margin decreased 19 basis points to 3.02% from our margin of 3.21% in the prior year first quarter due primarily to earning assets repricing downward more quickly in the falling rate environment than cost of funds. The yield on earning assets declined 135 basis points from the 2008 first quarter, compared with a 118 basis point decline in rates paid on interest-bearing liabilities.

Average earning assets rose 13.1% to $1.6 billion for the three months ended March 31, 2009, compared with the $1.4 billion for the three months ended March 31, 2008. Average deposits increased 9.4% to $1.3 billion, up from $1.2 billion for the three months ended March 31, 2008. We are currently asset sensitive. As a result, if interest rates remain stable, we expect our margin to continue to expand in 2009 based upon our expectation of continued downward liability repricing with limited repricing of assets.

Non-Interest Income

Non-interest income for the first quarter of 2009 decreased 18.3%, or $332,000, compared with the first quarter of 2008, and 3.3%, or $51,000, compared with the fourth quarter of 2008. The decrease in non-interest income was due to lower service charges on deposit accounts, a decrease in income from fiduciary activities, and a lower gain on sales of securities.

Non-Interest Expense

Non-interest expense for the first quarter increased 2.2% from prior year first quarter. This was due primarily to increased FDIC insurance premiums which have risen significantly due to amendments made by the FDIC in 2007 to its risk-based deposit premium assessment system. Our efficiency ratio continues to outperform our peers at 54.09% for the first quarter of 2009 and improved from 54.47% in the first quarter of 2008.

Balance Sheet Review

Total assets increased 5.5%, or $90.5 million, to $1.7 billion at March 31, 2009, from $1.6 billion at December�31,�2008. The Company�s loan portfolio increased 1.41%, or $19 million, to $1.37 billion from $1.35�billion at December 31, 2008, primarily due to in-house loan origination efforts. Deposits at March 31, 2009, increased 7.9% to $1.4 billion from $1.3 billion at December 31, 2008, primarily due to an increase in both time deposits and transactional accounts from promotional efforts throughout the period.

Asset Quality

Nonperforming loans increased to $24.8 million, or 1.81% of total loans, at March 31, 2009, compared with $21.3�million, or 1.58% of total loans at December 31, 2008, and $10.1 million, or 0.77% of total loans at March�31,�2008, primarily due to an increase in the commercial real estate, construction and development sectors caused by the slowdown in the economy.

Foreclosed properties at March 31, 2009, were $10.5 million compared with $7.8 million at December 31, 2008, and $7.1 million at March 31, 2008. Additionally, our ratio of non-performing assets to total assets increased during the quarter to 2.04% at March 31, 2009, compared with 1.78% at December 31, 2008.

Our loan loss reserve as a percentage of total loans increased to 1.49% at March 31, 2009, from 1.46% at December�31, 2008, and 1.37% at March 31, 2008. Net loan charge-offs for the first quarter of 2009 were $881,000, or 0.06% of average loans for the quarter.

�We remain very proactive in reviewing our loan portfolio during this difficult credit cycle by quickly resolving credit issues as soon as they are identified. We remain focused on minimizing losses to protect our earnings and capital base,� concluded Ms. Bouvette.

PBIB-G PBIB-F

Forward-Looking Statements

Statements in this press release relating to Porter Bancorp�s plans, objectives, expectations or future performance are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on management�s current expectations. Porter Bancorp�s actual results in future periods may differ materially from those currently expected due to various risks and uncertainties, including those discussed under �Risk Factors� in the Company�s Form 10-K and subsequent periodic reports filed with the Securities and Exchange Commission. The forward-looking statements in this press release are made as of the date of the release and Porter Bancorp does not assume any responsibility to update these statements.

Additional Information

Unaudited supplemental financial information for the first quarter ending March 31, 2009 follows.

PORTER BANCORP, INC. AND SUBSIDIARY

Unaudited Financial Information

(in thousands, except share and per share data)

� � � Three Three Three Months Months Months Ended Ended Ended 3/31/09 12/31/08 3/31/08 Income Statement Data Interest income $ 23,502 $ 24,286 $ 25,674 Interest expense � 11,535 � 12,808 � 14,331 Net interest income 11,967 11,478 11,343 Provision for loan losses � 1,600 � 2,750 � 650 Net interest income after provision 10,637 8,728 10,693 � Service charges on deposit accounts 688 817 829 Income from fiduciary activities 220 234 253 Gains on sales of securities, net 1 10 94 Other than temporary impairment on securities - (471 ) - Gain on sale of branch - 410 - Other � 577 � 537 � 642 Non-interest income 1,486 1,537 1,818 � Salaries & employee benefits 3,878 3,410 3,824 Occupancy and equipment 998 888 913 FDIC insurance 459 304 221 Franchise tax 450 435 435 Professional fees 228 192 246 Postage and delivery 184 180 175 Communications expense 155 181 161 Advertising 158 62 161 Other real estate owned expense 127 425 227 Other � 639 � 747 � 754 Non-interest expense 7,276 6,824 7,117 � Income before income taxes 4,577 3,441 5,394 Income tax expense � 1,516 � 1,101 � 1,797 Net income 3,061 2,340 3,597 Less: Dividends on preferred stock 438 194 - Accretion on preferred stock � 44 � 20 � - Net income available to common $ 2,579 $ 2,126 $ 3,597 � Weighted average shares - Basic 8,294,504 8,287,309 8,270,632 Weighted average shares - Diluted 8,294,504 8,287,309 8,270,632 � � Basic and diluted earnings per common share $ 0.31 $ 0.26 $ 0.43 Cash dividends declared per common share $ 0.21 $ 0.21 $ 0.20

PORTER BANCORP, INC. AND SUBSIDIARY

Unaudited Financial Information

(in thousands, except share and per share data)

� � � Three Three Three Months Months Months Ended Ended Ended 3/31/09 12/31/08 3/31/08 Average Balance Sheet Data Assets $ 1,696,575 $ 1,630,074 $ 1,513,245 Loans 1,360,193 1,349,351 1,269,818 Earning assets 1,621,569 1,555,621 1,434,044 Deposits 1,335,761 1,282,955 1,221,159 Long-term debt and advances 176,065 178,231 146,605 Interest bearing liabilities 1,422,584 1,382,241 1,288,152 Stockholders� equity 165,756 148,366 124,023 � Performance Ratios Return on average assets 0.73 % 0.57 % 0.96 % Return on average equity 7.49 6.27 11.66 Yield on average earning assets (tax equivalent) 5.88 6.24 7.23 Cost of interest bearing liabilities 3.29 3.69 4.47 Net interest margin (tax equivalent) 3.02 2.96 3.21 Efficiency ratio 54.09 50.64 54.47 � Loan Charge-off Data Loans charged-off $ (983 ) $ (1,835 ) $ (419 ) Recoveries � 102 � 98 � 74 Net charge-offs $ (881 ) $ (1,737 ) $ (345 )

PORTER BANCORP, INC. AND SUBSIDIARY

Unaudited Financial Information

(in thousands, except share and per share data)

� � � As of As of As of � 3/31/09 12/31/08 3/31/08 Assets Loans $ 1,369,087 $ 1,350,106 $ 1,314,075 Loan loss reserve � (20,371 ) � (19,652 ) � (18,067 ) Net loans 1,348,716 1,330,454 1,296,008 Securities available for sale 174,260 173,077 123,560 Federal funds sold & interest bearing deposits 72,766 38,189 1,285 Cash and due from financial institutions 49,873 14,957 55,376 Premises and equipment 22,396 22,543 22,413 Goodwill 23,794 23,794 23,504 Accrued interest receivable and other assets � 46,588 � 44,843 � 42,592 Total Assets $ 1,738,393 $ 1,647,857 $ 1,564,738 � Liabilities and Equity Certificates of deposit $ 1,078,007 $ 1,012,851 $ 916,560 Interest checking 79,831 76,962 97,834 Money market 84,379 72,543 91,825 Savings � 36,958 � 33,253 � 35,469 Total interest bearing deposits 1,279,175 1,195,609 1,141,688 Demand deposits � 111,778 � 92,940 � 95,163 Total deposits 1,390,953 1,288,549 1,236,851 Federal funds purchased & repurchase agreements 12,534 10,084 24,706 FHLB advances 127,192 142,776 146,021 Junior subordinated debentures 34,000 34,000 25,000 Accrued interest payable and other liabilities � 8,493 � 8,235 � 7,415 Total liabilities 1,573,172 1,483,644 1,439,993 Stockholders� equity � 165,221 � 164,213 � 124,745 Total Liabilities and Stockholders� Equity $ 1,738,393 $ 1,647,857 $ 1,564,738 � Ending shares outstanding 8,337,217 8,287,933 8,256,932 Book value per common share $ 15.62 $ 15.59 $ 15.11 Tangible book value per common share 12.38 12.33 11.67 � Asset Quality Data Loan 90 days or more past due still on accrual $ 10,002 $ 11,598 $ 3,301 Non-accrual loans � 14,802 � 9,725 � 6,808 Total non-performing loans 24,804 21,323 10,109 Real estate acquired through foreclosures 10,470 7,839 7,140 Other repossessed assets � 117 � 96 � 32 Total non-performing assets $ 35,391 $ 29,258 $ 17,281 Non-performing loans to total loans 1.81 % 1.58 % 0.77 % Non-performing assets to total assets 2.04 1.78 1.10 Allowance for loan losses to non-performing loans 82.13 92.16 178.72 Allowance for loan losses to total loans 1.49 1.46 1.37 � Risk-based Capital Ratios Tier I leverage ratio 9.76 % 10.10 % 8.14 % Tier I risk-based capital ratio 12.00 12.13 9.35 Total risk-based capital ratio 13.91 14.05 10.60 � FTE employees 275 276 290