Intervest Bancshares (IBCA) 8-K Reports Net Loss of $2.9 Million for the First Quarter of 2010

Exhibit 99.1

(BW) (INTERVEST-BANCSHARES) (IBCA)

INTERVEST BANCSHARES CORPORATION

Reports Net Loss of $2.9 Million for the First Quarter of 2010

Business Editors - New York – (Business Wire – April 12, 2010)

Intervest Bancshares Corporation (NASDAQ-GS: IBCA) (the “Company”) today reported a net loss for the first quarter of 2010 (“Q1-10”) of $2.9 million, or $0.35 per diluted common share, compared to net income of $0.5 million, or $0.06 per share, for the first quarter of 2009 (“Q1-09”).

The Company’s operating results have been affected by the weak economy, high unemployment, increased office and retail vacancy rates and an increasing supply of distressed properties for sale in the marketplace at discounted prices, all of which have significantly reduced commercial and multifamily real estate values both nationally and in the Company’s lending areas.

The net loss for Q1-10 was driven by a $7.8 million increase in the provision for loan losses and a $1.7 million increase in noninterest expenses. The total of these items was partially offset by a $3.2 million increase in net interest and dividend income, a $0.4 million increase in noninterest income and a $2.5 million decrease in the provision for income tax expense.

The provision for loan losses increased to $9.7 million in Q1-10 from $1.9 million in Q1-09. The increase was attributable to the downgrading of internal risk ratings on various loans and lower estimates of value on a number of collateral properties. During Q1-10, the Company charged off a total of $14.0 million of loan principal as a result of declining real estate values.

Noninterest expenses increased to $7.6 million in Q1-10 from $5.9 million in Q1-09. The increase was due to a $1.9 million increase in the provision for losses on real estate owned, a $0.4 million increase in FDIC insurance expense due to higher premium rates imposed on all FDIC insured banks, a $0.2 million increase in regulatory and professional fees and a $0.2 million increase in expenses associated with nonperforming assets. The aggregate of these items was partially offset by $1.0 million of expense in Q1-09 that did not recur in Q1-10 from the early retirement of higher cost borrowings. The Company recorded an income tax benefit of $1.8 million in Q1-10 compared to $0.7 million of tax expense in Q1-09. The Company’s effective tax rate was 42% in Q1-10, compared to 43% in Q1-09.

Net interest and dividend income increased to $12.5 million in Q1-10 from $9.3 million in Q1-09, reflecting an improved net interest margin. The margin increased to 2.23% in Q1-10 from 1.67% in Q1-09 primarily due to lower rates paid on deposits, the early retirement of higher cost borrowings and the recovery of $0.8 million of nonaccrual interest from the full repayment of a nonaccrual loan. The positive effect of these items was partially offset by calls of higher yielding U.S. government agency security investments (coupled with the reinvestment of the proceeds into similar securities with lower interest rates). The yield on the Company’s average interest-earning assets decreased by 21 basis points to 5.30% in Q1-10, from 5.51% in Q1-09. The Company’s average cost of funds decreased at a faster pace by 93 basis points to 3.36% in Q1-10, from 4.29% in Q1-09.

Noninterest income increased to $0.5 million in Q1-10 from $0.1 million in Q1-09, primarily due to $0.4 million of fees from the full repayment of the nonaccrual loan noted above.

Total assets at March 31, 2010 were $2.28 billion compared to $2.40 billion at December 31, 2009, reflecting a decrease in security investments and loans receivable, partially offset by an increase in overnight investments and foreclosed real estate. As a result of current market conditions and higher regulatory capital requirements, Intervest National Bank has reduced its aggregate deposits and its new loan originations.

Total securities held to maturity decreased by $143.8 million to $491.1 million at March 31, 2010, primarily due to calls exceeding new purchases. A portion of the resulting proceeds were used to fund deposit outflow and the repayment of FHLB borrowings. The securities portfolio had a weighted-average remaining contractual maturity and a yield of 4.4 years and 2.58%, respectively, at March 31, 2010.

Total loans receivable, net of unearned fees, amounted to $1.63 billion at March 31, 2010, a $52 million decrease from $1.68 billion at December 31, 2009. The decrease was due to an aggregate of $33.7 million of principal repayments, $28.0 million of loans transferred to foreclosed real estate and $14.0 million of loan chargeoffs exceeding $23.0 million of new loan originations.

Total nonperforming assets at March 31, 2010 amounted to $154.1 million, or 6.75% of total assets, compared to $155.8 million, or 6.49% of total assets at December 31, 2009. At March 31, 2010, nonperforming assets consisted of $96.2 million of nonaccrual loans, made up of 32 loans, and $57.9 million of real estate acquired through foreclosure, made up of 15 properties. At March 31, 2010, we also had $116.9 million (21 loans) of accruing restructured loans (with a weighted average interest rate of 4.87%) on which the Bank has granted certain concessions to provide payment relief to the borrower. These concessions generally consist of the deferral of principal and or interest payments for a period of time, or a partial reduction in interest payments.

The total allowance for loan losses decreased to $28.3 million at March 31, 2010 from $32.6 million at December 31, 2009, due to $14.0 million of chargeoffs, partially offset by a $9.7 million loan loss provision. The allowance represented 1.73% of total loans (net of deferred fees) at March 31, 2010, compared to 1.94% at December 31, 2009. At each date, a SFAS 114 specific valuation allowance (included as part of the overall allowance for loan losses) in the aggregate amount of $11.0 million and $13.8 million, respectively, was maintained on total nonaccrual and restructured loans.

Total deposits at March 31, 2010 decreased to $1.93 billion from $2.03 billion at December 31, 2009, nearly all of which was due to a $95 million decrease in certificate of deposit accounts.

Total borrowed funds and related interest payable at March 31, 2010 decreased to $103 million, from $119 million at December 31, 2009, due to the maturity and repayment of $16 million of FHLBNY borrowings. As disclosed in a prior report on Form 8-K, the Company has exercised its right to defer regularly scheduled interest payments on its $55 million of junior subordinated notes relating to its outstanding trust preferred securities and has also deferred the payment of its regular quarterly cash dividends on its $25 million of preferred stock held by the U.S. Treasury. The interest and dividend requirements continue to be accrued for financial statement purposes.

Total stockholders’ equity at March 31, 2010 decreased to $211.3 million from $214.1 million at December 31, 2009, primarily due to the net loss of $2.9 million for Q1-10. At March 31, 2010, Intervest National Bank’s regulatory capital ratios were as follows: total capital to risk-weighted assets – 14.33%, Tier 1 capital to risk-weighted assets – 13.08% and Tier 1 capital to total average assets (leverage ratio) – 10.38%. INB maintains capital ratios in excess of its current regulatory requirements as well as those necessary to be designated as a well-capitalized institution under applicable regulations.

Intervest Bancshares Corporation is a holding company. Its principal operating subsidiary is 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. 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.

Contact: Lowell S. Dansker, Chairman, Intervest Bancshares Corporation

One Rockefeller Plaza (Suite 400), New York, New York 10020-2002, Phone 212-218-2800 Fax 212-218-2808

Selected Consolidated Financial Information Follows.

INTERVEST BANCSHARES CORPORATION

Selected Consolidated Financial Information

(Dollars in thousands, except per share amounts)	Quarter Ended March 31,
Selected Operating Data:	2010			2009
Interest and dividend income	$	29,631		$	30,679
Interest expense		17,141			21,389
Net interest and dividend income		12,490			9,290
Provision for loan losses		9,639			1,857
Net interest and dividend income after provision for loan losses		2,851			7,433
Noninterest income		512			73
Noninterest expenses		7,666			5,939
(Loss) earnings before income taxes		(4,303	)		1,567
(Benefit) provision for income taxes		(1,825	)		672
Net (loss) earnings before preferred dividend requirements		(2,478	)		895
Preferred dividend requirements (1)		409			405
Net (loss) earnings available to common stockholders	$	(2,887	)	$	490
Basic (loss) earnings per common share	$	(0.35	)	$	0.06
Diluted (loss) earnings per common share		(0.35	)		0.06
Average common shares used to calculate:
Basic (loss) earnings per common share		8,270,812			8,270,812
Diluted (loss) earnings per common share (2)		8,270,812			8,270,812
Common shares outstanding at end of period		8,270,812			8,270,812
Common stock options/warrants outstanding at end of period		1,018,722			959,112
Yield on interest-earning assets		5.30	%		5.51	%
Cost of funds		3.36	%		4.29	%
Net interest margin (3)		2.23	%		1.67	%
Return on average assets (annualized)		-0.42	%		0.16	%
Return on average common equity (annualized)		-5.20	%		1.89	%
Effective income tax rate		42.41	%		42.88	%
Efficiency ratio (4)		36	%		54	%
Total average loans outstanding	$	1,680,810		$	1,713,685
Total average securities outstanding		566,635			525,702
Total average short-term investments outstanding		19,145			17,212
Total average interest-earning assets outstanding		2,266,590			2,256,599
Total average assets outstanding		2,335,592			2,281,226
Total average interest-bearing deposits outstanding	$	1,961,132		$	1,888,774
Total average borrowings outstanding		109,028			131,461
Total average interest-bearing liabilities outstanding		2,070,160			2,020,235
Total average stockholders’ equity		214,235			212,159

Selected Financial Condition Information:	At Mar 31, 2010			At Dec 31, 2009			At Sep 30, 2009			At Jun 30, 2009			At Mar 31, 2009
Total assets	$	2,284,257		$	2,401,204		$	2,382,170		$	2,380,044		$	2,317,613
Total cash and short-term investments		56,470			7,977			30,660			23,441			30,203
Total securities held to maturity		491,067			634,856			598,313			566,722			544,702
Total FRB and FHLB stock		9,989			10,708			9,929			9,929			9,657
Total loans, net of unearned fees		1,634,140			1,686,164			1,696,064			1,746,087			1,708,752
Total deposits		1,926,772			2,029,984			2,012,995			1,995,165			1,938,123
Total borrowed funds and accrued interest payable		103,060			118,552			107,547			118,035			122,194
Total preferred equity		23,563			23,466			23,370			23,273			23,177
Total common equity		187,711			190,588			190,249			189,864			189,440
Book value per common share		22.69			23.04			23.00			22.96			22.90
Total allowance for loan losses	$	28,300		$	32,640		$	31,815		$	32,054		$	30,371
Total loan recoveries for the quarter		—			25			—			1,329			—
Total loan chargeoffs for the quarter		13,979			3,126			2,635			2,332			10
Total accruing troubled debt restructured loans (5)		116,906			97,311			71,156			76,210			30,586
Total loans ninety days past due and still accruing		3,629			6,800			1,947			6,367			1,958
Total nonaccrual loans		96,248			123,877			131,742			129,784			119,305
Total foreclosed real estate		57,858			31,866			32,915			18,214			9,742
Allowance for loan losses/net loans		1.73	%		1.94	%		1.88	%		1.84	%		1.78	%

(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) Outstanding options/warrants were not dilutive for the Q1-09 reporting 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 period.

(3) Net interest margin is reported exclusive of income from loan prepayments, which is included as a component of noninterest income.

(4) Represents noninterest expenses (excluding provisions for loan and real estate losses & real estate expenses) as a percentage of net interest and dividend income plus noninterest income.

(5) Represent loans whose terms have been modified mostly through the deferral of principal and/or a partial reduction in interest payments.

INTERVEST BANCSHARES CORPORATION

Consolidated Financial Highlights

	At or For The Period Ended
($ in thousands, except per share amounts)	Quarter Ended Mar 31, 2010			Year Ended Dec 31, 2009			Year Ended Dec 31, 2008			Year Ended Dec 31, 2007			Year Ended Dec 31, 2006
Balance Sheet Highlights:
Total assets	$	2,284,257		$	2,401,204		$	2,271,833		$	2,021,392		$	1,971,753
Percentage change		-5	%		6	%		12	%		3	%		16	%
Total loans, net of unearned fees		1,634,140			1,686,164			1,705,711			1,614,032			1,490,653
Percentage change		-3	%		-1	%		6	%		8	%		9	%
Total deposits		1,926,772			2,029,984			1,864,135			1,659,174			1,588,534
Percentage change		-5	%		9	%		12	%		4	%		16	%
Loans/deposits (Intervest National Bank)		81	%		79	%		85	%		88	%		84	%
Total borrowed funds and accrued interest payable		103,060			118,552			149,566			136,434			172,909
Preferred equity		23,563			23,466			23,080			—			—
Common equity		187,711			190,588			188,894			179,561			170,046
Common book value per share		22.69			23.04			22.84			22.23			20.31
Market price per common share		3.90			3.28			3.99			17.22			34.41
Asset Quality Highlights
Nonaccrual loans .	$	96,248		$	123,877		$	108,610		$	90,756		$	3,274
Foreclosed real estate		57,858			31,866			9,081			—			—
Accruing troubled debt restructured loans (1)		116,906			97,311			—			—			—
Loans ninety days past due and still accruing		3,629			6,800			1,964			11,853			—
Allowance for loan losses		28,300			32,640			28,524			21,593			17,833
Loan recoveries		—			1,354			—			—			—
Loan chargeoffs		13,979			8,103			4,227			—			—
Allowance for loan losses/net loans		1.73	%		1.94	%		1.67	%		1.34	%		1.20	%
Statement of Operations Highlights:
Interest and dividend income	$	29,631		$	123,598		$	128,497		$	131,916		$	128,605
Interest expense		17,141			81,000			90,335			89,653			78,297
Net interest and dividend income		12,490			42,598			38,162			42,263			50,308
Provision for loan losses		9,639			10,865			11,158			3,760			2,652
Noninterest income		512			297			5,026			8,825			6,855
Noninterest expenses		7,666			27,084			18,873			12,876			13,027
(Loss) earnings before income taxes		(4,303	)		4,946			13,157			34,452			41,484
(Benefit) provision for income taxes		(1,825	)		1,816			5,891			15,012			17,953
Net (loss) earnings before preferred dividend requirements		(2,478	)		3,130			7,266			19,440			23,531
Preferred dividend requirements (2)		409			1,632			41			—			—
Net (loss) earnings available to common stockholders	$	(2,887	)	$	1,498		$	7,225		$	19,440		$	23,531
Basic (loss) earnings per common share	$	(0.35	)	$	0.18		$	0.87		$	2.35		$	2.98
Diluted (loss) earnings per common share	$	(0.35	)	$	0.18		$	0.87		$	2.31		$	2.82
Adjusted net earnings used to calculate diluted (loss) earnings per common share	$	(2,887	)	$	1,498		$	7,225		$	19,484		$	23,679
Average common shares used to calculate:
Basic (loss) earnings per common share		8,270,812			8,270,812			8,259,091			8,275,539			7,893,489
Diluted (loss) earnings per common share		8,270,812			8,270,812			8,267,781			8,422,017			8,401,379
Common shares outstanding		8,270,812			8,270,812			8,270,812			8,075,812			8,371,595
Net interest margin (3)		2.23	%		1.83	%		1.79	%		2.11	%		2.75	%
Return on average assets		-0.42	%		0.13	%		0.34	%		0.96	%		1.28	%
Return on average common equity		-5.20	%		1.65	%		3.94	%		11.05	%		15.82	%
Effective income tax rate		42.41	%		36.72	%		44.77	%		43.57	%		43.28	%
Efficiency ratio (4)		36	%		46	%		33	%		24	%		23	%
Full-service banking offices		7			7			7			7			7

(1) Represent loans whose terms have been modified mostly through the deferral of principal and/or a partial reduction in interest payments.

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

(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 2.32% for the quarter ended March 31, 2010, 1.68% for 2009, 1.74% for 2008, 2.64% for 2007 and 3.31% for 2006.

(4) Represents noninterest expenses (excluding provision for loan losses and real estate expenses) 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.