Intervest Bancshares (IBCA) 8-K Reports 2011 First Quarter Earnings of $1.7 Million

Exhibit 99.1

INTERVEST BANCSHARES CORPORATION

Reports 2011 First Quarter Earnings of $1.7 Million

Business Editors - New York – (Business Wire – April 12, 2011)

Intervest Bancshares Corporation (NASDAQ-GS: IBCA), parent company of Intervest National Bank, today reported its financial results for the first quarter of 2011.

Financial Highlights:

• Net earnings for the first quarter of 2011 (“Q1-11”) amounted to $1.7 million, or $0.08 per diluted common share, compared to a net loss of $2.9 million, or $0.35 per share, for the same quarter a year ago (“Q1-10”) and net earnings of $0.4 million, or $0.02 per share, for the fourth quarter of 2010 (“Q4-10”).

• Pre-tax earnings before deducting provisions for loan and real estate losses and real estate expenses amounted to $6.3 million in Q1-11, compared to $8.3 million in Q1-10 and $6.6 million in Q4-10.

• Net interest margin for Q1-11 was 2.14%, compared to 2.23% in Q1-10 and 2.06% in Q4-10.

• Nonaccrual loans and real estate owned totaled $72 million at March 31, 2011, down 10% from $80 million at December 31, 2010 and 53% from $154 million at March 31, 2010. New non-accrual loans decreased to $5 million in Q1-11, down from $26 million in Q1-10 and $15 million in Q4-10.

• The total provision for loan and real estate losses decreased to $2.0 million for Q1-11, down substantially from $11.6 million in Q1-10 and $4.7 million in Q4-10. The allowance for loan losses amounted to 2.49% of total outstanding loans at March 31, 2011, compared to 2.61% at December 31, 2010 and 1.73% at March 31, 2010.

• Noninterest expense amounted to $4.4 million in Q1-11, down from $4.7 million in Q1-10 and $4.9 million in Q4-10. The Company’s efficiency ratio, which is a measure of its ability to control expenses as a percentage of its revenues, was 41% in Q1-11, 42% in Q4-10 and 36% in Q1-10.

• Intervest National Bank’s regulatory capital ratios continued to improve and were well in excess of the minimums that the Bank has agreed with its regulator to maintain. At March 31, 2011, the Bank’s actual ratios were as follows: total capital to risk-weighted assets – 14.81%; Tier 1 capital to risk-weighted assets – 13.55%; and Tier 1 capital to total average assets (leverage ratio) – 10.04%. The Bank’s minimum required capital ratios are 12%, 10% and 9%, respectively.

• Common book value per share increased to $7.69 at March 31, 2011 from $7.61 at December 31, 2010.

Net earnings for Q1-11 increased by $4.6 million over Q1-10 due to a $9.6 million decrease in the total provision for loan and real estate losses (reflecting fewer problem assets and credit rating downgrades), a $0.6 million decrease in real estate expenses (reflecting less real estate owned) and a $0.3 million decrease in noninterest expenses (primarily due to lower data processing costs). The aggregate of these items was partially offset by a $2.1 million decrease in net interest and dividend income, a $0.2 million decrease in noninterest income and a $3.6 million increase in tax expense (resulting from pre-tax income in Q1-11 versus a pre-tax loss in Q1-10).

The decrease in net interest and dividend income reflected the planned reduction in the Bank’s assets and liabilities and a slightly lower net interest margin as noted above. Total average interest-earning assets decreased by $305 million in Q1-11 from Q1-10 in part due to the previously reported bulk loan sale in May 2010, with the remainder due to loan payoffs and principal repayments exceeding a reduced volume of new loan originations. These cash inflows were used to fund deposit outflow and repayments of maturing borrowed funds, which positively impacted the Bank’s regulatory capital ratios.

The decrease in the net interest margin in Q1-11 from Q1-10 reflected the impact of the bulk loan sale, a large portion of which included the sale of $108 million of performing troubled debt restructured loans (TDRs) and other loans yielding approximately 5%, payoffs of other higher yielding loans and early calls of U.S. government agency security investments coupled with the reinvestment of the proceeds into similar securities with lower market interest rates, all of which was largely offset by lower rates paid on deposit accounts. The yield on average interest-earning assets decreased by 42 basis points to 4.88% in Q1-11, from 5.30% in Q1-10, while the average cost of funds decreased at nearly the same pace or by 40 basis points to 2.96% in Q1-11, from 3.36% in Q1-10.

Total assets at March 31, 2011 decreased to $2.01 billion from $2.07 billion at December 31, 2010, primarily reflecting a decrease in loans receivable and security investments.

Loans receivable, net of unearned fees, amounted to $1.30 billion at March 31, 2011, a $37 million decrease from $1.34 billion at December 31, 2010. The decrease was due to an aggregate of $39.5 million of principal repayments (resulting from loan payoffs and normal amortization) and $4.5 million of loan chargeoffs, partially offset by $6.6 million of new loan originations. The Company does not own or originate construction/development loans.

Nonaccrual loans and real estate owned aggregated to $72 million, or 3.6% of total assets, at March 31, 2011, compared to $80 million, or 3.9%, at December 31, 2010 and $154 million, or 6.8%, at March 31, 2010. The decrease in total assets since 2009 has negatively impacted the percentages. Nonaccrual loans at March 31, 2011 and December 31, 2010 included $18 million and $21 million, respectively, of performing TDRs that are classified as nonaccrual based on regulatory guidance. These TDRs continue to pay as agreed under their renegotiated terms. As a result of updated appraisals in March 2011, the Bank charged off in Q1-11 a portion of three of these performing TDRs.

The allowance for loan losses at March 31, 2011 was $32.4 million, representing 2.49% of total net loans, compared to $34.8 million, or 2.61%, at December 31, 2010 and $28.3 million, or 1.73%, at March 31, 2010. The overall allowance included specific reserves for impaired loans (comprised of nonaccrual loans and TDRs) at each date of $3.8 million, $7.2 million and $11.0 million, respectively.

Securities held to maturity decreased by $24.4 million to $589.9 million at March 31, 2011 from $614.3 million at December 31, 2010, primarily due to calls exceeding new purchases. The securities portfolio is comprised mainly of U.S. government agency debt securities. At March 31, 2011, the portfolio had a weighted-average yield to earliest call date of 1.64% and a weighted-average remaining contractual maturity of 4.8 years. The Bank invests in U.S. government agency debt obligations to emphasize safety and liquidity. The Company does not own or invest in collateralized debt obligations or collateralized mortgage obligations.

Deposits at March 31, 2011 decreased to $1.71 billion from $1.77 billion at December 31, 2010, reflecting a $46.2 million decrease in time deposits and a $12.8 million decrease in money market deposit accounts.

Borrowed funds and related interest payable at March 31, 2011 decreased to $82 million, from $85 million at December 31, 2010, due to the maturity and repayment of FHLBNY borrowings.

Stockholders’ equity increased to $188 million at March 31, 2011 from $186 million at December 31, 2010, primarily due to the Q1-11 net earnings before preferred dividend requirements of $2.2 million. As required by agreements with its regulators, and as permitted by the underlying documents, the Company has suspended the payment of TARP dividends on its preferred stock and interest on its trust preferred securities since February 2010.

Intervest Bancshares Corporation is a bank 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 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. Words such as “may,” “will,” “could,” “should,” “would,” “believe,” “anticipate,” “estimate,” “expect,” “intend,” “plan,” “project,” “assume,” “indicate,” “continue,” “target,” “goal,” and similar words or expressions of the future are intended to identify forward-looking statements. 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 regulatory policies and enforcement actions; fluctuations in interest rates; demand for loans and deposits; changes in tax laws or the availability of net operating losses, the effects of additional capital, the availability of regulatory waivers; 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.

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INTERVEST BANCSHARES CORPORATION

Selected Consolidated Financial Information

(Dollars in thousands, except per share amounts)	Quarter Ended March 31,
Selected Operating Data:	2011			2010
Interest and dividend income	$	23,594		$	29,631
Interest expense		13,243			17,141
Net interest and dividend income		10,351			12,490
Provision for loan losses		2,045			9,639
Noninterest income		323			512
Noninterest expenses:
Provision for real estate losses		—			2,001
Real estate expenses		325			976
All other noninterest expenses		4,410			4,689
Earnings (loss) before income taxes		3,894			(4,303	)
Provision (benefit) for income taxes		1,741			(1,825	)
Net earnings (loss) before preferred dividend requirements		2,153			(2,478	)
Preferred dividend requirements (1)		427			409
Net earnings (loss) available to common stockholders	$	1,726		$	(2,887	)
Basic earnings (loss) per common share	$	0.08		$	(0.35	)
Diluted earnings (loss) per common share	$	0.08		$	(0.35	)
Average shares used for basic and diluted earnings (loss) per share (2)		21,126,489			8,270,812
Common shares outstanding at end of period		21,126,489			8,270,812
Common stock options/warrants outstanding at end of period		1,045,422			1,018,722
Yield on interest-earning assets		4.88	%		5.30	%
Cost of funds		2.96	%		3.36	%
Net interest margin		2.14	%		2.23	%
Return on average assets (annualized)		0.42	%		-0.42	%
Return on average common equity (annualized)		5.29	%		-5.20	%
Effective income tax rate		44.71	%		42.41	%
Efficiency ratio (3)		41	%		36	%
Average loans outstanding	$	1,329,413		$	1,680,810
Average securities outstanding		615,357			566,635
Average short-term investments outstanding		17,055			19,145
Average assets outstanding		2,045,999			2,335,592
Average interest-bearing deposits outstanding	$	1,732,180		$	1,961,132
Average borrowings outstanding		81,589			109,028
Average stockholders’ equity		186,823			214,235

Selected Financial Condition Information:	At Mar 31, 2011			At Dec 31, 2010			At Sep 30, 2010			At Jun 30, 2010			At Mar 31, 2010
Total assets	$	2,014,125		$	2,070,868		$	2,104,098		$	2,164,442		$	2,284,257
Cash and short-term investments		29,079			23,911			13,815			35,535			56,470
Securities held to maturity		589,940			614,335			613,844			621,244			491,067
Loans, net of unearned fees		1,300,546			1,337,326			1,363,312			1,395,564			1,634,140
Allowance for loan losses		32,400			34,840			32,250			30,350			28,300
Allowance for loan losses/net loans		2.49	%		2.61	%		2.37	%		2.17	%		1.73	%
Deposits		1,706,630			1,766,083			1,806,834			1,852,356			1,926,772
Borrowed funds and accrued interest payable		82,072			84,676			89,135			98,582			103,060
Preferred stockholder’s equity		23,948			23,852			23,755			23,659			23,563
Common stockholders’ equity		164,243			162,108			140,317			140,643			187,711
Common book value per share (4)		7.69			7.61			15.26			15.33			22.69
Loan chargeoffs for the quarter	$	4,513		$	386		$	298		$	85,483		$	13,979
Loan recoveries for the quarter		28			283			600			—			—
Real estate chargeoffs for the quarter		—			2,970			912			11,732			—
Security impairment writedowns for the quarter		105			351			293			18			530
Nonaccrual loans	$	45,192		$	52,923		$	38,560		$	18,927		$	96,248
Real estate owned, net of valuation allowance		27,064			27,064			38,792			34,259			57,858
Investment securities on a cash basis		4,475			2,318			2,670			2,963			2,981
Accruing troubled debt restructured (TDR) loans (5)		5,630			3,632			617			21,362			116,906
Loans 90 days past due and still accruing		3,879			7,481			16,865			8,788			3,629
Loans 31-89 days past due and still accruing (6)		21,785			11,364			5,264			13,066			14,427

(1) Represents dividend requirements on 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 reporting periods.

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

(4) Represents common stockholders’ equity less preferred dividends in arrears ($1.7 million and $1.4 million at March 31, 2011 and December 31, 2010 only) divided by common shares outstanding.

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

(6) At March 31, 2011, these loans were past due 31-59 days. Five loans ($12.3 million) matured - payments are current and extensions are in process, three loans ($6.0 million) are historically slow payers, one loan ($0.9 million) was brought current in April and one loan ($2.6 million) is expected to be extended.

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INTERVEST BANCSHARES CORPORATION

Consolidated Financial Highlights

	At or For The Period Ended
($ in thousands, except per share amounts)	Quarter Ended Mar 31, 2011			Year Ended Dec 31, 2010			Year Ended Dec 31, 2009			Year Ended Dec 31, 2008			Year Ended Dec 31, 2007
Balance Sheet Highlights:
Total assets	$	2,014,125		$	2,070,868		$	2,401,204		$	2,271,833		$	2,021,392
Cash and short-term investments		29,079			23,911			7,977			54,903			33,086
Securities held to maturity		589,940			614,335			634,856			475,581			344,105
Loans, net of unearned fees		1,300,546			1,337,326			1,686,164			1,705,711			1,614,032
Allowance for loan losses		32,400			34,840			32,640			28,524			21,593
Allowance for loan losses/net loans		2.49	%		2.61	%		1.94	%		1.67	%		1.34	%
Deposits		1,706,630			1,766,083			2,029,984			1,864,135			1,659,174
Borrowed funds and accrued interest payable		82,072			84,676			118,552			149,566			136,434
Preferred stockholder’s equity		23,948			23,852			23,466			23,080			—
Common stockholders’ equity		164,243			162,108			190,588			188,894			179,561
Common book value per share (1)		7.69			7.61			23.04			22.84			22.23
Market price per common share		2.55			2.93			3.28			3.99			17.22
Asset Quality Highlights
Nonaccrual loans	$	45,192		$	52,923		$	123,877		$	108,610		$	90,756
Real estate owned, net of valuation allowance		27,064			27,064			31,866			9,081			—
Investment securities on a cash basis		4,475			2,318			1,385			—			—
Accruing troubled debt restructured loans (2)		5,630			3,632			97,311			—			—
Loans past due 90 days and still accruing		3,879			7,481			6,800			1,964			11,853
Loans past due 31-89 days and still accruing		21,785			11,364			5,925			18,943			25,122
Loan chargeoffs		4,513			100,146			8,103			4,227			—
Loan recoveries		28			883			1,354			—			—
Real estate chargeoffs		—			15,614			—			—			—
Impairment writedowns on security investments		105			1,192			2,258			—			—
Statement of Operations Highlights:
Interest and dividend income	$	23,594		$	107,072		$	123,598		$	128,497		$	131,916
Interest expense		13,243			62,692			81,000			90,335			89,653
Net interest and dividend income		10,351			44,380			42,598			38,162			42,263
Provision for loan losses		2,045			101,463			10,865			11,158			3,760
Noninterest income		323			2,110			297			5,026			8,825
Noninterest expenses:
Provision for real estate losses		—			15,509			2,275			518			—
Real estate expenses		325			4,105			4,945			4,281			489
All other noninterest expenses		4,410			19,069			19,864			14,074			12,387
Earnings (loss) before income taxes		3,894			(93,656	)		4,946			13,157			34,452
Provision (benefit) for income taxes		1,741			(40,348	)		1,816			5,891			15,012
Net earnings (loss) before preferred dividend requirements		2,153			(53,308	)		3,130			7,266			19,440
Preferred dividend requirements (3)		427			1,667			1,632			41			—
Net earnings (loss) available to common stockholders	$	1,726		$	(54,975	)	$	1,498		$	7,225		$	19,440
Basic earnings (loss) per common share	$	0.08		$	(4.95	)	$	0.18		$	0.87		$	2.35
Diluted earnings (loss) per common share	$	0.08		$	(4.95	)	$	0.18		$	0.87		$	2.31
Adjusted net earnings (loss) used to calculate diluted earnings (loss) per common share	$	1,726		$	(54,975	)	$	1,498		$	7,225		$	19,484
Average common shares used to calculate:
Basic earnings (loss) per common share		21,126,489			11,101,196			8,270,812			8,259,091			8,275,539
Diluted earnings (loss) per common share		21,126,489			11,101,196			8,270,812			8,267,781			8,422,017
Common shares outstanding		21,126,489			21,126,489			8,270,812			8,270,812			8,075,812
Net interest margin (4)		2.14	%		2.11	%		1.83	%		1.79	%		2.11	%
Return on average assets		0.42	%		-2.42	%		0.13	%		0.34	%		0.96	%
Return on average common equity		5.29	%		-32.20	%		1.65	%		3.94	%		11.05	%
Effective income tax rate		44.71	%		43.08	%		36.72	%		44.77	%		43.57	%
Efficiency ratio (5)		41	%		41	%		46	%		33	%		24	%

(1) Represents common stockholders’ equity less preferred dividends in arrears ($1.7 million and $1.4 million at March 31, 2011 and December 31, 2010 only) divided by common shares outstanding.

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

(3) Represents dividend requirements on cumulative preferred stock held by the U.S. Treasury and amortization of related preferred stock discount.

(4) 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 2.14% for the quarter ended March 31, 2011, 2.32% for 2010, 1.68% for 2009, 1.74% for 2008 and 2.64% for 2007.

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

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