INTERVEST BANCSHARES CORPORATION
10 Rockefeller Plaza/New York, N.Y. 10020-1903
TEL: (212) 218-2800

Notice of Annual Meeting of Shareholders
To be held on Tuesday, May 4, 1999

NOTICE IS HEREBY GIVEN that the 1999 Annual Meeting of Shareholders
(the "Annual Meeting") of Intervest Bancshares Corporation (the "Company") will
be held on Tuesday, May 4, 1999, at 10:30 a.m., New York time, at the offices of
the Company, 10 Rockefeller Plaza (Suite 1015), New York, New York for the
following purposes:

1. To elect directors; and
2. To transact such other business as may properly come before the Annual
Meeting or any adjournments thereof.

Pursuant to the Bylaws, the Board of Directors has fixed the close of
business on March 15, 1999 as the record date for the determination of
shareholders entitled to notice of and to vote at the Annual Meeting. Only
holders of Class A or Class B Common Stock of record at the close of business on
that date will be entitled to notice of and to vote at the Annual Meeting of any
adjournment thereof.

By Order of the Board of Directors

New York, New York April 1, 1999 Jerome Dansker
Chairman of the Board

IT IS IMPORTANT THAT PROXIES BE RETURNED PROMPTLY. THEREFORE, WHETHER OR NOT YOU
PLAN TO BE PRESENT IN PERSON AT THE ANNUAL MEETING, PLEASE SIGN, DATE AND
COMPLETE THE ENCLOSED PROXY AND RETURN IT IN THE ENCLOSED ENVELOPE WHICH
REQUIRES NO POSTAGE IF MAILED IN THE UNITED STATES.

PROXY STATEMENT
1999 ANNUAL MEETING OF STOCKHOLDERS
MAY 4, 1999

INTERVEST BANCSHARES CORPORATION
10 Rockefeller Plaza (Suite 1015)
New York, New York 10020-1903
(212) 218-2800

This Proxy Statement is furnished in connection with the solicitation by the
Board of Directors (sometimes referred to herein as the "Board") of Intervest
Bancshares Corporation, a Delaware corporation (the "Company") of proxies for
use at the Annual Meeting of Stockholders (the "Annual Meeting"), to be held on
May 4, 1999, or any adjournment thereof, for the purposes set forth in the
accompanying Notice of Annual Meeting of Stockholders. This Proxy Statement and
the accompanying proxy are being mailed to stockholders commencing on or about
April 5, 1999. The Annual Report for the year ended December 31, 1998, including
financial statements, is being mailed to stockholders concurrently with the
mailing of this Proxy Statement.

You will find a form of proxy in the envelope in which you received this Proxy
Statement. Please sign and return this proxy in the enclosed postage-paid
envelope. A stockholder giving a proxy may revoke it at any time prior to the
commencement of the Annual Meeting by: filing a written notice of revocation
with the Secretary of the Company prior to the meeting; delivering to the
Secretary of the Company a duly executed proxy bearing a later date; or
attending the Annual Meeting, filing a written notice of revocation with the
Secretary of the meeting and voting in person.

If the enclosed form of proxy is properly signed and returned to the Company in
time to be voted at the Annual Meeting, the shares represented thereby will be
voted in accordance with the instructions marked thereon. Signed proxies with no
instructions thereon with respect to the proposal set forth in the accompanying
Notice of Annual Meeting will be voted FOR the election of the nominees as
director. If any other matters are properly brought before the Annual Meeting,
the persons named in the accompanying proxy will vote the shares represented by
such proxy on such matters as shall be determined by a majority of the Board of
Directors or its Executive Committee.

The voting securities of the Company entitled to vote at the Annual Meeting
consist of shares of Class A and Class B Common Stock. Only stockholders of
record at the close of business on March 15, 1999 are entitled to notice of and
to vote at the Annual Meeting. On that date, there were 2,186,088 shares of the
Company's Class A Common Stock and 305,000 shares of the Company's Class B
Common Stock issued and outstanding. The holders of the outstanding shares of
Class B Common Stock are entitled to vote for the election of two-thirds of the
directors of the Company rounded up to the nearest whole number, or seven
directors. The holders of the outstanding shares of Class A Common Stock of the
Company are entitled to vote for the election of the remaining directors of the
Company, or three directors. The holders of both Class A and Class B Common
Stock as of the record date are entitled to vote on all other matters to come
before the meeting, and each is entitled to one vote for each share held on the
record date.

A majority of the outstanding shares of Common Stock entitled to vote,
represented in person or by proxy, will constitute a quorum for the transaction
of business at the Annual Meeting. Abstentions and broker non-votes will be
counted as present for purposes of determining whether a quorum is present, but
will have no effect on the vote. If a quorum is present, the three nominees for
election by the holders of Class A Common Stock and the seven nominees for
election by the holders of Class B Common Stock who receive the highest number
of votes cast by holders of shares of Class A Common Stock and Class B Common
Stock, respectively, will be elected as directors of the Company.

SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT

The following table sets forth certain information regarding beneficial
ownership of the Company's Common Stock as of March 15, 1999 by (i) each person
who is known by the Company to be the beneficial owner of more than 5% of the
outstanding Common Stock of the Company, (ii) each of the Company's directors,
(iii) each executive officer of the Company and (iv) all current directors and
executive officers of the Company as a group.

Class A Common Stock Class B Common Stock
------------------------------------------ --------------------------------------
Name and Address of
Beneficial Holder Number of Shares Percent of Class(1) Number of Shares Percent of Class (1)
- ----------------- ---------------- ------------------- ---------------- -------------------

Helene D. Bergman 225,000 10.29% 75,000 15.00%
201 East 62nd Street
New York, New York 10021

Directors and Executive Officers
- --------------------------------

Lawrence G. Bergman, Director, 320,000(2) 14.03% 75,000 15.00%
Vice President and Secretary

Michael A. Callen, Director 50,000(3) 2.25% 0 0%

Lowell S. Dansker, Director, 545,000(2) 23.89% 150,000 30.00%
President and Treasurer

Jerome Dansker, Chairman, 585,965(4) 21.14% 200,000(4) 40.00%
Executive Vice President, Director

Milton F. Gidge, Director 37,000(5) 1.67% 0 0%

William F. Holly, Director 34,500(6) 1.56% 0 0%

Edward J. Merz, Director 5,200(7) 0.24% 0 0%

Thomas E. Willett, Director 6,000(8) 0.27% 0 0%

David J. Willmott, Director 87,500(9) 3.90% 0 0%

Wesley T. Wood, Director 102,500(10) 4.55% 0 0%

All directors and executive
officers as a group (10 persons) 1,773,665 55.69% 425,000 85.00%

- -----------------------------

(1) Percentages have been computed based upon the total outstanding shares
of the Company plus, for each person and the group, shares that person
or the group has the right to acquire pursuant to warrants.
(2) Includes 95,000 shares of Class A common stock issuable upon the exercise
of warrants.
(3) Includes 38,750 shares of Class A common stock issuable upon the exercise
of warrants.
(4) The 585,965 shares of Class A common stock are issuable upon the
exercise of warrants. The shares of Class B common stock include
195,000 shares issuable upon exercise of warrants.
(5) Includes 32,000 shares of Class A common stock issuable upon the exercise
of warrants.
(6) Includes 21,500 shares of Class A common stock issuable upon the exercise
of warrants.
(7) Includes 5,000 shares of Class A common stock issuable upon the exercise
of warrants.
(8) Includes 3,000 shares of Class A common stock issuable upon the exercise
of warrants.
(9) Includes 57,500 shares of Class A common stock issuable upon the exercise
of warrants.
(10) Includes 65,000 shares of Class A common stock issuable upon the exercise
of warrants.

PROPOSAL ONE
ELECTION OF DIRECTORS

At the meeting, it is proposed to elect a board of 10 directors, each to serve
until the next annual meeting or until a successor is elected and qualified. If
no contrary specification is made, the persons named in the proxy card will vote
for the election of the nominees named below. If any of these persons should
decline election or should by reason of unexpected occurrence not be able to
serve, the persons named in the proxy card may exercise discretionary authority
to vote for a substitute or substitutes. All of the nominees are presently
serving as directors of the Company and, with the exception of Mr. Willett, were
elected by the shareholders. Mr. Willett was elected by the Board of Directors
to fill a vacancy created when the size of the Board of Directors was, as
permitted by the Bylaws, increased from 9 to 10.

The names of the nominees and certain information about them are set forth
below.

For election by the holders of Class A Common Stock:

Michael A. Callen, age 58, serves as a Director of the Company, and has
served in such capacity since May, 1994. Mr Callen received a Bachelor of Arts
degree from the University of Wisconsin in Economics and Russian. Mr. Callen has
been Senior Advisor, The National Commercial Bank, Jeddah, Kingdom of Saudi
Arabia since May, 1993. From the fall of 1992 through February of 1993, he was
an Adjunct Professor of International Banking at Columbia University Business
School. From 1987 until February of 1992 he was a Director and Sector Executive
at Citicorp/Citibank, responsible for corporate banking activities in North
America, Europe and Japan. He is also a Director of Intervest Corporation of New
York and AMBAC, Inc.

Milton F. Gidge, age 69, serves as a Director of the Company, and has
served in such capacity since March, 1994. Mr. Gidge received a Bachelor of
Business Administration degree in Accounting from Adelphi University and a
Masters Degree in Banking and Finance from New York University. Mr. Gidge
retired in 1994 and, prior to his retirement, was a Director and Chairman-Credit
Policy of Lincoln Savings Bank, F.S.B. (headquartered in New York City). He is
also a Director of Intervest Corporation of New York, Interboro Mutual Indemnity
Insurance Company and Vicon Industries, Inc. Mr. Gidge was an officer of Lincoln
Savings Bank, F.S.B. for more than five years.

William F. Holly, age 70, serves as a Director of the Company and has
served in such capacity since March, 1994. Mr. Holly received a Bachelor of Arts
degree in Economics from Alfred University. Mr. Holly is Chairman of the Board
and CEO of Sage, Rutty & Co., Inc., members of the Boston Stock Exchange, with
offices in Rochester, New York and Canandaigua, New York, and is also a Director
of Intervest Corporation of New York and a Trustee of Alfred University. Mr.
Holly has been an officer and director of Sage, Rutty & Co., Inc. for more than
five years.

For election by the holders of Class B Common Stock:

Lawrence G. Bergman, age 54, serves as a Director, Vice President and
Secretary of the Company and has served in such capacities since the Company was
organized. Mr. Bergman received a Bachelor of Science degree and a Master of
Engineering (Electrical) degree from Cornell University, and a Master of Science
in Engineering and a Ph.D degree from The Johns Hopkins University. Mr. Bergman
is also Co-Chairman of the Board of Directors and a member of the Loan Committee
of Intervest Bank and a Director, Vice-President and Secretary of Intervest
Corporation of New York. During the past five years Mr. Bergman has been
actively involved in the ownership and operation of real estate and mortgage
investments.

Jerome Dansker, age 80, serves as Chairman of the Board of Directors and
Executive Vice President of the Company. He has served as Executive Vice
President since 1994 and as Chairman of the Board since 1996. Mr. Dansker
received a Bachelor of Science degree from the New York University School of
Commerce, Accounts and Finance, a law degree from the New York University School
of Law, and is admitted to practice as an attorney in the State of New York. Mr.
Dansker is also a Director and Chairman of the Loan Committee of Intervest Bank
and is Chairman of the Board of Directors and Executive Vice President of
Intervest Corporation of New York. During the past five years, Mr. Dansker has
been actively involved in the ownership and operation of real estate and
mortgage investments.

Lowell S. Dansker, age 48, serves as a Director, President and
Treasurer of the Company, and has served in such capacities since the Company
was organized. Mr. Dansker received a Bachelor of Science in Business
Administration from Babson College, a law degree from the University of Akron
School of Law, and is admitted to practice as an attorney in New York, Ohio,
Florida and the District of Columbia. Mr. Dansker is also Co-Chairman of the
Board of Directors and a member of the Loan Committee of Intervest Bank and a
Director, President and Treasurer of Intervest Corporation of New York. During
the past five years, Mr. Dansker has been actively involved in the ownership and
operation of real estate and mortgage investments.

Edward J. Merz, age 67, serves as a Director of the Company and has
served in such capacity since February, 1998. Mr. Merz received a Bachelor of
Business Administration from City College of New York and is a graduate of the
Stonier School of Banking at Rutgers University. Mr. Merz is Chairman of the
Board of Directors of the Suffolk County National Bank of Riverhead and of its
parent, Suffolk Bancorp, and has been an officer and director of those companies
for more than five years. He is also a director of the Independent Bankers
Association of New York and a director of Intervest Corporation of New York.

Thomas E. Willett, age 51, serves as a Director of the Company, and has
served in such capacity since March, 1999. Mr. Willett received a Bachelor of
Science Degree from the United States Air Force Academy and a law degree from
Cornell University School of Law. Mr. Willett has been a partner of Harris Beach
& Wilcox, LLP, a law firm in Rochester, New York, for more than five years and
is a director of Intervest Corporation of New York.

David J. Willmott, age 61, serves as a Director of the Company, and has
served in such capacity since March, 1994. Mr. Willmott is a graduate of Becker
Junior College and attended New York University Extension and Long Island
University Extension of Southampton College. Mr. Willmott is the Editor and
Publisher of Suffolk Life Newspapers, which he founded more than 25 years ago
and is a Director of Intervest Corporation of New York.

Wesley T. Wood, age 56, serves as a Director of the Company, and has served
in such capacity since March, 1994. Mr. Wood received a Bachelor of Science
degree from New York University, School of Commerce. Mr. Wood is President of
Marketing Capital Corporation, an international marketing consulting and
investment firm which he founded in 1973. He is also a Director of Intervest
Corporation of New York, a Director of the Center of Direct Marketing at New
York University, a member of the Marketing Committee at Fairfield University in
Connecticut, and a Trustee of St. Dominics R.C. Church in Oyster Bay, New York.

The Board of Directors recommends a vote "FOR" the election
of the foregoing nominees for director.

Mr. Bergman's wife is the sister of Lowell S. Dansker, and Jerome Dansker
is the father of Lowell S. Dansker and Mrs. Bergman. Otherwise, there are no
family relationships between any director, executive officer or any person
nominated or chosen by the Board of Directors to become a director or executive
officer.

Meetings of the Board of Directors and Committees.

The Board of Directors held two meetings in 1998. During the period
that each director served as such, all of the directors (except Messrs. Callen
and Gidge) attended at least 75% of the total meetings held by the Board of
Directors and by the Committees on which they served during 1998.

Committees of the Board of Directors.

Currently, the Board of Directors has the following standing committees:

Executive Committee. Members of the Executive Committee are Lawrence G.
Bergman, Jerome Dansker and Lowell S. Dansker. The Executive Committee exercises
all of the power of the Board between meetings of the Board. The Executive
Committee held seven meetings in 1998.

Audit Committee. Members of the Audit Committee are Lawrence G. Bergman,
Milton F. Gidge and Wesley T. Wood. The purpose of the Audit Committee is to
review the results of operations of the Company with officers of the Company who
are responsible for accounting matters and, from time to time, with the
Company's independent auditors. The Audit Committee held one meeting in 1998.

Compensation of Directors.

Directors of the Company receive a fee of $500 per Board meeting attended.
The Chairman of the Executive Committee receives $100 per meeting attended and
the other members of the Executive Committee receive $25 per meeting attended.

EXECUTIVE COMPENSATION

Executive Compensation Summary Table

The following table sets forth information concerning total compensation
paid during the last three years to Intervest Bank's chief executive officer. No
other officer of the Company or its subsidiaries had annual compensation in
excess of $100,000.
SUMMARY COMPENSATION TABLE

Annual Compensation Long-Term Compensation
----------------------------------------------------------- ------------------------------
Name and Principal Other Annual
Position Year Salary Bonuses Compensation Awards(1) Pay-Outs
- ------------------ ---- -------- ------- ------------ --------- --------

Keith A. Olsen, 1998 $125,000 $10,000 ---- 5,000 ------
President
1997 $115,000 $10,000 ---- ------- ------

1996 $ 95,000 $10,000 ---- 15,000 ------
- --------------------------------------------

(1) These represent warrants to purchase the number of shares of Class A
Common Stock set forth in the table.

Employment Agreement with Keith A. Olsen

Intervest Bank has an employment agreement with Mr. Keith A. Olsen that expires
December 31, 2000. The agreement provides for a base annual salary of not less
than $125,000 and also provides for the payment of up to two years' severance
upon termination of employment.

CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS

Intervest Bank has had, and expects to have in the future, various loan
and other banking transactions in the ordinary course of business with directors
and executive officers of Intervest Bank (or associates of such persons). In the
opinion of management, all such transactions: (i) have been or will be made in
the ordinary course of business, (ii) have been and will be made on
substantially the same terms, including interest rates and collateral on loans,
as those generally prevailing at the time for comparable transactions with
unrelated persons, and (iii) have not and will not involve more than the normal
risk of collectability or present other unfavorable features. The total dollar
amount of extensions of credit, including unused lines of credit, to directors
and executive officers and any of their associates was $3.9 million as of
December 31, 1998, which represented approximately 20% of total stockholders'
equity.

The Company, as well as corporations affiliated with certain directors
of the Company, have in the past and may in the future participate in mortgage
loans originated by Intervest Bank. Such participations are on substantially the
same terms as would apply for comparable transactions with other persons and the
interest of the participants in the collateral securing those loans is pari
passu with Intervest Bank.

Intervest Bank leases office space from a corporation in which Robert
J. Carroll, a director of Intervest Bank, is an officer and in which he has an
ownership interest. Mr. William F. Holly, a director of the Company, is Chairman
of the Board and Chief Executive Officer of Sage, Rutty & Co., Inc., which was
the underwriter in the Company's public offering of convertible debentures
during 1998 and, in that capacity, Sage Rutty & Co. received aggregate
compensation of approximately $500,000. Mr. Thomas E. Willett, a director of the
Corporation, is a partner in the law firm of Harris Beach & Wilcox, LLP, which
firm provided legal services to the Company and its subsidiaries during 1998.

Except for the transactions described above and outside of normal
customer relationships, none of the directors, officers or present shareholders
of the Company and no corporations or firms with such persons or entities are
associated, currently maintains or has maintained since the beginning of the
last fiscal year, any significant business or personal relationship with the
Company or with Intervest Bank, other than such as arises by virtue of such
position or ownership interest in the Company or Intervest Bank.

COMPLIANCE WITH SECTION 16(a) OF THE SECURITIES EXCHANGE ACT OF 1934

Section 16(a) of the Securities Exchange Act of 1934 requires the
Company's executive officers, directors and persons who beneficially own more
than 10% of the Company's Common Stock to file initial reports of ownership and
reports of changes in ownership with the Securities and Exchange Commission
("SEC"). Such persons are required by SEC regulations to furnish the Company
with copies of all Section 16(a) forms filed by such persons.

Based solely on the Company's review of such forms furnished to the
Company and written representations from certain reporting persons, the Company
believes that all filing requirements applicable to the Company's executive
officers, directors and more than 10% stockholders were satisfied.

STOCKHOLDER PROPOSALS TO BE PRESENTED
AT NEXT ANNUAL MEETING

Proposals of stockholders intended to be presented at the next annual
meeting of stockholders of the Company (i) must be received by the Company at
its offices at 10 Rockefeller Plaza (Suite 1015), New York, New York 10020 no
later than December 1, 1999 and (ii) must satisfy the conditions established by
the Securities and Exchange Commission for stockholder proposals to be included
in the Company's Proxy Statement for that meeting. The persons named in the
proxies distributed by the Company may use their discretion in voting proxies
with respect to shareholder proposals not included in the proxy statement for
the 2000 annual meeting, unless the Company receives notices of such proposals
prior to February 19, 2000.

OTHER MATTERS

The cost of solicitation of proxies by the Company will be borne by the
Company. In addition to the solicitation of proxies by mail, the Company,
through its directors, officers and regular employees, may also solicit proxies
personally or by telephone, telegraph or fax. The Company will request persons,
firms and corporations holding shares of Common Stock in their names or in the
names of their nominees, which are beneficially owned by others, to send proxy
material to and obtain

proxies from such beneficial owners and will reimburse such holders for their
reasonable expenses in doing so.

As of this date, the Board of Directors does not know of any business
to be brought before the meeting other than as specified above. However, if any
other matters properly come before the meeting, it is the intention of the
persons named in the enclosed proxy to vote in such manner as may be determined
by a majority of the Board of Directors or its Executive Committee.

Copies of the 1998 Annual Report of the Company are included in this
mailing to stockholders and additional copies may be obtained from the Secretary
of the Company, 10 Rockefeller Plaza (Suite 1015), New York, New York 10020.

By Order of the Board of Directors
Lawrence G. Bergman
Secretary

Dated: April 1, 1999

A copy of the Annual Report of the Company on Form 10-KSB for its most
recent fiscal year, as filed with the Securities and Exchange Commission, will
be furnished upon request and without charge to beneficial holders of the Class
A Common Stock of the Company. Written requests should be directed to:
Secretary, 10 Rockefeller Plaza (Suite 1015), New York, New York 10020.
Telephone inquiries should be directed to (212) 218-2800.

PROXY INTERVEST BANCSHARES CORPORATION
PROXY SOLICITED BY THE BOARD OF DIRECTORS
Annual Meeting of Shareholders On May 4, 1999

The undersigned, revoking any proxy heretofore given, hereby
constitutes and appoints Lawrence G. Bergman, Jerome Dansker and Lowell S.
Dansker, or any of them, proxies of the undersigned, each with full power of
substitution, to vote all shares of Class A Common Stock of INTERVEST BANCSHARES
CORPORATION (the "Company") which the undersigned is entitled to vote at the
Annual Meeting of Shareholders to be held Wednesday, May 4, 1999 at 10:30 A.M.
local time (the "Annual Meeting"), and at any adjournment or postponement
thereof, as hereinafter specified with respect to the following proposals, more
fully described in the Notice of and Proxy Statement for the Annual Meeting,
receipt of which is hereby acknowledged. The Board of Directors recommends a
vote FOR all of the director nominees.

DIRECTOR NOMINEES:

Michael A. Callen, Milton F. Gidge, William F. Holly

WITHHELD
FOR all nominees for all
listed above Nominees

1. Election of |_| |_|
Directors

To withhold authority to vote for any individual
nominee, print the name(s) on the lines below.
________________________________________________
________________________________________________
________________________________________________
________________________________________________

2. In their discretion, upon any other business which may properly come
before the Annual Meeting or any adjournment or postponement thereof.

THE SHARES REPRESENTED BY THIS PROXY WILL BE VOTED FOR THE PROPOSAL SET FORTH
HEREIN UNLESS A CONTRARY CHOICE IS SPECIFIED. SAID PROXIES WILL USE THEIR
DISCRETION WITH RESPECT TO ANY OTHER MATTERS WHICH PROPERLY COME BEFORE THE
ANNUAL MEETING OR ANY ADJOURNMENT THEREOF.

Signature __________________________ Date ____________
Signature __________________________ Date ____________
Note: (Please sign exactly as name appears hereon. For joint accounts, each
joint owner should sign. Executors, administrators, trustees, etc. should so
indicate when signing).
COMPLETE, DATE, SIGN AND MAIL THIS PROXY IN THE ENCLOSED POSTAGE-PAID ENVELOPE.

PROXY INTERVEST BANCSHARES CORPORATION
PROXY SOLICITED BY THE BOARD OF DIRECTORS
Annual Meeting of Shareholders On May 4, 1999

The undersigned, revoking any proxy heretofore given, hereby
constitutes and appoints Lawrence G. Bergman, Jerome Dansker and Lowell S.
Dansker, or any of them, proxies of the undersigned, each with full power of
substitution, to vote all shares of Class B Common Stock of INTERVEST BANCSHARES
CORPORATION (the "Company") which the undersigned is entitled to vote at the
Annual Meeting of Shareholders to be held Wednesday, May 4, 1999 at 10:30 A.M.
local time (the "Annual Meeting"), and at any adjournment or postponement
thereof, as hereinafter specified with respect to the following proposals, more
fully described in the Notice of and Proxy Statement for the Annual Meeting,
receipt of which is hereby acknowledged. The Board of Directors recommends a
vote FOR all of the director nominees.

DIRECTOR NOMINEES:

Lawrence G. Bergman, Jerome Dansker, Lowell S. Dansker, Edward J. Merz, Thomas
E. Willett, David J. Willmott, Wesley T. Wood

WITHHELD
FOR all nominees for all
listed above Nominees

1. Election of |_| |_|
Directors

2. In their discretion, upon any other business which may properly come
before the Annual Meeting or any adjournment or postponement thereof.