EXHIBIT 99.1
(BW) (INTERVEST-BANCSHARES) (IBCA)
INTERVEST BANCSHARES CORPORATION
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ANNOUNCES SETTLEMENT OF CLASS ACTION
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Business Editors - New York - (Business Wire - May 15, 2006)
Intervest Bancshares Corporation (NASDAQ; IBCA) today reported that, after
the mailing of its proxy statement for its annual meeting of shareholders to be
held on May 25, 2006, a lawsuit was filed in the Court of Chancery of the State
of Delaware, individually and as a class action on behalf of Class A
stockholders. The action challenges the proposed amendment and extension of
warrants held by the Company's Chairman, which is one of the items on the agenda
for the annual meeting.
The Company also reported that, although it denies any wrongdoing or
liability, it determined that it is in the best interests of the Company and its
stockholders to reach a prompt and amicable settlement with respect to the
action. In that regard, the Company entered into a Memorandum of Understanding
with the plaintiff in the matter. The Memorandum provides, among other things,
that: (i) if the amendments are approved by the stockholders, the authority
conferred on the directors will not provide for an extension of the terms of the
warrants for more than 2 years; (ii) in determining incentive compensation of
the Chairman, the Company's Compensation Committee will take into consideration
any extension of the term of the warrants, the value of the extension and any
related expense to the Company; and (iii) the Company will send its shareholders
a supplement to its proxy statement. A copy of the proposed supplement to the
proxy statement was filed today with the Securities and Exchange Commission and
is available for review at the Commission's website at http://www.sec.gov. The
parties have agreed to move forward with a Stipulation of Settlement and
dismissal of the action upon the terms of the Memorandum, although any such
Settlement is subject to the approval by the Court of Chancery.
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 five full-service
banking offices in Clearwater and Gulfport, Florida; Intervest Mortgage
Corporation, a mortgage investment company; and Intervest Securities
Corporation, a broker/dealer and an NASD member firm. Additionally, Intervest
National Bank has received regulatory permission to open an additional branch
office at 483 Mandalay Avenue in Clearwater Beach, Florida. The Bank expects to
complete renovations and open the office by August 1, 2006. 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 National 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 in the Company's market areas; changes in
policies by regulatory agencies; fluctuations in interest rates; demand for
loans; 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: JEROME DANSKER, CHAIRMAN
Intervest Bancshares Corporation, One Rockefeller Plaza (Suite 400), New York,
New York 10020-2002
212-218-2800 Fax - 212-218-2808