Exhibit 99.1



Mrs. Jean Dansker                                                October 4, 2006
860 Fifth Avenue
New York, New York 10021

      Re:   Death Benefit Payments
            ----------------------

Dear  Jean:

      We  are  writing  in  connection with the death benefit payments that both
Intervest  Bancshares  Corporation  ("IBC")  and  Intervest Mortgage Corporation
("IMC")  are  obligated  to  make to you pursuant to the terms of the employment
agreements  between  Jerome  Dansker  and  those  two  companies.

      As  you  know,  each  of  those  employment  agreements  contained similar
provisions  calling for the payment to you of an amount called the "Distribution
Amount" during a period called the "Distribution Term." The Distribution Amount,
in  the  case  of IBC is 50% of the amounts that would have been paid monthly to
Jerome  as salary by IBC and the Distribution Term is the balance of the term of
the  agreement,  or  through June 30, 2014. In the case of IMC, the Distribution
Amount  is  25%  of the amounts that would have been paid to Jerome as salary by
IMC and the Distribution Term is likewise through June 30, 2014.

      As  we  have  discussed,  there  is  some ambiguity in the language of the
employment agreements as to whether the payments described above were to paid to
you  in  a  lump  sum,  or  were  to  be paid in monthly installments during the
Distribution  Term.  Based  on  our  prior  discussions,  you  have agreed that,
notwithstanding  any  language to the contrary in the agreement, you are willing
to accept those payments in the form of monthly payments during the Distribution
Term, in full satisfaction of the obligations of IBC and IMC to you. This letter
will  also  confirm  the  obligations  of both IBC and IMC, in the event of your
death  prior  to  the  end  of  the Distribution Term, to pay the balance of any
remaining Distribution Amount to your estate in a lump sum.

      If  you  are  in  agreement  with  the approach set forth above, please so
indicate  by signing and returning one copy of this letter agreement. You should
also feel free to contact us if you have any questions concerning these matters.

                                      Very truly yours,
                                      Intervest Bancshares Corporation

                                      By: /s/ Lowell S. Dansker
                                          ---------------------
                                          Lowell S. Dansker, Chairman

                                      Intervest Mortgage Corporation

                                      By: /s/ Lowell S. Dansker
                                          ---------------------
                                          Lowell S. Dansker, Chairman

Agreed and accepted this
4th day of October, 2006:
/s/ Jean Dansker
- ----------------
    Jean Dansker