Exhibit 99.1

INTERVEST BANCSHARES CORPORATION

Reports Earnings of $2.6 Million or $0.12 Per Share for 2011 Third Quarter

Business Editors – New York – (Business Wire – October 17, 2011)

Intervest Bancshares Corporation (NASDAQ-GS: IBCA), parent company of Intervest National Bank, today reported its 2011 third quarter financial results. Financial highlights follow.

Net earnings for Q3-11 increased by $3.3 million over Q3-10 due to the following: a $2.0 million increase in noninterest income primarily from loan prepayments, including $0.9 million of income from one loan; a $1.7 million decrease in the total provision for loan and real estate losses resulting from fewer credit rating downgrades on loans and writedowns of REO; a $1.6 million decrease in noninterest expenses reflecting decreases of $0.8 million in FDIC insurance premiums, $0.7 million in data processing costs and $0.2 million in professional fees; a $0.5 million decrease in real estate expenses primarily reflecting less REO and a $0.3 million increase in net interest and dividend income (as described below). The total of these items was partially offset by a $2.8 million increase in income tax expense (due to pre-tax income of $5.8 million in Q3-11 versus a $0.3 million loss in Q3-10). The effective tax rate was 47% in Q3-11 versus 25% in Q3-10. The 2010 rate was negatively impacted to a greater degree by a deductibility limit on certain executive compensation resulting from IBC’s participation in the TARP program.

The increase in net interest and dividend income over Q3-10 reflected a 15 basis point improvement in the net interest margin, partially offset by a planned decrease in the Bank’s assets and liabilities as well as decreased lending opportunities. In Q3-11 total average interest-earning assets decreased by $82 million from Q3-10, reflecting a $155 million decrease in loans, partially offset by an $81 million increase in security investments. At the same time, average deposits and borrowed funds decreased by $103 million and $15 million, respectively, while average stockholders’ equity increased by $28 million (primarily from a common stock offering completed in October 2010). The decrease in average assets positively impacted the Bank’s regulatory capital ratios.

The higher net interest margin was attributable to lower rates paid on deposits (particularly CDs) and the ongoing repayment of maturing higher-cost brokered CDs and FHLB borrowings, largely offset by the negative impact from the net decrease in the loan portfolio. Overall, the yield on average earning assets decreased by 22 basis points to 4.74% in Q3-11, from 4.96% in Q3-10, due to the impact of payoffs of higher yielding loans and calls of security investments due to declining interest rates, coupled with the re-investment of a large portion of these cash inflows into securities at lower interest rates. The average cost of funds decreased at a faster pace by 34 basis points to 2.81% in Q3-11, from 3.15% in Q3-10, due to the factors noted above.

Net earnings for the first nine months of 2011 amounted to $6.8 million, or $0.32 per diluted common share, compared to a net loss of $55.4 million, or $6.39 per share for the same 2010 period. The improvement resulted from a $105.3 million decrease in the total provision for loan and real estate losses, a $2.7 million decrease in real estate expenses, a $2.3 million increase in noninterest income and a $2.1 million decrease in noninterest expenses, the total of which was partially offset by a $2.3 million decrease in net interest and dividend income and a $47.9 million increase in income tax expense. The net loss in the 2010 period was primarily driven by a bulk sale in May of nonperforming and underperforming assets as discussed in prior releases. The assets sold aggregated to $207 million and consisted of $192 million of loans and $15 million of REO. The assets were sold at a substantial discount to their net carrying values. As a result of this transaction, a $79 million combined provision for loan and real estate losses was recorded, which after taxes contributed approximately $44 million, or 79%, to the reported loss. The reasons for the changes in the other factors noted are similar to those described earlier regarding the quarterly variances. At September 30, 2011, the Company had a net deferred tax asset totaling $41.1 million, which included unused net operating loss carryforwards (NOLs) of $40 million for Federal purposes and $72 million for state and local purposes. The NOLs, which arose from the bulk sale, are available to reduce taxes payable on future taxable income.

Total assets at September 30, 2011 decreased to $1.99 billion from $2.07 billion at December 31, 2010, primarily reflecting a decrease in loans, partially offset by an increase in security investments. Loans totaled $1.20 billion at September 30, 2011, a $138 million decrease from $1.34 billion at December 31, 2010. The decrease reflected $180.1 million of principal repayments (resulting from payoffs and amortization), $7.6 million of loan chargeoffs and $1.7 million transferred to REO, partially offset by $50.3 million of new originations. New loan originations for the first nine months of 2010 amounted to $46 million.

Nonaccrual loans and REO aggregated to $87 million, or 4.4% of total assets, at September 30, 2011, compared to $80 million, or 3.9%, at December 31, 2010. Nonaccrual loans totaled $60 million at September 30, 2011 and $53 million at December 31, 2010 and included $37 million (9 loans) and $21 million (6 loans) of performing TDRs at each date, respectively. The increase in TDRs was primarily due to a $14.8 million nonaccrual loan restructured in June, which included $0.5 million of past due interest recovered as part of the settlement. The new terms call for interest payments at 5% in year one, increasing thereafter at predetermined amounts. All TDRs classified as nonaccrual have performed as agreed under their renegotiated terms and interest income is being recorded on a cash basis. In the first nine months of 2011, based on updated appraisals received on the underlying collateral properties, we charged off a portion ($4.7 million in principal) of five TDRs. The borrowers remain obligated to pay all principal amounts due. The Company does not own or originate construction/development loans.

The allowance for loan losses at September 30, 2011 was $32.4 million, representing 2.70% of total net loans, compared to $34.8 million, or 2.61%, at December 31, 2010. The overall allowance included specific reserves for impaired loans (comprised of all of our nonaccrual loans as well as accruing TDRs) at each date totaling $7.2 million.

Securities held to maturity increased by $63.8 million to $678.1 million at September 30, 2011 from $614.3 million at December 31, 2010, due to new purchases exceeding calls and maturities. The growth in the security investments has been a function of decreased lending opportunities. At September 30, 2011, the portfolio, comprised mainly of U.S. government agency debt securities, had a weighted-average yield to earliest call date of 1.47% and a weighted-average remaining contractual maturity of 4.9 years. The Bank invests in U.S. government agency debt obligations to emphasize safety and liquidity, and does not own or invest in collateralized debt obligations, collateralized mortgage obligations or derivatives.

Deposits at September 30, 2011 decreased to $1.68 billion from $1.77 billion at December 31, 2010, primarily reflecting an $89 million decrease in CD accounts. Borrowed funds and related interest payable at September 30, 2011 decreased to $78 million, from $85 million at December 31, 2010, due to the maturity and repayment of $8 million of FHLB borrowings, partially offset by a $1.7 million increase in accrued interest payable on trust preferred securities. As required by our regulators and as permitted by the underlying documents, since February 2010 we have suspended the payment of interest on $55 million of trust preferred securities as well as the declaration and payment of TARP dividends on $25 million of preferred stock held by the U.S. Treasury. Stockholders’ equity increased to $194 million at September 30, 2011 from $186 million at December 31, 2010, due to $8 million of net earnings before preferred dividend requirements.

Intervest Bancshares Corporation (IBC) is a bank holding company. Its principal operating subsidiary is Intervest National Bank (INB), 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. IBC’s Common Stock is listed on the NASDAQ Global Select Market: Trading Symbol IBCA. This 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 adversely affect our business, financial condition and results of operations. The following factors, among others, could cause actual results to differ materially from those set forth in forward looking statements: the regulatory agreements to which IBC and INB are currently subject to and any operating restrictions arising there from including availability of regulatory approvals or waivers; changes in economic conditions and real estate values both nationally and in our market areas; changes in our borrowing facilities, volume of loan originations and deposit flows; changes in the levels of our non-interest income and provisions for loan and real estate losses; changes in the composition and credit quality of our loan portfolio; legislative or regulatory changes, including increased expenses arising there from; changes in interest rates which may reduce our net interest margin and net interest income; increases in competition; technological changes which we may not be able to implement; changes in accounting or regulatory principles, policies or guidelines; changes in tax laws and our ability to utilize deferred tax assets, including NOLs; and our ability to attract and retain key members of management. Reference is made to IBC’s filings with the SEC for further discussion of risks and uncertainties regarding our business. Historical results are not necessarily indicative of our future prospects.

Contact: Lowell S. Dansker, Chairman; Phone 212-218-2800 Fax 212-218-2808.

Selected Consolidated Financial Information Follows.

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INTERVEST BANCSHARES CORPORATION

Selected Consolidated Financial Information

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INTERVEST BANCSHARES CORPORATION

Consolidated Financial Highlights

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