Presentation Materials for Sandler O'Neill Financial Services Conference

Disclaimer

This presentation contains forward-looking statements

that involve risks and uncertainties. These forward-looking

statements are based on management’s current

expectations. Porter Bancorp’s actual results in future

periods may differ materially from those currently

expected due to various factors, including those discussed

in the “Risk Factors”

section of the Company’s Form S-1

Registration Statement (Reg. No. 333-133198) and

subsequent periodic reports filed with the Securities and

Exchange Commission. The forward-looking statements in

this presentation are made as of the date of the

presentation and Porter Bancorp does not assume any

responsibility to update these statements.

IPO Date:

NSDQ Symbol:

Shares Outstanding:

Market Capitalization:

Average Daily Volume:

Insider Ownership:

September 22, 2006

PBIB

7.62 Million

$173 Million

2,972 Shares

69%

Note:

(1) Based on November 10, 2006 closing price of $22.75

(2) For the last 30 calendar days

Company Overview

(1)

(2)

Headquartered in Louisville, KY

13 branches

$1.0 billion in assets

$817 million in loans

$802 million in deposits

Note:

(1) Financial data as of and for the 9 months ended September 30, 2006

Focused on developing the I-65

corridor

Franchise Overview

largest city in the U.S.

12 counties with over 1.2 million

residents

Economic growth is greater

than

the national average

Strong commercial loan demand

Diversified economy

Large employers include UPS, GE,

Humana, YUM! Brands, Ford

Recent opening of Best Buy tech

support center

Notes:

(1) In millions; deposits as of June 30, 2006; excludes $335 million of Ascencia deposits

(2) In millions; deposits as of June 30, 2006; Source: SNL Financial

Louisville and Louisville Area Market

Market Snapshot

Market Characteristics

PBIB Deposits:

$223

PBIB Branches:

Total Market Deposits:

$15,221

PBIB Market Share:

10 of 33 Depositories

Region

Nat'l Rank

Med. Household Income:

$50,095

81.3%

Proj. HHI Growth '06-'11:

19.8%

96.6%

Proj. Pop. Growth '06-'11:

2.2%

53.4%

(1)

(2)

Several

stable

community

markets

Stable

source

deposits

and

loans

Lower cost of funds

Porter’s

main

back-office

location

Predominantly service related

businesses

Notes:

(1) In millions; deposits as of June 30, 2006

(2) In millions; deposits as of June 30, 2006; Source: SNL Financial

South Central Kentucky Market

Market Snapshot

Market Characteristics

PBIB Deposits:

(1)

$206

PBIB Branches:

Total Market Deposits:

(2)

$763

PBIB Market Share:

1 of 10 Depositories

Region

Nat'l Rank

Med. Household Income:

$30,708

10.3%

Proj. HHI Growth '06-'11:

14.6%

51.9%

Proj. Pop. Growth '06-'11:

3.6%

63.1%

largest city in Kentucky

425,000 person labor market

Attractive growth market

Major employers include GM

(Corvette) and RR Donnelley

Future expansion focus

Tri-modal business center

Bowling Green / Glasgow Market

Notes:

(1) In millions; deposits as of June 30, 2006

(2) In millions; deposits as of June 30, 2006; Source: SNL Financial

Market Snapshot

Market Characteristics

PBIB Deposits:

(1)

$50

PBIB Branches:

Total Market Deposits:

(2)

$1,931

PBIB Market Share:

10 of 17 Depositories

Region

Nat'l Rank

Med. Household Income:

$38,068

41.2%

Proj. HHI Growth '06-'11:

17.1%

85.6%

Proj. Pop. Growth '06-'11:

4.2%

66.8%

Note:

(1) J. Chester

Porter

and

Maria

Bouvette

acquired

banks

1985

–

1986;

Bill

Porter

participated

the

bank

acquisitions

Successful Track Record

1988

Porter Bancorp

organized: holding co.

with 3 banks

(1)

1988 –

1999

Acquired 2 banks

($99M in assets)

1999

Established

Ascencia

Bank

1999 –

2005

Acquired 2 banks

($82M in assets)

Dec.

31, 2005

Consolidated banks into PBI

Bank; acquired minority

interests; converted from S to

C Corp. status

$122

$230

$281

$319

$368

$454

$553

$623

$653

$715

$767

$887

$1,011

$1,000

$111

$101

$94

$88

$85

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

YTD

Total Assets ($M)

Sept.

22, 2006

Completed

IPO

Franchise Evolution

Historical Franchise Growth

Notes:

* 2 acquisitions made in the last 5 years ($76 million in total assets at closing)

Compounded Annual Growth Rates –

12/31/01 through 9/30/06

11.00%

9.40%

7.60%

6.90%

9.40%

8.80%

Assets

Deposits

Loans

Actual

Net of Acquisitions*

Core franchise growth

De novo branches

Markets with existing

lending presences

Whole bank acquisitions

Growth Driven by:

Experienced integrators

Extensive in-state

connections

Core deposits

Existing customer base

New customer bases

Non-interest income

Loan

portfolio diversification

Future Success Drivers

Areas for Improvement:

Experienced management team

Extensive market knowledge and community relationships

Acquisition and integration capabilities

Highly efficient organizational structure

Scalable operating platform

Diversified funding sources

Future Success Driven by:

Operating Strengths

Name

Age

Position

Industry

Experience

Porter

Experience

J. Chester Porter

Chairman of the Board, General Counsel and Director of

Porter Bancorp and PBI Bank

Maria L. Bouvette

President, CEO and Director of Porter Bancorp and PBI Bank

David B. Pierce

CFO of Porter Bancorp, Chief Strategic Officer of PBI Bank

Phil Barnhouse

CFO of PBI Bank

Jim Grubbs

Sr. VP Commercial Lending

Fred Catlett

President, Northern Region

Avery Matney

President, Southern Region

Todd Young

Chief Operations Officer

Charles Darst

Chief Development Officer

Eric Satterly

Chief Technology Officer

Average Years Experience

Experienced Management Team

Note:

(1) As of September 30, 2006

Primary focus on commercial,

commercial real estate and

construction lending

69.4% of total loans at

September 30, 2006

Granular portfolio

Loyal and experienced producers

Team approach to customers

Loan Portfolio Composition

(1)

Total Loans: $817M

Construction,

25.2%

Residential,

22.0%

HE, 3.2%

Comm'l, 7.0%

Cons., 3.6%

Comm'l R/E,

37.1%

Other, 0.1%

Ag., 1.7%

Loan Stratification

Highlights

Note:

(1) Includes 30 banks with assets $750M -

$2B in IL, IN, KY, MO, OH, TN and WV

Reserves / Total Loans

1.18%

1.28%

1.40%

1.54%

1.55%

1.17%

1.26%

1.19%

1.12%

1.10%

0.00%

0.50%

1.00%

1.50%

2.00%

2001

2002

2003

2004

2005

YTD 2006

PBIB

Peers

NPAs / Assets

(1)

NCOs / Average Loans

0.33%

0.27%

0.31%

0.24%

0.23%

0.18%

0.12%

0.07%

0.32%

0.18%

0.23%

0.40%

2001

2002

2003

2004

2005

YTD 2006

PBIB

Peers

Consistent Credit Performance

(1)

Notes:

(1) For the three months ended September 30, 2006; based on average daily deposit balances

Deposit Mix

(1)

Total Deposits: $802M

Cost of Deposits:

(1)

3.58%

Time Deposits,

79.3%

NOW and

MMDA, 9.5%

Savings, 3.0%

Non-Interest

Bearing, 8.2%

Internet banking used to pre-

fund

loan growth in new and

current

markets

High CD retention rates

Focus on core deposit

development

Deposit Stratification

Highlights

Net Income

(1)

Return on Average Assets

(1)

$6,750

$10,642

$11,379

$9,012

2003

2004

2005

YTD 2006

0.91%

1.44%

1.21%

1.09%

2003

2004

2005

YTD 2006

Operating and Performance Metrics

Notes:

(1) Adjusted for consolidation through add-back of minority interests, deduction of applicable income taxes

and deduction of acquisition funding (net of tax)

Efficiency Ratio

Net Interest Margin

55.0%

47.1%

48.0%

51.0%

2003

2004

2005

YTD 2006

3.71%

4.00%

4.06%

3.84%

2003

2004

2005

YTD 2006

Recent Financial Performance

Notes:

(1) Pro forma for the infusion of equity, shares and a 6% opportunity cost of cash on proceeds related to the IPO;

For a reconciliation, see the Investor Relations page of our website: www.pbibank.com

2006 Quarters

2006 YTD

First

Second

Third

Annualized

Earnings

Actual

$3,403

$3,430

$3,809

$14,189

Adjusted for Offering

(1)

3,675

3,702

4,054

15,240

Earnings per Share

Actual

0.54

0.59

2.22

Adjusted for Offering

(1)

0.48

0.49

0.53

Return on Average Equity

Actual

18.8%

18.1%

19.3%

18.7%

Adjusted for Offering

(1)

14.7%

14.5%

15.8%

Return on Average Assets

Actual

1.40%

1.53%

1.44%

Adjusted for Offering

(1)

1.45%

1.47%

1.60%

2.00

15.0%

1.51%

Trading Multiples

Notes:

(1) Pro forma for the infusion of equity, shares and a 6% opportunity cost of cash on proceeds related to the IPO;

For a reconciliation, see the Investor Relations page of our website: www.pbibank.com

Current Market Price (11/10/06)

$22.75

Trading Multiples (based on 9/30/06 data)

Value

Multiple

YTD Annualized EPS

(1)

$2.00

11.4x

Tangible Book Value per Share

$12.15

187%

Dividends

Quarterly Dividend

$0.20

Dividend Yield

3.52%

Seasoned and experienced management team

Efficient organization

Strong EPS, asset, loan and deposit growth

Attractive, diversified growth markets

Investment Highlights

The “PBIB”

Difference