10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934

FOR THE QUARTERLY PERIOD ENDED June 30, 2014

or

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934

For The Transition Period From                      to                     

Commission file number 000-23377

INTERVEST BANCSHARES CORPORATION

(Exact name of registrant as specified in its charter)

Delaware	13-3699013
(State or other jurisdiction of incorporation or organization)	(IRS Employer Identification No.)

One Rockefeller Plaza, Suite 400

New York, New York 10020-2002

(Address of principal executive offices) (Zip Code)

(212) 218-2800

(Registrant’s telephone number, including area code)

Not Applicable

(Former name, former address and former fiscal year, if changed since last report)

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the past 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days:    YES  x    NO  ¨.

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    YES  x    NO  ¨.

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):

Large Accelerated Filer	¨	Accelerated Filer	x
Non-Accelerated Filer	¨  (Do not check if a smaller reporting company)	Smaller Reporting Company	¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act):    YES  ¨    NO  x.

Indicate number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date:

As of July 31, 2014, there were 22,026,190 shares of common stock, $1.00 par value per share, outstanding.

INTERVEST BANCSHARES CORPORATION AND SUBSIDIARY

June 30, 2014 FORM 10-Q

TABLE OF CONTENTS

	Page
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements Financial Statements
Condensed Consolidated Balance Sheets at June 30, 2014 (Unaudited) and December 31, 2013		3
Condensed Consolidated Statements of Earnings (Unaudited) for the Quarters and Six-Months Ended June  30, 2014 and 2013		4
Condensed Consolidated Statements of Comprehensive Income (Unaudited) for the Quarters and Six-Months Ended June 30, 2014 and 2013		5
Condensed Consolidated Statements of Changes in Stockholders’ Equity (Unaudited) for the Six-Months Ended June 30, 2014 and 2013		6
Condensed Consolidated Statements of Cash Flows (Unaudited) for the Six-Months Ended June 30, 2014 and 2013		7
Notes to Condensed Consolidated Financial Statements (Unaudited)		8
Review by Independent Registered Public Accounting Firm		22
Report of Independent Registered Public Accounting Firm		23
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations		24
Item 3. Quantitative and Qualitative Disclosures About Market Risk		42
Item 4. Controls and Procedures		42
PART II. OTHER INFORMATION
Item 1. Legal Proceedings		42
Item 1A. Risk Factors		42
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds		42
Item 3. Defaults Upon Senior Securities		42
Item 4. Mine Safety Disclosures		42
Item 5. Other Information		42
Item 6. Exhibits		42
Signatures		43
Exhibit Index		44
Certifications		45-47

Private Securities Litigation Reform Act Safe Harbor Statement

Intervest Bancshares Corporation (“IBC”) is the parent company of Intervest National Bank (“INB”). References in this report to “we,” “us” and “our” refer to these entities on a consolidated basis, unless otherwise specified. We are making this statement in order to satisfy the “Safe Harbor” provision contained in the Private Securities Litigation Reform Act of 1995. The statements contained in this report on Form 10-Q, including without limitation statements contained in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Item 2 of this report, that are not statements of historical fact may include forward-looking statements that involve a number of risks and uncertainties. Words such as “may,” “will,” “could,” “should,” “would,” “believe,” “anticipate,” “estimate,” “expect,” “intend,” “plan,” “project,” “assume,” “indicate,” “continue,” “target,” “goal,” “objective,” 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: 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 therefrom; 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 our deferred tax asset, including NOL carry forwards; and our ability to attract and retain key members of management. Reference is made to our filings with the Securities and Exchange Commission for further discussion of risks and uncertainties regarding our business. Historical results are not necessarily indicative of our future prospects. Our risk factors are disclosed in Item 1A of Part I of our Annual Report on Form 10-K and updated as needed in Item 1A of Part II of our reports on Form 10-Q. Forward looking statements speak only as of the date they are made. We undertake no obligation to publicly update or revise forward looking information, whether as a result of new, updated information, future events, or otherwise.

2

PART 1. FINANCIAL INFORMATION – ITEM 1. Financial Statements

Intervest Bancshares Corporation and Subsidiary

Condensed Consolidated Balance Sheets

($ in thousands, except par value)	At June 30, 2014			At December 31, 2013
	(Unaudited)			(Audited)
ASSETS
Cash and due from banks	$	33,337		$	16,689
Federal funds sold and other short-term investments		2,030			8,011
Total cash and cash equivalents		35,367			24,700
Time deposits with banks		5,370			5,370
Securities available for sale, at estimated fair value		994			965
Securities held to maturity (estimated fair value of $357,311 and $378,507, respectively)		358,338			383,937
Federal Reserve Bank and Federal Home Loan Bank stock, at cost		8,302			8,244
Loans receivable (net of allowance for loan losses of $26,598 and $27,833, respectively)		1,131,359			1,099,689
Accrued interest receivable		4,494			4,861
Loan fees receivable		2,165			2,298
Premises and equipment, net		3,926			4,056
Foreclosed real estate (net of valuation allowance of $390 and $2,017, respectively)		2,650			10,669
Deferred income tax asset		14,921			18,362
Other assets		3,938			4,645
Total assets	$	1,571,824		$	1,567,796
LIABILITIES
Deposits:
Noninterest-bearing demand deposit accounts	$	5,919		$	5,211
Interest-bearing deposit accounts:
Checking (NOW) accounts		17,421			17,831
Savings accounts		9,977			10,027
Money market accounts		348,193			367,384
Certificate of deposit accounts		896,313			881,779
Total deposit accounts		1,277,823			1,282,232
Long-term debt – subordinated debentures (capital securities)		56,702			56,702
Accrued interest payable on long term debt		58			868
Accrued interest payable on deposits		1,440			1,508
Mortgage escrow funds payable		20,945			18,879
Official checks outstanding		4,881			7,335
Other liabilities		3,396			3,281
Total liabilities		1,365,245			1,370,805
STOCKHOLDERS’ EQUITY
Common stock ($1.00 par value; 62,000,000 shares authorized; 22,025,390 and 21,918,623 shares issued and outstanding, respectively)		22,025			21,919
Additional paid-in-capital, common		89,002			88,043
Unearned compensation on restricted common stock awards		(1,864	)		(1,898	)
Retained earnings		97,438			88,959
Accumulated other comprehensive loss		(22	)		(32	)
Total stockholders’ equity		206,579			196,991
Total liabilities and stockholders’ equity	$	1,571,824		$	1,567,796

See accompanying notes to condensed consolidated financial statements.

3

Intervest Bancshares Corporation and Subsidiary

Condensed Consolidated Statements of Earnings

(Unaudited)

	Quarter Ended June 30,						Six-Months Ended June 30,
($ in thousands, except per share data)	2014			2013			2014			2013
INTEREST AND DIVIDEND INCOME
Loans receivable	$	14,886		$	14,591		$	29,201		$	29,744
Securities		1,164			1,014			2,345			2,092
Other interest-earning assets		16			18			33			36
Total interest and dividend income		16,066			15,623			31,579			31,872
INTEREST EXPENSE
Deposits		4,808			6,612			9,679			13,418
Subordinated debentures – capital securities		387			436			786			875
Total interest expense		5,195			7,048			10,465			14,293
Net interest and dividend income		10,871			8,575			21,114			17,579
Credit for loan losses		(1,000	)		(750	)		(1,500	)		(1,750	)
Net interest and dividend income after credit for loan losses		11,871			9,325			22,614			19,329
NONINTEREST INCOME
Income from the early repayment of mortgage loans		2,021			623			2,529			1,290
Income from mortgage lending activities		313			286			592			657
Customer service fees		127			118			206			189
Impairment writedowns on investment securities		—			(325	)		—			(691	)
Total noninterest income		2,461			702			3,327			1,445
NONINTEREST EXPENSES
Salaries and employee benefits		1,900			1,861			4,142			3,811
Stock compensation for employees and directors		279			248			774			502
Occupancy and equipment, net		504			562			1,087			1,078
Data processing		102			83			210			174
Professional fees and services		323			384			660			768
Stationery, printing, supplies, postage and delivery		81			85			161			146
FDIC insurance		276			306			525			811
General insurance		150			150			297			302
Director and committee fees		141			83			245			187
Advertising and promotion		3			5			26			10
Real estate activities expense (income), net		298			(346	)		499			(1,332	)
Provision for real estate losses		—			76			—			705
All other		167			187			371			303
Total noninterest expenses		4,224			3,684			8,997			7,465
Earnings before provision for income taxes		10,108			6,343			16,944			13,309
Provision for income taxes		4,370			2,804			7,364			5,879
Net earnings		5,738			3,539			9,580			7,430
Preferred stock dividend requirements and discount amortization		—			(326	)		—			(788	)
Net earnings available to common stockholders	$	5,738		$	3,213		$	9,580		$	6,642
Basic earnings per common share	$	0.26		$	0.14		$	0.43		$	0.30
Diluted earnings per common share	$	0.26		$	0.14		$	0.43		$	0.30
Cash dividends per common share	$	0.05		$	—		$	0.05		$	—

See accompanying notes to condensed consolidated financial statements.

4

Intervest Bancshares Corporation and Subsidiary

Condensed Consolidated Statements of Comprehensive Income

(Unaudited)

	Quarter Ended June 30,					Six-Months Ended June 30,
($ in thousands)	2014			2013		2014			2013
Net earnings	$	5,738		$	3,539	$	9,580		$	7,430
Other Comprehensive Income:
Net unrealized holding gain on available-for-sale securities		9			—		17			—
Provision for income taxes related to unrealized gain on available-for-sale securities		(4	)		—		(7	)		—
Other comprehensive income, net of tax		5			—		10			—
Total comprehensive income	$	5,743		$	3,539	$	9,590		$	7,430

See accompanying notes to condensed consolidated financial statements.

5

Intervest Bancshares Corporation and Subsidiary

Condensed Consolidated Statements of Changes in Stockholders’ Equity

(Unaudited)

	Six-Months Ended June 30,
	2014					2013
($ in thousands)	Shares		Amount			Shares			Amount
PREFERRED STOCK
Balance at beginning of period			$	—			25,000		$	25
Partial redemption				—			(6,250	)		(6	)
Balance at end of period				—			18,750			19
ADDITIONAL PAID-IN-CAPITAL, PREFERRED
Balance at beginning of period				—						24,975
Partial redemption				—						(6,244	)
Balance at end of period				—						18,731
PREFERRED STOCK DISCOUNT
Balance at beginning of period				—						(376	)
Amortization of preferred stock discount				—						246
Balance at end of period				—						(130	)
COMMON STOCK
Balance at beginning of period		21,918,623		21,919			21,589,589			21,590
Issuance of shares of restricted stock		92,000		92			330,700			331
Issuance of shares upon exercise of stock options		14,767		14			11,567			11
Forfeiture of shares of restricted stock		—		—			(8,100	)		(8	)
Balance at end of period		22,025,390		22,025			21,923,756			21,924
ADDITIONAL PAID-IN-CAPITAL, COMMON
Balance at beginning of period				88,043						85,726
Issuance of shares of restricted stock				612						1,157
Issuance of shares upon exercise of stock options				30						31
Forfeiture of shares of restricted stock				—						(21	)
Excess income tax benefit from equity awards				307						145
Compensation expense related to stock options				10						24
Balance at end of period				89,002						87,062
UNEARNED COMPENSATION – RESTRICTED STOCK
Balance at beginning of period				(1,898	)					(715	)
Issuance of shares of restricted stock				(704	)					(1,488	)
Amortization of unearned compensation to compensation expense				738						507
Balance at end of period				(1,864	)					(1,696	)
RETAINED EARNINGS
Balance at beginning of period				88,959						79,722
Net earnings				9,580						7,430
Cash dividend declared and paid on common stock				(1,101	)					—
Cash dividend declared and paid on preferred stock				—						(1,228	)
Discount from partial redemption of preferred stock				—						187
Preferred stock discount amortization				—						(246	)
Balance at end of period				97,438						85,865
ACCUMULATED OTHER COMPREHENSIVE LOSS
Balance at beginning of year				(32	)					—
Net change in accumulated other comprehensive loss				10						—
Balance at end of period				(22	)					—
Total stockholders’ equity at end of period		22,025,390	$	206,579			21,942,506		$	211,775
Preferred stockholder’s equity		—	$	—			18,750		$	18,620
Common stockholders’ equity		22,025,390		206,579			21,923,756			193,155
Total stockholders’ equity at end of period		22,025,390	$	206,579			21,942,506		$	211,775

See accompanying notes to condensed consolidated financial statements.

6

Intervest Bancshares Corporation and Subsidiary

Condensed Consolidated Statements of Cash Flows

(Unaudited)

	Six-Months Ended June 30,
($ in thousands)	2014			2013
OPERATING ACTIVITIES
Net earnings	$	9,580		$	7,430
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization		156			170
Credit for loan losses		(1,500	)		(1,750	)
Provision for real estate losses		—			705
Deferred income tax expense		3,434			5,355
Stock compensation expense		774			502
Amortization of deferred debenture offering costs		18			18
Amortization of premiums (accretion) of discounts and deferred loan fees, net		(138	)		469
Net gain from sale of foreclosed real estate		(203	)		(718	)
Impairment writedowns on investment securities		—			691
Net decrease in loan fees receivable		133			464
Net decrease in accrued interest payable on borrowed funds		(810	)		(6,170	)
Net (decrease) increase in official checks outstanding		(2,454	)		2,658
Net change in all other assets and liabilities		1,933			8,161
Net cash provided by operating activities		10,923			17,985
INVESTING ACTIVITIES
Maturities and calls of securities held to maturity		55,168			91,679
Purchases of securities held to maturity		(30,178	)		(60,902	)
Purchases of securities available for sale		(12	)		(11	)
Purchases of interest-earning time deposits with banks		—			(200	)
Purchases of FRB and FHLB stock, net		(58	)		(78	)
(Originations) repayments of loans receivable, net		(30,279	)		51,564
Proceeds from sales of foreclosed real estate		8,222			867
Purchases of premises and equipment, net		(26	)		(280	)
Net cash provided by investing activities		2,837			82,639
FINANCING ACTIVITIES
Net decrease in deposits		(4,409	)		(69,444	)
Net increase in mortgage escrow funds payable		2,066			2,505
Partial redemption of preferred stock		—			(6,062	)
Cash dividends paid to common stockholders		(1,101	)		—
Cash dividends paid to preferred stockholders		—			(1,228	)
Proceeds from issuance of common stock upon exercise of stock options		44			42
Excess tax benefit from exercise of options and vesting of restricted stock		307			145
Net cash used in financing activities		(3,093	)		(74,042	)
Net increase in cash and cash equivalents		10,667			26,582
Cash and cash equivalents at beginning of period		24,700			60,395
Cash and cash equivalents at end of period	$	35,367		$	86,977
SUPPLEMENTAL DISCLOSURES
Cash paid for interest	$	11,325		$	20,681
Cash paid for income taxes		2,145			575
Net change in unrealized loss on securities available for sale		10			—
Loans transferred to foreclosed real estate		—			3,040
Loans originated to finance sales of foreclosed real estate		—			3,240
Preferred stock dividend requirements and amortization of related discount		—			788

See accompanying notes to condensed consolidated financial statements.

7

Intervest Bancshares Corporation and Subsidiary

Notes to Condensed Consolidated Financial Statements (Unaudited)

Note 1—Summary of Significant Accounting Policies

General

Intervest Bancshares Corporation (“IBC”) is the parent company of Intervest National Bank (“INB”). References in this report to “we,” “us” and “our” refer to these entities on a consolidated basis, unless otherwise specified. For a description of our business, see note 1 to the financial statements in our 2013 Annual Report on Form 10-K (“2013 10-K”). Our accounting and reporting policies conform to U.S. generally accepted accounting principles (GAAP) and general practices within the banking industry and are described in note 1 to the financial statements in our 2013 10-K, as updated by the information in this Form 10-Q.

Principles of Consolidation and Basis of Presentation

The condensed consolidated financial statements (“financial statements”) in this report have not been audited except for information derived from our audited 2013 consolidated financial statements and notes thereto and should be read in conjunction with our 2013 10-K. Certain information and note disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted in this report pursuant to the rules and regulations of the Securities and Exchange Commission.

Use of Estimates

In preparing our financial statements, we are required to make estimates and assumptions that affect the reported amounts of assets, liabilities and disclosure of contingent liabilities as of the date of the financial statements, and revenues and expenses during the reporting periods. Actual results could differ from those estimates. Estimates that are particularly susceptible to significant change currently relate to the determination of our allowance for loan losses, valuation allowance for real estate losses, other than temporary impairment assessments of our security investments and the need for and amount of a valuation allowance for our deferred tax asset. These estimates involve a higher degree of complexity and subjectivity and may require assumptions about highly uncertain matters. Current market conditions increase the risk and complexity of the judgments in these estimates. In our opinion, all material adjustments necessary for a fair presentation of our financial condition and results of operations for the interim periods presented in this report have been made. These adjustments are of a normal recurring nature. All significant intercompany balances and transactions have been eliminated in consolidation. Our results of operations for the interim periods are not necessarily indicative of results that may be expected for the entire year or any other interim period.

Stock-Based Compensation

We recognize the cost of our employee and director services received in exchange for awards of our equity instruments (which are in the form of restricted stock, stock options and cash-settled stock appreciation rights or “SARs”) that vest over time based on the grant-date fair value of the awards. The fair value of restricted stock grants is based on the closing market value of our common stock as reported on the Nasdaq Stock Market on the grant date. The fair value of options and SARs is estimated using the Black-Scholes option-pricing model based on various inputs and assumptions that are described in note 9. Compensation cost, or the grant-date fair value of the awards, related to equity awards is recognized on a straight-line basis over the requisite service period, which is normally the vesting period of the grants.

For SARs only, fair value is re-measured at the end of each reporting period and amortized as compensation cost over the remaining requisite service period less amounts previously recognized. The SARs represent liability-classified awards that are remeasured to reflect their fair value at each reporting period. After the requisite service period is completed, the SAR’s fair value continues to be remeasured each reporting period until settlement and any increase/decrease in the fair value is immediately recognized as an increase/decrease to our reported stock compensation expense. Upon cash-settlement of a SAR, stock compensation expense is trued-up to equal the SAR’s intrinsic cash value on the date of settlement.

Stock-based compensation associated with equity awards is recorded as stock compensation expense in the statement of earnings and a corresponding increase to stockholders’ equity as additional paid-in capital for amounts related to restricted stock and stock options, and corresponding increase to accrued stock compensation payable for amounts related to the SARs, which is reported as part of our “other liabilities” in our balance sheet.

8

Intervest Bancshares Corporation and Subsidiary

Notes to Condensed Consolidated Financial Statements (Unaudited)

Note 1 – Summary of Significant Accounting Policies, Continued

For any excess income tax benefit associated with the vesting of restricted common stock awards and the exercise of stock option awards (calculated as the difference between the fair market value of the stock at the vesting date versus the grant date in the case of stock awards and the difference between the fair market value of the stock at the exercise date versus the exercise price per share in the case of options, multiplied by our effective income tax rate) is recorded as decrease to our income taxes payable and an increase in stockholders’ equity as paid-in capital.

Recent Accounting Standards Update

In February 2013, the FASB Issued ASU No. 2013-04, “Obligations Resulting from Joint and Several Liability Arrangements for Which the Total Amount of the Obligation Is Fixed at the Reporting Date”. ASU 2013-04 provides guidance for the recognition, measurement, and disclosure of obligations resulting from joint and several liability arrangements for obligations within the scope of this ASU. We adopted this ASU on January 1, 2014 and it had no impact on our financial statements.

In July 2013, the FASB issued ASU 2013-11, “Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists,” which among other things, requires an unrecognized tax benefit, or a portion of an unrecognized tax benefit, to be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, except as denoted within the ASU. The amendments in this ASU are effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. We adopted this ASU on January 1, 2014 and it had no impact on our financial statements.

In January 2014, the FASB issued ASU 2014-04, “Receivables-Troubled Debt Restructurings by Creditors (Subtopic 310-40): Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure”, which is intended to clarify when a creditor should be considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan such that the loan should be derecognized and the real estate recognized. These amendments clarify that an in substance repossession or foreclosure occurs, and a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan, upon either: (a) the creditor obtaining legal title to the residential real estate property upon completion of a foreclosure; or (b) the borrower conveying all interest in the residential real estate property to the creditor to satisfy that loan through completion of a deed in lieu of foreclosure or through a similar legal agreement. Additional disclosures are required. The amendments are effective for us beginning January 1, 2015.

In June 2014, FASB issued ASU 2014-11, “Transfers and Servicing – Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures.” ASU 2014-11 requires, among other things, two accounting changes. First, the amendments in this update change the accounting for repurchase-to-maturity transactions to secured borrowing accounting. Second, for repurchase financing arrangements, the amendments require separate accounting for a transfer of a financial asset executed contemporaneously with a repurchase agreement with the same counterparty, which will result in secured borrowing accounting for the repurchase agreement. ASU 2014-11 is effective for the first interim or annual period beginning after December 15, 2014. The adoption of this guidance is not expected to have any impact on our financial statements.

In June 2014, FASB issued ASU 2014-12, “Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period.” ASU 2014-12 requires, among other things, that a performance target that affects vesting and could be achieved after the requisite service period be treated as a performance condition. As such, the performance target should not be reflected in estimating the grant-date fair value of the award. ASU 2014-12 is effective for annual reporting periods beginning after December 15, 2015, with early adoption permitted. The adoption of this guidance is not expected to have any impact on our financial statements.

9

Intervest Bancshares Corporation and Subsidiary

Notes to Condensed Consolidated Financial Statements (Unaudited)

Note 2 – Securities Held to Maturity and Available for Sale

The carrying value (amortized cost) and estimated fair value of securities held to maturity (“HTM”) are as follows:

($ in thousands)	Number of Securities		Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value		Wtd-Avg Yield			Wtd-Avg Expected Life		Wtd-Avg Remaining Maturity
At June 30, 2014
U.S. government agencies (1)		155	$	277,752	$	367	$	1,915	$	276,204		1.01	%		2.7 Yrs		3.6 Yrs
Residential mortgage-backed (2)		67		80,055		727		207		80,575		1.86	%		4.4 Yrs		13.6 Yrs
State and municipal		1		531		1		—		532		1.25	%		2.7 Yrs		2.8 Yrs
		223	$	358,338	$	1,095	$	2,122	$	357,311		1.20	%		3.0 Yrs		5.8 Yrs
At December 31, 2013
U.S. government agencies (1)		161	$	305,906	$	410	$	4,947	$	301,369		0.94	%		3.0 Yrs		3.8 Yrs
Residential mortgage-backed (2)		57		77,500		130		1,017		76,613		1.79	%		4.3 Yrs		14.7 Yrs
State and municipal		1		531		—		6		525		1.25	%		3.2 Yrs		3.3 Yrs
		219	$	383,937	$	540	$	5,970	$	378,507		1.11	%		3.3 Yrs		6.0 Yrs

(1) Consist of debt obligations of U.S. government sponsored agencies (GSEs) – Federal Home Loan Bank (FHLB), Federal Farm Credit Bank (FFCB), Federal National Mortgage Association (FNMA) and Federal Home Loan Mortgage Corporation (FHLMC), which are federally chartered corporations privately owned by shareholders. GSE securities carry no explicit U.S. government guarantee of creditworthiness. Neither principal nor interest payments are guaranteed by the U.S. government nor do they constitute a debt or obligation of the U.S. government or any of its agencies or instrumentalities other than the applicable GSE. FNMA and FHLMC are under U.S. government conservatorship.

(2) At June 30, 2014, the portfolio consisted of $12.0 million of Government National Mortgage Association (GNMA) residential pass-through certificates and $68.1 million of residential participation certificates issued by FNMA or FHLMC, compared to $13.6 million and $63.9 million, respectively, at December 31, 2013. The GNMA pass-through certificates are guaranteed as to the payment of principal and interest by the full faith and credit of the U.S. government while the FNMA and FHLMC certificates have an implied guarantee by such agency as to principal and interest payments. Included in this line item are investments in FNMA Delegated Underwriting and Servicing (DUS) mortgage-backed securities (of approximately $14 million at June 30, 2014 and $7.0 million at December 31, 2013) that are backed by eligible multifamily pools that typically contain one loan or single purpose entity.

The estimated fair values of HTM securities with gross unrealized losses segregated between securities that have been in a continuous unrealized loss position for less than twelve months at the respective dates and those that have been in a continuous unrealized loss position for twelve months or longer are summarized as follows:

	Number of Securities		Less Than Twelve Months				Twelve Months or Longer				Total
($ in thousands)			Estimated Fair Value		Gross Unrealized Losses		Estimated Fair Value		Gross Unrealized Losses		Estimated Fair Value		Gross Unrealized Losses
At June 30, 2014
U.S. government agencies		108	$	24,871	$	48	$	161,636	$	1,867	$	186,507	$	1,915
Residential mortgage-backed		23		5,475		15		22,567		192		28,042		207
		131	$	30,346	$	63	$	184,203	$	2,059	$	214,549	$	2,122
At December 31, 2013
U.S. government agencies		130	$	233,930	$	4,791	$	7,344	$	156	$	241,274	$	4,947
Residential mortgage-backed		41		48,862		987		3,284		30		52,146		1,017
State and municipal		1		525		6		—		—		525		6
		172	$	283,317	$	5,784	$	10,628	$	186	$	293,945	$	5,970

All HTM securities were investment grade rated. The securities had either fixed interest rates or had predetermined scheduled interest rate increases and nearly all had call or prepayment features that allow the issuer to repay all or a portion of the security at par before its stated maturity without penalty. In general, as interest rates rise, the estimated fair value of fixed-rate securities will decrease; as interest rates fall, their value will increase. We generally view changes in fair value caused by changes in interest rates as temporary, which is consistent with our experience. The estimated fair values disclosed in this footnote for HTM securities were obtained from a third-party pricing service that used Level 2 inputs. At June 30, 2014 and December 31, 2013, INB, which owned the HTM portfolio, also had the ability and intent to hold all of the investments for a period of time sufficient for the estimated fair value of the securities with unrealized losses to recover, which may be at the time of maturity. Accordingly, we viewed all the gross unrealized losses related to the HTM portfolio as of those dates to be temporary for the reasons noted above.

10

Intervest Bancshares Corporation and Subsidiary

Notes to Condensed Consolidated Financial Statements (Unaudited)

Note 2 – Securities Held to Maturity and Available for Sale, Continued

The following table is a summary of the carrying value (amortized cost) and estimated fair value of HTM securities at June 30, 2014, by remaining period to contractual maturity (ignoring earlier call dates, if any). The amounts reported in the table also did not consider the effects of possible prepayments or unscheduled repayments. Accordingly, actual maturities may differ from contractual maturities shown in the table.

($ in thousands)	Amortized Cost		Estimated Fair Value		Wtd-Avg Yield
Due in one year or less	$	8,349	$	8,362		1.32	%
Due after one year through five years		250,465		249,349		0.97
Due after five years through ten years		49,778		49,504		1.68
Due after ten years		49,746		50,096		1.86
	$	358,338	$	357,311		1.20	%

The table below provides a cumulative roll forward of credit losses recognized on securities held to maturity for the periods indicated.

	Quarter Ended June 30,				Six-Months Ended June 30,
($ in thousands)	2014		2013		2014		2013
Balance at beginning of period	$	—	$	4,599	$	—	$	4,233
Additional credit losses on debt securities for which OTTI was previously recognized		—		325		—		691
Balance at end of period	$	—	$	4,924	$	—	$	4,924

At June 30, 2014 and December 31, 2013, the carrying value (estimated fair value) of securities available for sale amounted to approximately $1.0 million. The investment represented approximately 92,850 and 91,700 shares, respectively, of an intermediate bond fund that holds securities that are deemed to be qualified under the Community Reinvestment Act.

Note 3 – Loans Receivable

Major classifications of loans receivable are summarized as follows:

	At June 30, 2014					At December 31, 2013
($ in thousands)	# of Loans		Amount			# of Loans		Amount
Loans Secured By Real Estate:
Commercial loans		414	$	888,043			394	$	838,766
Multifamily loans		142		205,258			138		210,270
One to four family loans		16		59,211			20		72,064
Land loans		5		8,381			5		9,178
		577		1,160,893			557		1,130,278
All Other Loans:
Business loans		18		1,031			19		1,061
Consumer loans		8		170			12		211
		26		1,201			31		1,272
Loans receivable, gross		603		1,162,094			588		1,131,550
Deferred loan fees				(4,137	)				(4,028	)
Loans receivable, net of deferred fees				1,157,957					1,127,522
Allowance for loan losses				(26,598	)				(27,833	)
Loans receivable, net			$	1,131,359				$	1,099,689

Loans 90 days past due and still accruing interest - At June 30, 2014, there was one loan 90 days past due and still accruing of $3.0 million, compared to three loans totaling $4.1 million at December 31, 2013.

Loans on nonaccrual status – At June 30, 2014 and December 31, 2013, there were $23.0 million and $35.9 million of loans, respectively, on nonaccrual status, which included restructured loans (or “TDRs”) of $17.7 million and $33.2 million, respectively. All the TDRs were current and performing in accordance with their restructured terms but were maintained on nonaccrual status based on regulatory guidance. All nonaccrual loans were considered impaired loans.

TDRs on accrual status – At June 30, 2014 and December 31, 2013, there were $27.1 million and $13.4 million of TDR loans, respectively, classified as accruing TDRs. All of these TDR loans were considered impaired loans.

At June 30, 2014 and December 31, 2013, we also had one performing and accruing loan of $7.7 million that was classified as an impaired loan.

11

Intervest Bancshares Corporation and Subsidiary

Notes to Condensed Consolidated Financial Statements (Unaudited)

Note 3 – Loans Receivable, Continued

The tables below summarize certain information regarding our impaired loans as follows:

($ in thousands)	Recorded Investment by State (1)																Specific Valuation Allowance (2)		Total Unpaid Principal (3)		# of Loans
At June 30, 2014 Type	NY		FL		VA		GA		CT		OH		SD		Total
Retail	$	8,138	$	9,005	$	7,727	$	—	$	2,684	$	—	$	—	$	27,554	$	2,777	$	31,251		6
Office Building		—		14,285		—		8,695		—		—		—		22,980		1,928		22,980		3
Parking Lot		2,622		—		—		—		—		—		—		2,622		79		2,622		1
Multifamily		—		3,110		—		—		—		—		—		3,110		591		3,110		2
Land		—		—		—		—		—		—		1,555		1,555		161		1,555		1
Totals	$	10,760	$	26,400	$	7,727	$	8,695	$	2,684	$	—	$	1,555	$	57,821	$	5,536	$	61,518		13

($ in thousands)	Recorded Investment by State (1)																Specific Valuation Allowance (2)		Total Unpaid Principal (3)		# of Loans
At December 31, 2013 Type	NY		FL		VA		GA		CT		OH		SD		Total
Retail	$	8,223	$	9,005	$	7,828	$	—	$	2,719	$	1,000	$	—	$	28,775	$	3,052	$	36,216		7
Office Building		—		14,937		—		8,695		—		—		—		23,632		1,947		23,632		3
Multifamily		—		3,128		—		—		—		—		—		3,128		594		3,128		2
Land		—		—		—		—		—		—		1,625		1,625		500		1,625		1
Totals	$	8,223	$	27,070	$	7,828	$	8,695	$	2,719	$	1,000	$	1,625	$	57,160	$	6,093	$	64,601		13

(1) Represents unpaid principal less partial principal charge offs and interest received and applied as a reduction of principal in certain cases.

(2) Represents a specific valuation allowance against the recorded investment, which is included as part of our overall allowance for loan losses.

All impaired loans at the dates indicated in the table had a specific valuation allowance.

(3) Represents contractual unpaid principal balance (shown for informational purposes only). The borrowers are obligated to pay such amounts.

However, the ultimate collection by us of such amounts in this column is not assured.

Other information related to our impaired loans is summarized as follows:

	Quarter Ended June 30,				Six-Months Ended June 30,
($ in thousands)	2014		2013		2014		2013
Average recorded investment in nonaccrual loans	$	34,336	$	39,733	$	35,400	$	41,831
Total cash basis interest income recognized on nonaccrual loans		458		610		977		1,208
Average recorded investment in accruing TDR loans		16,756		13,271		15,071		15,799
Total interest income recognized on accruing TDR loans under modified terms		223		179		400		429

Age analysis of our loan portfolio by segment at June 30, 2014 is summarized as follows:

($ in thousands)	Total Portfolio		Current		Past Due 31-59 Days		Past Due 60-89 Days		Past Due 90 or more Days		Total Past Due
Accruing Loans:
Commercial real estate	$	865,038	$	862,045	$	—	$	—	$	2,993	$	2,993
Multifamily		205,258		205,258		—		—		—		—
One to four family		59,211		59,211		—		—		—		—
Land		8,381		8,381		—		—		—		—
All other		1,201		1,201		—		—		—		—
Total accruing loans		1,139,089		1,136,096		—		—		2,993		2,993
Nonaccrual Loans (1):
Commercial real estate		23,005		20,383		—		—		2,622		2,622
Total nonaccrual loans		23,005		20,383		—		—		2,622		2,622
Total loans	$	1,162,094	$	1,156,479	$	—	$	—	$	5,615	$	5,615

(1) The amount of nonaccrual loans in the current column included $17.7 million of TDRs for which payments were being made in accordance with their restructured terms, but the loans were maintained on nonaccrual status in accordance with regulatory guidance. The remaining portion was comprised of one performing and paying loan classified nonaccrual due to concerns regarding the borrower’s ability to continue making payments. Interest income from loan payments received on loans in nonaccrual status is recognized on a cash basis, provided the remaining principal balance is deemed collectible.

12

Intervest Bancshares Corporation and Subsidiary

Notes to Condensed Consolidated Financial Statements (Unaudited)

Note 3 – Loans Receivable, Continued

Age analysis of our loan portfolio by segment at December 31, 2013 is summarized as follows:

($ in thousands)	Total Portfolio		Current		Past Due 31-59 Days		Past Due 60-89 Days		Past Due 90 or more Days		Total Past Due
Accruing Loans:
Commercial real estate	$	802,863	$	796,980	$	1,796	$	—	$	4,087	$	5,883
Multifamily		210,270		209,426		844		—		—		844
One to four family		72,064		72,064		—		—		—		—
Land		9,178		9,178		—		—		—		—
All other		1,272		1,271		1		—		—		1
Total accruing loans		1,095,647		1,088,919		2,641		—		4,087		6,728
Nonaccrual Loans (1):
Commercial real estate		35,903		35,903		—		—		—		—
Total nonaccrual loans		35,903		35,903		—		—		—		—
Total loans	$	1,131,550	$	1,124,822	$	2,641	$	—	$	4,087	$	6,728

(1) The amount of nonaccrual loans in the current column included $33.2 million of TDRs for which payments were being made in accordance with their restructured terms, but the loans were maintained on nonaccrual status in accordance with regulatory guidance. The remaining portion was comprised of certain paying loans classified nonaccrual due to concerns regarding the borrowers’ ability to continue making payments. Interest income from loan payments received on loans in nonaccrual status is recognized on a cash basis, provided the remaining principal balance is deemed collectible.

Information regarding the credit quality of the loan portfolio based on our internally assigned grades follows:

($ in thousands)	Pass		Special Mention		Substandard (1)		Total
At June 30, 2014
Commercial real estate	$	829,466	$	3,218	$	55,359	$	888,043
Multifamily		199,326		2,361		3,571		205,258
One to four family		59,211		—		—		59,211
Land		8,381		—		—		8,381
All other		1,201		—		—		1,201
Total loans	$	1,097,585	$	5,579	$	58,930	$	1,162,094
Allocation of allowance for loan losses	$	21,055	$	163	$	5,380	$	26,598
At December 31, 2013
Commercial real estate	$	772,900	$	3,522	$	62,344	$	838,766
Multifamily		204,298		2,369		3,603		210,270
One to four family		72,064		—		—		72,064
Land		7,553		—		1,625		9,178
All other		1,272		—		—		1,272
Total loans	$	1,058,087	$	5,891	$	67,572	$	1,131,550
Allocation of allowance for loan losses	$	20,720	$	169	$	6,944	$	27,833

(1) Substandard loans consisted of $23.0 million of nonaccrual loans, $25.1 million of accruing TDRs and $10.8 million of other performing loans at June 30, 2014, compared to $35.9 million of nonaccrual loans, $13.1 million of accruing TDRs and $18.6 million of other performing loans at December 31, 2013. At June 30, 2014 and December 31, 2013, we also had accruing TDRs of $2.0 million and $0.4 million, respectively, which were rated pass.

The geographic distribution of the loan portfolio by state follows:

($ in thousands)	At June 30, 2014					At December 31, 2013
	Amount		% of Total			Amount		% of Total
New York	$	651,314		56.0	%	$	670,052		59.3	%
Florida		339,410		29.3			321,812		28.4
North Carolina		28,148		2.4			22,611		2.0
Georgia		21,109		1.9			18,799		1.7
New Jersey		13,542		1.2			15,650		1.4
Pennsylvania		13,263		1.1			16,898		1.5
Virginia		13,166		1.1			11,491		1.0
Kentucky		8,440		0.7			11,930		1.1
South Carolina		8,044		0.7			9,223		0.8
Connecticut		7,366		0.6			8,429		0.7
Tennessee		6,731		0.6			5,843		0.5
Massachusetts		6,058		0.5			—		—
Texas		5,720		0.5			—		—
Michigan		5,514		0.5			5,599		0.5
Arizona		5,125		0.4			—		—
West Virginia		4,477		0.4			—		—
Ohio		4,429		0.4			4,703		0.4
Utah		3,937		0.3			—		—
Illinois		3,627		0.3			—		—
Indiana		3,463		0.3			2,820		0.2
All other states		9,211		0.8			5,690		0.5
	$	1,162,094		100.0	%	$	1,131,550		100.0	%

13

Intervest Bancshares Corporation and Subsidiary

Notes to Condensed Consolidated Financial Statements (Unaudited)

Note 3 – Loans Receivable, Continued

The distribution of TDRs by accruing versus nonaccruing, by loan type and by geographic distribution follows:

($ in thousands)	At June 30, 2014		At December 31, 2013
Performing – nonaccrual status	$	17,700	$	33,184
Performing – accrual status		27,088		13,429
	$	44,788	$	46,613
Commercial real estate	$	40,123	$	41,860
Multifamily		3,110		3,128
Land		1,555		1,625
	$	44,788	$	46,613
New York	$	8,138	$	8,223
Florida		26,400		27,070
Georgia		8,695		8,695
Ohio		—		1,000
South Dakota		1,555		1,625
	$	44,788	$	46,613

Note 4 – Allowance for Loan Losses

Activity in the allowance for loan losses by loan type for the periods indicated is as follows:

($ in thousands)	Commercial Real Estate			Multifamily			One to Four Family			Land			All Other		Total
Quarter Ended June 30, 2014
Balance at beginning of period	$	18,813		$	5,112		$	2,632		$	853		$	8	$	27,418
Loan chargeoffs		—			—			—			—			—		—
Loan recoveries		180			—			—			—			—		180
(Credit) provision for loan losses		(612	)		(148	)		(274	)		34			—		(1,000	)
Balance at end of period	$	18,381		$	4,964		$	2,358		$	887		$	8	$	26,598
Six-Months Ended June 30, 2014
Balance at beginning of period	$	18,403		$	5,097		$	3,017		$	1,308		$	8	$	27,833
Loan chargeoffs		—			—			—			—			—		—
Loan recoveries		251			14			—			—			—		265
(Credit) provision for loan losses		(273	)		(147	)		(659	)		(421	)		—		(1,500	)
Balance at end of period	$	18,381		$	4,964		$	2,358		$	887		$	8	$	26,598

($ in thousands)	Commercial Real Estate			Multifamily			One to Four Family			Land			All Other		Total
Quarter Ended June 30, 2013
Balance at beginning of period	$	18,644		$	5,617		$	2,971		$	970		$	8	$	28,210
Loan chargeoffs		(1,817	)		(6	)		—			—			—		(1,823	)
Loan recoveries		818			—			—			—			—		818
(Credit) provision for loan losses		(49	)		(513	)		(176	)		(14	)		2		(750	)
Balance at end of period	$	17,596		$	5,098		$	2,795		$	956		$	10	$	26,455
Six-Months Ended June 30, 2013
Balance at beginning of period	$	19,051		$	6,881		$	1,120		$	1,043		$	8	$	28,103
Loan chargeoffs		(1,932	)		(6	)		—			—			—		(1,938	)
Loan recoveries (1)		880			677			—			483			—		2,040
Credit) provision for loan losses		(403	)		(2,454	)		1,675			(570	)		2		(1,750	)
Balance at end of period	$	17,596		$	5,098		$	2,795		$	956		$	10	$	26,455

(1) In the first and second quarters of 2013, INB entered into settlement agreements with respect to certain litigation INB had pursued in connection with foreclosure actions it had commenced in 2010 on several of its loans. INB commenced the actions to collect, in one case, insurance proceeds, which it contended had been improperly paid to various third parties, and in another case, damages due to alleged legal malpractice when the loan was originated. As a result of these settlements, INB received net proceeds totaling $2.7 million and $0.1 million in the first and second quarter of 2013, respectively, which was recorded as $1.1 million of recoveries of prior loan charge offs and $1.6 million of recoveries of prior real estate expenses associated with two loans and underlying collateral property.

14

Intervest Bancshares Corporation and Subsidiary

Notes to Condensed Consolidated Financial Statements (Unaudited)

Note 4 – Allowance for Loan Losses, Continued

The following table sets forth the balances of our loans receivable by segment and impairment evaluation and the allowance for loan losses associated with such loans at June 30, 2014.

($ in thousands)	Commercial Real Estate		Multifamily		One to Four Family		Land		All Other		Total
Loans:
Individually evaluated for impairment	$	53,156	$	3,110	$	—	$	1,555	$	—	$	57,821
Collectively evaluated for impairment		834,887		202,148		59,211		6,826		1,201		1,104,273
Total loans	$	888,043	$	205,258	$	59,211	$	8,381	$	1,201	$	1,162,094
Allowance for loan losses:
Individually evaluated for impairment	$	4,784	$	591	$	—	$	161	$	—	$	5,536
Collectively evaluated for impairment		13,597		4,373		2,358		726		8		21,062
Total allowance for loan losses	$	18,381	$	4,964	$	2,358	$	887	$	8	$	26,598

The following table sets forth the balances of our loans receivable by segment and impairment evaluation and the allowance for loan losses associated with such loans at December 31, 2013.

($ in thousands)	Commercial Real Estate		Multifamily		One to Four Family		Land		All Other		Total
Loans:
Individually evaluated for impairment	$	52,407	$	3,128	$	—	$	1,625	$	—	$	57,160
Collectively evaluated for impairment		786,359		207,142		72,064		7,553		1,272		1,074,390
Total loans	$	838,766	$	210,270	$	72,064	$	9,178	$	1,272	$	1,131,550
Allowance for loan losses:
Individually evaluated for impairment	$	4,999	$	594	$	—	$	500	$	—	$	6,093
Collectively evaluated for impairment		13,404		4,503		3,017		808		8		21,740
Total allowance for loan losses	$	18,403	$	5,097	$	3,017	$	1,308	$	8	$	27,833

Note 5 – Foreclosed Real Estate and Valuation Allowance for Real Estate Losses

Real estate acquired through foreclosure by property type is summarized as follows:

	At June 30, 2014				At December 31, 2013
($ in thousands)	# of Properties		Amount (1)		# of Properties		Amount (1)
Commercial real estate		1	$	2,650		2	$	3,984
Multifamily		—		—		1		6,685
Real estate acquired through foreclosure		1	$	2,650		3	$	10,669

(1) Reported net of any associated valuation allowance.

Activity in the valuation allowance for real estate losses is summarized as follows:

	Quarter Ended June 30,					Six-Months Ended June 30,
($ in thousands)	2014			2013		2014			2013
Valuation allowance at beginning of period	$	1,193		$	5,968	$	2,017		$	5,339
Chargeoffs		(803	)		—		(1,627	)		—
Provision for real estate losses		—			76		—			705
Valuation allowance at end of period	$	390		$	6,044	$	390		$	6,044

Note 6 – Deposits

Scheduled maturities of certificates of deposit accounts (CDs) are as follows:

	At June 30, 2014					At December 31, 2013
($ in thousands)	Amount		Wtd-Avg Stated Rate			Amount		Wtd-Avg Stated Rate
Within one year	$	318,703		1.87	%	$	307,122		1.97	%
Over one to two years		111,559		1.54			167,323		1.92
Over two to three years		231,691		1.94			170,956		1.92
Over three to four years		80,129		2.34			106,700		2.50
Over four years		154,231		2.06			129,678		2.06
	$	896,313		1.92	%	$	881,779		2.03	%

CDs of $100,000 or more totaled $501 million at June 30, 2014 and $473 million at December 31, 2013 and included brokered CDs of $87 million and $91 million, respectively. At June 30, 2014, all CDs of $100,000 or more (inclusive of brokered CDs) by remaining maturity were as follows: $146 million due within one year; $52 million due over one to two years; $149 million due over two to three years; $52 million due over three to four years; and $102 million due thereafter. At June 30, 2014, brokered CDs had a weighted-average rate of 2.93% and their remaining maturities were as follows: $19 million due within one year; $8 million due over one to two years; $14 million due over two to three years; $25 million due over three to four years and $21 million due over four years.

15

Intervest Bancshares Corporation and Subsidiary

Notes to Condensed Consolidated Financial Statements (Unaudited)

Note 7 – Lines of Credit

At June 30, 2014, INB had $41 million of unsecured credit lines that were cancelable by the lender at any time. As a member of the Federal Home Loan Bank of New York (FHLB) and the Federal Reserve Bank of New York (FRB), INB can borrow from these institutions on a secured basis. At June 30, 2014, INB had available collateral consisting of investment securities and certain loans that could be pledged to support additional total borrowings of approximately $380 million from the FHLB and FRB, if needed. There were no borrowings during the reporting periods in this report.

Note 8 – Subordinated Debentures – Capital Securities

Capital Securities (commonly referred to as trust preferred securities) outstanding are summarized as follows:

	At June 30, 2014							At December 31, 2013
($ in thousands)	Principal		Accrued Interest Payable		Interest Rate			Principal		Accrued Interest Payable		Interest Rate
Capital Securities II – debentures due September 17, 2033	$	15,464	$	18		3.18	%	$	15,464	$	275		3.19	%
Capital Securities III – debentures due March 17, 2034		15,464		18		3.02	%		15,464		261		3.03	%
Capital Securities IV – debentures due September 20, 2034		15,464		14		2.63	%		15,464		223		2.65	%
Capital Securities V – debentures due December 15, 2036		10,310		8		1.88	%		10,310		109		1.89	%
	$	56,702	$	58				$	56,702	$	868

The securities are obligations of IBC’s wholly owned statutory business trusts, Intervest Statutory Trust II, III, IV and V, respectively. See note 9 to the financial statements included in our 2013 Annual Report on Form 10-K for additional discussion of the above securities.

Note 9 – Common Stock Warrant and Equity Incentive Plans

IBC has shareholder-approved equity incentive plans in place under which stock options, restricted stock and other forms of incentive compensation may be awarded from time to time to officers, employees and directors of IBC and its subsidiary. The maximum number of shares of common stock that may be awarded is 2,250,000. At June 30, 2014, 620,403 shares of common stock were available for award.

Stock Options and Stock Warrant

There were no awards of options during the reporting periods in this report.

A summary of outstanding common stock options and warrant and related information follows:

	Exercise Price Per Warrant/Option																					Wtd-Avg. Exercise Price
($ in thousands, except per share amounts)	$5.42 (1)			$17.10			$7.50			$4.02			$3.00			$2.55			Total
Outstanding at December 31, 2013		691,882			110,640			113,990			57,400			32,400			35,133			1,041,445		$	6.64
Forfeited/expired (2)		—			(300	)		(300	)		(300	)		(300	)		(200	)		(1,400	)	$	7.14
Options exercised		—			—			(750	)		(1,800	)		(6,350	)		(5,867	)		(14,767	)	$	3.17
Outstanding at June 30, 2014		691,882			110,340			112,940			55,300			25,750			29,066			1,025,278		$	6.69
Expiration date		12/23/18			12/13/17			12/11/18			12/10/19			12/09/20			12/08/21
Vested and exercisable (3)		100	%		100	%		100	%		100	%		100	%		67	%		99	%
Wtd-avg contractual remaining term (in years)		4.5			3.5			4.5			5.5			6.5			7.5			4.6
Intrinsic value at June 30, 2014 (4)	$	1,605		$	—		$	27		$	206		$	122		$	151		$	2,111

(1) The U.S. Department of the Treasury, in connection with IBC’s prior participation in the Capital Purchase Program, owns a warrant to purchase 691,882 shares of IBC’s common stock at an exercise price of $5.42 per share.

(2) Represent options forfeited or expired unexercised.

(3) The $2.55 options further vest and become 100% exercisable on December 8, 2014. Full vesting may occur earlier upon the occurrence of certain events as defined in the option agreement.

(4) Intrinsic value was calculated using the closing price of the common stock on June 30, 2014 of $7.74.

16

Intervest Bancshares Corporation and Subsidiary

Notes to Condensed Consolidated Financial Statements (Unaudited)

Note 9 – Common Stock Warrant and Equity Incentive Plans, Continued

Restricted Stock

A summary of selected information regarding awards of restricted common stock during the periods in this report follows:

($ in thousands, except per share amounts)
Grant date of award		1/23/14		1/24/13
Total restricted shares of stock awarded (1)		92,000		330,700
Grant date per share fair value (2)	$	7.65	$	4.50
Total estimated fair value of award	$	703,800	$	1,488,150
Awards scheduled to vest as follows:
January 2014		—		49,566
January 2015		30,664		170,888
January 2016		30,664		110,246
January 2017		30,672		—
		92,000		330,700

(1) For 2014, awards were as follows: a total of 12,000 shares to five executive officers and a total of 80,000 shares to eight non-employee directors (vesting in three equal installments, with one third on each of the next three anniversary dates of the grant).

For 2013, awards were as follows: a total of 182,000 shares to five executive officers (vesting in two installments, with two thirds vesting on the second anniversary of the grant and the remaining one third on the third anniversary of the grant); a total of 80,000 shares to eight non-employee directors and 68,700 shares to other officers and employees (vesting in three equal installments, with one third on each of the next three anniversary dates of the grant).

(2) Fair value of each award was based on the closing market price of IBC’s common stock on the grant date.

A summary of outstanding restricted common stock and related information follows:

															Wtd-Avg. Price Per Share
	Price Per Share
	$2.90			$4.50			$7.21			$7.65		Total
Outstanding at December 31, 2013		158,317			279,500			135,500			—		573,317		$	4.70
Shares vested and no longer restricted		(101,035	)		(47,664	)		(75,417	)		—		(224,116	)	$	4.69
Shares granted		—			—			—			92,000		92,000		$	7.65
Outstanding at June 30, 2014 (1) (2)		57,282			231,836			60,083			92,000		441,201		$	5.32

(1) All outstanding shares of restricted common stock at June 30, 2014 were unvested and subject to forfeiture.

Shares issued at $2.90 vest: 57,282 on January 19, 2015.

Shares issued at $4.50 vest: 138,664 on January 24, 2015; 93,172 on January 24, 2016.

Shares issued at $7.21 vest: 14,584 on January 19, 2015; 30,333 on January 24, 2015; 15,166 on January 24, 2016.

Shares issued at $7.65 vest: 30,664 on January 23, 2015; 30,664 on January 23, 2016; 30,672 on January 23, 2017.

(2) Vesting is subject to the grantee’s continued employment with us or, in the case of non-employee directors, the grantee’s continued service as our director on the vesting dates. All of the awards are subject to accelerated vesting upon the death or disability of the grantee or upon a change in control of IBC, as defined in the restricted stock agreements. The record holder of IBC’s restricted shares of common stock possesses all the rights of a holder of our common stock, including the right to receive dividends on the shares when declared and to vote the restricted shares. The restricted shares may not be sold, transferred, pledged, assigned, encumbered, or otherwise alienated or hypothecated until they become fully vested and transferable in accordance with the agreements.

Stock Appreciations Rights

On January 23, 2014, Cash-Settled Stock Appreciation Rights (or “SARs”) were awarded to five executive officers in the total amount of 78,000 shares. The SARs have an exercise price of $7.65 per share, a contractual term of 5 years from the date of grant, upon which they expire, and they vest in three equal installments on the first, second and third anniversaries of the grant date. The SARs are exercisable for thirty days after the holder terminates service to our Company, unless such termination is due to the holder’s death or disability, in which case the SARs are exercisable for one year after termination. The SARs give the executive the right to receive upon exercise, an amount payable in cash equal to the number of shares subject to the SAR that is being exercised multiplied by the excess of (a) the fair market value of a share of our common stock on the date the SAR is exercised, over (b) the exercise price specified in the SAR agreement, which in the case of this award is $7.65. The estimated fair value of each SAR on the date of grant was $2.28, or a total estimated fair value of $178,000 as calculated using the Black-Scholes option pricing model with the following assumptions used as inputs into the model: expected dividend yield of 1.75%; expected stock volatility of 45%; risk-free interest rate of 0.98% and an expected term of 3.5 years.

17

Intervest Bancshares Corporation and Subsidiary

Notes to Condensed Consolidated Financial Statements (Unaudited)

Note 9 – Common Stock Warrant and Equity Incentive Plans, Continued

Stock Compensation Expense and Excess Tax Benefit

Stock-based compensation expense related to all equity awards totaled $279,000 and $248,000 for the second quarter of 2014 and 2013, respectively, and $774,000 and $502,000 for the six-months ended June 30, 2014 and 2013, respectively. The expense for the 2014 second quarter and six-month period included $11,000 and $26,000, respectively, attributable to outstanding cash-settled SARs (all of which were issued in January 2014). At June 30, 2014, pre-tax compensation expense related to all non-vested equity awards not yet recognized totaled $2.1 million and such amount is expected to be recognized in the future over a weighted-average period of approximately 1.9 years.

Our income taxes payable was reduced by the excess income tax benefit arising from the vesting of restricted common stock awards and the exercise of stock option awards during the reporting periods in this report based on certain criteria as described in note 1 to the financial statements. The tax benefit amounted to $15,000 for the second quarter of 2014, compared to none in the second quarter of 2013, and $307,000 and $145,000 for the first six-months of 2014 and 2013, respectively.

Note 10 – Earnings Per Common Share and Common Stock Dividend

Net earnings applicable to common stockholders and the weighted-average number of shares used for basic and diluted earnings per common share computations are summarized in the table that follows:

	Quarter Ended June 30,				Six-Months Ended June 30,
	2014		2013		2014		2013
Basic Earnings Per Common Share:
Net earnings available to common stockholders	$	5,738,000	$	3,213,000	$	9,580,000	$	6,642,000
Weighted-Average number of common shares outstanding		22,023,783		21,923,243		22,007,706		21,877,973
Basic Earnings Per Common Share	$	0.26	$	0.14	$	0.43	$	0.30
Diluted Earnings Per Common Share:
Net earnings applicable to common stockholders	$	5,738,000	$	3,213,000	$	9,580,000	$	6,642,000
Weighted-Average number of common shares outstanding:
Common shares outstanding		22,023,783		21,923,243		22,007,706		21,877,973
Potential dilutive shares resulting from exercise of warrants /options (1)		224,696		79,906		228,099		42,307
Total average number of common shares outstanding used for dilution		22,248,479		22,003,149		22,235,805		21,920,280
Diluted Earnings Per Common Share	$	0.26	$	0.14	$	0.43	$	0.30

(1) All outstanding options/warrants to purchase shares of our common stock were considered for the Diluted EPS computations and only those that were dilutive (as determined by using the treasury stock method prescribed by GAAP) were included in the computations above. For the quarter and six-month periods of 2014, outstanding options/warrants to purchase 223,280 shares of common stock were not dilutive because the exercise price of each was above the average market price of our common stock during these periods. For both the quarter and six-month periods of 2013, 235,630 of options/warrants to purchase common stock were not dilutive because the exercise price of each was above the average market price of our common stock during these periods.

On April 24, 2014, IBC’s Board of Directors approved the initiation of a quarterly cash dividend to common shareholders. The initial quarterly dividend declared of $0.05 per common share was paid on May 26, 2014 to shareholders of record on the close of business May 15, 2014.

Note 11 – Contingencies

We are periodically a party to or otherwise involved in legal proceedings arising in the normal course of business, such as foreclosure proceedings. Based on review and consultation with our legal counsel, we do not believe that there is any pending or threatened proceeding against us, which, if determined adversely, would have a material effect on our business, results of operations, financial position or liquidity.

18

Intervest Bancshares Corporation and Subsidiary

Notes to Condensed Consolidated Financial Statements (Unaudited)

Note 12 – Regulatory Matters and Regulatory Capital

On March 7, 2014, IBC received notification from the Federal Reserve Bank of New York (the “FRB”) that the written agreement between IBC and the FRB that was in effect since January 14, 2011 was terminated. As a result, IBC is no longer subject to any regulatory agreement or related restrictions that were described in our 2013 10-K.

At June 30, 2014, IBC’s consolidated Tier 1 capital and total capital ratios were 22.19% and 20.93%, respectively, and its leverage capital ratio was 16.48. At June 30, 2014, INB’s leverage capital ratio, Tier 1 capital and total capital ratios were 15.92%, 20.18% and 21.45%, respectively. At June 30, 2014, we believe that IBC and INB met all regulatory capital adequacy requirements to which they were subject. As of the date of filing of this report, we are not aware of any conditions or events that would have changed the status of such compliance with those requirements at June 30, 2014.

Note 13 – Off-Balance Sheet Financial Instruments

INB is party to financial instruments with off-balance sheet risk in the normal course of its business to meet the financing needs of its customers. These instruments can be in the form of commitments to extend credit, unused lines of credit and standby letters of credit, and may involve, to varying degrees, elements of credit and interest rate risk in excess of the amounts recognized in our financial statements. Our maximum exposure to credit risk is represented by the contractual amount of those instruments. Commitments to extend credit are agreements to lend funds to a customer as long as there is no violation of any condition established in the contract. Such commitments generally have fixed expiration dates or other termination clauses and normally require payment of fees to INB. Since some of the commitments are expected to expire without being drawn upon, the total commitment amount does not necessarily represent future cash requirements. We evaluate each customer’s creditworthiness on a case-by-case basis. Standby letters of credit are conditional commitments issued by INB to guarantee the performance of its customer to a third party. The credit risk involved in the underwriting of letters of credit is essentially the same as that involved in originating loans. INB had no standby letters of credit outstanding at June 30, 2014 or December 31, 2013.

The contractual amounts of off-balance sheet financial instruments are as follows:

($ in thousands)	At June 30, 2014		At December 31, 2013
Commitments to extend credit	$	19,338	$	19,386
Unused lines of credit		778		877
	$	20,116	$	20,263

Note 14 – Fair Value Measurements

We use fair value measurements to record fair value adjustments to certain of our assets and to determine our fair value disclosures. In accordance with GAAP, we group our assets and liabilities measured at fair value into three levels (Level 1, 2 and 3), based on the markets in which they are traded and the reliability of the assumptions and inputs that are used to determine their fair value. Level 1 has the highest level of reliability because fair value is based on actively traded markets. See note 20 to the financial statements included in our 2013 10-K for a further discussion of the three valuation levels.

At June 30, 2014 and December 31, 2013, we had no liabilities recorded at fair value and approximately $1.0 million of assets (comprised of securities available for sale) recorded at fair value (Level 1) on a recurring basis.

The following tables provide information regarding our assets measured at fair value on a nonrecurring basis.

	Outstanding Carrying Value
	At June 30, 2014		At December 31, 2013
($ in thousands)	Level 3		Level 3
Impaired loans (1) :
Commercial real estate	$	53,156	$	52,407
Multifamily		3,110		3,128
Land		1,555		1,625
Total impaired loans		57,821		57,160
Foreclosed real estate		2,650		10,669

(1) Outstanding carrying value for impaired loans excludes a specific valuation allowance. See note 4 to the financial statements in this report.

19

Intervest Bancshares Corporation and Subsidiary

Notes to Condensed Consolidated Financial Statements (Unaudited)

Note 14 – Fair Value Measurements, Continued

	Accumulated Losses on Outstanding Balance as of:				Total Losses (Gains) (1)
					Quarter Ended June 30,						Six-Months Ended June 30,
	June 30, 2014		December 31, 2013
($ in thousands)					2014			2013			2014			2013
Impaired loans:
Commercial real estate	$	7,867	$	11,522	$	(441	)	$	434		$	(466	)	$	823
Multifamily		592		594		(27	)		(534	)		(17	)		(957	)
Land		161		500		114			(7	)		(339	)		(21	)
Total impaired loans		8,620		12,616		(354	)		(107	)		(822	)		(155	)
Impaired securities		—		—		—			325			—			691
Foreclosed real estate		390		2,017		(131	)		(642	)		(203	)		(13	)

(1) Represents total losses or (gains) recognized on all assets measured at fair value on a nonrecurring basis during the period indicated. The losses or (gains) for impaired loans represent the change (before chargeoffs and recoveries) during the period in the corresponding specific valuation allowance, while the losses (gains) for foreclosed real estate represent writedowns in carrying values subsequent to foreclosure (recorded as provisions for real estate losses) adjusted for any recoveries of prior write downs and (gains) or losses from the transfer/sale of properties during the period. The losses on securities represent the total of other than temporary impairment charges, which are recorded as component of noninterest income.

The following table presents information regarding the change in assets measured at fair value on a nonrecurring basis for the three- and six-months periods ended June 30, 2014.

($ in thousands)	Impaired Loans			Foreclosed Real Estate
Balance at December 31, 2013	$	57,160		$	10,669
Net new impaired loans		3,466			—
Principal repayments/sales		(762	)		(1,406	)
Gain from sales		—			72
Balance at March 31, 2014		59,864			9,335
Principal repayments/sales		(2,043	)		(6,816	)
Gain from sales		—			131
Balance at June 30, 2014	$	57,821		$	2,650

The following table presents information regarding the change in assets measured at fair value on a nonrecurring basis for the three- and six-months periods ended June 30, 2013.

($ in thousands)	Impaired Securities			Impaired Loans			Foreclosed Real Estate
Balance at December 31, 2012	$	3,721		$	65,973		$	15,923
Net new impaired loans		—			1,485			—
OTTI writedowns		(366	)		—			—
Impaired loans transferred to foreclosed real estate		—			(3,040	)		3,040
Principal repayments/sales		(63	)		(9,467	)		—
Chargeoffs of impaired loans		—			(115	)		—
Writedowns of carrying value subsequent to foreclosure		—			—			(629	)
Balance at March 31, 2013		3,292			54,836			18,334
Net new impaired loans		—			6,761			—
OTTI writedowns		(325	)		—			—
Principal repayments/sales		(44	)		(9,241	)		(4,107	)
Chargeoffs of impaired loans		—			(1,823	)		—
Writedowns of carrying value subsequent to foreclosure		—			—			(150	)
Recoveries of prior writedowns		—			—			74
Gains from sales		—			—			718
Balance at June 30, 2013	$	2,923		$	50,533		$	14,869

20

Intervest Bancshares Corporation and Subsidiary

Notes to Condensed Consolidated Financial Statements (Unaudited)

Note 14 – Fair Value Measurements, Continued

We are required to disclose the estimated fair value of each class of our financial instruments for which it is practicable to estimate, which values are shown in the table that follows. The fair value of a financial instrument is the current estimated amount that would be exchanged between willing parties, other than in a forced liquidation. The fair value estimates are made at a specific point in time based on available information. A discussion regarding the assumptions used to compute the estimated fair values disclosed below can be found in note 20 to the financial statements included our 2013 10-K.

The carrying and estimated fair values of our financial instruments are as follows:

	At June 30, 2014				At December 31, 2013
($ in thousands)	Carrying Value		Fair Value		Carrying Value		Fair Value
Financial Assets:
Cash and cash equivalents (1)	$	35,367	$	35,367	$	24,700	$	24,700
Time deposits with banks (1)		5,370		5,370		5,370		5,370
Securities available for sale, net (1)		994		994		965		965
Securities held to maturity, net (2)		358,338		357,311		383,937		378,507
FRB and FHLB stock (3)		8,302		8,302		8,244		8,244
Loans receivable, net (3)		1,131,359		1,142,659		1,099,689		1,100,858
Accrued interest receivable (3)		4,494		4,494		4,861		4,861
Loan fees receivable (3)		2,165		1,709		2,298		1,808
Total Financial Assets	$	1,546,389	$	1,556,206	$	1,530,064	$	1,525,313
Financial Liabilities:
Deposits (3)	$	1,277,823	$	1,289,498	$	1,282,232	$	1,294,690
Borrowed funds plus accrued interest payable (3)		56,760		56,451		57,570		57,260
Accrued interest payable on deposits (3)		1,440		1,440		1,508		1,508
Commitments to lend (3)		397		397		408		408
Total Financial Liabilities	$	1,336,420	$	1,347,786	$	1,341,718	$	1,353,866
Net Financial Assets	$	209,969	$	208,420	$	188,346	$	171,447

(1) We consider these fair value measurements to be Level 1.

(2) We consider these fair value measurements to be Level 2.

(3) We consider these fair value measurements to be Level 3.

Note 15 – Subsequent Events

On July 14, 2014, IBC’s Board of Directors declared a quarterly dividend of $0.05 per common share payable August 26, 2014 to shareholders of record at the close of business August 15, 2014.

On July 31, 2014, IBC and INB, entered into a definitive agreement and plan of merger (the “Agreement”) with Bank of the Ozarks, Inc. (“Ozarks”) and its wholly-owned bank subsidiary, Bank of the Ozarks, relating to a proposed merger transaction. The Agreement provides that, upon the terms and subject to the conditions set forth therein, (i) the Company will merge with and into Ozarks, with Ozarks continuing as the surviving corporation (the “Merger”), and (ii) INB will merge with and into Bank of the Ozarks, with Bank of the Ozarks continuing as the surviving bank (the “Bank Merger” and, collectively with the “Merger,” the “Mergers”).

Subject to the terms and conditions of the Agreement, upon completion of the Merger, each share of IBC’s common stock, issued and outstanding immediately prior to the effective time of the Merger will be converted into the right to receive shares of Ozarks common stock (plus cash in lieu of any fractional share) based on the purchase price of $228.5 million (less the amount paid by IBC to cash out outstanding stock options and stock appreciation rights and to redeem all outstanding stock warrants prior to closing), subject to certain additional purchase price adjustments set forth in the Agreement. The number of Ozarks shares to be issued will be determined based on Ozarks’ 10-day average closing stock price as of the fifth business day prior to the closing date, subject to a minimum and maximum price of $23.95 and $39.91, respectively.

All IBC stock options and stock appreciation rights, whether or not vested, will be cashed out by IBC prior to closing and shares of restricted stock will become fully vested in connection with the transaction and be exchanged for shares of Ozarks common stock like the other shares of IBC’s common stock. The Agreement has been approved by the boards of directors of each of IBC and Ozarks. Subject to the required approval of IBC’s shareholders, requisite regulatory approvals, the effectiveness of the registration statement to be filed by Ozarks with respect to the stock to be issued in the transaction, and other customary closing conditions, the Merger is expected to be completed late in the fourth quarter of 2014 or in the first quarter of 2015.

21

Intervest Bancshares Corporation and Subsidiary

Review by Independent Registered Public Accounting Firm

Hacker, Johnson & Smith P.A., P.C., our independent registered public accounting firm, has made a limited review of our financial data as of June 30, 2014 and for the three- and six-month periods ended June 30, 2014 and 2013 presented in this document, in accordance with the standards established by the Public Company Accounting Oversight Board.

The report of Hacker, Johnson & Smith P.A., P.C. furnished pursuant to Article 10 of Regulation S-X is included on the following page herein.

22

Report of Independent Registered Public Accounting Firm

Board of Directors and Stockholders

Intervest Bancshares Corporation

New York, New York:

We have reviewed the accompanying condensed consolidated balance sheet of Intervest Bancshares Corporation and Subsidiary (the “Company”) as of June 30, 2014 and the related condensed consolidated statements of earnings comprehensive income for the three- and six-month periods ended June 30, 2014 and 2013, and the related condensed consolidated statements of changes in stockholders’ equity and cash flows for the six-month periods ended June 30, 2014 and 2013. These interim financial statements are the responsibility of the Company’s management.

We conducted our reviews in accordance with the standards of the Public Company Accounting Oversight Board (United States). A review of interim financial information consists principally of applying analytical procedures to financial data and making inquiries of persons responsible for financial and accounting matters. It is substantially less in scope than an audit conducted in accordance with the standards of the Public Company Accounting Oversight Board, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion.

Based on our reviews, we are not aware of any material modifications that should be made to the condensed consolidated financial statements referred to above for them to be in conformity with U.S. generally accepted accounting principles.

We have previously audited, in accordance with the standards of the Public Company Accounting Oversight Board, the consolidated balance sheet of the Company as of December 31, 2013, and the related consolidated statements of earnings, comprehensive income, changes in stockholders’ equity and cash flows for the year then ended (not presented herein); and in our report dated March 3, 2014, we, based on our audit, expressed an unqualified opinion on those consolidated financial statements. In our opinion, the information set forth in the accompanying condensed consolidated balance sheet as of December 31, 2013 is fairly stated, in all material respects, in relation to the consolidated balance sheet from which it has been derived.

/s/ Hacker, Johnson & Smith P.A., P.C.

HACKER, JOHNSON & SMITH P.A., P.C.

Tampa, Florida

August 4, 2014

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ITEM 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

General

Intervest Bancshares Corporation (“IBC”) is the parent company of Intervest National Bank (“INB”). References in this report to “we,” “us” and “our” refer to these entities on a consolidated basis, unless otherwise specified. For a discussion of our business, see note 1 to the financial statements in our 2013 Annual Report on Form 10-K (“2013 10-K”). Our business is also affected by various risk factors, which are disclosed beginning on page 27 of our 2013 10-K in Item 1A thereof and updated as needed in Item 1A of Part II of our reports on Form 10-Q. Management’s discussion and analysis of financial condition and results of operations that follows should be read in conjunction with the accompanying financial statements in this report on Form 10-Q as well as our entire 2013 10-K.

Available Information

IBC’s annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, Proxy Statements and any amendments to those reports can be obtained (excluding exhibits) without charge by writing to: Intervest Bancshares Corporation, Attention: Secretary, One Rockefeller Plaza (Suite 400) New York, New York 10020. In addition, the reports (with exhibits) are available on the Securities and Exchange Commission’s website at www.sec.gov. IBC has a website at www.intervestbancsharescorporation.com that is used for limited purposes and contains certain reports after they are electronically filed with or furnished to the SEC. INB also has a website at www.intervestnatbank.com. The information on both of these web sites is not and should not be considered part of this report and is not incorporated by reference in this report.

Critical Accounting Policies

We consider our critical accounting policies to be those that relate to the determination of the following: our allowance for loan losses; our valuation allowance for real estate losses; other than temporary impairment assessments of our security investments; and the need for and amount of a valuation allowance for our deferred tax asset. These items are considered critical accounting estimates because each is highly susceptible to change from period to period and require us to make numerous assumptions about a variety of information that directly affect the calculation of the amounts reported in our consolidated financial statements. For example, the impact of a large unexpected chargeoff could deplete the allowance for loan losses and potentially require us to record increased loan loss provisions to replenish the allowance, which could negatively affect our operating results and financial condition. A detailed discussion of our critical accounting policies and the factors and estimates we use in applying them can be found under the caption “Critical Accounting Policies” on pages 42 to 45 in our 2013 10-K.

Overview

Net earnings for the second quarter of 2014 (Q2-14) increased 79% to $5.7 million, or $0.26 per share, from $3.2 million, or $0.14 per share, for the second quarter of 2013 (Q2-13). For the first half of 2014 (6mths-14), net earnings increased 44% to $9.6 million, or $0.43 per share, from $6.6 million, or $0.30 per share, for the first half of 2013 (6mths-13).

Operating Summary

• Net interest and dividend income increased to $10.9 million in Q2-14, from $8.6 million in Q2-13, and to $21.1 million in 6mths-14, from $17.6 million in 6mths-13, reflecting a higher net interest margin. The margin (exclusive of loan prepayment income) increased to 2.84% in Q2-14 and 2.79% in 6mths-14, from 2.30% and 2.33% in the same periods of 2013.

• Credits for loan losses of $1.0 million and $1.5 million were recorded in Q2-14 and 6mths-14, respectively, compared to $0.8 million and $1.8 million in the same periods of 2013. The amounts in the 2014 periods reflected improved credit quality resulting from the payoff of four substandard loans totaling $6.9 million in Q2-14 and an upgrade of one loan ($1.6 million) in Q1-14, while the 2013 amounts were due to partial recoveries of prior loan charge offs.

• Noninterest income (inclusive of loan prepayment income) increased to $2.5 million in Q2-14 and to $3.3 million in 6mths-14, from $0.7 million and $1.4 million in the same periods of 2013. The increases were due to a higher level of loan prepayment income (including $0.7 million in Q2-14 from one loan) and the absence of security impairment charges in the 2014 periods.

• No provisions for real estate losses were required on properties owned through foreclosure (REO) in the 2014 periods, compared to $0.1 million in Q2-13 and $0.7 million in 6mths-13.

• Real estate expenses, net of rental and other income, amounted to $0.3 million in Q2-14 and $0.5 million in 6mths-14, compared to net income of $0.3 million in Q2-13 and net income of $1.3 million in 6mths-13. The net income for the 2013 periods reflected recoveries of expenses associated with previously owned properties. Exclusive of these recoveries, REO expense would have been $0.5 million and $1.0 million for 2013 periods, respectively.

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• Operating expenses decreased slightly to $3.9 million in Q2-14, from $4.0 million in Q2-13, but increased to $8.5 million in 6mths-14, from $8.1 million in 6mths-13. The six-month period increase was primarily due to normal salary increases and higher stock compensation and employee bonus expense, partially offset by a decrease in FDIC insurance premiums.

• Our efficiency ratio, which measures our ability to control expenses as a percentage of revenues, continued to be favorable and improved to 27% for Q2-14 and 35% for 6mths-14, from 43% in the same periods of 2013.

• There were no preferred dividend requirements in the 2014 periods, compared to $0.3 million in Q2-13 and $0.8 million in 6mths-13. The 2013 dividend requirements related to IBC’s TARP preferred stock, which was repurchased and retired during June and August 2013.

Balance Sheet Summary

• Assets amounted to $1.57 billion at June 30, 2014, unchanged from December 31, 2013, as increases of $31 million in loans and $11 million in cash and short-term investments were offset by decreases of $26 million in security investments and $8 million in REO.

• Loans increased to $1.16 billion at June 30, 2014, from $1.13 billion at December 31, 2013. New loan originations for 6mths-14 increased to $165 million from $124 million for 6mths-13. Loan repayments decreased to $134 million in 6mths-14 from $172 million in 6mths-13.

• Deposits amounted to $1.28 billion at June 30, 2014, a decrease of $4.4 million from December 31, 2013.

• Stockholders’ equity increased to $207 million at June 30, 2014, from $197 million at December 31, 2013, reflecting primarily an increase in retained earnings of $8.5 million, net of a $1.1 million cash dividend on common stock paid on May 26, 2014.

• INB’s regulatory capital ratios at June 30, 2014 were as follows: Tier One Leverage – 15.92%; Tier One Risk-Based Capital – 20.18%; and Total Risk-Based Capital – 21.45%.

• Book value per common share increased to $9.38 at June 30, 2014, from $8.99 at December 31, 2013.

Asset Quality Summary

• Impaired loans (comprised of nonaccrual loans, restructured loans (TDRs) and one other accruing and performing loan) totaled $57.8 million at June 30, 2014, compared to $57.2 million at December 31, 2013.

• Nonaccrual loans decreased to $23.0 million at June 30, 2014, from $35.9 million at December 31, 2013, primarily reflecting one loan transferred to an accruing TDR status. Nonaccrual loans included TDRs at each date of $17.7 million and $33.2 million, respectively. These TDRs were current and had a weighted-average interest rate of 4.25% as of June 30, 2014.

• Accruing TDR loans increased to $27.1 million at June 30, 2014 from $13.4 million at December 31, 2013, due to the transfer of the loan noted above. These TDR loans had a weighted-average interest rate of approximately 5% at June 30, 2014.

• The allowance for loan losses was $26.6 million, or 2.30% of total loans, at June 30, 2014, compared to $27.8 million, or 2.47%, at December 31, 2013. The allowance included specific reserves allocated to impaired loans at each date (totaling $5.5 million and $6.1 million, respectively).

• REO decreased to $2.6 million at June 30, 2014, from $10.6 million at December 31, 2013, reflecting the sales of two properties.

Termination of Agreement

As previously reported, on March 13, 2014, the Federal Reserve Bank of New York announced the termination of the written agreement dated as of January 14, 2011 between IBC and the FRB. The termination was effective March 7, 2014. As a result of this termination and the March 2013 termination of INB’s formal agreement with its primary regulator, neither IBC or INB is subject to any formal or informal regulatory agreement or related restrictions that were described in our 2013 10-K.

Common Stock Dividend

On April 24, 2014, IBC’s Board of Directors approved the initiation of a regular quarterly cash dividend to common shareholders. The initial quarterly dividend declared of $0.05 per common share was paid on May 26, 2014 to shareholders of record at the close of business May 15, 2014. IBC also announced on July 16, 2014 that its Board of Directors declared a quarterly dividend of $0.05 per common share payable on August 26, 2014 to shareholders of record at the close of business August 15, 2014.

Merger Agreement

On July 31, 2014, IBC and INB, entered into a definitive agreement and plan of merger (the “Agreement”) with Bank of the Ozarks, Inc. (“Ozarks”) and its wholly-owned bank subsidiary, Bank of the Ozarks, relating to a proposed merger transaction. For further discussion of this transaction, see note 15 to the financial statements in this report.

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Comparison of Financial Condition at June 30, 2014 and December 31, 2013

General

Total assets at June 30, 2014 amounted to $1.57 billion, unchanged from December 31, 2013, as increases of $31 million in loans and $11 million in cash and short-term investments were offset by decreases of $26 million in security investments and $8 million in REO.

Cash and Cash Equivalents

Cash and cash equivalents amounted to $35 million at June 30, 2014, compared to $25 million at December 31, 2013. They include interest-bearing and noninterest-bearing cash balances with banks and other short-term investments, and they fluctuate based on various factors, including our liquidity needs, loan demand, deposit flows, calls of securities, repayments of borrowed funds and alternative investment opportunities.

Time Deposits with Banks

Time deposits with banks amounted to $5.4 million at June 30, 2014, unchanged from December 31, 2013. These deposits had a weighted-average yield of 1.12% and remaining maturity of 1.3 years at June 30, 2014. Most of these deposits are Community Reinvestment Act eligible investments.

Securities Available for Sale and Securities Held to Maturity

Securities available for sale at June 30, 2014 and December 31, 2013 amounted to approximately $1.0 million. The investment represented approximately 92,850 and 91,700 shares, respectively, of an intermediate bond fund (trading symbol CRAIX) that holds securities that are deemed to be qualified under the Community Reinvestment Act.

Securities held to maturity decreased to $358 million at June 30, 2014, from $384 million at December 31, 2013, reflecting calls of securities exceeding new purchases. Securities are classified as held to maturity (“HTM”) and are carried at amortized cost when INB has the intent and ability to hold them to maturity. INB invests primarily in U.S. government agency debt obligations to emphasize safety and liquidity. For additional information on securities, see note 2 to the financial statements in this report.

Investments in Federal Reserve Bank of New York (FRB) and Federal Home Loan Bank of New York (FHLB) Stock

In order for INB to be a member of the FRB and FHLB, INB must maintain an investment in the capital stock of each entity, which amounted to $5.9 million and $2.4 million, respectively, at June 30, 2014, compared to $5.9 million and $2.3 million, respectively, at December 31, 2013. The FRB stock has historically paid a dividend of 6%, while the FHLB stock dividend fluctuates quarterly and was most recently at the rate of 3.90%. The total required investment fluctuates based on INB’s capital level for the FRB stock and INB’s loans and outstanding FHLB borrowings for the FHLB stock.

Loans Receivable, Net

Major classifications of loans receivable are summarized as follows:

	At June 30, 2014					At December 31, 2013
($ in thousands)	# of Loans		Amount			# of Loans		Amount
Loans Secured By Real Estate:
Commercial loans		414	$	888,043			394	$	838,766
Multifamily loans		142		205,258			138		210,270
One to four family loans		16		59,211			20		72,064
Land loans		5		8,381			5		9,178
		577		1,160,893			557		1,130,278
All Other Loans:
Business loans		18		1,031			19		1,061
Consumer loans		8		170			12		211
		26		1,201			31		1,272
Loans receivable, gross		603		1,162,094			588		1,131,550
Deferred loan fees				(4,137	)				(4,028	)
Loans receivable, net of deferred fees				1,157,957					1,127,522
Allowance for loan losses				(26,598	)				(27,833	)
Loans receivable, net			$	1,131,359				$	1,099,689
Loans on nonaccrual status			$	23,005				$	35,903
Loans restructured and on accrual status				27,088					13,429
Accruing loans contractually past due 90 days or more				2,993					4,087

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The $31 million net increase in loans receivable, gross at June 30, 2014 compared to December 31, 2013 reflected $164.6 million of new originations and $0.3 million of recoveries of prior charge offs, partially offset by $110.1 million of payoffs and $24.2 million of principal amortization and partial pay downs. New originations were comprised of $131 million of commercial real estate (CRE) loans, $28 million of multifamily loans and $5 million of loans secured by investor-owned, 1-4 family condominiums. New CRE loans included $25 million of single tenant credit and $28 million of single tenant non-credit properties.

The table below sets forth the activity in the net loan portfolio for the periods indicated.

($ in thousands)	Quarter Ended March 31, 2014			Quarter Ended June 30, 2014			Six-Months Ended June 30, 2014
Loans receivable, net, at beginning of period	$	1,099,689		$	1,114,813		$	1,099,689
Originations		66,816			97,799			164,617
Principal repayments		(52,017	)		(82,319	)		(134,338	)
Recoveries		85			180			265
Net (increase) decrease in deferred loan fees		(175	)		66			(109	)
Net decrease in allowance for loan losses		415			820			1,235
Loans receivable, net, at end of period	$	1,114,813		$	1,131,359		$	1,131,359

New originations for the first half of 2014 had a weighted-average rate, term, debt service coverage ratio and loan-to-value ratio of 4.72%, 6.6 years, 1.24x and 59%, respectively, compared to 4.47%, 5.9 years, 1.29x and 58%, respectively, for new loans originated in the first half of 2013. Nearly all of the new loans in both periods had fixed interest rates. Loans paid off in 6mths-14 and 6mths-13 had a weighted-average rate of 5.22% and 5.98%, respectively. Loans with fixed interest rates constituted approximately 99% of the portfolio at June 30, 2014, which included some loans that have small predetermined interest rate increases over the life of the loan. The entire loan portfolio had a weighted-average remaining contractual term of 4.8 years as of June 30, 2014.

The table below sets forth information on our new loan originations for the first half of 2014.

								Weighted-Average
($ in thousands)	#of Loans (1)		Amount		% of Total			Interest Rate			Effective Yield (2)			Term (3)		DSCR (4)		Loan-to- Value Ratio
Commercial Real Estate:
Shopping centers – anchored		3	$	7,950		5	%		4.98	%		5.05	%		9.6		0.82		57	%
Mixed-use commercial		8		19,650		12	%		4.25	%		4.39	%		4.7		0.81		44	%
Single tenant – credit		9		25,290		15	%		4.56	%		4.62	%		9.5		1.49		56	%
Single tenant – noncredit		21		27,737		17	%		4.89	%		4.94	%		6.9		1.28		62	%
Office buildings		4		21,392		13	%		5.21	%		5.34	%		5.2		1.92		60	%
Industrial/warehouses		4		7,691		5	%		4.48	%		4.74	%		2.9		0.25		65	%
Mobile home park		8		21,233		13	%		4.88	%		4.95	%		9.6		1.32		65	%
Multifamily (5 or more units):
Rent regulated apartments		6		7,663		5	%		3.87	%		3.99	%		3.4		0.93		56	%
Non-rent regulated apartments		3		2,950		2	%		4.06	%		4.10	%		3.8		0.99		73	%
Garden apartments		4		9,763		6	%		4.64	%		4.79	%		3.8		1.10		67	%
Mixed-use multifamily		7		7,945		5	%		4.38	%		4.40	%		6.5		1.13		55	%
One to four family (investor condos)		3		5,238		3	%		4.71	%		4.86	%		2.6		1.54		61	%
Personal and Business		4		115		—	%		4.45	%		4.45	%		4.1		1.00		60	%
Totals		84	$	164,617		100	%		4.72	%		4.81	%		6.6		1.24		59	%

(1) Advances on existing loans for purposes of this table are counted as a new loan.

(2) Computed using origination and exit fee income, net of direct origination costs, as a level yield adjustment over the life of the loan.

(3) Represents contractual maturity (expressed in number of years) and does not consider the impact of self-liquating loans.

(4) Debt service coverage ratio (DSCR) is computed based on the property’s actual cash flows at date of origination and excludes pro-forma (or projected) cash flows in cases where the property is vacant or substantially vacant and is in the process of being leased or stabilized to market rents. Also excludes any escrow deposits made by the borrower with us in order to establish a minimum annual DSCR of 1.20 (for the subsequent 12-month period only) at time of origination in cases where the property’s cash flow is inadequate.

The following table sets forth information regarding loans outstanding at June 30, 2014 by year of origination.

($ in thousands) Year Originated (1)	Balance Outstanding		% of Total			Balance Rated Substandard		% of Outstanding			Balance Nonaccrual		% of Outstanding
2004 and prior	$	113,879		10	%	$	—		—	%	$	—		—	%
2005		42,105		4			3,110		7			—		—
2006		74,992		6			8,695		12			8,695		12
2007		126,290		10			36,749		29			14,310		11
2008		97,700		8			7,727		8			—		—
2009		66,180		6			—		—			—		—
2010		13,424		1			2,149		16			—		—
2011		35,665		3			—		—			—		—
2012		182,474		16			500		—			—		—
2013		267,134		23			—		—			—		—
2014		142,251		12			—		—			—		—
	$	1,162,094		100	%	$	58,930		5	%	$	23,005		2	%

(1) Does not consider those loans that have been extended or renewed since the date of original origination.

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At June 30, 2014, the loan portfolio was concentrated in CRE loans and was comprised of 76% of loans secured by CRE, 18% secured by multifamily properties and 5% by investor-owned, 1-4 family condominiums. The single tenant category totaled $206 million at June 30, 2014, or approximately 23% of the total CRE loan portfolio, up from $157 million and 19% at December 31, 2013.

The table below sets forth information on the properties securing the real estate loan portfolio at June 30, 2014.

	New York				Florida				Other States				Total Loans						Impaired Loans
($ in thousands)	#		Amount		#		Amount		#		Amount		#		Amount		%
Commercial Real Estate:
Shopping centers – anchored (1)		5	$	10,059		6	$	21,557		7	$	20,902		18	$	52,518		4.5	$	10,411
Shopping centers – grocery anchored (1)		2		18,276		1		1,261		2		6,383		5		25,920		2.2		—
Shopping centers – unanchored (1)		45		100,633		14		34,566		6		9,048		65		144,247		12.4		17,143
Mixed-use commercial (2)		75		173,441		5		14,524		3		3,132		83		191,097		16.5		—
Single tenant – credit (3)		7		8,956		6		8,701		10		24,257		23		41,914		3.6		—
Single tenant – noncredit (3)		36		50,478		34		38,743		58		74,710		128		163,931		14.1		—
Office buildings (4)		12		33,885		15		51,356		5		12,662		32		97,903		8.4		22,980
Industrial/warehouses (5)		14		34,691		3		3,936		—		—		17		38,627		3.3		—
Hotels (6)		7		33,378		4		19,721		—		—		11		53,099		4.6		—
Mobile home parks (7)		—		—		20		38,580		2		7,875		22		46,455		4.0		—
Mini-storage (8)		3		7,766		—		—		—		—		3		7,766		0.7		—
Parking lots/garages		6		22,716		—		—		—		—		6		22,716		2.0		2,622
Other commercial		1		1,850		—		—		—		—		1		1,850		0.2		—
Multifamily (5 or more units):
Rent regulated apartments (9)		33		43,363		—		—		—		—		33		43,363		3.7		—
Non-rent regulated apartments (9)		22		25,067		21		3,932		3		1,942		46		30,941		2.7		—
Garden apartments (10)		2		1,531		18		46,294		3		5,904		23		53,729		4.6		3,110
Mixed-use multifamily (2)		39		76,436		—		—		1		789		40		77,225		6.7		—
One to four family (11)		2		5,168		14		54,043		—		—		16		59,211		5.1		—
Land		1		3,500		3		3,326		1		1,555		5		8,381		0.7		1,555
Total real estate loans		312	$	651,194		164	$	340,540		101	$	169,159		577	$	1,160,893		100.0	$	57,821
Average loan balance			$	2,087			$	2,076			$	1,675			$	2,012
Loans on nonaccrual status		1	$	2,622		2	$	9,005		2	$	11,378		5	$	23,005		2.0
Loans with full or partial personal guarantees		194	$	363,861		136	$	266,925		66	$	114,811		396	$	745,597		64.2
Loans with DSCRs of less than 1.00x (12)		54	$	98,709		14	$	32,819		11	$	27,849		79	$	159,377		13.7
Loans with DSCRs of 1.00x to 1.19x (12)		35	$	75,970		41	$	44,637		6	$	7,252		82	$	127,859		11.0

(1) Comprised predominantly of neighborhood/community strip shopping centers containing general merchandise and convenience retailers, including grocery, drug, service, personal care, repair, discount and home improvement stores. An anchored center contains one tenant, which may be either a credit or non-credit tenant, whose percentage of the property’s total income and rentable space is 50% or greater.

(2) Comprised of properties having both residential and commercial use, usually containing retail or commercial space on the ground floor. Mixed use loans are classified as multifamily or commercial based on the greater percentage of income from residential or commercial use.

(3) Comprised of properties occupied by a single tenant consisting mostly of restaurants, bank branches, fast food establishments, discount retailers, retail drugstore chains, convenience stores, grocery stores, professional offices, as well as local retailers and service and repair businesses. The single tenants have been further segmented by those with an investment grade rating (minimum BBB rating on its publicly traded debt), or credit tenants, and those that are either non-rated or have a less than investment grade rating, or non-credit tenants.

The table below summarizes the single-tenant category by the ten largest tenants and by industry based on principal balance outstanding:

($ in thousands)	# of Loans		Amount		Industry	Amount
Rite Aid		11	$	23,001	Restaurants	$	46,646
Walgreens		4		12,141	Drugstores		42,980
Kentucky Fried Chicken		11		8,101	Fast Food		31,181
CVS		4		7,838	Specialty Retail		25,080
Open Peak Inc.		1		6,860	Convenience		14,895
Applebee’s		4		6,717	Personal Services		12,400
IHOP		4		6,141	Other		9,294
Walmart		1		6,058	Retail		9,800
Taco Bell		5		5,638	Banks		8,859
Hardees		7		5,487	Automotive		4,710
		52	$	87,982		$	205,845

(4) Comprised of office building properties, normally with multiple floors with multiple tenants engaged in various businesses, including medical, administrative and legal services.

(5) Comprised typically of commercial buildings used for or intended to be used for the storage of goods by manufacturers, importers, exporters, wholesalers, transport businesses, etc. They are usually large buildings in industrial areas of cities/towns/villages that contain one or more tenants.

(6) Hotel properties in Florida are comprised of flagged hotels located in Orlando, Miami Beach, Clearwater and Tampa areas, with room counts ranging from 50 to over 200 and floors ranging from 2 to 7. Hotel properties in New York are comprised predominantly of single occupancy room hotels (commonly known as “SROs”) in New York City and Brooklyn, and several small non-flagged hotels/motels in Long Island.

(7) Mobile homes are often sited in land lease communities known as mobile home parks. These communities allow home owners to rent space on which to place a home, normally consisting of single or double manufactured homes. In addition to providing space, the community can provide basic utilities and other amenities.

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Notes to preceding table continued:

(8) Mini-storage facilities, also known as self-storage, are storage space facilities leased to individuals or companies for storing various personal items or business parts or inventory. Mini-storage facilities may also provide other services in addition to rentals.

(9) Comprised of apartment buildings principally in the 5 boroughs of New York City consisting mostly of pre- and post-war walkup, elevator and loft buildings, including brownstones and townhouses, further segmented by those subject to rent regulations (rent control and rent stabilization).

(10) Comprised of garden style apartments, which refer to a large development of small apartment buildings two to four stories tall where there are no internal hallways, although adjacent apartments may share a wall. Entrance to the apartments is from a common stairwell or patio, and the buildings are typically surrounded by outdoor landscaping or patios.

(11) Comprised nearly all of investor-owned individual residential condominium dwelling units or townhouses. These loans are made primarily to investors who purchase multiple (blocks of) units/townhouses that remain unsold after a condo conversion or the unsold units in a new development. The units are normally rented (or in the process of being rented) for an extended period of time until they can be sold as originally intended. The loans are underwritten in accordance with our multifamily underwriting policies and their risk characteristics are essentially the same as our multifamily real estate lending, and we risk weight them for regulatory capital purposes the same as substantially all of the rest of our loan portfolio, or at 100%.

(12) Consist of loans where the underlying collateral is not producing adequate cash flows to service the loan’s required payments (predominantly in cases where the collateral is a vacant or substantially vacant building or land) and such payments are being made in full or in part by the borrower’s other sources of funds. In many such cases, the borrower or its principals has guaranteed the loan and/or deposited escrow funds with us to cover the loan’s contractual debt service payments for a portion of the loan term while the underlying collateral property is being leased up or improved to increase rents. These types of loans include loans known in the industry as bridge loans. In accordance with our internal grading criteria (which considers loan-to-value ratios, personal guarantees, projected stabilized cash flows from the collateral, deposits of debt service payments with us and other qualitative factors), the total amount of these loans were internally graded as follows at June 30, 2014: $228 million were Pass rated, $5 million were Special Mention rated and $54 million were Substandard rated. Such conclusions on ratings may or may not be viewed in the same manner as another third-party. See Note 1 to our audited consolidated financial statements included in our 2013 10-K for a discussion of our internal grading criteria.

The table below sets forth information regarding our loans of $10 million or more at June 30, 2014.

($ in thousands) Property Type	Property Location	Principal Balance		Current Interest Rate (1)			Maturity Date		Days Past Due		Status/Rating
Unanchored Retail Center	White Plains, New York	$	16,132		4.30	%		04/01/2017		None	Accrual/Pass
Hotel	Orlando, Florida		15,573		5.00	%		01/01/2018		None	Accrual/Pass
Office Building	Fort Lauderdale, Florida		13,900		4.75	%		03/01/2019		None	Accrual/Pass
Office Building	Miami Gardens, Florida		13,840		5.25	%		10/01/2018		None	TDR-accrual (2)
Commercial Mixed Use	Brooklyn, New York		11,619		4.13	%		10/01/2018		None	Accrual/Pass
Grocery Anchored Retail Center	Manorville, New York		11,283		4.38	%		08/01/2028		None	Accrual/Pass
Hotel	New York, New York		11,009		4.00	%		12/01/2016		None	Accrual/Pass
Commercial Mixed Use	New York, New York		10,928		4.13	%		04/01/2019		None	Accrual/Pass
Hotel	Woodbury, New York		10,532		4.00	%		07/01/2019		None	Accrual/Pass
Mobile Home Park	Avon Park, Florida		10,125		4.75	%		06/01/2024		None	Accrual/Pass
Commercial Mixed Use	New York, New York		10,075		4.50	%		07/01/2022		None	Accrual/Pass
		$	135,016

(1) Rates are all fixed; the loan on the office building in Miami and loan on the mobile home park has scheduled step-ups in rate.

(2) Loan restructured in June 2011 and has performed in accordance with its restructured terms through June 30, 2014. Loan placed on accrual status in June 2014. Current monthly payments are comprised of principal and interest payments at a 5.125% interest rate. The interest rate increases each year on June 1 (beginning on June 1, 2015), as follows to: 5.375%, 5.50%, 5.625% and 5.75%. Loan is rated Substandard.

The table below details scheduled contractual principal repayments of the loan portfolio as of June 30, 2014 by type.

($ in thousands)	Due Within One Year		Due Over One to Five Years		Due Over Five Years		Total
Commercial real estate	$	80,624	$	500,203	$	307,216	$	888,043
Multifamily		17,101		142,884		45,273		205,258
One to four family		9,956		34,579		14,676		59,211
Land		5,055		3,326		—		8,381
Commercial business		700		331		—		1,031
Consumer		130		40		—		170
	$	113,566	$	681,363	$	367,165	$	1,162,094

For additional information on and discussion of our loan portfolio, including a discussion of our recent lending trends, underwriting standards and other pertinent information, see the section entitled “Lending Activities” in Item 1 “Business” of our 2013 10-K and note 3 to the financial statements in this report.

Allowance for Loan Losses

The allowance for loan losses decreased to $26.6 million, or 2.30% of total loans, at June 30, 2014, from $27.8 million, or 2.47%, at December 31, 2013. The allowance included specific reserves at each date (totaling $5.5 million and $6.1 million, respectively) allocated to our impaired loans. The decrease in the allowance was due to a credit for loan losses of $1.5 million, partially offset by recoveries of prior chargeoffs of $0.3 million. The credit reflected primarily improved credit quality in our loan portfolio resulting from the repayment in full of four substandard rated loans (totaling $6.9 million) in Q2-14 and the upgrade of one performing TDR loan ($1.6 million) in Q1-14 due to an increase in the loan’s collateral value.

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As detailed in note 3 to the financial statements in this report, at June 30, 2014, loans rated substandard in our loan portfolio decreased to a total of $59 million, from $68 million at December 31, 2013. For a discussion of the criteria used to determine the adequacy of the allowance for loan losses, see the section entitled “Critical Accounting Policies” in this report. For additional information on the allowance for loan losses, see note 4 to the financial statements in this report.

Impaired Loans

At June 30, 2014, our impaired loans totaled $58 million, compared to $57 million at December 31, 2013. At June 30, 2014, impaired loans were comprised of 5 nonaccrual loans totaling $23.0 million, one accruing loan of $7.7 million and 7 loans classified as accruing troubled debt restructured loans or “TDRs” totaling $27.1 million, compared to 6 nonaccrual loans totaling $35.9 million, one accruing loan of $7.8 million and 6 loans classified as “TDRs” totaling $13.4 million at December 31, 2013.

The table below summarizes certain information on loans at June 30, 2014.

($ in thousands)	Pass Rated Loans		Substandard Rated Loans		Total
Loans on nonaccrual status	$	—	$	23,005	$	23,005
TDRs on accruing status		2,001		25,088		27,089
Other impaired accruing loan		—		7,727		7,727
Total loans classified impaired		2,001		55,820		57,821
Other non-impaired accruing loans (1)		—		3,110		3,110
Total (2)	$	2,001	$	58,930	$	60,931

(1) Represent loans for which there were concerns at the date indicated regarding the ability of the borrowers to meet existing repayment terms. These loans reflect the distinct possibility, but not the probability, that we will not be able to collect all amounts due according to the contractual terms of the loans. These loans may never become delinquent, nonaccrual or impaired.

(2) All of these loans are closely monitored and considered in the determination of the overall adequacy of the allowance for loan losses.

At June 30, 2014 with respect to all of our impaired loans, we had obtained current appraisals of the underlying collateral as follows: 22% dated within the preceding 3 months; 49% dated within the preceding 4-6 months; 6% dated within the preceding 7-9 months; 22% dated within the preceding 10-12 months; and 1% dated over 12 months prior. Our policy is to obtain externally prepared appraisals for all of our substandard-rated impaired loans at least annually. One TDR loan in the amount of $0.4 million was rated pass and an annual appraisal is not required under our appraisal policy.

For additional discussion on the allowance for loan losses, including the factors we use in maintaining a specific valuation allowance for our impaired loans and our policy regarding loan chargeoffs, see note 1 to the financial statements in our 2013 10-K.

Summary of Asset Quality

The table below summarizes nonperforming assets, TDRs, past due loans and selected ratios at the dates indicated.

($ in thousands)	At June 30, 2014			At December 31, 2013
Nonaccrual loans (1):
Loans past due 90 days or more	$	2,622		$	—
Loans past due 0-30 days		2,683			2,719
TDR loans past due 0-30 days (2) (3)		17,700			33,184
Total nonaccrual loans		23,005			35,903
Real estate acquired through foreclosure		2,650			10,669
Total assets considered nonperforming	$	25,655		$	46,572
TDR loans on accruing status and 0-30 days past due (4)	$	27,088		$	13,429
Loans past due 90 days or more and still accruing		2,993			4,087
Loans past due 60-89 days and still accruing		—			—
Loans past due 31-59 days and still accruing		—			2,642
Nonaccrual loans to total gross loans		1.98	%		3.17	%
Nonperforming assets to total assets		1.63	%		2.97	%
Allowance for loan losses to total net loans		2.30	%		2.47	%
Allowance for loan losses to nonaccrual loans		116	%		78	%

(1) We may place a loan on nonaccrual status prior to it becoming past due 90 days based on the specific facts and circumstances associated with each loan that indicate that it is probable the borrower may not be able to continue making monthly payments. Interest income from payments made on all nonaccrual loans is recognized on a cash basis (or when collected) if the outstanding principal is determined to be collectible. A loan on nonaccrual status can only be returned to accrual status if ultimate collectability of contractual principal is assured and the borrower has demonstrated satisfactory payment performance. In the case of a TDR, satisfactory payment performance can be achieved either before or after the restructuring (usually for a period of no shorter than six months).

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Notes to preceding table follow:

(2) Represent loans whose terms have been modified through the deferral of principal and/or a partial reduction in interest payments, or extension of maturity term (referred to as a TDR in this report). All were current as to payments and performing in accordance with their restructured terms at the dates indicated, but were required to be classified nonaccrual for the reasons noted in footnote 1 above.

(3) These loans were yielding 4.25% on a weighted-average basis at June 30, 2014. A number of the nonaccrual TDR loans in the table above (which aggregated to 2 loans or $9 million at June 30, 2014) have been partially charged-off (by a cumulative total of $1.8 million). For these TDRs, the evaluation for full repayment of contractual principal must include the collectability of amounts charged off. Although the loans have been partially charged off for financial statement purposes, the borrowers remain obligated to pay all contractual principal due, although there can be no assurance that such charged-off amounts will be collected.

(4) Represent modified loans as described in footnote 2 above, except that they were maintained on accrual status. All of these loans were performing and current and as of June 30, 2014, they had an aggregate weighted-average yield of 5.05%.

The table below summarizes the change in loans on nonaccrual status for the periods indicated.

($ in thousands)	Quarter Ended March 31, 2014			Quarter Ended June 30, 2014			Six-Months Ended June 30, 2014
Balance at beginning of period	$	35,903		$	38,750		$	35,903
Net new additions		3,466			—			3,466
Transfer of TDR loan to accruing TDR status		—			(13,840	)		(13,840	)
Principal repayments		(619	)		(1,905	)		(2,524	)
Balance at end of period	$	38,750		$	23,005		$	23,005

The table below summarizes the change in TDRs on accrual status for the periods indicated.

($ in thousands)	Quarter Ended March 31, 2014			Quarter Ended June 30, 2014			Six-Months Ended June 30, 2014
Balance at beginning of period	$	13,429		$	13,337		$	13,429
Transfer of TDR loan from nonaccrual status		—			13,840			13,840
Principal repayments		(92	)		(89	)		(181	)
Balance at end of period	$	13,337		$	27,088		$	27,088

The table below sets forth information regarding our TDRs as of June 30, 2014.

($ in thousands) Property Type	Property Location	Contractual Principal Balance Due		Carrying Value		Interest Rate			Principal Amortization	Maturity Date	Collateral Last Appraised
Nonaccrual Status (1)
Unanchored retail center	West Palm, Florida	$	5,549	$	4,320		4.50	%	No	Aug 2014	Mar 2014
Unanchored retail center	Lake Worth, Florida		5,452		4,685		4.50	%	No	Sep 2014	Mar 2014
Office building	Norcross, Georgia		8,695		8,695		4.00	%	No	Dec 2015	Apr 2014
			19,696		17,700		4.25	%
Accrual Status
Unanchored retail center	New York, New York		5,259		5,259		4.50	%	Yes	Sep 2014	Jan 2014
Land	Rapid City, S. Dakota		1,555		1,555		5.00	%	Yes	Jan 2015	Mar 2013
Garden apartment	Orlando, Florida		2,264		2,264		4.75	%	Yes	Nov 2015	Sep 2013
Garden apartment	Lake Worth, Florida		846		846		6.00	%	Yes	Oct 2016	Nov 2013
Unanchored retail center	Monroe, New York		2,879		2,879		5.13	%	Yes	Mar 2017	Aug 2013
Office building	Clearwater, Florida		445		445		5.00	%	Yes	Oct 2017	Nov 2012
Office building	Miami, Florida		13,840		13,840		5.25	%	Yes	Oct 2018	Mar 2014
			27,088		27,088		5.05	%
		$	46,784	$	44,788		4.74	%

(1) All these TDRs were performing in accordance with their modified terms but were maintained on nonaccrual status as of June 30, 2014 in accordance with regulatory guidance. Interest income on such loans is recognized on a cash basis. The carrying value for these loans represents contractual unpaid principal balance less any partial principal chargeoffs (totaling $1.8 million) and interest received and applied as a reduction of principal (totaling $0.2 million). The borrowers remain obligated to pay all contractual amounts due although collection of such amounts by us is not assured.

The table below details real estate we owned through foreclosure (“REO”) at the dates indicated.

($ in thousands)					Net Carrying Value
Description of Property	City	State	Date Acquired		At June 30, 2014		At December 31, 2013		Last Appraised
7 story vacant office building and vacant lot (1)	Yonkers	NY		8/09	$	—	$	1,334		5/13
622 unit garden apart. complex – 82% occupied (2)	Louisville	KY		7/10		—		6,685		5/13
Two, 5 story vacant office buildings – 182K sq. ft.	Jacksonville	FL		2/13		2,650		2,650		4/14
					$	2,650	$	10,669

(1) Sold in Q1-14 for $1.4 million. Original cost basis upon transfer to REO was $2.2 million.

A net gain from the sale of this property of $0.1 million was recorded in Q1-14.

(2) Sold in Q2-14 for $6.8 million. Original cost basis upon transfer to REO was $7.5 million.

A net gain from the sale of this property of $0.1 million was recorded in Q2-14.

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We review the estimated fair value of our REO portfolio at least quarterly by performing market valuations of the properties, which normally consist of obtaining externally prepared appraisals at least annually for every property, as well as performing quarterly reviews of economic and real estate market conditions in the local area where the property is located, including taking into consideration discussions with real estate brokers and interested buyers, in order to determine if a valuation allowance is needed to reflect any decrease in the estimated fair value of the property since acquisition. The property owned at June 30, 2014 was being marketed for sale. At June 30, 2014, the total REO valuation allowance amounted to $0.4 million, compared to $2.0 million at December 31, 2013.

All Other Assets

The following table sets forth a list of our other assets:

($ in thousands)	At June 30, 2014		At December 31, 2013
Accrued interest receivable	$	4,494	$	4,861
Loan fees receivable		2,165		2,298
Income tax receivable		—		1,165
Premises and equipment, net		3,926		4,056
Deferred income tax asset		14,921		18,362
Deferred debenture offering costs, net		724		742
Investment in unconsolidated subsidiaries		1,702		1,702
All other		1,512		1,036
	$	29,444	$	34,222

All other assets decreased primarily due to a $3.4 million decrease in our deferred tax asset resulting from the partial utilization of the asset to offset part of our taxable earnings during 6mths-14.

Deposits

Total deposits at June 30, 2014 amounted to $1.28 billion, unchanged from December 31, 2013, as an increase of $15 million in certificate of deposit accounts (CDs) was partially offset by a $19 million decrease in money market deposit accounts. At June 30, 2014, CDs totaled $896 million, and checking, savings and money market accounts aggregated to $382 million. The same categories of deposit accounts totaled $882 million and $400 million, respectively, at December 31, 2013. CDs represented 70% and 69%, respectively, of total deposits at each date. At June 30, 2014 and December 31, 2013, CDs included $87 million and $91 million of brokered deposits, respectively. See the section “Liquidity and Capital Resources” in this report for a further discussion of our deposits.

Borrowed Funds and Related Interest Payable

Borrowed funds and related accrued interest payable decreased to $56.8 million at June 30, 2014, from $57.6 million at December 31, 2013, due to the payment of accrued interest payable on IBC’s outstanding debt, which is in the form of junior subordinated notes (TRUPs).

All Other Liabilities

The following table sets forth the composition of our other liabilities:

($ in thousands)	At June 30, 2014		At December 31, 2013
Accrued interest payable on deposits	$	1,440	$	1,508
Mortgage escrow funds payable		20,945		18,879
Official checks outstanding		4,881		7,335
Income taxes payable		313		—
All other liabilities		3,083		3,281
	$	30,662	$	31,003

Accrued interest payable on deposits fluctuates based on total deposits and the timing of interest payments. Mortgage escrow funds payable fluctuate based on the level of loans outstanding and other factors and represent advance payments made to us by borrowers for property taxes and insurance that we remit to third parties when due. Official checks outstanding represent checks issued by INB in the normal course of business which fluctuate based on banking activity. All other liabilities are comprised mainly of accrued expenses as well as fees received in connection with loan commitments that have not yet been funded.

Stockholders’ Equity

Stockholders’ equity increased to $207 million at June 30, 2014, from $197 million at December 31, 2013, reflecting primarily an increase in retained earnings of $8.5 million, net of a $1.1 million cash dividend on common stock paid on May 26, 2014.

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Comparison of Results of Operations for the Quarters Ended June 30, 2014 and 2013

Selected information regarding our results of operations follows:

	For the Quarter Ended June 30,
($ in thousands)	2014			2013			Change
Interest and dividend income	$	16,066		$	15,623		$	443
Interest expense		5,195			7,048			(1,853	)
Net interest and dividend income		10,871			8,575			2,296
Credit for loan losses		(1,000	)		(750	)		(250	)
Noninterest income		2,461			702			1,759
Noninterest expenses:
Provision for real estate losses		—			76			(76	)
Real estate activities expense (income), net		298			(346	)		644
Operating expenses		3,926			3,954			(28	)
Earnings before provision for income taxes		10,108			6,343			3,765
Provision for income taxes		4,370			2,804			1,566
Net earnings		5,738			3,539			2,199
Preferred dividend requirements and discount amortization		—			326			(326	)
Net earnings available to common stockholders	$	5,738		$	3,213		$	2,525
Diluted earnings per common share	$	0.26		$	0.14		$	0.12

Net Interest and Dividend Income

The $2.3 million quarterly increase in net interest and dividend income reflected an improved interest rate spread and a higher ratio (1.15x compared to 1.10x) of interest-earning assets to interest-bearing liabilities due to deployment of cash into new loans. The net interest margin increased to 2.84% in Q2-14 from 2.30% in Q2-13, primarily due to a 53 basis point increase in the interest rate spread and a $56 million increase in net interest-earning assets. The higher spread reflected primarily the run-off and replacement of higher-cost legacy CDs with new CDs at lower interest rates, which reduced the average cost of funds by 54 basis points to 1.55% in Q2-14 from 2.09% in Q2-13. The average yield on earning assets decreased slightly to 4.19% in Q2-14 from 4.20% in Q2-13 as the negative impact of payoffs of older, higher yielding loans coupled with new loan originations at lower market interest rates was offset by higher yields on security investments and the growth in net interest earning assets.

Total average interest-earning assets increased by $44 million in Q2-14 from Q2-13, reflecting a $107 million increase in loans, partially offset by a $63 million decrease in total securities and overnight investments. At the same time, total average deposits decreased by $12 million, while average total stockholders’ equity decreased by $13 million (reflecting the repurchase and retirement of $25 million of preferred stock during the middle of 2013, partially offset by an $11 million increase in retained earnings).

The following table provides information on our: average assets, liabilities and stockholders’ equity; yields earned on interest-earning assets; and rates paid on interest-bearing liabilities for the periods indicated. The yields and rates shown are based on a computation of income/expense (including any related fee income or expense) for each period divided by average interest-earning assets/interest-bearing liabilities during each period. Average balances are derived from daily balances. Net interest margin is computed by dividing net interest and dividend income by the average of total interest-earning assets during each period. The interest rate spread is the difference between the average yield earned on interest-earning assets and the average rate paid on interest-bearing liabilities. The net interest margin is greater than the interest rate spread due to the additional income earned on those assets funded by non-interest-bearing liabilities, primarily demand deposits, and stockholders’ equity.

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	For the Quarter Ended
	June 30, 2014								June 30, 2013
($ in thousands)	Average Balance			Interest Inc./Exp.		Yield/ Rate (2)			Average Balance			Interest Inc./Exp.		Yield/ Rate (2)
Interest-earning assets:
Commercial real estate loans	$	891,231		$	11,438		5.15	%	$	793,529		$	11,009		5.56	%
Multifamily loans		208,296			2,509		4.83			199,874			2,603		5.22
1-4 family loans		58,608			805		5.51			60,033			869		5.81
Land loans		8,569			119		5.57			6,320			91		5.78
All other loans		1,239			15		4.86			1,446			19		5.27
Total loans (1)		1,167,943			14,886		5.11			1,061,202			14,591		5.51
U.S. government agencies securities		273,328			688		1.01			332,177			712		0.86
Residential mortgage-backed securities		78,914			357		1.81			75,584			184		0.98
State and municipal securities		531			2		1.51			533			2		1.51
Corporate securities (1)		—			—		—			3,238			—		—
Mutual funds and other equity securities		1,032			5		1.94			1,009			5		1.99
FRB and FHLB stock		8,293			112		5.42			8,222			111		5.41
Total securities		362,098			1,164		1.29			420,763			1,014		0.97
Other interest-earning assets		7,146			16		0.90			11,343			18		0.64
Total interest-earning assets		1,537,187		$	16,066		4.19	%		1,493,308		$	15,623		4.20	%
Noninterest-earning assets		50,095								120,653
Total assets	$	1,587,282							$	1,613,961
Interest-bearing liabilities:
Interest checking deposits	$	17,589		$	18		0.41	%	$	15,205		$	15		0.40	%
Savings deposits		9,822			7		0.29			9,655			7		0.29
Money market deposits		353,621			359		0.41			375,986			381		0.41
Certificates of deposit		903,833			4,424		1.96			896,260			6,209		2.78
Total deposit accounts		1,284,865			4,808		1.50			1,297,106			6,612		2.04
Debentures – capital securities		56,702			387		2.74			56,702			436		3.08
Total interest-bearing liabilities		1,341,567		$	5,195		1.55	%		1,353,808		$	7,048		2.09	%
Noninterest-bearing deposits		5,748								5,036
Noninterest-bearing liabilities		37,081								39,365
Preferred stockholder’s equity		—								24,277
Common stockholders’ equity		202,886								191,475
Total liabilities and stockholders’ equity	$	1,587,282							$	1,613,961
Net interest and dividend income/spread				$	10,871		2.64	%				$	8,575		2.11	%
Net interest-earning assets/margin (3)	$	195,620					2.84	%	$	139,500					2.30	%
Ratio of total interest-earning assets to total interest-bearing liabilities		1.15								1.10
Return on average assets (2)		1.45	%							0.88	%
Return on average common equity (2)		11.31	%							7.39	%
Noninterest expense to average assets (2) (5)		0.99	%							0.98	%
Efficiency ratio (4)		27	%							43	%
Average stockholders’ equity to average assets		12.78	%							13.37	%

(1) Includes average nonaccrual loans of $33.2 million in the 2014 period and $40.6 million in the 2013 period. Total interest income not accrued on such loans and excluded from the table totaled $72,000 in the 2014 period and $25,000 in the 2013 period. Total loan fees, net of direct origination costs, amortized and included in interest income amounted to $0.4 million in 2014 and 2013 period. Interest income on corporate securities was recognized on a cash basis. Interest income from state and municipal securities was taxable.

(2) Annualized.

(3) Net interest margin is reported exclusive of income from loan prepayments, which is included as a component of our noninterest income. Inclusive of income from loan prepayments, the margin would compute to 3.36% and 2.47% for the 2014 and 2013 period, respectively.

(4) Defined as noninterest expenses (excluding the provisions for loan and real estate losses and real estate activities (income) expense, net) as a percentage of net interest and dividend income plus noninterest income.

(5) Noninterest expenses for this ratio excludes provisions for loan and real estate losses and real estate activities (income) expense, net.

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The following table provides information regarding changes in interest and dividend income and interest expense. For each category of interest-earning assets and interest-bearing liabilities, information is provided on changes attributable to (1) changes in rate (change in rate multiplied by prior volume), (2) changes in volume (change in volume multiplied by prior rate) and (3) changes in rate-volume (change in rate multiplied by change in volume).

	For the Quarter Ended June 30, 2014 versus June 30, 2013
	Increase (Decrease) Due To Change In:
($ in thousands)	Rate			Volume			Rate/Volume			Total
Interest-earning assets:
Total loans	$	(1,057	)	$	1,476		$	124	)	$	295
Total securities		282			(118	)		(14	)		150
Total other interest-earning assets		7			(7	)		(2	)		(2	)
Total interest-earning assets		(768	)		1,351			(140	)		443
Interest-bearing liabilities:
Interest checking deposits		—			2			1			3
Savings deposits		—			—			—			—
Money market deposits		—			(23	)		1			(22	)
Certificates of deposit		(1,837	)		53			(1	)		(1,785	)
Total deposit accounts		(1,837	)		32			1			(1,804	)
Total borrowed funds		(48	)		—			(1	)		(49	)
Total interest-bearing liabilities		(1,885	)		32			—			(1,853	)
Net change in interest and dividend income	$	1,117		$	1,319		$	(140	)	$	2,296

Provision for Loan Losses

A credit for loan losses of $1.0 million was recorded in Q2-14, compared to $0.8 million in Q2-13. The amount for Q2-14 reflected the payoff of four substandard loans totaling $6.9 million. The Q2-13 credit was a function of partial cash recoveries of prior charge offs.

Noninterest Income

Noninterest income (inclusive of loan prepayment income) increased to $2.5 million in Q2-14 from $0.7 million in Q2-13. The increase was due to a higher level of loan prepayment income ($2.0 million in Q2-14 versus $0.6 million in Q2-13), which included $0.7 million from one loan in Q2-14, and the absence of security impairment charges in Q2-14, compared to $0.3 million of charges (which reduce noninterest income) in Q2-13.

Noninterest Expenses

No provision for real estate losses was required in Q2-14, compared to $0.1 million in Q2-13.

Real estate expenses, net of rental and other income, amounted to a net expense of $0.3 million in Q2-14, compared to net income of $0.3 million in Q2-13. The income for Q2-13 was due to a gain from the sale of one property and cash recovery of expenses associated with a previously owned property. Excluding these income items, real estate expenses would have amounted to $0.5 million in Q2-13.

Operating expenses decreased slightly to $3.9 million in Q2-14, from $4.0 million in Q2-13. We employed 80 people as of June 30, 2014, compared to 78 at June 30, 2013.

Provision for Income Taxes

The provision for income tax expense increased to $4.4 million in Q2-14, from $2.8 million in Q2-13, due to higher pre-tax income ($10.1 million in Q2-14 versus $6.3 million in Q2-13). Our effective income tax rate (inclusive of state and local taxes) was 43% in Q2-14, compared to 44% in Q2-13.

35

Comparison of Results of Operations for the Six-Months Ended June 30, 2014 and 2013

Selected information regarding our results of operations follows:

	For the Six-Months Ended June 30,
($ in thousands)	2014			2013			Change
Interest and dividend income	$	31,579		$	31,872		$	(293	)
Interest expense		10,465			14,293			(3,828	)
Net interest and dividend income		21,114			17,579			3,535
Credit for loan losses		(1,500	)		(1,750	)		250
Noninterest income		3,327			1,445			1,882
Noninterest expenses:
Provision for real estate losses		—			705			(705	)
Real estate activities expense (income), net		499			(1,332	)		1,831
Operating expenses		8,498			8,092			406
Earnings before provision for income taxes		16,944			13,309			3,635
Provision for income taxes		7,364			5,879			1,485
Net earnings		9,580			7,430			2,150
Preferred dividend requirements and discount amortization		—			788			(788	)
Net earnings available to common stockholders	$	9,580		$	6,642		$	2,938
Diluted earnings per common share	$	0.43		$	0.30		$	0.13

Net Interest and Dividend Income

As described in greater detail in the section entitled “Comparison of Results of Operations for the Quarters Ended June 30, 2014 and 2013” under the caption “Net Interest and Dividend Income,” net interest and dividend income is our primary source of earnings.

In 6mths-14, net interest and dividend income (detailed in the table that follows) increased by $3.5 million from 6mths-13. Our net interest margin increased to 2.79% in 6mths-14, from 2.33% in 6mths-13. The average cost of funds decreased by 54 basis points to 1.57% in 6mths-14, from 2.11% in 6mths-13, while the average yield on earning assets decreased by only 6 basis points to 4.17% in 6mths-14, from 4.23% in 6mths-13.

Our total average interest-earning assets increased for the 6mths-14 period by $10 million from 6mths-13, reflecting an increase of $71 million in loans, partially offset by a $61 million decrease in total securities and overnight investments. At the same time, total average deposits decreased by $25 million, while average stockholders’ equity decreased by $13 million.

The reasons for the above variances are the same as those discussed in the comparison of quarterly operating results.

The following table provides information on our: average assets, liabilities and stockholders’ equity; yields earned on interest-earning assets; and rates paid on interest-bearing liabilities for the periods indicated. The yields and rates shown are based on a computation of income/expense (including any related fee income or expense) for each period divided by average interest-earning assets/interest-bearing liabilities during each period. Average balances are derived from daily balances. Net interest margin is computed by dividing net interest and dividend income by the average of total interest-earning assets during each period. The interest rate spread is the difference between the average yield earned on interest-earning assets and the average rate paid on interest-bearing liabilities. The net interest margin is greater than the interest rate spread due to the additional income earned on those assets funded by non-interest-bearing liabilities, primarily demand deposits, and stockholders’ equity.

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	For the Six-Months Ended
	June 30, 2014								June 30, 2013
($ in thousands)	Average Balance			Interest Inc./Exp.		Yield/ Rate (2)			Average Balance			Interest Inc./Exp.		Yield/ Rate (2)
Interest-earning assets:
Commercial real estate loans	$	869,107		$	22,238		5.16	%	$	812,106		$	22,585		5.61	%
Multifamily loans		207,455			4,947		4.81			204,138			5,338		5.27
1-4 family loans		63,164			1,742		5.56			54,895			1,597		5.87
Land loans		8,858			243		5.53			6,404			186		5.86
All other loans		1,251			31		5.00			1,400			38		5.47
Total loans (1)		1,149,835			29,201		5.12			1,078,943			29,744		5.57
U.S. government agencies securities		282,089			1,392		1.00			336,542			1,458		0.87
Residential mortgage-backed securities		78,339			709		1.83			78,432			395		1.02
State and municipal securities		531			3		1.14			533			3		1.14
Corporate securities (1)		—			—		—			3,443			—		—
Mutual funds and other equity securities		1,029			12		2.35			1,006			10		2.00
FRB and FHLB stock		8,274			229		5.58			8,190			226		5.56
Total securities		370,262			2,345		1.28			428,146			2,092		0.99
Other interest-earning assets		8,009			33		0.83			11,107			36		0.65
Total interest-earning assets		1,528,106		$	31,579		4.17	%		1,518,196		$	31,872		4.23	%
Noninterest-earning assets		58,054								107,750
Total assets	$	1,586,160							$	1,625,946
Interest-bearing liabilities:
Interest checking deposits	$	17,687		$	36		0.41	%	$	14,891		$	30		0.41	%
Savings deposits		9,930			15		0.30			9,651			14		0.29
Money market deposits		358,239			724		0.41			382,026			769		0.41
Certificates of deposit		900,294			8,904		1.99			904,876			12,605		2.81
Total deposit accounts		1,286,150			9,679		1.52			1,311,444			13,418		2.06
Debentures – capital securities		56,702			786		2.80			56,702			875		3.11
Total interest-bearing liabilities		1,342,852		$	10,465		1.57	%	$	1,368,146		$	14,293		2.11	%
Noninterest-bearing deposits		6,626								5,053
Noninterest-bearing liabilities		35,893								38,607
Preferred stockholder’s equity		—								24,466
Common stockholders’ equity		200,789								189,674
Total liabilities and stockholders’ equity	$	1,586,160							$	1,625,946
Net interest and dividend income/spread				$	21,114		2.60	%				$	17,579		2.12	%
Net interest-earning assets/margin (3)	$	185,254					2.79	%	$	150,050					2.33	%
Ratio of total interest-earning assets to total interest-bearing liabilities		1.14								1.11
Return on average assets (2)		1.21	%							0.91	%
Return on average common equity (2)		9.54	%							7.83	%
Noninterest expense to average assets (2) (5)		1.07	%							1.00	%
Efficiency ratio (4)		35	%							43	%
Average stockholders’ equity to average assets		12.66	%							13.17	%

(1) Includes average nonaccrual loans of $34.4 million in the 2014 period and $41.9 million in the 2013 period. Total interest income not accrued on such loans and excluded from the table totaled $154,000 in the 2014 period and $103,000 in the 2013 period. Total loan fees, net of direct origination costs, amortized and included in interest income amounted to $0.7 million in the 2014 period and $0.8 million in the 2013 period. Interest income on corporate securities was recognized on a cash basis. Interest income from state and municipal securities was taxable.

(2) Annualized.

(3) Net interest margin is reported exclusive of income from loan prepayments, which is included as a component of our noninterest income. Inclusive of income from loan prepayments, the margin would compute to 3.12% and 2.51% for the 2014 and 2013 periods, respectively.

(4) Defined as noninterest expenses (excluding the provisions for loan and real estate losses and real estate activities (income) expense, net) as a percentage of net interest and dividend income plus noninterest income.

(5) Noninterest expenses for this ratio excludes provisions for loan and real estate losses and real estate activities (income) expense, net.

37

The following table provides information regarding changes in interest and dividend income and interest expense. For each category of interest-earning assets and interest-bearing liabilities, information is provided on changes attributable to (1) changes in rate (change in rate multiplied by prior volume), (2) changes in volume (change in volume multiplied by prior rate) and (3) changes in rate-volume (change in rate multiplied by change in volume).

	For the Six-Months Ended June 30, 2014 versus June 30, 2013
	Increase (Decrease) Due To Change In:
($ in thousands)	Rate			Volume			Rate/Volume			Total
Interest-earning assets:
Total loans	$	(2,396	)	$	1,997		$	(144	)	$	(543	)
Total securities		540			(235	)		(52	)		253
Total other interest-earning assets		10			(10	)		(3	)		(3	)
Total interest-earning assets		(1,846	)		1,752			(199	)		(293	)
Interest-bearing liabilities:
Interest checking deposits		—			6			—			6
Savings deposits		—			—			1			1
Money market deposits		—			(49	)		4			(45	)
Certificates of deposit		(3,710	)		(64	)		73			(3,701	)
Total deposit accounts		(3,710	)		(107	)		78			(3,739	)
Total borrowed funds		(88	)		—			(1	)		(89	)
Total interest-bearing liabilities		(3,798	)		(107	)		77			(3,828	)
Net change in interest and dividend income	$	1,952		$	1,859		$	(276	)	$	3,535

Provision for Loan Losses

A credit for loan losses of $1.5 million was recorded in 6mths-14, compared to $1.8 million in 6mths-13. The amounts in the 2014 period reflected improved credit quality resulting from the payoff of four substandard loans totaling $6.9 million in Q2-14 and an upgrade of one loan ($1.6 million) in Q1-14, while the 2013 amounts were primarily due to partial recoveries of prior loan charge offs.

Noninterest Income

Noninterest income (inclusive of loan prepayment income) increased to $3.3 million in 6mths-14 from $1.4 million in 6mths-13. The increases were due to a higher level of loan prepayment income and the absence of security impairment charges in the 2014 period. Income from loan prepayments increased to $2.5 million in 6mths-14, from $1.3 million in 6mths-13, while security impairment charges amounted to $0.7 million in the 2013 period.

Noninterest Expenses

No provision for real estate losses was required in 6mths-14, compared to $0.7 million in 6mths-13. The provision for the 2013 period was due to decreases in the estimated fair value of properties owned through foreclosure.

Real estate expenses, net of rental and other income, amounted to a net expense of $0.5 million in 6mths-14, compared to net income of $1.3 million in 6mths-13. The income for the 2013 period was due to cash recoveries of expenses associated with previously owned properties. Exclusive of these income items, REO expenses would have been $1.0 million for the 2013 period.

Operating expenses increased to $8.5 million in 6mths-14, from $8.1 million in 6mths-13, primarily due to normal salary increases and higher stock compensation and employee bonus expense (totaling $0.6 million), partially offset by decreases in FDIC insurance expense ($0.3 million) and professional fees ($0.1 million).

Provision for Income Taxes

We recorded a provision for income tax expense of $7.4 million (on pre-tax income of $16.9 million) in 6mths-14, compared to $5.9 million (on pre-tax income of $13.3 million) in 6mths-13. Our effective income tax rate (inclusive of state and local taxes) was approximately 44% in the 2014 and 2013 periods.

38

Off-Balance Sheet and Other Financing Arrangements

INB is party to financial instruments with off-balance sheet risk in the normal course of its business to meet the financing needs of its customers. These instruments can be in the form of commitments to extend credit, unused lines of credit and standby letters of credit, and may involve, to varying degrees, elements of credit and interest rate risk in excess of the amounts recognized in our financial statements. Our maximum exposure to credit risk is represented by the contractual amount of those instruments. At June 30, 2014, INB had approved commitments to lend of $19 million (which excludes an additional $30 million of potential new loan commitments that were in process of being approved as of that date), most of which are anticipated to be funded during 2014.

Liquidity and Capital Resources

The following discussion serves as an update to the section entitled “Liquidity and Capital Resources,” which begins on page 59 of our 2013 10-K, and should be read in conjunction with that discussion. For detail concerning our actual cash flows for the Q2-14, see the condensed consolidated statements of cash flows in this report.

Intervest National Bank

At June 30, 2014, INB had cash and short-term investments totaling $34 million, a large portion of which is expected to be used to fund loan commitments outstanding.

At June 30, 2104, INB had available collateral consisting of investment securities and certain loans that could be pledged to support an aggregate of approximately $380 million in borrowings from the FHLB and FRB. INB also had access to overnight unsecured lines of credit from three banks totaling $41 million. At June 30, 2014, this total borrowing capacity of $421 million represented approximately 57% of INB’s deposits that are considered sensitive (money-market accounts and all certificate of deposit accounts (CDs), inclusive of brokered CDs, maturing within one year). In the event that any of INB’s existing lines of credit were not accessible or were limited, INB could designate all or a portion of its un-pledged U.S. government agency investment securities portfolio as available for sale and sell such securities as needed to provide liquidity.

At June 30, 2014, total deposits amounted to $1.28 billion consisting of CDs totaling $896 million, and checking, savings and money market accounts aggregating to $382 million. CDs represented 70% of total deposits and CDs of $100,000 or more totaled $501 million and included $87 million of brokered CDs and $57 million of CDs obtained from the national CD market (as that market is defined in our 2013 10-K). Brokered CDs had a weighted-average remaining term and stated interest rate of 2.7 years and 2.93%, respectively, at June 30, 2014, and $19 million mature by June 30, 2015. CDs obtained through the national CD market totaled $57 million and had a weighted-average rate and term of 1.41% and 3.3 years, respectively, at June 30, 2014, and none mature within the next twelve months. At June 30, 2014, $319 million, or 36% of total CDs (inclusive of brokered and national CDs), mature by June 30, 2015. INB expects to replace its brokered and national CDs as they mature with new ones and to retain or replace a significant portion of its remaining maturing (non-brokered and non-national) CDs.

INB’s current objective is to maintain its deposit rates at levels to promote a stable deposit base that can be adjusted to meet its cash flow needs. INB has historically targeted its loan-to-deposit ratio in a range from 75% to 85%, and most recently has increased this target to 85% to 90%. This ratio stood at 86% as of June 30, 2014. INB expects to increase its deposits and loans during the remainder of 2014. INB also introduced or is in the process of introducing other deposit products such as remote deposit capture, landlord-tenant security deposits and electronic bill-pay, in effort to increase its non-CD deposit accounts. We cannot assure you that any of the forgoing plans or objectives will be successful or result in an increase in deposits or loans.

At June 30, 2014, INB had $99 million, or 8.5%, of its loan portfolio (excluding nonaccrual loans) scheduled to mature within one year. INB expects to extend or refinance a portion of these maturing loans. Over the next twelve months, approximately $53 million of securities in the portfolio could potentially be called or repaid assuming market interest rates remain at or near the levels they were as of June 30, 2104. We intend to reinvest a large portion of the resulting proceeds into similar securities and potentially at lower rates.

At June 30, 2014 and December 31, 2013, INB had no borrowed funds outstanding.

At June 30, 2014, INB’s regulatory capital ratios exceeded those required to be categorized as a well-capitalized institution. INB does not expect to need additional capital over the next twelve months.

39

Intervest Bancshares Corporation.

At June 30, 2014, IBC had cash and short-term investments totaling $5.7 million, of which $5.0 million was available for use (inclusive of $3.9 million on deposit with INB). IBC relies on cash dividends received from INB to fund interest payments due on IBC’s outstanding debt as well as for IBC’s payment of cash dividends on its capital stock, if and when declared by IBC’s Board of Directors. In Q2-14, IBC received $0.6 million of dividends from INB.

IBC’s regulatory capital ratios at June 30, 2014 exceeded its minimum requirements and IBC does not expect to need additional capital over the next twelve months. On April 24, 2014, IBC’s Board of Directors declared a cash dividend of $0.05 per share on IBC’s outstanding common stock. The dividend was paid on May 26, 2014 to shareholders of record at the close of business May 15, 2014. The payment of the dividend was funded from IBC’s cash on hand. On July 16, 2014, IBC announced that its Board of Directors had declared a quarterly dividend of $0.05 per common share payable on August 26, 2014 to shareholders of record at the close of business August 15, 2014. This payment is expected to be made from IBC’s cash on hand.

Summary

We consider our current liquidity and sources of funds sufficient to satisfy our outstanding lending commitments and maturing liabilities. We are not aware of any trends, demands, commitments or uncertainties other than those discussed above in this section or elsewhere in this report that are expected to have a material impact on our future operating results, liquidity or capital resources. However, there can be no assurances that adverse conditions will not arise in the credit and capital markets or from the restrictions placed or that may be placed on us by our regulators that would adversely impact our liquidity and ability to raise funds to meet our operations and satisfy our outstanding lending commitments and maturing liabilities or raise new working capital if needed. Additional information concerning securities held to maturity, loans, deposits and borrowings, including interest rates and maturity dates thereon, can be found in notes 2, 6, 7, and 8 to the financial statements in this report.

Contractual Obligations

The table below summarizes our contractual obligations as of June 30, 2014 due within the periods shown.

			Amounts Due Within
($ in thousands)	Total		1 year		2-3 years		4-5 years		Over 5 years
Deposits with stated maturities	$	896,313	$	318,703	$	343,250	$	222,962	$	11,398
Deposits with no stated maturities		381,510		381,510		—		—		—
Subordinated debentures – capital securities		56,702		—		—		—		56,702
Mortgage escrow payable and official checks outstanding		25,826		25,826		—		—		—
Unfunded loan commitments and lines of credit (1)		20,116		20,116		—		—		—
Operating lease payments		14,809		1,567		3,043		3,042		7,157
Accrued interest payable on deposits		1,440		1,440		—		—		—
Accrued interest payable on all borrowed funds		58		58		—		—		—
	$	1,396,774	$	749,220	$	346,293	$	226,004	$	75,257

(1) Since some of the commitments are expected to expire without being drawn upon, the total commitment amount does not necessarily represent future cash requirements.

Asset and Liability Management

For a discussion of our interest rate risk and the tools we use to manage it, including the gap analysis that follows and the factors that affect its computation and results, see pages 62 through 64 of our 2013 10-K.

As discussed in our 2013 10-K and in this report, our entire loan portfolio is comprised of fixed-rate loans, which increases our exposure to interest rate risk. Mitigating this somewhat was the loan portfolio’s short weighted-average contractual term of approximately 4.8 years at June 30, 2014.

At June 30, 2014, the gap analysis that follows indicated that our interest-bearing liabilities that were scheduled to mature or reprice within one year exceeded our interest-earning assets that were scheduled to mature or reprice within one year. This one-year interest rate sensitivity gap amounted to a negative $387 million, or a negative 24.6% of total assets, at June 30, 2014. As a result of the negative one-year gap, the composition of our balance sheet at June 30, 2014 was considered “liability-sensitive,” indicating that our interest-bearing liabilities would generally reprice with changes in interest rates more rapidly than our interest-earning assets.

40

The table below summarizes our interest-earning assets and interest-bearing liabilities as of June 30, 2014, scheduled to mature or reprice within the periods shown.

($ in thousands)	0-3 Months			4-12 Months			Over 1-5 Years			Over 5 Years			Total
Loans (1)	$	29,293		$	70,572		$	679,015		$	360,209		$	1,139,089
Loans – performing nonaccrual TDRs (1)		9,005			—			8,694			—			17,699
Securities held to maturity (2)		211,045			36,027			96,686			14,580			358,338
Securities available for sale (2)		994			—			—			—			994
Short-term investments		2,030			—			—			—			2,030
FRB and FHLB stock		2,379			—			—			5,923			8,302
Interest-earning time deposits with banks		—			2,375			2,995			—			5,370
Total rate-sensitive assets	$	254,746		$	108,974		$	787,390		$	380,712		$	1,531,822
Deposit accounts (3):
Interest checking	$	17,421		$	—		$	—		$	—		$	17,421
Savings		9,977			—			—			—			9,977
Money market		348,193			—			—			—			348,193
Certificates of deposit		109,956			208,747			566,212			11,398			896,313
Total deposits		485,547			208,747			566,212			11,398			1,271,904
Debentures (1)		56,702			—			—			—			56,702
Accrued interest on all borrowed funds (1)		58			—			—			—			58
Total borrowed funds		56,760			—			—			—			56,760
Total rate-sensitive liabilities	$	542,307		$	208,747		$	566,212		$	11,398		$	1,328,664
GAP (repricing differences)	$	(287,561	)	$	(99,773	)	$	221,178		$	369,314		$	203,158
Cumulative GAP	$	(287,561	)	$	(387,334	)	$	(166,156	)	$	203,158		$	203,158
Cumulative GAP to total assets		(18.3	)%		(24.6	)%		(10.6	)%		12.9	%		12.9	%

Significant assumptions used in preparing the preceding gap table follow:

(1) Loans with predetermined rate increases and floating-rate borrowings are included in the period in which their interest rates are next scheduled to adjust rather than in the period in which they mature. Fixed-rate loans, including those with options to extend are scheduled according to their contractual maturities. Deferred loan fees and the effect of possible loan prepayments are excluded from the analysis. Nonaccrual loans of $5.3 million are also excluded from the table.

(2) Securities are scheduled according to the earlier of their next callable date or the date on which the interest rate is scheduled to change. A large number of the securities have predetermined interest rate increases or “steps up” to a specified rate on one or more predetermined dates. Generally, the security becomes eligible for redemption by the issuer at the date of the first scheduled step-up.

(3) Interest checking, savings and money market deposits are regarded as 100% readily accessible withdrawable accounts and certificates of deposit are scheduled according to their contractual maturity dates. This assumption contributes significantly to the liability sensitive position reported per the one-year gap analysis. However, if such deposits were treated differently, the one-year gap would then change accordingly. It should be noted that depositors may not necessarily immediately withdraw funds in the event deposit rates offered by INB did not change as quickly and uniformly as changes in general market rates.

The table that follows summarizes the results of certain scenarios of our earnings simulation model as of June 30, 2014. The model takes into account our gap analysis as further adjusted by additional assumptions, including deposit decay factors for both rate and non-rate sensitive deposits. Furthermore, in determining the assumed rates offered on our deposit accounts in the model, we use internally developed beta factors that utilize historical data based on a specific time frames for both rising and declining interest rate environments.

						Rate Shock Scenario
($ in thousands)	Base Net interest and Dividend Income		100 Basis Point Decrease (1)			200 Basis Point Increase (1)			300 Basis Point Increase (2)
Next 12 months	$	43,234	$	42,838		$	41,411		$	37,747
% change				-0.92	%		-4.22	%		-12.69	%
Next 13-24 months	$	43,567	$	40,074		$	41,284		$	40,309
% change				-8.02	%		-5.24	%		-7.48	%
2 Year Cumulative	$	86,801	$	82,912		$	82,695		$	78,056
% change				-4.48	%		-4.73	%		-10.07	%

(1) The model for this scenario covers a 24 month horizon and assumes interest rate changes are gradually ramped up or down over a 12 month horizon using various assumptions based upon a parallel yield curve shift and are subsequently sustained at those levels for the remainder of the simulation horizon.

(2) The model for this scenario utilizes an instantaneous parallel rate shock and is maintained at those levels for the entire simulation horizon.

41

A sudden and substantial change in interest rates may adversely impact our net interest and dividend income to a larger extent than noted above if interest rates on our assets and liabilities do not change at the same speed, to the same extent, or on the same basis, as those assumed in the model.

Recent Accounting Standards

See note 1 to the financial statements in this report for a discussion of this topic.

ITEM 3. Quantitative and Qualitative Disclosures about Market Risk

Market risk is the risk of loss from adverse changes in market prices and interest rates. Our market risk arises primarily from interest rate risk inherent in our lending, security investing, deposit-taking and borrowing activities. We do not engage in and accordingly have no direct risk related to trading accounts, commodities, interest rate hedges or foreign exchange. The measurement of market risk associated with financial instruments is meaningful only when all related and offsetting on-and off-balance sheet transactions are aggregated, and the resulting net positions are identified. Disclosures about the fair value of financial instruments, which reflect changes in market prices and rates, can be found in note 13 to the financial statements in this report. We also actively monitor and manage our interest rate risk exposure as discussed in Item 2 above under the caption “Asset and Liability Management.”

ITEM 4. Controls and Procedures

Our management evaluated, with the participation of our Principal Executive and Financial Officers, the effectiveness of the design and operation of our company’s disclosure controls and procedures (as defined in Rule 13a-15(e) or 15d-15(e) under the Securities Exchange Act of 1934) as of the end of the period covered by this report. Based on such evaluation, the Principal Executive and Financial Officers have concluded that as of June 30, 2014, our disclosure controls and procedures were effective. There has been no change in our internal control over financial reporting identified in connection with the evaluation required by paragraph (d) of Rule 13a-15 or 15d-15 that occurred during our most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

PART II. OTHER INFORMATION

ITEM 1. Legal Proceedings

We are periodically a party to or otherwise involved in legal proceedings arising in the normal course of business, such as foreclosure proceedings. Based on review and consultation with legal counsel, management does not believe that there is any pending or threatened proceeding against us, which, if determined adversely, would have a material effect on our business, results of operations, financial position or liquidity.

ITEM 1A. Risk Factors

This item requires disclosure of any new or material changes to our risk factors disclosed in our 2013 10-K, where such factors are discussed on pages 27 through 35. There were no material changes to the risk factors during the quarter ended June 30, 2014. The risks described in our 2013 10-K are not the only risks facing our company. Additional risks not presently known to us, or that we currently deem immaterial, may also adversely affect our business, financial condition or results of operations.

ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds

Not Applicable

ITEM 3. Defaults Upon Senior Securities

Not Applicable

ITEM 4. Mine Safety Disclosures

Not Applicable

ITEM 5. Other Information

Not Applicable

ITEM 6. Exhibits

The information called for by this item is incorporated by reference to the Exhibit Index included in this Quarterly Report on Form 10-Q, immediately following the signature page.

42

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Company has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	INTERVEST BANCSHARES CORPORATION
	(Registrant)
Date: August 4, 2014	By:	/s/ Lowell S. Dansker
	Lowell S. Dansker, Chairman and Chief Executive Officer
	(Principal Executive Officer)
Date: August 4, 2014	By:	/s/ John J. Arvonio
	John J. Arvonio, Chief Financial and Accounting Officer
	(Principal Financial Officer)

43

Intervest Bancshares Corporation and Subsidiary

Exhibit Index

The following exhibits are filed as part of this report.

Exhibit #	Exhibit Description
10.1	Annual Incentive Plan for Senior Executives (incorporated herein by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K filed on May 27, 2014).
31.0	Certification of the principal executive officer pursuant to Section 302 of The Sarbanes-Oxley Act of 2002.
31.1	Certification of the principal financial officer pursuant to Section 302 of The Sarbanes-Oxley Act of 2002.
32.0	Certification of the principal executive and financial officers pursuant to Section 906 of The Sarbanes-Oxley Act of 2002.
101.0	The following materials from Intervest Bancshares Corporation’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2014, formatted in Extensible Business Reporting Language (XBRL): (i) Condensed Consolidated Balance Sheets; (ii) Condensed Consolidated Statements of Earnings; (iii) Condensed Consolidated Statements of Comprehensive Income; (iv) Condensed Consolidated Statements of Changes in Stockholders’ Equity; (v) Condensed Consolidated Statements of Cash Flows; and (vi) Related financial statement footnotes.

44

EX-31.0

Exhibit 31.0

Certification of the Principal Executive Officer

Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

I, Lowell S. Dansker, certify that:

1. I have reviewed this report on Form 10-Q of Intervest Bancshares Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

/s/ Lowell S. Dansker

Lowell S. Dansker, Chairman and Chief Executive Officer

(Principal Executive Officer)

Date: August 4, 2014

45

EX-31.1

Exhibit 31.1

Certification of the Principal Financial Officer

Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

I, John J. Arvonio, certify that:

1. I have reviewed this report on Form 10-Q of Intervest Bancshares Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

/s/ John J. Arvonio

John J. Arvonio, Chief Financial and Accounting Officer

(Principal Financial Officer)

Date: August 4, 2014

46

EX-32.0

Exhibit 32.0

Certification by the Principal Executive Officer and Principal Financial Officer

Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to

Section 906 of the Sarbanes-Oxley Act of 2002

In connection with the filing of the Quarterly Report on Form 10-Q for the quarter ended June 30, 2014 (the “Report”) by Intervest Bancshares Corporation (the “Company”), each of the undersigned, as the principal executive and principal financial officers of the Company, hereby certifies pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that, to our knowledge:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ Lowell S. Dansker

Lowell S. Dansker, Chairman and Chief Executive Officer

(Principal Executive Officer)

Date: August 4, 2014

/s/ John J. Arvonio

John J. Arvonio, Chief Financial and Accounting Officer

(Principal Financial Officer)

Date: August 4, 2014

A signed original of this written statement required by Section 906, or other document authenticating, acknowledging, or otherwise adopting the signatures that appear in typed form within the electronic version of this written statement required by Section 906, has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

47

XML

Securities Held to Maturity and Available for Sale - Additional Information (Detail) (USD $) In Thousands, except Share data, unless otherwise specified	Jun. 30, 2014	Dec. 31, 2013
Investments Debt And Equity Securities [Abstract]
Securities available for sale, at estimated fair value	$ 994	$ 965
Shares owned in an intermediate bond fund	92,850	91,700

XML

Foreclosed Real Estate and Valuation Allowance for Real Estate Losses - Summary of Activity in the Valuation Allowance for Real Estate Losses (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Real Estate [Abstract]
Valuation allowance at beginning of period	$ 1,193	$ 5,968	$ 2,017	$ 5,339
Chargeoffs	(803)		(1,627)
Provision for real estate losses	0	76	0	705
Valuation allowance at end of period	$ 390	$ 6,044	$ 390	$ 6,044

XML

Loans Receivable - Geographic Distribution of Loan Portfolio (Detail) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2014	Dec. 31, 2013
Noncancelable Obligations Future Minimum Payments Due [Line Items]
Total loans	$ 1,162,094	$ 1,131,550
Total Loan Receivable, % of Total	100.00%	100.00%
New York [Member]
Noncancelable Obligations Future Minimum Payments Due [Line Items]
Total loans	651,314	670,052
Total Loan Receivable, % of Total	56.00%	59.30%
Florida [Member]
Noncancelable Obligations Future Minimum Payments Due [Line Items]
Total loans	339,410	321,812
Total Loan Receivable, % of Total	29.30%	28.40%
North Carolina [Member]
Noncancelable Obligations Future Minimum Payments Due [Line Items]
Total loans	28,148	22,611
Total Loan Receivable, % of Total	2.40%	2.00%
Georgia [Member]
Noncancelable Obligations Future Minimum Payments Due [Line Items]
Total loans	21,109	18,799
Total Loan Receivable, % of Total	1.90%	1.70%
New Jersey [Member]
Noncancelable Obligations Future Minimum Payments Due [Line Items]
Total loans	13,542	15,650
Total Loan Receivable, % of Total	1.20%	1.40%
Pennsylvania [Member]
Noncancelable Obligations Future Minimum Payments Due [Line Items]
Total loans	13,263	16,898
Total Loan Receivable, % of Total	1.10%	1.50%
Virginia [Member]
Noncancelable Obligations Future Minimum Payments Due [Line Items]
Total loans	13,166	11,491
Total Loan Receivable, % of Total	1.10%	1.00%
Kentucky [Member]
Noncancelable Obligations Future Minimum Payments Due [Line Items]
Total loans	8,440	11,930
Total Loan Receivable, % of Total	0.70%	1.10%
South Carolina [Member]
Noncancelable Obligations Future Minimum Payments Due [Line Items]
Total loans	8,044	9,223
Total Loan Receivable, % of Total	0.70%	0.80%
Connecticut [Member]
Noncancelable Obligations Future Minimum Payments Due [Line Items]
Total loans	7,366	8,429
Total Loan Receivable, % of Total	0.60%	0.70%
Tennessee [Member]
Noncancelable Obligations Future Minimum Payments Due [Line Items]
Total loans	6,731	5,843
Total Loan Receivable, % of Total	0.60%	0.50%
Massachusetts [Member]
Noncancelable Obligations Future Minimum Payments Due [Line Items]
Total loans	6,058
Total Loan Receivable, % of Total	0.50%
Texas [Member]
Noncancelable Obligations Future Minimum Payments Due [Line Items]
Total loans	5,720
Total Loan Receivable, % of Total	0.50%
Michigan [Member]
Noncancelable Obligations Future Minimum Payments Due [Line Items]
Total loans	5,514	5,599
Total Loan Receivable, % of Total	0.50%	0.50%
Arizona [Member]
Noncancelable Obligations Future Minimum Payments Due [Line Items]
Total loans	5,125
Total Loan Receivable, % of Total	0.40%
West Virginia [Member]
Noncancelable Obligations Future Minimum Payments Due [Line Items]
Total loans	4,477
Total Loan Receivable, % of Total	0.40%
Ohio [Member]
Noncancelable Obligations Future Minimum Payments Due [Line Items]
Total loans	4,429	4,703
Total Loan Receivable, % of Total	0.40%	0.40%
Utah [Member]
Noncancelable Obligations Future Minimum Payments Due [Line Items]
Total loans	3,937
Total Loan Receivable, % of Total	0.30%
llinois [Member]
Noncancelable Obligations Future Minimum Payments Due [Line Items]
Total loans	3,627
Total Loan Receivable, % of Total	0.30%
Indiana [Member]
Noncancelable Obligations Future Minimum Payments Due [Line Items]
Total loans	3,463	2,820
Total Loan Receivable, % of Total	0.30%	0.20%
All Other States [Member]
Noncancelable Obligations Future Minimum Payments Due [Line Items]
Total loans	$ 9,211	$ 5,690
Total Loan Receivable, % of Total	0.80%	0.50%

XML

Off-Balance Sheet Financial Instruments - Additional Information (Detail) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2014	Dec. 31, 2013
Off Balance Sheet Financial Instruments [Abstract]
Standby letters of credit	$ 0	$ 0

XML

Deposits - Scheduled Maturities of Certificates of Deposits (Detail) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2014	Dec. 31, 2013
Time Deposits By Maturity [Abstract]
Within one year, Amount	$ 318,703	$ 307,122
Over one to two years, Amount	111,559	167,323
Over two to three years, Amount	231,691	170,956
Over three to four years, Amount	80,129	106,700
Over four years, Amount	154,231	129,678
Total certificates of deposit, Amount	$ 896,313	$ 881,779
Within one year, Wtd-Avg Stated Rate	1.87%	1.97%
Over one to two years, Wtd-Avg Stated Rate	1.54%	1.92%
Over two to three years, Wtd-Avg Stated Rate	1.94%	1.92%
Over three to four years, Wtd-Avg Stated Rate	2.34%	2.50%
Over four years, Wtd-Avg Stated Rate	2.06%	2.06%
Total certificates of deposit, Wtd-Avg Stated Rate	1.92%	2.03%

XML

Loans Receivable - Information Regarding Credit Quality of Loan Portfolio (Detail) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2014	Dec. 31, 2013
Financing Receivable, Recorded Investment [Line Items]
Total loans	$ 1,162,094	$ 1,131,550
Allocation of allowance for loan losses	26,598	27,833
Commercial Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	888,043	838,766
Multifamily Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	205,258	210,270
One to Four Family [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	59,211	72,064
Land [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	8,381	9,178
All Other [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	1,201	1,272
Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	1,097,585	1,058,087
Allocation of allowance for loan losses	21,055	20,720
Pass [Member] | Commercial Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	829,466	772,900
Pass [Member] | Multifamily Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	199,326	204,298
Pass [Member] | One to Four Family [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	59,211	72,064
Pass [Member] | Land [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	8,381	7,553
Pass [Member] | All Other [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	1,201	1,272
Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	5,579	5,891
Allocation of allowance for loan losses	163	169
Special Mention [Member] | Commercial Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	3,218	3,522
Special Mention [Member] | Multifamily Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	2,361	2,369
Special Mention [Member] | One to Four Family [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans
Special Mention [Member] | Land [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans
Special Mention [Member] | All Other [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans
Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	58,930	67,572
Allocation of allowance for loan losses	5,380	6,944
Substandard [Member] | Commercial Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	55,359	62,344
Substandard [Member] | Multifamily Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	3,571	3,603
Substandard [Member] | One to Four Family [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans
Substandard [Member] | Land [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans		1,625
Substandard [Member] | All Other [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans

XML

Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2014

Fair Value Disclosures [Abstract]

Assets Measured at Fair Value on a Nonrecurring Basis

The following tables provide information regarding our assets measured at fair value on a nonrecurring basis.

	Outstanding Carrying Value
	At June 30, 2014		At December 31, 2013
($ in thousands)	Level 3		Level 3
Impaired loans (1) :
Commercial real estate	$	53,156	$	52,407
Multifamily		3,110		3,128
Land		1,555		1,625
Total impaired loans		57,821		57,160
Foreclosed real estate		2,650		10,669

(1) Outstanding carrying value for impaired loans excludes a specific valuation allowance. See note 4 to the financial statements in this report.

	Accumulated Losses on Outstanding Balance as of:				Total Losses (Gains) (1)
					Quarter Ended June 30,						Six-Months Ended June 30,
	June 30, 2014		December 31, 2013
($ in thousands)					2014			2013			2014			2013
Impaired loans:
Commercial real estate	$	7,867	$	11,522	$	(441	)	$	434		$	(466	)	$	823
Multifamily		592		594		(27	)		(534	)		(17	)		(957	)
Land		161		500		114			(7	)		(339	)		(21	)
Total impaired loans		8,620		12,616		(354	)		(107	)		(822	)		(155	)
Impaired securities		—		—		—			325			—			691
Foreclosed real estate		390		2,017		(131	)		(642	)		(203	)		(13	)

(1) Represents total losses or (gains) recognized on all assets measured at fair value on a nonrecurring basis during the period indicated. The losses or (gains) for impaired loans represent the change (before chargeoffs and recoveries) during the period in the corresponding specific valuation allowance, while the losses (gains) for foreclosed real estate represent writedowns in carrying values subsequent to foreclosure (recorded as provisions for real estate losses) adjusted for any recoveries of prior write downs and (gains) or losses from the transfer/sale of properties during the period. The losses on securities represent the total of other than temporary impairment charges, which are recorded as component of noninterest income.

Change in Assets Measured at Fair Value on a Nonrecurring Basis

The following table presents information regarding the change in assets measured at fair value on a nonrecurring basis for the three- and six-months periods ended June 30, 2014.

($ in thousands)	Impaired Loans			Foreclosed Real Estate
Balance at December 31, 2013	$	57,160		$	10,669
Net new impaired loans		3,466			—
Principal repayments/sales		(762	)		(1,406	)
Gain from sales		—			72
Balance at March 31, 2014		59,864			9,335
Principal repayments/sales		(2,043	)		(6,816	)
Gain from sales		—			131
Balance at June 30, 2014	$	57,821		$	2,650

The following table presents information regarding the change in assets measured at fair value on a nonrecurring basis for the three- and six-months periods ended June 30, 2013.

($ in thousands)	Impaired Securities			Impaired Loans			Foreclosed Real Estate
Balance at December 31, 2012	$	3,721		$	65,973		$	15,923
Net new impaired loans		—			1,485			—
OTTI writedowns		(366	)		—			—
Impaired loans transferred to foreclosed real estate		—			(3,040	)		3,040
Principal repayments/sales		(63	)		(9,467	)		—
Chargeoffs of impaired loans		—			(115	)		—
Writedowns of carrying value subsequent to foreclosure		—			—			(629	)
Balance at March 31, 2013		3,292			54,836			18,334
Net new impaired loans		—			6,761			—
OTTI writedowns		(325	)		—			—
Principal repayments/sales		(44	)		(9,241	)		(4,107	)
Chargeoffs of impaired loans		—			(1,823	)		—
Writedowns of carrying value subsequent to foreclosure		—			—			(150	)
Recoveries of prior writedowns		—			—			74
Gains from sales		—			—			718
Balance at June 30, 2013	$	2,923		$	50,533		$	14,869

Carrying and Estimated Fair Values of Financial Instruments

The carrying and estimated fair values of our financial instruments are as follows:

	At June 30, 2014				At December 31, 2013
($ in thousands)	Carrying Value		Fair Value		Carrying Value		Fair Value
Financial Assets:
Cash and cash equivalents (1)	$	35,367	$	35,367	$	24,700	$	24,700
Time deposits with banks (1)		5,370		5,370		5,370		5,370
Securities available for sale, net (1)		994		994		965		965
Securities held to maturity, net (2)		358,338		357,311		383,937		378,507
FRB and FHLB stock (3)		8,302		8,302		8,244		8,244
Loans receivable, net (3)		1,131,359		1,142,659		1,099,689		1,100,858
Accrued interest receivable (3)		4,494		4,494		4,861		4,861
Loan fees receivable (3)		2,165		1,709		2,298		1,808
Total Financial Assets	$	1,546,389	$	1,556,206	$	1,530,064	$	1,525,313
Financial Liabilities:
Deposits (3)	$	1,277,823	$	1,289,498	$	1,282,232	$	1,294,690
Borrowed funds plus accrued interest payable (3)		56,760		56,451		57,570		57,260
Accrued interest payable on deposits (3)		1,440		1,440		1,508		1,508
Commitments to lend (3)		397		397		408		408
Total Financial Liabilities	$	1,336,420	$	1,347,786	$	1,341,718	$	1,353,866
Net Financial Assets	$	209,969	$	208,420	$	188,346	$	171,447

(1) We consider these fair value measurements to be Level 1.

(2) We consider these fair value measurements to be Level 2.

(3) We consider these fair value measurements to be Level 3.

XML

Fair Value Measurements - Assets Measured at Fair Value on a Nonrecurring Basis (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013	Dec. 31, 2013
Foreclosed Real Estate [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Accumulated Losses on Outstanding Balance	$ 390		$ 390		$ 2,017
Total Losses (Gains)	(131)	(642)	(203)	(13)
Impaired Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total Losses (Gains)		325		691
Impaired Loans [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Accumulated Losses on Outstanding Balance	8,620		8,620		12,616
Total Losses (Gains)	(354)	(107)	(822)	(155)
Impaired Loans [Member] | Commercial Real Estate [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Accumulated Losses on Outstanding Balance	7,867		7,867		11,522
Total Losses (Gains)	(441)	434	(466)	823
Impaired Loans [Member] | Multifamily Loans [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Accumulated Losses on Outstanding Balance	592		592		594
Total Losses (Gains)	(27)	(534)	(17)	(957)
Impaired Loans [Member] | Land [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Accumulated Losses on Outstanding Balance	161		161		500
Total Losses (Gains)	114	(7)	(339)	(21)
Fair Value Measurement, Level 3 [Member] | Foreclosed Real Estate [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Outstanding Carrying Value	2,650		2,650		10,669
Fair Value Measurement, Level 3 [Member] | Impaired Loans [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Outstanding Carrying Value	57,821		57,821		57,160
Fair Value Measurement, Level 3 [Member] | Impaired Loans [Member] | Commercial Real Estate [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Outstanding Carrying Value	53,156		53,156		52,407
Fair Value Measurement, Level 3 [Member] | Impaired Loans [Member] | Multifamily Loans [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Outstanding Carrying Value	3,110		3,110		3,128
Fair Value Measurement, Level 3 [Member] | Impaired Loans [Member] | Land [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Outstanding Carrying Value	$ 1,555		$ 1,555		$ 1,625

XML

Lines of Credit - Additional Information (Detail) (Federal Home Loan Bank of New York and Federal Reserve Bank of New York [Member], USD $)	Jun. 30, 2014
Federal Home Loan Bank of New York and Federal Reserve Bank of New York [Member]
Federal Home Loan Bank Advances Type Of Fhlb Advances [Line Items]
Unsecured credit lines	$ 41,000,000
Additional total borrowings from FHLB and FRB	380,000,000
Borrowings	$ 0

XML

Subsequent Events - Additional Information (Detail) (USD $) In Millions, except Per Share data, unless otherwise specified	0 Months Ended		1 Months Ended
	Apr. 24, 2014	Jul. 14, 2014 Subsequent Event [Member]	Jul. 31, 2014 Subsequent Event [Member] Bank of the Ozarks, Inc [Member]	Jul. 31, 2014 Subsequent Event [Member] Maximum [Member] Bank of the Ozarks, Inc [Member]	Jul. 31, 2014 Subsequent Event [Member] Minimum [Member] Bank of the Ozarks, Inc [Member]
Subsequent Event [Line Items]
Dividend declared per share	$ 0.05	$ 0.05
Dividend payment date	May 26, 2014	Aug. 26, 2014
Dividend record date	May 15, 2014	Aug. 15, 2014
Business combination, agreed purchase price			$ 228.5
Business combination, share price				$ 39.91	$ 23.95
Number of days to calculate average closing stock price			10 days

XML

Off-Balance Sheet Financial Instruments - Summary of Contractual Amounts of Off-Balance Sheet Financial Instruments (Detail) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2014	Dec. 31, 2013
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Off-balance sheet financial instruments, contractual amount	$ 20,116	$ 20,263
Commitments to Extend Credit [Member]
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Off-balance sheet financial instruments, contractual amount	19,338	19,386
Unused Lines of Credit [Member]
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Off-balance sheet financial instruments, contractual amount	$ 778	$ 877

XML

Loans Receivable (Tables)

6 Months Ended

Jun. 30, 2014

Receivables [Abstract]

Major Classifications of Loans Receivable

Major classifications of loans receivable are summarized as follows:

	At June 30, 2014					At December 31, 2013
($ in thousands)	# of Loans		Amount			# of Loans		Amount
Loans Secured By Real Estate:
Commercial loans		414	$	888,043			394	$	838,766
Multifamily loans		142		205,258			138		210,270
One to four family loans		16		59,211			20		72,064
Land loans		5		8,381			5		9,178
		577		1,160,893			557		1,130,278
All Other Loans:
Business loans		18		1,031			19		1,061
Consumer loans		8		170			12		211
		26		1,201			31		1,272
Loans receivable, gross		603		1,162,094			588		1,131,550
Deferred loan fees				(4,137	)				(4,028	)
Loans receivable, net of deferred fees				1,157,957					1,127,522
Allowance for loan losses				(26,598	)				(27,833	)
Loans receivable, net			$	1,131,359				$	1,099,689

Summary of Impaired Loans

The tables below summarize certain information regarding our impaired loans as follows:

($ in thousands)	Recorded Investment by State (1)																Specific Valuation Allowance (2)		Total Unpaid Principal (3)		# of Loans
At June 30, 2014 Type	NY		FL		VA		GA		CT		OH		SD		Total
Retail	$	8,138	$	9,005	$	7,727	$	—	$	2,684	$	—	$	—	$	27,554	$	2,777	$	31,251		6
Office Building		—		14,285		—		8,695		—		—		—		22,980		1,928		22,980		3
Parking Lot		2,622		—		—		—		—		—		—		2,622		79		2,622		1
Multifamily		—		3,110		—		—		—		—		—		3,110		591		3,110		2
Land		—		—		—		—		—		—		1,555		1,555		161		1,555		1
Totals	$	10,760	$	26,400	$	7,727	$	8,695	$	2,684	$	—	$	1,555	$	57,821	$	5,536	$	61,518		13

($ in thousands)	Recorded Investment by State (1)																Specific Valuation Allowance (2)		Total Unpaid Principal (3)		# of Loans
At December 31, 2013 Type	NY		FL		VA		GA		CT		OH		SD		Total
Retail	$	8,223	$	9,005	$	7,828	$	—	$	2,719	$	1,000	$	—	$	28,775	$	3,052	$	36,216		7
Office Building		—		14,937		—		8,695		—		—		—		23,632		1,947		23,632		3
Multifamily		—		3,128		—		—		—		—		—		3,128		594		3,128		2
Land		—		—		—		—		—		—		1,625		1,625		500		1,625		1
Totals	$	8,223	$	27,070	$	7,828	$	8,695	$	2,719	$	1,000	$	1,625	$	57,160	$	6,093	$	64,601		13

(1) Represents unpaid principal less partial principal charge offs and interest received and applied as a reduction of principal in certain cases.

(2) Represents a specific valuation allowance against the recorded investment, which is included as part of our overall allowance for loan losses.

All impaired loans at the dates indicated in the table had a specific valuation allowance.

(3) Represents contractual unpaid principal balance (shown for informational purposes only). The borrowers are obligated to pay such amounts.

Other Information Related to Impaired Loans

Other information related to our impaired loans is summarized as follows:

	Quarter Ended June 30,				Six-Months Ended June 30,
($ in thousands)	2014		2013		2014		2013
Average recorded investment in nonaccrual loans	$	34,336	$	39,733	$	35,400	$	41,831
Total cash basis interest income recognized on nonaccrual loans		458		610		977		1,208
Average recorded investment in accruing TDR loans		16,756		13,271		15,071		15,799
Total interest income recognized on accruing TDR loans under modified terms		223		179		400		429

Age Analysis of Loan Portfolio by Segment

Age analysis of our loan portfolio by segment at June 30, 2014 is summarized as follows:

($ in thousands)	Total Portfolio		Current		Past Due 31-59 Days		Past Due 60-89 Days		Past Due 90 or more Days		Total Past Due
Accruing Loans:
Commercial real estate	$	865,038	$	862,045	$	—	$	—	$	2,993	$	2,993
Multifamily		205,258		205,258		—		—		—		—
One to four family		59,211		59,211		—		—		—		—
Land		8,381		8,381		—		—		—		—
All other		1,201		1,201		—		—		—		—
Total accruing loans		1,139,089		1,136,096		—		—		2,993		2,993
Nonaccrual Loans (1):
Commercial real estate		23,005		20,383		—		—		2,622		2,622
Total nonaccrual loans		23,005		20,383		—		—		2,622		2,622
Total loans	$	1,162,094	$	1,156,479	$	—	$	—	$	5,615	$	5,615

(1) The amount of nonaccrual loans in the current column included $17.7 million of TDRs for which payments were being made in accordance with their restructured terms, but the loans were maintained on nonaccrual status in accordance with regulatory guidance. The remaining portion was comprised of one performing and paying loan classified nonaccrual due to concerns regarding the borrower’s ability to continue making payments. Interest income from loan payments received on loans in nonaccrual status is recognized on a cash basis, provided the remaining principal balance is deemed collectible.

Age analysis of our loan portfolio by segment at December 31, 2013 is summarized as follows:

($ in thousands)	Total Portfolio		Current		Past Due 31-59 Days		Past Due 60-89 Days		Past Due 90 or more Days		Total Past Due
Accruing Loans:
Commercial real estate	$	802,863	$	796,980	$	1,796	$	—	$	4,087	$	5,883
Multifamily		210,270		209,426		844		—		—		844
One to four family		72,064		72,064		—		—		—		—
Land		9,178		9,178		—		—		—		—
All other		1,272		1,271		1		—		—		1
Total accruing loans		1,095,647		1,088,919		2,641		—		4,087		6,728
Nonaccrual Loans (1):
Commercial real estate		35,903		35,903		—		—		—		—
Total nonaccrual loans		35,903		35,903		—		—		—		—
Total loans	$	1,131,550	$	1,124,822	$	2,641	$	—	$	4,087	$	6,728

(1) The amount of nonaccrual loans in the current column included $33.2 million of TDRs for which payments were being made in accordance with their restructured terms, but the loans were maintained on nonaccrual status in accordance with regulatory guidance. The remaining portion was comprised of certain paying loans classified nonaccrual due to concerns regarding the borrowers’ ability to continue making payments. Interest income from loan payments received on loans in nonaccrual status is recognized on a cash basis, provided the remaining principal balance is deemed collectible.

Information Regarding Credit Quality of Loan Portfolio

Information regarding the credit quality of the loan portfolio based on our internally assigned grades follows:

($ in thousands)	Pass		Special Mention		Substandard (1)		Total
At June 30, 2014
Commercial real estate	$	829,466	$	3,218	$	55,359	$	888,043
Multifamily		199,326		2,361		3,571		205,258
One to four family		59,211		—		—		59,211
Land		8,381		—		—		8,381
All other		1,201		—		—		1,201
Total loans	$	1,097,585	$	5,579	$	58,930	$	1,162,094
Allocation of allowance for loan losses	$	21,055	$	163	$	5,380	$	26,598
At December 31, 2013
Commercial real estate	$	772,900	$	3,522	$	62,344	$	838,766
Multifamily		204,298		2,369		3,603		210,270
One to four family		72,064		—		—		72,064
Land		7,553		—		1,625		9,178
All other		1,272		—		—		1,272
Total loans	$	1,058,087	$	5,891	$	67,572	$	1,131,550
Allocation of allowance for loan losses	$	20,720	$	169	$	6,944	$	27,833

(1) Substandard loans consisted of $23.0 million of nonaccrual loans, $25.1 million of accruing TDRs and $10.8 million of other performing loans at June 30, 2014, compared to $35.9 million of nonaccrual loans, $13.1 million of accruing TDRs and $18.6 million of other performing loans at December 31, 2013. At June 30, 2014 and December 31, 2013, we also had accruing TDRs of $2.0 million and $0.4 million, respectively, which were rated pass.

Geographic Distribution of Loan Portfolio

The geographic distribution of the loan portfolio by state follows:

($ in thousands)	At June 30, 2014					At December 31, 2013
	Amount		% of Total			Amount		% of Total
New York	$	651,314		56.0	%	$	670,052		59.3	%
Florida		339,410		29.3			321,812		28.4
North Carolina		28,148		2.4			22,611		2.0
Georgia		21,109		1.9			18,799		1.7
New Jersey		13,542		1.2			15,650		1.4
Pennsylvania		13,263		1.1			16,898		1.5
Virginia		13,166		1.1			11,491		1.0
Kentucky		8,440		0.7			11,930		1.1
South Carolina		8,044		0.7			9,223		0.8
Connecticut		7,366		0.6			8,429		0.7
Tennessee		6,731		0.6			5,843		0.5
Massachusetts		6,058		0.5			—		—
Texas		5,720		0.5			—		—
Michigan		5,514		0.5			5,599		0.5
Arizona		5,125		0.4			—		—
West Virginia		4,477		0.4			—		—
Ohio		4,429		0.4			4,703		0.4
Utah		3,937		0.3			—		—
Illinois		3,627		0.3			—		—
Indiana		3,463		0.3			2,820		0.2
All other states		9,211		0.8			5,690		0.5
	$	1,162,094		100.0	%	$	1,131,550		100.0	%

Distribution of TDRs by Accruing Versus Nonaccruing, by Segment and by Geographic

The distribution of TDRs by accruing versus nonaccruing, by loan type and by geographic distribution follows:

($ in thousands)	At June 30, 2014		At December 31, 2013
Performing – nonaccrual status	$	17,700	$	33,184
Performing – accrual status		27,088		13,429
	$	44,788	$	46,613
Commercial real estate	$	40,123	$	41,860
Multifamily		3,110		3,128
Land		1,555		1,625
	$	44,788	$	46,613
New York	$	8,138	$	8,223
Florida		26,400		27,070
Georgia		8,695		8,695
Ohio		—		1,000
South Dakota		1,555		1,625
	$	44,788	$	46,613

XML

Allowance for Loan Losses - Allowance for Loan Losses by Loan Type (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Financing Receivable, Allowance for Credit Losses [Line Items]
Balance at beginning of period	$ 27,418	$ 28,210	$ 27,833	$ 28,103
Loan chargeoffs		(1,823)		(1,938)
Loan recoveries	180	818	265	2,040
(Credit) provision for loan losses	(1,000)	(750)	(1,500)	(1,750)
Balance at end of period	26,598	26,455	26,598	26,455
Commercial Real Estate [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Balance at beginning of period	18,813	18,644	18,403	19,051
Loan chargeoffs		(1,817)		(1,932)
Loan recoveries	180	818	251	880
(Credit) provision for loan losses	(612)	(49)	(273)	(403)
Balance at end of period	18,381	17,596	18,381	17,596
Multifamily Loans [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Balance at beginning of period	5,112	5,617	5,097	6,881
Loan chargeoffs		(6)		(6)
Loan recoveries			14	677
(Credit) provision for loan losses	(148)	(513)	(147)	(2,454)
Balance at end of period	4,964	5,098	4,964	5,098
One to Four Family [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Balance at beginning of period	2,632	2,971	3,017	1,120
Loan chargeoffs
Loan recoveries
(Credit) provision for loan losses	(274)	(176)	(659)	1,675
Balance at end of period	2,358	2,795	2,358	2,795
Land [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Balance at beginning of period	853	970	1,308	1,043
Loan chargeoffs
Loan recoveries				483
(Credit) provision for loan losses	34	(14)	(421)	(570)
Balance at end of period	887	956	887	956
All Other [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Balance at beginning of period	8	8	8	8
Loan chargeoffs
Loan recoveries
(Credit) provision for loan losses		2		2
Balance at end of period	$ 8	$ 10	$ 8	$ 10

XML

Loans Receivable - Summary of Impaired Loans (Detail) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2014 SecurityLoan	Dec. 31, 2013 SecurityLoan
Mortgage Loans on Real Estate [Line Items]
Recorded Investment	$ 57,821	$ 57,160
Specific Valuation Allowance	5,536	6,093
Total Unpaid Principal	61,518	64,601
# of Loans	13	13
New York [Member]
Mortgage Loans on Real Estate [Line Items]
Recorded Investment	10,760	8,223
Florida [Member]
Mortgage Loans on Real Estate [Line Items]
Recorded Investment	26,400	27,070
Virginia [Member]
Mortgage Loans on Real Estate [Line Items]
Recorded Investment	7,727	7,828
Georgia [Member]
Mortgage Loans on Real Estate [Line Items]
Recorded Investment	8,695	8,695
Connecticut [Member]
Mortgage Loans on Real Estate [Line Items]
Recorded Investment	2,684	2,719
Ohio [Member]
Mortgage Loans on Real Estate [Line Items]
Recorded Investment		1,000
South Dakota [Member]
Mortgage Loans on Real Estate [Line Items]
Recorded Investment	1,555	1,625
Retail [Member]
Mortgage Loans on Real Estate [Line Items]
Recorded Investment	27,554	28,775
Specific Valuation Allowance	2,777	3,052
Total Unpaid Principal	31,251	36,216
# of Loans	6	7
Retail [Member] | New York [Member]
Mortgage Loans on Real Estate [Line Items]
Recorded Investment	8,138	8,223
Retail [Member] | Florida [Member]
Mortgage Loans on Real Estate [Line Items]
Recorded Investment	9,005	9,005
Retail [Member] | Virginia [Member]
Mortgage Loans on Real Estate [Line Items]
Recorded Investment	7,727	7,828
Retail [Member] | Georgia [Member]
Mortgage Loans on Real Estate [Line Items]
Recorded Investment
Retail [Member] | Connecticut [Member]
Mortgage Loans on Real Estate [Line Items]
Recorded Investment	2,684	2,719
Retail [Member] | Ohio [Member]
Mortgage Loans on Real Estate [Line Items]
Recorded Investment		1,000
Retail [Member] | South Dakota [Member]
Mortgage Loans on Real Estate [Line Items]
Recorded Investment
Office Building [Member]
Mortgage Loans on Real Estate [Line Items]
Recorded Investment	22,980	23,632
Specific Valuation Allowance	1,928	1,947
Total Unpaid Principal	22,980	23,632
# of Loans	3	3
Office Building [Member] | New York [Member]
Mortgage Loans on Real Estate [Line Items]
Recorded Investment
Office Building [Member] | Florida [Member]
Mortgage Loans on Real Estate [Line Items]
Recorded Investment	14,285	14,937
Office Building [Member] | Virginia [Member]
Mortgage Loans on Real Estate [Line Items]
Recorded Investment
Office Building [Member] | Georgia [Member]
Mortgage Loans on Real Estate [Line Items]
Recorded Investment	8,695	8,695
Office Building [Member] | Connecticut [Member]
Mortgage Loans on Real Estate [Line Items]
Recorded Investment
Office Building [Member] | Ohio [Member]
Mortgage Loans on Real Estate [Line Items]
Recorded Investment
Office Building [Member] | South Dakota [Member]
Mortgage Loans on Real Estate [Line Items]
Recorded Investment
Parking Lot [Member]
Mortgage Loans on Real Estate [Line Items]
Recorded Investment	2,622
Specific Valuation Allowance	79
Total Unpaid Principal	2,622
# of Loans	1
Parking Lot [Member] | New York [Member]
Mortgage Loans on Real Estate [Line Items]
Recorded Investment	2,622
Parking Lot [Member] | Florida [Member]
Mortgage Loans on Real Estate [Line Items]
Recorded Investment
Parking Lot [Member] | Virginia [Member]
Mortgage Loans on Real Estate [Line Items]
Recorded Investment
Parking Lot [Member] | Georgia [Member]
Mortgage Loans on Real Estate [Line Items]
Recorded Investment
Parking Lot [Member] | Connecticut [Member]
Mortgage Loans on Real Estate [Line Items]
Recorded Investment
Parking Lot [Member] | Ohio [Member]
Mortgage Loans on Real Estate [Line Items]
Recorded Investment
Parking Lot [Member] | South Dakota [Member]
Mortgage Loans on Real Estate [Line Items]
Recorded Investment
Multifamily Loans [Member]
Mortgage Loans on Real Estate [Line Items]
Recorded Investment	3,110	3,128
Specific Valuation Allowance	591	594
Total Unpaid Principal	3,110	3,128
# of Loans	2	2
Multifamily Loans [Member] | New York [Member]
Mortgage Loans on Real Estate [Line Items]
Recorded Investment
Multifamily Loans [Member] | Florida [Member]
Mortgage Loans on Real Estate [Line Items]
Recorded Investment	3,110	3,128
Multifamily Loans [Member] | Virginia [Member]
Mortgage Loans on Real Estate [Line Items]
Recorded Investment
Multifamily Loans [Member] | Georgia [Member]
Mortgage Loans on Real Estate [Line Items]
Recorded Investment
Multifamily Loans [Member] | Connecticut [Member]
Mortgage Loans on Real Estate [Line Items]
Recorded Investment
Multifamily Loans [Member] | Ohio [Member]
Mortgage Loans on Real Estate [Line Items]
Recorded Investment
Multifamily Loans [Member] | South Dakota [Member]
Mortgage Loans on Real Estate [Line Items]
Recorded Investment
Land [Member]
Mortgage Loans on Real Estate [Line Items]
Recorded Investment	1,555	1,625
Specific Valuation Allowance	161	500
Total Unpaid Principal	1,555	1,625
# of Loans	1	1
Land [Member] | New York [Member]
Mortgage Loans on Real Estate [Line Items]
Recorded Investment
Land [Member] | Florida [Member]
Mortgage Loans on Real Estate [Line Items]
Recorded Investment
Land [Member] | Virginia [Member]
Mortgage Loans on Real Estate [Line Items]
Recorded Investment
Land [Member] | Georgia [Member]
Mortgage Loans on Real Estate [Line Items]
Recorded Investment
Land [Member] | Connecticut [Member]
Mortgage Loans on Real Estate [Line Items]
Recorded Investment
Land [Member] | Ohio [Member]
Mortgage Loans on Real Estate [Line Items]
Recorded Investment
Land [Member] | South Dakota [Member]
Mortgage Loans on Real Estate [Line Items]
Recorded Investment	$ 1,555	$ 1,625

XML

Fair Value Measurements - Carrying and Estimated Fair Values of Financial Instruments (Detail) (USD $)	Jun. 30, 2014	Dec. 31, 2013
Financial Assets:
Securities available for sale, net	$ 994,000	$ 965,000
Securities held to maturity, net	357,311,000	378,507,000
Fair Value [Member]
Financial Assets:
Total Financial Assets	1,556,206,000	1,525,313,000
Financial Liabilities:
Total Financial Liabilities	1,347,786,000	1,353,866,000
Net Financial Assets	208,420,000	171,447,000
Fair Value [Member] | Fair Value Measurement, Level 1 [Member]
Financial Assets:
Cash and cash equivalents	35,367,000	24,700,000
Time deposits with banks	5,370,000	5,370,000
Securities available for sale, net	994,000	965,000
Fair Value [Member] | Fair Value Measurement, Level 2 [Member]
Financial Assets:
Securities held to maturity, net	357,311,000	378,507,000
Fair Value [Member] | Fair Value Measurement, Level 3 [Member]
Financial Assets:
FRB and FHLB stock	8,302,000	8,244,000
Loans receivable, net	1,142,659,000	1,100,858,000
Accrued interest receivable	4,494,000	4,861,000
Loan fees receivable	1,709,000	1,808,000
Financial Liabilities:
Deposits	1,289,498,000	1,294,690,000
Borrowed funds plus accrued interest payable	56,451,000	57,260,000
Accrued interest payable on deposits	1,440,000	1,508,000
Commitments to lend	397,000	408,000
Carrying Value [Member]
Financial Assets:
Cash and cash equivalents	35,367,000	24,700,000
Time deposits with banks	5,370,000	5,370,000
Securities available for sale, net	994,000	965,000
Securities held to maturity, net	358,338,000	383,937,000
FRB and FHLB stock	8,302,000	8,244,000
Loans receivable, net	1,131,359,000	1,099,689,000
Accrued interest receivable	4,494,000	4,861,000
Loan fees receivable	2,165,000	2,298,000
Total Financial Assets	1,546,389,000	1,530,064,000
Financial Liabilities:
Deposits	1,277,823,000	1,282,232,000
Borrowed funds plus accrued interest payable	56,760,000	57,570,000
Accrued interest payable on deposits	1,440,000	1,508,000
Commitments to lend	397,000	408,000
Total Financial Liabilities	1,336,420,000	1,341,718,000
Net Financial Assets	$ 209,969,000	$ 188,346,000

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Securities Held to Maturity and Available for Sale - Summary of Carrying Value (Amortized Cost) and Fair Value of Securities Held to Maturity (Detail) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2014	Dec. 31, 2013
Investments Debt And Equity Securities [Abstract]
Due in one year or less, Amortized Cost	$ 8,349
Due in one year or less, Estimated Fair Value	8,362
Due in one year or less, Wtd-Avg Yield	1.32%
Due after one year through five years, Amortized Cost	250,465
Due after one year through five years, Estimated Fair Value	249,349
Due after one year through five years, Wtd-Avg Yield	0.97%
Due after five years through ten years, Amortized Cost	49,778
Due after five years through ten years, Estimated Fair Value	49,504
Due after five years through ten years, Wtd-Avg Yield	1.68%
Due after ten years, Amortized Cost	49,746
Due after ten years, Estimated Fair Value	50,096
Due after ten years, Wtd-Avg Yield	1.86%
Securities held to maturity, Total Amortized Cost	358,338
Estimated Fair Value	$ 357,311	$ 378,507
Securities held to maturity, Wtd-Avg Yield	1.20%	1.11%

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Allowance for Loan Losses - Loans Receivable by Segment and Impairment Evaluation and Allowance for Loan Losses (Detail) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2012
Loans:
Individually evaluated for impairment	$ 57,821		$ 57,160
Collectively evaluated for impairment	1,104,273		1,074,390
Total loans	1,162,094		1,131,550
Allowance for loan losses:
Individually evaluated for impairment	5,536		6,093
Collectively evaluated for impairment	21,062		21,740
Total allowance for loan losses	26,598	27,418	27,833	26,455	28,210	28,103
Commercial Real Estate [Member]
Loans:
Individually evaluated for impairment	53,156		52,407
Collectively evaluated for impairment	834,887		786,359
Total loans	888,043		838,766
Allowance for loan losses:
Individually evaluated for impairment	4,784		4,999
Collectively evaluated for impairment	13,597		13,404
Total allowance for loan losses	18,381		18,403
Multifamily Loans [Member]
Loans:
Individually evaluated for impairment	3,110		3,128
Collectively evaluated for impairment	202,148		207,142
Total loans	205,258		210,270
Allowance for loan losses:
Individually evaluated for impairment	591		594
Collectively evaluated for impairment	4,373		4,503
Total allowance for loan losses	4,964		5,097
One to Four Family [Member]
Loans:
Individually evaluated for impairment
Collectively evaluated for impairment	59,211		72,064
Total loans	59,211		72,064
Allowance for loan losses:
Individually evaluated for impairment
Collectively evaluated for impairment	2,358		3,017
Total allowance for loan losses	2,358		3,017
Land [Member]
Loans:
Individually evaluated for impairment	1,555		1,625
Collectively evaluated for impairment	6,826		7,553
Total loans	8,381		9,178
Allowance for loan losses:
Individually evaluated for impairment	161		500
Collectively evaluated for impairment	726		808
Total allowance for loan losses	887		1,308
All Other [Member]
Loans:
Individually evaluated for impairment
Collectively evaluated for impairment	1,201		1,272
Total loans	1,201		1,272
Allowance for loan losses:
Individually evaluated for impairment
Collectively evaluated for impairment	8		8
Total allowance for loan losses	$ 8		$ 8

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Earnings Per Common Share and Common Stock Dividend - Summary of Basic and Diluted Earnings Per Common Share (Parenthetical) (Detail)	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Earnings Per Share [Abstract]
Outstanding options/warrants to purchase, shares	223,280	235,630	223,280	235,630

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Common Stock Warrant and Equity Incentive Plans - Summary of the Activity in IBC's Outstanding Common Stock Warrant and Options (Parenthetical) (Detail) (USD $)	6 Months Ended
	Jun. 30, 2014	Dec. 31, 2013
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of warrants purchased	1,025,278	1,041,445
Vested and exercisable	99.00%
Calculated intrinsic value	$ 7.74
Exercise Price Per Warrant/Option $5.42 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of warrants purchased	691,882	691,882
Exercise Price Per Warrant/Option	$ 5.42
Vested and exercisable	100.00%
Price Per Share $2.55 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise Price Per Warrant/Option	$ 2.55
Vested and exercisable	100.00%

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Loans Receivable - Information Regarding Credit Quality of Loan Portfolio (Parenthetical) (Detail) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2014	Dec. 31, 2013
Financing Receivable, Recorded Investment [Line Items]
Total Financing Receivable by TDRs	$ 44,788	$ 46,613
Nonaccrual Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Financing Receivable by TDRs	23,000	35,900
Accruing Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Financing Receivable by TDRs	25,100	13,100
All Other [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Financing Receivable by TDRs	10,800	18,600
Pass [Member] | Accruing Loans One [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Financing Receivable by TDRs	$ 2,000	$ 400

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Securities Held to Maturity and Available for Sale

6 Months Ended

Jun. 30, 2014

Investments Debt And Equity Securities [Abstract]

Securities Held to Maturity and Available for Sale

Note 2 – Securities Held to Maturity and Available for Sale

The carrying value (amortized cost) and estimated fair value of securities held to maturity (“HTM”) are as follows:

($ in thousands)	Number of Securities		Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value		Wtd-Avg Yield			Wtd-Avg Expected Life		Wtd-Avg Remaining Maturity
At June 30, 2014
U.S. government agencies (1)		155	$	277,752	$	367	$	1,915	$	276,204		1.01	%		2.7 Yrs		3.6 Yrs
Residential mortgage-backed (2)		67		80,055		727		207		80,575		1.86	%		4.4 Yrs		13.6 Yrs
State and municipal		1		531		1		—		532		1.25	%		2.7 Yrs		2.8 Yrs
		223	$	358,338	$	1,095	$	2,122	$	357,311		1.20	%		3.0 Yrs		5.8 Yrs
At December 31, 2013
U.S. government agencies (1)		161	$	305,906	$	410	$	4,947	$	301,369		0.94	%		3.0 Yrs		3.8 Yrs
Residential mortgage-backed (2)		57		77,500		130		1,017		76,613		1.79	%		4.3 Yrs		14.7 Yrs
State and municipal		1		531		—		6		525		1.25	%		3.2 Yrs		3.3 Yrs
		219	$	383,937	$	540	$	5,970	$	378,507		1.11	%		3.3 Yrs		6.0 Yrs

(1) Consist of debt obligations of U.S. government sponsored agencies (GSEs) – Federal Home Loan Bank (FHLB), Federal Farm Credit Bank (FFCB), Federal National Mortgage Association (FNMA) and Federal Home Loan Mortgage Corporation (FHLMC), which are federally chartered corporations privately owned by shareholders. GSE securities carry no explicit U.S. government guarantee of creditworthiness. Neither principal nor interest payments are guaranteed by the U.S. government nor do they constitute a debt or obligation of the U.S. government or any of its agencies or instrumentalities other than the applicable GSE. FNMA and FHLMC are under U.S. government conservatorship.

(2) At June 30, 2014, the portfolio consisted of $12.0 million of Government National Mortgage Association (GNMA) residential pass-through certificates and $68.1 million of residential participation certificates issued by FNMA or FHLMC, compared to $13.6 million and $63.9 million, respectively, at December 31, 2013. The GNMA pass-through certificates are guaranteed as to the payment of principal and interest by the full faith and credit of the U.S. government while the FNMA and FHLMC certificates have an implied guarantee by such agency as to principal and interest payments. Included in this line item are investments in FNMA Delegated Underwriting and Servicing (DUS) mortgage-backed securities (of approximately $14 million at June 30, 2014 and $7.0 million at December 31, 2013) that are backed by eligible multifamily pools that typically contain one loan or single purpose entity.

The estimated fair values of HTM securities with gross unrealized losses segregated between securities that have been in a continuous unrealized loss position for less than twelve months at the respective dates and those that have been in a continuous unrealized loss position for twelve months or longer are summarized as follows:

	Number of Securities		Less Than Twelve Months				Twelve Months or Longer				Total
($ in thousands)			Estimated Fair Value		Gross Unrealized Losses		Estimated Fair Value		Gross Unrealized Losses		Estimated Fair Value		Gross Unrealized Losses
At June 30, 2014
U.S. government agencies		108	$	24,871	$	48	$	161,636	$	1,867	$	186,507	$	1,915
Residential mortgage-backed		23		5,475		15		22,567		192		28,042		207
		131	$	30,346	$	63	$	184,203	$	2,059	$	214,549	$	2,122
At December 31, 2013
U.S. government agencies		130	$	233,930	$	4,791	$	7,344	$	156	$	241,274	$	4,947
Residential mortgage-backed		41		48,862		987		3,284		30		52,146		1,017
State and municipal		1		525		6		—		—		525		6
		172	$	283,317	$	5,784	$	10,628	$	186	$	293,945	$	5,970

All HTM securities were investment grade rated. The securities had either fixed interest rates or had predetermined scheduled interest rate increases and nearly all had call or prepayment features that allow the issuer to repay all or a portion of the security at par before its stated maturity without penalty. In general, as interest rates rise, the estimated fair value of fixed-rate securities will decrease; as interest rates fall, their value will increase. We generally view changes in fair value caused by changes in interest rates as temporary, which is consistent with our experience. The estimated fair values disclosed in this footnote for HTM securities were obtained from a third-party pricing service that used Level 2 inputs. At June 30, 2014 and December 31, 2013, INB, which owned the HTM portfolio, also had the ability and intent to hold all of the investments for a period of time sufficient for the estimated fair value of the securities with unrealized losses to recover, which may be at the time of maturity. Accordingly, we viewed all the gross unrealized losses related to the HTM portfolio as of those dates to be temporary for the reasons noted above.

The following table is a summary of the carrying value (amortized cost) and estimated fair value of HTM securities at June 30, 2014, by remaining period to contractual maturity (ignoring earlier call dates, if any). The amounts reported in the table also did not consider the effects of possible prepayments or unscheduled repayments. Accordingly, actual maturities may differ from contractual maturities shown in the table.

($ in thousands)	Amortized Cost		Estimated Fair Value		Wtd-Avg Yield
Due in one year or less	$	8,349	$	8,362		1.32	%
Due after one year through five years		250,465		249,349		0.97
Due after five years through ten years		49,778		49,504		1.68
Due after ten years		49,746		50,096		1.86
	$	358,338	$	357,311		1.20	%

The table below provides a cumulative roll forward of credit losses recognized on securities held to maturity for the periods indicated.

	Quarter Ended June 30,				Six-Months Ended June 30,
($ in thousands)	2014		2013		2014		2013
Balance at beginning of period	$	—	$	4,599	$	—	$	4,233
Additional credit losses on debt securities for which OTTI was previously recognized		—		325		—		691
Balance at end of period	$	—	$	4,924	$	—	$	4,924

At June 30, 2014 and December 31, 2013, the carrying value (estimated fair value) of securities available for sale amounted to approximately $1.0 million. The investment represented approximately 92,850 and 91,700 shares, respectively, of an intermediate bond fund that holds securities that are deemed to be qualified under the Community Reinvestment Act.

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Common Stock Warrant and Equity Incentive Plans - Summary of Selected Information Regarding Awards of Restricted Common Stock Awards Made Under Plans (Detail) (USD $) In Thousands, except Share data, unless otherwise specified	6 Months Ended	12 Months Ended
	Jun. 30, 2014	Dec. 31, 2013
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Grant date of award, Stock Grant	Jan. 23, 2014	Jan. 24, 2013
Total restricted shares of stock awarded	92,000	330,700
Grant date per share fair value	$ 7.65	$ 4.50
Total estimated fair value of award	$ 703,800	$ 1,488,150
Awards scheduled to vest as follows:
Awards scheduled to vest, Stock Grant	92,000	330,700
January 2014 [Member]
Awards scheduled to vest as follows:
Awards scheduled to vest, Stock Grant		49,566
January 2015 [Member]
Awards scheduled to vest as follows:
Awards scheduled to vest, Stock Grant	30,664	170,888
January 2016 [Member]
Awards scheduled to vest as follows:
Awards scheduled to vest, Stock Grant	30,664	110,246
January 2017 [Member]
Awards scheduled to vest as follows:
Awards scheduled to vest, Stock Grant	30,672

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Loans Receivable - Other Information Related to Impaired Loans (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Nonaccrual Loans [Member]
Financing Receivable, Modifications [Line Items]
Average recorded investment in accruing TDR loans	$ 34,336	$ 39,733	$ 35,400	$ 41,831
Total cash basis interest income recognized on nonaccrual loans	458	610	977	1,208
TDR Loans [Member]
Financing Receivable, Modifications [Line Items]
Average recorded investment in accruing TDR loans	16,756	13,271	15,071	15,799
Total interest income recognized on accruing TDR loans under modified terms	$ 223	$ 179	$ 400	$ 429

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Subordinated Debentures - Capital Securities (Tables)

6 Months Ended

Jun. 30, 2014

Text Block [Abstract]

Summary of Capital Securities Outstanding

Capital Securities (commonly referred to as trust preferred securities) outstanding are summarized as follows:

	At June 30, 2014							At December 31, 2013
($ in thousands)	Principal		Accrued Interest Payable		Interest Rate			Principal		Accrued Interest Payable		Interest Rate
Capital Securities II – debentures due September 17, 2033	$	15,464	$	18		3.18	%	$	15,464	$	275		3.19	%
Capital Securities III – debentures due March 17, 2034		15,464		18		3.02	%		15,464		261		3.03	%
Capital Securities IV – debentures due September 20, 2034		15,464		14		2.63	%		15,464		223		2.65	%
Capital Securities V – debentures due December 15, 2036		10,310		8		1.88	%		10,310		109		1.89	%
	$	56,702	$	58				$	56,702	$	868

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Deposits (Tables)

6 Months Ended

Jun. 30, 2014

Banking And Thrift [Abstract]

Scheduled Maturities of Certificates of Deposits

Scheduled maturities of certificates of deposit accounts (CDs) are as follows:

	At June 30, 2014					At December 31, 2013
($ in thousands)	Amount		Wtd-Avg Stated Rate			Amount		Wtd-Avg Stated Rate
Within one year	$	318,703		1.87	%	$	307,122		1.97	%
Over one to two years		111,559		1.54			167,323		1.92
Over two to three years		231,691		1.94			170,956		1.92
Over three to four years		80,129		2.34			106,700		2.50
Over four years		154,231		2.06			129,678		2.06
	$	896,313		1.92	%	$	881,779		2.03	%

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Deposits - Additional Information (Detail) (USD $)	Jun. 30, 2014	Dec. 31, 2013
Assets Sold under Agreements to Repurchase [Line Items]
CDs of $100,000 or more	$ 501,000,000	$ 473,000,000
Brokered certificate deposits amount	87,000,000	91,000,000
Due within one year	318,703,000	307,122,000
Due over one to two years	111,559,000	167,323,000
Due over two to three years	231,691,000	170,956,000
Due over three to four years	80,129,000	106,700,000
Due thereafter	154,231,000	129,678,000
CDs of $100,000 or More [Member]
Assets Sold under Agreements to Repurchase [Line Items]
Due within one year	146,000,000
Due over one to two years	52,000,000
Due over two to three years	149,000,000
Due over three to four years	52,000,000
Due thereafter	102,000,000
Brokered CDs [Member]
Assets Sold under Agreements to Repurchase [Line Items]
Due within one year	19,000,000
Due over one to two years	8,000,000
Due over two to three years	14,000,000
Due over three to four years	25,000,000
Due thereafter	$ 21,000,000
Brokered certificates deposits weighted average rate	2.93%

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Loans Receivable - Age Analysis of Loan Portfolio by Segment (Detail) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2014	Dec. 31, 2013
Mortgage Loans on Real Estate [Line Items]
Total Portfolio	$ 1,162,094	$ 1,131,550
Current	1,156,479	1,124,822
Past Due 31-59 Days		2,641
Past Due 60-89 Days
Past Due 90 or more Days	5,615	4,087
Total Past Due	5,615	6,728
Accruing Loans [Member]
Mortgage Loans on Real Estate [Line Items]
Total Portfolio	1,139,089	1,095,647
Current	1,136,096	1,088,919
Past Due 31-59 Days		2,641
Past Due 60-89 Days
Past Due 90 or more Days	2,993	4,087
Total Past Due	2,993	6,728
Nonaccrual Loans [Member]
Mortgage Loans on Real Estate [Line Items]
Total Portfolio	23,005	35,903
Current	20,383	35,903
Past Due 31-59 Days
Past Due 60-89 Days
Past Due 90 or more Days	2,622
Total Past Due	2,622
Commercial Real Estate [Member]
Mortgage Loans on Real Estate [Line Items]
Total Portfolio	888,043	838,766
Commercial Real Estate [Member] | Accruing Loans [Member]
Mortgage Loans on Real Estate [Line Items]
Total Portfolio	865,038	802,863
Current	862,045	796,980
Past Due 31-59 Days		1,796
Past Due 60-89 Days
Past Due 90 or more Days	2,993	4,087
Total Past Due	2,993	5,883
Commercial Real Estate [Member] | Nonaccrual Loans [Member]
Mortgage Loans on Real Estate [Line Items]
Total Portfolio	23,005	35,903
Current	20,383	35,903
Past Due 31-59 Days
Past Due 60-89 Days
Past Due 90 or more Days	2,622
Total Past Due	2,622
Multifamily Loans [Member]
Mortgage Loans on Real Estate [Line Items]
Total Portfolio	205,258	210,270
Multifamily Loans [Member] | Accruing Loans [Member]
Mortgage Loans on Real Estate [Line Items]
Total Portfolio	205,258	210,270
Current	205,258	209,426
Past Due 31-59 Days		844
Past Due 60-89 Days
Past Due 90 or more Days
Total Past Due		844
One to Four Family [Member]
Mortgage Loans on Real Estate [Line Items]
Total Portfolio	59,211	72,064
One to Four Family [Member] | Accruing Loans [Member]
Mortgage Loans on Real Estate [Line Items]
Total Portfolio	59,211	72,064
Current	59,211	72,064
Past Due 31-59 Days
Past Due 60-89 Days
Past Due 90 or more Days
Total Past Due
Land [Member]
Mortgage Loans on Real Estate [Line Items]
Total Portfolio	8,381	9,178
Land [Member] | Accruing Loans [Member]
Mortgage Loans on Real Estate [Line Items]
Total Portfolio	8,381	9,178
Current	8,381	9,178
Past Due 31-59 Days
Past Due 60-89 Days
Past Due 90 or more Days
Total Past Due
All Other [Member]
Mortgage Loans on Real Estate [Line Items]
Total Portfolio	1,201	1,272
All Other [Member] | Accruing Loans [Member]
Mortgage Loans on Real Estate [Line Items]
Total Portfolio	1,201	1,272
Current	1,201	1,271
Past Due 31-59 Days		1
Past Due 60-89 Days
Past Due 90 or more Days
Total Past Due		$ 1

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Common Stock Warrant and Equity Incentive Plans (Tables)

6 Months Ended

Jun. 30, 2014

Text Block [Abstract]

Summary of Selected Information Regarding Restricted Common Stock Awards made Under Plan

A summary of outstanding common stock options and warrant and related information follows:

	Exercise Price Per Warrant/Option																					Wtd-Avg. Exercise Price
($ in thousands, except per share amounts)	$5.42 (1)			$17.10			$7.50			$4.02			$3.00			$2.55			Total
Outstanding at December 31, 2013		691,882			110,640			113,990			57,400			32,400			35,133			1,041,445		$	6.64
Forfeited/expired (2)		—			(300	)		(300	)		(300	)		(300	)		(200	)		(1,400	)	$	7.14
Options exercised		—			—			(750	)		(1,800	)		(6,350	)		(5,867	)		(14,767	)	$	3.17
Outstanding at June 30, 2014		691,882			110,340			112,940			55,300			25,750			29,066			1,025,278		$	6.69
Expiration date		12/23/18			12/13/17			12/11/18			12/10/19			12/09/20			12/08/21
Vested and exercisable (3)		100	%		100	%		100	%		100	%		100	%		67	%		99	%
Wtd-avg contractual remaining term (in years)		4.5			3.5			4.5			5.5			6.5			7.5			4.6
Intrinsic value at June 30, 2014 (4)	$	1,605		$	—		$	27		$	206		$	122		$	151		$	2,111

(1) The U.S. Department of the Treasury, in connection with IBC’s prior participation in the Capital Purchase Program, owns a warrant to purchase 691,882 shares of IBC’s common stock at an exercise price of $5.42 per share.

(2) Represent options forfeited or expired unexercised.

(3) The $2.55 options further vest and become 100% exercisable on December 8, 2014. Full vesting may occur earlier upon the occurrence of certain events as defined in the option agreement.

(4) Intrinsic value was calculated using the closing price of the common stock on June 30, 2014 of $7.74.

Summary of Outstanding Common Stock Warrant and Options

A summary of selected information regarding awards of restricted common stock during the periods in this report follows:

($ in thousands, except per share amounts)
Grant date of award		1/23/14		1/24/13
Total restricted shares of stock awarded (1)		92,000		330,700
Grant date per share fair value (2)	$	7.65	$	4.50
Total estimated fair value of award	$	703,800	$	1,488,150
Awards scheduled to vest as follows:
January 2014		—		49,566
January 2015		30,664		170,888
January 2016		30,664		110,246
January 2017		30,672		—
		92,000		330,700

(1) For 2014, awards were as follows: a total of 12,000 shares to five executive officers and a total of 80,000 shares to eight non-employee directors (vesting in three equal installments, with one third on each of the next three anniversary dates of the grant).

For 2013, awards were as follows: a total of 182,000 shares to five executive officers (vesting in two installments, with two thirds vesting on the second anniversary of the grant and the remaining one third on the third anniversary of the grant); a total of 80,000 shares to eight non-employee directors and 68,700 shares to other officers and employees (vesting in three equal installments, with one third on each of the next three anniversary dates of the grant).

(2) Fair value of each award was based on the closing market price of IBC’s common stock on the grant date.

Summary of Activity in IBCs Restricted Class A Common Stock

A summary of outstanding restricted common stock and related information follows:

															Wtd-Avg. Price Per Share
	Price Per Share
	$2.90			$4.50			$7.21			$7.65		Total
Outstanding at December 31, 2013		158,317			279,500			135,500			—		573,317		$	4.70
Shares vested and no longer restricted		(101,035	)		(47,664	)		(75,417	)		—		(224,116	)	$	4.69
Shares granted		—			—			—			92,000		92,000		$	7.65
Outstanding at June 30, 2014 (1) (2)		57,282			231,836			60,083			92,000		441,201		$	5.32

(1) All outstanding shares of restricted common stock at June 30, 2014 were unvested and subject to forfeiture.

Shares issued at $2.90 vest: 57,282 on January 19, 2015.

Shares issued at $4.50 vest: 138,664 on January 24, 2015; 93,172 on January 24, 2016.

Shares issued at $7.21 vest: 14,584 on January 19, 2015; 30,333 on January 24, 2015; 15,166 on January 24, 2016.

Shares issued at $7.65 vest: 30,664 on January 23, 2015; 30,664 on January 23, 2016; 30,672 on January 23, 2017.

(2) Vesting is subject to the grantee’s continued employment with us or, in the case of non-employee directors, the grantee’s continued service as our director on the vesting dates. All of the awards are subject to accelerated vesting upon the death or disability of the grantee or upon a change in control of IBC, as defined in the restricted stock agreements. The record holder of IBC’s restricted shares of common stock possesses all the rights of a holder of our common stock, including the right to receive dividends on the shares when declared and to vote the restricted shares. The restricted shares may not be sold, transferred, pledged, assigned, encumbered, or otherwise alienated or hypothecated until they become fully vested and transferable in accordance with the agreements.

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Earnings Per Common Share and Common Stock Dividend (Tables)

6 Months Ended

Jun. 30, 2014

Earnings Per Share [Abstract]

Summary of Basic and Diluted Earnings Per Common Share

Net earnings applicable to common stockholders and the weighted-average number of shares used for basic and diluted earnings per common share computations are summarized in the table that follows:

	Quarter Ended June 30,				Six-Months Ended June 30,
	2014		2013		2014		2013
Basic Earnings Per Common Share:
Net earnings available to common stockholders	$	5,738,000	$	3,213,000	$	9,580,000	$	6,642,000
Weighted-Average number of common shares outstanding		22,023,783		21,923,243		22,007,706		21,877,973
Basic Earnings Per Common Share	$	0.26	$	0.14	$	0.43	$	0.30
Diluted Earnings Per Common Share:
Net earnings applicable to common stockholders	$	5,738,000	$	3,213,000	$	9,580,000	$	6,642,000
Weighted-Average number of common shares outstanding:
Common shares outstanding		22,023,783		21,923,243		22,007,706		21,877,973
Potential dilutive shares resulting from exercise of warrants /options (1)		224,696		79,906		228,099		42,307
Total average number of common shares outstanding used for dilution		22,248,479		22,003,149		22,235,805		21,920,280
Diluted Earnings Per Common Share	$	0.26	$	0.14	$	0.43	$	0.30

(1) All outstanding options/warrants to purchase shares of our common stock were considered for the Diluted EPS computations and only those that were dilutive (as determined by using the treasury stock method prescribed by GAAP) were included in the computations above. For the quarter and six-month periods of 2014, outstanding options/warrants to purchase 223,280 shares of common stock were not dilutive because the exercise price of each was above the average market price of our common stock during these periods. For both the quarter and six-month periods of 2013, 235,630 of options/warrants to purchase common stock were not dilutive because the exercise price of each was above the average market price of our common stock during these periods.

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Summary of Significant Accounting Policies

6 Months Ended

Jun. 30, 2014

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

Note 1—Summary of Significant Accounting Policies

General

Intervest Bancshares Corporation (“IBC”) is the parent company of Intervest National Bank (“INB”). References in this report to “we,” “us” and “our” refer to these entities on a consolidated basis, unless otherwise specified. For a description of our business, see note 1 to the financial statements in our 2013 Annual Report on Form 10-K (“2013 10-K”). Our accounting and reporting policies conform to U.S. generally accepted accounting principles (GAAP) and general practices within the banking industry and are described in note 1 to the financial statements in our 2013 10-K, as updated by the information in this Form 10-Q.

Principles of Consolidation and Basis of Presentation

The condensed consolidated financial statements (“financial statements”) in this report have not been audited except for information derived from our audited 2013 consolidated financial statements and notes thereto and should be read in conjunction with our 2013 10-K. Certain information and note disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted in this report pursuant to the rules and regulations of the Securities and Exchange Commission.

Use of Estimates

In preparing our financial statements, we are required to make estimates and assumptions that affect the reported amounts of assets, liabilities and disclosure of contingent liabilities as of the date of the financial statements, and revenues and expenses during the reporting periods. Actual results could differ from those estimates. Estimates that are particularly susceptible to significant change currently relate to the determination of our allowance for loan losses, valuation allowance for real estate losses, other than temporary impairment assessments of our security investments and the need for and amount of a valuation allowance for our deferred tax asset. These estimates involve a higher degree of complexity and subjectivity and may require assumptions about highly uncertain matters. Current market conditions increase the risk and complexity of the judgments in these estimates. In our opinion, all material adjustments necessary for a fair presentation of our financial condition and results of operations for the interim periods presented in this report have been made. These adjustments are of a normal recurring nature. All significant intercompany balances and transactions have been eliminated in consolidation. Our results of operations for the interim periods are not necessarily indicative of results that may be expected for the entire year or any other interim period.

Stock-Based Compensation

We recognize the cost of our employee and director services received in exchange for awards of our equity instruments (which are in the form of restricted stock, stock options and cash-settled stock appreciation rights or “SARs”) that vest over time based on the grant-date fair value of the awards. The fair value of restricted stock grants is based on the closing market value of our common stock as reported on the Nasdaq Stock Market on the grant date. The fair value of options and SARs is estimated using the Black-Scholes option-pricing model based on various inputs and assumptions that are described in note 9. Compensation cost, or the grant-date fair value of the awards, related to equity awards is recognized on a straight-line basis over the requisite service period, which is normally the vesting period of the grants.

For SARs only, fair value is re-measured at the end of each reporting period and amortized as compensation cost over the remaining requisite service period less amounts previously recognized. The SARs represent liability-classified awards that are remeasured to reflect their fair value at each reporting period. After the requisite service period is completed, the SAR’s fair value continues to be remeasured each reporting period until settlement and any increase/decrease in the fair value is immediately recognized as an increase/decrease to our reported stock compensation expense. Upon cash-settlement of a SAR, stock compensation expense is trued-up to equal the SAR’s intrinsic cash value on the date of settlement.

Stock-based compensation associated with equity awards is recorded as stock compensation expense in the statement of earnings and a corresponding increase to stockholders’ equity as additional paid-in capital for amounts related to restricted stock and stock options, and corresponding increase to accrued stock compensation payable for amounts related to the SARs, which is reported as part of our “other liabilities” in our balance sheet.

For any excess income tax benefit associated with the vesting of restricted common stock awards and the exercise of stock option awards (calculated as the difference between the fair market value of the stock at the vesting date versus the grant date in the case of stock awards and the difference between the fair market value of the stock at the exercise date versus the exercise price per share in the case of options, multiplied by our effective income tax rate) is recorded as decrease to our income taxes payable and an increase in stockholders’ equity as paid-in capital.

Recent Accounting Standards Update

In February 2013, the FASB Issued ASU No. 2013-04, “Obligations Resulting from Joint and Several Liability Arrangements for Which the Total Amount of the Obligation Is Fixed at the Reporting Date”. ASU 2013-04 provides guidance for the recognition, measurement, and disclosure of obligations resulting from joint and several liability arrangements for obligations within the scope of this ASU. We adopted this ASU on January 1, 2014 and it had no impact on our financial statements.

In July 2013, the FASB issued ASU 2013-11, “Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists,” which among other things, requires an unrecognized tax benefit, or a portion of an unrecognized tax benefit, to be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, except as denoted within the ASU. The amendments in this ASU are effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. We adopted this ASU on January 1, 2014 and it had no impact on our financial statements.

In January 2014, the FASB issued ASU 2014-04, “Receivables-Troubled Debt Restructurings by Creditors (Subtopic 310-40): Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure”, which is intended to clarify when a creditor should be considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan such that the loan should be derecognized and the real estate recognized. These amendments clarify that an in substance repossession or foreclosure occurs, and a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan, upon either: (a) the creditor obtaining legal title to the residential real estate property upon completion of a foreclosure; or (b) the borrower conveying all interest in the residential real estate property to the creditor to satisfy that loan through completion of a deed in lieu of foreclosure or through a similar legal agreement. Additional disclosures are required. The amendments are effective for us beginning January 1, 2015.

In June 2014, FASB issued ASU 2014-11, “Transfers and Servicing – Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures.” ASU 2014-11 requires, among other things, two accounting changes. First, the amendments in this update change the accounting for repurchase-to-maturity transactions to secured borrowing accounting. Second, for repurchase financing arrangements, the amendments require separate accounting for a transfer of a financial asset executed contemporaneously with a repurchase agreement with the same counterparty, which will result in secured borrowing accounting for the repurchase agreement. ASU 2014-11 is effective for the first interim or annual period beginning after December 15, 2014. The adoption of this guidance is not expected to have any impact on our financial statements.

In June 2014, FASB issued ASU 2014-12, “Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period.” ASU 2014-12 requires, among other things, that a performance target that affects vesting and could be achieved after the requisite service period be treated as a performance condition. As such, the performance target should not be reflected in estimating the grant-date fair value of the award. ASU 2014-12 is effective for annual reporting periods beginning after December 15, 2015, with early adoption permitted. The adoption of this guidance is not expected to have any impact on our financial statements.

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Off-Balance Sheet Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2014

Investments All Other Investments [Abstract]

Summary of Contractual Amounts of Off-Balance Sheet Financial Instruments

The contractual amounts of off-balance sheet financial instruments are as follows:

($ in thousands)	At June 30, 2014		At December 31, 2013
Commitments to extend credit	$	19,338	$	19,386
Unused lines of credit		778		877
	$	20,116	$	20,263

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Loans Receivable - Major Classification of Loans Receivable (Detail) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2014 SecurityLoan	Mar. 31, 2014	Dec. 31, 2013 SecurityLoan	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2012
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross, # of Loans	603		588
Loans receivable, gross, Amount	$ 1,162,094		$ 1,131,550
Deferred loan fees	(4,137)		(4,028)
Loans receivable, net of deferred fees	1,157,957		1,127,522
Allowance for loan losses	(26,598)	(27,418)	(27,833)	(26,455)	(28,210)	(28,103)
Loans receivable, net	1,131,359		1,099,689
Loans Secured by Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross, # of Loans	577		557
Loans receivable, gross, Amount	1,160,893		1,130,278
All Other Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross, # of Loans	26		31
Loans receivable, gross, Amount	1,201		1,272
Commercial Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Allowance for loan losses	(18,381)	(18,813)	(18,403)	(17,596)	(18,644)	(19,051)
Commercial Real Estate [Member] | Loans Secured by Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross, # of Loans	414		394
Loans receivable, gross, Amount	888,043		838,766
Multifamily Loans [Member] | Loans Secured by Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross, # of Loans	142		138
Loans receivable, gross, Amount	205,258		210,270
One to Four Family [Member] | Loans Secured by Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross, # of Loans	16		20
Loans receivable, gross, Amount	59,211		72,064
Land Loans [Member] | Loans Secured by Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross, # of Loans	5		5
Loans receivable, gross, Amount	8,381		9,178
Business Loans [Member] | All Other Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross, # of Loans	18		19
Loans receivable, gross, Amount	1,031		1,061
Consumer Loans [Member] | All Other Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross, # of Loans	8		12
Loans receivable, gross, Amount	$ 170		$ 211

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Foreclosed Real Estate and Valuation Allowance for Real Estate Losses - Summary of Real Estate Acquired through Foreclosure by Property Type (Detail) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2014 Property	Dec. 31, 2013 Property
Real Estate Properties [Line Items]
# of Properties	1	3
Amount	$ 2,650	$ 10,669
Commercial Real Estate [Member]
Real Estate Properties [Line Items]
# of Properties	1	2
Amount	2,650	3,984
Multifamily Loans [Member]
Real Estate Properties [Line Items]
# of Properties		1
Amount		$ 6,685

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Fair Value Measurements - Additional Information (Detail) (USD $)	Jun. 30, 2014	Dec. 31, 2013
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale, net	$ 994,000	$ 965,000
Fair Value Measurement, Level 1 [Member] | Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale, net	994,000	965,000
Liabilities that were recorded at fair value	$ 0	$ 0

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Condensed Consolidated Balance Sheets (USD $) In Thousands, unless otherwise specified	Jun. 30, 2014	Dec. 31, 2013
ASSETS
Cash and due from banks	$ 33,337	$ 16,689
Federal funds sold and other short-term investments	2,030	8,011
Total cash and cash equivalents	35,367	24,700
Time deposits with banks	5,370	5,370
Securities available for sale, at estimated fair value	994	965
Securities held to maturity (estimated fair value of $357,311 and $378,507, respectively)	358,338	383,937
Federal Reserve Bank and Federal Home Loan Bank stock, at cost	8,302	8,244
Loans receivable (net of allowance for loan losses of $26,598 and $27,833, respectively)	1,131,359	1,099,689
Accrued interest receivable	4,494	4,861
Loan fees receivable	2,165	2,298
Premises and equipment, net	3,926	4,056
Foreclosed real estate (net of valuation allowance of $390 and $2,017, respectively)	2,650	10,669
Deferred income tax asset	14,921	18,362
Other assets	3,938	4,645
Total assets	1,571,824	1,567,796
Deposits:
Noninterest-bearing demand deposit accounts	5,919	5,211
Interest-bearing deposit accounts:
Checking (NOW) accounts	17,421	17,831
Savings accounts	9,977	10,027
Money market accounts	348,193	367,384
Certificate of deposit accounts	896,313	881,779
Total deposit accounts	1,277,823	1,282,232
Long-term debt - subordinated debentures (capital securities)	56,702	56,702
Accrued interest payable on long term debt	58	868
Accrued interest payable on deposits	1,440	1,508
Mortgage escrow funds payable	20,945	18,879
Official checks outstanding	4,881	7,335
Other liabilities	3,396	3,281
Total liabilities	1,365,245	1,370,805
STOCKHOLDERS' EQUITY
Common stock ($1.00 par value; 62,000,000 shares authorized; 22,025,390 and 21,918,623 shares issued and outstanding, respectively)	22,025	21,919
Additional paid-in-capital, common	89,002	88,043
Unearned compensation on restricted common stock awards	(1,864)	(1,898)
Retained earnings	97,438	88,959
Accumulated other comprehensive loss	(22)	(32)
Total stockholders' equity	206,579	196,991
Total liabilities and stockholders' equity	$ 1,571,824	$ 1,567,796

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Loans Receivable - Age Analysis of Loan Portfolio by Segment (Parenthetical) (Detail) (USD $) In Thousands, unless otherwise specified	6 Months Ended	12 Months Ended
	Jun. 30, 2014 SecurityLoan	Dec. 31, 2013 SecurityLoan
Mortgage Loans on Real Estate [Line Items]
Current	$ 1,156,479	$ 1,124,822
Performing loans	1	1
Nonaccrual Loans [Member]
Mortgage Loans on Real Estate [Line Items]
Current	$ 17,700	$ 33,200
Performing loans	1

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Condensed Consolidated Statements of Changes in Stockholders' Equity (Unaudited) (USD $)	Total	Preferred Stock [Member]	Additional Paid-In-Capital, Preferred [Member]	Preferred Stock Discount [Member]	Common Stock [Member]	Additional Paid-In-Capital, Common [Member]	Unearned Compensation - Restricted Common Stock [Member]	Retained Earnings [Member]	Accumulated Other Comprehensive Loss [Member]
Balance at beginning of period at Dec. 31, 2012		$ 25,000	$ 24,975,000	$ (376,000)	$ 21,590,000	$ 85,726,000	$ (715,000)	$ 79,722,000
Balance at beginning of period (in shares) at Dec. 31, 2012		25,000			21,589,589
Preferred stockholder's equity	18,620,000
Net earnings	7,430,000							7,430,000
Amortization of preferred stock discount				246,000
Preferred stockholder's equity (in shares)	18,750
Issuance of shares of restricted stock					331,000	1,157,000	(1,488,000)
Partial redemption		(6,000)	(6,244,000)
Common stockholders' equity	193,155,000
Issuance of shares of restricted stock (in shares)					330,700
Amortization of unearned compensation to compensation expense							507,000
Partial redemption (in shares)		(6,250)
Cash dividend declared and paid on preferred stock								(1,228,000)
Common stockholders' equity, shares	21,923,756
Issuance of shares upon exercise of stock options					11,000	31,000
Discount from partial redemption of preferred stock								187,000
Issuance of shares upon exercise of stock options (in shares)					11,567
Preferred stock discount amortization	(788,000)							(246,000)
Forfeiture of shares of restricted stock					(8,000)	(21,000)
Forfeitures of shares of restricted stock issued (in shares)					(8,100)
Excess income tax benefit from equity awards	145,000					145,000
Compensation expense related to stock options						24,000
Total stockholders' equity	211,775,000	19,000	18,731,000	(130,000)	21,924,000	87,062,000	(1,696,000)	85,865,000
Balance at end of period (in shares)	21,942,506	18,750			21,923,756
Total stockholders' equity at end of period at Jun. 30, 2013	211,775,000	19,000	18,731,000	(130,000)	21,924,000	87,062,000	(1,696,000)	85,865,000
Balance at beginning of period at Dec. 31, 2013	196,991,000	0	0	0	21,919,000	88,043,000	(1,898,000)	88,959,000	(32,000)
Balance at beginning of period (in shares) at Dec. 31, 2013					21,918,623
Net change in accumulated other comprehensive loss	10,000								10,000
Net earnings	9,580,000							9,580,000
Amortization of preferred stock discount				0
Issuance of shares of restricted stock					92,000	612,000	(704,000)
Partial redemption		0	0
Cash dividend declared and paid on common stock								(1,101,000)
Common stockholders' equity	206,579,000
Issuance of shares of restricted stock (in shares)					92,000
Amortization of unearned compensation to compensation expense							738,000
Common stockholders' equity, shares	22,025,390
Issuance of shares upon exercise of stock options					14,000	30,000
Issuance of shares upon exercise of stock options (in shares)	14,767				14,767
Excess income tax benefit from equity awards	307,000					307,000
Compensation expense related to stock options						10,000
Total stockholders' equity	206,579,000	0	0	0	22,025,000	89,002,000	(1,864,000)	97,438,000	(22,000)
Balance at end of period (in shares)	22,025,390	0			22,025,390
Total stockholders' equity at end of period at Jun. 30, 2014	$ 206,579,000	$ 0	$ 0	$ 0	$ 22,025,000	$ 89,002,000	$ (1,864,000)	$ 97,438,000	$ (22,000)

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Common Stock Warrant and Equity Incentive Plans - Additional Information (Detail) (USD $)	3 Months Ended		6 Months Ended		12 Months Ended	6 Months Ended		3 Months Ended	6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013	Dec. 31, 2013 Executive Officers [Member] Installment Executives	Jun. 30, 2014 Stock Appreciation Right [Member] Installment	Jun. 30, 2014 Stock Appreciation Right [Member] Executive Officers [Member] Executives	Jun. 30, 2014 Cash-Settled Stock Appreciation Rights (SARs) [Member]	Jun. 30, 2014 Cash-Settled Stock Appreciation Rights (SARs) [Member]	Jun. 30, 2014 Long Term Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Maximum number of shares of common stock that may be awarded										2,250,000
Common stock were available for award										620,403
Issuance of common stock option										0
Shares Awarded							78,000
Number of participants					5		5
Number of installments					2	3
Contractual term						5 years
Exercise price of option						$ 7.65
Estimated fair value per option						$ 2.28
Estimated fair value of SARs						$ 178,000
Expected dividend yield						1.75%
Expected stock volatility						45.00%
Risk-free interest rate						0.98%
Expected term in years						3 years 6 months
Stock-based compensation expense	279,000	248,000	774,000	502,000				11,000	26,000
Pre-tax, stock-based compensation cost related to all nonvested awards of options and restricted stock not yet recognized	2,100,000		2,100,000
Options and restricted stock not yet recognized and will be recognized over a weighted-average period			1 year 10 months 24 days
Net tax benefit	$ 15,000	$ 0	$ 307,000	$ 145,000

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Securities Held to Maturity and Available for Sale - Carrying Value (Amortized Cost) and Estimated Fair Value of Securities Held to Maturity (Parenthetical) (Detail) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2014	Dec. 31, 2013
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	$ 358,338	$ 383,937
Government National Mortgage Association [Member]
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	12,000	13,600
Federal National Mortgage Association [Member]
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	68,100	63,900
Federal National Mortgage Association Delegated Underwriting and Servicing [Member]
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	$ 14,000	$ 7,000

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Common Stock Warrant and Equity Incentive Plans - Summary of Outstanding Restricted Common Stock and Related Information (Parenthetical) (Detail) (Restricted Common Stock [Member], USD $)	6 Months Ended
	Jun. 30, 2014
Price Per Share $2.90 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise Price Per Warrant/Option	$ 2.90
Price Per Share $2.90 [Member] | January 19, 2015 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted common stock will vest on date 1	57,282
Price Per Share $4.50 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise Price Per Warrant/Option	$ 4.50
Price Per Share $4.50 [Member] | January 24, 2015 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted common stock will vest on date 1	138,664
Price Per Share $4.50 [Member] | January 24, 2016 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted common stock will vest on date 2	93,172
Price Per Share $7.21 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise Price Per Warrant/Option	$ 7.21
Price Per Share $7.21 [Member] | January 19, 2015 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted common stock will vest on date 1	14,584
Price Per Share $7.21 [Member] | January 24, 2015 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted common stock will vest on date 2	30,333
Price Per Share $7.21 [Member] | January 24, 2016 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted common stock will vest on date 3	15,166
Price Per Share $7.65 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise Price Per Warrant/Option	$ 7.65
Price Per Share $7.65 [Member] | January 23, 2015 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted common stock will vest on date 1	30,664
Price Per Share $7.65 [Member] | January 23, 2016 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted common stock will vest on date 2	30,664
Price Per Share $7.65 [Member] | January 23, 2017 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted common stock will vest on date 3	30,672

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Subsequent Events

6 Months Ended

Jun. 30, 2014

Subsequent Events [Abstract]

Subsequent Events

Note 15 – Subsequent Events

On July 14, 2014, IBC’s Board of Directors declared a quarterly dividend of $0.05 per common share payable August 26, 2014 to shareholders of record at the close of business August 15, 2014.

On July 31, 2014, IBC and INB, entered into a definitive agreement and plan of merger (the “Agreement”) with Bank of the Ozarks, Inc. (“Ozarks”) and its wholly-owned bank subsidiary, Bank of the Ozarks, relating to a proposed merger transaction. The Agreement provides that, upon the terms and subject to the conditions set forth therein, (i) the Company will merge with and into Ozarks, with Ozarks continuing as the surviving corporation (the “Merger”), and (ii) INB will merge with and into Bank of the Ozarks, with Bank of the Ozarks continuing as the surviving bank (the “Bank Merger” and, collectively with the “Merger,” the “Mergers”).

Subject to the terms and conditions of the Agreement, upon completion of the Merger, each share of IBC’s common stock, issued and outstanding immediately prior to the effective time of the Merger will be converted into the right to receive shares of Ozarks common stock (plus cash in lieu of any fractional share) based on the purchase price of $228.5 million (less the amount paid by IBC to cash out outstanding stock options and stock appreciation rights and to redeem all outstanding stock warrants prior to closing), subject to certain additional purchase price adjustments set forth in the Agreement. The number of Ozarks shares to be issued will be determined based on Ozarks’ 10-day average closing stock price as of the fifth business day prior to the closing date, subject to a minimum and maximum price of $23.95 and $39.91, respectively.

All IBC stock options and stock appreciation rights, whether or not vested, will be cashed out by IBC prior to closing and shares of restricted stock will become fully vested in connection with the transaction and be exchanged for shares of Ozarks common stock like the other shares of IBC’s common stock. The Agreement has been approved by the boards of directors of each of IBC and Ozarks. Subject to the required approval of IBC’s shareholders, requisite regulatory approvals, the effectiveness of the registration statement to be filed by Ozarks with respect to the stock to be issued in the transaction, and other customary closing conditions, the Merger is expected to be completed late in the fourth quarter of 2014 or in the first quarter of 2015.

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Securities Held to Maturity and Available for Sale - Continuous Unrealized Loss Position (Detail) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2014 Security	Dec. 31, 2013 Security
Long Term Debt Maturity [Line Items]
Number of Securities	131	172
Less Than Twelve Months, Estimated Fair Value	$ 30,346	$ 283,317
Less Than Twelve Months, Gross Unrealized Losses	63	5,784
Twelve Months or Longer, Estimated Fair Value	184,203	10,628
Twelve Months or Longer, Gross Unrealized Losses	2,059	186
Total Estimated Fair Value	214,549	293,945
Total Gross Unrealized Losses	2,122	5,970
U.S. government agencies [Member]
Long Term Debt Maturity [Line Items]
Number of Securities	108	130
Less Than Twelve Months, Estimated Fair Value	24,871	233,930
Less Than Twelve Months, Gross Unrealized Losses	48	4,791
Twelve Months or Longer, Estimated Fair Value	161,636	7,344
Twelve Months or Longer, Gross Unrealized Losses	1,867	156
Total Estimated Fair Value	186,507	241,274
Total Gross Unrealized Losses	1,915	4,947
Residential mortgage-backed [Member]
Long Term Debt Maturity [Line Items]
Number of Securities	23	41
Less Than Twelve Months, Estimated Fair Value	5,475	48,862
Less Than Twelve Months, Gross Unrealized Losses	15	987
Twelve Months or Longer, Estimated Fair Value	22,567	3,284
Twelve Months or Longer, Gross Unrealized Losses	192	30
Total Estimated Fair Value	28,042	52,146
Total Gross Unrealized Losses	207	1,017
State and municipal [Member]
Long Term Debt Maturity [Line Items]
Number of Securities		1
Less Than Twelve Months, Estimated Fair Value		525
Less Than Twelve Months, Gross Unrealized Losses		6
Twelve Months or Longer, Estimated Fair Value
Twelve Months or Longer, Gross Unrealized Losses
Total Estimated Fair Value		525
Total Gross Unrealized Losses		$ 6

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Securities Held to Maturity and Available for Sale (Tables)

6 Months Ended

Jun. 30, 2014

Investments Debt And Equity Securities [Abstract]

Carrying Value (Amortized Cost) and Estimated Fair Value of Securities Held to Maturity

The carrying value (amortized cost) and estimated fair value of securities held to maturity (“HTM”) are as follows:

($ in thousands)	Number of Securities		Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value		Wtd-Avg Yield			Wtd-Avg Expected Life		Wtd-Avg Remaining Maturity
At June 30, 2014
U.S. government agencies (1)		155	$	277,752	$	367	$	1,915	$	276,204		1.01	%		2.7 Yrs		3.6 Yrs
Residential mortgage-backed (2)		67		80,055		727		207		80,575		1.86	%		4.4 Yrs		13.6 Yrs
State and municipal		1		531		1		—		532		1.25	%		2.7 Yrs		2.8 Yrs
		223	$	358,338	$	1,095	$	2,122	$	357,311		1.20	%		3.0 Yrs		5.8 Yrs
At December 31, 2013
U.S. government agencies (1)		161	$	305,906	$	410	$	4,947	$	301,369		0.94	%		3.0 Yrs		3.8 Yrs
Residential mortgage-backed (2)		57		77,500		130		1,017		76,613		1.79	%		4.3 Yrs		14.7 Yrs
State and municipal		1		531		—		6		525		1.25	%		3.2 Yrs		3.3 Yrs
		219	$	383,937	$	540	$	5,970	$	378,507		1.11	%		3.3 Yrs		6.0 Yrs

(1) Consist of debt obligations of U.S. government sponsored agencies (GSEs) – Federal Home Loan Bank (FHLB), Federal Farm Credit Bank (FFCB), Federal National Mortgage Association (FNMA) and Federal Home Loan Mortgage Corporation (FHLMC), which are federally chartered corporations privately owned by shareholders. GSE securities carry no explicit U.S. government guarantee of creditworthiness. Neither principal nor interest payments are guaranteed by the U.S. government nor do they constitute a debt or obligation of the U.S. government or any of its agencies or instrumentalities other than the applicable GSE. FNMA and FHLMC are under U.S. government conservatorship.

(2) At June 30, 2014, the portfolio consisted of $12.0 million of Government National Mortgage Association (GNMA) residential pass-through certificates and $68.1 million of residential participation certificates issued by FNMA or FHLMC, compared to $13.6 million and $63.9 million, respectively, at December 31, 2013. The GNMA pass-through certificates are guaranteed as to the payment of principal and interest by the full faith and credit of the U.S. government while the FNMA and FHLMC certificates have an implied guarantee by such agency as to principal and interest payments. Included in this line item are investments in FNMA Delegated Underwriting and Servicing (DUS) mortgage-backed securities (of approximately $14 million at June 30, 2014 and $7.0 million at December 31, 2013) that are backed by eligible multifamily pools that typically contain one loan or single purpose entity.

Continuous Unrealized Loss Position

The estimated fair values of HTM securities with gross unrealized losses segregated between securities that have been in a continuous unrealized loss position for less than twelve months at the respective dates and those that have been in a continuous unrealized loss position for twelve months or longer are summarized as follows:

	Number of Securities		Less Than Twelve Months				Twelve Months or Longer				Total
($ in thousands)			Estimated Fair Value		Gross Unrealized Losses		Estimated Fair Value		Gross Unrealized Losses		Estimated Fair Value		Gross Unrealized Losses
At June 30, 2014
U.S. government agencies		108	$	24,871	$	48	$	161,636	$	1,867	$	186,507	$	1,915
Residential mortgage-backed		23		5,475		15		22,567		192		28,042		207
		131	$	30,346	$	63	$	184,203	$	2,059	$	214,549	$	2,122
At December 31, 2013
U.S. government agencies		130	$	233,930	$	4,791	$	7,344	$	156	$	241,274	$	4,947
Residential mortgage-backed		41		48,862		987		3,284		30		52,146		1,017
State and municipal		1		525		6		—		—		525		6
		172	$	283,317	$	5,784	$	10,628	$	186	$	293,945	$	5,970

Summary of Carrying Value (Amortized Cost) and Fair Value of Securities Held to Maturity

The following table is a summary of the carrying value (amortized cost) and estimated fair value of HTM securities at June 30, 2014, by remaining period to contractual maturity (ignoring earlier call dates, if any). The amounts reported in the table also did not consider the effects of possible prepayments or unscheduled repayments. Accordingly, actual maturities may differ from contractual maturities shown in the table.

($ in thousands)	Amortized Cost		Estimated Fair Value		Wtd-Avg Yield
Due in one year or less	$	8,349	$	8,362		1.32	%
Due after one year through five years		250,465		249,349		0.97
Due after five years through ten years		49,778		49,504		1.68
Due after ten years		49,746		50,096		1.86
	$	358,338	$	357,311		1.20	%

Credit Losses Recognized on Securities

The table below provides a cumulative roll forward of credit losses recognized on securities held to maturity for the periods indicated.

	Quarter Ended June 30,				Six-Months Ended June 30,
($ in thousands)	2014		2013		2014		2013
Balance at beginning of period	$	—	$	4,599	$	—	$	4,233
Additional credit losses on debt securities for which OTTI was previously recognized		—		325		—		691
Balance at end of period	$	—	$	4,924	$	—	$	4,924

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Earnings Per Common Share and Common Stock Dividend - Additional Information (Detail) (USD $)	0 Months Ended
	Apr. 24, 2014
Earnings Per Share [Abstract]
Dividend declared per share	$ 0.05
Dividend payment date	May 26, 2014
Dividend record date	May 15, 2014

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Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013
OPERATING ACTIVITIES
Net earnings	$ 9,580	$ 7,430
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization	156	170
Credit for loan losses	(1,500)	(1,750)
Provision for real estate losses	0	705
Deferred income tax expense	3,434	5,355
Stock compensation expense	774	502
Amortization of deferred debenture offering costs	18	18
Amortization of premiums (accretion) of discounts and deferred loan fees, net	(138)	469
Net gain from sale of foreclosed real estate	(203)	(718)
Impairment writedowns on investment securities		691
Net decrease in loan fees receivable	133	464
Net decrease in accrued interest payable on borrowed funds	(810)	(6,170)
Net (decrease) increase in official checks outstanding	(2,454)	2,658
Net change in all other assets and liabilities	1,933	8,161
Net cash provided by operating activities	10,923	17,985
INVESTING ACTIVITIES
Maturities and calls of securities held to maturity	55,168	91,679
Purchases of securities held to maturity	(30,178)	(60,902)
Purchases of securities available for sale	(12)	(11)
Purchases of interest-earning time deposits with banks		(200)
Purchases of FRB and FHLB stock, net	(58)	(78)
(Originations) repayments of loans receivable, net	(30,279)	51,564
Proceeds from sales of foreclosed real estate	8,222	867
Purchases of premises and equipment, net	(26)	(280)
Net cash provided by investing activities	2,837	82,639
FINANCING ACTIVITIES
Net decrease in deposits	(4,409)	(69,444)
Net increase in mortgage escrow funds payable	2,066	2,505
Partial redemption of preferred stock		(6,062)
Cash dividends paid to common stockholders	(1,101)
Cash dividends paid to preferred stockholders		(1,228)
Proceeds from issuance of common stock upon exercise of stock options	44	42
Excess tax benefit from exercise of options and vesting of restricted stock	307	145
Net cash used in financing activities	(3,093)	(74,042)
Net increase in cash and cash equivalents	10,667	26,582
Cash and cash equivalents at beginning of period	24,700	60,395
Cash and cash equivalents at end of period	35,367	86,977
SUPPLEMENTAL DISCLOSURES
Cash paid for interest	11,325	20,681
Cash paid for income taxes	2,145	575
Net change in unrealized loss on securities available for sale	10
Loans transferred to foreclosed real estate		3,040
Loans originated to finance sales of foreclosed real estate		3,240
Preferred stock dividend requirements and amortization of related discount		$ 788

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Condensed Consolidated Balance Sheets (Parenthetical) (USD $) In Thousands, except Share data, unless otherwise specified	Jun. 30, 2014	Dec. 31, 2013
Statement Of Financial Position [Abstract]
Securities held to maturity, estimated fair value	$ 357,311	$ 378,507
Loans receivable, allowance for loan losses	26,598	27,833
Foreclosed real estate, valuation allowance	$ 390	$ 2,017
Common stock, par value	$ 1.00	$ 1.00
Common stock, shares authorized	62,000,000	62,000,000
Common stock, shares issued	22,025,390	21,918,623
Common stock, shares outstanding	22,025,390	21,918,623

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Earnings Per Common Share and Common Stock Dividend

6 Months Ended

Jun. 30, 2014

Earnings Per Share [Abstract]

Earnings Per Common Share and Common Stock Dividend

Note 10 – Earnings Per Common Share and Common Stock Dividend

Net earnings applicable to common stockholders and the weighted-average number of shares used for basic and diluted earnings per common share computations are summarized in the table that follows:

	Quarter Ended June 30,				Six-Months Ended June 30,
	2014		2013		2014		2013
Basic Earnings Per Common Share:
Net earnings available to common stockholders	$	5,738,000	$	3,213,000	$	9,580,000	$	6,642,000
Weighted-Average number of common shares outstanding		22,023,783		21,923,243		22,007,706		21,877,973
Basic Earnings Per Common Share	$	0.26	$	0.14	$	0.43	$	0.30
Diluted Earnings Per Common Share:
Net earnings applicable to common stockholders	$	5,738,000	$	3,213,000	$	9,580,000	$	6,642,000
Weighted-Average number of common shares outstanding:
Common shares outstanding		22,023,783		21,923,243		22,007,706		21,877,973
Potential dilutive shares resulting from exercise of warrants /options (1)		224,696		79,906		228,099		42,307
Total average number of common shares outstanding used for dilution		22,248,479		22,003,149		22,235,805		21,920,280
Diluted Earnings Per Common Share	$	0.26	$	0.14	$	0.43	$	0.30

(1) All outstanding options/warrants to purchase shares of our common stock were considered for the Diluted EPS computations and only those that were dilutive (as determined by using the treasury stock method prescribed by GAAP) were included in the computations above. For the quarter and six-month periods of 2014, outstanding options/warrants to purchase 223,280 shares of common stock were not dilutive because the exercise price of each was above the average market price of our common stock during these periods. For both the quarter and six-month periods of 2013, 235,630 of options/warrants to purchase common stock were not dilutive because the exercise price of each was above the average market price of our common stock during these periods.

On April 24, 2014, IBC’s Board of Directors approved the initiation of a quarterly cash dividend to common shareholders. The initial quarterly dividend declared of $0.05 per common share was paid on May 26, 2014 to shareholders of record on the close of business May 15, 2014.

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Document and Entity Information	6 Months Ended
	Jun. 30, 2014	Jul. 31, 2014
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2014
Document Fiscal Year Focus	2014
Document Fiscal Period Focus	Q2
Trading Symbol	IBCA
Entity Registrant Name	INTERVEST BANCSHARES CORP
Entity Central Index Key	0000927807
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		22,026,190

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Contingencies

6 Months Ended

Jun. 30, 2014

Commitments And Contingencies Disclosure [Abstract]

Contingencies

Note 11 – Contingencies

We are periodically a party to or otherwise involved in legal proceedings arising in the normal course of business, such as foreclosure proceedings. Based on review and consultation with our legal counsel, we do not believe that there is any pending or threatened proceeding against us, which, if determined adversely, would have a material effect on our business, results of operations, financial position or liquidity.

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Condensed Consolidated Statements of Earnings (Unaudited) (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
INTEREST AND DIVIDEND INCOME
Loans receivable	$ 14,886	$ 14,591	$ 29,201	$ 29,744
Securities	1,164	1,014	2,345	2,092
Other interest-earning assets	16	18	33	36
Total interest and dividend income	16,066	15,623	31,579	31,872
INTEREST EXPENSE
Deposits	4,808	6,612	9,679	13,418
Subordinated debentures - capital securities	387	436	786	875
Total interest expense	5,195	7,048	10,465	14,293
Net interest and dividend income	10,871	8,575	21,114	17,579
Credit for loan losses	(1,000)	(750)	(1,500)	(1,750)
Net interest and dividend income after credit for loan losses	11,871	9,325	22,614	19,329
NONINTEREST INCOME
Income from the early repayment of mortgage loans	2,021	623	2,529	1,290
Income from mortgage lending activities	313	286	592	657
Customer service fees	127	118	206	189
Impairment writedowns on investment securities		(325)		(691)
Total noninterest income	2,461	702	3,327	1,445
NONINTEREST EXPENSES
Salaries and employee benefits	1,900	1,861	4,142	3,811
Stock compensation for employees and directors	279	248	774	502
Occupancy and equipment, net	504	562	1,087	1,078
Data processing	102	83	210	174
Professional fees and services	323	384	660	768
Stationery, printing, supplies, postage and delivery	81	85	161	146
FDIC insurance	276	306	525	811
General insurance	150	150	297	302
Director and committee fees	141	83	245	187
Advertising and promotion	3	5	26	10
Real estate activities expense (income), net	298	(346)	499	(1,332)
Provision for real estate losses	0	76	0	705
All other	167	187	371	303
Total noninterest expenses	4,224	3,684	8,997	7,465
Earnings before provision for income taxes	10,108	6,343	16,944	13,309
Provision for income taxes	4,370	2,804	7,364	5,879
Net earnings	5,738	3,539	9,580	7,430
Preferred stock dividend requirements and discount amortization		(326)		(788)
Net earnings available to common stockholders	$ 5,738	$ 3,213	$ 9,580	$ 6,642
Basic earnings per common share	$ 0.26	$ 0.14	$ 0.43	$ 0.30
Diluted earnings per common share	$ 0.26	$ 0.14	$ 0.43	$ 0.30
Cash dividends per common share	$ 0.05		$ 0.05

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Foreclosed Real Estate and Valuation Allowance for Real Estate Losses

6 Months Ended

Jun. 30, 2014

Banking And Thrift [Abstract]

Foreclosed Real Estate and Valuation Allowance for Real Estate Losses

Note 5 – Foreclosed Real Estate and Valuation Allowance for Real Estate Losses

Real estate acquired through foreclosure by property type is summarized as follows:

	At June 30, 2014				At December 31, 2013
($ in thousands)	# of Properties		Amount (1)		# of Properties		Amount (1)
Commercial real estate		1	$	2,650		2	$	3,984
Multifamily		—		—		1		6,685
Real estate acquired through foreclosure		1	$	2,650		3	$	10,669

(1) Reported net of any associated valuation allowance.

Activity in the valuation allowance for real estate losses is summarized as follows:

	Quarter Ended June 30,					Six-Months Ended June 30,
($ in thousands)	2014			2013		2014			2013
Valuation allowance at beginning of period	$	1,193		$	5,968	$	2,017		$	5,339
Chargeoffs		(803	)		—		(1,627	)		—
Provision for real estate losses		—			76		—			705
Valuation allowance at end of period	$	390		$	6,044	$	390		$	6,044

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Allowance for Loan Losses

6 Months Ended

Jun. 30, 2014

Text Block [Abstract]

Allowance for Loan Losses

Note 4 – Allowance for Loan Losses

Activity in the allowance for loan losses by loan type for the periods indicated is as follows:

($ in thousands)	Commercial Real Estate			Multifamily			One to Four Family			Land			All Other		Total
Quarter Ended June 30, 2014
Balance at beginning of period	$	18,813		$	5,112		$	2,632		$	853		$	8	$	27,418
Loan chargeoffs		—			—			—			—			—		—
Loan recoveries		180			—			—			—			—		180
(Credit) provision for loan losses		(612	)		(148	)		(274	)		34			—		(1,000	)
Balance at end of period	$	18,381		$	4,964		$	2,358		$	887		$	8	$	26,598
Six-Months Ended June 30, 2014
Balance at beginning of period	$	18,403		$	5,097		$	3,017		$	1,308		$	8	$	27,833
Loan chargeoffs		—			—			—			—			—		—
Loan recoveries		251			14			—			—			—		265
(Credit) provision for loan losses		(273	)		(147	)		(659	)		(421	)		—		(1,500	)
Balance at end of period	$	18,381		$	4,964		$	2,358		$	887		$	8	$	26,598

($ in thousands)	Commercial Real Estate			Multifamily			One to Four Family			Land			All Other		Total
Quarter Ended June 30, 2013
Balance at beginning of period	$	18,644		$	5,617		$	2,971		$	970		$	8	$	28,210
Loan chargeoffs		(1,817	)		(6	)		—			—			—		(1,823	)
Loan recoveries		818			—			—			—			—		818
(Credit) provision for loan losses		(49	)		(513	)		(176	)		(14	)		2		(750	)
Balance at end of period	$	17,596		$	5,098		$	2,795		$	956		$	10	$	26,455
Six-Months Ended June 30, 2013
Balance at beginning of period	$	19,051		$	6,881		$	1,120		$	1,043		$	8	$	28,103
Loan chargeoffs		(1,932	)		(6	)		—			—			—		(1,938	)
Loan recoveries (1)		880			677			—			483			—		2,040
Credit) provision for loan losses		(403	)		(2,454	)		1,675			(570	)		2		(1,750	)
Balance at end of period	$	17,596		$	5,098		$	2,795		$	956		$	10	$	26,455

(1) In the first and second quarters of 2013, INB entered into settlement agreements with respect to certain litigation INB had pursued in connection with foreclosure actions it had commenced in 2010 on several of its loans. INB commenced the actions to collect, in one case, insurance proceeds, which it contended had been improperly paid to various third parties, and in another case, damages due to alleged legal malpractice when the loan was originated. As a result of these settlements, INB received net proceeds totaling $2.7 million and $0.1 million in the first and second quarter of 2013, respectively, which was recorded as $1.1 million of recoveries of prior loan charge offs and $1.6 million of recoveries of prior real estate expenses associated with two loans and underlying collateral property.

The following table sets forth the balances of our loans receivable by segment and impairment evaluation and the allowance for loan losses associated with such loans at June 30, 2014.

($ in thousands)	Commercial Real Estate		Multifamily		One to Four Family		Land		All Other		Total
Loans:
Individually evaluated for impairment	$	53,156	$	3,110	$	—	$	1,555	$	—	$	57,821
Collectively evaluated for impairment		834,887		202,148		59,211		6,826		1,201		1,104,273
Total loans	$	888,043	$	205,258	$	59,211	$	8,381	$	1,201	$	1,162,094
Allowance for loan losses:
Individually evaluated for impairment	$	4,784	$	591	$	—	$	161	$	—	$	5,536
Collectively evaluated for impairment		13,597		4,373		2,358		726		8		21,062
Total allowance for loan losses	$	18,381	$	4,964	$	2,358	$	887	$	8	$	26,598

The following table sets forth the balances of our loans receivable by segment and impairment evaluation and the allowance for loan losses associated with such loans at December 31, 2013.

($ in thousands)	Commercial Real Estate		Multifamily		One to Four Family		Land		All Other		Total
Loans:
Individually evaluated for impairment	$	52,407	$	3,128	$	—	$	1,625	$	—	$	57,160
Collectively evaluated for impairment		786,359		207,142		72,064		7,553		1,272		1,074,390
Total loans	$	838,766	$	210,270	$	72,064	$	9,178	$	1,272	$	1,131,550
Allowance for loan losses:
Individually evaluated for impairment	$	4,999	$	594	$	—	$	500	$	—	$	6,093
Collectively evaluated for impairment		13,404		4,503		3,017		808		8		21,740
Total allowance for loan losses	$	18,403	$	5,097	$	3,017	$	1,308	$	8	$	27,833

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Summary of Significant Accounting Policies (Policies)

6 Months Ended

Jun. 30, 2014

Accounting Policies [Abstract]

General

General

Intervest Bancshares Corporation (“IBC”) is the parent company of Intervest National Bank (“INB”). References in this report to “we,” “us” and “our” refer to these entities on a consolidated basis, unless otherwise specified. For a description of our business, see note 1 to the financial statements in our 2013 Annual Report on Form 10-K (“2013 10-K”). Our accounting and reporting policies conform to U.S. generally accepted accounting principles (GAAP) and general practices within the banking industry and are described in note 1 to the financial statements in our 2013 10-K, as updated by the information in this Form 10-Q.

Principles of Consolidation and Basis of Presentation

Principles of Consolidation and Basis of Presentation

The condensed consolidated financial statements (“financial statements”) in this report have not been audited except for information derived from our audited 2013 consolidated financial statements and notes thereto and should be read in conjunction with our 2013 10-K. Certain information and note disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted in this report pursuant to the rules and regulations of the Securities and Exchange Commission.

Use of Estimates

Use of Estimates

In preparing our financial statements, we are required to make estimates and assumptions that affect the reported amounts of assets, liabilities and disclosure of contingent liabilities as of the date of the financial statements, and revenues and expenses during the reporting periods. Actual results could differ from those estimates. Estimates that are particularly susceptible to significant change currently relate to the determination of our allowance for loan losses, valuation allowance for real estate losses, other than temporary impairment assessments of our security investments and the need for and amount of a valuation allowance for our deferred tax asset. These estimates involve a higher degree of complexity and subjectivity and may require assumptions about highly uncertain matters. Current market conditions increase the risk and complexity of the judgments in these estimates. In our opinion, all material adjustments necessary for a fair presentation of our financial condition and results of operations for the interim periods presented in this report have been made. These adjustments are of a normal recurring nature. All significant intercompany balances and transactions have been eliminated in consolidation. Our results of operations for the interim periods are not necessarily indicative of results that may be expected for the entire year or any other interim period.

Stock-Based Compensation

Stock-Based Compensation

We recognize the cost of our employee and director services received in exchange for awards of our equity instruments (which are in the form of restricted stock, stock options and cash-settled stock appreciation rights or “SARs”) that vest over time based on the grant-date fair value of the awards. The fair value of restricted stock grants is based on the closing market value of our common stock as reported on the Nasdaq Stock Market on the grant date. The fair value of options and SARs is estimated using the Black-Scholes option-pricing model based on various inputs and assumptions that are described in note 9. Compensation cost, or the grant-date fair value of the awards, related to equity awards is recognized on a straight-line basis over the requisite service period, which is normally the vesting period of the grants.

For SARs only, fair value is re-measured at the end of each reporting period and amortized as compensation cost over the remaining requisite service period less amounts previously recognized. The SARs represent liability-classified awards that are remeasured to reflect their fair value at each reporting period. After the requisite service period is completed, the SAR’s fair value continues to be remeasured each reporting period until settlement and any increase/decrease in the fair value is immediately recognized as an increase/decrease to our reported stock compensation expense. Upon cash-settlement of a SAR, stock compensation expense is trued-up to equal the SAR’s intrinsic cash value on the date of settlement.

Stock-based compensation associated with equity awards is recorded as stock compensation expense in the statement of earnings and a corresponding increase to stockholders’ equity as additional paid-in capital for amounts related to restricted stock and stock options, and corresponding increase to accrued stock compensation payable for amounts related to the SARs, which is reported as part of our “other liabilities” in our balance sheet.

For any excess income tax benefit associated with the vesting of restricted common stock awards and the exercise of stock option awards (calculated as the difference between the fair market value of the stock at the vesting date versus the grant date in the case of stock awards and the difference between the fair market value of the stock at the exercise date versus the exercise price per share in the case of options, multiplied by our effective income tax rate) is recorded as decrease to our income taxes payable and an increase in stockholders’ equity as paid-in capital.

Recent Accounting Standards Update

Recent Accounting Standards Update

In February 2013, the FASB Issued ASU No. 2013-04, “Obligations Resulting from Joint and Several Liability Arrangements for Which the Total Amount of the Obligation Is Fixed at the Reporting Date”. ASU 2013-04 provides guidance for the recognition, measurement, and disclosure of obligations resulting from joint and several liability arrangements for obligations within the scope of this ASU. We adopted this ASU on January 1, 2014 and it had no impact on our financial statements.

In July 2013, the FASB issued ASU 2013-11, “Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists,” which among other things, requires an unrecognized tax benefit, or a portion of an unrecognized tax benefit, to be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, except as denoted within the ASU. The amendments in this ASU are effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. We adopted this ASU on January 1, 2014 and it had no impact on our financial statements.

In January 2014, the FASB issued ASU 2014-04, “Receivables-Troubled Debt Restructurings by Creditors (Subtopic 310-40): Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure”, which is intended to clarify when a creditor should be considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan such that the loan should be derecognized and the real estate recognized. These amendments clarify that an in substance repossession or foreclosure occurs, and a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan, upon either: (a) the creditor obtaining legal title to the residential real estate property upon completion of a foreclosure; or (b) the borrower conveying all interest in the residential real estate property to the creditor to satisfy that loan through completion of a deed in lieu of foreclosure or through a similar legal agreement. Additional disclosures are required. The amendments are effective for us beginning January 1, 2015.

In June 2014, FASB issued ASU 2014-11, “Transfers and Servicing – Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures.” ASU 2014-11 requires, among other things, two accounting changes. First, the amendments in this update change the accounting for repurchase-to-maturity transactions to secured borrowing accounting. Second, for repurchase financing arrangements, the amendments require separate accounting for a transfer of a financial asset executed contemporaneously with a repurchase agreement with the same counterparty, which will result in secured borrowing accounting for the repurchase agreement. ASU 2014-11 is effective for the first interim or annual period beginning after December 15, 2014. The adoption of this guidance is not expected to have any impact on our financial statements.

In June 2014, FASB issued ASU 2014-12, “Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period.” ASU 2014-12 requires, among other things, that a performance target that affects vesting and could be achieved after the requisite service period be treated as a performance condition. As such, the performance target should not be reflected in estimating the grant-date fair value of the award. ASU 2014-12 is effective for annual reporting periods beginning after December 15, 2015, with early adoption permitted. The adoption of this guidance is not expected to have any impact on our financial statements.

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Regulatory Matters and Regulatory Capital

6 Months Ended

Jun. 30, 2014

Banking And Thrift [Abstract]

Regulatory Matters and Regulatory Capital

Note 12 – Regulatory Matters and Regulatory Capital

On March 7, 2014, IBC received notification from the Federal Reserve Bank of New York (the “FRB”) that the written agreement between IBC and the FRB that was in effect since January 14, 2011 was terminated. As a result, IBC is no longer subject to any regulatory agreement or related restrictions that were described in our 2013 10-K.

At June 30, 2014, IBC’s consolidated Tier 1 capital and total capital ratios were 22.19% and 20.93%, respectively, and its leverage capital ratio was 16.48. At June 30, 2014, INB’s leverage capital ratio, Tier 1 capital and total capital ratios were 15.92%, 20.18% and 21.45%, respectively. At June 30, 2014, we believe that IBC and INB met all regulatory capital adequacy requirements to which they were subject. As of the date of filing of this report, we are not aware of any conditions or events that would have changed the status of such compliance with those requirements at June 30, 2014.

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Subordinated Debentures - Capital Securities

6 Months Ended

Jun. 30, 2014

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Subordinated Debentures - Capital Securities

Note 8 – Subordinated Debentures – Capital Securities

Capital Securities (commonly referred to as trust preferred securities) outstanding are summarized as follows:

	At June 30, 2014							At December 31, 2013
($ in thousands)	Principal		Accrued Interest Payable		Interest Rate			Principal		Accrued Interest Payable		Interest Rate
Capital Securities II – debentures due September 17, 2033	$	15,464	$	18		3.18	%	$	15,464	$	275		3.19	%
Capital Securities III – debentures due March 17, 2034		15,464		18		3.02	%		15,464		261		3.03	%
Capital Securities IV – debentures due September 20, 2034		15,464		14		2.63	%		15,464		223		2.65	%
Capital Securities V – debentures due December 15, 2036		10,310		8		1.88	%		10,310		109		1.89	%
	$	56,702	$	58				$	56,702	$	868

The securities are obligations of IBC’s wholly owned statutory business trusts, Intervest Statutory Trust II, III, IV and V, respectively. See note 9 to the financial statements included in our 2013 Annual Report on Form 10-K for additional discussion of the above securities.

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Common Stock Warrant and Equity Incentive Plans - Summary of the Activity in IBC's Outstanding Common Stock Warrant and Options (Detail) (USD $) In Thousands, except Share data, unless otherwise specified	6 Months Ended
	Jun. 30, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Beginning Outstanding	1,041,445
Forfeited/expired	(1,400)
Options exercised	(14,767)
Ending Outstanding	1,025,278
Vested and exercisable	99.00%
Wtd-avg contractual remaining term (in years)	4 years 7 months 6 days
Intrinsic value at June 30, 2014	$ 2,111
Wtd-Avg Exercise Price, Beginning Outstanding	$ 6.64
Wtd-Avg Exercise Price, Forfeited/expired	$ 7.14
Wtd-Avg Exercise Price, Options exercised	$ 3.17
Wtd-Avg Exercise Price, Ending Outstanding	$ 6.69
Exercise Price Per Warrant/Option $5.42 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise Price Per Warrant/Option	$ 5.42
Beginning Outstanding	691,882
Forfeited/expired
Options exercised
Ending Outstanding	691,882
Expiration date	Dec. 23, 2018
Vested and exercisable	100.00%
Wtd-avg contractual remaining term (in years)	4 years 6 months
Intrinsic value at June 30, 2014	1,605
Exercise Price Per Warrant/Option $17.10 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise Price Per Warrant/Option	$ 17.10
Beginning Outstanding	110,640
Forfeited/expired	(300)
Options exercised
Ending Outstanding	110,340
Expiration date	Dec. 13, 2017
Vested and exercisable	100.00%
Wtd-avg contractual remaining term (in years)	3 years 6 months
Intrinsic value at June 30, 2014
Exercise Price Per Warrant/Option $7.50 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise Price Per Warrant/Option	$ 7.50
Beginning Outstanding	113,990
Forfeited/expired	(300)
Options exercised	(750)
Ending Outstanding	112,940
Expiration date	Dec. 11, 2018
Vested and exercisable	100.00%
Wtd-avg contractual remaining term (in years)	4 years 6 months
Intrinsic value at June 30, 2014	27
Exercise Price Per Warrant/Option $4.02 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise Price Per Warrant/Option	$ 4.02
Beginning Outstanding	57,400
Forfeited/expired	(300)
Options exercised	(1,800)
Ending Outstanding	55,300
Expiration date	Dec. 10, 2019
Vested and exercisable	100.00%
Wtd-avg contractual remaining term (in years)	5 years 6 months
Intrinsic value at June 30, 2014	206
Exercise Price Per Warrant/Option $3.00 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise Price Per Warrant/Option	$ 3.00
Beginning Outstanding	32,400
Forfeited/expired	(300)
Options exercised	(6,350)
Ending Outstanding	25,750
Expiration date	Dec. 09, 2020
Vested and exercisable	100.00%
Wtd-avg contractual remaining term (in years)	6 years 6 months
Intrinsic value at June 30, 2014	122
Exercise Price Per Warrant/Option $2.55 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise Price Per Warrant/Option	$ 2.55
Beginning Outstanding	35,133
Forfeited/expired	(200)
Options exercised	(5,867)
Ending Outstanding	29,066
Expiration date	Dec. 08, 2021
Vested and exercisable	67.00%
Wtd-avg contractual remaining term (in years)	7 years 6 months
Intrinsic value at June 30, 2014	$ 151

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Deposits

6 Months Ended

Jun. 30, 2014

Banking And Thrift [Abstract]

Deposits

Note 6 – Deposits

Scheduled maturities of certificates of deposit accounts (CDs) are as follows:

	At June 30, 2014					At December 31, 2013
($ in thousands)	Amount		Wtd-Avg Stated Rate			Amount		Wtd-Avg Stated Rate
Within one year	$	318,703		1.87	%	$	307,122		1.97	%
Over one to two years		111,559		1.54			167,323		1.92
Over two to three years		231,691		1.94			170,956		1.92
Over three to four years		80,129		2.34			106,700		2.50
Over four years		154,231		2.06			129,678		2.06
	$	896,313		1.92	%	$	881,779		2.03	%

CDs of $100,000 or more totaled $501 million at June 30, 2014 and $473 million at December 31, 2013 and included brokered CDs of $87 million and $91 million, respectively. At June 30, 2014, all CDs of $100,000 or more (inclusive of brokered CDs) by remaining maturity were as follows: $146 million due within one year; $52 million due over one to two years; $149 million due over two to three years; $52 million due over three to four years; and $102 million due thereafter. At June 30, 2014, brokered CDs had a weighted-average rate of 2.93% and their remaining maturities were as follows: $19 million due within one year; $8 million due over one to two years; $14 million due over two to three years; $25 million due over three to four years and $21 million due over four years.

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Lines of Credit

6 Months Ended

Jun. 30, 2014

Debt Disclosure [Abstract]

Lines of Credit

Note 7 – Lines of Credit

At June 30, 2014, INB had $41 million of unsecured credit lines that were cancelable by the lender at any time. As a member of the Federal Home Loan Bank of New York (FHLB) and the Federal Reserve Bank of New York (FRB), INB can borrow from these institutions on a secured basis. At June 30, 2014, INB had available collateral consisting of investment securities and certain loans that could be pledged to support additional total borrowings of approximately $380 million from the FHLB and FRB, if needed. There were no borrowings during the reporting periods in this report.

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Common Stock Warrant and Equity Incentive Plans

6 Months Ended

Jun. 30, 2014

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Common Stock Warrant and Equity Incentive Plans

Note 9 – Common Stock Warrant and Equity Incentive Plans

IBC has shareholder-approved equity incentive plans in place under which stock options, restricted stock and other forms of incentive compensation may be awarded from time to time to officers, employees and directors of IBC and its subsidiary. The maximum number of shares of common stock that may be awarded is 2,250,000. At June 30, 2014, 620,403 shares of common stock were available for award.

Stock Options and Stock Warrant

There were no awards of options during the reporting periods in this report.

A summary of outstanding common stock options and warrant and related information follows:

	Exercise Price Per Warrant/Option																					Wtd-Avg. Exercise Price
($ in thousands, except per share amounts)	$5.42 (1)			$17.10			$7.50			$4.02			$3.00			$2.55			Total
Outstanding at December 31, 2013		691,882			110,640			113,990			57,400			32,400			35,133			1,041,445		$	6.64
Forfeited/expired (2)		—			(300	)		(300	)		(300	)		(300	)		(200	)		(1,400	)	$	7.14
Options exercised		—			—			(750	)		(1,800	)		(6,350	)		(5,867	)		(14,767	)	$	3.17
Outstanding at June 30, 2014		691,882			110,340			112,940			55,300			25,750			29,066			1,025,278		$	6.69
Expiration date		12/23/18			12/13/17			12/11/18			12/10/19			12/09/20			12/08/21
Vested and exercisable (3)		100	%		100	%		100	%		100	%		100	%		67	%		99	%
Wtd-avg contractual remaining term (in years)		4.5			3.5			4.5			5.5			6.5			7.5			4.6
Intrinsic value at June 30, 2014 (4)	$	1,605		$	—		$	27		$	206		$	122		$	151		$	2,111

(1) The U.S. Department of the Treasury, in connection with IBC’s prior participation in the Capital Purchase Program, owns a warrant to purchase 691,882 shares of IBC’s common stock at an exercise price of $5.42 per share.

(2) Represent options forfeited or expired unexercised.

(3) The $2.55 options further vest and become 100% exercisable on December 8, 2014. Full vesting may occur earlier upon the occurrence of certain events as defined in the option agreement.

(4) Intrinsic value was calculated using the closing price of the common stock on June 30, 2014 of $7.74.

Restricted Stock

A summary of selected information regarding awards of restricted common stock during the periods in this report follows:

($ in thousands, except per share amounts)
Grant date of award		1/23/14		1/24/13
Total restricted shares of stock awarded (1)		92,000		330,700
Grant date per share fair value (2)	$	7.65	$	4.50
Total estimated fair value of award	$	703,800	$	1,488,150
Awards scheduled to vest as follows:
January 2014		—		49,566
January 2015		30,664		170,888
January 2016		30,664		110,246
January 2017		30,672		—
		92,000		330,700

(1) For 2014, awards were as follows: a total of 12,000 shares to five executive officers and a total of 80,000 shares to eight non-employee directors (vesting in three equal installments, with one third on each of the next three anniversary dates of the grant).

For 2013, awards were as follows: a total of 182,000 shares to five executive officers (vesting in two installments, with two thirds vesting on the second anniversary of the grant and the remaining one third on the third anniversary of the grant); a total of 80,000 shares to eight non-employee directors and 68,700 shares to other officers and employees (vesting in three equal installments, with one third on each of the next three anniversary dates of the grant).

(2) Fair value of each award was based on the closing market price of IBC’s common stock on the grant date.

A summary of outstanding restricted common stock and related information follows:

															Wtd-Avg. Price Per Share
	Price Per Share
	$2.90			$4.50			$7.21			$7.65		Total
Outstanding at December 31, 2013		158,317			279,500			135,500			—		573,317		$	4.70
Shares vested and no longer restricted		(101,035	)		(47,664	)		(75,417	)		—		(224,116	)	$	4.69
Shares granted		—			—			—			92,000		92,000		$	7.65
Outstanding at June 30, 2014 (1) (2)		57,282			231,836			60,083			92,000		441,201		$	5.32

(1) All outstanding shares of restricted common stock at June 30, 2014 were unvested and subject to forfeiture.

Shares issued at $2.90 vest: 57,282 on January 19, 2015.

Shares issued at $4.50 vest: 138,664 on January 24, 2015; 93,172 on January 24, 2016.

Shares issued at $7.21 vest: 14,584 on January 19, 2015; 30,333 on January 24, 2015; 15,166 on January 24, 2016.

Shares issued at $7.65 vest: 30,664 on January 23, 2015; 30,664 on January 23, 2016; 30,672 on January 23, 2017.

(2) Vesting is subject to the grantee’s continued employment with us or, in the case of non-employee directors, the grantee’s continued service as our director on the vesting dates. All of the awards are subject to accelerated vesting upon the death or disability of the grantee or upon a change in control of IBC, as defined in the restricted stock agreements. The record holder of IBC’s restricted shares of common stock possesses all the rights of a holder of our common stock, including the right to receive dividends on the shares when declared and to vote the restricted shares. The restricted shares may not be sold, transferred, pledged, assigned, encumbered, or otherwise alienated or hypothecated until they become fully vested and transferable in accordance with the agreements.

Stock Appreciations Rights

On January 23, 2014, Cash-Settled Stock Appreciation Rights (or “SARs”) were awarded to five executive officers in the total amount of 78,000 shares. The SARs have an exercise price of $7.65 per share, a contractual term of 5 years from the date of grant, upon which they expire, and they vest in three equal installments on the first, second and third anniversaries of the grant date. The SARs are exercisable for thirty days after the holder terminates service to our Company, unless such termination is due to the holder’s death or disability, in which case the SARs are exercisable for one year after termination. The SARs give the executive the right to receive upon exercise, an amount payable in cash equal to the number of shares subject to the SAR that is being exercised multiplied by the excess of (a) the fair market value of a share of our common stock on the date the SAR is exercised, over (b) the exercise price specified in the SAR agreement, which in the case of this award is $7.65. The estimated fair value of each SAR on the date of grant was $2.28, or a total estimated fair value of $178,000 as calculated using the Black-Scholes option pricing model with the following assumptions used as inputs into the model: expected dividend yield of 1.75%; expected stock volatility of 45%; risk-free interest rate of 0.98% and an expected term of 3.5 years.

Stock Compensation Expense and Excess Tax Benefit

Stock-based compensation expense related to all equity awards totaled $279,000 and $248,000 for the second quarter of 2014 and 2013, respectively, and $774,000 and $502,000 for the six-months ended June 30, 2014 and 2013, respectively. The expense for the 2014 second quarter and six-month period included $11,000 and $26,000, respectively, attributable to outstanding cash-settled SARs (all of which were issued in January 2014). At June 30, 2014, pre-tax compensation expense related to all non-vested equity awards not yet recognized totaled $2.1 million and such amount is expected to be recognized in the future over a weighted-average period of approximately 1.9 years.

Our income taxes payable was reduced by the excess income tax benefit arising from the vesting of restricted common stock awards and the exercise of stock option awards during the reporting periods in this report based on certain criteria as described in note 1 to the financial statements. The tax benefit amounted to $15,000 for the second quarter of 2014, compared to none in the second quarter of 2013, and $307,000 and $145,000 for the first six-months of 2014 and 2013, respectively.

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Common Stock Warrant and Equity Incentive Plans - Summary of Outstanding Restricted Common Stock and Related Information (Detail) (Restricted Common Stock [Member], USD $)	6 Months Ended
	Jun. 30, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Beginning Outstanding	573,317
Shares vested and no longer restricted	(224,116)
Shares granted	92,000
Ending Outstanding	441,201
Wtd-Avg price outstanding, Beginning Balance	$ 4.70
Wtd-Avg price , Shares vested and no longer restricted	$ 4.69
Wtd-Avg price , Shares granted	$ 7.65
Wtd-Avg price outstanding, Ending Balance	$ 5.32
Price Per Share $2.90 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Price Per Share	$ 2.90
Beginning Outstanding	158,317
Shares vested and no longer restricted	(101,035)
Shares granted
Ending Outstanding	57,282
Price Per Share $4.50 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Price Per Share	$ 4.50
Beginning Outstanding	279,500
Shares vested and no longer restricted	(47,664)
Shares granted
Ending Outstanding	231,836
Price Per Share $7.21 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Price Per Share	$ 7.21
Beginning Outstanding	135,500
Shares vested and no longer restricted	(75,417)
Shares granted
Ending Outstanding	60,083
Price Per Share $7.65 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Price Per Share	$ 7.65
Beginning Outstanding
Shares vested and no longer restricted
Shares granted	92,000
Ending Outstanding	92,000

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Earnings Per Common Share and Common Stock Dividend - Summary of Basic and Diluted Earnings Per Common Share (Detail) (USD $) In Thousands, except Share data, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Basic Earnings Per Common Share:
Net earnings available to common stockholders	$ 5,738	$ 3,213	$ 9,580	$ 6,642
Weighted-Average number of common shares outstanding	22,023,783	21,923,243	22,007,706	21,877,973
Basic earnings per common share	$ 0.26	$ 0.14	$ 0.43	$ 0.30
Diluted Earnings Per Common Share:
Net earnings applicable to common stockholders	$ 5,738	$ 3,213	$ 9,580	$ 6,642
Weighted-Average number of common shares outstanding:
Common shares outstanding	22,023,783	21,923,243	22,007,706	21,877,973
Potential dilutive shares resulting from exercise of warrants /options	224,696	79,906	228,099	42,307
Total average number of common shares outstanding used for dilution	22,248,479	22,003,149	22,235,805	21,920,280
Diluted earnings per common share	$ 0.26	$ 0.14	$ 0.43	$ 0.30

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Common Stock Warrant and Equity Incentive Plans - Summary of Selected Information Regarding Awards of Restricted Common Stock Awards Made Under Plans (Parenthetical) (Detail)	6 Months Ended	12 Months Ended
	Jun. 30, 2014 Executives	Dec. 31, 2013
Restricted Common Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares Awarded	92,000
Executive Officers [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of participants		5
Number of installments		2
Restricted stock awards vesting in second anniversary of the grant		66.67%
Restricted stock awards vesting in third anniversary of the grant		33.33%
Executive Officers [Member] | Restricted Common Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares Awarded	12,000	182,000
Number of participants	5
Non-employee Directors [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of participants		8
Restricted stock awards vesting in first anniversary of the grant		33.33%
Restricted stock awards vesting in second anniversary of the grant		33.33%
Restricted stock awards vesting in third anniversary of the grant		33.33%
Non-employee Directors [Member] | Restricted Common Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares Awarded	80,000	80,000
Number of participants	8
Other Officers and Employees [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of installments	3	3
Restricted stock awards vesting in first anniversary of the grant	33.33%	33.33%
Restricted stock awards vesting in second anniversary of the grant	33.33%	33.33%
Restricted stock awards vesting in third anniversary of the grant	33.33%	33.33%
Other Officers and Employees [Member] | Restricted Common Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares Awarded		68,700

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Securities Held to Maturity and Available for Sale - Carrying Value (Amortized Cost) and Estimated Fair Value of Securities Held to Maturity (Detail) (USD $) In Thousands, unless otherwise specified	6 Months Ended	12 Months Ended
	Jun. 30, 2014 Security	Dec. 31, 2013 Security
Schedule of Held-to-maturity Securities [Line Items]
Number of Securities	223	219
Amortized Cost	$ 358,338	$ 383,937
Gross Unrealized Gains	1,095	540
Gross Unrealized Losses	2,122	5,970
Estimated Fair Value	357,311	378,507
Wtd-Avg Yield	1.20%	1.11%
Wtd-Avg Expected Life	3 years	3 years 3 months 18 days
Wtd-Avg Remaining Maturity	5 years 9 months 18 days	6 years
U.S. government agencies [Member]
Schedule of Held-to-maturity Securities [Line Items]
Number of Securities	155	161
Amortized Cost	277,752	305,906
Gross Unrealized Gains	367	410
Gross Unrealized Losses	1,915	4,947
Estimated Fair Value	276,204	301,369
Wtd-Avg Yield	1.01%	0.94%
Wtd-Avg Expected Life	2 years 8 months 12 days	3 years
Wtd-Avg Remaining Maturity	3 years 7 months 6 days	3 years 9 months 18 days
Residential mortgage-backed [Member]
Schedule of Held-to-maturity Securities [Line Items]
Number of Securities	67	57
Amortized Cost	80,055	77,500
Gross Unrealized Gains	727	130
Gross Unrealized Losses	207	1,017
Estimated Fair Value	80,575	76,613
Wtd-Avg Yield	1.86%	1.79%
Wtd-Avg Expected Life	4 years 4 months 24 days	4 years 3 months 18 days
Wtd-Avg Remaining Maturity	13 years 7 months 6 days	14 years 8 months 12 days
State and municipal [Member]
Schedule of Held-to-maturity Securities [Line Items]
Number of Securities	1	1
Amortized Cost	531	531
Gross Unrealized Gains	1
Gross Unrealized Losses		6
Estimated Fair Value	$ 532	$ 525
Wtd-Avg Yield	1.25%	1.25%
Wtd-Avg Expected Life	2 years 8 months 12 days	3 years 2 months 12 days
Wtd-Avg Remaining Maturity	2 years 9 months 18 days	3 years 3 months 18 days

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Allowance for Loan Losses - Allowance for Loan Losses by Loan Type (Parenthetical) (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Jun. 30, 2013	Mar. 31, 2013 SecurityLoan
Receivables [Abstract]
Net Proceeds of loans	$ 0.1	$ 2.7
Recovery of prior loan charge offs		1.1
Recovery of prior real estate expenses		$ 1.6
Number of loans associated with recoveries of prior real estate expenses		2

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Fair Value Measurements

6 Months Ended

Jun. 30, 2014

Fair Value Disclosures [Abstract]

Fair Value Measurements

Note 14 – Fair Value Measurements

We use fair value measurements to record fair value adjustments to certain of our assets and to determine our fair value disclosures. In accordance with GAAP, we group our assets and liabilities measured at fair value into three levels (Level 1, 2 and 3), based on the markets in which they are traded and the reliability of the assumptions and inputs that are used to determine their fair value. Level 1 has the highest level of reliability because fair value is based on actively traded markets. See note 20 to the financial statements included in our 2013 10-K for a further discussion of the three valuation levels.

At June 30, 2014 and December 31, 2013, we had no liabilities recorded at fair value and approximately $1.0 million of assets (comprised of securities available for sale) recorded at fair value (Level 1) on a recurring basis.

The following tables provide information regarding our assets measured at fair value on a nonrecurring basis.

	Outstanding Carrying Value
	At June 30, 2014		At December 31, 2013
($ in thousands)	Level 3		Level 3
Impaired loans (1) :
Commercial real estate	$	53,156	$	52,407
Multifamily		3,110		3,128
Land		1,555		1,625
Total impaired loans		57,821		57,160
Foreclosed real estate		2,650		10,669

(1) Outstanding carrying value for impaired loans excludes a specific valuation allowance. See note 4 to the financial statements in this report.

	Accumulated Losses on Outstanding Balance as of:				Total Losses (Gains) (1)
					Quarter Ended June 30,						Six-Months Ended June 30,
	June 30, 2014		December 31, 2013
($ in thousands)					2014			2013			2014			2013
Impaired loans:
Commercial real estate	$	7,867	$	11,522	$	(441	)	$	434		$	(466	)	$	823
Multifamily		592		594		(27	)		(534	)		(17	)		(957	)
Land		161		500		114			(7	)		(339	)		(21	)
Total impaired loans		8,620		12,616		(354	)		(107	)		(822	)		(155	)
Impaired securities		—		—		—			325			—			691
Foreclosed real estate		390		2,017		(131	)		(642	)		(203	)		(13	)

(1) Represents total losses or (gains) recognized on all assets measured at fair value on a nonrecurring basis during the period indicated. The losses or (gains) for impaired loans represent the change (before chargeoffs and recoveries) during the period in the corresponding specific valuation allowance, while the losses (gains) for foreclosed real estate represent writedowns in carrying values subsequent to foreclosure (recorded as provisions for real estate losses) adjusted for any recoveries of prior write downs and (gains) or losses from the transfer/sale of properties during the period. The losses on securities represent the total of other than temporary impairment charges, which are recorded as component of noninterest income.

The following table presents information regarding the change in assets measured at fair value on a nonrecurring basis for the three- and six-months periods ended June 30, 2014.

($ in thousands)	Impaired Loans			Foreclosed Real Estate
Balance at December 31, 2013	$	57,160		$	10,669
Net new impaired loans		3,466			—
Principal repayments/sales		(762	)		(1,406	)
Gain from sales		—			72
Balance at March 31, 2014		59,864			9,335
Principal repayments/sales		(2,043	)		(6,816	)
Gain from sales		—			131
Balance at June 30, 2014	$	57,821		$	2,650

The following table presents information regarding the change in assets measured at fair value on a nonrecurring basis for the three- and six-months periods ended June 30, 2013.

($ in thousands)	Impaired Securities			Impaired Loans			Foreclosed Real Estate
Balance at December 31, 2012	$	3,721		$	65,973		$	15,923
Net new impaired loans		—			1,485			—
OTTI writedowns		(366	)		—			—
Impaired loans transferred to foreclosed real estate		—			(3,040	)		3,040
Principal repayments/sales		(63	)		(9,467	)		—
Chargeoffs of impaired loans		—			(115	)		—
Writedowns of carrying value subsequent to foreclosure		—			—			(629	)
Balance at March 31, 2013		3,292			54,836			18,334
Net new impaired loans		—			6,761			—
OTTI writedowns		(325	)		—			—
Principal repayments/sales		(44	)		(9,241	)		(4,107	)
Chargeoffs of impaired loans		—			(1,823	)		—
Writedowns of carrying value subsequent to foreclosure		—			—			(150	)
Recoveries of prior writedowns		—			—			74
Gains from sales		—			—			718
Balance at June 30, 2013	$	2,923		$	50,533		$	14,869

We are required to disclose the estimated fair value of each class of our financial instruments for which it is practicable to estimate, which values are shown in the table that follows. The fair value of a financial instrument is the current estimated amount that would be exchanged between willing parties, other than in a forced liquidation. The fair value estimates are made at a specific point in time based on available information. A discussion regarding the assumptions used to compute the estimated fair values disclosed below can be found in note 20 to the financial statements included our 2013 10-K.

The carrying and estimated fair values of our financial instruments are as follows:

	At June 30, 2014				At December 31, 2013
($ in thousands)	Carrying Value		Fair Value		Carrying Value		Fair Value
Financial Assets:
Cash and cash equivalents (1)	$	35,367	$	35,367	$	24,700	$	24,700
Time deposits with banks (1)		5,370		5,370		5,370		5,370
Securities available for sale, net (1)		994		994		965		965
Securities held to maturity, net (2)		358,338		357,311		383,937		378,507
FRB and FHLB stock (3)		8,302		8,302		8,244		8,244
Loans receivable, net (3)		1,131,359		1,142,659		1,099,689		1,100,858
Accrued interest receivable (3)		4,494		4,494		4,861		4,861
Loan fees receivable (3)		2,165		1,709		2,298		1,808
Total Financial Assets	$	1,546,389	$	1,556,206	$	1,530,064	$	1,525,313
Financial Liabilities:
Deposits (3)	$	1,277,823	$	1,289,498	$	1,282,232	$	1,294,690
Borrowed funds plus accrued interest payable (3)		56,760		56,451		57,570		57,260
Accrued interest payable on deposits (3)		1,440		1,440		1,508		1,508
Commitments to lend (3)		397		397		408		408
Total Financial Liabilities	$	1,336,420	$	1,347,786	$	1,341,718	$	1,353,866
Net Financial Assets	$	209,969	$	208,420	$	188,346	$	171,447

(1) We consider these fair value measurements to be Level 1.

(2) We consider these fair value measurements to be Level 2.

(3) We consider these fair value measurements to be Level 3.

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Allowance for Loan Losses (Tables)

6 Months Ended

Jun. 30, 2014

Text Block [Abstract]

Allowance for Loan Losses by Loan Type

Activity in the allowance for loan losses by loan type for the periods indicated is as follows:

($ in thousands)	Commercial Real Estate			Multifamily			One to Four Family			Land			All Other		Total
Quarter Ended June 30, 2014
Balance at beginning of period	$	18,813		$	5,112		$	2,632		$	853		$	8	$	27,418
Loan chargeoffs		—			—			—			—			—		—
Loan recoveries		180			—			—			—			—		180
(Credit) provision for loan losses		(612	)		(148	)		(274	)		34			—		(1,000	)
Balance at end of period	$	18,381		$	4,964		$	2,358		$	887		$	8	$	26,598
Six-Months Ended June 30, 2014
Balance at beginning of period	$	18,403		$	5,097		$	3,017		$	1,308		$	8	$	27,833
Loan chargeoffs		—			—			—			—			—		—
Loan recoveries		251			14			—			—			—		265
(Credit) provision for loan losses		(273	)		(147	)		(659	)		(421	)		—		(1,500	)
Balance at end of period	$	18,381		$	4,964		$	2,358		$	887		$	8	$	26,598

($ in thousands)	Commercial Real Estate			Multifamily			One to Four Family			Land			All Other		Total
Quarter Ended June 30, 2013
Balance at beginning of period	$	18,644		$	5,617		$	2,971		$	970		$	8	$	28,210
Loan chargeoffs		(1,817	)		(6	)		—			—			—		(1,823	)
Loan recoveries		818			—			—			—			—		818
(Credit) provision for loan losses		(49	)		(513	)		(176	)		(14	)		2		(750	)
Balance at end of period	$	17,596		$	5,098		$	2,795		$	956		$	10	$	26,455
Six-Months Ended June 30, 2013
Balance at beginning of period	$	19,051		$	6,881		$	1,120		$	1,043		$	8	$	28,103
Loan chargeoffs		(1,932	)		(6	)		—			—			—		(1,938	)
Loan recoveries (1)		880			677			—			483			—		2,040
Credit) provision for loan losses		(403	)		(2,454	)		1,675			(570	)		2		(1,750	)
Balance at end of period	$	17,596		$	5,098		$	2,795		$	956		$	10	$	26,455

(1) In the first and second quarters of 2013, INB entered into settlement agreements with respect to certain litigation INB had pursued in connection with foreclosure actions it had commenced in 2010 on several of its loans. INB commenced the actions to collect, in one case, insurance proceeds, which it contended had been improperly paid to various third parties, and in another case, damages due to alleged legal malpractice when the loan was originated. As a result of these settlements, INB received net proceeds totaling $2.7 million and $0.1 million in the first and second quarter of 2013, respectively, which was recorded as $1.1 million of recoveries of prior loan charge offs and $1.6 million of recoveries of prior real estate expenses associated with two loans and underlying collateral property.

Loans Receivable by Segment and Impairment Evaluation and Allowance for Loan Losses

The following table sets forth the balances of our loans receivable by segment and impairment evaluation and the allowance for loan losses associated with such loans at June 30, 2014.

($ in thousands)	Commercial Real Estate		Multifamily		One to Four Family		Land		All Other		Total
Loans:
Individually evaluated for impairment	$	53,156	$	3,110	$	—	$	1,555	$	—	$	57,821
Collectively evaluated for impairment		834,887		202,148		59,211		6,826		1,201		1,104,273
Total loans	$	888,043	$	205,258	$	59,211	$	8,381	$	1,201	$	1,162,094
Allowance for loan losses:
Individually evaluated for impairment	$	4,784	$	591	$	—	$	161	$	—	$	5,536
Collectively evaluated for impairment		13,597		4,373		2,358		726		8		21,062
Total allowance for loan losses	$	18,381	$	4,964	$	2,358	$	887	$	8	$	26,598

The following table sets forth the balances of our loans receivable by segment and impairment evaluation and the allowance for loan losses associated with such loans at December 31, 2013.

($ in thousands)	Commercial Real Estate		Multifamily		One to Four Family		Land		All Other		Total
Loans:
Individually evaluated for impairment	$	52,407	$	3,128	$	—	$	1,625	$	—	$	57,160
Collectively evaluated for impairment		786,359		207,142		72,064		7,553		1,272		1,074,390
Total loans	$	838,766	$	210,270	$	72,064	$	9,178	$	1,272	$	1,131,550
Allowance for loan losses:
Individually evaluated for impairment	$	4,999	$	594	$	—	$	500	$	—	$	6,093
Collectively evaluated for impairment		13,404		4,503		3,017		808		8		21,740
Total allowance for loan losses	$	18,403	$	5,097	$	3,017	$	1,308	$	8	$	27,833

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Loans Receivable - Distribution of TDRs by Accruing Versus Nonaccruing, by Segment and by Geographic (Detail) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2014	Dec. 31, 2013
Financing Receivable Modifications Number Of Contracts [Line Items]
Total Financing Receivable by TDRs	$ 44,788	$ 46,613
Total Financing Receivable by TDRs	44,788	46,613
Total Financing Receivable by TDRs	44,788	46,613
New York [Member]
Financing Receivable Modifications Number Of Contracts [Line Items]
Total Financing Receivable by TDRs	8,138	8,223
Total Financing Receivable by TDRs	8,138	8,223
Total Financing Receivable by TDRs	8,138	8,223
Florida [Member]
Financing Receivable Modifications Number Of Contracts [Line Items]
Total Financing Receivable by TDRs	26,400	27,070
Total Financing Receivable by TDRs	26,400	27,070
Total Financing Receivable by TDRs	26,400	27,070
Georgia [Member]
Financing Receivable Modifications Number Of Contracts [Line Items]
Total Financing Receivable by TDRs	8,695	8,695
Total Financing Receivable by TDRs	8,695	8,695
Total Financing Receivable by TDRs	8,695	8,695
Ohio [Member]
Financing Receivable Modifications Number Of Contracts [Line Items]
Total Financing Receivable by TDRs		1,000
Total Financing Receivable by TDRs		1,000
Total Financing Receivable by TDRs		1,000
South Dakota [Member]
Financing Receivable Modifications Number Of Contracts [Line Items]
Total Financing Receivable by TDRs	1,555	1,625
Total Financing Receivable by TDRs	1,555	1,625
Total Financing Receivable by TDRs	1,555	1,625
Commercial Real Estate [Member]
Financing Receivable Modifications Number Of Contracts [Line Items]
Total Financing Receivable by TDRs	40,123	41,860
Total Financing Receivable by TDRs	40,123	41,860
Total Financing Receivable by TDRs	40,123	41,860
Multifamily Loans [Member]
Financing Receivable Modifications Number Of Contracts [Line Items]
Total Financing Receivable by TDRs	3,110	3,128
Total Financing Receivable by TDRs	3,110	3,128
Total Financing Receivable by TDRs	3,110	3,128
Land [Member]
Financing Receivable Modifications Number Of Contracts [Line Items]
Total Financing Receivable by TDRs	1,555	1,625
Total Financing Receivable by TDRs	1,555	1,625
Total Financing Receivable by TDRs	1,555	1,625
Non-accrual Status [Member]
Financing Receivable Modifications Number Of Contracts [Line Items]
Total Financing Receivable by TDRs	17,700	33,200
Total Financing Receivable by TDRs	17,700	33,200
Total Financing Receivable by TDRs	17,700	33,200
Performing [Member] | Non-accrual Status [Member]
Financing Receivable Modifications Number Of Contracts [Line Items]
Total Financing Receivable by TDRs	17,700	33,184
Total Financing Receivable by TDRs	17,700	33,184
Total Financing Receivable by TDRs	17,700	33,184
Performing [Member] | Accrual Status [Member]
Financing Receivable Modifications Number Of Contracts [Line Items]
Total Financing Receivable by TDRs	27,088	13,429
Total Financing Receivable by TDRs	27,088	13,429
Total Financing Receivable by TDRs	$ 27,088	$ 13,429

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Loans Receivable - Additional Information (Detail) (USD $)	6 Months Ended	12 Months Ended
	Jun. 30, 2014 SecurityLoan	Dec. 31, 2013 SecurityLoan
Financing Receivable Modifications Number Of Contracts [Line Items]
90 days past due and still accruing interest loan	$ 5,615,000	$ 4,087,000
Troubled debt restructured loans	44,788,000	46,613,000
Performing and accruing loans classified as impaired	7,700,000	7,700,000
Performing loans	1	1
Accruing Loans [Member]
Financing Receivable Modifications Number Of Contracts [Line Items]
Number of loans, 90 days past due and still accruing	1	3
90 days past due and still accruing interest loan	3,000,000	4,100,000
Troubled debt restructured loans	25,100,000	13,100,000
Troubled debt restructured loans	27,100,000	13,400,000
Nonaccrual Loans [Member]
Financing Receivable Modifications Number Of Contracts [Line Items]
Total loans	23,000,000	35,900,000
Troubled debt restructured loans	23,000,000	35,900,000
Performing loans	1
Non-accrual Status [Member]
Financing Receivable Modifications Number Of Contracts [Line Items]
Troubled debt restructured loans	$ 17,700,000	$ 33,200,000

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Condensed Consolidated Statements of Comprehensive Income (Unaudited) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Statement Of Income And Comprehensive Income [Abstract]
Net earnings	$ 5,738	$ 3,539	$ 9,580	$ 7,430
Other Comprehensive Income:
Net unrealized holding gain on available-for-sale securities	9		17
Provision for income taxes related to unrealized gain on available-for-sale securities	(4)		(7)
Other comprehensive income, net of tax	5		10
Total comprehensive income	$ 5,743	$ 3,539	$ 9,590	$ 7,430

XML

Loans Receivable

6 Months Ended

Jun. 30, 2014

Receivables [Abstract]

Loans Receivable

Note 3 – Loans Receivable

Major classifications of loans receivable are summarized as follows:

	At June 30, 2014					At December 31, 2013
($ in thousands)	# of Loans		Amount			# of Loans		Amount
Loans Secured By Real Estate:
Commercial loans		414	$	888,043			394	$	838,766
Multifamily loans		142		205,258			138		210,270
One to four family loans		16		59,211			20		72,064
Land loans		5		8,381			5		9,178
		577		1,160,893			557		1,130,278
All Other Loans:
Business loans		18		1,031			19		1,061
Consumer loans		8		170			12		211
		26		1,201			31		1,272
Loans receivable, gross		603		1,162,094			588		1,131,550
Deferred loan fees				(4,137	)				(4,028	)
Loans receivable, net of deferred fees				1,157,957					1,127,522
Allowance for loan losses				(26,598	)				(27,833	)
Loans receivable, net			$	1,131,359				$	1,099,689

Loans 90 days past due and still accruing interest - At June 30, 2014, there was one loan 90 days past due and still accruing of $3.0 million, compared to three loans totaling $4.1 million at December 31, 2013.

Loans on nonaccrual status – At June 30, 2014 and December 31, 2013, there were $23.0 million and $35.9 million of loans, respectively, on nonaccrual status, which included restructured loans (or “TDRs”) of $17.7 million and $33.2 million, respectively. All the TDRs were current and performing in accordance with their restructured terms but were maintained on nonaccrual status based on regulatory guidance. All nonaccrual loans were considered impaired loans.

TDRs on accrual status – At June 30, 2014 and December 31, 2013, there were $27.1 million and $13.4 million of TDR loans, respectively, classified as accruing TDRs. All of these TDR loans were considered impaired loans.

At June 30, 2014 and December 31, 2013, we also had one performing and accruing loan of $7.7 million that was classified as an impaired loan.

The tables below summarize certain information regarding our impaired loans as follows:

($ in thousands)	Recorded Investment by State (1)																Specific Valuation Allowance (2)		Total Unpaid Principal (3)		# of Loans
At June 30, 2014 Type	NY		FL		VA		GA		CT		OH		SD		Total
Retail	$	8,138	$	9,005	$	7,727	$	—	$	2,684	$	—	$	—	$	27,554	$	2,777	$	31,251		6
Office Building		—		14,285		—		8,695		—		—		—		22,980		1,928		22,980		3
Parking Lot		2,622		—		—		—		—		—		—		2,622		79		2,622		1
Multifamily		—		3,110		—		—		—		—		—		3,110		591		3,110		2
Land		—		—		—		—		—		—		1,555		1,555		161		1,555		1
Totals	$	10,760	$	26,400	$	7,727	$	8,695	$	2,684	$	—	$	1,555	$	57,821	$	5,536	$	61,518		13

($ in thousands)	Recorded Investment by State (1)																Specific Valuation Allowance (2)		Total Unpaid Principal (3)		# of Loans
At December 31, 2013 Type	NY		FL		VA		GA		CT		OH		SD		Total
Retail	$	8,223	$	9,005	$	7,828	$	—	$	2,719	$	1,000	$	—	$	28,775	$	3,052	$	36,216		7
Office Building		—		14,937		—		8,695		—		—		—		23,632		1,947		23,632		3
Multifamily		—		3,128		—		—		—		—		—		3,128		594		3,128		2
Land		—		—		—		—		—		—		1,625		1,625		500		1,625		1
Totals	$	8,223	$	27,070	$	7,828	$	8,695	$	2,719	$	1,000	$	1,625	$	57,160	$	6,093	$	64,601		13

(1) Represents unpaid principal less partial principal charge offs and interest received and applied as a reduction of principal in certain cases.

(2) Represents a specific valuation allowance against the recorded investment, which is included as part of our overall allowance for loan losses.

All impaired loans at the dates indicated in the table had a specific valuation allowance.

(3) Represents contractual unpaid principal balance (shown for informational purposes only). The borrowers are obligated to pay such amounts.

However, the ultimate collection by us of such amounts in this column is not assured.

Other information related to our impaired loans is summarized as follows:

	Quarter Ended June 30,				Six-Months Ended June 30,
($ in thousands)	2014		2013		2014		2013
Average recorded investment in nonaccrual loans	$	34,336	$	39,733	$	35,400	$	41,831
Total cash basis interest income recognized on nonaccrual loans		458		610		977		1,208
Average recorded investment in accruing TDR loans		16,756		13,271		15,071		15,799
Total interest income recognized on accruing TDR loans under modified terms		223		179		400		429

Age analysis of our loan portfolio by segment at June 30, 2014 is summarized as follows:

($ in thousands)	Total Portfolio		Current		Past Due 31-59 Days		Past Due 60-89 Days		Past Due 90 or more Days		Total Past Due
Accruing Loans:
Commercial real estate	$	865,038	$	862,045	$	—	$	—	$	2,993	$	2,993
Multifamily		205,258		205,258		—		—		—		—
One to four family		59,211		59,211		—		—		—		—
Land		8,381		8,381		—		—		—		—
All other		1,201		1,201		—		—		—		—
Total accruing loans		1,139,089		1,136,096		—		—		2,993		2,993
Nonaccrual Loans (1):
Commercial real estate		23,005		20,383		—		—		2,622		2,622
Total nonaccrual loans		23,005		20,383		—		—		2,622		2,622
Total loans	$	1,162,094	$	1,156,479	$	—	$	—	$	5,615	$	5,615

(1) The amount of nonaccrual loans in the current column included $17.7 million of TDRs for which payments were being made in accordance with their restructured terms, but the loans were maintained on nonaccrual status in accordance with regulatory guidance. The remaining portion was comprised of one performing and paying loan classified nonaccrual due to concerns regarding the borrower’s ability to continue making payments. Interest income from loan payments received on loans in nonaccrual status is recognized on a cash basis, provided the remaining principal balance is deemed collectible.

Age analysis of our loan portfolio by segment at December 31, 2013 is summarized as follows:

($ in thousands)	Total Portfolio		Current		Past Due 31-59 Days		Past Due 60-89 Days		Past Due 90 or more Days		Total Past Due
Accruing Loans:
Commercial real estate	$	802,863	$	796,980	$	1,796	$	—	$	4,087	$	5,883
Multifamily		210,270		209,426		844		—		—		844
One to four family		72,064		72,064		—		—		—		—
Land		9,178		9,178		—		—		—		—
All other		1,272		1,271		1		—		—		1
Total accruing loans		1,095,647		1,088,919		2,641		—		4,087		6,728
Nonaccrual Loans (1):
Commercial real estate		35,903		35,903		—		—		—		—
Total nonaccrual loans		35,903		35,903		—		—		—		—
Total loans	$	1,131,550	$	1,124,822	$	2,641	$	—	$	4,087	$	6,728

(1) The amount of nonaccrual loans in the current column included $33.2 million of TDRs for which payments were being made in accordance with their restructured terms, but the loans were maintained on nonaccrual status in accordance with regulatory guidance. The remaining portion was comprised of certain paying loans classified nonaccrual due to concerns regarding the borrowers’ ability to continue making payments. Interest income from loan payments received on loans in nonaccrual status is recognized on a cash basis, provided the remaining principal balance is deemed collectible.

Information regarding the credit quality of the loan portfolio based on our internally assigned grades follows:

($ in thousands)	Pass		Special Mention		Substandard (1)		Total
At June 30, 2014
Commercial real estate	$	829,466	$	3,218	$	55,359	$	888,043
Multifamily		199,326		2,361		3,571		205,258
One to four family		59,211		—		—		59,211
Land		8,381		—		—		8,381
All other		1,201		—		—		1,201
Total loans	$	1,097,585	$	5,579	$	58,930	$	1,162,094
Allocation of allowance for loan losses	$	21,055	$	163	$	5,380	$	26,598
At December 31, 2013
Commercial real estate	$	772,900	$	3,522	$	62,344	$	838,766
Multifamily		204,298		2,369		3,603		210,270
One to four family		72,064		—		—		72,064
Land		7,553		—		1,625		9,178
All other		1,272		—		—		1,272
Total loans	$	1,058,087	$	5,891	$	67,572	$	1,131,550
Allocation of allowance for loan losses	$	20,720	$	169	$	6,944	$	27,833

(1) Substandard loans consisted of $23.0 million of nonaccrual loans, $25.1 million of accruing TDRs and $10.8 million of other performing loans at June 30, 2014, compared to $35.9 million of nonaccrual loans, $13.1 million of accruing TDRs and $18.6 million of other performing loans at December 31, 2013. At June 30, 2014 and December 31, 2013, we also had accruing TDRs of $2.0 million and $0.4 million, respectively, which were rated pass.

The geographic distribution of the loan portfolio by state follows:

($ in thousands)	At June 30, 2014					At December 31, 2013
	Amount		% of Total			Amount		% of Total
New York	$	651,314		56.0	%	$	670,052		59.3	%
Florida		339,410		29.3			321,812		28.4
North Carolina		28,148		2.4			22,611		2.0
Georgia		21,109		1.9			18,799		1.7
New Jersey		13,542		1.2			15,650		1.4
Pennsylvania		13,263		1.1			16,898		1.5
Virginia		13,166		1.1			11,491		1.0
Kentucky		8,440		0.7			11,930		1.1
South Carolina		8,044		0.7			9,223		0.8
Connecticut		7,366		0.6			8,429		0.7
Tennessee		6,731		0.6			5,843		0.5
Massachusetts		6,058		0.5			—		—
Texas		5,720		0.5			—		—
Michigan		5,514		0.5			5,599		0.5
Arizona		5,125		0.4			—		—
West Virginia		4,477		0.4			—		—
Ohio		4,429		0.4			4,703		0.4
Utah		3,937		0.3			—		—
Illinois		3,627		0.3			—		—
Indiana		3,463		0.3			2,820		0.2
All other states		9,211		0.8			5,690		0.5
	$	1,162,094		100.0	%	$	1,131,550		100.0	%

The distribution of TDRs by accruing versus nonaccruing, by loan type and by geographic distribution follows:

($ in thousands)	At June 30, 2014		At December 31, 2013
Performing – nonaccrual status	$	17,700	$	33,184
Performing – accrual status		27,088		13,429
	$	44,788	$	46,613
Commercial real estate	$	40,123	$	41,860
Multifamily		3,110		3,128
Land		1,555		1,625
	$	44,788	$	46,613
New York	$	8,138	$	8,223
Florida		26,400		27,070
Georgia		8,695		8,695
Ohio		—		1,000
South Dakota		1,555		1,625
	$	44,788	$	46,613

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Subordinated Debentures - Capital Securities - Summary of Capital Securities Outstanding (Detail) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2014	Dec. 31, 2013
Debt Instrument [Line Items]
Principal	$ 56,702	$ 56,702
Accrued Interest Payable	58	868
Capital Securities II [Member]
Debt Instrument [Line Items]
Principal	15,464	15,464
Accrued Interest Payable	18	275
Interest Rate	3.18%	3.19%
Capital Securities III [Member]
Debt Instrument [Line Items]
Principal	15,464	15,464
Accrued Interest Payable	18	261
Interest Rate	3.02%	3.03%
Capital Securities IV [Member]
Debt Instrument [Line Items]
Principal	15,464	15,464
Accrued Interest Payable	14	223
Interest Rate	2.63%	2.65%
Capital Securities V [Member]
Debt Instrument [Line Items]
Principal	10,310	10,310
Accrued Interest Payable	8	109
Interest Rate	1.88%	1.89%
Capital Securities [Member]
Debt Instrument [Line Items]
Principal	56,702	56,702
Accrued Interest Payable	$ 58	$ 868

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Regulatory Matters and Regulatory Capital - Additional Information (Detail)	Jun. 30, 2014
Compliance with Regulatory Capital Requirements for Mortgage Companies [Line Items]
Tier 1 capital ratio	22.19%
Tier 1 Total capital ratios	20.93%
Leverage capital ratio	16.48%
INB [Member]
Compliance with Regulatory Capital Requirements for Mortgage Companies [Line Items]
Tier 1 capital ratio	15.92%
Tier 1 Total capital ratios	20.18%
Leverage capital ratio	21.45%

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Foreclosed Real Estate and Valuation Allowance for Real Estate Losses (Tables)

6 Months Ended

Jun. 30, 2014

Banking And Thrift [Abstract]

Summary of Real Estate Acquired through Foreclosure by Property Type

Real estate acquired through foreclosure by property type is summarized as follows:

	At June 30, 2014				At December 31, 2013
($ in thousands)	# of Properties		Amount (1)		# of Properties		Amount (1)
Commercial real estate		1	$	2,650		2	$	3,984
Multifamily		—		—		1		6,685
Real estate acquired through foreclosure		1	$	2,650		3	$	10,669

(1) Reported net of any associated valuation allowance.

Summary of Activity in the Valuation Allowance for Real Estate Losses

Activity in the valuation allowance for real estate losses is summarized as follows:

	Quarter Ended June 30,					Six-Months Ended June 30,
($ in thousands)	2014			2013		2014			2013
Valuation allowance at beginning of period	$	1,193		$	5,968	$	2,017		$	5,339
Chargeoffs		(803	)		—		(1,627	)		—
Provision for real estate losses		—			76		—			705
Valuation allowance at end of period	$	390		$	6,044	$	390		$	6,044

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Fair Value Measurements - Change in Assets Measured at Fair Value on a Nonrecurring Basis (Detail) (Assets Measured at Fair Value on a Nonrecurring Basis [Member], USD $) In Thousands, unless otherwise specified	3 Months Ended
	Jun. 30, 2014	Mar. 31, 2014	Jun. 30, 2013	Mar. 31, 2013
Impaired Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Beginning balance			$ 3,292	$ 3,721
Net new impaired loans
OTTI writedowns			(325)	(366)
Impaired loans transferred to foreclosed real estate
Principal repayments/sales			(44)	(63)
Chargeoffs of impaired loans
Writedowns of carrying value subsequent to foreclosure
Recoveries of prior writedowns
Gain from sales
Ending balance			2,923	3,292
Impaired Loans [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Beginning balance	59,864	57,160	54,836	65,973
Net new impaired loans		3,466	6,761	1,485
OTTI writedowns
Impaired loans transferred to foreclosed real estate				(3,040)
Principal repayments/sales	(2,043)	(762)	(9,241)	(9,467)
Chargeoffs of impaired loans			(1,823)	(115)
Writedowns of carrying value subsequent to foreclosure
Recoveries of prior writedowns
Gain from sales
Ending balance	57,821	59,864	50,533	54,836
Foreclosed Real Estate [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Beginning balance	9,335	10,669	18,334	15,923
Net new impaired loans
OTTI writedowns
Impaired loans transferred to foreclosed real estate				3,040
Principal repayments/sales	(6,816)	(1,406)	(4,107)
Chargeoffs of impaired loans
Writedowns of carrying value subsequent to foreclosure			(150)	(629)
Recoveries of prior writedowns			74
Gain from sales	131	72	718
Ending balance	$ 2,650	$ 9,335	$ 14,869	$ 18,334

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Securities Held to Maturity and Available for Sale - Credit Losses Recognized on Securities (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Investments Debt And Equity Securities [Abstract]
Balance at beginning of period	$ 0	$ 4,599	$ 0	$ 4,233
Additional credit losses on debt securities for which OTTI was previously recognized	0	325	0	691
Balance at end of period	$ 0	$ 4,924	$ 0	$ 4,924

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Off-Balance Sheet Financial Instruments

6 Months Ended

Jun. 30, 2014

Investments All Other Investments [Abstract]

Off-Balance Sheet Financial Instruments

Note 13 – Off-Balance Sheet Financial Instruments

INB is party to financial instruments with off-balance sheet risk in the normal course of its business to meet the financing needs of its customers. These instruments can be in the form of commitments to extend credit, unused lines of credit and standby letters of credit, and may involve, to varying degrees, elements of credit and interest rate risk in excess of the amounts recognized in our financial statements. Our maximum exposure to credit risk is represented by the contractual amount of those instruments. Commitments to extend credit are agreements to lend funds to a customer as long as there is no violation of any condition established in the contract. Such commitments generally have fixed expiration dates or other termination clauses and normally require payment of fees to INB. Since some of the commitments are expected to expire without being drawn upon, the total commitment amount does not necessarily represent future cash requirements. We evaluate each customer’s creditworthiness on a case-by-case basis. Standby letters of credit are conditional commitments issued by INB to guarantee the performance of its customer to a third party. The credit risk involved in the underwriting of letters of credit is essentially the same as that involved in originating loans. INB had no standby letters of credit outstanding at June 30, 2014 or December 31, 2013.

The contractual amounts of off-balance sheet financial instruments are as follows:

($ in thousands)	At June 30, 2014		At December 31, 2013
Commitments to extend credit	$	19,338	$	19,386
Unused lines of credit		778		877
	$	20,116	$	20,263