================================================================================
                    U.S. 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, 2003
                                                 -------------

                          Commission File No. 000-23377
                                              ---------

                        INTERVEST BANCSHARES CORPORATION
                        --------------------------------
             (Exact name of registrant as specified in its charter)

              Delaware                                13-3699013
 -----------------------------------     --------------------------------------
   (State or other jurisdiction of        (I.R.S. employer identification no.)
    incorporation or organization)

                        10 ROCKEFELLER PLAZA, SUITE 1015
                          NEW YORK, NEW YORK 10020-1903
                    (Address of principal executive offices)
                    ----------------------------------------

                                 (212) 218-2800
              (Registrant's telephone number, including area code)
              ----------------------------------------------------


Indicate  by  check  mark  whether  the  registrant:  (1)  has filed all reports
required  to  be filed by Section 12, 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  XX  NO  .
     --    --

Indicate  by  check  mark  whether  the  Registrant  is an accelerated filer (as
defined  in  Rule  12b-2  of  the  Exchange  Act):
YES      NO  XX.
     --      --

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

<TABLE>
<CAPTION>
<S>                                                                  <C>
  Title of Each Class:                                               Shares Outstanding:
  --------------------                                               -------------------

  Class A Common Stock, $1.00 par value per share                    4,476,626 Outstanding at July 31, 2003
  -----------------------------------------------                    --------------------------------------

  Class B Common Stock, $1.00 par value per share                    385,000 Outstanding at July 31, 2003
  -----------------------------------------------                    ------------------------------------
</TABLE>


================================================================================
<PAGE>
                INTERVEST BANCSHARES CORPORATION AND SUBSIDIARIES

                                    FORM 10-Q
                                  JUNE 30, 2003
                                TABLE OF CONTENTS

  PART I. FINANCIAL INFORMATION                                             Page
                                                                            ----

     ITEM 1.     FINANCIAL STATEMENTS

          Condensed Consolidated Balance Sheets
             as of June 30, 2003 (Unaudited) and December 31, 2002 . . . . .   2

          Condensed Consolidated Statements of Earnings (Unaudited)
             for the Quarters and Six-Months Ended June 30, 2003 and 2002. .   3

          Condensed Consolidated Statements of Comprehensive Income
             (Unaudited) for the Quarters and Six-Months Ended
             June 30, 2003 and 2002. . . . . . . . . . . . . . . . . . . . .   4

          Condensed Consolidated Statements of Changes in
             Stockholders' Equity (Unaudited) for the Six-Months Ended
             June 30, 2003 and 2002. . . . . . . . . . . . . . . . . . . . .   5

          Condensed Consolidated Statements of Cash Flows (Unaudited)
             for the Six-Months Ended June 30, 2003 and 2002 . . . . . . . .   6

          Notes to Condensed Consolidated Financial Statements (Unaudited) .   7

          Review by Independent Certified Public Accountants . . . . . . . .  11

          Report on Reviews by Independent Certified Public Accountants. . .  12

     ITEM 2.     MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
                    CONDITION AND RESULTS OF OPERATIONS. . . . . . . . . . .  14

     ITEM 3.     QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT
                    MARKET RISK. . . . . . . . . . . . . . . . . . . . . . .  24

     ITEM 4.     CONTROLS AND PROCEDURES . . . . . . . . . . . . . . . . . .  25

  PART II. OTHER INFORMATION

     ITEM 1.     LEGAL PROCEEDINGS . . . . . . . . . . . . . . . . . . . . .  25

     ITEM 2.     CHANGES IN SECURITIES AND USE OF PROCEEDS . . . . . . . . .  25

     ITEM 3.     DEFAULTS UPON SENIOR SECURITIES . . . . . . . . . . . . . .  25

     ITEM 4.     SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS . . . .  25

     ITEM 5.     OTHER INFORMATION . . . . . . . . . . . . . . . . . . . . .  26

     ITEM 6.     EXHIBITS AND REPORTS ON FORM 8-K. . . . . . . . . . . . . .  26

  SIGNATURES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  26

  CERTIFICATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  27
PRIVATE  SECURITIES  LITIGATION  REFORM  ACT  SAFE  HARBOR  STATEMENT

The  Company  is  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 that are not statements of
historical  fact may include forward-looking statements that involve a number of
risks  and  uncertainties.  Such  forward-looking  statements  are made based on
management's  expectations  and  beliefs  concerning future events impacting the
Company  and  are subject to uncertainties and factors relating to the Company's
operations  and  economic environment, all of which are difficult to predict and
many  of  which  are  beyond the control of the Company, that could cause actual
results  of  the Company to differ materially from those matters expressed in or
implied  by  forward-looking  statements.  The following factors are among those
that  could  cause  actual results to differ materially from the forward-looking
statements:  changes  in general economic, market and regulatory conditions, the
development  of  an  interest  rate  environment  that  may adversely affect the
Company's  interest  rate spread, other income or cash flow anticipated from the
Company's operations, investment and lending activities; and changes in laws and
regulations  affecting  banks  and  bank  holding  companies.


                                        1
<PAGE>
                INTERVEST BANCSHARES CORPORATION AND SUBSIDIARIES
                      CONDENSED CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
                                                                                                   JUNE 30,    DECEMBER 31,
($ in thousands, except par value)                                                                   2003          2002
----------------------------------------------------------------------------------------------------------------------------
<S>                                                                                              <C>           <C>
ASSETS                                                                                           (Unaudited)
Cash and due from banks                                                                          $      6,857  $      10,351
Federal funds sold                                                                                     16,053          9,114
Commercial paper                                                                                        9,575          7,950
Other short-term investments                                                                              920          3,434
                                                                                                 ---------------------------
    Total cash and cash equivalents                                                                    33,405         30,849
Time deposits with banks                                                                                    -          2,000
Securities held to maturity, net (estimated fair value of $122,457 and $146,560,  respectively)       121,833        145,694
Federal Reserve Bank and Federal Home Loan Bank stock, at cost                                          2,805          1,108
Loans receivable (net of allowance for loan losses of $5,385 and $4,611, respectively)                570,590        485,301
Accrued interest receivable                                                                             4,138          4,263
Loan fees receivable                                                                                    4,711          3,706
Premises and equipment, net                                                                             5,924          6,098
Foreclosed real estate                                                                                      -          1,081
Deferred income tax asset                                                                               2,504          1,997
Deferred debenture offering costs, net                                                                  3,595          3,498
Other assets                                                                                              272            384
----------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS                                                                                     $    749,777  $     685,979
----------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Deposits:
   Noninterest-bearing demand deposit accounts                                                   $      6,926  $       5,924
   Interest-bearing deposit accounts:
   Checking (NOW) accounts                                                                             10,001         10,584
   Savings accounts                                                                                    31,583         30,174
   Money market accounts                                                                              141,165        134,293
   Certificate of deposit accounts                                                                    363,713        324,983
                                                                                                 ---------------------------
Total deposit accounts                                                                                553,388        505,958
   Subordinated debentures payable                                                                     90,490         84,430
   Guaranteed preferred beneficial interest in junior subordinated debentures                          15,000         15,000
   Note payable                                                                                           260            266
   Accrued interest payable on all debentures                                                          14,774         13,872
Accrued interest payable on deposits                                                                      906            895
Mortgage escrow funds payable                                                                           8,926          5,894
Official checks outstanding                                                                             5,538          4,373
Other liabilities                                                                                       2,486          2,165
----------------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES                                                                                     691,768        632,853
----------------------------------------------------------------------------------------------------------------------------
STOCKHOLDERS' EQUITY
Preferred stock (300,000 shares authorized, none issued)                                                    -              -
Class A common stock ($1.00 par value, 9,500,000 shares authorized,
   4,359,235 and 4,348,087 shares issued and outstanding, respectively)                                 4,359          4,348
Class B common stock ($1.00 par value, 700,000 shares authorized,
   385,000 and  355,000 shares issued and outstanding, respectively)                                      385            355
Additional paid-in-capital, common                                                                     24,609         24,134
Retained earnings                                                                                      28,656         24,289
----------------------------------------------------------------------------------------------------------------------------
TOTAL STOCKHOLDERS' EQUITY                                                                             58,009         53,126
----------------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                                                       $    749,777  $     685,979
----------------------------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to condensed consolidated financial statements.


                                        2
<PAGE>
                INTERVEST BANCSHARES CORPORATION AND SUBSIDIARIES
                  CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
                                  (Unaudited)
<TABLE>
<CAPTION>
                                                                           QUARTER ENDED    SIX-MONTHS ENDED
                                                                              JUNE 30,           JUNE 30,
                                                                         ------------------------------------
($ in thousands, except per share data)                                    2003     2002      2003     2002
-------------------------------------------------------------------------------------------------------------
<S>                                                                      <C>       <C>      <C>       <C>
INTEREST AND DIVIDEND INCOME
Loans receivable                                                         $11,613   $ 9,972  $22,283   $18,792
Securities                                                                   770       983    1,657     1,825
Other interest-earning assets                                                 87        53      155       102
-------------------------------------------------------------------------------------------------------------
TOTAL INTEREST AND DIVIDEND INCOME                                        12,470    11,008   24,095    20,719
-------------------------------------------------------------------------------------------------------------

INTEREST EXPENSE
Deposits                                                                   4,518     4,347    8,971     8,269
Subordinated debentures                                                    2,067     1,804    4,024     3,577
Junior debentures - capital securities                                       374       374      748       748
Note payable                                                                   5         5        9         7
Federal funds purchased                                                        -         -        -         2
-------------------------------------------------------------------------------------------------------------
TOTAL INTEREST EXPENSE                                                     6,964     6,530   13,752    12,603
-------------------------------------------------------------------------------------------------------------

NET INTEREST AND DIVIDEND INCOME                                           5,506     4,478   10,343     8,116
Provision for loan loss reserves                                             430       426      774       772
-------------------------------------------------------------------------------------------------------------
NET INTEREST AND DIVIDEND INCOME
           AFTER PROVISION FOR LOAN LOSS RESERVES                          5,076     4,052    9,569     7,344
-------------------------------------------------------------------------------------------------------------

NONINTEREST INCOME
Customer service fees                                                         50        48       88        83
Income from mortgage lending activities                                      261       106      414       208
Income from the early repayment of mortgage loans                            896       224    1,037       361
Loss from early call of investment securities                                (37)        -      (40)        -
All other                                                                      6         -        6         -
-------------------------------------------------------------------------------------------------------------
TOTAL NONINTEREST INCOME                                                   1,176       378    1,505       652
-------------------------------------------------------------------------------------------------------------

NONINTEREST EXPENSES
Salaries and employee benefits                                               897       822    1,764     1,538
Occupancy and equipment, net                                                 318       322      638       637
Data processing                                                              190       148      338       266
Advertising and promotion                                                      7        27       22        34
Professional fees and services                                                80        85      187       165
Stationery, printing and supplies                                             37        38       79        71
Postage and delivery                                                          25        22       50        46
FDIC and general insurance                                                    54        42      111        84
All other                                                                    271       174      474       301
-------------------------------------------------------------------------------------------------------------
TOTAL NONINTEREST EXPENSES                                                 1,879     1,680    3,663     3,142
-------------------------------------------------------------------------------------------------------------
Earnings before taxes                                                      4,373     2,750    7,411     4,854
Provision for income taxes                                                 1,807     1,106    3,044     1,962
-------------------------------------------------------------------------------------------------------------
NET EARNINGS                                                             $ 2,566   $ 1,644  $ 4,367   $ 2,892
-------------------------------------------------------------------------------------------------------------

BASIC EARNINGS PER SHARE                                                 $  0.55   $  0.42  $  0.93   $  0.74
DILUTED EARNINGS PER SHARE                                               $  0.45   $  0.33  $  0.77   $  0.60
DIVIDENDS PER SHARE                                                      $     -   $     -  $     -   $     -
-------------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to condensed consolidated financial statements.


                                        3
<PAGE>
                INTERVEST BANCSHARES CORPORATION AND SUBSIDIARIES
            CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
                                  (Unaudited)
<TABLE>
<CAPTION>
                                                                 QUARTER ENDED  SIX-MONTHS ENDED
                                                                    JUNE 30,        JUNE 30,
                                                                --------------------------------
($ in thousands)                                                  2003    2002    2003    2002
------------------------------------------------------------------------------------------------
<S>                                                              <C>     <C>     <C>     <C>
------------------------------------------------------------------------------------------------
NET EARNINGS                                                     $2,566  $1,644  $4,367  $2,892
------------------------------------------------------------------------------------------------
Net unrealized holding losses on available-for-sale securities        -       -       -     (46)
Credit for income taxes related to unrealized losses
     on available-for-sale securities                                 -       -       -     (20)
------------------------------------------------------------------------------------------------
OTHER COMPREHENSIVE LOSS, NET OF TAX                                  -       -       -     (26)
------------------------------------------------------------------------------------------------
TOTAL COMPREHENSIVE INCOME, NET OF TAX                           $2,566  $1,644  $4,367  $2,866
------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to condensed consolidated financial statements.


                                        4
<PAGE>
                INTERVEST BANCSHARES CORPORATION AND SUBSIDIARIES
       CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY
                                   (Unaudited)
<TABLE>
<CAPTION>
                                                                                     SIX-MONTHS ENDED
                                                                                         JUNE 30,
                                                                                   ------------------
($ in thousands)                                                                     2003      2002
-----------------------------------------------------------------------------------------------------
<S>                                                                                 <C>      <C>
CLASS A COMMON STOCK
Balance at beginning of period                                                      $ 4,348  $ 3,545
Issuance of 5,200 and 105,650 shares upon the exercise of warrants                        5      105
Issuance of 5,948 shares upon the conversion of debentures                                6        -
-----------------------------------------------------------------------------------------------------
Balance at end of period                                                              4,359    3,650
-----------------------------------------------------------------------------------------------------

CLASS B COMMON STOCK
Balance at beginning of period                                                          355      355
Issuance of 30,000 shares for the acquisition of Intervest Securities Corporation        30        -
-----------------------------------------------------------------------------------------------------
Balance at beginning and end of period                                                  385      355
-----------------------------------------------------------------------------------------------------

ADDITIONAL PAID-IN-CAPITAL, COMMON
Balance at beginning of period                                                       24,134   19,001
Compensation related to vesting of certain Class B stock warrants                        13       13
Compensation related to certain Class A stock warrants modified                         194      117
Issuance of 30,000 shares of Class B stock for the acquisition
   of Intervest Securities Corporation                                                  185        -
Issuance of 5,200 and 105,650 shares of Class A stock upon the exercise of
   warrants, inclusive of tax benefits                                                   47      659
Issuance of 5,948 shares of Class A stock upon the conversion of debentures              36        -
-----------------------------------------------------------------------------------------------------
Balance at end of period                                                             24,609   19,790
-----------------------------------------------------------------------------------------------------

RETAINED EARNINGS
Balance at beginning of period                                                       24,289   17,383
Net earnings for the period                                                           4,367    2,892
-----------------------------------------------------------------------------------------------------
Balance at end of period                                                             28,656   20,275
-----------------------------------------------------------------------------------------------------

ACCUMULATED OTHER COMPREHENSIVE INCOME
Balance at beginning of period                                                            -      111
Net change in accumulated other comprehensive income, net                                 -      (26)
-----------------------------------------------------------------------------------------------------
Balance at end of period                                                                  -       85
-----------------------------------------------------------------------------------------------------

-----------------------------------------------------------------------------------------------------
TOTAL STOCKHOLDERS' EQUITY AT END OF PERIOD                                         $58,009  $44,155
-----------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to condensed consolidated financial statements.


                                        5
<PAGE>
                INTERVEST BANCSHARES CORPORATION AND SUBSIDIARIES
                 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (Unaudited)
<TABLE>
<CAPTION>
                                                                                        SIX-MONTHS ENDED
                                                                                            JUNE 30,
                                                                                     ----------------------
($ in thousands)                                                                        2003        2002
-----------------------------------------------------------------------------------------------------------
<S>                                                                                   <C>        <C>
OPERATING ACTIVITIES
Net earnings                                                                          $  4,367   $   2,892
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization                                                              261         292
Provision for loan loss reserves                                                           774         772
Deferred income tax benefit                                                               (507)       (399)
Amortization of deferred debenture offering costs                                          508         449
Compensation expense related to common stock warrants                                      207         130
Amortization of premiums, fees and discounts, net                                         (590)       (443)
Net loss from sale of foreclosed real estate                                                51           -
Net increase in accrued interest payable on debentures                                     902         815
Net increase in official checks outstanding                                              1,165         961
Net change in all other assets and liabilities                                           2,544         486
-----------------------------------------------------------------------------------------------------------
NET CASH PROVIDED BY OPERATING ACTIVITIES                                                9,682       5,955
-----------------------------------------------------------------------------------------------------------
INVESTING ACTIVITIES
Net decrease in interest-earning time deposits with banks                                2,000         200
Maturities and calls of securities available for sale                                        -         500
Maturities and calls of securities held to maturity                                     61,890      36,950
Purchases of securities held to maturity                                               (39,185)    (67,355)
Net increase in loans receivable                                                       (86,416)    (83,529)
Sale of foreclosed real estate                                                             150           -
Cash acquired through acquisition of Intervest Securities Corporation                      218           -
Purchases of Federal Reserve Bank and Federal Home Loan Bank stock, net                 (1,697)       (450)
Purchases of premises and equipment, net                                                   (87)       (333)
-----------------------------------------------------------------------------------------------------------
NET CASH USED IN INVESTING ACTIVITIES                                                  (63,127)   (114,017)
-----------------------------------------------------------------------------------------------------------
FINANCING ACTIVITIES
Net increase in demand, savings, NOW and money market deposits                           8,700      54,092
Net increase in certificates of deposit                                                 38,730      49,224
Net increase in mortgage escrow funds payable                                            3,032       3,151
Principal repayments of debentures                                                      (1,400)     (2,500)
Principal repayments of note payable                                                        (6)         (4)
Proceeds from issuance of debentures, net of issuance costs                              6,893       5,295
Proceeds from issuance of common stock, net of issuance costs                               52         764
-----------------------------------------------------------------------------------------------------------
NET CASH PROVIDED BY FINANCING ACTIVITIES                                               56,001     110,022
-----------------------------------------------------------------------------------------------------------
Net increase in cash and cash equivalents                                                2,556       1,960
Cash and cash equivalents at beginning of period                                        30,849      24,409
-----------------------------------------------------------------------------------------------------------
CASH AND CASH EQUIVALENTS AT END OF PERIOD                                            $ 33,405   $  26,369
-----------------------------------------------------------------------------------------------------------
SUPPLEMENTAL DISCLOSURES
Cash paid during the period for:
  Interest                                                                            $ 12,331   $  11,292
  Income taxes                                                                           3,618       2,754
Noncash activities:
  Transfer of loan to foreclosed real estate, net of chargeoff                               -       1,081
  Loan to finance sale of foreclosed real estate                                           880           -
  Purchase of premises with note payable                                                     -         275
  Conversion of debentures into Class A common stock                                        42           -
  Accumulated other comprehensive income,
     change in unrealized loss on securities available for sale, net of tax                  -         (26)
-----------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to condensed consolidated financial statements.


                                        6
<PAGE>
                INTERVEST BANCSHARES CORPORATION AND SUBSIDIARIES
        NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
--------------------------------------------------------------------------------

NOTE  1  -  PRINCIPLES OF CONSOLIDATION, BASIS OF PRESENTATION, USE OF ESTIMATES
            AND  DESCRIPTION  OF  BUSINESS

The  condensed  consolidated  financial  statements  of  Intervest  Bancshares
Corporation  and  Subsidiaries  in  this report have not been audited except for
information  derived  from the audited Consolidated Balance Sheet as of December
31,  2002.  The  statements  should be read in conjunction with the consolidated
financial  statements  and notes thereto included in the Company's Annual Report
to  Stockholders  on  Form  10-K  for  the  year  ended  December  31,  2002.

The  financial  statements  include  the  accounts  of  Intervest  Bancshares
Corporation  (a  financial holding company referred to by itself as the "Holding
Company")  and its subsidiaries, Intervest National Bank (the "Bank"), Intervest
Mortgage  Corporation,  Intervest Securities Corporation and Intervest Statutory
Trust  I.  All  the  entities are referred to collectively as the "Company" on a
consolidated  basis. All significant intercompany balances and transactions have
been  eliminated  in  consolidation. Certain reclassifications have been made to
prior year amounts to conform to the current year's presentation. The accounting
and reporting policies of the Company conform to accounting principles generally
accepted  in  the  United  States of America and to general practices within the
banking  industry.

In  preparing  the fnancial statements, management is 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  relate  to the determination of the allowance for loan loss
reserves and the valuation allowances for deferred tax assets. In the opinion of
management,  all  material  adjustments  necessary  for  a  fair presentation of
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.  The  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.

The  Holding Company's primary business is the operation of its subsidiaries. It
does  not  engage  in  any  other  substantial  business activities other than a
limited  amount  of real estate mortgage lending. From time to time, the Holding
Company  also  sells debentures to raise funds for working capital purposes. The
Holding  Company  became a financial holding company effective January 23, 2003.

The  Bank  is  a nationally chartered, full-service commercial bank that has its
headquarters  and full-service banking office in Rockefeller Center, in New York
City,  and  a  total  of  five  full-service banking offices in Pinellas County,
Florida  -  four  in  Clearwater  and one in South Pasadena. The Bank conducts a
personalized commercial and consumer banking business and attracts deposits from
the  areas  served  by  its  banking  offices. It also provides internet banking
services  through  its  web  site:  www.intervestnatbank.com,  which can attract
deposit  customers from outside its primary market areas. The deposits, together
with  funds  derived  from  other  sources,  are  used to originate real estate,
commercial  and  consumer  loans and to purchase investment securities. The Bank
emphasizes  multifamily  and  commercial  real  estate  lending.

Intervest  Mortgage  Corporation  is  a  mortgage  investment company located in
Rockefeller  Center in New York City. It is engaged in the real estate business,
including the origination and purchase of real estate mortgage loans, consisting
of  first  mortgage,  junior  mortgage and wraparound mortgage loans. Its wholly
owned  subsidiaries,  Intervest  Distribution  Corporation  and Intervest Realty
Servicing  Corporation  are  nonoperating  entities  that provide administrative
services to Intervest Mortgage Corporation. Intervest Mortgage Corporation sells
debentures  to  provide  funding  for  its  business.

Intervest  Securities  Corporation  is a broker/dealer registered in nine states
and  is an NASD and SIPC member firm. It has and will continue to participate as
a  selected  dealer  from  time  to  time in offerings of debt securities of the
Company, primarily those of Intervest Mortgage Corporation. On June 2, 2003, the
Holding  Company  acquired  all  of  the  outstanding capital stock of Intervest
Securities  Corporation  for  30,000 shares of its Class B common stock that was
newly  issued  for  this  transaction.  Intervest Securities Corporation's total
assets  consisted  of approximately $218,000 of cash at the time of acquisition.
Prior  to  the  acquisition,  Intervest Securities Corporation was an affiliated
entity in that its sole shareholder is the spouse of the Chairman of the Holding
Company.  The  acquisition was accounted for at historical cost and accordingly,
the recorded assets, liabilities and shareholders' equity of both companies were
combined  and  recorded at their historical cost amounts. No restatements of the
Company's  prior  period  consolidated  financial statements in this report have
been made because the financial results of Intervest Securities Corporation were
diminimus.


                                        7
<PAGE>
                INTERVEST BANCSHARES CORPORATION AND SUBSIDIARIES
        NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
--------------------------------------------------------------------------------

NOTE  1  -  PRINCIPLES OF CONSOLIDATION, BASIS OF PRESENTATION, USE OF ESTIMATES
            AND  DESCRIPTION  OF  BUSINESS  -  CONTINUED

Intervest  Statutory Trust I was formed in December 2001 for the sole purpose of
issuing  and  administering  $15,000,000  of  capital  securities  as more fully
described  in  note  9 to the consolidated financial statements in the Company's
Annual Report to Stockholders on Form 10-K for the year ended December 31, 2002.
It  does  not  conduct  any  trade  or  business.

NOTE  2  -  ALLOWANCE  FOR  LOAN  LOSS  RESERVES

Activity  in  the  allowance for loan loss reserves for the periods indicated is
summarized  as  follows:

<TABLE>
<CAPTION>
                                    Quarter Ended  Six-Months Ended
                                       June 30,         June 30,
                                   ---------------------------------
($ in thousands)                     2003    2002     2003    2002
--------------------------------------------------------------------
<S>                                 <C>     <C>      <C>     <C>
Balance at beginning of period      $4,955  $3,833   $4,611  $3,380
Provision charged to operations        430     426      774     772
Recoveries of previous chargeoffs        -       -        -     107
Chargeoffs                               -    (150)       -    (150)
--------------------------------------------------------------------
Balance at end of period            $5,385  $4,109   $5,385  $4,109
--------------------------------------------------------------------
</TABLE>

NOTE  3  -  EARNINGS  PER  SHARE  (EPS)

Basic  EPS is calculated by dividing net earnings by the weighted-average number
of  shares  of  common stock outstanding.  Diluted EPS is calculated by dividing
adjusted  net  earnings by the weighted-average number of shares of common stock
outstanding  and  dilutive potential common stock shares that may be outstanding
in  the  future.  Potential  common  stock  shares  may  arise  from outstanding
dilutive  common stock warrants (as computed by the "treasury stock method") and
convertible  debentures  (as computed by the "if converted method"). Diluted EPS
considers  the  potential dilution that could occur if the Company's outstanding
stock  warrants and convertible debentures were converted into common stock that
then  shared  in  the  Company's  adjusted  earnings  (as  adjusted for interest
expense,  net  of  tax,  that  would  no  longer  occur  if  the debentures were
converted).

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

<TABLE>
<CAPTION>
                                                                             Quarter Ended          Six-Months Ended
                                                                                June 30,                June 30,
-----------------------------------------------------------------------------------------------------------------------
($in thousands, except share and per share amounts)                         2003        2002        2003        2002
-----------------------------------------------------------------------------------------------------------------------
<S>                                                                      <C>         <C>         <C>         <C>
Basic earnings per share:
  Net earnings applicable to common stockholders                         $    2,566  $    1,644  $    4,367  $    2,892
  Average number of common shares outstanding                             4,714,344   3,959,542   4,708,747   3,930,577
-----------------------------------------------------------------------------------------------------------------------
Basic net earnings per share amount                                      $     0.55  $     0.42  $     0.93  $     0.74
-----------------------------------------------------------------------------------------------------------------------
Diluted earnings per share:
  Net earnings applicable to common stockholders                         $    2,566  $    1,644  $    4,367  $    2,892
  Adjustment to net earnings from assumed conversion of debentures (1)          117         108         231         213
                                                                         ----------------------------------------------
  Adjusted net earnings for diluted earnings per share computation       $    2,683  $    1,752  $    4,598  $    3,105
                                                                         ----------------------------------------------
Average number of common shares outstanding:
  Common shares outstanding                                               4,714,344   3,959,542   4,708,747   3,930,577
  Potential dilutive shares resulting from exercise of warrants (2)         292,458     417,965     266,197     324,577
  Potential dilutive shares resulting from conversion of debentures (3)     983,656     952,502     983,656     952,502
                                                                         ----------------------------------------------
Total average number of common shares outstanding used for dilution       5,990,458   5,330,009   5,958,600   5,207,656
-----------------------------------------------------------------------------------------------------------------------
Diluted net earnings per share amount                                    $     0.45  $     0.33  $     0.77  $     0.60
-----------------------------------------------------------------------------------------------------------------------
<FN>
(1)  Represents interest expense on dilutive convertible debentures, net of taxes, that would not occur if they were
     assumed converted.
(2)  Warrants to purchase 1,132,000 shares of common stock at prices ranging from $10.00 to $10.01 per share were not
     considered in the 2002 six-month computation because their exercise price per share exceeded the average market
     price of Class A common stock during the period. All outstanding warrants were considered for the remaining EPS
     computations.
(3)  Convertible debentures (principal and accrued interest) outstanding at June 30, 2003 and June 30, 2002 totaling
     $9,846,000 and $9,535,000, respectively, were convertible into common stock at a price of $10.01 per share.
</TABLE>


                                        8
<PAGE>
                INTERVEST BANCSHARES CORPORATION AND SUBSIDIARIES
        NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
        ----------------------------------------------------------------

NOTE  4  -  BANK  REGULATORY  CAPITAL

The  Bank  is  designated  as  a well-capitalized institution as defined in FDIC
regulations,  which  require  minimum  Tier  1  leverage  and  Tier  1 and total
risk-based  ratios  of  5%,  6%  and 10%, respectively. Management believes that
there  are  no  current conditions or events outstanding which would change this
designation.

At  June  30,  2003, the actual capital of the Bank on a percentage basis was as
follows:

<TABLE>
<CAPTION>
                                                           Actual   Minimum       To Be Considered
                                                           Ratios   Requirement   Well Capitalized
                                                           -------  ------------  -----------------
<S>                                                        <C>      <C>           <C>
  Total capital to risk-weighted assets                     11.47%     8.00%           10.00%
  Tier 1 capital to risk-weighted assets                    10.47%     4.00%            6.00%
  Tier 1 capital to total average assets - leverage ratio    8.71%     4.00%            5.00%
</TABLE>

NOTE  5  -  COMMON  STOCK  WARRANTS

The  Holding  Company  has  common  stock  warrants outstanding that entitle the
registered  holders  thereof  to  purchase  one  share  of common stock for each
warrant.  All  warrants  are  currently  exercisable, except for certain Class B
common  stock  warrants. The warrants have been issued in connection with public
stock  offerings, to directors and employees of the Company and to outside third
parties  for  performance of services. In 2001, the Holding Company modified the
terms of its Class A and Class B warrants as follows: the expiration date of all
warrants  exercisable  at  $6.67  per  share were extended one year beyond their
original  expiration  dates effective October 4, 2001, and the exercise price of
certain  Class  A  warrants  (exercisable  at  $12.50 and $16.00 per share as of
December  31,  2001) were reduced to $10.01 per share commencing January 1, 2002
until  their  original expiration date of December 31, 2002. In 2002, the $10.01
per  share  warrants were further modified by extending their expiration date to
December  31,  2003.

Data  concerning  common  stock  warrants  is  as  follows:

<TABLE>
<CAPTION>
                                                             Exercise Price Per Warrant
                                                             --------------------------
                                                                                                Total         Wtd-Avg
Class A Common Stock Warrants:                             $   6.67  $  10.01   $  10.01     Warrants  Exercise Price
----------------------------------------------------------------------------------------------------------------------
<S>                                                        <C>       <C>        <C>         <C>        <C>
Outstanding at December 31, 2002                            501,465   931,545    122,000    1,555,010         $ 8.93
Exercised during first six months of 2003                         -    (5,200)         -       (5,200)        $10.01
------------------------------------------------------------------------------------------------------
Outstanding at June 30, 2003                                501,465   926,345    122,000    1,549,810         $ 8.93
------------------------------------------------------------------------------------------------------
Remaining contractual life in years at June 30, 2003  (1)       3.6       0.5        0.5          1.5
----------------------------------------------------------------------------------------------------------------------
<FN>
(1)  The  Holding  Company  may,  at  its  sole  discretion,  set  an  earlier  expiration  date.
</TABLE>
<TABLE>
<CAPTION>
                                                   Exercise Price Per Warrant
                                                   --------------------------
                                                                                     Total         Wtd-Avg
Class B Common Stock Warrants:                            $   6.67  $10.00 (1)    Warrants  Exercise Price
<S>                                                       <C>       <C>           <C>       <C>
-----------------------------------------------------------------------------------------------------------
Outstanding at December 31, 2002 and June 30, 2003         145,000      50,000     195,000          $7.52
------------------------------------------------------------------------------------------
Remaining contractual life in years at June 30, 2003           4.6         4.6         4.6
-----------------------------------------------------------------------------------------------------------
<FN>
(1)  At June 30, 2003, 42,600 of these warrants were immediately exercisable. An additional 7,100
     warrants vest and become exercisable on April 27th of 2004. The warrants, which expire on
     January 31, 2008, become fully vested earlier upon certain conditions.
</TABLE>

The  Company elects to use the intrinsic value-based method prescribed under APB
Opinion  No.  25,  "Accounting for Stock Issued to Employees," in accounting for
its  stock  warrants.  Under  this method, compensation expense related to stock
warrants  granted to employees is the excess, if any, of the market price of the
stock  as  of  the  grant  or  modification  date over the exercise price of the
warrant.

For  warrants  granted  to  employees whose exercise price was reduced to $10.01
effective  January  1,  2002  and  whose  expiration  date was extended in 2002,
compensation  expense  is  being  recorded  under  variable  rate  accounting as
prescribed  by  APB  25  and  related interpretations. For these warrants, which
total  138,500,  compensation expense is being recorded in salaries and employee
benefits  expense  with  a  corresponding  credit  to  paid  in  capital  in the
consolidated  financial  statements. Compensation related to these warrants will
fluctuate  up  or  down  until  December  31, 2003 and will be a function of the
Company's  Class  A  common  stock  price and number of warrants outstanding and
exercised.


                                        9
<PAGE>
                INTERVEST BANCSHARES CORPORATION AND SUBSIDIARIES
        NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
        ----------------------------------------------------------------

NOTE  5  -  COMMON  STOCK  WARRANTS,  CONTINUED

Compensation  expense  recorded  in  connection  with  warrants is summarized as
follows:

<TABLE>
<CAPTION>
                                                          Quarter Ended    Six-Months Ended
                                                             June 30,          June 30,
                                                          -------------    ----------------
($ in thousands)                                           2003   2002       2003   2002
-------------------------------------------------------------------------------------------
<S>                                                        <C>    <C>        <C>    <C>
Compensation expense recorded in connection with vesting
    of Class B warrants during the period                  $   6  $   6      $  13  $  13
Compensation expense recorded in connection with Class A
    common stock warrants whose terms were modified          127    117        194    117
-------------------------------------------------------------------------------------------
                                                           $ 133  $ 123      $ 207  $ 130
-------------------------------------------------------------------------------------------
</TABLE>

Had  compensation  expense  been determined based on the estimated fair value of
the  warrants  in  accordance  with  SFAS  No.  123, "Accounting for Stock-Based
Compensation,"  the Company's net earnings and earnings per share would not have
been  different  from  the  amounts  reported  from the periods included in this
report  on  Form  10-Q.


                                       10
<PAGE>
                INTERVEST BANCSHARES CORPORATION AND SUBSIDIARIES

               REVIEW BY INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS

     Hacker,  Johnson  &  Smith,  P.A., P.C. the Company's independent certified
public  accountants, have made a limited review of the financial data as of June
30,  2003  and for the three- and six-month periods ended June 30, 2003 and 2002
presented  in  this  document,  in  accordance with standards established by the
American Institute of Certified Public Accountants. As part of Hacker, Johnson &
Smith, P.A., P.C.'s review, Eisner, LLP was relied upon for their limited review
of  Intervest  Mortgage  Corporation,  a wholly owned subsidiary of the Company.

     Their report furnished pursuant to Article 10 of Regulation S-X is included
herein.


                                       11
<PAGE>
          REPORT ON REVIEW BY INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS

Intervest  Bancshares  Corporation
New  York,  New  York:

     We  have  reviewed the accompanying condensed consolidated balance sheet of
Intervest Bancshares Corporation and Subsidiaries (the "Company") as of June 30,
2003,  and  the  related  condensed  consolidated  statements  of  earnings  and
comprehensive  income  for  the three- and six-month periods ended June 30, 2003
and  2002,  and  the  related  condensed  consolidated  statements of changes in
stockholders'  equity  and  cash  flows for the six-month periods ended June 30,
2003  and  2002.  These  financial  statements  are  the  responsibility  of the
Company's  management.

     We  were  furnished the report of other accountants on their reviews of the
interim  financial  information  of  Intervest Mortgage Corporation, whose total
assets  as of June 30, 2003 constituted 14.1% of the related consolidated total,
and  whose  net  interest  income,  noninterest  income and net earnings for the
three-  and  six-month  periods then ended, constituted 11.3%, 15.5%, and 18.9%;
and  10.2%,  16.1%  and  17.6%,  respectively,  and  whose  net interest income,
noninterest  income  and net earnings for the three- and six-month periods ended
June  30, 2002, constituted 17.4%, 22.5%, and 29.7%; and 15.6%, 23.6% and 26.1%,
respectively  of  the  related  consolidated  totals.

     We  conducted  our  reviews in accordance with standards established by the
American  Institute  of  Certified  Public  Accountants.  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 auditing standards generally accepted in the United States of
America,  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 and the review report of other accountants, 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  accounting  principles generally accepted in the United States of America.

     We have previously audited, in accordance with auditing standards generally
accepted  in  the United States of America, the consolidated balance sheet as of
December  31,  2002,  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 January 24,
2003,  we,  based  on  our audits and the report of other auditors, 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, 2002 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  6,  2003


                                       12
<PAGE>
          REPORT ON REVIEW BY INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS

Board  of  Directors  and  Stockholder
Intervest  Mortgage  Corporation
New  York,  New  York:

     We  have  reviewed  the  condensed  consolidated balance sheet of Intervest
Mortgage  Corporation  and Subsidiaries (the "Company") as of June 30, 2003, and
the  related  condensed consolidated statements of operations for the three- and
six-month  periods  ended  June  30,  2003  and  2002, and the related condensed
consolidated  statements  of  changes in stockholder's equity and cash flows for
the  six-month  periods  ended  June  30,  2003  and  2002 (all of which are not
presented  separately herein). These financial statements are the responsibility
of  the  Company's  management.

     We  conducted  our  review  in accordance with standards established by the
American  Institute  of  Certified  Public  Accountants.  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 auditing standards generally accepted in the United States of
America,  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  review, 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 accounting principles generally accepted
in  the  United  States  of  America.

     We  previously  audited,  in  accordance  with auditing standards generally
accepted  in the United States of America, the consolidated balance sheet of the
Company  as  of  December  31,  2002  and the related consolidated statements of
operations,  changes  in  stockholder's  equity and cash flows for the year then
ended  (not  presented  separately  herein), and in our report dated January 23,
2003,  we  expressed  an  unqualified  opinion  on  those consolidated financial
statements.  In  our  opinion,  the  information  set  forth  in  the  condensed
consolidated  balance  sheet  as  of  December  31, 2002 is fairly stated in all
material  respects  in  relation to the consolidated balance sheet from which it
has  been  derived.

/s/  Eisner,  LLP
-----------------
EISNER,LLP
New  York,  New  York
July  22,  2003


                                       13
<PAGE>
ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF  OPERATIONS

                                     GENERAL
                                     -------

Intervest  Bancshares Corporation has four wholly owned subsidiaries - Intervest
National  Bank, Intervest Mortgage Corporation, Intervest Securities Corporation
and  Intervest  Statutory  Trust  I  (hereafter  referred to collectively as the
"Company"  on  a  consolidated  basis).  Intervest  Bancshares  Corporation  and
Intervest National Bank may be referred to individually as the "Holding Company"
and  the  "Bank,"  respectively. For a discussion of the Company's business, see
note  1  to  the  condensed  consolidated  financial statements included in this
report.

The  Company's profitability depends primarily on its net interest income, which
is  the  difference  between interest income generated from its interest-earning
assets  and  the  interest expense incurred on its interest-bearing liabilities.
Net  interest  income  is  dependent upon the interest-rate spread, which is the
difference  between  the average yield earned on interest-earning assets and the
average  rate paid on interest-bearing liabilities. When interest-earning assets
approximate  or  exceed interest-bearing liabilities, any positive interest rate
spread  will  generate net interest income. The interest rate spread is impacted
by  interest  rates,  deposit  flows  and  loan  demand.

The  Company's  profitability  is  also affected by the level of its noninterest
income  and  expenses, provision for loan loss reserves and effective income tax
rate.  Noninterest income consists mostly of loan and other banking fees as well
as  income  from  loan  prepayments. The amount and timing of, as well as income
from,  loan  prepayments,  if  any,  cannot  be  predicted  and  can  fluctuate
significantly. Normally, the number of instances of prepayment of mortgage loans
tends  to  increase  during  periods  of  declining  interest rates and tends to
decrease  during  periods  of  increasing  interest rates. Many of the Company's
mortgage  loans include prepayment provisions, and others prohibit prepayment of
indebtedness entirely. Noninterest expense consists of compensation and benefits
expense, occupancy and equipment expenses, data processing expenses, advertising
expense,  professional  fees,  insurance  expense  and other operating expenses.
Additionally,  the  Company's profitability is significantly affected by general
economic  and  competitive  conditions,  changes  in  market  interest  rates,
government  policies and actions of regulatory authorities. Since the properties
underlying  the  Company's  mortgages are concentrated in the New York City area
and  the  State  of  Florida, the economic conditions in those areas can have an
impact  on  the  Company's  results  of  operations.

    COMPARISON OF FINANCIAL CONDITION AT JUNE 30, 2003 AND DECEMBER 31, 2002
    ------------------------------------------------------------------------

OVERVIEW
--------

Total  assets  at  June 30, 2003 increased to $749,777,000, from $685,979,000 at
December 31, 2002. Total liabilities at June 30, 2003 increased to $691,768,000,
from  $632,853,000  at  December  31,  2002.  Stockholders'  equity increased to
$58,009,000  at June 30, 2003, from $53,126,000 at year-end 2002. Book value per
common  share rose to $12.23 per share at June 30, 2003, from $11.30 at December
31,  2002.

Selected  balance  sheet  information  as  of  June  30,  2003  follows:

<TABLE>
<CAPTION>

                                                    Intervest    Intervest   Intervest    Intervest     Inter-
                                          Holding    National     Mortgage   Statutory   Securities    Company
($ in thousands)                          Company        Bank         Corp     Trust I         Corp    Balances    Consolidated
-------------------------------------------------------------------------------------------------------------------------------
<S>                                      <C>        <C>         <C>         <C>         <C>          <C>         <C>
Cash and cash equivalents                $    866   $  21,880   $  11,708   $        -  $       465  $  (1,514)  $      33,405
Securities held to maturity, net                -     121,833           -       15,464            -    (15,464)        121,833
FRB and FHLB stock                              -       2,805           -            -            -          -           2,805
Loans receivable, net of deferred fees     14,897     470,157      90,921            -            -          -         575,975
Allowance for loan loss reserves              (74)     (5,117)       (194)           -            -          -          (5,385)
Investment in subsidiaries                 70,504           -           -            -            -    (70,504)              -
All other assets                            1,277      15,351       4,489           59            -        (32)         21,144
-------------------------------------------------------------------------------------------------------------------------------
Total assets                             $ 87,470   $ 626,909   $ 106,924   $   15,523  $       465  $ (87,514)  $     749,777
-------------------------------------------------------------------------------------------------------------------------------
Deposits                                 $      -   $ 555,192   $       -   $        -  $         -  $  (1,804)  $     553,388
Subordinated debentures payable            25,854           -      80,100            -            -    (15,464)         90,490
Junior debentures payable
   capital securities                           -           -           -       15,000            -          -          15,000
Note payable                                    -         260           -            -            -          -             260
Accrued interest payable on
   all debentures                           3,521           -      11,255           57            -        (59)         14,774
All other liabilities                          86      16,065       1,386            2            -        317          17,856
-------------------------------------------------------------------------------------------------------------------------------
Total liabilities                          29,461     571,517      92,741       15,059            -    (17,010)        691,768
-------------------------------------------------------------------------------------------------------------------------------
Stockholders' equity                       58,009      55,392      14,183          464          465    (70,504)         58,009
-------------------------------------------------------------------------------------------------------------------------------
Total liabilities and
   stockholders' equity                  $ 87,470   $ 626,909   $ 106,924   $   15,523  $       465  $ (87,514)  $     749,777
-------------------------------------------------------------------------------------------------------------------------------
</TABLE>


                                       14
<PAGE>
A  comparison  of  selected  balance  sheet  information as of June 30, 2003 and
December  31,  2002  follows:

<TABLE>
<CAPTION>
                                                                  At June 30, 2003       At December 31, 2002
                                                                  ----------------       --------------------
                                                               Carrying      % of       Carrying      % of
($in thousands)                                                  Value    Total Assets    Value    Total Assets
----------------------------------------------------------------------------------------------------------------
<S>                                                             <C>       <C>            <C>       <C>
Cash and cash equivalents                                       $ 33,405           4.5%  $ 30,849           4.4%
Time deposits with banks                                               -             -      2,000           0.3
Securities held to maturity, net                                 121,833          16.2    145,694          21.2
FRB and FHLB stock                                                 2,805           0.4      1,108           0.2
Loans receivable, net of deferred fees and loan loss reserves    570,590          76.1    485,301          70.7
Foreclosed real estate                                                 -             -      1,081           0.2
All other assets                                                  21,144           2.8     19,946           3.0
----------------------------------------------------------------------------------------------------------------
Total assets                                                    $749,777         100.0%  $685,979         100.0%
----------------------------------------------------------------------------------------------------------------
Deposits                                                        $553,388          73.8%  $505,958          73.8%
Subordinated debentures payable                                   90,490          12.1     84,430          12.3
Junior debentures payable-capital securities                      15,000           2.0     15,000           2.2
Note payable                                                         260             -        266           0.1
Accrued interest payable on all debentures                        14,774           2.0     13,872           2.0
All other liabilities                                             17,856           2.4     13,327           1.9
----------------------------------------------------------------------------------------------------------------
Total liabilities                                                691,768          92.3    632,853          92.3
----------------------------------------------------------------------------------------------------------------
Stockholders' equity                                              58,009           7.7     53,126           7.7
----------------------------------------------------------------------------------------------------------------
Total liabilities and stockholders' equity                      $749,777         100.0%  $685,979         100.0%
----------------------------------------------------------------------------------------------------------------
</TABLE>

CASH  AND  CASH  EQUIVALENTS
----------------------------

Cash  and  cash  equivalents  increased  to  $33,405,000  at June 30, 2003, from
$30,849,000  at  December  31, 2002, as reflected in a higher level of overnight
federal  fund  investments.  This  category  includes  federal  funds  sold  and
interest-bearing  and  noninterest-bearing  cash  balances with banks, and other
short-term  investments  that  have original maturities of three months or less.
The  short-term investments are normally comprised of commercial paper issued by
large  commercial banks, certificates of deposit and U.S. government securities.
The  level  of  cash  and  cash equivalents fluctuates based on various factors,
including  liquidity  needs,  loan  demand,  deposit flows, calls of securities,
repayments  of  borrowed  funds  and  alternative  investment  opportunities.

SECURITIES  HELD  TO  MATURITY,  NET
------------------------------------

Securities  held  to  maturity  decreased to $121,833,000 at June 30, 2003, from
$145,694,000  at December 31, 2002. The decrease was due to maturities and early
calls  exceeding new purchases during the period. The portfolio consists of debt
obligations of FNMA, FHLB, FHLMC, SLMA and FFCB with a weighted-average yield of
approximately  2.12%  and  a weighted-average remaining maturity of 1.7 years at
June  30,  2003,  compared to 2.39% and 1.6 years, respectively, at December 31,
2002.  The  securities  are  fixed  rate  or  have  predetermined scheduled rate
increases,  and  some  have  call  features  that  allow  the issuer to call the
security  before  its  stated  maturity  without  penalty.  The Company normally
invests  in  short-to-medium  term  security investments to emphasize liquidity.

FEDERAL  RESERVE  BANK  AND  FEDERAL  HOME  LOAN  BANK  STOCK
-------------------------------------------------------------

In  order  for the Bank to be a member of the Federal Reserve Bank (FRB) and the
Federal Home Loan Bank (FHLB), the Bank maintains an investment in their capital
stock,  each of which pay a dividend (currently 6% for the FRB and approximately
5% for the FHLB). The total investment, which amounted to $2,805,000 at June 30,
2003,  compared to $1,108,000 at December 31, 2002, fluctuates based on specific
factors  (the  Bank's  capital  level  for  the FRB and the Bank's loans for the
FHLB).  The  Bank became a member of the FHLB during the second quarter of 2003.

LOANS  RECEIVABLE,  NET  OF  DEFERRED  FEES AND ALLOWANCE FOR LOAN LOSS RESERVES
--------------------------------------------------------------------------------

Loans receivable, net of deferred fees and the allowance for loan loss reserves,
increased  to  $570,590,000 at  June 30, 2003, from $485,301,000 at December 31,
2002.  The  growth  reflected  new  originations  of  commercial real estate and
multifamily mortgage loans, partially offset by principal repayments. Commercial
real  estate and multifamily real estate properties collateralized almost all of
the  loans  in  the  Company's loan portfolio. At June 30, 2003 and December 31,
2002,  there  were  no  loans  classified  as  nonaccrual  or  impaired.


                                       15
<PAGE>
At  June  30, 2003, the allowance for loan loss reserves amounted to $5,385,000,
compared  to $4,611,000 at December 31, 2002. The allowance represented 0.93% of
total  loans  (net  of  deferred fees) outstanding at June 30, 2003, compared to
0.94%  at December 31, 2002. The increase in the allowance was due to provisions
aggregating  $774,000  during  the  period  resulting  from  loan  growth.

The  Company  monitors  its loan portfolio to determine the appropriate level of
the  allowance  for  loan  loss reserves based on various factors. These factors
include:  the  type and level of loans outstanding; volume of loan originations;
overall  portfolio  quality;  loan  concentrations;  specific  problem  loans,
historical  chargeoffs  and  recoveries; adverse situations which may affect the
borrowers'  ability  to  repay;  and  management's assessment of the current and
anticipated  economic  conditions  in  the  Company's  lending  regions.

FORECLOSED  REAL  ESTATE
------------------------

At  June  30,  2003,  there  was  no  foreclosed  real  estate,  compared to one
commercial  real estate property located in the State of Florida with a carrying
value  of  $1,081,000  at year-end 2002. In the second quarter of 2003, the Bank
sold  this  property for net proceeds of approximately $1,030,000 (consisting of
cash,  after  selling  costs, of $150,000 and a mortgage of $880,000 provided by
the  Bank).  The  net  loss of $51,000 from the sale was included in noninterest
expenses  (foreclosed  real  estate  expense)  in  the consolidated statement of
earnings.

ALL  OTHER  ASSETS
------------------

The following table sets forth the composition of the caption "All other assets"
in the table on page 15 as follows:

<TABLE>
<CAPTION>
                                                 At June 30,  At December 31,
                                                 -----------  ---------------
     ($in thousands)                                2003          2002
     --------------------------------------------------------------------
<S>                                                <C>           <C>
     Accrued interest receivable                   $ 4,138       $ 4,263
     Loans fee receivable                            4,711         3,706
     Premises and equipment, net                     5,924         6,098
     Deferred income tax asset                       2,504         1,997
     Deferred debenture offering costs, net          3,595         3,498
     All other                                         272           384
     --------------------------------------------------------------------
                                                   $21,144       $19,946
     --------------------------------------------------------------------
</TABLE>

Accrued  interest  receivable  fluctuates based on the level of interest-earning
assets  and  the  timing  of  interest  payments  received  therefrom.

Loan fees receivable are fees due to the Company in accordance with the terms of
mortgage  loans.  Such  amounts are generally due upon the full repayment of the
loan.  This  fee is recorded as deferred income at the time a loan is originated
and  is  then  amortized to interest income over the life of the loan as a yield
adjustment.  The  increase was due to an increase in mortgage loan originations.

Premises  and  equipment  is  detailed  in  note 5 to the consolidated financial
statements  in  the Company's Annual Report to Stockholders on Form 10-K for the
year  ended  December  31,  2002.

The deferred income tax asset relates primarily to the unrealized tax benefit on
the Company's allowance for loan loss reserves, depreciation, and organizational
start-up  costs.  These  charges  have  been  expensed  for  financial statement
purposes,  but  are  not  all  currently deductible for income tax purposes. The
ultimate  realization of the deferred tax asset is dependent upon the generation
of  sufficient  taxable  income by the Company during the periods in which these
temporary  differences  become deductible for tax purposes.  Management believes
that  it  is  more likely than not that the Company's deferred tax asset will be
realized because the Company expects to generate sufficient taxable earnings and
accordingly,  a  valuation  allowance for deferred tax assets is not maintained.

Deferred debenture offering costs consist primarily of underwriters' commissions
and  are  amortized  over  the  terms of the debentures. The increase was due to
$554,000  of  costs incurred by Intervest Mortgage Corporation in the first half
of  2003  in  connection  with  the  sale of its Series 01/21/03 debentures, and
$53,000  incurred  to  date  with  respect  to  a new series as described below,
partially  offset  by  normal amortization during the period. Intervest Mortgage
Corporation  filed  a  registration  statement  in the second quarter of 2003 to
issue  subordinated  debentures  in  the  aggregate  principal  amount  of up to
$8,500,000.  These  debentures  are  expected to be sold in the third quarter of
2003.


                                       16
<PAGE>
DEPOSIT  LIABILITIES
--------------------

Deposit  liabilities  increased  to  $553,388,000  at  June  30,  2003,  from
$505,958,000  at  December  31,  2002,  primarily  reflecting increases in money
market  and  certificate  of  deposit  accounts  of  $6,872,000 and $38,730,000,
respectively.  At  June  30,  2003,  certificate  of  deposit  accounts  totaled
$363,713,000  and  checking,  savings  and  money  market  accounts  aggregated
$189,675,000.  The  same categories of deposit accounts totaled $324,983,000 and
$180,975,000,  respectively,  at  December  31,  2002.  Certificate  of  deposit
accounts  represented 66% of total deposits at June 30, 2003 and 64% at December
31,  2002.

DEBENTURES  PAYABLE,  RELATED  ACCRUED  INTEREST  PAYABLE  AND  TRUST  PREFERRED
--------------------------------------------------------------------------------
SECURITIES
----------

At  June  30,  2003,  debentures  payable  amounted  to $90,490,000, compared to
$84,430,000  at year-end 2002. The increase was due to the sale of debentures by
Intervest Mortgage Corporation (Series 01/21/03 totaling $7,500,000 in principal
amount and maturing at various times through July 1, 2010) as part of its normal
funding of its mortgage loan originations. This increase was partially offset by
the  maturity  and repayment of $1,400,000 of its Series 11/10/98 debentures and
the  conversion of the Holding Company's convertible debentures in the aggregate
principal  amount of $40,000 into shares of Class A common stock at the election
of  the  debenture  holders.

The  sale  of the aforementioned debentures, after underwriter's commissions and
other  issuance costs, resulted in net proceeds of $6,935,000. At June 30, 2003,
Intervest  Mortgage  Corporation  had  $80,100,000  of  debentures  payable
outstanding,  compared  to  $74,000,000  at  December  31,  2002.

At  June  30,  2003,  the  Holding Company had $10,390,000 of debentures payable
outstanding,  of which $6,890,000 were convertible into its Class A common stock
at  a  current  conversion  price  of $10.01 per share through      December 31,
2003.

At  June 30, 2003 and December 31, 2002, the Holding Company, through its wholly
owned  subsidiary  Intervest  Statutory  Trust I, has Trust Preferred Securities
(Junior  Debentures  Payable)  outstanding  totaling $15,000,000 that qualify as
regulatory  capital.

At  June  30,  2003,  accrued  interest  payable  on  all debentures amounted to
$14,774,000, compared to $13,872,000 at year-end 2002. Nearly all of the accrued
interest payable is due and payable at the maturity of various debentures. For a
further  discussion  of  all  the  debentures,  including  conversion prices and
redemption  premiums, see notes 7 and 9 to the consolidated financial statements
included  in  the  Company's  Annual Report to Stockholders on Form 10-K for the
year  ended  December  31,  2002.

NOTE  PAYABLE
-------------

At  June  30,  2003 and December 31, 2002, note payable amounted to $260,000 and
$266,000,  respectively.  The  note was issued by the Bank in 2002 in connection
with  the  Bank's  purchase  of  property  that is located across from its Court
Street  branch office in Florida. The note matures in February of 2017 and calls
for  monthly  payments  of  principal  and  interest  at  7%  per  annum.

ALL  OTHER  LIABILITIES
-----------------------

The  table  below  sets  forth  the  composition  of  the  caption  "All  other
liabilities"  in  the  table  on  page  15  as  follows:

<TABLE>
<CAPTION>
                                                 At June 30,  At December 31,
                                                 -----------  ---------------
     ($in thousands)                                2003           2002
     ------------------------------------------------------------------------
<S>                                               <C>            <C>
     Mortgage escrow funds payable                $ 8,926        $ 5,894
     Official checks outstanding                    5,538          4,373
     Accrued interest payable on deposits             906            895
     Income taxes payable                             457            526
     All other                                      2,029          1,639
     ------------------------------------------------------------------------
                                                  $17,856        $13,327
     ------------------------------------------------------------------------
</TABLE>

Mortgage  escrow  funds payable represent advance payments made by borrowers for
taxes  and  insurance  that  are  remitted  by the Company to third parties. The
increase  reflects  the  growth  in  the loan portfolio as well as the timing of
payments  to taxing authorities. The level of official checks outstanding varies
and  fluctuates based on banking activity. The level of accrued interest payable
on  deposits fluctuates based on total deposits and timing of interest payments.
The  level  of  income taxes payable fluctuates based on the Company's earnings,
effective  tax rate and timing of tax payments. All other is comprised mainly of
accrued  expenses as well as fees received on loan commitments that have not yet
been  funded.


                                       17
<PAGE>
STOCKHOLDERS'  EQUITY  AND  REGULATORY  CAPITAL
-----------------------------------------------

Stockholders' equity increased to $58,009,000 at June 30, 2003, from $53,126,000
at  December  31,  2002  due  to  the following: net earnings of $4,367,000; the
issuance  of  30,000  shares  ($215,000)  of  Class  B  common  stock to acquire
Intervest  Securities  Corporation;  the  issuance  of 5,948 shares ($42,000) of
Class A common stock upon the conversion of convertible debentures; the issuance
of  5,200  shares  ($52,000) of Class A common stock upon the exercise of common
stock warrants; and the recording of $207,000 of compensation expense related to
stock  warrants  held by employees and directors. For discussion of compensation
related  to  stock  warrants, see note 5 to the condensed consolidated financial
statements  in  this  report.

The  Bank  is  a  well-capitalized  institution as defined in applicable banking
regulations.  See  note  4 to the condensed consolidated financial statements in
this  report  for  the  Bank's  capital  ratios.

                         ASSET AND LIABILITY MANAGEMENT
                         ------------------------------

Interest  rate  risk  arises  from  differences  in  the repricing of assets and
liabilities  within  a given time period. The primary objective of the Company's
asset/liability  management  strategy  is  to  limit,  within  its  established
guidelines, the adverse impact of changes in interest rates on the Company's net
interest  income  and  capital.

The  Company  uses  "gap  analysis,"  which  measures  the  difference  between
interest-earning  assets and interest-bearing liabilities that mature or reprice
within  a  given  time  period,  to  monitor its interest rate sensitivity.  The
Company's one-year interest rate sensitivity gap was a positive $154,449,000, or
20.6% of total assets, at June 30, 2003, compared to a positive $107,681,000, or
15.7%,  at  December 31, 2002. The increase was primarily due to the origination
of  new  floating-rate  loans  as well as existing loans migrating into the less
than  one-year  maturity  timeframe.  The  new  loans  were  funded primarily by
increases  in  deposits and borrowed funds with maturity dates of over one year.

In computing the gap, the Company treats its interest checking, money market and
savings  deposit  accounts  as immediately repricing. Further, the Company has a
"floor,"  or minimum rate, on many of its floating-rate loans that is determined
in  relation  to  prevailing market rates on the date of origination. This floor
only adjusts upwards in the event of increases in the loan's interest rate. This
feature  reduces  the  effect  on  interest income of a falling rate environment
because  the  interest  rates on such loans do not reset downward. For a further
discussion  of  interest  rate  risk and gap analysis, including the assumptions
used  in preparing the gap, see the Company's 2002 Annual Report to Stockholders
on  Form  10-K,  pages  32  and  33.

The  table  that  follows  summarizes  the Company's interest-earning assets and
interest-bearing  liabilities  as  of    June  30,  2003,  that are scheduled to
mature  or  reprice  within  the  periods  shown.

<TABLE>
<CAPTION>
                                                0-3       4-12   Over 1-4     Over 4
                                                ---      -----   --------     ------
($ in thousands)                             Months     Months      Years      Years      Total
-------------------------------------------------------------------------------------------------
<S>                                         <C>        <C>        <C>        <C>        <C>
Loans (1)                                   $180,030   $233,867   $115,843   $ 52,858   $582,598
Securities held to maturity (2)               25,246     50,487     46,100          -    121,833
Short-term investments                        26,548          -          -          -     26,548
FRB and FHLB stock                             1,691          -          -      1,114      2,805
-------------------------------------------------------------------------------------------------
Total rate-sensitive assets                 $233,515   $284,354   $161,943   $ 53,972   $733,784
-------------------------------------------------------------------------------------------------
Deposit accounts (3):
  Interest checking deposits                $ 10,001   $      -   $      -   $      -   $ 10,001
  Savings deposits                            31,583          -          -          -     31,583
  Money market deposits                      141,165          -          -          -    141,165
  Certificates of deposit                     48,532     80,385    154,409     80,387    363,713
                                            -----------------------------------------------------
  Total deposits                             231,281     80,385    154,409     80,387    546,462
Debentures payable (1)                        41,500      2,250     18,100     28,640     90,490
Debentures payable- capital securities (1)         -          -          -     15,000     15,000
Accrued interest on all debentures (1)         7,651        353      3,314      3,456     14,774
Note payable                                       -          -          -        260        260
-------------------------------------------------------------------------------------------------
Total rate-sensitive liabilities            $280,432   $ 82,988   $175,823   $127,743   $666,986
-------------------------------------------------------------------------------------------------
GAP (repricing differences)                 $(46,917)  $201,366   $(13,880)  $(73,771)  $ 66,798
-------------------------------------------------------------------------------------------------
Cumulative GAP                              $(46,917)  $154,449   $140,569   $ 66,798   $ 66,798
-------------------------------------------------------------------------------------------------
Cumulative GAP to total assets                  -6.3%      20.6%      18.7%       8.9%       8.9%
-------------------------------------------------------------------------------------------------


                                       18
<PAGE>
<FN>
     Significant  assumptions  used  in  preparing  the  preceding  gap  table  follow:

(1) Floating-rate loans and debentures payable 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  and debentures payable are scheduled, including repayments, according to their contractual
maturities.  Deferred  loan  fees  are  excluded from this analysis; (2) securities are scheduled
according  to the earlier of their contractual maturity or the date in which the interest rate is
scheduled  to  increase.  The  effects  of possible prepayments that may result from the issuer's
right  to  call  a security before its contractual maturity date are not considered; (3) interest
checking,  savings  and  money  market  deposits  are  regarded  as ready accessible withdrawable
accounts;  and  certificates  of  deposit  are  scheduled  through  their  maturity  dates.
</TABLE>

                         LIQUIDITY AND CAPITAL RESOURCES
                         -------------------------------

The Company manages its liquidity position on a daily basis to assure that funds
are  available  to  meet  operations,  loan  and investment commitments, deposit
withdrawals  and  the repayment of borrowed funds. The Company's primary sources
of  funds consist of: retail deposits obtained through the Bank's branch offices
and  through  the mail; amortization, satisfactions and repayments of loans; the
maturities  and  calls  of  securities;  sales  of debentures; borrowings in the
federal  funds  market and cash provided by operating activities. As a member of
the  FHLB  and  the  FRB,  the  Bank  also  has the ability to borrow from these
institutions  on  a  secured  basis.  Additionally, the Bank has agreements with
correspondent banks whereby it may borrow on an overnight and unsecured basis up
to  $16,000,000.  There were no outstanding borrowings under any of these lines.

The Company is party to financial instruments with off-balance sheet risk in the
normal  course  of  business to meet the financing needs of its customers. These
financial  instruments  are  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  the  consolidated  balance sheets. The contract amounts of these
instruments reflect the extent of involvement the Company has in these financial
instruments. The Company's maximum exposure to credit risk is represented by the
contractual  amount  of  those  instruments.  The  Company  uses the same credit
policies  in  making  commitments  as  it does for on-balance sheet 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  require  payment  of  fees.  Since  some of the commitments are expected to
expire  without  being  drawn  upon,  the  total  commitment  amount  does  not
necessarily  represent  future  cash  requirements.  The  Company evaluates each
customer's  credit  worthiness on a case-by-case basis. The amount of collateral
obtained,  if deemed necessary by the Company upon extension of credit, is based
on management's credit evaluation of the counterparty. Standby letters of credit
are  conditional  commitments issued by the Company to guarantee the performance
of  a  customer to a third party. The credit risk involved in issuing letters of
credit is essentially the same as that involved in extending loans to customers.
The Company believes that it can fund all of its commitments from the sources of
funds  noted  above.

The contractual amounts of the Company's off-balance sheet financial instruments
is  as  follows:

<TABLE>
<CAPTION>
                                     At June 30,    At Dec 31,
                                     -----------    ----------
     ($ in thousands)                   2003          2002
     ---------------------------------------------------------
<S>                                   <C>            <C>
     Unfunded loan commitments        $103,107       $68,244
     Available lines of credit             795           533
     Standby letters of credit             567         1,267
     ---------------------------------------------------------
                                      $104,469       $70,044
     ---------------------------------------------------------
</TABLE>


                                       19
<PAGE>
  COMPARISON OF RESULTS OF OPERATIONS FOR THE QUARTERS ENDED JUNE 30, 2003 AND
  ----------------------------------------------------------------------------
                                      2002
                                      ----
OVERVIEW
--------

Consolidated net earnings in the second quarter of 2003 increased to $2,566,000,
from  $1,644,000  in the second quarter of 2002. Earnings per share on a diluted
basis increased to $0.45 in the second quarter of 2003, from $0.33 in the second
quarter of 2002. The earnings per share computation for the 2003 period included
a  higher  number  of  common  shares outstanding resulting from the exercise of
common  stock  warrants  in  the  latter  part  of  2002.

The  improvement  in  earning was attributable to increases in both net interest
and dividend income and noninterest income. Net interest and dividend income was
higher  by $1,028,000 reflecting growth in the loan portfolio, while noninterest
income  increased by $798,000 due to higher income from loan prepayments as well
as  fees  earned  from  loan  commitments  that expired during the period. These
increases  were  partially offset by a $199,000 increase in noninterest expenses
(most of which was attributable to the Company's growth) and a $701,000 increase
in  the  provision  for  income  taxes  due  to  higher  pre-tax  income.

Selected  information  regarding results of operations for the second quarter of
2003  follows:

<TABLE>
<CAPTION>
                                                  Intervest   Intervest   Intervest     Intervest      Inter-
                                        Holding    National    Mortgage   Statutory    Securities     Company
($in thousands)                         Company        Bank        Corp     Trust I      Corp (2)    Balances   Consolidated
----------------------------------------------------------------------------------------------------------------------------
<S>                                    <C>        <C>         <C>        <C>         <C>           <C>         <C>
Interest and dividend income           $    284   $   9,812   $   2,385  $      381  $         -   $    (392)  $      12,470
Interest expense                            687       4,534       1,765         370            -        (392)          6,964
                                       -------------------------------------------------------------------------------------
Net interest and dividend income           (403)      5,278         620          11            -           -           5,506
Provision for loan loss reserves             (1)        395          36           -            -           -             430
Noninterest income                           49         993         670           -            -        (536)          1,176
Noninterest expenses                        214       1,821         368          11            1        (536)          1,879
                                       -------------------------------------------------------------------------------------
Earnings before taxes                      (567)      4,055         886           -           (1)          -           4,373
Provision for income taxes                 (257)      1,662         402           -            -           -           1,807
----------------------------------------------------------------------------------------------------------------------------
Net earnings                           $   (310)  $   2,393   $     484  $        -  $        (1)  $       -   $       2,566
----------------------------------------------------------------------------------------------------------------------------
Intercompany dividends (1)             $    375   $    (375)  $       -  $        -  $         -   $       -   $           -
Net earnings for same period of 2002   $   (329)  $   1,484   $     489  $        -  $         -   $       -   $       1,644
----------------------------------------------------------------------------------------------------------------------------
<FN>
(1)  The Bank pays a monthly dividend of $125,000 to the Holding Company in order to provide funds for the debt service
     on the Junior Debentures-Capital Securities (the proceeds of which were contributed to the Bank as capital in
     December 2001).
(2)  Results  are  from  date  of  acquisition,  June  2,  2003,  thru  June  30,  2003.
</TABLE>

NET  INTEREST  AND  DIVIDEND  INCOME
------------------------------------

Net interest and dividend income is the Company's primary source of earnings and
is  influenced  primarily  by  the  amount,  distribution  and  repricing
characteristics  of its interest-earning assets and interest-bearing liabilities
as  well  as  by  the  relative  levels  and  movements  of  interest  rates.

Net  interest  and dividend income increased to $5,506,000 in the second quarter
of  2003,  from  $4,478,000  in  the  same  period  of  2002.  The  increase was
attributable to growth of $141,543,000 in average interest-earning assets due to
new  mortgage  loans  of  $122,639,000  and  an  increase  in security and other
short-term  investments  aggregating  $18,904,000.  The increases were funded by
$106,519,000  of  new  deposits,  $16,170,000 of additional borrowed funds and a
$13,328,000  increase  in  stockholders'  equity.

The  Company's  net  interest  margin  remained nearly unchanged at 3.06% in the
second  quarter  of  2003,  compared  to  3.10% in the same period of 2002. In a
declining  interest  rate  environment,  the  yield  on  interest-earning assets
decreased 68 basis points (bp) to 6.93% in the 2003 period due to lower rates on
new  mortgage  loans  originated, prepayments of higher-yielding loans and lower
yields  earned  on  security and other short-term investments. The cost of funds
decreased  65  bp to 4.25% in the 2003 period due to lower rates paid on deposit
accounts  and  a  rate  decrease on floating-rate debentures. The debentures are
indexed to the JPMorgan Chase Bank prime rate, which has decreased by a total of
75  bp  from  July  2002  to June 2003. The recent decline of 25 bp in June will
further  reduce  interest  expense  on  such  debentures beginning in July 2003.

The  following  table  provides  information  on 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.


                                       20
<PAGE>
<TABLE>
<CAPTION>
                                                   ---------------------------------------------------------------
                                                                             Quarter Ended
                                                   ---------------------------------------------------------------
                                                             June 30, 2003                    June 30, 2002
                                                   --------------------------------  -----------------------------
                                                    Average    Interest     Yield/    Average   Interest    Yield/
($ in thousands)                                    Balance    Inc./Exp.     Rate     Balance   Inc./Exp.    Rate
------------------------------------------------------------------------------------------------------------------
<S>                                                <C>        <C>          <C>       <C>        <C>         <C>
ASSETS
Interest-earning assets:
   Loans                                           $558,262   $   11,613      8.34%  $435,623   $    9,972   9.18%
   Securities                                       135,071          770      2.29    132,345          983   2.98
   Other interest-earning assets                     28,349           87      1.23     12,171           53   1.75
------------------------------------------------------------------------------------------------------------------
Total interest-earning assets                       721,682   $   12,470      6.93%   580,139   $   11,008   7.61%
------------------------------------------------------------------------------------------------------------------
Noninterest-earning assets                           14,082                            15,643
------------------------------------------------------------------------------------------------------------------
Total assets                                       $735,764                          $595,782
------------------------------------------------------------------------------------------------------------------
LIABILITIES AND STOCKHOLDERS' EQUITY
Interest-bearing liabilities:
   Interest checking deposits                      $ 11,156   $       44      1.58%  $  9,640   $       59   2.45%
   Savings deposits                                  31,745          151      1.91     29,938          208   2.79
   Money market deposits                            141,443          670      1.90    122,896          852   2.78
   Certificates of deposit                          353,556        3,653      4.14    268,907        3,228   4.81
------------------------------------------------------------------------------------------------------------------
Total deposit accounts                              537,900        4,518      3.37    431,381        4,347   4.04
------------------------------------------------------------------------------------------------------------------
   Debentures and related interest payable          104,063        2,067      7.97     87,882        1,804   8.23
   Junior debentures - capital securities            15,000          374     10.00     15,000          374  10.00
   Note payable                                         262            5      7.00        273            5   7.00
------------------------------------------------------------------------------------------------------------------
Total borrowed funds                                119,325        2,446      8.22    103,155        2,183   8.49
------------------------------------------------------------------------------------------------------------------
Total interest-bearing liabilities                  657,225   $    6,964      4.25%   534,536   $    6,530   4.90%
------------------------------------------------------------------------------------------------------------------
Noninterest-bearing deposits                          5,013                             5,040
Noninterest-bearing liabilities                      17,544                            13,552
Stockholders' equity                                 55,982                            42,654
------------------------------------------------------------------------------------------------------------------
Total liabilities and stockholders' equity         $735,764                          $595,782
------------------------------------------------------------------------------------------------------------------
Net interest and dividend income/spread                       $    5,506      2.68%             $    4,478   2.71%
------------------------------------------------------------------------------------------------------------------
Net interest-earning assets/margin                 $ 64,457                   3.06%  $ 45,603                3.10%
------------------------------------------------------------------------------------------------------------------
Ratio of total interest-earning assets
   to total interest-bearing liabilities               1.10                             1.09x
------------------------------------------------------------------------------------------------------------------
OTHER RATIOS:
  Return on average assets (1)                         1.40%                            1.10%
  Return on average equity  (1)                       18.33%                           15.42%
  Noninterest expense to average assets (1)            1.02%                            1.13%
  Efficiency ratio (2)                                   28%                              35%
  Average stockholders' equity to average assets       7.61%                            7.16%
------------------------------------------------------------------------------------------------------------------
<FN>
(1)  Annualized
(2)  Defined  as  noninterest expenses as a percentage of net interest income before the provision for loan losses
     plus  noninterest  income.
</TABLE>

PROVISION  FOR  LOAN  LOSS  RESERVES
------------------------------------

The provision for loan losses was $430,000 in the second quarter of 2003, versus
$426,000  in  the  same  quarter of 2002. The provision is based on management's
ongoing  assessment  of the adequacy of the allowance for loan loss reserves for
each subsidiary, which takes into consideration a number of factors as discussed
on  page  16  of  this  report.  The  provisions  were a function of loan growth
($44,184,000  in  the  2003  period  and  $45,297,000  in  the  2002  period).

NONINTEREST  INCOME
-------------------

Noninterest  income  includes  fees  from  customer service charges, income from
mortgage  lending  activities  (which  consists mostly of fees from expired loan
commitments and loan servicing, maintenance and inspections charges), and income
from  the  early  repayment  of  mortgage  loans  (which consists largely of the
recognition  of unearned fees   associated with such loans at the time of payoff
and the receipt of prepayment penalties in certain cases). The amount and timing
of  loan  prepayments,  if  any,  cannot  be  predicted  and  can  fluctuate
significantly. Normally, the number of instances of prepayment of mortgage loans
tends  to  increase  during  periods  of  declining  interest rates and tends to
decrease  during  periods  of  increasing  interest  rates.


                                       21
<PAGE>
Noninterest  income  increased  $798,000  to $1,176,000 in the second quarter of
2003,  from  $378,000  in  the second quarter of 2002, due to higher income from
loan  prepayments  as  well  as  fees  earned from loan commitments that expired
during  the  period.

NONINTEREST  EXPENSES
---------------------

Noninterest  expenses  increased $199,000 to $1,879,000 in the second quarter of
2003,  from  $1,680,000  in  the  comparable  quarter  of 2002. the increase was
largely  due  to  the  following:  a  $76,000 increase in operational charges; a
$75,000  increase  in  compensation  and benefits expense; a $42,000 increase in
data processing expense; and a $22,000 increase in director expense. These items
were  partially  offset  by  a  $20,000  decrease  in  advertising  expense.

The  increase  in  operational  charges  was  a direct function of growth in the
Bank's  transactional  deposit  accounts.

The  increase in compensation and benefits expense was due to $144,000 resulting
from  additional  staff  (62 full-time employees at June 30, 2003 vs. 57 at June
30,  2002), salary increases and a higher cost of employee benefits. These items
were partially offset by a $41,000 increase in SFAS 91 direct fee income (due to
increased  loan  originations  as  well  as  a higher amount recognized per loan
origination)  and  bonus payments of $37,000 made to the Chairman of the Company
in  the  2002  quarter  that  did  not  recur  in  2003.

The  increase in data processing expense was due to growth in the Bank's assets.
The Bank engages a third-party servicer for its main data processing and the fee
is  a function of the Bank's total assets ($626,909,000 at June 30, 2003, versus
$529,258,000  at  June  30,  2002).

The  increase  in  director  expense  was  due  to  an increase in director fees
beginning  in  June  2003.

The  decrease  in advertising expenses was due to less advertising for loans and
deposits.

PROVISION  FOR  INCOME  TAXES
-----------------------------

The  provision for income taxes increased to $1,807,000 in the second quarter of
2003,  from  $1,106,000  in  the  second  quarter of 2002, due to higher pre-tax
income.  The  Company's  effective tax rate (inclusive of state and local taxes)
amounted  to  41%  in  the  2003  period,  compared  to  40% in the 2002 period.

  COMPARISON OF RESULTS OF OPERATIONS FOR THE SIX-MONTHS ENDED JUNE 30, 2003 AND
  ------------------------------------------------------------------------------
                                      2002
                                      ----
OVERVIEW
--------

Consolidated net earnings for the first half of 2003 increased to $4,367,000, or
$0.77  per  diluted  share,  from $2,892,000, or $0.60 per diluted share, in the
first  half  of 2002. The improvement in earnings for the first half of 2003 was
due  to  the  same  factors  that  contributed  to  the  2003 quarterly earnings
increase.  Net  interest  and  dividend  income  increased  by $2,227,000, while
noninterest  income increased by $853,000. These increases were partially offset
by  a $521,000 increase in noninterest expenses and a $1,082,000 increase in the
provision  for  income  taxes.

Selected  information regarding results of operations for the first half of 2003
follows:

<TABLE>
<CAPTION>
                                                  Intervest   Intervest   Intervest     Intervest      Inter-
                                        Holding    National    Mortgage   Statutory    Securities     Company
($in thousands)                         Company        Bank        Corp     Trust I      Corp (2)    Balances   Consolidated
----------------------------------------------------------------------------------------------------------------------------
<S>                                    <C>        <C>         <C>        <C>         <C>           <C>         <C>
Interest and dividend income           $    553   $  19,114   $   4,477  $      764  $         -   $    (813)  $      24,095
Interest expense                          1,372       9,029       3,423         741            -        (813)         13,752
                                       -------------------------------------------------------------------------------------
Net interest and dividend income           (819)     10,085       1,054          23            -           -          10,343
Provision for loan loss reserves             28         653          93           -            -           -             774
Noninterest income                           99       1,261       1,209           -            -      (1,064)          1,505
Noninterest expenses                        363       3,580         760          23            1      (1,064)          3,663
                                       -------------------------------------------------------------------------------------
Earnings before taxes                    (1,111)      7,113       1,410           -           (1)          -           7,411
Provision for income taxes                 (504)      2,907         641           -            -           -           3,044
----------------------------------------------------------------------------------------------------------------------------
Net earnings (loss)                    $   (607)  $   4,206   $     769  $        -  $       ( 1)  $       -   $       4,367
----------------------------------------------------------------------------------------------------------------------------
Intercompany dividends (1)             $    750   $    (750)  $       -  $        -  $         -   $       -   $           -
Net earnings for same period of 2002   $   (582)  $   2,720   $     754  $        -  $         -   $       -   $       2,892
----------------------------------------------------------------------------------------------------------------------------
<FN>
(1)     The  Bank  pays a monthly dividend of $125,000 to the Holding Company in order to provide funds for the debt service
        on  the  Junior  Debentures-Capital  Securities  (the  proceeds  of which were contributed to the Bank as capital in
        December  2001).
(2)     Results  are  from  date  of  acquisition,  June  2,  2003,  thru  June  30,  2003.
</TABLE>


                                       22
<PAGE>
NET  INTEREST  AND  DIVIDEND  INCOME
------------------------------------

Net  interest  and dividend income increased to $10,343,000 in the first half of
2003,  from $8,116,000 in the same period of 2002. The increase was attributable
to  growth  of $158,197,000 in the Company's average interest-earning assets due
to  new  mortgage  loans  of  $122,630,000 and an increase in security and other
short-term  investments  aggregating  $35,567,000.  The increases were funded by
$127,247,000  of  new  deposits,  $14,381,000 of additional borrowed funds and a
$13,115,000  increase  in  stockholders'  equity.

The  Company's  net  interest  margin  remained nearly unchanged at 2.96% in the
first half of 2003, compared to 3.00% in the same period of 2002. In a declining
interest  rate environment, the yield on interest-earning assets decreased 75 bp
to 6.90% in the first half of 2003, while its cost of funds also decreased 75 bp
to  4.31%  in the first half of 2003. The reasons for the decreases are the same
as  those discussed in the "Comparison of Results of Operations for the Quarters
Ended  June  30,  2003  and  2002."

The  following  table  provides  information  on average assets, liabilities and
stockholders'  equity;  yields earned on interest-earning assets; and rates paid
on  interest-bearing  liabilities  for  the  periods  indicated.  For  a further
description  of  the table, see the section "Comparison of Results of Operations
for  the  Quarters  Ended  June  30,  2003  and  2002."

<TABLE>
<CAPTION>
                                                    --------------------------------------------------------------
                                                                           Six-Months Ended
                                                    --------------------------------------------------------------
                                                             June 30, 2003                     June 30, 2002
                                                    -------------------------------  -----------------------------
                                                    Average    Interest     Yield/    Average   Interest    Yield/
($in thousands)                                     Balance    Inc./Exp.     Rate     Balance   Inc./Exp.    Rate
------------------------------------------------------------------------------------------------------------------
<S>                                                <C>        <C>          <C>       <C>        <C>         <C>
ASSETS
Interest-earning assets:
   Loans                                           $533,845   $   22,283      8.42%  $411,215   $   18,792   9.22%
   Securities                                       146,532        1,657      2.28    123,574        1,825   2.98
   Other interest-earning assets                     24,217          155      1.29     11,608          102   1.77
------------------------------------------------------------------------------------------------------------------
Total interest-earning assets                       704,594   $   24,095      6.90%   546,397   $   20,719   7.65%
------------------------------------------------------------------------------------------------------------------
Noninterest-earning assets                           14,564                            14,824
------------------------------------------------------------------------------------------------------------------
Total assets                                       $719,158                          $561,221
------------------------------------------------------------------------------------------------------------------
LIABILITIES AND STOCKHOLDERS' EQUITY
Interest-bearing liabilities:
   Interest checking deposits                      $ 11,492   $      100      1.75%  $  9,602   $      119   2.50%
   Savings deposits                                  31,443          313      2.01     28,398          401   2.85
   Money market deposits                            140,169        1,392      2.00    106,158        1,488   2.83
   Certificates of deposit                          343,716        7,166      4.20    255,415        6,261   4.94
------------------------------------------------------------------------------------------------------------------
Total deposit accounts                              526,820        8,971      3.43    399,573        8,269   4.17
------------------------------------------------------------------------------------------------------------------
   Federal funds purchased                                -            -         -        171            2   1.96
   Debentures and related interest payable          101,366        4,024      8.01     86,869        3,577   8.30
   Junior debentures - capital securities            15,000          748     10.06     15,000          748  10.06
   Note payable                                         264            9      6.98        209            7   6.98
------------------------------------------------------------------------------------------------------------------
Total borrowed funds                                116,630        4,781      8.27    102,249        4,334   8.55
------------------------------------------------------------------------------------------------------------------
Total interest-bearing liabilities                  643,450   $   13,752      4.31%   501,822   $   12,603   5.06%
------------------------------------------------------------------------------------------------------------------
Noninterest-bearing deposits                          5,060                             5,593
Noninterest-bearing liabilities                      15,788                            12,061
Stockholders' equity                                 54,860                            41,745
------------------------------------------------------------------------------------------------------------------
Total liabilities and stockholders' equity         $719,158                          $561,221
------------------------------------------------------------------------------------------------------------------
Net interest and dividend income/spread                       $   10,343      2.59%             $    8,116   2.59%
------------------------------------------------------------------------------------------------------------------
Net interest-earning assets/margin                 $ 61,144                   2.96%  $ 44,575                3.00%
------------------------------------------------------------------------------------------------------------------
Ratio of total interest-earning assets
   to total interest-bearing liabilities               1.10                             1.09x
------------------------------------------------------------------------------------------------------------------
OTHER RATIOS:
  Return on average assets (1)                         1.21%                            1.03%
  Return on average equity  (1)                       15.92%                           13.86%
  Noninterest expense to average assets (1)            1.02%                            1.12%
  Efficiency ratio (2)                                   31%                              36%
  Average stockholders' equity to average assets       7.63%                            7.44%
------------------------------------------------------------------------------------------------------------------
<FN>
(1)  Annualized
(2)  Defined  as  noninterest expenses as a percentage of net interest income before the provision for loan losses
     plus  noninterest  income.
</TABLE>


                                       23
<PAGE>
PROVISION  FOR  LOAN  LOSS  RESERVES
------------------------------------

The  provision  for  loan  losses was $774,000 in the first half of 2003, versus
$772,000  in  the  same  period  of 2002. The provisions were a function of loan
growth  ($87,296,000  in  the  2003  period and $82,286,000 in the 2002 period).

NONINTEREST  INCOME
-------------------

Noninterest  income  increased $853,000 to $1,505,000 in the first half of 2003,
from  $652,000 in the same period of 2002. The increase was due to due to higher
income  from  loan prepayments as well as fees earned from loan commitments that
expired  during  the  period.

NONINTEREST  EXPENSES
---------------------

Noninterest expenses increased $521,000 to $3,663,000 in the first half of 2003,
from  $3,142,000  in the comparable period of 2002. The increase was largely due
to  the  following:  a $226,000 increase in compensation and benefits expense; a
$91,000  increase  in operational charges; a $72,000 increase in data processing
expense;  a  $45,000  increase  in  foreclosed  real  estate  expense; a $27,000
increase  in  FDIC  and  general  insurance  expense;  and a $22,000 increase in
director  expense.  These  items  were partially offset by a $12,000 decrease in
advertising  expense.

The  increase in compensation and benefits expense was due to $294,000 resulting
from  additional  staff  (62 full-time employees at June 30, 2003 vs. 57 at June
30,  2002), salary increases and a higher cost of employee benefits, and $77,000
of expense associated with common stock warrants held by employees and directors
(as  a  result of an increase in the Company's Class A common stock price during
the  period). These items were partially offset by a $70,000 increase in SFAS 91
direct fee income (due to increased loan originations as well as a higher amount
recognized  per  loan  origination)  and  bonus  payments of $75,000 made to the
Chairman  of  the  Company in 2002 that did not recur in 2003. See note 5 to the
condensed  consolidated  financial  statements  in  this  report for information
regarding  common  stock  warrants.

The increased in foreclosed real estate expense was due to a net loss of $51,000
recorded  in  connection  with the sale of the Bank's foreclosed real estate. In
addition,  foreclosed  real  estate  expense, net of any rental income, consists
mostly  of  real  estate  taxes, insurance, utilities, maintenance, professional
fees  and  other  charges  required  to  protect  the  Company's interest in the
property.

The  increase  in  FDIC  and  general  insurance  expense was due to higher FDIC
premium  expense due to deposit growth and higher general insurance premiums due
to  rate  increases.

The  reasons  for  the  changes in operational charges, data processing expense,
director  expense and advertising expense are the same as those discussed in the
section  "Comparison  of  Results  of Operations for the Quarters Ended June 30,
2003  and  2002."

PROVISION  FOR  INCOME  TAXES
-----------------------------

The  provision  for  income  taxes  increased to $3,044,000 in the first half of
2003,  from  $1,962,000 in the first half of 2002, due to higher pre-tax income.
The  Company's  effective tax rate (inclusive of state and local taxes) amounted
to  41%  in  the  2003  period,  compared  to  40%  in  the  2002  period.

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.  The  Company's market risk arises primarily from interest rate
risk  inherent in its lending and deposit-taking activities, and the issuance of
its  debentures.  The  Company  has  not  engaged in and accordingly has no risk
related to trading accounts, commodities 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  as of December 31, 2002, which reflect changes in market
prices  and  rates,  can  be  found  in  note  20  to the consolidated financial
statements  included in the Company's Annual Report to Stockholders on Form 10-K
for  the  year  ended  December  31,  2002.

Management  actively  monitors  and  manages  the  Company's  interest rate risk
exposure.  The  primary  objective  in  managing interest rate risk is to limit,
within  its  established  guidelines,  the adverse impact of changes in interest
rates  on  the  Company's  net  interest income and capital, while adjusting the
Company's  asset-liability  structure  to  obtain  the maximum yield versus cost
spread  on  that  structure.  Management relies primarily on its asset-liability
structure  to  control  interest  rate  risk.  However, a sudden and substantial
increase in interest rates could adversely impact the


                                       24
<PAGE>
Company's  earnings,  to  the extent that the interest rates borne by assets and
liabilities  do not change at the same speed, to the same extent, or on the same
basis.  Management  believes  that there have been no significant changes in the
Company's  market  risk  exposure  since  December  31,  2002.

ITEM 4.  CONTROLS AND PROCEDURES

(a)  Evaluation  of  disclosure  controls and procedures.  The Company maintains
     ----------------------------------------------------
controls  and  procedures  designed  to  ensure  that information required to be
disclosed  in the reports that the Company files or submits under the Securities
Exchange  Act of 1934 is recorded, processed, summarized and reported within the
time  periods  specified  in  the rules and forms of the Securities and Exchange
Commission.  Based  upon  their  evaluation  of  those  controls  and procedures
performed  within 90 days of the filing date of this report, the Chief Executive
and  Chief  Financial  Officer  of  the  Company  concluded  that  the Company's
disclosure  controls  and  procedures  were  adequate.

(b)  Changes  in internal controls.   The Company made no significant changes in
     ------------------------------
its  internal controls or in other factors that could significantly affect these
controls subsequent to the date of the evaluation of those controls by the Chief
Executive  and  Chief  Financial  Officer.

PART II. OTHER INFORMATION

ITEM  1.  LEGAL  PROCEEDINGS

        Not  Applicable

ITEM  2.  CHANGES  IN  SECURITIES  AND  USE  OF  PROCEEDS

(a)     Not  Applicable

(b)     Not  Applicable

(c)     Not  Applicable

(d)     Not  Applicable

ITEM  3.  DEFAULTS  UPON  SENIOR  SECURITIES

        Not  Applicable

ITEM  4.  SUBMISSION  OF  MATTERS  TO  A  VOTE  OF  SECURITY  HOLDERS

(a)     An  Annual  Meeting  of  Stockholders  was  held  on  May  23,  2003.

(b)     Pursuant to the Company's charter and bylaws, one-third of the directors
        are  elected  by  the holders of Class A common stock and two-thirds are
        elected  by  holders  of  Class  B  common  stock. On all other matters,
        Class  A  and  Class  B  common  stockholders  vote together as a single
        class.  Each  of  the  persons  named in the Proxy Statement dated April
        22,  2003  as  a  nominee  for  Director was elected for a one-year term
        expiring  on  the  date  of  the  next  annual  meeting  (see Item 4-C).

(c)     The table below summarizes voting results on the matter submitted to the
        Company's  common  stockholders:
<TABLE>
<CAPTION>
---------------------------------------------------------------------------
                                     FOR     AGAINST OR WITHHELD  ABSTAINED
---------------------------------------------------------------------------
<S>                               <C>        <C>                  <C>
ELECTION OF DIRECTORS - CLASS A
--------------------------------
Michael A. Callen                 4,043,034                5,600          -
Wayne F. Holly                    4,040,034                8,300          -
Lawton Swan, III                  4,043,034                5,600          -

ELECTION OF DIRECTORS  - CLASS B
--------------------------------
Lawrence G. Bergman                 355,000                    -          -
Jerome Dansker                      355,000                    -          -
Lowell S. Dansker                   355,000                    -          -
Paul DeRosa                         355,000                    -          -
Thomas E. Willett                   355,000                    -          -
David J. Willmott                   355,000                    -          -
Wesley T. Wood                      355,000                    -          -
---------------------------------------------------------------------------
</TABLE>

(d)     Not  Applicable


                                       25
<PAGE>
ITEM  5.  OTHER  INFORMATION

        Not  Applicable

ITEM  6.  EXHIBITS  AND  REPORTS  ON  FORM  8-K

(a)     The  following  exhibit  is  filed  as  part  of  this  report.

        99.1     Certification  pursuant  to  18 U.S.C. Section 1350, as adopted
                 pursuant  to  Section  906  of  The Sarbanes-Oxley Act of 2002.

(b)     A  report  on  Form 8-K was filed on April 14, 2003 by the registrant to
        provide,  under  Item 9,  its  quarterly earnings release for the period
        ended  March  31,  2003.

        A  report  on  Form 8-K was filed on June 2, 2003 by the registrant to
        report,  under Item 5, the completion of its acquisition of all of the
        shares  of  capital  stock  of  Intervest  Securities  Corporation.

                                   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  AND  SUBSIDIARIES

<TABLE>
<CAPTION>


<S>                                        <C>
Date: August 8, 2003                       By:    /s/ Lowell S. Dansker
                                           ------------------------------
                                           Lowell S. Dansker, Vice Chairman, President and Treasurer
                                          (Principal Executive and Financial Officer)

Date: August 8, 2003                       By:    /s/ Lawrence G. Bergman
                                           ------------------------------
                                           Lawrence G. Bergman, Vice President and Secretary
</TABLE>


                                       26
<PAGE>
                                  CERTIFICATION

     I,  Lowell  S.  Dansker, as the principal executive and principal financial
officer  of  Intervest  Bancshares Corporation and Subsidiaries (the "Company"),
certify,  that:

     1.   I  have  reviewed  this  quarterly report on Form 10-Q of the Company;

     2.   Based  on  my  knowledge,  this  quarterly 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  quarterly  report;

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

     4.   I  am responsible for establishing and maintaining disclosure controls
          and  procedures  (as  defined in Exchange Act Rules 13a-14 and 15d-14)
          for  the  Company  and  I  have:

          (a)  designed  such  disclosure controls and procedures to ensure that
               material  information  relating  to  the  Company,  including its
               consolidated  subsidiaries,  is made known to me by others within
               those  entities,  particularly  during  the  period in which this
               quarterly  report  is  being  prepared;

          (b)  evaluated  the effectiveness of the Company's disclosure controls
               and  procedures  as  of a date within 90 days prior to the filing
               date  of  this  quarterly  report  (the  "Evaluation  Date"); and

          (c)  presented  in  this  quarterly  report  my  conclusions about the
               effectiveness  of the disclosure controls and procedures based on
               my  evaluation  as  of  the  Evaluation  Date;

     5.   I have disclosed, based on my most recent evaluation, to the Company's
          auditors  and the Audit Committee of the Company's Board of Directors:

          (a)  all  significant  deficiencies  in the design or operation of the
               internal  controls  which  could  adversely  affect the Company's
               ability  to  record, process, summarize and report financial data
               and  have  identified  for  the  Company's  auditors any material
               weaknesses  in  internal  controls;  and

          (b)  any  fraud,  whether or not material, that involves management or
               other  employees  who  have  a  significant role in the Company's
               internal  controls;  and

     6.   I  have  indicated  in this quarterly report whether or not there were
          significant  changes  in  internal  controls  or in other factors that
          could  significantly  affect  the  internal controls subsequent to the
          date  of  my  most recent evaluation, including any corrective actions
          with  regard  to  significant  deficiencies  and  material weaknesses.

          /s/  Lowell  S.  Dansker
          ------------------------
          Lowell  S.  Dansker,  Vice  Chairman,  President  and  Treasurer
          (Principal  Executive  and  Financial  Officer)
          August  8,  2003

                                       27
<PAGE>