Exhibit 99.1

Porter Bancorp Reports 1st Quarter 2017 Net Income of $1.6 Million or $0.27 Per Diluted Share

LOUISVILLE, Ky.--(BUSINESS WIRE)--April 19, 2017--Porter Bancorp, Inc. (NASDAQ: PBIB) (“the Company”), parent company of PBI Bank, today reported unaudited results for the first quarter of 2017. Per share amounts in this release have been adjusted to reflect the 1-for-5 reverse stock split of the Company’s common shares that was effective on December 16, 2016.

The Company reported that net income attributable to common shareholders for the first quarter of 2017 was $1.6 million, or $0.27 per basic and diluted common share, compared with $1.4 million, or $0.27 per basic and diluted share, for the first quarter of 2016.

“We are pleased with the favorable financial results for the first quarter of 2017 which were largely driven by quality loan production and deposit growth,” said John T. Taylor, President and CEO. “Non-interest expenses also continued to decline and normalize commensurate with improving asset quality trends. The $1.6 million in net income for the first quarter of 2017 compares favorably to net income of $1.4 million in the first quarter of 2016. Core earnings for the first quarter of 2017 outperformed the first quarter of 2016 as the first quarter of 2016 benefitted from $550,000 in negative loan loss provisioning and $203,000 in gains on security sales and calls.”

Net Interest Income – Net interest income before provision expense increased to $7.7 million for the first quarter of 2017, compared with $7.3 million in the fourth quarter of 2016, and $7.7 million in the first quarter of 2016. Average loans increased to $649.3 million for the first quarter of 2017, compared with $619.6 million in the fourth quarter of 2016 and $620.1 million in the first quarter of 2016. Net interest margin increased to 3.55% in the first quarter of 2017, compared with 3.35% in the fourth quarter of 2016 and 3.53% in the first quarter of 2016.

Our yield on earning assets improved to 4.23% in the first quarter of 2017, compared to 4.01% in the fourth quarter of 2016 and remained consistent with 4.23% in the first quarter of 2016. Our cost of funds was 0.78% in the first quarter of 2017, as well as the fourth quarter of 2016, compared to 0.79% in the first quarter of 2016.

Loan Loss Provision and Allowance for Loan Losses – There was no provision for loan losses in the first quarter of 2017. Ongoing improvements in asset quality and management’s assessment of risk in the loan portfolio led to negative provisions for loan losses of $550,000 for both the fourth quarter and first quarter of 2016.

The allowance for loan losses to total loans was 1.35% at March 31, 2017, compared to 1.40% at December 31, 2016, and 1.83% at March 31, 2016. The declining level of the allowance is primarily driven by declining historical charge-off levels, growth in the portfolio, and improving trends in credit quality. Net loan charge-offs were $1,000 for the first quarter of 2017, compared to net recoveries of $28,000 for the fourth quarter of 2016, and net charge-offs of $151,000 for the first quarter of 2016. The allowance for loan losses for loans evaluated collectively for impairment was 1.32% at March 31, 2017, compared with 1.37% at December 31, 2016, and 1.83% at March 31, 2016.

Non-performing Assets – Non-performing assets, which include loans past due 90 days and still accruing, loans on nonaccrual, and other real estate owned (“OREO”), decreased to $14.7 million, or 1.56% of total assets at March 31, 2017, compared with $16.0 million, or 1.70% of total assets at December 31, 2016, and $29.0 million, or 3.09% of total assets at March 31, 2016.

Non-performing loans decreased to $8.1 million, or 1.22% of total loans at March 31, 2017, compared with $9.2 million, or 1.44% of total loans at December 31, 2016, and decreased from $11.1 million, or 1.79% of total loans at March 31, 2016. The decrease from the previous quarter was primarily driven by $1.5 million in principal payments received on nonaccrual loans. OREO at March 31, 2017, decreased to $6.6 million, compared with $6.8 million at December 31, 2016, and $17.9 million at March 31, 2016. The Company acquired $100,000 in OREO and sold $388,000 in OREO during the first quarter of 2017. There were no fair value write-downs arising from lower marketing prices or new appraisals in the first quarter of 2017, compared with $210,000 in the fourth quarter of 2016, and $500,000 in the first quarter of 2016.

The following table details past due loans and non-performing assets as of:

In addition to nonaccrual loans and OREO, loans classified as Troubled Debt Restructures (TDRs) and on accrual totaled $1.2 million at March 31, 2017, compared to $5.4 million at December 31, 2016 and $14.9 million at March 31, 2016.

Non-interest Income – Non-interest income for the first quarter of 2017 decreased $323,000 to $1.1 million compared with $1.4 million for the first quarter of 2016. The decrease from the first quarter of 2016 was primarily due to reductions in OREO income of $256,000 and reductions in the gains on sales and calls of securities of $203,000. As income producing OREO has been sold, no income was collected in the first quarter of 2017. Additionally, there were no investment security sales or calls in the first quarter of 2017. These reductions were partially offset by a $72,000 increase in service charges on deposit accounts in the first quarter of 2017 compared to the first quarter of 2016.

Non-interest Expense – Non-interest expense decreased $962,000 to $7.1 million for the first quarter of 2017, compared with $8.1 million for the first quarter of 2016. The decrease from the first quarter of 2016 was primarily due to a reduction in OREO expenses of approximately $684,000, a reduction of FDIC insurance expense of $181,000, a reduction of professional fees of $82,000, and a reduction of litigation and loan collection expenses of $79,000.

Capital – At March 31, 2017, PBI Bank’s Tier 1 leverage ratio was 6.37% compared with 6.24% at December 31, 2016, and its Total risk-based capital ratio was 9.89% at March 31, 2017, compared with 9.88% at December 31, 2016, which are below the minimums of 9.0% and 12.0% required by the Bank’s Consent Order.

At March 31, 2017, Porter Bancorp’s leverage ratio was 5.43%, compared with 5.27% at December 31, 2016, and its Total risk-based capital ratio was 10.15%, compared with 10.21% at December 31, 2016. At March 31, 2017, PBI Bank’s Common equity Tier I risk-based capital ratio was 8.33%, and Porter Bancorp’s Common equity Tier I risk-based capital ratio was 5.29%.

Deferred Tax Assets and Liabilities – The Company has a net deferred tax asset of $53.3 million at March 31, 2017, which is currently subject to a 100% valuation allowance. Deferred tax assets and liabilities were due to the following as of:

Our ability to utilize deferred tax assets depends upon generating sufficient future levels of taxable income. The determination to restore a deferred tax asset and eliminate a valuation allowance depends upon the evaluation of both positive and negative evidence regarding the likelihood of achieving sufficient future taxable income levels. We established a valuation allowance for all deferred tax assets as of December 31, 2011, and the valuation allowance remains in effect as of March 31, 2017.

Under Section 382 of the Internal Revenue Code, as amended (“Section 382”), the Company’s net operating loss carryforwards (“NOLs”) and other deferred tax assets can generally be used to offset future taxable income and therefore reduce federal income tax obligations. However, the Company’s ability to use its NOLs would be limited if there was an “ownership change” as defined by Section 382. This would occur if shareholders owning (or deemed to own under the tax rules) 5% or more of the Company’s voting and non-voting common shares increase their aggregate ownership of the Company by more than 50 percentage points over a defined period of time.

In 2015, the Company took two measures to preserve the value of its NOLs. First, we adopted a tax benefits preservation plan designed to reduce the likelihood of an “ownership change” occurring as a result of purchases and sales of the Company’s common shares. Any shareholder or group that acquires beneficial ownership of 5% or more of the Company (an “acquiring person”) could be subject to significant dilution in its holdings if the Company’s Board of Directors does not approve such acquisition. Existing shareholders holding 5% or more of the Company will not be considered acquiring persons unless they acquire additional shares, subject to certain exceptions described in the plan. In addition, the Board of Directors has the discretion to exempt certain transactions and certain persons whose acquisition of securities is determined by the Board not to jeopardize the Company’s deferred tax assets. The rights will expire upon the earlier of (i) June 29, 2018, (ii) the beginning of a taxable year with respect to which the Board of Directors determines that no tax benefits may be carried forward, (iii) the repeal or amendment of Section 382 or any successor statute, if the Board of Directors determines that the plan is no longer needed to preserve the tax benefits, and (iv) certain other events as described in the plan.

On September 23, 2015, our shareholders approved an amendment to the Company’s articles of incorporation to further help protect the long-term value of the Company’s NOLs. The amendment provides a means to block transfers of our common shares that could result in an ownership change under Section 382. The transfer restrictions will expire on the earlier of (i) September 23, 2018, (ii) the beginning of a taxable year with respect to which the Board of Directors determines that no tax benefit may be carried forward, (iii) the repeal of Section 382 or any successor statute if our Board determines that the transfer restrictions are no longer needed to preserve the tax benefits of our NOLs, or (iv) such date as the Board otherwise determines that the transfer restrictions are no longer necessary.

Forward-Looking Statements
Statements in this press release relating to Porter Bancorp’s plans, objectives, expectations or future performance are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The words “believe,” “may,” “should,” “anticipate,” “estimate,” “expect,” “intend,” “objective,” “possible,” “seek,” “plan,” “strive” or similar words, or negatives of these words, identify forward-looking statements. These forward-looking statements are based on management’s current expectations. Porter Bancorp’s actual results in future periods may differ materially from those indicated by forward-looking statements due to various risks and uncertainties, including our ability to reduce our level of higher risk loans such as commercial real estate and real estate development loans, reduce our level of non-performing loans and other real estate owned, and increase net interest income in a low interest rate environment, as well as our need to increase capital. These and other risks and uncertainties are described in greater detail under “Risk Factors” in the Company’s Form 10-K and subsequent periodic reports filed with the Securities and Exchange Commission. The forward-looking statements in this press release are made as of the date of the release and Porter Bancorp does not assume any responsibility to update these statements.

Additional Information
Unaudited supplemental financial information for the first quarter ending March 31, 2017, follows.

Non-GAAP Financial Measures Reconciliation
Tangible book value per common share is a non-GAAP financial measure derived from GAAP-based amounts. We calculate tangible book value per common share by excluding the balance of intangible assets from common stockholders’ equity. We calculate tangible book value per common share by dividing tangible common equity by common shares outstanding, as compared to book value per common share, which we calculate by dividing common stockholders’ equity by common shares outstanding. We believe this is consistent with bank regulatory agency treatment, which excludes tangible assets from the calculation of risk-based capital.

The efficiency ratio is a non-GAAP measure of expense control relative to revenue from net interest income and fee income. We calculate the efficiency ratio by dividing total non-interest expenses as determined under GAAP by net interest income and total non-interest income, but excluding net gains on the sale of securities from the calculation. We believe this provides a reasonable measure of primary banking expenses relative to primary banking revenue.

CONTACT:
Porter Bancorp, Inc.
John T. Taylor, 502-499-4800
Chief Executive Officer