Exhibit 99.1

Porter Bancorp Reports 2nd Quarter 2017 Net Income of $1.7 million or $0.27 per Diluted Share

LOUISVILLE, Ky.--(BUSINESS WIRE)--July 26, 2017--Porter Bancorp, Inc. (NASDAQ: PBIB) (“the Company”), parent company of PBI Bank, today reported unaudited results for the second quarter of 2017. Net income available to common shareholders for the second quarter of 2017 was $1.7 million, or $0.27 per basic and diluted common share, compared with $979,000, or $0.17 per basic and diluted share, for the second quarter of 2016. Net income available to common shareholders for the six months ended June 30, 2017, was $3.3 million, or $0.54 per diluted common share, compared with net income available to common shareholders of $2.4 million, or $0.43 per diluted share, for the six months ended June 30, 2016.

As compared to the same period in 2016, the Company’s performance for the quarter and six months ended June 30, 2017, reflected several positive developments, including:

• Improved net interest income and net interest margin
• Continued improvement in asset quality trends and growth in the loan portfolio
• Improved deposit service charges and interchange fee income
• Continued reductions in non-interest expenses
• Completion of a $10.0 million senior debt transaction and capital contribution of $9.0 million to PBI Bank

Net Interest Income – Net interest income before provision expense increased to $7.6 million for the second quarter of 2017, compared with $7.2 million in the second quarter of 2016. Average loans increased to $654.8 million for the second quarter of 2017, compared with $619.3 million in the second quarter of 2016. Net interest margin increased to 3.42% in the second quarter of 2017, compared with 3.34% in the second quarter of 2016.

Our yield on earning assets increased to 4.11% in the second quarter of 2017, compared to 4.03% in the second quarter of 2016. Our cost of funds was 0.80% in the second quarter of 2017, compared to 0.79% in the second quarter of 2016.

Loan Loss Provision and Allowance for Loan Losses – There was no provision for loan losses in the first or second quarter of 2017. Ongoing improvements in asset quality and management’s assessment of risk in the loan portfolio led to a negative provision for loan losses of $600,000 for the second quarter of 2016.

The allowance for loan losses to total loans was 1.36% at June 30, 2017, compared to 1.62% at June 30, 2016. The reduced level of the allowance in 2017 compared to 2016 was primarily driven by declining charge-off levels, growth in the portfolio, and improving trends in credit quality. Net loan charge-offs were $82,000 for the first six months of 2017, compared to $787,000 for the first six months of 2016. The allowance for loan losses for loans evaluated collectively for impairment was 1.33% at June 30, 2017, and 1.66% at June 30, 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 $12.8 million, or 1.34% of total assets at June 30, 2017, compared with $14.7 million, or 1.56% of total assets at March 31, 2017, and $23.9 million, or 2.61% of total assets at June 30, 2016.

Non-performing loans decreased to $6.5 million, or 0.99% of total loans at June 30, 2017, compared with $8.1 million, or 1.22% of total loans at March 31, 2017, and decreased from $11.6 million, or 1.86% of total loans at June 30, 2016. The decrease from the previous quarter was primarily driven by $1.9 million in principal payments received on nonaccrual loans. OREO at June 30, 2017, decreased to $6.3 million, compared with $6.6 million at March 31, 2017, and $12.3 million at June 30, 2016. The Company acquired $40,000 in OREO and sold $320,000 in OREO during the second quarter of 2017. There were no fair value write-downs arising from lower marketing prices or new appraisals in the first six months of 2017, compared with $650,000 in the first six months 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 both June 30, 2017 and March 31, 2017, compared to $13.9 million at June 30, 2016.

Non-interest Income – Non-interest income for the second quarter of 2017 decreased $45,000 to $1.1 million compared with $1.2 million for the second quarter of 2016. The decrease from the second quarter of 2016 was primarily due to reductions in OREO income of $149,000 as income producing OREO has been sold and no income was collected in the second quarter of 2017. This reduction was partially offset by increases in service charges on deposit accounts and bank card interchange fees of $75,000 and $34,000, respectively, compared to the second quarter of 2016.

Non-interest Expense – Non-interest expense decreased $950,000 to $7.0 million for the second quarter of 2017, compared with $7.9 million for the second quarter of 2016. The decrease from the second quarter of 2016 was primarily due to a reduction in OREO expenses of approximately $297,000, a reduction of professional fees of $251,000, a reduction of litigation and loan collection expenses of $231,000, and a reduction of FDIC insurance expense of $136,000.

Capital – On June 30, 2017, the Company entered into a $10.0 million senior secured loan agreement with a commercial bank. The loan matures on June 30, 2022. Interest is payable quarterly at a rate of three-month LIBOR plus 250 basis points through June 30, 2020, at which time quarterly principal payments of $250,000 plus interest will commence. The loan is secured by a first priority pledge of 100% of the issued and outstanding stock of PBI Bank. The Company may prepay any amount due under the promissory note at any time without premium or penalty.

The Company contributed $9.0 million of the borrowing proceeds to PBI Bank as Common Equity Tier 1 Capital. The remaining $1.0 million of the borrowing proceeds were retained by the lender in escrow to service quarterly interest payments.

At June 30, 2017, PBI Bank’s Tier 1 leverage ratio was 7.54%, compared with 6.37% at March 31, 2017, and its Total risk-based capital ratio was 11.50% at June 30, 2017, compared with 9.89% at March 31, 2017, which are below the minimums of 9.0% and 12.0% required by the Bank’s Consent Order.

At June 30, 2017, Porter Bancorp’s leverage ratio was 5.65%, compared with 5.43% at March 31, 2017, and its Total risk-based capital ratio was 10.44%, compared with 10.15% at March 31, 2017. At June 30, 2017, PBI Bank’s Common equity Tier I risk-based capital ratio was 9.97%, and Porter Bancorp’s Common equity Tier I risk-based capital ratio was 5.58%.

Deferred Tax Assets and Liabilities – The Company has a net deferred tax asset of $52.4 million at June 30, 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 June 30, 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 second quarter ending June 30, 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