Porter Bancorp, Inc. Announces Verdict and Plans Appeal

  Porter Bancorp, Inc. Announces Verdict and Plans Appeal

Business Wire

LOUISVILLE, Ky. -- July 19, 2013

On July 16, 2013, a jury in Louisville, Kentucky returned a verdict against
PBI Bank, the banking subsidiary of Porter Bancorp, Inc. (NASDAQ: PBIB),
awarding the plaintiffs compensatory damages of $1,515,000 and punitive
damages of $5,500,000.

The case arose from a settlement in which PBI Bank agreed to release the
plaintiffs and guarantors from obligations of more than $26 million related to
a real estate project in Louisville. The plaintiffs were granted a right of
first refusal to repurchase a tract of land within the project. In exchange,
the plaintiffs conveyed the real estate securing the loans to PBI Bank. A
third-party made an offer to purchase the tract of land. After plaintiffs
declined to exercise their right of first refusal, PBI Bank sold the tract to
the third-party. Plaintiffs alleged that the Bank had knowledge of the
third-party before the conveyance of the land by the Plaintiffs to the Bank.
Plaintiffs asserted claims of fraud, breach of fiduciary duty, breach of the
duty of good faith and fair dealing, tortuous interference with prospective
business advantage and conspiracy to commit fraud, negligence, and conspiracy
against PBI Bank.

After conferring with its legal advisors, PBI Bank believes the findings and
damages are excessive and contrary to the law, and that it has meritorious
grounds to seek reconsideration of the verdict and to appeal. PBI Bank intends
to file motions to reduce or overturn the award and otherwise for
reconsideration of the case.

About Porter Bancorp, Inc.

Porter Bancorp, Inc., a bank holding company headquartered in Louisville,
Kentucky, had $1.1billion in assets asof March31, 2013. Through Porter’s
subsidiary PBI Bank, it operates 18 full service banking offices in Kentucky.
Porter Bancorp’s common stock is traded on the Nasdaq Capital Market under the
symbol “PBIB.”

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,” “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 currently
expected due to various risks and uncertainties, including those discussed
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.



Porter Bancorp, Inc.
John T. Taylor, 502-499-4800
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