CommunityOne Bancorp      April 30, 2014   First Quarter 2014 Earnings Presentation
 Presenters         Brian Simpson      Chief Executive Officer         David Nielsen      Chief Financial Officer         Neil Machovec      Chief Credit Officer           2
 Forward Looking Statements & Other Information              Forward Looking Statements   This presentation contains certain forward-looking statements within the safe harbor rules of the federal securities laws.   These statements generally relate to COB’s financial condition, results of operations, plans, objectives, future   performance or business. They usually can be identified by the use of forward-looking terminology, such as “believes,”   “expects,” or “are expected to,” “plans,” “projects,” “goals,” “estimates,” “may,” “should,” “could,” “would,” “intends to,”   “outlook” or “anticipates,” or variations of these and similar words, or by discussions of strategies that involve risks and   uncertainties. Forward looking statements are subject to risks and uncertainties, including but not limited to, those risks   described in COB’s Annual Report on Form 10-K for the year ended December 31, 2013 under the section entitled   “Item 1A, Risk Factors,” and in the Quarterly Reports of Form 10-Q and other reports that are filed by COB with the   Securities and Exchange Commission. You are cautioned not to place undue reliance on these forward-looking   statements, which are subject to numerous assumptions, risks and uncertainties, and which change over time. These   forward-looking statements speak only as of the date of this presentation.  Actual results may differ materially from   those expressed in or implied by any forward looking statements contained in this presentation.   We assume no duty   to revise or update any forward-looking statements, except as required by applicable law.   Non-GAAP Financial Measures   In addition to the results of operations presented in accordance with Generally Accepted Accounting Principles (GAAP),   COB management uses and this presentation contains or references, certain non-GAAP financial measures, such as   core earnings, core noninterest expense, core noninterest expense to average assets, core noninterest income, and   tangible shareholders’ equity. COB believes  these non-GAAP financial measures provide information useful to   investors in understanding our underlying operational performance and our business and performance trends as they   facilitate comparisons with the performance of others in the financial services industry; however, these non-GAAP   financial measures should not be considered an alternative to GAAP. The non-GAAP financial measures contained   within this presentation should be read in conjunction with the audited financial statements and analysis as presented in   COB’s Annual Report on Form 10-K as well as the unaudited financial statements and analyses as presented in COB’s   Quarterly Reports on Form 10-Q.  A reconciliation of non-GAAP measures to the most directly comparable GAAP   measure is included within tables in the presentation or with the appendix to this presentation.     3
 Operating Highlights    Third consecutive profitable   quarter    Net income before taxes of $1.3   million   – Increase of 5% from 4Q   2013 and $4.0 million better   than the same quarter in   2013    Net interest margin of 3.43%    – Increase of 23 bps from 1Q   2013 and decline of 9 bps   from 4Q 2013    Positive credit quarter    – Annualized net charge-offs of   0.02%, OREO expenses of   $(0.3) million and recovery of   provision of $0.7million   – NPA’s fell to 2.9% of assets     $5.5 million (23%) reduction in   year over year NIE    Loan portfolio grew $7.5 million   in 1Q at an annualized growth   rate of almost 3%    Deposits grew $19.2 million in   1Q at an annualized growth rate   of over 4%   4   Quarterly Results   Results of Operations   Dollars in thousands 1Q 2013 2Q 2013 3Q 2013 4Q 2013 1Q 2014   Net interest income 15,173$      15,414$      17,382$      16,464$      15,479$        Recovery of Provision (Provision) for loan losses (110)           1,057         350            (1,820)        684              Noninterest income 6,533         5,247         4,487         4,147         3,943           Noninterest expense (24,339)      (24,665)      (17,927)      (17,550)      (18,806)        Net income (loss) before tax (2,743)        (2,947)        4,292         1,241         1,300           Income tax benefit (expense) (1,853)        (236)           (286)           1,049         (23)               Net income (loss) (4,596)        (3,183)        4,006         2,290         1,277           40$            1,821$       4,698$       3,808$       1,642$         1  Non-GAAP measure.  See Appendix for reconciliation to GAAP presentation.   Core Earnings 1   Quarterly Performance Metrics   Dollars in thousands except per share data 1Q 2013 2Q 2013 3Q 2013 4Q 2013 1Q 2014   Net income (loss) before taxes (2,743)$      (2,947)$      4,292$       1,241$       1,300$         Net income (loss) (4,596)        (3,183)        4,006         2,290         1,277           Net income (loss) per share (0.21)          (0.15)          0.18           0.11           0.06             Return on average assets (0.88%) (0.62%) 0.79% 0.45% 0.26%   Return on average equity (19.3%) (14.5%) 21.0% 11.1% 6.2%   Net interest margin 3.20% 3.27% 3.76% 3.52% 3.43%   C re no interest expense to average assets   1 3.66% 3.59% 3.42% 3.34% 3.59%   Loans held for investment 1,113,765   1,189,413   1,195,142   1,212,2 8   1,219,785     D p sits 1,856,561   1,811,485   1,790,607   1,748,705   1,767,930     NPA's to total assets 5.6% 4.7% 4.1% 3.2% 2.9%   1  Non-GAAP measure.  See page 7 for reconciliation to GAAP presentation.
 0.0%   1.0%   2.0%   3.0%   4.0%   5.0%   6.0%   1Q 2013 2Q 2013 3Q 2013 4Q 2013 1Q 2014   Yield on Loans Yield on Investment Securities   0.0%   0.5%   1.0%   1.5%   2.0%   2.5%   3.0%   3.5%   4.0%   1Q 2013 2Q 2013 3Q 2013 4Q 2013 1Q 2014   Cost of Interest Bearing Deposits Net Interest Margin   Net Interest Margin    Net interest margin improved   23 bps year over year from   1Q 2013 and declined 9 bps   from 4Q to 3.43%     Earning asset yield declined   7 bps in the quarter   – Securities yield improved   9 bps to 2.67% in 1Q   – Loan yield excluding   accretion declined 10 bps    Average earning assets   were $28.6 million lower   – Average loans rose $10.4   million and average   securities fell $25.7   million    Loan accretion on Granite   purchased impaired loans   was $0.9 million in 1Q 2014   vs. $1.3 million in 4Q 2013    1Q cost of interest bearing   deposits fell 2 bps to 48 bps    Liability costs rose as we   fixed liabilities and extended   duration      5   Quarterly Loan and Securities Yields Quarterly Margin and Cost of Deposits   Quarterly Results   Average Balances, Yields and Net Interest Margin   Dollars in thousands 1Q 2013 2Q 2013 3Q 2013 4Q 2013 1Q 2014   Average loans (includes loans held for sale) 1,147,347$ 1,114,841$ 1,188,357$ 1,199,309$ 1,209,714$      Average yield 5.24% 5.21% 5.35% 4.97% 4.73%   Average loans and securities 1,712,572   1,692,304   1,784,130   1,785,541   1,770,270     Average earning assets 1,931,330   1,895,137   1,839,359   1,859,379   1,830,822        Average yield 3.80% 3.85% 4.29% 4.05% 3.98%   Average interest bearing liabilities 1,734,391   1,675,133   1,606,302   1,611,915   1,585,272        Average rate 0.68% 0.65% 0.61% 0.61% 0.63%      Average cost of interest bearing deposits 0.57% 0.54% 0.51% 0.50% 0.48%   Net interest margin 3.20% 3.27% 3.76% 3.52% 3.43%   Net interest rate spread 3.13% 3.20% 3.68% 3.44% 3.35%
 Noninterest Income    Core noninterest income   excluding mortgage was   up $0.4 million (10%) on   comparable quarter basis    Core noninterest income   fell slightly ($0.2 million)   to $3.9 million from 4Q   2013    Mortgage income fell $61   thousand from last   quarter on lower   seasonal volume and mix   shift to portfolio assets vs   Fannie Mae sales   – Quarter end pipeline   growth    Service charge income   was down in 1Q but   seasonally consistent,   and 14% higher than the   same quarter of 2013    Wealth fee income up   49% year over year and   5% over 4Q 2013         6   Quarterly Results   Noninterest Income   Dollars in thousands 1Q 2013 2Q 2013 3Q 2013 4Q 2013 1Q 2014   Service charges on deposit accounts 1,376$       1,681$       1,858$       1,798$       1,564$         Mortgage loan income 744            921            420            235            174              Cardholder and merchant services income 1,069         1,174         1,161         1,127         1,113           Trust and investment services 241            394            329            341            358              Bank-owned life insurance 263            276            267            267            252              Other service charges, commissions and fees 258            337            365            356            352              Securities gains, net 2,377         345            50              -                -                  Other income 205            119            37              23              130              Total noninterest income 6,533$       5,247$       4,487$       4,147$       3,943$         Less:   Securities gains, net 2,377         345            50              -                -                  Core noninterest income  1 4,156$       4,902$       4,437$       4,147$       3,943$         1  Non-GAAP measure.  Reconciliation included in this table.
 Noninterest Expense    Continued cost control,   merger completion and   improved credit reduced   noninterest expense (NIE)   by $5.5 million, or 21%,   year over year    1Q NIE rose $1.3 million   over the prior quarter on   higher personnel costs   related to incentives and   payroll taxes   – Core NIE rose $1.0   million    Average FTE was reduced   by 20, or 3%, during 1Q   – Follows 12 average FTE   reduction in 4Q 2013   – 6% FTE reduction from a   year ago         7   Quarterly Results   Noninterest Expense   Dollars in thousands 1Q 2013 2Q 2013 3Q 2013 4Q 2013 1Q 2014   Personnel expense 10,679$      10,807$      9,663$       9,512$       10,393$        Net occupancy expense 1,831         1,671         1,558         1,331         1,553           Furniture, equipment and data processing expense 2,368         2,094         2,050         2,126         2,003           Professional fees 1,493         760            222            625            633              Stationery, printing and supplies 186            187            136            135            162              Advertising and marketing 665            179            150            141            153              Other real estate owned expense 883            3,332         (98)             21              261              Credit/debit card expense 425            473            627            618            595              FDIC insurance 670            664            646            663            639              Loan collection expense 1,519         1,146         1,120         548            657              Merger-related expense 1,509         1,989         -                -                -                  Core deposit intangible amortization 352            352            352            351            352              Other expense 1,759         1,011         1,501         1,479         1,405           Total noninterest expense 24,339$      24,665$      17,927$      17,550$      18,806$        Less:   Other real estate owned expense 883$          3,332$       (98)$           21$            261$            Merger-related expense 1,509         1,989         -                -                -                  Loan collection expense 1,519         1,146         1,120         548            657              Branch closure and restructuring expenses 587            15              (105)           178            183              Mortgage and litigation accruals -                (370)           (117)           -                (75)               Rebranding expense 552            58              6               -                -                  Core noninterest expense  1 19,289$      18,495$      17,121$      16,803$      17,780$        Average Quarterly FTE Employees 613            630            608            596            576              1  Non-GAAP measure. Reconciliation included in this table.
 13%   4% 5% 3% 5%   25%   26% 26% 29% 27%   47%   51% 51% 60% 60%   8% 8% 8% 8% 8%   0%   10%   20%   30%   40%   50%   60%   70%   80%   90%   100%   1Q 2013 2Q 2013 3Q 2013 4Q 2013 1Q 2014   Other assets   Loans   Investment securities   Cash and bank balances   Balance Sheet    Total assets grew at 5%   annualized growth rate in   1Q, 1.2% for the quarter    Cash increased $37.5   million in 1Q as we held   cash for future loan growth     Investment portfolio   decreased from $566.4   million in 4Q to $551.5   million in 1Q   – Portfolio positioned to   fund loan growth   – Portfolio weighted   toward liquid GSE MBS   – Yield on portfolio rose 9   bps to 2.67% in 1Q    Lower interest rates in 1Q   resulted in $3.3 million   decrease in unrealized   loss, net of tax      8   Quarterly Balance Sheet Composition   Quarterly Balance Sheet   Dollars in thousands 1Q 2013 2Q 2013 3Q 2013 4Q 2013 1Q 2014   Cash and interest bearing bank balances 262,293$    88,470$      103,074$    67,430$      104,951$      Investment securities 565,870      608,207      593,396      566,409      551,528        Loans and loans held for sale, net 1,089,136   1,168,404   1,172,489   1,187,299   1,195,707     Other real estate owned 46,537       35,762       33,179       28,395       24,624         Intangible assets 11,650       11,608       11,402       11,119       10,802         Other assets 117,825      123,862      123,633      124,380      120,869        Total assets 2,093,311$ 2,036,313$ 2,037,173$ 1,985,032$ 2,008,481$   Deposits 1,856,161$ 1,811,485$ 1,790,608$ 1,748,705$ 1,767,930$   Borrowings 122,320      124,117      147,663      142,165      140,406        25,456       24,665       18,100       13,801       14,814         Equity 89,374       76,046       80,802       80,361       85,331         Total liabilities and equity 2,093,311$ 2,036,313$ 2,037,173$ 1,985,032$ 2,008,481$   Other liabilities
 $200 $168 $158 $141 $134   $96 $192 $196 $213 $208   $818   $829 $841 $859 $880    -    200    400    600    800    1,000    1,200    1,400   1Q 2013 2Q 2013 3Q 2013 4Q 2013 1Q 2014   $ in    M   illion   s    Pass Rated Loans    Pass Rated   Purchased   Residential Loan   Pools    Non-Pass Rated   Loans   Loan Portfolio    Loans held for investment   increased $7.5 million in   1Q 2014   – Annualized growth rate   of almost 3%   – All lines of business   grew loans during the   quarter    Total pass rated loans   grew by $15.0 million   – Annualized growth of   pass rated loans of 6%   – No loan purchases in   1Q    Non-pass rated loans fell   by $7.4 million, or 5%    Loan portfolio   composition balanced   between consumer and   commercial exposure    1-4 family residential   mortgage loans held for   investment stable at 40%   of loans  9   Quarterly Loan Portfolio Mix   Quarterly Loan Portfolio   Dollars in thousands 1Q 2013 2Q 2013 3Q 2013 4Q 2013 1Q 2014   Loans held for sale 5,012$       4,076$       2,734$       1,836$       1,961$         Loans held for investment:   Commercial and agricultural 77,490       69,343       69,617       72,252       75,977         Real estate-construction 57,653       64,636       67,542       64,083       67,304         Real estate-mortgage:   1-4 family residential 367,389      462,552      470,946      4 9,251      484,511        1-4 family HELOC 153,419      148,192      147,317      146,856      147,263        Commercial 414,995      400,772      395,085      394,924      396,110        Consumer 42,819       43,918       44,635       44,882       48,620         Total Loans held for investment 1,113,765   1,189,413   1,195,142   1,212,248   1,219,785     Total loans 1,118,777$ 1,193,489$ 1,197,876$ 1,214,084$ 1,221,746$
 14%   17% 17% 17% 18%   20%   18% 20% 20% 20%   4% 4%   4% 5% 5%   25% 24%   25% 26% 25%   21% 20%   19% 19% 18%   3% 3% 2% 2% 1%   14% 13% 13% 13% 13%   0%   20%   40%   60%   80%   100%   1Q 2013 2Q 2013 3Q 2013 4Q 2013 1Q 2014   Noninterest-bearing demand Interest-bearing demand Savings Money market   Time deposits < $100,000 Brokered Time deposits > $100,000   Deposits    Deposits grew by $19.2   million (1%) from year end   – $9.3 million decrease in   CD’s, $3.8 million higher   cost brokered CD   – 4% annualized growth   rate in 1Q 2014    Core deposits stable at   85% during 1Q    Low cost core grew 2% to   68% of deposits, up from   67% last quarter   – 3% growth in low cost   core from a year ago    Cost of interest bearing   deposits fell 2 bps to 48 bps   and the cost of all deposits   fell to 40 bps from 41 bps   last quarter and 54 basis   points a year ago   10   Quarterly Deposit Mix   Co   re      N   o   n    Co   re      Quarterly Deposits   Dollars in thousands 1Q 2013 2Q 2013 3Q 2013 4Q 2013 1Q 2014   Noninterest-bearing demand 265,455$    304,992$    308,178$    290,461$    315,515$      Interest-bearing demand 364,282      334,087      350,889      347,791      346,344        Savings 79,895       80,682       80,435       80,507       85,038         Money market 455,337      442,720      442,887      447,672      448,037        Brokered 47,339       47,220       29,218       29,218       25,468         Time deposits < $100,000 386,087      360,874      343,855      323,661      310,786        Time deposits > $100,000 258,166      240,910      235,145      229,395      236,742        Total deposits 1,856,561$ 1,811,485$ 1,790,607$ 1,748,705$ 1,767,930$
 Deferred Tax Asset and Valuation Allowance    Consolidated net deferred   tax asset of $155.8 million   at 1Q 2013   – $8.2 million currently   reflected on balance   sheet and in equity   – $147.6 million   remaining DTA   valuation allowance     The Company evaluates   each quarter the continued   need for the valuation   allowance on the deferred   tax assets      11   Deferred Tax Asset Rollforward   Dollars in Millions Net DTA   DTA   Valuation   Allowance   Unreserved   Net DTA   Beginning Balance , December 31, 2013 158.2$       148.0$       10.2$           Net income, tax strategies and other adjustments (2.4)            (0.4)            (2.0)              Ending Balance, March 31, 2014 155.8$       147.6$       8.2$
 Capital and Liquidity    CommunityOne   Bancorp &   CommunityOne Bank   capital ratios continued   to increase in 1Q   – Bank leverage ratio   of 7.74%   – Bancorp and Bank   are “well capitalized”    Loans to deposits ratio   stable at 69% in 1Q    Tangible shareholders’   equity impacted by   – $1.3 million earnings    – $3.3 million, net of   tax, unrealized gains   in AFS portfolio   12   Quarterly Capital and Liquidity Ratios   1Q 2013 2Q 2013 3Q 2013 4Q 2013 1Q 2014 Well Capitalized########## ##########   CommunityOne Bancorp   Leverage 5.37% 5.38% 5.83% 5.96% 6.20% 5.00%   Tier 1 risk based capital 9.19% 8.76% 9.18% 9.48% 9.67% 6.00%   Total risk based capital 12.58% 12.08% 12.38% 12.62% 12.80% 10.00%   Tangible common equity to tangible assets 3.73% 3.18% 3.43% 3.51% 3.73%   Loans to deposits 60% 66% 67% 69% 69%   Cash and investment securities to deposits 45% 38% 39% 36% 37%   CommunityOne Bank   Leverage 6.15% 6.95% 7.39% 7.49% 7.74% 5.00%   Tier 1 risk based capital 10.24% 11.31% 11.62% 11.94% 12.09% 6.00%   Total risk based capital 11.51% 12.57% 12.88% 13.20% 13.38% 10.00%   T ngible Shareholders' Equity Rollf rward   Dollars in thousands   Tangible shareholders' equity, December 31, 2013 69,242$        Other comprehensive loss - AFS securities, net of tax 3,267           Other comprehensive gain - retirement plans 25                Net income 1,277           Stock compensation to directors 14                Decrease in intangible assets, net 317              Stock compensation to employees 387              Tangible shareholders' equity, March 31, 2014 1 74,529$        1  Non-GAAP measure.  See Appendix for reconciliation to GAAP presentation.
 $71   $59   $51   $35 $34   $47   $36   $33   $28   $25   $0   $20   $40   $60   $80   $100   $120   $140   1Q 2013 2Q 2013 3Q 2013 4Q 2013 1Q 2014   M   il   li   o   n   s   o   f   D   o   ll   a   rs   Nonperforming loans OREO and foreclosed assets   $63   $47 $44 $46 $43   $137   $121   $115   $96   $91   $0   $25   $50   $75   $100   $125   $150   $175   $200   $225   $250   1Q 2013 2Q 2013 3Q 2013 4Q 2013 1Q 2014   M   il   li   o   n   s   o   f   D   o   ll   a   rs   Special Mention Loans Classified Lo s   Asset Quality    Continued asset quality   improvement in 1Q   – Classified loans   decreased by $4.7   million (5%)   – Nonperforming loans   reduced to 2.8% of   total loans   – NPA’s reduced to 2.9%   of assets    The ALL has been   reduced to $26.0 million   from $26.8 million at year   end 2013, reflecting the    improved asset quality    ALL is 2.13% of loans held   for investment    $62 thousand of 1Q net   charge-offs; annualized   net charge-off rate of 2   bps   13   Quarterly Asset Quality Trends   33% decline   50% decline   Quarterly Asset Quality   Dollars in thousands 1Q 2013 2Q 2013 3Q 2013 4Q 2013 1Q 2014   Allowance for loan losses (ALL) 29,641$      25,085$      25,387$      26,785$      26,039$        Nonperforming loans to Total loans 6.3% 5.0% 4.3% 2.9% 2.8%   Nonperforming assets to Total assets 5.6% 4.7% 4.1% 3.2% 2.9%   Annualized net charge-offs to Average loans (0.08%) 1.26% (0.22%) 0.14% 0.02%   Allowance f r loan loss to Total loans 2.66% 2.11% 2.12% 2.21% 2.13%
 $19.2   $15.9   $12.8 $11.6 $10.2   $37.2   $31.4   $27.4   $18.4 $19.9   $11.8   $9.8   $10.3   $4.7 $3.4   $0   $20   $40   $60   $80   1Q 2013 2Q 2013 3Q 2013 4Q 2013 1Q 2014   $ i   n   Mi   lli   on   s   Consumer   Real estate - construction   RE - Commercial   RE - 1-4 Family   Commercial and   agricultural   Nonperforming Assets    Non-performing assets fell   by $5.0 million (8%) during   the quarter, and $58.5   million (50%) since 1Q 2013    Nonperforming loans fell by   $1.2 million (3%) in 1Q, and   by $36.6 million (52%) since   1Q 2013     OREO dispositions have   continue to outpace   foreclosure additions     – OREO reduced by $3.8   million (13%) in 1Q and   $21.9 million (47%) since   1Q 2013    As of quarter end, an   additional $3.6 million of   OREO (15%) was under   contract for sale   14   Quarterly Nonperforming Loan Composition   52% decline   Nonperforming Loans and OREO   Dollars in thousands 1Q 2013 2Q 2013 3Q 2013 4Q 2013 1Q 2014   Commercial and agricultural 2,350$       1,654$       590$          516$          450$            Real estate - construction 11,762       9,783         10,266       4,677         3,437           Real estate - mortgage:   1-4 family residential 19,166       15,917       12,822       11,580       10,151         Commercial 37,217       31,380       27,425       18,380       19,888         Consumer 63              269            104            12              32                Total nonperforming loans 70,558       59,003       51,207       35,165       33,958         OREO and other foreclosed assets 46,537       35,762       33,179       28,395       24,624         Total nonperforming assets 117,095$    94,765$      84,386$      63,560$      58,582$
 Portfolio and Allowance for Loan Losses    Originated loans of $1.0   billion with ALL of $20.3   million at 1Q    Granite PC loans of $29.5   million with ALL of $0.5   million at 1Q    No net credit costs in 1Q on   loan portfolio   – $0.7 million in recovery of   provision offset by $(0.3)   million net OREO costs    Cash flow reforecast of   Granite PI loans in 1Q   – $149.0 million remaining   carrying value   – $5.2 million ALL at 1Q   2014   – Additional $1 million in   accretable yield forecasted   based on 1Q cash flow   forecast      15   Quarterly Loan Portfolio and ALL   1Q 2013 2Q 2013 3Q 2013 4Q 2013 1Q 2014   Originated loans 876,301      971,086      990,460      1,023,984   1,043,263     Granite purchased impaired (PI) loans 205,884      189,160      176,594      161,651      149,033        Granite purchased contractual (PC) loans 31,580       29,167       28,088       28,449       29,450              Total loans 1,113,765$ 1,189,413$ 1,195,142$ 1,214,084$ 1,221,746$   Originated loan ALL (23,825)      (20,841)      (20,927)      (20,603)      (20,286)        Granite PI loan ALL (5,373)        (4,066)        (4,066)        (5,650)        (5,237)          Granite PC loan ALL (443)           (178)           (394)           (532)           (516)                  Pro forma total ALL (29,641)$     (25,085)$     (25,387)$     (26,785)$     (26,039)$       Originated loan ALL / Originated loans (2.72%) (2.15%) (2.11%) (2.01%) (1.94%)   Granite PI ALL  / Granite PI loans (2.61%) (2.15%) (2.30%) (3.50%) (3.51%)   Granite PC ALL / Granite PC loans (1.40%) (0.61%) (1.40%) (1.87%) (1.75%)
 16    Loans grew $7.5 million (1%) in 1Q; Annualized growth of   almost 3%   – Growth ahead of plan in 1Q; Loan to deposit ratio of 69%   – Loan growth in all business lines   – Pass rated loans grew $15 million; annualized growth of 6%   – Resolution activity less of a drag on loan growth than prior years          Grow loans          Deposits grew over 1% in 1Q; low cost core deposits grew 2%   – Ahead of 2014 3% growth target   – Treasury Management product and mobile banking infrastructure   investments on track    Grow core deposits          Credit resolution activities ahead of schedule   – Reduced NPAs by 8% in 1Q, or $5 million;  NPA ratio of 2.9% vs   year end goal of 2.3%   – Reduced classified assets by $8.4 million with 2014 goal of $40   million   – Bank classified asset ratio from 70% to 67%             Resolve remaining   credit issues          Year over year reduction in core noninterest expenses of 8%   – Expenses were lower than our internal plan by $1 million in 1Q   – NIE to average assets ratio of 3.59% higher than goal based on   slightly lower asset levels than expected          Invest in new businesses   while maintaining focus   on expenses         Progress on 2014 Goals   16
 Appendix   17
 Non-GAAP Measures    Reconciliation of non-   GAAP measures to the   most directly   comparable GAAP   measure   18   Reconciliation of Non-GAAP Measures   Dollars in thousands 1Q 2013 2Q 2013 3Q 2013 4Q 2013 1Q 2014   Net income (loss) (4,596)$      (3,183)$      4,006$       2,290$       1,277$         Less taxes, credit costs and nonrecurring items:      TaxesIncome tax benefit (expense) (1,853)        (236)           (286)           1,049         (23)                  Other real estate owned expenseGain on sales of securiti s 2,377         345            50              -                -                     Provision expenseOther real estate owned expense (883)           (3,332)        98              (21)             (261)                Merger related expenseProvision for loan losses (110)           1,057         350            (1,820)        684              Mortgage and litigation accruals -                370            117            -                75                Loan collection expense (1,519)        (1,146)        (1,120)        (548)           (657)             Branch closure and restructuring expenses (587)           (15)             105            (178)           (183)             Rebranding expense (552)           (58)             (6)              -                -                  Merger-related expense (1,509)        (1,989)        -                -                -                  Core Earnings 40$            1,821$       4,698$       3,808$       1,642$         Reconciliation of Non-GAAP Measures   Dollars in thousands 1Q 2013 2Q 2013 3Q 2013 4Q 2013 1Q 2014   Total shareholders' equity 89,374$      76,046$      80,802$      80,361$      85,331$        Less:   Goodwill (4,205)        (4,205)        (4,205)        (4,205)        (4,205)          Core deposit and other intangibles (7,445)        (7,403)        (7,196)        (6,914)        (6,597)          Tangible shareholders' equity 77,724$      64,438$      69,401$      69,242$      74,529$