CommunityOne Bancorp      October 31, 2013   Third Quarter 2013 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, 2012 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,   tangible shareholders’ equity, pro forma ALL and fair value mark, Granite purchased impaired loan ALL and FV mark,   and Granite purchased contractual loan ALL and FV mark. 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
 Quarterly Operating Highlights    Return to profitability in 3Q   – First operating profit   since 2Q 2008   – ROAA of 79 basis points    Net income of $4.0 million   – $7.2 million better than   2Q 2013   – $0.18 per share vs. net   loss of $(0.15) last   quarter   – Core earnings were $4.7   million in 3Q, up from   $1.8 million in 2Q    Net interest margin   improved to 3.76% vs.   3.27% in 2Q, and 2.95% in   3Q 2012    Credit positive in 3Q with   provision recovery, charge-   off recoveries and OREO   recoveries net of expenses    Core noninterest expense to   average assets fell to 3.42%   from 3.59% in 2Q   4   Quarterly Performance Metrics   Dollars in thousands except per share data 3Q 2012 4Q 2012 1Q 2013 2Q 2013 3Q2013   Net income/(loss) before taxes from continuing operations (4,789)$      (7,207)$      (2,743)$      (2,947)$      4,292$         Net income/(loss) from continuing operations, net of taxes (4,712)        (6,296)        (4,596)        (3,183)        4,006           Net income/(loss) to common shareholders (4,712)        (6,296)        (4,596)        (3,183)        4,006           (0.22)          (0.29)          (0.21)          (0.15)          0.18             Net income/(loss) to common shareholders per share (0.22)          (0.29)          (0.21)          (0.15)          0.18             Return on average assets (0.83%) (1.14%) (0.88%) (0.62%) 0.79%   Return on average equity (17.42%) (23.86%) (19.30%) (14.50%) 20.98%   Net interest margin 2.95% 2.96% 3.20% 3.27% 3.76%   Core noninterest expense to average assets   1 3.37% 3.14% 3.66% 3.59% 3.42%   1  Non-GAAP measure.  See Appendix for reconciliation to GAAP presentation.   Net income/(loss) from continuing operations to        common shareholders per share   Quarterly Results   Results of Operations   Dollars in thousands, except per share data 3Q 2012 4Q 2012 1Q 2013 2Q 2013 3Q2013   Net interest income 15,202$      14,849$      15,173$      15,414$      17,382$        Provisi  for loan losses (32)             ( , 72)        (110)           1,057         350              Noninterest income 4,643         6,957         6,533         5,247         4,487           Noninterest expense (24,602)      (25,841)      (24,339)      (24,665)      (17,927)        Net loss from continuing operations, net of taxes (4,712)        (6,296)        (4,596)        (3,183)        4,006           Net loss to common shareholders (4,712)        (6,296)        (4,596)        (3,183)        4,006           936$          2,328$       40$            1,821$       4,698$         1  Non-GAAP measure.  See Appendix for reconciliation to GAAP presentation.   Core Earnings 1
 Net Interest Margin    Net interest margin   improved 49 bps in 3Q to   3.76%    Earning asset yield   increased 44 bps in the   quarter   – Average loan yield   increased to 5.35%   – Securities yield   improved to 2.51% in   3Q from 2.44% in 2Q   – Average low yielding   cash balances declined     Average loans and   securities increased by 5%,   or $91.8 million, in 3Q 2013   – Ending loan balances   were up $5.7 million    3Q cost of deposits   declined 3 bps to 51 bps    Loan and deposit net   accretion was $2.2 million   in 3Q 2013 vs. $2.0 million   in 2Q 2013         5   Quarterly Results   Average Balances, Yields and Net Interest Margin   Dollars in thousands 3Q 2012 4Q 2012 1Q 2013 2Q 2013 3Q2013   Average loans (includes loans held for sale) 1,262,229$ 1,209,947$ 1,147,347$ 1,114,841$ 1,188,357$      Average yield 5.14% 5.12% 5.24% 5.21% 5.35%   Average loans and securities 1,737,261   1,718,446   1,712,572   1,692,304   1,784,130     Average earning assets 2,055,193   2,000,882   1,931,330   1,895,137   1,839,359        Average yield 3.73% 3.66% 3.80% 3.85% 4.29%   Average interest bearing liabilities 1,858,339   1,811,224   1,734,391   1,675,133   1,606,302        Average rate 0.86% 0.77% 0.68% 0.65% 0.61%      Average cost of interest bearing deposits 0.76% 0.67% 0.57% 0.54% 0.51%   Net interest margin 2.95% 2.96% 3.20% 3.27% 3.76%   Net interest rate spread 2.87% 2.89% 3.13% 3.20% 3.68%   0.0%   1.0%   2.0%   3.0%   4.0%   5.0%   6.0%   3Q 2012 4Q 2012 1Q 2013 2Q 2013 3Q 2013   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%   3Q 2012 4Q 2012 1Q 2013 2Q 2013 3Q 2013   Cost of Interest Bearing D posits Net Interest Margin   Quarterly Loan and Securities Yields Quarterly Margin and Cost of Deposits
 Quarterly Noninterest Income    Core noninterest income   decreased $0.5 million (9%)   to $4.4 million from 2Q   2013    Strong service charge   income in 3Q after bank   merger, expiration of the   service charge waiver and   improved customer activity    Industry wide weakness   impacted our mortgage   business in 3Q;  down 54%   on reduced origination   volume and sales to Fannie   Mae    Continued solid   performance in Wealth    Nonrecurring securities   gains of $50 thousand in   3Q compared to $345   thousand in 2Q 2013         6   Quarterly Results   Noninterest Income   Dollars in thousands 3Q 2012 4Q 2012 1Q 2013 2Q 2013 3Q2013   Service charges on deposit accounts 1,778$       1,656$       1,376$       1,681$       1,858$         Mortgage loan income 728            1,014         744            921            420              Cardholder and merchant services income 1,119         1,143         1,069         1,174         1,160           Trust and investment services 234            344            241            394            329              Bank-owned life insurance 290            285            263            276            267              Other service charges, commissions and fees 252            351            258            337            365              Securities gains/(losses), net (33)             2,198         2,377         345            50                Other income/(loss) 275            (34)             205            119            38                Total noninterest income 4,643$       6,957$       6,533$       5,247$       4,487$         Less:   Securities gains/(losses), net (33)             2,198         2,377         345            50                Core noninterest income  1 4,676$       4,759$       4,156$       4,902$       4,437$         1  Non-GAAP measure.  Reconciliation included in this table.
 Quarterly Noninterest Expense    Core NIE decreased in 3Q   2013 by $1.4 million, or 7%   – $1.1 million decrease in   personnel expenses   – First full quarter   reflecting synergies post   bank merger    Total NIE fell by $6.7   million, or 27%, from 2Q   2013   – Significant decline in   OREO expenses and   writedowns in 3Q   – Merger-related expenses   decreased $2.0 million in   3Q - now complete    Average FTE fell by 18   during 3Q as a result of the   merger and other actions   – Expect continued   declines in FTE levels         7   Quarterly Results   Noninterest Expense   Dollars in thousands 3Q 2012 4Q 2012 1Q 2013 2Q 2013 3Q 2013   Personnel expense 9,744$       9,700$       10,679$      10,807$      9,663$         Net occupancy expense 1,716         1,576         1,831         1,671         1,558           Furniture, equipment and data processing expense 2,182         2,326         2,368         2,094         2,050           Professional fees 1,473         1,001         1,493         760            221              Stationery, printing and supplies 152            191            186            187            136              Advertising and marketing 166            537            665            179            150              Other real estate owned expense 3,602         6,289         883            3,332         (98)               Credit/debit card expense 432            438            425            473            627              FDIC insurance 1,056         620            670            664            645              Loan collection expense 1,119         895            1,519         1,146         1,120           Merger-related expense 939            884            1,509         1,989         -                  Core deposit intangible amortization 352            351            352            352            352              Other expense 1,669         1,033         1,759         1,011         1,503           Total noninterest expense 24,602$      25,841$      24,339$      24,665$      17,927$        Less:   Other real estate owned expense 3,602$       6,289$       883$          3,332$       (98)$             Merger-related expense 939            884            1,509         1,989         -                  Loan collection expense 2 1,119         895            1,519         1,146         1,120           Branch closure and restructuring expenses -                96              587            15              (105)             Mortgage and litigation accruals -                -                -                (370)           (117)             Rebranding expense -                397            552            58              6                 Core noninterest expense  1 18,942$      17,280$      19,289$      18,495$      17,121$        Average Quarterly FTE Employees 637            627            633            628            610              1  Non-GAAP measure. Reconciliation included in this table.   2  $53 thousand in 1Q and $262 thousand in 2Q were reclassed from prior presentations from Loan collection expense to Other expense.
 Balance Sheet    Balance sheet fully   invested   – Cash increased $14.6   million (17%)    – Net loans increased   $4.1 million   – OREO decreased $2.6   million (7%) in 3Q   – Balance sheet stable at   $2 billion and growing    Other assets includes $7.5   million of deferred tax   assets (DTA)    GAAP equity increased by   $4.8 million on earnings   and OCI impact of   unrealized gains in AFS   portfolio, net of taxes      8   15% 11% 13%   4% 5%   21% 25%   25%   26% 26%   53% 50% 47% 51% 51%   9% 9% 8% 8% 8%   0%   10%   20%   30%   40%   50%   60%   70%   80%   90%   100%   3Q 2012 4Q 2012 1Q 2013 2Q 2013 3Q 2013   Cash and bank balances Investment securities Loans Other assets   Quarterly Balance Sheet Composition   Quarterly Balance Sheet   Dollars in thousands 3Q 2012 4Q 2012 1Q 2013 2Q 2013 3Q 2013   Cash and interest bearing bank balances 327,870$    239,610$    262,293$    88,470$      103,074$      Investment securities 492,386      564,850      565,870      60 ,207      593,396        Loans and loans held for sale, net 1,209,148   1,147,721   1,089,136   1,168,404   1,172,489     Other real estate owned 80,800       63,131       46,537       35,762       33,179         Intangible assets 11,574       11,700       11,650       11,608       11,401         Other assets 116,287      124,553      117,825      123,862      123,634        Total assets 2,238,065$ 2,151,565$ 2,093,311$ 2,036,313$ 2,037,173$   Deposits 1,982,253$ 1,906,988$ 1,856,161$ 1,811,485$ 1,790,608$   Borrowings 124,474      123,705      122,320      124,117      147,663        24,465       22,427       25,456       24,665       18,100         Equity 106,873      98,445       89,374       76,046       80,802         Total liabilities and equity 2,238,065$ 2,151,565$ 2,093,311$ 2,036,313$ 2,037,173$   Other liabilities
 Investment Portfolio    Investment portfolio decreased   from $608.2 million in 2Q to   $593.4 million in 3Q   – Portfolio is weighted toward   liquid US Government   Sponsored Entity backed   mortgage backed securities    Yield on portfolio rose from   2.44% in 2Q to 2.51% in 3Q    Rising interest rates in 3Q were   more than offset by spread   tightening in the MBS portfolio    We do not expect to realize   these losses as we have no   plans to sell these securities    Unrealized losses in OCI are   added back to equity for   regulatory capital ratio   purposes   9   Dollars in thousands   Carrying   Value   Amortized   Cost   Fair   Value   Unrealized   Gain (Loss)   at 3Q 13   3Q Net   Change in   Unrealized   Gain (Loss)   Available for Sale   Government Sponsored Enterprises (GSE) Securities 2,082         2,057         2,082         25              4                 Residential Mortgage-backed Securities - GSE 357,447      373,860      357,447      (16,413)      1,232           Residential Mortgage-backed Securities - Private 21,258       20,484       21,258       774            (830)             Commercial Mortgage-backed Securities - GSE 21,644       22,863       21,644       (1,219)        242              Commercial Mortgage-backed Securities - Private 9,633         10,419       9,633         (786)           69                Corporate Notes 25,007       24,873       25,007       134            (70)               Business Development Company Investment 2,641         1,754         2,641         887            887                 Total 439,712      456,310      439,712      (16,598)      1,534           Held to Maturity   Residential Mortgage-backed Securities - GSE 143,611      143,611      137,055      (6,556)          Commercial Mortgage-backed Securities - Private 10,073       10,073       9,419         (654)                Total 153,684      153,684      146,474      (7,210)          Total Securities 593,396$    609,994$    586,186$    (23,808)$     1,534$         Deferred Tax Impact 810              Net OCI Impact of Change in Unrealized Loss 724$
 Loan Portfolio    Loans held for investment   increased $5.7 million in   3Q 2013   – Annualized growth rate   of 2%    Total pass rated loans   grew by $15.6 million   – Annualized growth of   pass rated loans of 6%    Non-pass rated loans fell   by $9.8 million    Loan portfolio   composition balanced   between consumer and   commercial exposure    1-4 family residential   mortgage loans held for   investment comprised   39% of all loans    10   Quarterly Loan Portfolio Mix   $252 $224 $200 $168 $158   $137   $119   $96 $192 $196   $843   $834   $818   $829 $841   -   200   400   600   800   1,000   1,200   1,400   3Q 2012 4Q 2012 1Q 2013 2Q 2013 3Q 2013   $ in    M   illion   s   Pass Rated Loans   Pass Rated   Purchased   Residential Loan   Pools   Non-Pass Rated   Loans   Quarterly Loan Portfolio   Dollars in thousands 3Q 2012 4Q 2012 1Q 2013 2Q 2013 3Q 2013   Loans held for sale 8,212$       6,974$       5,012$       4,076$       2,734$         Loans held for investment:   Commercial and agricultural 72,669       79,704       77,490       69,343       69,617         Real estate-construction 61,263       58,414       57,653       64,636       67,542         Real estate-mortgage:   1-4 family residential 426,665      395,613      367,389      62,552      470,946        1-4 family HELOC 163,586      157,925      153,419      148,192      147,317        Commercial 463,173      441,836      414,995      400,772      395,085        Consumer 44,439       43,543       42,819       43,918       44,635         Total Loans held for investment 1,231,795   1,177,035   1,113,765   1,189,413   1,195,142     Total loans 1,240,007$ 1,184,009$ 1,118,777$ 1,193,489$ 1,197,876$
 13% 13% 14%   17% 17%   18% 19% 20%   18% 20%   4% 4%   4% 4%   4%   23% 24%   25% 24%   25%   23% 22%   21% 20%   19%   3% 3%   3% 3% 2%   16% 15% 14% 13% 13%   0%   20%   40%   60%   80%   100%   3Q 2012 4Q 2012 1Q 2013 2Q 2013 3Q 2013   Noninterest-bearing demand Interest-bearing demand Savings Money market   Time deposits < $100,000 Brokered Time deposits > $100,000   Deposits    Core deposits increased   from 82% at year end 2012   to 85% of the total at 3Q   2013    Deposit mix profile   continues to improve   – Low cost core now   represents 66% of   deposits, up from 64%   last quarter   – Time deposits, including   brokered deposits,   declined to 34% from   36% last quarter    Cost of interest bearing   deposits fell to 51 bps and   the cost of all deposits fell   to 42 bps    Deposits declined by $20.9   million (1%) including $18.0   million in high cost brokered   CDs that were not renewed   11   Quarterly Deposit Mix   Co   re      N   o   n   -Co   re      Quarterly Deposits   Dollars in thousands 3Q 2012 4Q 2012 1Q 2013 2Q 2013 3Q 2013   Noninterest-bearing demand 264,370$    251,235$    265,455$    304,992$    308,179$      Interest-bearing demand 358,376      362,406      364,282      334,087      350,889        Savings 73,382       74,436       79,895       80,682       80,435         Money market 450,164      455,734      455,337      442,720      442,887        Brokered 63,455       55,590       47,339       47,220       29,218         Time deposits < $100,000 449,542      417,421      386,087      360,874      343,855        Time deposits > $100,000 322,964      290,166      258,166      240,910      235,145        Total deposits 1,982,253$ 1,906,988$ 1,856,561$ 1,811,485$ 1,790,608$
 Deferred Tax Asset and Valuation Allowance    Consolidated net deferred   tax asset of $159.3 million   at the end of 3Q 2013   – $7.5 million currently   reflected on balance   sheet and in equity   – $151.8 million   remaining DTA   valuation allowance     Estimated impact of the   Section 382 change in   control at Bank of Granite   Corp.   – $28.3 million reduction   in Bank of Granite Corp.   DTAs as a result of NOL   and built in loss   limitations    State of NC reduced   corporate income tax rate   from 6.9% to 6.0% in 2014   and 5.0% in 2015   – $5.3 million reduction in   net DTA    12   Deferred Tax Asset Rollforward   Dollars in Millions Net DTA   DTA   Valuation   Allowance   Unreserved   Net DTA   Beginning Balance , December 31, 2012 180.9$       (180.1)$      0.8$             OCI, tax strategies and other adjustments 12.0           (5.3)            6.7               (28.3)          28.3           -                  (5.3)            5.3             -                  Ending Balance, September 30, 2013 159.3$       (151.8)$      7.5$             Impact of Bank of Granite Corp. Section 382 change        in control limitations on NOLs and built in losses   Impact of State of North Carolina corporate income tax        rate reduction
 Capital and Liquidity    Company and   CommunityOne Bank   capital ratios continued   to increase in 3Q   – Bank leverage ratio   of 7.39%   – Bank is “well   capitalized”    Loans to deposits ratio   increased to 67% in 3Q   2013, from 66% last   quarter    Tangible shareholders’   equity increased to   $69.4 million   13   Quarterly Capital and Liquidity Ratios   3Q 2012 4Q 2012 1Q 2013 2Q 2013 3Q 2013   Well   Capitalized   CommunityOne Bancorp   Leverage 5.68% 5.45% 5.37% 5.38% 5.83% 5.00%   Tier 1 risk based capital 9.60% 9.26% 9.19% 8.75% 9.18% 6.00%   Total risk based capital 12.47% 12.34% 12.58% 12.06% 12.38% 10.00%   Tangible common equity/tangible assets 4.28% 4.05% 3.73% 3.18% 3.43%   Loans/deposits 62% 62% 60% 66% 67%   Cash and investment securities/deposits 41% 42% 45% 38% 39%   CommunityOne Bank   Leverage 6.46% 6.17% 6.15% 6.95% 7.39% 5.00%   Tier 1 risk based capital 10.52% 10.13% 10.24% 11.31% 11.62% 6.00%   Total risk based capital 11.79% 11.40% 11.51% 12.57% 12.88% 10.00%   T gible Shareholders' Equity Rollforward 1   Dollars i  thousands   Tangible shareholders' equity, June 30, 2013 64,438$        Comprehensive gain - AFS securities, net of tax 724              Comprehensive loss - other (154)             N t income to common shareholders 4,006           Stock compensation to directors 15                Decrease/(increase) in intangible assets, net 207              Stock compensation to employees 165              Tangible shareholders' equity, September 30, 2013 69,401$        1  Non-GAAP measure.  See Appendix for reconciliation to GAAP presentation.
 $82 $72 $63   $47 $44   $170   $153   $137   $121   $115   $0   $50   $100   $150   $200   $250   $300   $350   3Q 2012 4Q 2012 1Q 2013 2Q 2013 3Q 2013   M   il   li   o   n   s   o   f   D   o   ll   ar   s   Special Mention Classif ied   Asset Quality    We continued to improve   asset quality in 3Q   – Classified loans   decreased by $6.1   million (5%)   – Special Mention loans   decreased by $3.8   million (8%)      The ALL has been   reduced to $25.3 million   from $29.3 million at year   end 2012, reflecting the    improved asset quality    ALL is 2.12% of loans held   for investment   – ALL is 6.8x the YTD   charge off rate    The remaining FV mark   on the Granite portfolio fell   by $1.7 million as a result   of accretion and   realization of expected   loss content   14   Quarterly Problem Asset Trends   $86   $79   $71   $59   $51   $81   $63   $47   $36   $33   $0   $20   $40   $60   $80   $100   $120   $140   $160   $180   3Q 2012 4Q 2012 1Q 2013 2Q 2013 3Q 2013   M   ill   io   ns    o   f D   ol   la   rs   Nonperforming loans OREO and foreclosed assets   Quarterly Asset Quality   Dollars in thousands 3Q 2012 4Q 2012 1Q 2013 2Q 2013 3Q 2013   Allowance for loan losses (ALL) 30,859$      29,314$      29,641$      25,085$      25,387$        Remaining fair value (FV) mark on Granite portfolio 10,851       7,824         6,150         2,278         549              Nonperforming loans / Total loans 7.0% 6.8% 6.3% 5.0% 4.3%   Nonperforming assets / Total assets 7.5% 6.6% 5.6% 4.7% 4.1%   Annualized net charge-offs / Average loans 2.46% 1.56% (0.08%) 1.26% (0.22%)   Allowance f r loan loss / Total loans 2.51% 2.49% 2.66% 2.11% 2.12%   Pro forma ALL and FV mark / Total loans  1 3.39% 3.16% 3.21% 2.30% 2.17%   1  Non-GAAP presentation, see Appendix.  Includes remaining fair value marks on purchased Granite loans.
 Nonperforming Assets    Non-performing assets fell   by $10.4 million (11%)   during the quarter, and   $58.2 million (41%) since   year end 2012    Nonperforming loans fell by   $7.8 million (13%) in 3Q    OREO dispositions have   been outpacing foreclosure   additions.     – OREO was further   reduced by $2.6 million   (7%) in the 3Q    As of September 30, 2013,   an additional $7.2 million of   OREO (22%) was under   contract for sale and carried   at the sales price net of   costs to sell      15   Quarterly Nonperforming Loan Composition   $22.1   $18.4 $19.2   $15.9   $12.8   $42.1   $43.8   $37.2   $31.4   $27.4   $18.5   $14.3   $11.8   $9.8   $10.3   $0   $20   $40   $60   $80   $100   3Q 2012 4Q 2012 1Q 2013 2Q 2013 3Q 2013   $ i   n   Mi   lli   on   s   Consumer   Real estate - construction   RE - Commercial   RE - 1-4 Family   Commercial and   agricultural   Nonperforming Loans and OREO   Dollars in thousands 3Q 2012 4Q 2012 1Q 2013 2Q 2013 3Q 2013   Commercial and agricultural 3,147$       2,796$       2,350$       1,654$       590$            Real estate - construction 18,506       14,297       11,762       9,783         10,266        Real estate - mortgage:   1-4 family residential 22,131       18,372       19,166       15,917       12,822         Commercial 42,133       43,798       37,217       31,380       27,425         Consumer 226            206            63              269            104              Total nonperforming loans 86,143       79,469       70,558       59,003       51,207         OREO, other foreclosed assets and disc ops assets 80,800       63,131       46,537       35,762       33,179         Total nonperforming assets 166,943$    142,600$    117,095$    94,765$      84,386$
 Portfolio and Allowance for Loan Losses    Originated loans (ASC 310-   20)   – 3Q ALL of $20.6 million    Granite PC loans (ASC 310-   20)   – Total ALL and remaining   unaccreted FV mark of   $1.6 million at 3Q    Granite PI loans (ASC 310-   30 or SOP-03-3)   – $3.7 million remaining FV   mark and ALL at 3Q 2013   – Remaining projected   accretion of $28.1 million    No net credit costs in 3Q     – $0.7 million in net   recoveries   – $0.1 million of net OREO   gains   – Recovery of provision of   $0.7 million      16   Loan Portfolio and ALL by Origination Type   -$200   $0   $200   $400   $600   $800   $1,000   $1,200   3Q 2012 4Q 2012 1Q 2013 2Q 2013 3Q 2013   Mi   llio   ns    of    Do   lla   rs   Originated loans Originated loan ALL   Granite purchased impaired (PI) loans Granite PI FV Mark and ALL   Granite purchased contractual (PC) loans Granite PC FV Mark and ALL   Quarterly Loan Portfolio, ALL and Fair Value Marks 1   3Q 2012 4Q 2012 1Q 2013 2Q 2013 3Q 2013   Originated loans 944,493      913,799      876,301      971,086      990,460        Granite purchased impaired (PI) loans 252,205      228,392      205,884      189,160      176,594        Granite purchased contractual (PC) loans 35,097       34,844       31,580       29,167       28,088             Total loans 1,231,795$ 1,177,035$ 1,113,765$ 1,189,413$ 1,195,142$   Originated loan ALL (27,282)      (23,633)      (23,432)      (20,413)      (20,552)        Granite PI loan ALL and fair value (FV) mark 1 (12,718)      (11,921)      (10,390)      (5,347)        (3,738)          Granite PC loan ALL and f ir value (FV) mark 1 (1,710)        (1,584)        (1,969)        (1,603)        (1,646)               Pro forma total ALL and FV marks 1 (41,710)$     (37,138)$     (35,791)$     (27,363)$     (25,936)$       Originated loan ALL / Originated loans (2.89%) (2.59%) (2.67%) (2.10%) (2.07%)   Granite PI ALL and FV mark / Granite PI loans 1 (5.04%) (5.22%) (5.05%) (2.83%) (2.12%)   Granite PC ALL and FV mark / Granite PC loans 1 (4.87%) (4.55%) (6.23%) (5.50%) (5.86%)   1  Non-GAAP presentation, see Appendix.  Includes remaining fair value marks on purchased Granite loans.
 17    Deferred Prosecution Agreement terminated on September   27, 2013 and related litigation dismissed    Continue improvements to   return to satisfactory   condition          Reduced NPAs by $10.4 million (11%) in 3Q   – NPAs down 49% from a year ago   – OREO down $2.6 million (7%) in 3Q   – Performing portfolio experiencing low delinquencies at 32 bps   – Clean credit quarter with allowance recovery, net loan recoveries and   net gain on sale of OREO          Complete credit cleanup          Third quarter 2013 profitability achieved   – $4.7 million core earnings in 3Q   – NIM up 49 basis points in 3Q   – Additional reductions in core NIE   – Continued reduction in credit-related costs       Return to profitability         Progress on 2013 Goals   17
 Appendix   18
 Non-GAAP Measures    Reconciliation of non-   GAAP measures to the   most directly   comparable GAAP   measure   19   Reconciliation of Non-GAAP Measures   Dollars in thousands 3Q 2012 4Q 2012 1Q 2013 2Q 2013 3Q2013   Total shareholders' equity 106,873$    98,445$      89,374$      76,046$      80,802$        Less:   Goodwill (4,205)        (4,205)        (4,205)        (4,205)        (4,205)          Core deposit and other intangibles (7,369)        (7,495)        (7,445)        (7,403)        (7,209)          Tangible shareholders' equity 95,299$      86,745$      77,724$      64,438$      69,388$        3Q 2012 4Q 2012 1Q 2013 2Q 2013 3Q2013   Originated loan ALL (27,282)$     (23,633)$     (23,432)$     (20,413)$     (20,552)$       Purchased contractual (PC) loan ALL (281)           (308)           (836)           (606)           (769)             Purchased impaired (PI) loan ALL (3,296)        (5,373)        (5,373)        (4,066)        (4,066)          Total allowance for loan losses (30,859)      (29,314)      (29,641)      (25,085)      (25,387)        Plus:   Fair value (FV) mark on PC loans (1,429)        (1,276)        (1,133)        (997)           (877)             Fair value (FV) mark on PI loans (9,422)        (6,548)        (5,017)        (1,281)        328              Pro forma total ALL and FV mark (41,710)$     (37,138)$     (35,791)$     (27,363)$     (25,936)$       Purchased impaired (PI) loan ALL (3,296)$      (5,373)$      (5,373)$      (4,066)$      (4,066)$        Fair value (FV) mark on PI loans (9,422)        (6,548)        (5,017)        (1,281)        328              Granite PI loan ALL and FV mark (12,718)$     (11,921)$     (10,390)$     (5,347)$      (3,738)$        Purchased contractual (PC) loan ALL (281)$         (308)$         (836)$         (606)$         (769)$           Fair value (FV) mark on PC loans (1,429)        (1,276)        (1,133)        (997)           (877)             Granite PC loan ALL and FV mark (1,710)$      (1,584)$      (1,969)$      (1,603)$      (1,646)$
 Non-GAAP Measures    Reconciliation of non-   GAAP measures to the   most directly   comparable GAAP   measure   20   Reconciliation of Non-GAAP Measures   Dollars in thousands 3Q 2012 4Q 2012 1Q 2013 2Q 2013 3Q2013   Net income/(loss) to common shareholders (4,712)$      (6,296)$      (4,596)$      (3,183)$      4,006$         Less taxes, credit costs and nonrecurring items:      TaxesIncome tax benefit (expense) 77              911            (1,853)        (236)           (286)                Other real estate owned expenseGain on sales of securiti s (33)             2,198         2,377         345            50                   Provision expenseOther real estate owned expense (3,602)        (6,289)        (883)           (3,332)        98                   Merger related expenseProvision for loan losses (32)             (3,172)        (110)           1,057         350              Granite and litigation accruals -                -                -                370            117              Loan collection expense (1,119)        (895)           (1,519)        (1,146)        (1,120)          Branch closure and restructuring expenses -                (96)             (587)           (15)             105              Rebranding expense -                (397)           (552)           (58)             (6)                Merger-related expense (939)           (884)           (1,509)        (1,989)        -                  Core Earnings1 936$          2,328$       40$            1,821$       4,698$         1  $53 thousand in 1Q and $262 thousand in 2Q were reclassed from prior presentations from Loan collection expense to Other expense,      reducing Core Earnings by that amount in each period.