CommunityOne Bancorp      January 30, 2015   Fourth Quarter 2014 Earnings Presentation
 Presenters         Bob Reid      President / 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   pre-credit and non-recurring (PCNR) earnings, PCNR noninterest income, PCNR noninterest expense, 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
 Quarterly Operating Highlights    6th consecutive profitable quarter    Net income of $144.6 million in 4Q   – $2.1 million pre tax net income   – $3.7 million pre tax net income   net of $1.6 million in 4Q branch   closure costs   – PCNR earnings of $2.9 million,   44% increase over 3Q    Release of $142.5 million of   valuation allowance on DTA   – $1.3 million remaining    Strong loan growth across all lines of   business   – Portfolio grew $39.7 million, or   3%, in 4Q, a 12% annualized   growth rate    Robust deposit growth in 4Q   – Deposits increased $35.5 million,   or 8% annualized    Continued positive credit trends   – NPA’s fell to 2.1% of assets    – Provision recovery of $1.3 million    Net interest income grew 6% in 4Q   – NIM of 3.49% vs. 3.38% in 3Q    $25 million private placement   4   Quarterly Performance Metrics   Dollars in thousands except per share data 4Q 2013 1Q 2014 2Q 2014 3Q 2014 4Q 2014   Net income before taxes 1,241$          1,300$           3,028$          1,497$          2,141$            Net income 2,290            1,277             2,792             1,773            144,616          Net income per share - diluted 0.11               0.06               0.13               0.08               6.62                 Return on average assets 0.45% 0.26% 0.56% 0.35% 28.10%   Return on average equity 11.0% 6.2% 12.7% 7.6% 577.0%   Net interest margin 3.52% 3.43% 3.40% 3.38% 3.49%   PCNR noninterest expense to average assets   1   3.34% 3.59% 3.47% 3.55% 3.55%   Loans held for investment 1,212,248$  1,219,785$   1,269,865$  1,318,117$  1,357,788$    Deposits 1,748,705    1,767,930     1,763,765     1,758,930    1,794,420      NPA's to total assets 3.2% 2.9% 2.7% 2.4% 2.1%   1  Non-GAAP measure.  See page 9 for reconciliation to GAAP presentation.   Quart rly Results   Results of Op rations   Dollars in thousands 4Q 2013 1Q 2014 2Q 2014 3Q 2014 4Q 2014   N t interest income 16 464$       15 479$      15 18$      15 848$       16 7 1$         Recovery f provision (provision) for loan losses (1,8 0)           684                1,685             1,679            1,323              Noninterest income 4,147            3,943             4,893             3,985            4,543              Noninterest expense 17,550          18,806           19,268          20,015          20,446            Net income before tax 1,241            1,300             3,028             1,497            2,141              Income tax benefit (expense) 1,049            (23)                 (236)               276                142,475          Net income 2,290            1,277             2,792             1,773            144,616          PCNR earnings   1   3,808$          1,642$           2,551$          2,013$          2,906$                1  Non-GAAP measure.  See Appendix for reconciliation to GAAP presentation.
 Annual Operating Highlights    Net income of $150.5 million   – $8.0 million pre tax income   – Net income per share (diluted) of   $6.88 per share in 2014 versus   net loss per share (diluted) of   $(0.07) in 2013   – PCNR earnings of $9.1 million    Net interest margin stable at 3.43%    Net charge-off ratio of 0.08% of   average loans in 2014, improved   from 0.26% in 2013   – Recovery of provision for loan   losses of $5.4 million    Noninterest expense fell $5.9 million,   or 7%, in 2014 from $84.5 million in   2013    Loans held for investment grew 12%,   or $145.5 million, in 2014   – New commercial LPOs in Raleigh   and Winston-Salem, new   origination team in Greensboro   and expansion in Charlotte   – New non-branch mortgage   channel in Raleigh and Charlotte    Deposits grew $45.7 million, or 3%   – Noninterest bearing deposits   grew $33.3 million, or 11%   5   Annual Performance Metrics   Dollars in thousands except per share data 2012 2013 2014   Net income (loss) before taxes (41,017)$       (157)$            7,966$            Net income (loss) (40,005)         (1,483)           150,458          Net income (loss) per share - diluted (1.87)              (0.07)              6.88                 Return on average assets (1.74%) (0.07%) 7.50%   Return on average equity (34.9%) (1.7%) 165.1%   Net interest margin 2.95% 3.44% 3.43%   PCNR noninterest expense to average assets   1   3.24% 3.50% 3.54%   Loans held for investment 1,177,035$   1,212,248$  1,357,788$    Deposits 1,906,988     1,748,705     1,794,420      NPA's to total assets 6.6% 3.2% 2.1%   1  Non-GAAP measure.  See Appendix for reconciliation to GAAP presentation.   An ual Results   Results of Op rations   Dollars in thousands 2012 2013 2014   N t interest income 61,2 0$        64,433$        63,766$          Recovery f provision (provision) for loan losses (14,049)         (5 3)               5,371              Noninterest income 21,958           20,414          17,364            Noninterest expense 110,206        84,481          78,535            Net income (loss) before tax (41,017)         (157)               7,966              Income tax benefit (expense) & loss on discontinued operations 1,012             (1,326)           142,492          Net income (loss) (40,005)         (1,483)           150,458          PCNR earnings   1   4,904$           10,366$        9,112$                1  Non-GAAP measure.  See Appendix for reconciliation to GAAP presentation.
 6    Loans grew 12% in 2014, ahead of plan   – Loans held for investment grew $145.5 million   – Excluding purchased residential loans, organic loan growth was 15%   – Loans to deposits ratio increased to 76%, also ahead of plan   – Growth across all business lines, especially commercial and auto finance    Grow loans          Deposits increased $45.7 million, or 3%   – Noninterest-bearing demand deposits increased $33.3 million, or 11%   – Low cost core, consisting of non-CD deposits grew $39.7 million, or 3%   – Deposit campaigns on CD’s and money market were successful in 4Q,   while decreasing the cost of all deposits by 6 bps in 2014       Grow core deposits          Credit resolution activities continued to improve asset quality in 2014   – Nonperforming assets fell $17.8 million, or 28%, to $45.8 million   – OREO fell 28% to $20.4 million   – Charge-offs to average loans fell to 0.08% in 2014, declining from 0.26% in   2013   – Classified asset ratio of 40% exceeded 45% goal             Resolve remaining credit   issues          Noninterest expenses declined $5.9 million in 2014, or 7%   – PCNR noninterest expenses fell $0.7 million, or 1%, while increasing   origination footprint into Raleigh and Winston-Salem and adding C&I and   CRE bankers in Charlotte and Greensboro   – OREO and collection expenses lower by $5.1 million as asset quality   improved   – Treasury Management investments completed and driving 11% growth in   noninterest-bearing deposits   – Mobile deposits investments on track    Invest in new businesses   while maintaining focus on   expenses         Recap of 2014 Goals   6
 Net Interest Income    Net interest income grew 6%   during the quarter    Earning asset mix continued to   improve   – Average earning assets grew   $38.2 million during 4Q 2014   on strong loan growth offset   by securities sales   – Average loans increased   $51.2 million    Net interest margin increased to   3.49%, an 11 bp increase from   3Q   – $0.5 million increase in   interest recoveries in 4Q   drove increase in loan yield of   12 bps    Earning asset yield increased 11   bps in 4Q on the improved loan   yield   – Securities yield was flat at   2.58%   – Non cash accretion on PI   loans was $0.7 million in 4Q   2014 vs. $0.8 million in 3Q   2014    4Q cost of interest bearing   deposits fell 1 bp to 47 bps   7   Quarterly Loan and Securities Yields Quarterly Margin and Cost of Deposits   0.0%   1.0%   2.0%   3.0%   4.0%   5.0%   6.0%   4Q 2013 1Q 2014 2Q 2014 3Q 2014 4Q 2014   Yield on Loans Yield on Investment Securities   0.0%   0.5%   1.0%   1.5%   2.0%   2.5%   3.0%   3.5%   4.0%   4Q 2013 1Q 2014 2Q 2014 3Q 2014 4Q 2014   Cost of Interest Bearing Deposits N t Interest Margin   Quarterly Results   Average Balances, Yields and Net Interest Margin   Dollars in thousands 4Q 2013 1Q 2014 2Q 2014 3Q 2014 4Q 2014   Average loans (includes loans held for sale) 1,199,309$  1,209,714$   1,238,847$  1,289,718$  1,340,874$       Average yield 4.97% 4.73% 4.66% 4.58% 4.70%   Average loans and securities 1,785,541    1,770,270     1,788,879     1,814,160    1,839,709      Average earning assets 1,859,379    1,830,822     1,855,092     1,862,479    1,900,647         Average yield 4.05% 3.98% 3.95% 3.92% 4.03%   Average interest bearing liabilities 1,611,915    1,585,272     1,581,777     1,577,399    1,600,583         Average rate 0.61% 0.63% 0.65% 0.64% 0.63%      Average cost of interest bearing deposits 0.50% 0.48% 0.48% 0.48% 0.47%   Net interest margin 3.52% 3.43% 3.40% 3.38% 3.49%   Net interest rate spread 3.44% 3.35% 3.31% 3.28% 3.39%   Net interest income 16,464$        15,479$        15,718$        15,848$        16,721$
 Noninterest Income    Excluding securities gains,   PCNR noninterest income   increased $0.4 million during   4Q   – Securities gains of $0.2   million in the quarter    Mortgage income increased   $35 thousand, or 17%, in 4Q   on 14% increase in volume of   loans originated for sale to   Fannie Mae   – Total origination volume of   $39.5 million, down only   2% from 3Q    Service charge income    stable in 4Q 2014 at $1.6   million    Cardholder and merchant   services income $0.1 million   higher on enhanced revenue   sharing with third party   vendor    Wealth business fee income   rose $50 thousand, or 15%,   on increased annuity sales   and investment management   fees during the quarter   8   Quarterly Results   Noninterest Income   Dollars in thousands 4Q 2013 1Q 2014 2Q 2014 3Q 2014 4Q 2014   Service charges on deposit accounts 1,798$       1,564$        1,619$        1,583$       1,585$         Mortgage loan income 235            174            261            205            241              Cardholder and merchant services income 1,127         1,113          1,209         1,183         1,298           Trust and investment services 341            358            399            344            394              Bank-owned life insurance 267            252            278            273            350              Other service charges, commissions and fees 356            352            332            290            366              Securities gains, net -                -                 720            34              220              Other income 23              130            75              73              89                Total noninterest income 4,147$       3,943$        4,893$        3,985$       4,543$         Less:       Securities gains, net -                -                 720            34              220              PCNR noninterest income 1 4,147$       3,943$        4,173$        3,951$       4,323$              1  Non-GAAP measure.  Reconciliation included in this table.
 Noninterest Expense    4Q noninterest expense (NIE)   includes $1.6 million charge   related to branches that will   close in 1Q 2015    NIE rose by $0.4 million, or 2%,   from 3Q 2014   – OREO expenses were $572   thousand in the quarter as a   result of year-end OREO   holding expenses    PCNR NIE rose $0.4 million   (2%) from 3Q on year-end   incentive and benefit expense   accruals and deposit   promotional advertising    Average FTE was unchanged   from Q3 to Q4   – 5% (28) FTE reduction from a   year ago from 2014 branch   closures and other ongoing   efficiency initiatives, offset by   loan origination personnel   hires    3Q personnel expenses include   $2.1 million in CEO severance   costs, and 4Q includes $0.2   million in branch personnel   severance costs               9   Quarterly Results   Noninterest Expense   Dollars in thousands 4Q 2013 1Q 2014 2Q 2014 3Q 2014 4Q 2014   Personnel expense 9,512$          10,393$        9,956$          12,616$        10,717$          Net occupancy expense 1,331            1,553             1,512             1,521            1,526              Furniture, equipment and data processing expense 2,126            2,003             2,047             2,208            2,078              Professional fees 625                633                467                699                671                  Stationery, printing and supplies 135                162                173                149                162                  Advertising and marketing 141                153                147                142                274                  Other real estate owned expense (recovery) 21                  261                954                (29)                 572                  Credit/debit card expense 618                595                604                520                568                  FDIC insurance 663                639                595                412                422                  Loan collection expense 548                657                551                198                170                  Core deposit intangible amortization 351                352                352                352                351                  Other expense 1,479            1,405             1,910             1,227            2,935              Total noninterest expense 17,550$        18,806$        19,268$        20,015$        20,446$          Less:   Other real estate owned expense (recovery) 21$                261$              954$              (29)$              572$               US Treasury sale expenses -                     -                      409                -                     -                       Loan collection expense 548                657                551                198                170                  Branch closure/restructuring expense (recovery) 178                183                7                     -                     1,566              Mortgage and litigation accrual (recovery) -                     (75)                 7                     -                     -                       CEO Severance expense -                     -                      -                      2,060            -                       Rebranding expense -                     -                      -                      -                     -                       PCNR noninterest expense   1   16,803$        17,780$        17,340$        17,786$        18,138$          Average Quarterly FTE Employees 596                576                558                568                568                        1  Non-GAAP measure. Reconciliation included in this table.
 3% 5% 4% 3% 4%   29% 27% 27% 25% 22%   60% 60% 62% 64%   60%   8% 7% 7% 7%   6%   1% 0% 0% 0%   7%   0%   10%   20%   30%   40%   50%   60%   70%   80%   90%   100%   4Q 2013 1Q 2014 2Q 2014 3Q 2014 4Q 2014   Deferred tax asset, net   Other assets   Loans   Investment securities   Cash and bank balances   Balance Sheet    Total assets increased $199.7   million driven by increases in   cash, loans and other assets    – Cash increased $35.8   million in 4Q, including   $25.0 million private   placement of common stock   in late December   – Loans held for investment   increased $39.7 million   – Deferred tax assets   valuation allowance   reversal of $142.5 million    Investment portfolio decreased   by $15.5 million on sales,   maturities, prepayments and   amortization   – Portfolio positioned to fund   loan growth   – Portfolio weighted toward   liquid Agency MBS      10   Quarterly Balance Sheet Composition   Quarterly Balance Sheet   Dollars in thousands 4Q 2013 1Q 2014 2Q 2014 3Q 2014 4Q 2014   Cash and interest bearing bank balances 67,430$        104,951$      70,477$        60,080$        95,882$          Investment securities 566,409        551,528        546,165        507,980        492,501          Loans and loans held for sale, net 1,187,299    1,195,707     1,247,655     1,298,860    1,340,239      Other real estate owned 28,395          24,624           21,871          20,289          20,411            Intangible assets 11,119          10,802           10,501          10,191          9,886              Deferred tax asset, net 10,215          8,153             5,188             5,564            146,432          Other assets 114,165        112,716        111,656        112,829        110,163             Total assets 1,985,032$  2,008,481$   2,013,513$  2,015,793$  2,215,514$    Deposits 1,748,705$  1,767,930$   1,763,765$  1,758,930$  1,794,420$    Borrowings 142,165        140,406        143,594        147,484        139,350          Other liabilities 13,801          14,814           13,457          14,889          14,828            Equity 80,361          85,331           92,697          94,490          266,916             Total liabilities and equity 1,985,032$  2,008,481$   2,013,513$  2,015,793$  2,215,514$
 Loan Portfolio    Total loans held for investment   grew $39.7 million in 4Q 2014;    annualized growth rate of 12%   – All lines of business grew   loans during the quarter    Organic loans (excluding   purchased residential loans)   grew $45.0 million; 16%   annualized growth rate    Total pass rated loans grew by   $45.7 million; annualized   growth rate of 15%    Non-pass rated loans fell by   $6.0 million, or 6%    Loan portfolio composition   balanced between consumer   and commercial exposure   11   Quarterly Loan Portfolio Mix   Loan Portfolio Growth Rates By Category   Dollars in thousands 4Q 2013 3Q 2014 4Q 2014 $ % Annualized   Commercial and Commercial Real Estate $374,938 $440,942 $467,432 26,489       6% 24%   RE Construction 50,137       65,298        68,995        3,697         6% 23%   Consumer/HELOC 186,899      207,038      217,258      10,220       5% 20%   1-4 Family Residential 244,803      281,089      291,712      10,623       4% 15%   Pass Rated Organic Loans 856,778      994,368      1,045,397   51,029       5% 21%   Purchased Resi Mortgage Loans 214,052      214,598      209,277      (5,320)        -2% -10%   Non Pass Rated Organic Loans 141,418      109,152      103,113      (6,038)        (6%) (22%)   Total Loans $1,212,248 $1,318,117 $1,357,788 39,671       3% 12%   Total Organic Loans 998,196      1,103,519   1,148,511   44,991       4% 16%   Total Pass Rated Loans 1,070,830   1,208,965   1,254,675   45,709       4% 15%   4Q Growth   1,212,248 1,219,785   1,269,865   1,318,117 1,357,788   -5.00%   0.00%   5.00%   10.00%   15.00%   20.00%   25.00%   $   $300,000   $600,000   $900,000   $1,200,000   $1,500,000   4Q 2013 1Q 2014 2Q 2014 3Q 2014 4Q 2014   Commercial RE Construction Consumer/HELOC   1-4 Family Residential Purchased Residential Non pass loans   Total Loans Organic Growth Rate Annualized
 17% 18% 18% 18% 18%   20% 20% 19% 20% 20%   5% 5% 5% 5% 5%   26% 25% 24% 24% 24%   19% 18% 17% 17% 16%   2% 1% 3% 2% 2%   13% 13% 14% 14% 15%   0%   20%   40%   60%   80%   100%   4Q 2013 1Q 2014 2Q 2014 3Q 2014 4Q 2014   Noninterest-bearing demand Interest-bearing demand Savings   Money market Time deposits < $100,000 Brokered   Time deposits > $100,000   Deposits    Deposits increased by $45.7   million, or 3%, in 2014   – Continued focus in 2015 on   deposit growth to support loan   growth     Deposit growth was very strong   in 4Q 2014, with deposits up   $35.5 million, or 2%, in the   quarter   – CD and MMDA promotions in   4Q    Noninterest-bearing deposits   increased $5.8 million, or 2%, in   4Q 2014 and $33.3 million, or   11%, in 2014   – Driven by commercial   relationship acquisition and   improved treasury   management product set   – Includes closure impact of 4   branches in 1Q 2014    Core deposits were stable at   83% of deposits     Cost of interest bearing deposits   dropped to 47 bps, and the cost   of all deposits was flat at 39 bps   12   Quarterly Deposit Mix   Co   re      N   o   n      Co   re      Quarterly Deposits   Dollars in thousands 4Q 2013 1Q 2014 2Q 2014 3Q 2014 4Q 2014   Noninterest-bearing demand 290,461$     315,515$      321,829$      317,981$     323,776$       Interest-bearing demand 347,791 346,344 333,260 349,517 358,162   Savings 80,507 85,038 85,451 85,519 86,686   Money market 447,672 448,037 431,803 423,967 437,484   Brokered 29,218 25,468 47,783 37,673 38,378   Time deposits < $100,000 323,661 310,786 301,795 294,774 285,989   Time deposits > $100,000 229,395 236,742 241,844 249,499 263,945        Total deposits 1,748,705$  ,767,930$   1,763,765$  1,758,930$  1,794,420$    Total Time Deposits 582,274$     572,996$      591,422$      581,946$     588,312$       Low Cost Core Deposits 1,166,431    1,194,934     1,172,343     1,176,984    1,206,108      Core Deposits 1,490,092    ,505,720     1,474,138     1,471,758    1,492,097
 Deferred Tax Asset and Valuation Allowance    Reversal of $142.5 million of   valuation allowance on   deferred tax assets in 4Q   – More likely than not that   DTA will be realized    Determination of likelihood of   realization of DTA based on    – Track record of sustained   profitability since mid 2013   – Reasonable future forecasts   of profitability and tax   strategies to utilize the DTA   – Improved credit quality of   loan portfolio    Consolidated net deferred tax   asset of $147.7 million at 4Q   2014   – $146.4 million currently   reflected on balance sheet   and in equity   – $1.3 million remaining DTA   valuation allowance    13   Deferred Tax Asset Rollforward   Dollars in Millions DTA   DTA   Valuation   Allowance   Unreserved   Net DTA   Beginning Balance, December 31, 2013   150.4$           145.2$          5.2$                 Reversal of deferred tax asset valuation allowance - 4Q -                      (142.5)           142.5              Net income, tax strategies and other adjustments (2.7)                (1.4)                (1.3)                  Ending Balance, December 31, 2014 147.7$           1.3$               146.4$
 Capital and Liquidity    TCE / TA ratio of 11.65%    Bancorp & Bank capital   ratios increased by earnings,   $142.5 million DTA valuation   allowance reversal and $25   million private placement of   common stock   – Holdco leverage ratio of   9.78% and Bank leverage   ratio of 9.94%    Loans to deposits ratio rose   to 76% in 4Q, exceeding our   end of year 2014 goal     Equity impacted by   – $8.0 million pre-tax   earnings   – $142.5 million DTA   valuation allowance   reversal   – $11.5 million, net of tax,   unrealized gain in AFS   portfolio   – $25.0 million private   placement   14   Tangible Shareholders' Equity Rollforward  1   Dollars in thousands YTD 2014   Tangible shareholders' equity (Non-GAAP), beginning 69,242$          Comprehensive income (loss) - AFS securities, net of tax 11,459            Comprehensive income (loss) - Other, net of tax (1,329)             Net income to common shareholders 150,458          Stock compensation and warrants 996                  Common stock private placement, net of expenses 24,971            Decrease in intangible assets, net 1,233               Tangible shareholders' equity (Non-GAAP), ending   257,030$               1  Non-GAAP measure.  See Appendix for reconciliation to GAAP presentation.   Quarterly Capital and Liquidity Ratios   4Q 2013 1Q 2014 2Q 2014 3Q 2014 4Q 2014   Well   Capitalized########## ##########   CommunityOne Bancorp   Leverage 5.96% 6.20% 6.35% 6.48% 9.78% 5.00%   Tangible common equity to tangible assets 3.51% 3.73% 4.10% 4.20% 11.65%   Loans to deposits 69% 69% 72% 75% 76%   Cash and investment securities to deposits 36% 37% 35% 32% 33%   mu ityO e Bank   Leverag 7.49% 7.74% 7.86% 7.97% 9.94% 5.00%   Tier 1 risk based capit l 11.94% 12.09% 12.02% 11.78% 13.63% 6.00%   Total risk based capital 13.20% 13.38% 13.28% 13.04% 14.88% 10.00%
 $35 $34 $32   $28   $25   $28   $25   $22   $20   $20   $0   $10   $20   $30   $40   $50   $60   $70   4Q 2013 1Q 2014 2Q 2014 3Q 2014 4Q 2014   M   ill   io   ns    o   f   D   ol   la   rs   Nonperforming loans OREO and foreclosed assets   $46 $43 $41 $36 $40   $96   $91   $80   $73 $63   $0   $25   $50   $75   $100   $125   $150   $175   $200   4Q 2013 1  2014 2  2014 3  2014 4  2014   M   ill   io   ns    o   f   D   ol   la   rs   Special Me tion Loa s Classified Loans   Asset Quality   15   Quarterly Asset Quality Trends   27% decline   28% decline   Quarterly Asset Quality   Dollars in thousands 4Q 2013 1Q 2014 2Q 2014 3Q 2014 4Q 2014   Allowance for loan losses (ALL) 26,785$        26,039$        23,975$        21,525$        20,345$          Nonperforming loans to total loans 2.9% 2.8% 2.5% 2.2% 1.9%   Nonperforming assets to total assets 3.2% 2.9% 2.7% 2.4% 2.1%   Annualized net charge-offs (recoveries) to avg. loans 0.14% 0.02% 0.12% 0.24% (0.04%)   Allowance for loan loss to total loans 2.21% 2.13% 1.89% 1.63% 1.50%    Continued asset quality   improvement in 4Q   – Classified loans decreased   by $9.8 million (13%) in   2014   – Nonperforming loans   reduced to 1.9% of total   loans, from 2.9% a year   ago   – NPA’s reduced to 2.1% of   assets    The ALL has been reduced to   $20.3 million from $21.5 million   at end of 3Q, reflecting the    improved asset quality and   lower annualized charge-off   rates    ALL is 1.50% of loans held for   investment    $142 thousand recovery of net   charge-offs in 4Q 2014   – 2014 net charge-offs of 8   bps down from 26 bps in   2013
 $11.6   $10.2 $9.1 $8.8 $8.6   $18.4 $19.9   $19.4   $16.4   $13.5   $4.7 $3.4   $2.8   $2.9   $2.3   $0   $20   $40   4Q 2013 1Q 2014 2Q 2014 3Q 2014 4Q 2014   $ i   n   Mi   lli   on   s   Consumer   Real estate - construction   RE - Commercial   RE - 1-4 Family   Commercial and   agricultural   Nonperforming Assets   16   Quarterly Nonperforming Loan Composition   28% decline   Nonperforming Loans and OREO   Dollars in thousands 4Q 2013 1Q 2014 2Q 2014 3Q 2014 4Q 2014   Commercial and agricultural 516$             450$              400$              351$             608$               Real estate - construction 4,677$          3,437$           2,773$          2,878$          2,307$            Real estate - mortgage:       1-4 family residential 11,580$        10,151$        9,083$          8,777$          8,637$               Commercial 18,380$        19,888$        19,398$        16,383$        13,457$          Consumer 12$                32$                31$                94$                356$                   Total nonperforming loans 35,165          33,958           31,685          28,483          25,365            OREO and other foreclosed assets 28,395$        24,623$        21,871$        20,289$        20,411$              Total nonperforming assets 63,560$        58,581$        53,556$        48,772$        45,776$          NPL / Total Loans Held For Investment 2.9% 2.8% 2.5% 2.2% 1.9%    Non-performing assets fell by   $3.0 million (6%) during the   quarter, and $17.8 million (28%)   since 4Q 2013    Nonperforming loans fell by $3.1   million (11%) in 4Q, and by $9.8   million (28%) since 4Q 2013     OREO dispositions were on par   with foreclosure additions in 4Q   2014   – OREO essentially flat in 4Q   and decreased by $8.0   million (28%) since 4Q 2013    As of year-end 2014, an   additional $4.2 million of OREO   (20%) was under contract for   sale
 Portfolio and Allowance for Loan Losses   17   Quarterly Loan Portfolio and ALL   4Q 2013 1Q 2014 2Q 2014 3Q 2014 4Q 2014   Originated loans 1,023,984$ 1,043,263$  1,101,736$ 1,162,793$ 1,211,794$   Granite purchased impaired (PI) loans 161,651      149,033      141,924      130,665      122,842        Granite purchased contractual (PC) loans 28,449       29,450        27,970        26,927       25,948         Total loans 1,214,084$ 1,221,746$  1,271,630$ 1,320,385$ 1,360,584$   Originated loan ALL (20,603)$     (20,286)$     (19,417)$     (17,184)$     (16,729)$       Granite PI loan ALL (5,650)        (5,237)         (4,123)        (3,923)        (3,237)          Granite PC loan ALL (532)           (516)           (435)           (418)           (379)             Total ALL (26,785)$     (26,039)$     (23,975)$     (21,525)$     (20,345)$       Originated loan ALL / Originated loans (2.01%) (1.94%) (1.76%) (1.48%) (1.38%)   Granite PI ALL  / Granite PI loans (3.50%) (3.51%) (2.91%) (3.00%) (2.64%)   Granite PC ALL / Granite PC loans (1.87%) (1.75%) (1.56%) (1.55%) (1.46%)   T ota l ALL 2.21% 2.13% 1.89% 1.63% 1.50%    Originated loans of $1.21 billion   with ALL of $16.7 million at 4Q   – 1.38% ALL    Granite PC loans of $25.9 million   with ALL of $0.4 million at 4Q   – 1.46% ALL    No provision related credit costs in   4Q on originated or PC loan   portfolios   – $0.6 million in recovery of   provision in originated loans   – $0.7 million recovery of   provision resulting from higher   forecasted cash flows in   purchased impaired loans    Granite PI loans   – $122.8 million remaining   carrying value   – $3.2 million ALL (2.64%) at 4Q   2014
 18    Driven by loan growth   – Total loan growth 10-12%   – Efficient balance sheet fully invested   – Expansion of non branch mortgage channel   – Loans to deposits ratio in mid 80% range by year-end       Earning asset growth          Driven by core deposit growth   – Commercial deposit growth based on treasury management products   – Low cost core growth based on customer relationship expansion   – Enhanced focus and disciplined deposit campaigns   – Investments in Online and Mobile platform             Continued deposit growth          Pursue attractive M&A opportunities   – EPS accretion   – Minimal dilution             Explore M&A opportunities          Capitalize on 2014 efforts   – NIE / average assets ratio of 3.1% for 2015   – Closing 6 branches in 1Q 2015   – Monetize vendor contract re-negotiations    Monetize expense efforts         2015 Goals   18    Driven by mortgage channel   – 10-12% growth   – Expansion of non-branch mortgage channel   – SBA business expansion   – Wealth platform   – Service charge income initiatives             Enhanced fee income
 Appendix   19
 Non-GAAP Measures - Quarter    Reconciliation of non-   GAAP measures to the   most directly comparable   GAAP measure   20   Reconciliation of Non-GAAP Measures   Dollars in thousands 4Q 2013 1Q 2014 2Q 2014 3Q 2014 4Q 2014   Net income 2,290$       1,277$        2,792$        1,773$       144,616$      Less taxes, credit costs and nonrecurring items:   Income tax benefit (expense) 1,049         (23)             (236)           276            142,475        Gain on sales of securities -                -                 720            34              220              Other real estate owned recovery (expense) (21)             (261)           (954)           29              (572)             Recovery of (Provision for) loan losses (1,820)        684            1,685         1,679         1,323           Mortgage and litigation recovery (accrual) -                75              (7)               -                -                  Loan collection expense (548)           (657)           (551)           (198)           (170)             (178)           (183)           (7)               -                (1,566)          US Treasury sale expenses -                -                 (409)           -                -                  Rebranding expense -                -                 -                -                -                  CEO severance expense -                -                 -                (2,060)        -                  PCNR earnings (Non-GAAP) 3,808$       1,642$        2,551$        2,013$       2,906$         Branch closure/restructuring expense (recovery)   Reconciliation of Non-GAAP Measures   Dollars in thousands 4Q 2013 1Q 2014 2Q 2014 3Q 2014 4Q 2014   Book Value (Shareholders' equity) 80,361$      85,331$      92,697$      94,490$      266,916$      Less:       Goodwill (4,205)        (4,205)         (4,205)        (4,205)        (4,205)              Core deposit and other intangibles (6,914)        (6,597)         (6,296)        (5,986)        (5,681)          69,242$      74,529$      82,196$      84,299$      257,030$      Tangible book value (Tangible       shareholders' equity) (Non-GAAP)
 Non-GAAP Measures - Annual    Reconciliation of non-   GAAP measures to the   most directly comparable   GAAP measure   21   Reconciliation of Non-GAAP Measures - Full Year   Dollars in thousands 2012 2013 2014   Net income (loss) (40,005)$     (1,483)$       150,458$      Less taxes, credit costs and nonrecurring items:   Income tax benefit (expense) 1,039          (1,326)        142,492        Gain on sales of securities 4,121          2,772         974              Other real estate owned recovery (expense) (27,883)       (4,138)        (1,758)          Recovery of (Provision for) loan losses (14,049)       (523)           5,371           Mortgage and litigation recovery (accrual) (1,100)         487            68                Loan collection expense (3,274)         (4,333)        (1,576)          Branch closure/restructuring expense (recovery) (96)             (675)           (1,756)          US Treasury sale expenses -                 -                (409)             Rebranding expense (397)           (616)           -                  CEO severance expense -                 -                (2,060)            Merger-related expense (3,241)         (3,498)        -                  Loss from discontinued operations, net of tax (27)             -                -                  PCNR earnings (Non-GAAP) 4,902$        10,367$      9,112$         Rec nc liation of Non-GAAP Measures - Full Year   Dollars in thousands 2012 2013 2014   Book Value (Shareholders' equity) 98 445 8 1 266 9 6   Less:       Goodwill (4,205)         (4,205)        (4,205)              Core deposit and other intangibles (7,495)         (6,914)        (5,681)          86,745$      69,242$      257,030$      Tangible book value (Tangible       shareholders' equity) (Non-GAAP)
 Non-GAAP Measures – Annual Noninterest Income    Excluding securities gains,   PCNR noninterest income   increased $0.4 million during   4Q   – Securities gains of $0.2   million in the quarter    Mortgage income increased   $35 thousand, or 17%, in 4Q   on 14% increase in volume of   loans originated for sale to   Fannie Mae   – Total origination volume of   $39.5 million, down only   2% from 3Q    Service charge income    stable in 4Q 2014 at $1.6   million    Cardholder and merchant   services income $0.1 million   higher on enhanced revenue   sharing with third party   vendor    Wealth business fee income   rose $50 thousand, or 15%,   on increased annuity sales   and investment management   fees during the quarter   22   Annual Results   Noninterest Income   Dollars in thousands 2012 2013 2014   Service charges on deposit accounts 7,080$        6,714$        6,351$         Mortgage loan income 2,065          2,319         881              Cardholder and merchant services income 4,579          4,531         4,803           Trust and investment services 1,036          1,305         1,495           Bank-owned life insurance 1,195          1,073         1,153           Other service charges, commissions and fees 1,128          1,315         1,340           Securities gains, net 4,121          2,772         974              Other income 754            385            367              Total noninterest income 21,958$      20,414$      17,364$        Less:       Securities gains, net 4,121          2,772         974              PCNR noninterest income 1 17,837$      17,642$      16,390$             1  Non-GAAP measure.  Reconciliation included in this table.
 Non-GAAP Measures – Annual Noninterest Expense    Reconciliation of non-GAAP   measures to the most directly   comparable GAAP measure               23   Annual Results   PCNR Noninterest Expense   Dollars in thousands 2012 2013 2014   Personnel expense 40,051$        40,661$        43,682$          Net occupancy expense 6,461             6,391             6,112              Furniture, equipment and data processing expense 8,721             8,638             8,336              Professional fees 5,266             3,100             2,470              Stationery, printing and supplies 637                644                646                  Advertising and marketing 957                1,135             716                  Other real estate owned expense 27,883           4,138             1,758              Credit/debit card expense 1,717             2,143             2,287              FDIC insurance 3,499             2,643             2,068              Loan collection expense 3,274             4,333             1,576              Merger-related expense 3,241             3,498             -                       Core deposit intangible amortization 1,407             1,407             1,407              Other expense 7,092             5,750             7,477              Total noninterest expense 110,206$      84,481$        78,535$          Less:   Other real estate owned expense 27,883$        4,138$          1,758$            Merger-related expense 3,241             3,498             -                       US Treasury sale expenses -                      -                      409                  Loan collection expense 3,274             4,333             1,576              Branch closure/restructuring expense (recovery) 96                   675                1,756              Mortgage and litigation accrual (recovery) 1,100             (487)               (68)                   CEO Severance expense -                      -                      2,060              Rebranding expense 397                616                -                       PCNR noninterest expense   1   74,215$        71,708$        71,044$