CommunityOne Bancorp   Fourth Quarter 2015 Earnings Presentation   January 29, 2016
 Presenters         Bob Reid      President / Chief Executive Officer         David Nielsen      Chief Financial Officer         Neil Machovec      Chief Credit Officer           2
 Forward Looking Statements & Other Information   3              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, 2014 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. 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 within the appendix to this presentation.
 Quarterly Operating Highlights    Core net income of $2.7 million   ($0.11 per share) up 16% over 4Q   2014   – Net income of $0.4 million, $0.01   per share   – Non-core expenses:  $2.0 million   from pending Capital Bank   Financial merger and $1.1 million   from accelerated vesting of   restricted stock awards to certain   executive officers    6% annualized loan growth   – Portfolio grew $21.3 million   – Loan to deposit ratio of 79%    Annualized deposit growth of 11%   – Noninterest-bearing deposits   grew at 29% annualized rate    Continued positive credit trends   – NPA’s fell to 1.5% of assets     Net interest income grew 4% over   4Q 2014 on loan growth and asset   mix   – 3.29% NIM, down 20 bps from   4Q 2014 on loan yield   compression    Core NII grew 15% from 4Q 2014 on   82% mortgage and SBA growth and   13% total service charges growth    NIE fell 9% from 4Q 2014; 3.03%   PCNR NIE to average assets in 4Q    4   Quarterly Performance Metrics   Dollars in thousands except per share data 4Q 2014 1Q 2015 2Q 2015 3Q 2015 4Q 2015   Net income per share - diluted 6.62$            0.10$             0.10$             0.06$            0.01$              Core net income per share - diluted   1   0.11$            0.10$             0.10$             0.12$            0.11$              Return on average assets 28.10% 0.46% 0.45% 0.26% 0.06%   Core return on average assets   1   0.45% 0.46% 0.45% 0.50% 0.45%   Return on average equity 577.0% 3.8% 3.7% 2.2% 0.5%   Net interest margin    3.49% 3.54% 3.43% 3.37% 3.29%   PCNR noninterest expense to average assets   1   3.55% 3.15% 3.03% 2.92% 3.03%   Loans held for investment 1,357,788$  1,395,911$   1,445,853$  1,522,455$  1,543,795$    Deposits 1,794,420    1,807,472     1,855,638     1,896,879    1,947,537      NPA's to total assets 2.1% 1.9% 1.7% 1.6% 1.5%   Loans to deposits 76% 77% 78% 80% 79%   Tier 1 Leverage 9.78% 8.47% 8.50% 8.43% 8.19%   Tier 1 Common Equity N/A 11.86% 11.85% 11.64% 11.20%   Tangible book value to tangible assets   1   11.7% 11.8% 11.4% 11.3% 11.0%   1  Non-GAAP measure.  See appendix for reconciliation to GAAP presentation.   Quarterly R sults   Results of Operations   Dollars in thousands 4Q 2014 1Q 2015 2Q 2015 3Q 2015 4Q 2015   Net interest income 16,721$        16,774$        16,827$        17,310$        17,464$          covery of provision 1,323            1,137             788                64                  992                  Noninterest income 4,543            4,034             4,153             5,000            4,983              Noninterest expense 20,446          18,008           17,827          17,427          22,226            Net income b fore tax 2,141            ,937             ,941             4, 47            1,212              Income tax benefit (exp se) 142 475      (1,4 8)         (1,418)         (3, 30)         (857)              Net income 144,616        2,519             2,523             1,517            356                  Core net income   1   2,336            2,519             2,523             2,922            2,719                  1  Non-GAAP measure.  See appendix for reconciliation to GAAP presentation.
 Annual Operating Highlights    Core net income of $10.7 million   ($0.44 per share) up 43% over 2014   – Net income of $6.9 million, $0.29   per share   – Net income before tax of $14.0   million, up 76% over 2014   – Non-core items detailed in   appendix    14% loan growth in 2015   – Portfolio grew $186.0 million   – Loan to deposit ratio grew to   79%    9% deposit growth in 2015   – Noninterest-bearing deposits   grew 19%     Continued positive credit trends   – NPA’s fell to 1.5% of assets     Net interest income grew 7%   – 3.40% NIM, down 3 bps from   2014    Core NII grew $1.5 million, or 9% on   strong mortgage, SBA and service   charge growth    NIE fell $3.0 million, or 4% from   2014   – PCNR NIE to average assets fell   to 3.03% in 2015 from 3.54% in   2014   – FTE reduced by 3%    5   Annual Results   Results of Operations   Dollars in thousands 2013 2014 2015   Net interest income 64,433$        63,766$        68,375$          Recovery of provision (provision) for loan losses (523)               5,371             2,981              Noninterest income 20,414           17,364          18,170            Noninterest expense 84,481           78,535          75,488            Net income (loss) before tax (157)               7,966             14,038            Income tax benefit (expense) (1,326)            142,492        (7,124)             Net income (loss) (1,483)            150,458        6,914              Core net income   1   920$              7,469$          10,682$              1  Non-GAAP measure.  See Appendix for reconciliation to GAAP presentation.   Annual Performance Metrics   Dollars in thousands except per share data 2013 2014 2015   Net income per share - diluted (0.07)$            6.89$             0.29$              Core net income per share - diluted   1   0.04 0.34 0.44   turn on average assets (0.07%) 7.50% 0.30%   Core return on average assets   1   0.04% 0.37% 0.47%   Return on average equity (1.7%) 165.1% 2.5%   et i t r t margin 3. 4% 3.43% 3.40%   PCNR noninterest expense to average assets   1   3.50% 3. 4% 3.03%   Loans held for investment 1,212,248$   1,357,788$  1,543,795$    D posits 1,748 705 1,794 20 1,947 537   NPA's to total assets 3.2% 2.1% 1.5%   Loans to deposits 69% 76% 79%   Tier 1 Leverage 5.96% 9.78% 8.19%   Tier 1 Common Equity N/A   N/A   11.20%   Tangible book value to tangible assets   1   3.5% 11.7% 11.0%   1  Non-GAAP measure.  See Appendix for reconciliation to GAAP presentation.
  Strong 14% loan growth and 8% asset growth in 2015   – Beat 2015 loan growth goal of 10-12%   – Organic loan growth even higher at 19%   – Average earning assets grew 11% and asset mix improved with 73% of   earning assets in loans, up from 71% in 2014   – Loans to deposits ratio of 79% just trailed year end goal of 80-85%       Asset growth          Strong core deposit growth beat 2015 goal   – Low cost core deposits grew 10% and total deposits grew 9%   – Noninterest-bearing deposits grew 19%, or $62.6 million, on continued   robust commercial relationship acquisition and treasury management   product sales             Core deposit growth          Entered into a definitive merger agreement with Capital Bank Financial in   November.       Explore M&A opportunities          NIE was reduced by 4% from 2014   – PCNR NIE to average assets ratio was 3.03%, beating 3.10% 2015 goal   – 4Q 2015 included $2.0 in merger expenses and $1.1 million in RSA   acceleration expenses, both nonrecurring    Monetize expense efforts         Recap on 2015 Goals    Core noninterest income grew over 9% year over year, in line with our 2015   goal of 10-12% growth   – Accelerating trend with 4Q 2015 growth of 15% vs 4Q 2014   – Mortgage and SBA loan income up 81% over 2014 on 72% increase in   mortgage loan origination and $6.5 million in SBA loan origination   – Total service charges grew 5% year over year as a result of several fee   initiatives and increased overdraft activity levels    Enhanced fee income         6
 Capital Bank Financial Merger   7    Definitive merger agreement between CommunityOne Bancorp and Capital   Bank Financial Corp executed November 22, 2015    Bob Reid and Scott Kauffman to join Capital Bank board       Transaction          Create enhanced scale in fast growing NC markets of Charlotte, Raleigh and   Greensboro   – Pro forma 105 combined branches and $4.0 billion in deposits in the   Carolinas 1    Pro forma company with $9.6 billion in assets positioned in Southeastern   growth markets in the Carolinas and Florida    Pro forma company well capitalized and positioned for additional growth          Strategic Rationale          CommunityOne shareholders may elect to receive either $14.25 per share in   cash or 0.430 of a Capital Bank share for each CommunityOne share, subject   to proration such that total consideration is 85% stock and 15% cash    Announcement date transaction value of approximately $350 million 2       Terms          CommunityOne and Capital Bank Financial shareholder approval    Customary regulatory approvals    Expected to close late 1Q or early 2Q 2016       Approvals and Timing         1  Based on September 30, 2015 reported results   2  Based on Capital Bank Financial Corp November 20, 2015 closing price of $33.59
 Net Interest Income Growth    Net interest income increased   $0.7 million (4%) from 4Q 2014,   and $0.2 million from 3Q 2015     Earning assets levels and mix   improved from 4Q 2014,   partially offsetting yield declines   – Average earning assets   grew $209.6 million (11%)   – Average loans increased   $203.4 million (15%)    Net interest margin was 3.29%,   down 20 bps from 4Q 2014,   and 8 bps from 3Q 2015   – Loan yields fell 43 bps from   a year ago from lower rates   and fixed/variable mix   – Securities yield fell 16 basis   points from 4Q 14 to 2.42%   – Non cash accretion on PI   loans was $0.5 million in 4Q   2015, $0.7 million in 4Q   2014, and $0.5 million in 3Q   2015    Cost of interest bearing   deposits rose 2 bps to 48 bps   on promotional activity, but the   cost of all deposit funding of 39   bps was unchanged from 4Q   2014   8   0.0%   1.0%   2.0%   3.0%   4.0%   5.0%   4Q 2014 1Q 2015 2Q 2015 3Q 2015 4Q 2015   Yield on Loans Yield on Investment Securities   0.0%   1.0%   2.0%   3.0%   4.0%   4Q 2014 1Q 2015 2Q 2015 3Q 2015 4Q 2015   Cost of Interest Bearing Deposits N t Interest Margin   Quarterly Loan and Securities YieldsQuarterly Margin and Cost of Deposits   Quarterly Results   Average Balances, Yields and Net Interest Margin   Dollars in thousands 4Q 2014 1Q 2015 2Q 2015 3Q 2015 4Q 2015   Average loans (includes loans held for sale) 1,340,874$  1,378,834$   1,410,808$  1,483,171$  1,544,258$       Average yield 4.70% 4.67% 4.56% 4.39% 4.27%   Average loans and securities 1,839,709    1,886,599     1,934,020     2,015,711    2,086,390      Average earning assets 1,900,647    1,922,497     1,967,230     2,038,206    2,110,211         Average yield 4.03% 4.07% 3.94% 3.86% 3.79%   Average interest bearing liabilities 1,600,583    1,597,737     1,612,211     1,676,075    1,724,155         Average rate 0.63% 0.63% 0.62% 0.60% 0.61%      Average cost of interest bearing deposits 0.47% 0.48% 0.48% 0.46% 0.48%   Net interest margin 3.49% 3.54% 3.43% 3.37% 3.29%   Net interest rate spread 3.39% 3.44% 3.32% 3.27% 3.17%   Net interest income 16,721$        16,774$        16,827$        17,310$        17,464$
 Noninterest Income Growth    Core noninterest income was   $5.0 million in 4Q 2015   – Increased 15%, or $0.7   million, from 4Q 2014    Mortgage and SBA income   increased $0.2 million, or 82%,   from 4Q 2014 on 55%   increase in loans originated for   sale   – Total origination volume of   $66.6 million, up 68% from   4Q 2014   – SBA origination was $5.3   million in 4Q 2014    Total service charges and   other fee income increased   $0.2 million (13%) from 4Q   2014 on fee and overdraft   protection initiatives    Cardholder and merchant   services income increased 7%   from 4Q 2014, on product   sales and activity volume    Wealth business fee income   rose 6% from 4Q 2014, on   increased assets AUM,   increased investment sales   activity and improved fee splits   with vendors    9   2,040 1,872 1,950   2,293 2,475   241 465 314   381   439   1,298 1,125 1,218   1,253   1,385   394   322 403   376   416   350   250   268   381   268   $4,323   $4,034   $4,153   $4,684   $4,983   $0   $1,000   $2,000   $3,000   $4,000   $5,000   $6,000   4Q 2014 1Q 2015 2Q 2015 3Q 2015 4Q 2015   Service charges and other fee income Mortgage loan income   Cardholder and merchant services income Trust and investment services   Bank-owned life insurance Total   PCNR   1    Noninterest Income Trend   1 Non-GAAP measure.  See table below for reconciliation to GAAP presentation.   Quarterly Results   Noninterest Income   Dollars in thousands 4Q 2014 1Q 2015 2Q 2015 3Q 2015 4Q 2015   Total noninterest income 4,543$       4,034$        4,153$        5,000$       4,983$         Less:       Securities gains, net 220            -                 -                -                -                      Bargain purchase gain -                -                 -                316            -                  Core noninterest income 1 4,323$       4,034$        4,153$        4,684$       4,983$                1  Non-GAAP measure.  Reconciliation to GAAP presentation included in this table.
 568 571   553 551 554   520   540   560   580   4Q 2014 1Q 2015 2Q 2015 3Q 2015 4Q 2015   $12,000   $14,000   $16,000   $18,000   $20,000   4Q 2014 1  2015 2  2015 3Q 2015 4Q 2015   Noninterest Expense    NIE was $1.8 million higher (9%)   than 4Q 2014   – Merger expenses of $2.0   million and RSA acceleration   expenses of $1.1 million,   offset by $1.6 million in   branch closure costs in 4Q   2014   – Combined OREO and   collection expenses were $0.3   million higher   – Personnel expenses   increased for year-end bonus   accruals and payroll taxes   – Reduced branch costs   partially offset by CertusBank   branch expenses    Excluding credit and   nonrecurring, PCNR NIE fell   $0.1 million from 4Q 2014     Average FTE was 554 in Q4,   down 14 (3%) from a year ago         10   5 Quarter PCNR NIE Trend   15 Quarter FTE Trend   Quarterly Results   Noninterest Expense   Dollars in thousands 4Q 2014 1Q 2015 2Q 2015 3Q 2015 4Q 2015   Personnel expense 10,717$        10,594$        10,462$        9,984$          12,767$          Net occupancy expense 1,526            1,469             1,211             1,591            1,409              Furniture, equipment and data processing expense 2,078            1,989             1,875             2,113            2,017              Professional fees 671                539                528                572                489                  Stationery, printing and supplies 162                176                141                144                157                  Advertising and marketing 274                186                134                114                112                  Other real estate owned expense (recovery) 572                360                506                556                889                  Credit/debit card expense 568                543                498                558                449                  FDIC insurance 422                453                456                413                427                  Loan collection expense 170                300                313                (76)                 132                  Merger-related expense -                     -                      -                      -                     1,986              Core deposit intangible amortization 351                352                352                370                371                  Other expense 2,935            1,047             1,351             1,088            1,021              Total noninterest expense 20,446$        18,008$        17,827$        17,427$        22,226$          Core noninterest expense   1   18,880 18,008 17,827 17,427 19,098   PCNR noninterest expense   1   18,138 17,348 17,008 16,947 18,077   Average Quarterly FTE Employees 568                571                553                551                554                        1  Non-GAAP measure. See appendix for reconciliation to GAAP presentation.
 4% 2% 1%   1% 2%   22% 23% 23% 22% 22%   60% 62% 62% 64% 64%   6% 7% 6% 6% 6%   7% 6% 6% 6% 6%   0%   10%   20%   30%   40%   50%   60%   70%   80%   90%   100%   4Q 2014 1Q 2015 2Q 2015 3Q 2015 4Q 2015   Cash and bank balances Investment securities Loans Other assets Deferred tax asset, net   Balance Sheet Growth    Total assets increased $181.8   million from a year ago, an 8%   growth rate    – Loans held for investment   increased $186.0 million   – Average loans were 73% of   average earning assets, up   from 71% a year ago    Investment portfolio grew by   $45.9 million year over year    Growth in other assets   primarily from required Federal   Reserve stock purchases    Borrowings increased $23.7   million from 4Q 2014,   predominantly short term FHLB   borrowings         11   Quarterly Balance Sheet Composition   Quarterly Balance Sheet   Dollars in thousands 4Q 2014 1Q 2015 2Q 2015 3Q 2015 4Q 2015   Cash and interest bearing bank balances 95,882$        47,933$        30,986$        28,006$        39,175$          Investment securities 492,501        508,401        538,015        528,599        538,401          Loans and loans held for sale, net 1,340,239    1,384,474     1,430,631     1,509,356    1,534,003      Other real estate owned 20,411          21,040           19,955          19,166          16,583            Intangible assets 9,886            9,705             9,598             9,648            9,413              Deferred tax asset, net 146,432        144,223        145,229        139,917        141,716          Other assets 110,163        116,158        118,973        118,602        117,974             Total assets 2,215,514$  2,231,934$   2,293,387$  2,353,294$  2,397,265$    Deposits 1,794,420$  1,807,472$   1,855,638$  1,896,879$  1,947,537$    Borrowings 139,350        138,118        154,211        169,095        163,017          Other liabilities 14,828          15,392           13,752          12,680          13,673            Equity 266,916        270,952        269,786        274,640        273,038             Total liabilities and equity 2,215,514$  2,231,934$   2,293,387$  2,353,294$  2,397,265$
 Strong Loan Growth in Key Core Markets   12    Four metro markets represent   75% of our organic loan   portfolio, up from 72% a year   ago    Experienced and growing   origination teams in key   growth markets driving strong   year over year loan portfolio   growth rates   – Charlotte – 30% growth   – Raleigh – 109% growth   – Greensboro/Winston-   Salem – 17% growth   – Strong growth (7%) also   continues in non-metro   markets from share gains    Full range of lending products   – Commercial, SBA,   Treasury, Consumer, Auto,   Mortgage, Wealth   – Commercial Real Estate   including Builder Finance      Organic Loan Portfolio and YoY Growth Rates by MSA   30% Growth   109% Growth   (1)% Growth   17% Growth   7% Growth   $0   $100,000   $200,000   $300,000   $400,000   $500,000   $600,000   Charlotte MSA Raleigh / Durham MSA Hickory MSA Greensboro / WS MSA Non Metro MSAs
 Accelerated Loan Growth Continues    Total loans held for investment   grew $186.0 million in 2015;    growth rate of 14%   – All lines of business grew   loans during the year    Organic loans (excluding   purchased residential loans)   grew $223.2 million; 19%   growth rate    Total pass rated loans grew by   $221.7 million; growth rate of   18%    Non-pass rated loans fell by   $35.7 million, or 35%    Loan portfolio composition   balanced between consumer   and commercial exposure   13   1,357,788 1,395,911   1,445,853   1,522,455 1,543,795   $   $400,000   $800,000   $1,200,000   $1,600,000   4Q 2014 1Q 2015 2Q 2015 3Q 2015 4Q 2015   Commercial RE Construction Consumer/HELOC 1-4 Family Residential   Purchased Residential Non pass loans Total Loans   Quarterly Loan Portfolio Mix   Loan Portfolio Growth Rates By Category   Dollars in thousands 4Q 2014 3Q 2015 4Q 2015 $ %   Commercial and Commercial Real Estate 467,432$    601,379$    599,430$    131,998$    28%   RE Construction 68,995       79,145        100,252      31,257       45%   Consumer/HELOC 217,258      245,292      251,655      34,397       16%   1-4 Family Residential 291,712      342,043      352,956      61,244       21%   Pass Rated Organic Loans 1,045,397   1,267,859   1,304,293   258,896      25%   Purcha ed Resi Mortgage Loans 209,277      179,464      172,092      (37,185)      (18%)   Non Pass Rated Organic Loans 103,113      75,132        67,409        (35,704)      (35%)   Total Loans 1,357,788$ 1,522,455$  1,543,795$ 186,007$    14%   Total Organic Loans 1,148,511$ 1,342,991$  1,371,703$ 223,192$    19%   Total Pass Rated Loans 1,254,675   1,447,323   1,476,386   221,711      18%   2015 Growth
 18% 19% 19% 19%   20%   20% 20% 20% 20% 19%   5% 5% 5% 5% 5%   24% 24% 23% 22% 25%   16% 15% 16% 15% 14%   15%   15% 15% 16% 15%   2% 2% 2% 3% 3%   4Q 2014 1Q 2015 2Q 2015 3Q 2015 4Q 2015   Noninterest-bearing demand Interest-bearing demand Savings   Money market Time deposits < $100,000 Time deposits > $100,000   Brokered   Strong Core Deposit Growth    Deposits increased by $153.1   million, or 9%, in 2015 and mix   was stable    Core deposits (total deposits   less brokered and time   deposits > $100,000) grew   $112.3 million, or 8%, in 2015   – Core deposits were 82% of   total deposits at year end    Low cost core deposits   (excludes all brokered and   time deposits) grew 10%    Noninterest-bearing deposits   increased $62.6 million, a 19%   growth rate    – Driven by commercial   relationship acquisition and   improved treasury   management product set    Average deposits per branch   has grown 21% since 4Q 2014   to $43.3 million per branch   14   Co   re      N   o   n      Co   re      Quarterly Deposit Mix   Quarterly Deposits   Dollars in thousands 4Q 2014 1Q 2015 2Q 2015 3Q 2015 4Q 2015   Noninterest-bearing demand 323,776$     337,417$      352,033$      359,969$     386,329$       Interest-bearing demand 358,162 364,196 363,998 376,962 366,493   Savings 86,686 89,919 92,057 92,415 95,081   Money market 437,484 426,606 433,648 426,464 478,304   Brokered 38,378 37,433 37,054 55,764 55,764   Time deposits < $100,000 285,989 277,928 290,516 286,853 278,239   Time deposits > $100,000 263,945 273,973 286,332 298,452 287,327        Total deposits 1,794,420$  1,807,472$   1,855,638$  1,896,879$  1,947,537$    Total time deposits 588,312$     589,334$      613,902$      641,069$     621,330$       Low cost core deposits 1,206,108    1,218,138     1,241,736     1,255,810    1,326,207      Core deposits 1,492,097    1,496,066     1,532,252     1,542,663    1,604,446      Low cost core mix 67% 67% 67% 66% 68%   Core deposit mix 83% 83% 83% 81% 82%   Deposits per branch 35,888$        41,079$        41,236$        42,153$        43,279$
 $25   $20 $20 $18 $19   $20   $21   $20   $19 $16   $0   $5   $10   $15   $20   $25   $30   $35   $40   $45   $50   4Q 2014 1Q 2015 2Q 2015 3Q 2015 4Q 2015   M   ill   io   ns    o   f   D   ol   la   rs   Nonperforming loans OREO and foreclosed assets   $40   $35   $26 $25   $19   $63   $55   $53 $50   $51   $0   $20   $40   $60   $80   $100   $120   4Q 2014 1  2015 2  2 3  4    M   ill   io   ns    o   f   D   ol   la   rs   Special Menti  Loans Classified Loa s   Credit Risk Well Managed   15   32% decline 23% decline    Continued asset quality   improvement in 2015   – Classified loans fell by   $12.6 million (20%)   – Nonperforming loans   reduced to 1.2% of total   loans, from 1.9% a year   ago   – NPA’s reduced to 1.5% of   assets    The ALL has been reduced to   $15.2 million from $20.3 million   a year ago, reflecting the    improved asset quality and   continued low annualized   charge-off rates    ALL is 0.98% of loans held for   investment    $1.0 million in net charge-offs   in 4Q 2015   – C&I and construction- $0.4   million net recovery   – Consumer & mortgage -   $1.4 million net charge-off   – 2015 net charge-off of 15   bps    Classified Asset Ratio   improved to 31%   Quarterly Asset Quality Trends   Criticized LoansNonperforming Assets   Quarterly Asset Quality   Dollars in thousands 4Q 2014 1Q 2015 2Q 2015 3Q 2015 4Q 2015   Allowance for loan losses (ALL) 20,345$        19,008$        17,989$        17,188$        15,195$          Nonperforming loans to total loans 1.9% 1.5% 1.4% 1.2% 1.2%   Nonperforming assets to total assets 2.1% 1.9% 1.7% 1.6% 1.5%   Annualized net charge-offs (recoveries) to avg. loans (0.04%) 0.06% 0.07% 0.20% 0.26%   Allowance for loan loss to total loans 1.50% 1.36% 1.24% 1.13% 0.98%   Classified assets to Tier 1 + ALL 41% 39% 36% 34% 33%
 Nonperforming Assets and Allowance   16    Originated loans of $1.44   billion with ALL of $12.2   million (0.85%) at 4Q 2015    Granite PI loans of $87.6   million with $2.8 million ALL   (3.15%) at 4Q 2015    Granite PC loans of $18.2   million with ALL of $0.2   million (1.31%) at 4Q 2015    Non-performing assets fell   by $2.1 million (6%) during   the quarter, and $10.3   million (23%) since 4Q 2014    Nonperforming loans fell by   $6.5 million (26%) in 2015     OREO and other foreclosed   assets decreased by $2.6   million (13%) in 4Q and   decreased by $3.8 million   (19%) since year end 2014    At the end of 2015, $2.0   million of OREO (12%) was   under contract for sale      Nonperforming Loans and OREO   Dollars in thousands 4Q 2014 1Q 2015 2Q 2015 3Q 2015 4Q 2015   Commercial and agricultural 608$             515$              469$              429$             1,054$            Real estate - construction 2,307            1,022             799                488                110                  Real estate - mortgage:       1-4 family residential 8,637            8,856             9,383             9,370            9,923                  Commercial 13,386          9,410             8,379             7,575            7,209              Consumer 355                452                553                535                538                      Total nonperforming loans 25,293          20,255           19,583          18,396          18,834            OREO and other foreclosed assets 20,411          21,040           19,955          19,166          16,583                Total nonperforming assets 45,704$        41,295$        39,538$        37,562$        35,417$          NPL / Total Loans Held For Investment 1.9% 1.5% 1.4% 1.2% 1.2%   Quarterly Loan Portfolio and ALL   4Q 2014 1Q 2015 2Q 2015 3Q 2015 4Q 2015   Originated loans 1,208,998$ 1,264,212$  1,322,146$ 1,409,030$ 1,438,078$   Granite purchased impaired (PI) loans 122,842      109,262      102,114      92,677       87,563         Granite purchased contractual (PC) loans 25,948       22,437        21,593        20,749       18,154         Total loans 1,357,788$ 1,395,911$  1,445,853$ 1,522,455$ 1,543,795$   Originated loan ALL (16,729)$     (15,390)$     (14,463)$     (13,705)$     (12,203)$       Granite PI loan ALL (3,237)        (3,194)         (3,181)        (3,190)        (2,754)          Granite PC l an ALL (379)           (424)           (345)           (293)           (238)             Total ALL (20,345)$     (19,008)$     (17,989)$     (17,188)$     (15,195)$       Originated loan ALL / Originated loans (1.38%) (1.22%) (1.09%) (0.97%) (0.85%)   Granite PI ALL  / Granite PI loans (2.64%) (2.92%) (3.12%) (3.44%) (3.15%)   Granite PC ALL / Granite PC loans ( .46%) (1.89%) (1.60%) (1.41%) (1.31%)   Total ALL 1.50% 1.36% 1.24% 1.13% 0.98%
 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 4Q 2014 1Q 2015 2Q 2015 3Q 2015 4Q 2015   Net income before tax 2,141$       3,937$        3,941$        4,947$       1,212$         Less nonrecurring items:   Securities gains, net 220            -                 -                -                -                  (1,566)        -                 -                -                -                  RSA acceleration -                -                 -                -                (1,142)          Merger-related expense -                -                 -                -                (1,986)          Bargain purchase gain -                -                 -                316            -                  Total nonrecurring items (1,346)        -                 -                316            (3,128)          3,487$       3,937$        3,941$        4,631$       4,340$         Income tax expense (benefit) (142,475)$   1,418$        1,418$        3,430$       857$            Less:   Tax effect of nonrecurring items 1 (444)           -                 -                114            (765)             DTA valuation allowance release and revaluation (142,475)     -                 -                1,607         -                  Income tax at effective rate 2 (707)           -                 -                -                -                  1,151         1,418          1,418         1,709         1,622           2,336$       2,519$        2,523$        2,922$       2,719$         1  Tax effected at an income tax rate of 33% in 2014 and 36% in 2015.  Nonrecurring items in 4Q 2015 include $1.0 mm of nondeductible        expenses.   2  Effective income tax expense at 33% in 2014.  During 2014 income tax expense w as offset by DTA valuation allow ance   Core net income (Non-GAAP)   Core net income before tax (Non-GAAP)   Branch closure and restructuring expenses   Core income tax expense (Non-GAAP)
 Non-GAAP Measures    Reconciliation of non-   GAAP measures to the   most directly comparable   GAAP measure   19   Reconciliation of Non-GAAP Measures   Dollars in thousands 4Q 2014 1Q 2015 2Q 2015 3Q 2015 4Q 2015   Book Value (Shareholders' equity) 266,916$    270,952$    269,786$    274,640$    273,038$      Less:       Goodwill (4,205)        (4,205)         (4,205)        (4,205)        (4,205)              Core deposit and other intangibles (5,681)        (5,500)         (5,393)        (5,443)        (5,208)          257,030$    261,247$    260,188$    264,992$    263,625$      Tangible book value (Tangible       shareholders' equity) (Non-GAAP)   Reconciliation of Non-GAAP Measures   Dollars in thousands 4Q 2014 1Q 2015 2Q 2015 3Q 2015 4Q 2015   2,215,514$ 2,231,934$  2,293,387$ 2,353,294$ 2,397,265$   Less:       Goodwill (4,205)        (4,205)         (4,205)        (4,205)        (4,205)              Core deposit and other intangibles (5,681)        (5,500)         (5,393)        (5,443)        (5,208)          2,205,628$ 2,222,229$  2,283,789$ 2,343,646$ 2,387,852$   Total Assets   Tangible Assets (Non-GAAP)   Reconciliation of Non-GAAP Measures   Dollars in thousands 4Q 2014 1Q 2015 2Q 2015 3Q 2015 4Q 2015   Total noninterest expense 20,446$      18,008$      17,827$      17,427$      22,226$        Less nonrecurring:   Branch closure and restructuring expenses 1,566         -                 -                -                -                  RSA acceleration -                -                 -                -                1,142           Merger-related expense -                -                 -                -                1,986           Core noninterest expense (Non-GAAP) 18,880$      18,008$      17,827$      17,427$      19,098$        Less credit related items:   Other real estate owned expense 572            360            506            556            889              Loan collection expense 170            300            313            (76)             132              PCNR noninterest expense (Non-GAAP) 18,138      17,348      17,008      16,9 7      18, 77
 Non-GAAP Measures    Reconciliation of non-   GAAP measures to the   most directly comparable   GAAP measure   20   Reconciliation of Non-GAAP Measures - Full Year   Dollars in thousands 2013 2014 2015   Net income (loss) before tax (157)$          7,966$        14,038$        Less nonrecurring items:   Securities gains, net 2,772          974            -                  Branch closure and restructuring expenses (675)           (1,756)        -                  CEO severance expense -                 (2,060)        -                  Bargain purchase gain -                 -                316              US Treasury sale expenses -                 (409)           -                  Rebranding expense (616)           -                -                  Mortgage and litigation recovery 487            68              -                  Merger-related expense (3,498)         -                (1,986)          RSA acceleration -                 -                (1,142)          Total nonrecurring items (1,530) (3,183) (2,812)   Core net income before tax (Non-GAAP) 1,373$        11,149$      16,850$        Income tax expense (benefit) 1,326$        (142,492)$   7,124$         Less:   Tax effect of nonrecurring items 1 (505)           (1,051)        (651)             DTA valuation allowance release and revaluation 1,326          (142,492)     1,607           Income tax on recurring earnings 2 52              (2,629)        -                  453            3,680         6,168           920$           7,469$        10,682$        1  Tax effected  at an income tax rate of 33% in 2013 & 2014, and 36% in 2015.  Nonrecurring items in 2015 includes $1.0mm in nondeductible expenses.   2  Effective income tax expense at 33% in 2013 and 2014.  During 2013 and 2014 income tax expense was offset by DTA valuation allowance   Core income tax expense (Non-GAAP)   Core net income (Non-GAAP)
 Non-GAAP Measures    Reconciliation of non-   GAAP measures to the   most directly comparable   GAAP measure   21   Reconciliation of Non-GAAP Measures   Dollars in thousands 2013 2014 2015   Total noninterest expense 84,481$      78,535$      75,488$        Less nonrecurring:   Branch closure and restructuring expenses 675            1,756         -                  CEO severance expense -                 2,060         -                  US Treasury sale expenses -                 409            -                  Rebranding expense 616            -                -                  Mortgage and litigation recovery (487)           (68)             -                  RSA acceleration -                 -                1,142           Merger-related expense 3,498          -                1,986           Core noninterest expense (Non-GAAP) 80,179$      74,378$      72,360$        Less credit related items:   Other real estate owned expense 4,138          1,758         2,311           Loan collection expense 4,333          1,576         669              PCNR noninterest expense (Non-GAAP) 71,708$      71,044$      69,380$        Noninterest Income   Dollars i  thousands 20 3 20 4 2015   Total noninterest income 20,414$      17,364$      18,170$        Less:   Bargain purchase gain -                 -                316              Securities gains, net 2,772          974            -                  Core noninterest income 17,642$      16,390$      17,854$
 Non-GAAP Measures    Reconciliation of non-   GAAP measures to the   most directly comparable   GAAP measure   22   Reconciliation of Non-GAAP Measures   Dollars in thousands 2013 2014 2015   1,985,032$  2,215,514$ 2,397,265$   Less:       Goodwill (4,205)         (4,205)        (4,205)              Core deposit and other intangibles (6,914)         (5,681)        (5,208)          1,973,913$  2,205,628$ 2,387,852$ Tangible Assets (Non-GAAP)   Total Assets   Reconciliation of Non-GAAP Measures   Dollars in thousands 2013 2014 2015   Book Value (Shareholders' equity) 80,361$      266,916$    273,038$      Less:       Goodwill (4,205)         (4,205)        (4,205)              Core deposit and other intangibles (6,914)         (5,681)        (5,208)          69,242$      257,030$    263,625$      Tangible book value (Tangible       hareholders' equity) (Non-GAAP)