CommunityOne Bancorp   Investor Presentation   March 2015
 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, capital resources, results of operations, plans, goals,   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.     2
 – Commercial origination resources focused on Charlotte,   Greensboro, Hickory and Raleigh   – Deep experience in Charlotte Metro Market   – SBA bankers located in Charlotte   – Non-branch retail mortgage channel with resources in Charlotte   and Raleigh       Exposure to fastest growing   markets in North Carolina         Value Drivers   3   – Management team has average banking experience of 30 years   – Balance of organic growth and M&A / integration expertise    Experienced Management         – Growing loans and net interest income    12% loan growth and 15% organic loan growth rates in 2014    Generating above peer loan growth by adding banking talent   and expanding into new geographic markets via LPOs   – 7% 2014 expense reduction through branch consolidation,   automation and staffing, problem asset reduction, regulatory   cost reduction, and vendor contract renegotiation   – 2014 investments in fee income generation in SBA Lending,   Wealth, Mortgage and Treasury Management platforms    Accelerating Organic   Performance
 Value Drivers   4   – Stock trades at TBV, a significant discount to peer valuation   metrics   – $1-3 billion peers currently trade at 128% of tangible book value   – Larger peers trade at higher multiples - $3-5 billion peers trade   currently at 174% of TBV       Attractive Current   Valuation         – 11.65% TCE/TA ratio;  9.8% Tier 1 Leverage ratio   – $25 million 4Q capital raise and $142.5 million DTA reserve   reversal   – Strong regulatory relationships   – Disciplined M&A accelerates and augments value creation    Enhances TBV growth    Accelerates multiple expansion       Platform for Disciplined   Acquisition         – Multi-generational customer relationships - CommunityOne Bank   founded in 1907 and Bank of Granite in 1906   – $41 million pro forma average branch size   – High quality, low cost deposit franchise   – Low cost core grew 3% in 2014   – Average cost of interest bearing deposits of 47 bps in 4Q   – Cost of all deposit funding of 39 bps in 4Q       Low cost stable deposit   base
  Driven by loan growth   – Total loan growth 10-12%   – Efficient balance sheet fully invested   – Expansion of non-branch retail 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 platforms             Continued deposit growth          Pursue attractive M&A opportunities   – EPS accretion   – Minimal dilution             Explore M&A opportunities          Capitalize on 2014 expense reduction efforts   – NIE / average assets ratio of 3.1% for 2015   – Closing 6 branches in 1Q 2015   – Monetize vendor contract re-negotiations    Monetize expense efforts         Key Objectives for 2015     5    Driven by mortgage business growth   – 10-12% growth   – Expansion of non-branch retail mortgage channel   – SBA business expansion   – Wealth platform additions   – Service charge income initiatives    Enhanced fee income
 Experienced Management Team   6   Bob Reid   President / Chief Executive Officer      Dave Nielsen   Chief Financial Officer      Beth DeSimone   General Counsel and Chief Risk Officer      Neil Machovec   Chief Credit Officer      Maggie Norris   Chief Operating Officer         Pam Frey   Consumer Banking Executive      Greg Heaton   Commercial Banking Executive      Mark Hensley   Mortgage Banking Executive      Scott Kittrell   Wealth Executive      37 years of banking experience as senior executive at First Union/Wachovia/Wells Fargo including President of   Tennessee, Pennsylvania/Delaware and NY/NJ/Connecticut regions, President of Retirement & Investment Products   and Head of Real Estate.   28 years experience, 25 years at Arnold & Porter in the Corporate and Financial Institution area.  DeSimone's private   practice experience concentrated on regulatory matters, mergers and acquisitions and consumer banking issues.   28 years of combined financial services experience at Interstate Johnson Lane, Wachovia and CommunityOne including   Regional President, Director of Operations and Managing Director of CommunityOne Wealth.    38 years of banking experience, including Small Business Risk Management Executive and Commercial Card Risk   Executive at Bank of America and Director of Credit Policy and Risk Management at HSBC Mortgage Services.   29 years of banking experience at Price Waterhouse Coopers and First Union/Wachovia/Wells including finance,  loan   operations management , treasury product management and merger integration.   31 years of banking experience as senior leader at First Union/Wachovia/Wells Fargo including Regional President roles   in Pennsylvania, Delaware, New Jersey, and Virginia.   26 years banking experience in production and management roles at SunTrust in retail, business banking, commercial   real estate, commercial, and middle market banking.   34 years of banking experience primarily focused in the area of residential mortgage lending; also, served previously as   the Chief Banking Officer at CommunityOne.  Prior to CommunityOne was the Georgia/Florida Regional Mortgage Sales   Manager with Wachovia.   26 years of banking and financial services experience at KPMG, First Union/Wachovia/Wells Fargo including Wholesale   Integration Manager for the Wells Fargo/Wachovia Merger, and COO of Corporate and Investment Banking.    30 years of average experience in management team    Balance of larger bank and community bank backgrounds    M&A and integration capabilities
 Attractive Lending Franchise    NC projected to be second   fastest growing SE state over   next 5 years    Four metro markets represent   72% of our organic loan   portfolio   – 3 of 4 markets growing   faster than projected 5 year   U.S. growth rates   – All 4 are in top 7 in NC    Experienced origination teams   in key growth markets   – Charlotte – 44% growth   – Raleigh – 8% growth   – Hickory – 7% growth   – Greensboro / WS – 2%   growth    Full range of lending products   – Commercial, SBA,   Treasury, Consumer, Auto,   Mortgage, Wealth   – Commercial Real Estate   including Builder Finance    7   44%   7%   2%   8%   5%   0%   5%   10%   15%   20%   25%   30%   35%   40%   45%   50%   $0   $50,000   $100,000   $150,000   $200,000   $250,000   $300,000   $350,000   $400,000   Charlotte MSA Hickory MSA Greensboro & WS   MSAs   Raleigh & Durham   MSAs   Non Metro MSAs   Non Metro Loan Portfolio Metro Loan Portfolio 2014 Growth Rate   2014 Organic Loan Portfolio and Growth Rates by MSA   5 year   Projected   Growth   Total 2014   Population   Population   Rank in NC 1   Charlotte MSA 6.3% 2,337,694       1   Raleigh & Durham MSAs 7.5% 1,750,092       2   Greensboro and W-S MSAs 3.7% 1,397,316       3   Hickory MSA 1.2% 364,754          7   North Carolina 4.8%   United States 3.5%   Source:  SNL Financial   1 Excludes Virginia Beach, VA MSA
 Driving Accelerated Loan Growth    Total loans grew $145.5   million in 2014; growth   rate of 12%    Commercial loan growth   especially strong   – Commercial and CRE   grew $92.5 million, or   25%    Organic loans (excluding   purchased residential   loans) grew $188.6   million; 22% growth rate    Total pass rated loans   grew by $183.8 million;   17% growth rate    Non-pass rated loans   continue to contract, by   $38.3 million, or 27%   during 2014   8   Quarterly Loan Portfolio Mix   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   Loan Portfolio Growth Rates By Category   Dollars in thousands 4Q 2013 4Q 2014 $ %   Commercial and Commercial Real Estate 374,938$      467,432$    92,493$   25%   RE Construction 50,137         68,995       18,858     38%   Consumer/HELOC 186,899       217,258      30,359     16%   1-4 Family Residential 244,803       291,712      46,909     19%   Pass Rated Organic Loans 856,778       1,045,397   188,619   22%   Purchased Resi Mortgage Loans 214,052       209,277      (4,775)     (2%)   Non Pass Rated Organic Loans 141,418       103,113      (38,304)    (27%)   Total Loans 1,212,248$   1,357,788$ 145,540$ 12%   Total Organic Loans 998,196       1,148,511   150,315   15%   Total Pass Rated Loans 1,070,830     1,254,675   183,844   17%   2014 Growth
 Attractive and Growing Core Deposit Franchise    Total deposits increased by 3%   in 2014    High quality, low cost core   deposit base   – $41 million pro forma   average deposits / branch   – 39 bps cost of all deposits   – Core deposit base is 83% of   total deposits at year end   2014    Core deposits grew 3%   – Includes impact of closure   of 3 branches in 1Q 2014         9   1,748,705 1,767,930 1,763,765 1,758,930 1,794,420   $0   $200,000   $400,000   $600,000   $800,000   $1,000,000   $1,200,000   $1,400,000   $1,600,000   $1,800,000   $2,000,000   4Q 2013 1Q 2014 2Q 2014 3Q 2014 4Q 2014   Noninterest-bearing demand Interest-bearing demand Savings   Money market Brokered Time deposits < $100,000   Time deposits > $100,000      Total deposits   Co   re   No   n-   Co   re   Quarterly Deposit Trend and Mix        Branches           Branches Closing in 1Q 2015           Loan Production Office
 Enhanced Earnings Momentum    6th consecutive profitable   quarters    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   – $1.3 million remaining    Net interest income grew 6%   in 4Q   – NIM of 3.49% vs. 3.38%   in 3Q      10   Quarterly Results   Results of Operations   Dollars in thousands 4Q 2013 1Q 2014 2Q 2014 3Q 2014 4Q 2014   Net interest income 16,464$        15,479$        15,718$        15,848$        16,721$          Recovery of provision (provision) for loan losses (1,820)           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.   2014 Net Interest Income Trend 2014 PCNR Earnings Trend   $0   $500   $1,000   $1,500   $2,000   $2,500   $3,000   $3,500   1Q 2014 2Q 2014 3Q 2014 4Q 2014   $14,800   $15,100   $15,400   $15,700   $16,000   $16,300   $16,600   $16,900   1Q 2014 Q 2014 3Q 2014 4Q 2014
 Noninterest Income Growth Drivers    Excluding securities gains,   PCNR noninterest income   quarterly run rate increased   10% from 1st to 4th quarter in   2014   – 2015 forecast of 10-12%   growth    Cardholder and merchant   services income grew 6%   from 2013 on transactional   growth and enhanced   revenue sharing with third   party vendor    Mortgage investments in   2014 and 2015   – New non-branch   origination channel   – Additional branch channel   resources    Wealth Division fees grew   15% in 2014 on increased   investment sales and   investment management fees   – Assets under   management grew 14% in   2014 to $215 million    2 SBA resources hired in   Charlotte in late 2014    Initiatives in process to   enhance service charges   11   2014 PCNR Noninterest Income Trend   2,046 2,026 1,946 2,040   174 261 205   241   1,113   1,209   1,183   1,298   358   399   344   394252   278   273   3503,943   4,173   3,951   4,323   $0   $750   $1,500   $2,250   $3,000   $3,750   $4,500   $5,250   1Q 2014 2Q 2014 3Q 2014 4Q 2014   Service charges and other fee income Mortgage loan income   Cardholder and merchant services income Trust and investment services   Bank-owned life insurance Total
 Continued Expense Management    Total noninterest expenses   reduced 7% in 2014    Rationalized branch   structure and efficiency   – Closed 19 branches   since recap    FTE’s reduced 9% since   2012   – Implemented branch   staffing model    Vendor contract re-   negotiation in Credit/Debit   card processing and   Merchant Services    Reductions in regulatory   costs associated with   improvements in capital and   asset quality    Reduced credit related   expenses                     12   $68,000   $69,000   $70,000   $71,000   $72,000   $73,000   $74,000   $75,000   2012 2013 2014   3 year PCNR NIE Trend   627   596   568   500   520   540   560   580   600   620   640   4Q 2012 4Q 2013 4Q 2014   3 Year 4Q FTE Trend   Annual Results   Noninterest Expense   Dollars in thousands 2012 2013 2014   Personnel expense 40,051$          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$      PCNR noninterest expense   1   74,215$          71,708$        71,044$           1  Non-GAAP measure.  See Appendix for reconciliation.
 $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   $200   4Q 2013 1  2014 2  2014 3  2014 4  2014   M   ill   io   ns    o   f   D   ol   la   rs   Special Me tion Loa s Classified Loans   Credit Risk Well Managed   13   Quarterly Asset Quality Trends   27% decline   28% decline   Quarterly Asset Quality   Dollars in thousands 4Q 2013 1Q 2014 2Q 2014 3Q 2014 4Q 2014   Allowance for loan losses (ALL) 26,785$        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%    Asset quality improvement across all   measures    Portfolio construction approach   – 50% consumer purpose risk   (including residential mortgages)   – 50% commercial purpose risk   (30% C&I, 20% CRE)    Loan portfolio concentrations   – Approved by the Board annually;   reviewed monthly by Credit   – Targets expressed as % of Risk   Based Capital plus the ALL   – C&I - 10 sub segments   – CRE - 11  sub segments   – Consumer - 10 sub segments    Credit Risk/ Line of Business   Partnership   – Credit Risk team is independent   of production units    – Credit Officers embedded locally   in line of business units    – Credit risk must approve all   credit exposure > $100 thousand     Top 50 Relationships   – 60% of relationships established   since re-cap; New relationships   represent 70% of Top 50 dollars   and 13% of  year end 2014 loan   portfolio   – Improved asset quality
 0   5   10   15   20   $0.1 - 0.5 B $0.5 - 1.0 B $1.0 - 2.0 B   North Carolina   P / TB <1.2x   Strategic M&A Opportunities    Virginia, North   Carolina and South   Carolina market   focus    Asset size less than   $1 billion    Price to tangible   book multiples of   <120%    EPS accretive    Minimal dilution and   reasonable earn   back periods               14   Banks in NC   0   10   20   30   40   $0.1 - 0.5 B $0.5 - 1.0 B $1.0 - 2.0 B   Virginia   P / TB <1.2x   Banks in VA   0   5   10   15   20   $0.1 - 0.5 B $0.5 - 1.0 B $1.0 - 2.0 B   South Carolina   P / TB <1.2x   Banks in SC   Source: SNL Financial
 15   Investor Contacts      Bob Reid   President / Chief Executive Officer      Dave Nielsen   Chief Financial Officer      Neil Machovec   Chief Credit Officer      Beth DeSimone   General Counsel      1017 East Morehead Street   Suite 200   Charlotte, NC 28204   800-873-1172   www.community1.com
 Appendix   16
 Non-GAAP Measures - Quarterly   17   Reconciliation of Non-GAAP Measures   Dollars in thousands 4Q 2013 1Q 2014 2Q 2014 3Q 2014 4Q 2014   Net income 2,290$       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)   Quarterly Results   on terest 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 inc me 235            174            261            205            241              Cardholder and merchant services income 1,127 1,113 1,209     1,183         1,298    Trust nd investment ervices 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.   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 c lle tion expense 548            657           551         198             170                  Branch cl su e/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.    Reconciliation of non-GAAP measures to the   most directly comparable GAAP measure
 Non-GAAP Measures - Annual   18   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$         R conciliation of Non-GAAP Measures - Full Year   Dollars in thousands 2012 2013 2014   Book Valu  (Shareholders' equity) 98,445$      80,361$      266,916$      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)    Reconciliation of non-GAAP measures to the   most directly comparable GAAP measure   Annual Result   Nonintere t Income   Dollars in thousands 2012 2013 2014   S rvi e charg s on deposit accounts 7,080$ 6,7 4$ 6,351$   Mortgage loan income 2,065          2,319         881              Cardholder and merc ant servic s income 4,579          4,531         4,803           Trust and investment services 1,036          1,305         1,495           Bank-owned life ins rance 1,195          1,073         1,153           Other service charges, commissions and fees 1,128          1,315         1,340           Securities gains, net 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$        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 r al estate owned expense 27,883$       4,138$        1,758$            Merger-related expense 3,241             3,498             -                       US Treasury sale expenses -                -               409            Loa  co l ction 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$