|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |  |  |  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | This prospectus supplement relates to the offer and sale of 1,085,554 shares of the common stock (the “Shares”) of CommunityOne Bancorp (the “Company”) by the United States Department of the Treasury, the selling shareholder identified in this Prospectus Supplement ("Treasury"). Treasury originally acquired the Shares on October 21, 2011 as part of a recapitalization transaction of the Company in exchange for 51,500 shares of our Fixed Rate Cumulative Perpetual Stock, Series A, previously held by Treasury, plus accrued and unpaid dividends thereon. |
| We will not receive any proceeds from the sale of Shares held by Treasury.                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| Our common stock is traded on the NASDAQ Capital Market (“NASDAQ”) under the symbol "COB." On May 16, 2014, the last reported sales price of our common stock on the NASDAQ was $9.07 per share.                                                                                                                                                                                                                                                                                                                                        |
| Investing in the Shares involves risks. You should read the “Risk Factors” section beginning on page S-4 of this prospectus supplement and page 8 of the accompanying prospectus and in our Annual Report on Form 10-K for the year ended December 31, 2013 before making a decision to invest in the Shares.                                                                                                                                                                                                                           |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | Per Share | Total |
| Public offering price                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | $ | $ |
| Underwriting discounts and commissions(1)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | $ | $ |
| Proceeds to Treasury                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | $ | $ |
| (1)            We have agreed to pay all underwriting discounts and commissions and transfer taxes applicable to the sale of the Shares in this offering. See “Underwriting (Conflict of Interest)” on page S-19 of this prospectus supplement for the total underwriting compensation.                                                                                                                                                                                                                                                 |
| None of the Securities and Exchange Commission (the “SEC”), the Federal Deposit Insurance Corporation (the “FDIC”), the Board of Governors of the Federal Reserve System (the “Federal Reserve”), any state or other securities commission or any other federal or state bank regulatory agency has approved or disapproved of these securities or passed upon the adequacy or accuracy of this prospectus supplement or the accompanying prospectus. Any representation to the contrary is a criminal offense. |
| These securities are not savings accounts, deposits or other obligations of any bank, thrift or other depositary institution and are not insured or guaranteed by the FDIC or any other governmental agency or instrumentality.                                                                                                                                                                                                                                                                                                                     |
| The underwriters expect to deliver the Shares against payment on or about May 23, 2014, subject to customary closing conditions.                                                                                                                                                                                                                                                                                                                                                                                                                    |

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|                                                         |
|---------------------------------------------------------|
|                                                         |  |  |
|                                                    |   |   |
|                                                    | Joint Book-Running Managers |   |
| Keefe, Bruyette & Woods                             |   | Sandler O’Neill + Partners, L.P. |
|  A Stifel Company                                  |   |   |
|                                                    |   |   |
| The date of this prospectus supplement is May __, 2014. |

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|                                                   |
|---------------------------------------------------|
|                                                   |  |
| ABOUT THIS PROSPECTUS SUPPLEMENT                  | S-i |
| SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS | S-i |
| WHERE YOU CAN FIND MORE INFORMATION               | S-ii |
| INCORPORATION OF CERTAIN INFORMATION BY REFERENCE | S-iii |
| SUMMARY                                           | S-1 |
| RISK FACTORS                                      | S-4 |
| USE OF PROCEEDS                                   | S-13 |
| SELLING SHAREHOLDER                               | S-13 |
| MARKET FOR COMMON STOCK AND DIVIDEND POLICY       | S-16 |
| UNDERWRITING (CONFLICT OF INTEREST)               | S-17 |
| LEGAL MATTERS                                     | S-18 |
| EXPERTS                                           | S-19 |

|                                                   |
|---------------------------------------------------|
|                                                   |  |
| ABOUT THIS PROSPECTUS                             | 1 |
| WHERE YOU CAN FIND MORE INFORMATION               | 1 |
| INFORMATION INCORPORATED BY REFERENCE             | 1 |
| SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS | 2 |
| PROSPECTUS SUMMARY                                | 3 |
| USE OF PROCEEDS                                   | 4 |
| RISK FACTORS                                      | 4 |
| PLAN OF DISTRIBUTION                              | 4 |
| REGULATORY CONSIDERATIONS                         | 7 |
| SELLING SHAREHOLDER                               | 7 |
| DESCRIPTION OF THE SECURITIES                     | 10 |
| DESCRIPTION OF THE COMMON STOCK                   | 10 |
| DESCRIPTION OF THE AMENDED TARP WARRANT           | 12 |
| VALIDITY OF THE SECURITIES                        | 14 |
| EXPERTS                                           | 14 |

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|         |                                                                                                                                                   |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------|
| • | our ability to raise capital in amounts and at terms that will support our business needs and meet our business plan and regulatory expectations; |

|         |                                                                                                           |
|---------|-----------------------------------------------------------------------------------------------------------|
| • | financial resources in the amount, at the times and on the terms required to support our future business; |

|         |                                                                                                                                                       |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | changes in interest rates, spreads on earning assets and  interest-bearing liabilities, the shape of  the yield curve and  interest rate sensitivity; |

|         |                                           |
|---------|-------------------------------------------|
| • | a prolonged period of low interest rates; |

|         |                                                                                                  |
|---------|--------------------------------------------------------------------------------------------------|
| • | continued and increased credit losses and material changes in the quality of our loan portfolio; |

|         |                                                                        |
|---------|------------------------------------------------------------------------|
| • | continued decline in the value of our Other Real Estate Owned or OREO; |

|         |                                                                            |
|---------|----------------------------------------------------------------------------|
| • | increased competitive pressures in the banking industry or in our markets; |

|         |                                                                                                                                                               |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | less favorable general economic conditions, either nationally or regionally, resulting in, among other things, a reduced demand for credit or other services; |

|         |                                                                                                                       |
|---------|-----------------------------------------------------------------------------------------------------------------------|
| • | a slowdown in the housing markets, or an increase in interest rates, either of which may reduce demand for mortgages; |

|         |                                                                                                                                                                         |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | changes in trade, monetary and fiscal policies and laws, including interest rate policies of the Federal Reserve Board and federal, state and local taxing authorities; |

|         |                                                                                                                                                                                                                                                                                          |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | the outcome of legislation and regulation affecting the financial services industry, including the Company, including the effects resulting from the implementation of the Dodd-Frank Wall Street Reform and Consumer Protection Act ("Dodd-Frank Act") and the Basel III capital rules; |

|         |                                                 |
|---------|-------------------------------------------------|
| • | changes in accounting principles and standards; |

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|         |                                                                                                                                                  |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------|
| • | adverse changes in financial performance or condition of our borrowers, which could affect repayment of such borrowers’ outstanding loans; |

|         |                                                                   |
|---------|-------------------------------------------------------------------|
| • | repurchase risk in connection with our mortgage line of business; |

|         |                              |
|---------|------------------------------|
| • | reducing costs and expenses; |

|         |                                                                  |
|---------|------------------------------------------------------------------|
| • | increasing price and product/service competition by competitors; |

|         |                                              |
|---------|----------------------------------------------|
| • | rapid technological development and changes; |

|         |                                                                                                                                 |
|---------|---------------------------------------------------------------------------------------------------------------------------------|
| • | the effect of any mergers, acquisitions or other transactions to which we or our subsidiaries may from time to time be a party; |

|         |                                                                        |
|---------|------------------------------------------------------------------------|
| • | the inaccuracy of assumptions underlying the establishment of our ALL; |

|         |                                                      |
|---------|------------------------------------------------------|
| • | loss of one or more members of executive management; |

|         |                                                                                                                                                          |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | disruptions in or manipulations of our operating systems or the systems of our vendors due to, among other things, cybersecurity risks or otherwise; and |

|         |                                                              |
|---------|--------------------------------------------------------------|
| • | our success at managing the risks involved in the foregoing. |

|         |                                                                                                                                     |
|---------|-------------------------------------------------------------------------------------------------------------------------------------|
| • | the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2013, as filed with the SEC on March 7, 2013; |

|         |                                                                                                                                   |
|---------|-----------------------------------------------------------------------------------------------------------------------------------|
| • | the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2014, as filed with the SEC on May 9, 2014; and |

|         |                                                                                                                                           |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------|
| • | the Company’s Definitive Proxy Statement related to its 2014 annual meeting of shareholders as filed with the SEC on April 8, 2014. |

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|        |
|--------|
|        |  |  |
|   |   |   |
|   | Summary |   |
|   | This summary highlights selected information contained elsewhere or incorporated by reference in this prospectus supplement and the accompanying prospectus and may not contain all the information that you need to consider in making your investment decision to purchase the Shares. You should carefully read this entire prospectus supplement and the accompanying prospectus, as well as the information incorporated by reference herein and therein, before deciding whether to invest in the Shares. You should carefully consider the sections entitled “Risk Factors” in this prospectus supplement, the accompanying prospectus and the documents incorporated by reference herein and therein to determine whether an investment in the Shares is appropriate for you. |   |
|   |   |   |
|   | The Company |   |
|   | We are a bank holding company incorporated in 1984 under the laws of the State of North Carolina. Through our bank subsidiary, CommunityOne Bank, N.A., or the "Bank," a national banking association headquartered in Asheboro, North Carolina, we offer a complete line of consumer, wealth management, mortgage and business banking services, including loan, deposit, cash management, investment management and trust services, to individual and business customers through operations located throughout central, southern and western North Carolina. |   |
|   |   |   |
|   | On October 21, 2011, as part of the recapitalization of the Company (“Recapitalization”), the Company acquired Bank of Granite Corporation and its subsidiary bank, Bank of Granite, through the merger of a wholly owned subsidiary of ours into Granite Corp. (the “Merger”). Bank of Granite was merged into the Bank on June 8, 2013. The Recapitalization also included: (a) a capital raise of $310 million in a private placement, at a price of $16.00 per share, with investments from (1) affiliates of each of The Carlyle Group (“Carlyle”), and Oak Hill Capital Partners (“Oak Hill Capital”), and (2) various other investors, including certain of our directors and officers (collectively, the "Investors"); (b) the exchange of 51,500 shares of our Fixed Rate Cumulative Perpetual Preferred Stock, Series A par value $10.00 per share and liquidation preference $1,000 per share ("Preferred Shares"), held by Treasury and all accrued and unpaid dividends thereon, for an aggregate of 1,085,554 shares of our common stock, pursuant to an agreement between the Company and Treasury, and (2) the amendment of the warrant (“Amended TARP Warrant”) issued to the Treasury to purchase shares of our common stock at an exercise price of $16.00 per share; (c) the settlement by the Bank of $2.5 million aggregate principal amount of subordinated debt outstanding and held by SunTrust Bank for cash in the amount equal to the sum of 35% of the principal amount thereof plus 100% of the unpaid and accrued interest thereon as of the closing date, and the repurchase by the Bank from SunTrust Bank of the shares of nonvoting, nonconvertible, nonredeemable cumulative preferred stock of the Bank held by SunTrust Bank and having an aggregate liquidation preference of $12.5 million for cash in an amount equal to the sum of 25% of the aggregate liquidation preference plus 100% of the unpaid and accrued dividends thereon as of the closing date; and (d) a one-for-one hundred reverse stock split of our common stock effective as of the close of business on October 31, 2011. |   |
|   |   |   |
|   | We earn revenue primarily from interest on loans and securities investments, mortgage banking income and fees charged for financial services provided to our customers. Offsetting these revenues are the cost of deposits and other funding sources, provision for loan losses and write-downs in the value of, gains and losses on disposition of, and holding costs associated with our OREO, and other operating costs such as: salaries and employee benefits, occupancy, data processing expenses, merger related expenses and tax expense. |   |
|   |   |   |
|   | Our principal executive offices are located at 1017 E. Morehead Street, Suite 200, Charlotte, North Carolina 28204, and our telephone number is (336) 626-8300. Our internet address is http://www.community1.com. The information contained on our web site is not included as part of or incorporated into this prospectus supplement. |   |
|   |   |   |
|   |   |   |

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|        |
|--------|
|        |  |  |  |
|   |   |   |   |
|   | The Offering |   |
|   | Issuer | CommunityOne Bancorp |   |
|   |   |   |   |
|   | Shares Offered by Treasury | 1,085,554 shares of common stock, no par value per share. |   |
|   |   |   |   |
|   | Use of Proceeds | We will not receive any proceeds from the sale of any Shares sold by Treasury.  See “Use of Proceeds.” |   |
|   |   |   |   |
|   | Listing | Our common stock is listed on the NASDAQ under the symbol “COB”. |   |
|   |   |   |   |
|   | Risk Factors | See “Risk Factors” and other information included or incorporated by reference in this prospectus supplement and the accompanying prospectus for a discussion of factors you should consider carefully before making a decision to invest in the Shares. |   |
|   |   |   |   |
|   | Conflict of Interest | Entities affiliated with Carlyle hold approximately 22.4% of our outstanding shares of common stock. Because Carlyle has an interest in Sandler O’Neill + Partners, L.P. (“Sandler O’Neill”), it is deemed to have a “conflict of interest” under Rule 5121 (“Rule 5121”) of the Financial Industry Regulatory Authority, Inc. (“FINRA”). Accordingly, this offering will be made in compliance with the applicable provisions of Rule 5121. This rule requires that a “qualified independent underwriter” meeting certain standards participate in the preparation of the registration statement and prospectus and exercise the usual standards of due diligence with respect thereto. Keefe, Bruyette & Woods, Inc. has assumed the responsibilities of acting as a “qualified independent underwriter” within the meaning of Rule 5121 in connection with this offering. We have agreed to indemnify Keefe, Bruyette & Woods, Inc. for acting as a qualified independent underwriter against certain liabilities, including liabilities under the Securities Act, and to contribute to payments that Keefe, Bruyette & Woods, Inc. may be required to make for these liabilities. |   |
|   |   |   |   |

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|                                                                                                                           |
|---------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                           |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (dollars in thousands, except per share data)                                                                             | As of and for Three Months Ended March 31, |   | As of and for the Year Ended December 31, |
|                                                                                                                      | 2014 |   | 2013 |   | 2013 |   | 2012 |   | 2011 |   | 2010 |   | 2009 |
| Income Statement Data                                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net interest income                                                                                                       |  $     15,479 |  |   |  $     15,173 |  |   |  $     64,433 |  |   |  $     61,280 |  |   |  $     39,555 |  |   |  $     51,650 |  |   |  $     60,535 |  |
| Provision for loan losses                                                                                                 |             (684) |  |   |              110 |  |   |              523 |  |   |         14,049 |  |   | 67,362 |  |   | 132,755 |  |   | 61,509 |  |
| Noninterest income                                                                                                        |           3,943 |  |   |           6,533 |  |   |         20,414 |  |   |         21,958 |  |   | 21,970 |  |   | 27,622 |  |   | 13,442 |  |
| Noninterest expense                                                                                                       |         18,806 |  |   |         24,339 |  |   |         84,481 |  |   |       110,206 |  |   | 125,040 |  |   | 75,679 |  |   | 111,615 |  |
| Income (loss) from continuing operations, net of taxes                                                                    |           1,277 |  |   |          (4,596) |  |   |          (1,483) |  |   |        (39,978) |  |   | (131,518) |  |   | (130,421) |  |   | (102,561) |  |
| Income (loss) from discontinued operations, net of taxes                                                                  | — |  |   | — |  |   | — |  |   |               (27) |  |   | (5,796) |  |   | (1,406) |  |   | 865 |  |
| Net income (loss)                                                                                                         |           1,277 |  |   |          (4,596) |  |   |          (1,483) |  |   |        (40,005) |  |   | (137,314) |  |   | (131,827) |  |   | (101,696) |  |
| Preferred stock gain on retirement, net of accretion, and dividends                                                       | — |  |   | — |  |   | — |  |   | — |  |   | 44,592 |  |   | (3,294) |  |   | (2,871) |  |
| Net income (loss) to common shareholders                                                                                  |           1,277 |  |   |          (4,596) |  |   |          (1,483) |  |   |        (40,005) |  |   | (92,722) |  |   | (135,121) |  |   | (104,567) |  |
| Period End Balances                                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Assets                                                                                                                    |  $2,008,481 |  |   |  $2,093,311 |  |   |  $1,985,032 |  |   |  $2,151,565 |  |   |  $2,409,108 |  |   |  $1,902,369 |  |   |  $2,101,296 |  |
| Loans held for sale (1)                                                                                                   | 1,961 |  |   | 5,012 |  |   | 1,836 |  |   | 6,974 |  |   | 4,529 |  |   | — |  |   | 4,567 |  |
| Loans held for investment (2)                                                                                             | 1,219,785 |  |   | 1,113,765 |  |   | 1,212,248 |  |   | 1,177,035 |  |   | 1,217,535 |  |   | 1,303,975 |  |   | 1,563,021 |  |
| Allowance for loan losses (1)                                                                                             | 26,039 |  |   | 29,641 |  |   | 26,785 |  |   | 29,314 |  |   | 39,360 |  |   | 93,687 |  |   | 49,229 |  |
| Goodwill                                                                                                                  | 4,205 |  |   | 4,205 |  |   | 4,205 |  |   | 4,205 |  |   | 3,905 |  |   | — |  |   | — |  |
| Deposits                                                                                                                  | 1,767,930 |  |   | 1,856,161 |  |   | 1,748,705 |  |   | 1,906,988 |  |   | 2,129,111 |  |   | 1,696,390 |  |   | 1,722,128 |  |
| Borrowings                                                                                                                | 140,406 |  |   | 122,320 |  |   | 142,165 |  |   | 123,705 |  |   | 123,910 |  |   | 218,315 |  |   | 261,459 |  |
| Shareholders’ equity (deficit)                                                                                      | 85,331 |  |   | 89,374 |  |   | 80,361 |  |   | 98,445 |  |   | 129,015 |  |   | (28,837) |  |   | 98,359 |  |
| Per Common Share Data                                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net income (loss) per share from continuing operations - basic and diluted                                                |  $         0.06 |  |   |  $        (0.21) |  |   |  $        (0.07) |  |   |  $        (1.87) |  |   |  $      (20.71) |  |   |  $ (1,170.47) |  |   |  $    (923.47) |  |
| Net income (loss) per common share from discontinued operations - basic and diluted                                       | — |  |   | — |  |   | — |  |   | — |  |   |            (1.38) |  |   |          (12.31) |  |   |             7.58 |  |
| Net income (loss) per common share - basic and diluted                                                                    |             0.06 |  |   |            (0.21) |  |   |            (0.07) |  |   |            (1.87) |  |   |          (22.09) |  |   |     (1,182.78) |  |   |        (915.89) |  |
| Cash dividends declared                                                                                                   | — |  |   | — |  |   | — |  |   | — |  |   | — |  |   | — |  |   |             5.00 |  |
| Book value                                                                                                                |             3.88 |  |   |             4.12 |  |   |             3.68 |  |   |             4.54 |  |   |             6.11 |  |   |        (714.72) |  |   |         404.95 |  |
| Performance Ratios                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Return on average assets                                                                                                  | 0.26 | % |   | (0.88 | )% |   | (0.07 | )% |   | (1.75 | )% |   | (4.85 | )% |   | (6.63 | )% |   | (4.85 | )% |
| Return on average equity                                                                                                  |             6.18 |  |   |          (19.30) |  |   |            (1.73) |  |   |          (34.88) |  |   |  N/M |  |   |        (198.15) |  |   |          (60.72) |  |
| Net interest margin (tax equivalent)                                                                                      |             3.43 |  |   |             3.20 |  |   |             3.44 |  |   |             2.95 |  |   |             2.29 |  |   |             2.81 |  |   |             3.12 |  |
| Asset Quality Ratios                                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Allowance for loan losses to period end loans held for investment (1) (2)                                                 | 2.13 | % |   | 2.66 |  % |   | 2.21 |  % |   | 2.49 |  % |   | 3.23 |  % |   | 7.18 |  % |   | 3.15 |  % |
| Nonperforming loans to period end allowance for loan losses (1) (3)                                                       |              130 |  |   |              238 |  |   |              131 |  |   |              271 |  |   |              269 |  |   |              352 |  |   |              354 |  |
| Net charge-offs to average loans held for investment (2)                                                                  |             0.02 |  |   |            (0.08) |  |   |             0.26 |  |   |             1.94 |  |   |           10.75 |  |   |             5.92 |  |   |             2.97 |  |
| Nonperforming assets to period end total assets (3)                                                                       |               2.9 |  |   |               5.6 |  |   |               3.2 |  |   |               6.6 |  |   |               9.0 |  |   |             19.1 |  |   |             10.0 |  |
| Capital and Liquidity Ratios                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Average equity to average assets                                                                                          | 4.23 | % |   | 4.58 |  % |   | 4.18 |  % |   | 5.00 |  % |   | (1.19 | )% |   | 3.35 |  % |   | 7.98 |  % |
| Total risk-based capital                                                                                                  |           12.80 |  |   |           12.58 |  |   |           12.62 |  |   |           12.34 |  |   |           13.81 |  |   |            (2.56) |  |   |           10.29 |  |
| Tier 1 risk-based capital                                                                                                 |             9.67 |  |   |             9.19 |  |   |             9.48 |  |   |             9.26 |  |   |           11.71 |  |   |            (2.56) |  |   |             6.86 |  |
| Leverage capital                                                                                                          |             6.20 |  |   |             5.37 |  |   |             5.96 |  |   |             5.45 |  |   |             6.70 |  |   |            (1.86) |  |   |             5.68 |  |
| Period end loans to period end deposits (2)                                                                               |                69 |  |   |                60 |  |   |                69 |  |   |                62 |  |   |                57 |  |   |                77 |  |   |                91 |  |
| (1) Excludes discontinued operations.                                                                                     |
| (2) Loans held for investment, net of unearned income, before allowance for loan losses.                                  |
| (3) Nonperforming loans and nonperforming assets include loans past due 90 days or more that are still accruing interest. |

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|         |                                                                                                                                                                                            |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | permit our Board of Directors to issue, without shareholder approval unless otherwise required by law, voting preferred stock with such terms as our Board of Directors may determine; and |

|         |                                                                                                                                                                                                                            |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | require the affirmative vote of the holders of at least 75% of our voting shares to approve major corporate transactions unless the transaction is approved by three-fourths of our “disinterested” directors. |

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|                                                                                                                                                                                                                                                                                                                 |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                                                                 |  |  |  |  |  |
|                                                                                                                                                                                                                                                                                                            | Beneficial OwnershipPrior to the Offering (1)(2) |   | Beneficial OwnershipAfter the Offering |
| Name and Address of Beneficial Owner                                                                                                                                                                                                                                                                            | Number ofSharesBeneficiallyOwned (1) | Percent | SharesBeing Offered | Number ofSharesBeneficiallyOwned (1)(2) | Percent |
| United States Department of theTreasury1500 Pennsylvania Avenue, N.W.Washington, D.C. 20220                                                                                                                                                                                                                     | 1,107,626 | 5.0% | 1,085,554 | 22,072 | * |
| * Less than 1 percent                                                                                                                                                                                                                                                                                           |   |   |   |   |   |
| (1) In accordance with Rule 13d-3 under the Exchange Act, a person is deemed to be the beneficial owner, for purposes of this table, of any Shares over which such person has voting or investment power and of which such person has the right to acquire beneficial ownership within 60 days of May 16, 2014. |
| (2) Includes the 22,072 shares of our common stock underlying the warrant held by Treasury.                                                                                                                                                                                                                |

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|                |
|----------------|
|                |  |  |  |  |  |  |  |
|           | 2012 |
|           | High |   | Low |
| First Quarter  | $ | 21.51 |  |   | $ | 11.50 |  |
| Second Quarter | $ | 29.60 |  |   | $ | 11.17 |  |
| Third Quarter  | $ | 12.99 |  |   | $ | 11.00 |  |
| Fourth Quarter | $ | 12.50 |  |   | $ | 10.50 |  |

|                |
|----------------|
|                |  |  |  |  |  |
|           | 2013 |
|           | High |   | Low |
| First Quarter  | $ | 12.00 |   | $ | 9.69 |
| Second Quarter | $ | 9.81 |   | $ | 5.91 |
| Third Quarter  | $ | 10.47 |   | $ | 7.37 |
| Fourth Quarter | $ | 13.09 |   | $ | 9.50 |

|                                       |
|---------------------------------------|
|                                       |  |  |  |  |  |  |  |
|                                  | 2014 |
|                                  | High |   | Low |
| First Quarter                         | $ | 13.50 |  |   | $ | 10.50 |  |
| Second Quarter (through May 16, 2014) | $ | 11.58 |  |   | $ | 8.50 |  |

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|                                                                                                                                |
|--------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                |  |
| Underwriter                                                                                                                    | Number ofShares |
| Keefe, Bruyette & Woods, Inc.                                                                                              |   |
| Sandler O’Neill & Partners, L.P.                                                                                     |   |
|                                                                                                                           |   |
|                      Total |   |

|                                           |
|-------------------------------------------|
|                                           |  |  |
|                                      | Per Share | Total |
| Price to public                           | $ | $ |
| Underwriting discounts and commissions(1) |   |   |
| Proceeds to Treasury                      |   |   |

|           |                                                                                                                                            |
|-----------|--------------------------------------------------------------------------------------------------------------------------------------------|
| (1)  | We have agreed to pay all underwriting discounts and commissions and transfer taxes applicable to the sale of the Shares in this offering. |

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|         |                                                                                                                                             |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------|
| • | Stabilizing transactions permit bids to purchase the underlying security so long as the stabilizing bids do not exceed a specified maximum. |

|         |                                                                                                                                                             |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Covering transactions involve purchases of our common stock in the open market after the distribution has been completed in order to cover short positions. |

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----

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|         |                                                                                                                                            |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------|
| • | the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2013, filed with the SEC on March 7, 2014; |

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|         |                                                                                                                                                                      |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | the Company’s Definitive Proxy Statement related to its annual meeting of shareholders to be held on May 28, 2014, as filed with the SEC on April 8, 2014; and |

|         |                                                                                                                                                                                                                             |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | the description of our Common Stock set forth in our Registration Statement on Form S-1 filed with the SEC on November 18, 2011, including any amendment or report filed for the purpose of updating such description. |

|         |                                                                                                                          |
|---------|--------------------------------------------------------------------------------------------------------------------------|
| • | financial and management resources in the amount, at the times and on the terms required to support our future business; |

|         |                                                                                                                                            |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------|
| • | adverse changes in financial performance or condition of our borrowers, which could affect repayment of such borrowers' outstanding loans; |

|         |                                                                          |
|---------|--------------------------------------------------------------------------|
| • | credit losses and material changes in the quality of our loan portfolio; |

|         |                                                                                |
|---------|--------------------------------------------------------------------------------|
| • | new declines in the value of our Other Real Estate Owned (“OREO”); |

|         |                                                                                              |
|---------|----------------------------------------------------------------------------------------------|
| • | the inaccuracy of assumptions underlying the establishment of our allowance for loan losses; |

|         |                                                         |
|---------|---------------------------------------------------------|
| • | the success we may have in reducing costs and expenses; |

|         |                                                                                                                                                               |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | less favorable general economic conditions, either nationally or regionally; resulting in, among other things, a reduced demand for credit or other services; |

|         |                                                                                                                           |
|---------|---------------------------------------------------------------------------------------------------------------------------|
| • | a new slowdown in the housing markets, or an increase in interest rates, either of which may reduce demand for mortgages; |

|         |                                                                                                                                                    |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------|
| • | changes in interest rates, spreads on earning assets and interest-bearing liabilities, the shape of the yield curve and interest rate sensitivity; |

|         |                                           |
|---------|-------------------------------------------|
| • | a prolonged period of low interest rates; |

|         |                                                      |
|---------|------------------------------------------------------|
| • | loss of one or more members of executive management; |

|         |                                              |
|---------|----------------------------------------------|
| • | rapid technological development and changes; |

|         |                                                           |
|---------|-----------------------------------------------------------|
| • | disruptions in or manipulations of our operating systems; |

|         |                                                                                      |
|---------|--------------------------------------------------------------------------------------|
| • | increased competitive pressures in the banking industry or in the Company's markets; |

|         |                                                                  |
|---------|------------------------------------------------------------------|
| • | increasing price and product/service competition by competitors; |

|         |                                                                                                                                                                                    |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | changes in trade, monetary and fiscal policies and laws, including interest rate policies of the Board of Governors of the Federal Reserve System (“Federal Reserve”); |

|         |                                                                                                                                                                                                                                                 |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | the outcome of legislation and regulation affecting the financial services industry, including the Company, including the continued effects resulting from the implementation of the Dodd-Frank Wall Street Reform and Consumer Protection Act; |

|         |                                                 |
|---------|-------------------------------------------------|
| • | changes in accounting principles and standards; |

|         |                                                                                                                                     |
|---------|-------------------------------------------------------------------------------------------------------------------------------------|
| • | the effect of any mergers, acquisitions or other transactions to which we or our subsidiaries may from time to time be a party; and |

|         |                                                                        |
|---------|------------------------------------------------------------------------|
| • | the Company's success at managing the risks involved in the foregoing. |

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----

|         |                                                    |
|---------|----------------------------------------------------|
| • | directly to investors, stockholders or purchasers; |

|         |                              |
|---------|------------------------------|
| • | to investors through agents; |

|         |                     |
|---------|---------------------|
| • | directly to agents; |

|         |                                   |
|---------|-----------------------------------|
| • | to or through brokers or dealers; |

|         |                                                                                         |
|---------|-----------------------------------------------------------------------------------------|
| • | to the public through underwriting syndicates led by one or more managing underwriters; |

|         |                                                                                    |
|---------|------------------------------------------------------------------------------------|
| • | to one or more underwriters acting alone for resale to investors or to the public; |

|         |                                                                                                                                                                                                                                       |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | through a block trade in which the broker or dealer engaged to handle the block trade will attempt to sell the securities as agent, but may position and resell a portion of the block as principal to facilitate the transaction; or |

|         |                                                        |
|---------|--------------------------------------------------------|
| • | through a combination of any of these methods of sale. |

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|         |                                                                     |
|---------|---------------------------------------------------------------------|
| • | at a fixed price or prices, which may be changed from time to time; |

|         |                                                   |
|---------|---------------------------------------------------|
| • | at market prices prevailing at the times of sale; |

|         |                                                        |
|---------|--------------------------------------------------------|
| • | at prices related to such prevailing market prices; or |

|         |                       |
|---------|-----------------------|
| • | at negotiated prices. |

|         |                                                                                                                                                                                                |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | that the institution’s purchase of the securities at the time of delivery of the securities is not prohibited under the law of any jurisdiction to which the institution is subject; and |

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|         |                                                                                                                                                                               |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | that we shall have sold to the underwriters the total principal amount of the offered securities, less the principal amount covered by the delayed delivery contracts.   |

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|                                                                                        |
|----------------------------------------------------------------------------------------|
|                                                                                        |  |  |  |  |  |
|                                                                                   | Beneficial OwnershipPrior to the Offering |   | Beneficial OwnershipAfter the Offering |
| Name and Address of Beneficial Owner                                              | Number ofCommon SharesBeneficiallyOwned(1) | Percent(2) | CommonShares BeingOffered | Number ofCommon SharesBeneficiallyOwned | Percent(2) |
| United States Department of the Treasury1500 Pennsylvania AvenueWashington, D.C. 20022 | 1,107,626(3) | 5.0% | 1,107,626(2) | 0 | * |
| * Less than 1 percent                                                                  |   |   |   |   |   |

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----

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|         |                                                                                                                                                                                            |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | permit our board of directors to issue, without shareholder approval unless otherwise required by law, voting preferred stock with such terms as our board of directors may determine; and |

|         |                                                                                                                                                                                                                            |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | require the affirmative vote of the holders of at least 75% of our voting shares to approve major corporate transactions unless the transaction is approved by three-fourths of our “disinterested” directors. |

|         |                                                                                                                                                                                                                                                                                       |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | nominate and recommend to our shareholders the election of such Anchor Investor’s designated director to the Company board of directors at our annual meetings of shareholders and use reasonable best efforts to have such designees elected as directors by our shareholders; |

|         |                                                                                                                           |
|---------|---------------------------------------------------------------------------------------------------------------------------|
| • | elect or appoint the directors designated by the Anchor Investor to serve on the board of directors of CommunityOne Bank; |

|         |                                                                                                                                                                                           |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | appoint the directors designated by the Anchor Investor to certain committees of each of the Company and CommunityOne Bank boards of directors, as identified by the Anchor Investor; and |

|         |                                                                                                                                                         |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | invite a designee of the Anchor Investor to attend meetings of the Company and CommunityOne Bank boards of directors in a nonvoting, observer capacity. |

|         |                                                                        |
|---------|------------------------------------------------------------------------|
| • | the nine-month anniversary of the closing date, or July 21, 2012; |

|         |                                                                                                                          |
|---------|--------------------------------------------------------------------------------------------------------------------------|
| • | the date on which the Anchor Investor and its affiliates own less than 5% of the outstanding shares of our common stock; |

|         |                                                                                                                                        |
|---------|----------------------------------------------------------------------------------------------------------------------------------------|
| • | the commencement of a bona fide tender offer or exchange offer that, if completed, would result in a change of control of the Company; |

|         |                                                                                                                                          |
|---------|------------------------------------------------------------------------------------------------------------------------------------------|
| • | the public announcement by the Company that we are “for sale” in a transaction that would result in a change of control; and |

|         |                                                                                                                                   |
|---------|-----------------------------------------------------------------------------------------------------------------------------------|
| • | the execution by the Company of a definitive agreement which, if consummated, would result in a change of control of the Company. |

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----

|         |                                                                                                          |
|---------|----------------------------------------------------------------------------------------------------------|
| • | as consideration for or to fun the acquisition of businesses and/or related assets at fair market value; |

|         |                                                                                                                                                                              |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | in connection with employee benefit plans and compensation related arrangements in the ordinary course and consistent with past practice approved by the Board of Directors; |

|         |                                                                                                                                                                                                                                                                                                                                      |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | in connection with public or broadly marketed offerings and sales of Common Shares or convertible securities for cash conducted by us or our affiliates pursuant to registration under the Securities Act, or Rule 144A thereunder on a basis consistent with capital-raising transactions by comparable financial institutions; and |

|         |                                                                                                                   |
|---------|-------------------------------------------------------------------------------------------------------------------|
| • | in connection with the exercise of preemptive rights on terms existing as of the Amended TARP Warrant issue date. |

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|                             |
|-----------------------------|
|                             |  |  |
|                        | Joint Book-Running Managers |   |
|                        |   |   |
| Keefe, Bruyette & Woods |   | Sandler O’Neill + Partners, L.P. |
|  A Stifel Company      |   |   |
|                        | May   , 2014 |   |