CommunityOne Bancorp   Third Quarter 2015 Earnings Presentation   October 30, 2015
 Presenters         Bob Reid      President / Chief Executive Officer         David Nielsen      Chief Financial Officer         Neil Machovec      Chief Credit Officer           2
 Forward Looking Statements & Other Information   3              Forward Looking Statements   This presentation contains certain forward-looking statements within the safe harbor rules of the federal securities laws.   These statements generally relate to COB’s financial condition, results of operations, plans, objectives, future   performance or business. They usually can be identified by the use of forward-looking terminology, such as “believes,”   “expects,” or “are expected to,” “plans,” “projects,” “goals,” “estimates,” “may,” “should,” “could,” “would,” “intends to,”   “outlook” or “anticipates,” or variations of these and similar words, or by discussions of strategies that involve risks and   uncertainties. Forward looking statements are subject to risks and uncertainties, including but not limited to, those risks   described in COB’s Annual Report on Form 10-K for the year ended December 31, 2014 under the section entitled   “Item 1A, Risk Factors,” and in the Quarterly Reports of Form 10-Q and other reports that are filed by COB with the   Securities and Exchange Commission. You are cautioned not to place undue reliance on these forward-looking   statements, which are subject to numerous assumptions, risks and uncertainties, and which change over time. These   forward-looking statements speak only as of the date of this presentation.  Actual results may differ materially from   those expressed in or implied by any forward looking statements contained in this presentation.   We assume no duty   to revise or update any forward-looking statements, except as required by applicable law.   Non-GAAP Financial Measures   In addition to the results of operations presented in accordance with Generally Accepted Accounting Principles (GAAP),   COB management uses and this presentation contains or references, certain non-GAAP financial measures. COB   believes  these non-GAAP financial measures provide information useful to investors in understanding our underlying   operational performance and our business and performance trends as they facilitate comparisons with the performance   of others in the financial services industry; however, these non-GAAP financial measures should not be considered an   alternative to GAAP. The non-GAAP financial measures contained within this presentation should be read in   conjunction with the audited financial statements and analysis as presented in COB’s Annual Report on Form 10-K as   well as the unaudited financial statements and analyses as presented in COB’s Quarterly Reports on Form 10-Q.  A   reconciliation of non-GAAP measures to the most directly comparable GAAP measure is included within tables in the   presentation or within the appendix to this presentation.
 Quarterly Operating Highlights    Core net income of $2.9 million ($0.12   per share) up 24% over 3Q 2015   – Net income of $1.5 million, $0.06   per share   – Net income before tax of $4.9   million, up 230% over 3Q 2014   – Non-core $2.3 million state DTA   revaluation tax expense, $0.7   million valuation allowance release   tax benefit and $0.3 million bargain   purchase gain    Sixth consecutive quarter of double   digit annualized loan growth   – Portfolio grew $76.6 million, a 21%   annualized growth rate   – Loan to deposit ratio grew to 80%    Annualized deposit growth of 9%   – Noninterest-bearing deposits grew   at 9% annualized rate    Continued positive credit trends   – NPA’s fell to 1.6% of assets     Net interest income grew 9% over 3Q   2014   – 3.37% NIM, down 1 bps over 3Q   2014    Core NII grew 19% from 3Q 2014 on   strong service charges and mortgage    NIE fell 13% from 3Q 2014 with PCNR   NIE to average assets of 2.92% in 3Q      4   Quarterly Performance Metrics   Dollars in thousands except per share data 3Q 2014 4Q 2014 1Q 2015 2Q 2015 3Q 2015   Net income per share - diluted 0.08$            6.62$             0.10$             0.10$            0.06$              Core net income per share - diluted   1   0.11$            0.11$             0.10$             0.10$            0.12$              Return on average assets 0.35% 28.10% 0.46% 0.45% 0.26%   Core return on average assets   1   0.47% 0.45% 0.46% 0.45% 0.50%   Return on average equity 7.6% 577.0% 3.8% 3.7% 2.2%   Net interest margin 3.38% 3.49% 3.54% 3.43% 3.37%   PCNR noninterest expense to average assets   1   3.55% 3.55% 3.15% 3.03% 2.92%   Loans held for investment 1,318,117$  1,357,788$   1,395,911$  1,445,853$  1,522,455$    Deposits 1,758,930    1,794,420     1,807,472     1,855,638    1,896,879      NPA's to total assets 2.4% 2.1% 1.9% 1.7% 1.6%   Loans to deposits 75% 76% 77% 78% 80%   Tier 1 Leverage 6.48% 9.78% 8.47% 8.50% 8.43%   Tier 1 Common Equity N/A N/A 11.86% 11.85% 11.64%   Tangible book value to tangible assets   1   4.2% 11.7% 11.8% 11.4% 11.3%   1  Non-GAAP measure.  See appendix for reconciliation to GAAP presentation.   Quarterly R sults   Results of Operations   Dollars in thousands 3Q 2014 4Q 2014 1Q 2015 2Q 2015 3Q 2015   Net int rest income 15,848$        16,721$        16,774$        16,827$        17,310$          covery of provision 1,679            1,323             1,137             788                64                    Noninterest income 3,985            4,543             4,034             4,153            5,000              Noninterest expense 20,015          20,446           18,008          17,827          17,427            Net income b fore tax 1,497            2,141             ,937             ,941            4, 47              Income tax benefit (exp se) 276                142,475        (1,4 8)           (1,418)           (3, 30)             Net income 1,773            144,616        2,519             2,523            1,517              Core net income   1   2,360            2,336             2,519             2,523            2,922                  1  Non-GAAP measure.  See appendix for reconciliation to GAAP presentation.
  10% annualized asset growth and 21% annualized loan growth in 3Q - 6th   consecutive quarter of double digit annualized loan growth   – 12% year to date growth exceeds 2015 year end goal of 10-12%   – Annualized organic loan growth of 28% in 3Q 2015   – Average earning assets grew at a 14% annualized rate in 3Q   – Loans to deposits ratio grew to 80% vs year end goal of 80-85%       Asset growth          Core deposit growth ahead of plan in 3Q   – Deposits grew at 9% annualized rate in 3Q   – Low cost core deposits grew at 5% annual rate in 3Q   – Noninterest-bearing deposits grew $7.9 million, an annualized growth rate   of 9%, on commercial relationship acquisition and treasury management   products             Core deposit growth          Actively engaged in evaluating opportunities that fit our strategic and financial   criteria – primarily in NC, SC and VA          Explore M&A opportunities          NIE reduced 13% from 3Q 2014, ahead of plan   – PCNR NIE to average assets ratio was 2.92%, ahead of 3.10% 2015 goal   – Run rate includes investments in Raleigh and Charleston LPOs, mortgage   origination personnel and CertusBank branch acquisition    Monetize expense efforts         Progress on 2015 Goals    Core noninterest income grew 19% year over year, beating for the first time this   quarter our 2015 goal of 10-12% growth   – Mortgage and SBA loan income up 86% from 3Q 2014 on 44% increase in   origination volume in Mortgage   – SBA business has a strong pipeline and we expect acceleration in the 4th   quarter and 2016   – Service charges on deposits up 10% from 3Q 2014 as a result of several   fee initiatives and increased overdraft activity levels    Enhanced fee income         5
 Net Interest Income Growth    Net interest income increased   $1.5 million (9%) from 3Q 2014,   and $0.5 million from 2Q 2015     Earning assets levels and mix   improved year over year,   offsetting yield declines   – Average earning assets   grew $175.7 million (9%)   – Average loans increased   $193.5 million (15%)    Net interest margin was 3.37%,   down 1 bp from 3Q 2014, and 6   bps from 2Q 2015   – Loan yields fell 12 bps from   a year ago from lower rates   and fixed/variable mix, and   7 bps from PI loan accretion   – Securities yield fell 17 basis   points from 3Q 14 to 2.40%   on mortgage prepayments   – Non cash accretion on PI   loans was $0.5 million in 3Q   2015, $0.8 million in 3Q   2014, and $0.6 million in 2Q   2015    Cost of interest bearing   deposits fell 2 bps to 46 bps   and cost of all deposits fell 2   bps to 37 bps from 3Q 2014   6   0.0%   1.0%   2.0%   3.0%   4.0%   5.0%   3Q 2014 4Q 2014 1Q 2015 2Q 2015 3Q 2015   Yield on Loans Yield on Investment Securities   0.0%   1.0%   2.0%   3.0%   4.0%   3Q 2014 4Q 2014 1Q 2015 2Q 2015 3Q 2015   Cost of Interest Bearing Deposits N t Interest Margin   Quarterly Loan and Securities YieldsQuarterly Margin and Cost of Deposits   Quarterly Results   Average Balances, Yields and Net Interest Margin   Dollars in thousands 3Q 2014 4Q 2014 1Q 2015 2Q 2015 3Q 2015   Average loans (includes loans held for sale) 1,289,718$  1,340,874$   1,378,834$  1,410,808$  1,483,171$       Average yield 4.58% 4.70% 4.67% 4.56% 4.39%   Average loans and securities 1,814,160    1,839,709     1,886,599     1,934,020    2,015,711      Average earning assets 1,862,479    1,900,647     1,922,497     1,967,230    2,038,206         Average yield 3.92% 4.03% 4.07% 3.94% 3.86%   Average interest bearing liabilities 1,577,399    1,600,583     1,597,737     1,612,211    1,676,075         Average rate 0.64% 0.63% 0.63% 0.62% 0.60%      Average cost of interest bearing deposits 0.48% 0.47% 0.48% 0.48% 0.46%   Net interest margin 3.38% 3.49% 3.54% 3.43% 3.37%   Net interest rate spread 3.28% 3.39% 3.44% 3.32% 3.27%   Net interest income 15,848$        16,721$        16,774$        16,827$        17,310$
 Noninterest Income Growth    Core noninterest income was   $4.7 million in 3Q 2015   – Increased 19%, or $0.7   million, from 3Q 2014   – Excludes $0.3 million   bargain purchase gain    Mortgage and SBA income   increased $0.2 million, or 86%,   from 3Q 2014 on 58%   increase in loans originated for   sale   – Total origination volume of   $58.5 million, up 44% from   3Q 2014    Service charge and other fee   income increased $0.3 million   from 3Q 2014 on several fee   initiatives and overdraft   protection activity increases    Cardholder and merchant   services income increased 6%   from 3Q 2014, and was 3%   higher than 2Q 2015    Wealth business fee income   rose 9% from 3Q 2014, as a   result of increased assets   under management, increased   investment sales activity and   improved fee splits    7   1,946 2,040 1,872 1,950   2,293   205   241 465 314   381   1,183   1,298 1,125 1,218   1,253   344   394   322 403   376   273   350   250   268   381   $3,951   $4,323   $4,034   $4,153   $4,684   $0   $1,000   $2,000   $3,000   $4,000   $5,000   3Q 2014 4Q 2014 1Q 2015 2Q 2015 3Q 2015   Service charges and other fee income Mortgage loan income   Cardholder and merchant services income Trust and investment services   Bank-owned life insurance Total   PCNR   1    Noninterest Income Trend   1 Non-GAAP measure.  See table below for reconciliation to GAAP presentation.   Quarterly Results   Noninterest Income   Dollars in thousands 3Q 2014 4Q 2014 1Q 2015 2Q 2015 3Q 2015   Total noninterest income 3,985$       4,543$        4,034$        4,153$       5,000$         Less:       Securities gains, net 34              220            -                -                -                      Bargain purchase gain -                -                 -                -                316              Core noninterest income 1 3,951$       4,323$        4,034$        4,153$       4,684$                1  Non-GAAP measure.  Reconciliation to GAAP presentation included in this table.
 568 568 571   553 551   520   540   560   580   3Q 2014 4Q 2014 1Q 2015 2Q 2015 3Q 2015   $11,000   $13,000   $15,000   $17,000   $19,000   3Q 2014 4  2014 1  2015 2Q 2015 3Q 2015   Noninterest Expense Growth Well Controlled    NIE fell by $2.6 million (13%)   from 3Q 2014 and by $0.4   million (2%) from 2Q 2015   – Combined OREO and   collection expenses were $0.3   million higher linked quarter   – Personnel expenses fell $2.6   million, including $2.0 million   relating to CEO departure in   3Q 2014    PCNR NIE fell $0.8 million (5%)   from 3Q 2014 and $0.1 million   from 2Q 2015   – Reduced branch costs and   retiree benefits changes,   offset by CertusBank branch   expenses, commercial and   mortgage origination   personnel investments and   commissions    Average FTE was 551 in Q3,   down 17 (3%) from a year ago   – Includes Q3 2015 hiring of 1   mortgage originator in   Greensboro and 2 commercial   personnel in Charleston, SC   LPO       8   5 Quarter PCNR NIE Trend   15 Quarter FTE Trend   Quarterly Results   Noninterest Expense   Dollars in thousands 3Q 2014 4Q 2014 1Q 2015 2Q 2015 3Q 2015   Personnel expense 12,616$        10,717$        10,594$        10,462$        9,984$            Net occupancy expense 1,521            1,526             1,469             1,211            1,591              Furniture, equipment and data processing expense 2,208            2,078             1,989             1,875            2,113              Professional fees 699                671                539                528                572                  Stationery, printing and supplies 149                162                176                141                144                  Advertising and marketing 142                274                186                134                114                  Other real estate owned expense (recovery) (29)                 572                360                506                556                  Credit/debit card expense 520                568                543                498                558                  FDIC insurance 412                422                453                456                413                  Loan collection expense 198                170                300                313                (76)                   Core deposit intangible amortization 352                351                352                352                370                  Other expense 1,227            2,935             1,047             1,351            1,088              Total noninterest expense 20,015$        20,446$        18,008$        17,827$        17,427$          Core noninterest expense   1   17,955$        18,880$        18,008$        17,827$        17,427$          PCNR noninterest expense   1   17,786$        18,138$        17,348$        17,008$        16,947$          Average Quarterly FTE Employees 568                568                571                553                551                        1  Non-GAAP measure. See appendix for reconciliation to GAAP presentation.
 3% 4% 2% 1% 1%   25% 22% 23% 23% 22%   64%   60% 62% 62% 64%   7%   6% 7% 6% 6%   0%   7% 6% 6% 6%   0%   10%   20%   30%   40%   50%   60%   70%   80%   90%   100%   3Q 2014 4Q 2014 1Q 2015 2Q 2015 3Q 2015   Cash and bank balances Investment securities Loans Other assets Deferred tax asset, net   Balance Sheet Growth Continues    Total assets increased $59.9   million in Q3, a 10% annualized   growth rate    – Loans held for investment   increased $76.6 million   – Average loans were 73% of   average earning assets, up   from 69% a year ago    Investment portfolio decreased   by $9.4 million during the   quarter     Intangible assets reflect an   additional $0.3 million Core   Deposit Intangible recorded in   3Q 2015 from the CertusBank   branch acquisition    Borrowings increased $14.9   million during the quarter,   predominantly short term FHLB   borrowings         9   Quarterly Balance Sheet Composition   Quarterly Balance Sheet   Dollars in thousands 3Q 2014 4Q 2014 1Q 2015 2Q 2015 3Q 2015   Cash and interest bearing bank balances 60,080$        95,882$        47,933$        30,986$        28,006$          Investment securities 507,980        492,501        508,401        538,015        528,599          Loans and loans held for sale, net 1,298,860    1,340,239     1,384,474     1,430,631    1,509,356      Other real estate owned 20,289          20,411           21,040          19,955          19,166            Intangible assets 10,191          9,886             9,705             9,598            9,638              Deferred tax asset, net 5,564            146,432        144,223        145,229        139,917          Other assets 112,829        110,163        116,158        118,973        118,612             Total assets 2,015,793$  2,215,514$   2,231,934$  2,293,387$  2,353,294$    Deposits 1,758,930$  1,794,420$   1,807,472$  1,855,638$  1,896,879$    Borrowings 147,484        139,350        138,118        154,211        169,095          Other liabilities 14,889          14,828           15,392          13,752          12,680            Equity 94,490          266,916        270,952        269,786        274,640             Total liabilities and equity 2,015,793$  2,215,514$   2,231,934$  2,293,387$  2,353,294$
 Strong Loan Growth in Key Core Markets   10    Four metro markets represent   73% of our organic loan   portfolio    Experienced and growing   origination teams in key   growth markets driving strong   year over year loan portfolio   growth rates   – Charlotte – 36% growth   – Raleigh – 124% growth   – Greensboro/Winston-   Salem – 5% growth   – Strong growth (14%) also   continues in non-metro   markets from share gains    Full range of lending products   – Commercial, SBA,   Treasury, Consumer, Auto,   Mortgage, Wealth   – Commercial Real Estate   including Builder Finance      Organic Loan Portfolio and YoY Growth Rates by MSA   36% Growth   124% Growth   2% Growth   5% Growth   14% Growth   $0   $50,000   $100,000   $150,000   $200,000   $250,000   $300,000   $350,000   $400,000   $450,000   $500,000   Charlotte MSA Raleigh / Durham MSA Hickory MSA Greensboro / WS MSA Non Metro MSAs
 Accelerated Loan Growth Continues    Total loans held for investment   grew $76.6 million in 3Q 2015;    annualized growth rate of 21%   – 6th consecutive quarter of   double digit annualized   growth rate   – All lines of business grew   loans during the quarter    Organic loans (excluding   purchased residential loans)   grew $86.9 million; 28%   annualized growth rate    Total pass rated loans grew by   $79.8 million; annualized   growth rate of 23%    Non-pass rated loans fell by   $3.2 million, or 4%    Loan portfolio composition   balanced between consumer   and commercial exposure   11   1,318,117 1,357,788   1,395,911   1,445,853   1,522,455   0%   8%   16%   24%   32%   $   $400,000   $800,000   $1,200,000   $1,600,000   3Q 2014 4Q 2014 1Q 2015 2Q 2015 3Q 2015   Commercial RE Construction Consumer/HELOC   1-4 Family Residential Purchased Residential Non pass loans   Total Loans Organic Growth Rate Annualized   Quarterly Loan Portfolio Mix   Loan Portfolio Growth Rates By Category   Dollars in thousands 3Q 2014 2Q 2015 3Q 2015 $ % Annualized   Commercial and Commercial Real Estate 440,942$    547,122$    601,379$    54,256$      10% 40%   RE Construction 65,298       64,851        79,145        14,294       22% 88%   Consumer/HELOC 207,038      236,870      245,292      8,422         4% 14%   1-4 Family Residential 281,089      328,901      342,043      13,142       4% 16%   Pass Rated Organic Loans 994,368      1,177,745   1,267,859   90,115       8% 31%   Purchased Resi Mortgage Loans 214,598      189,758      179,464      (10,294)      (5%) (22%)   Non Pass Rated Organic Loans 109,152      78,350        75,132        (3,219)        (4%) (16%)   Total Loans 1,318,117$ 1,445,853$  1,522,455$ 76,602$      5% 21%   Total Organic Loans 1,103,519$ 1,256,095$  1,342,991$ 86,896$      7% 28%   Total Pass Rated Loans 1,208,965   1,367,503   1,447,323   79,821       6% 23%   3Q Growth
 18% 18% 19% 19% 19%   20% 20% 20% 20% 20%   5% 5% 5% 5% 5%   24% 24% 24% 23% 22%   17% 16% 15% 16% 15%   14%   15% 15% 15% 16%   2% 2% 2% 2% 3%   3Q 2014 4Q 2014 1Q 2015 2Q 2015 3Q 2015   Noninterest-bearing demand Interest-bearing demand Savings   Money market Time deposits < $100,000 Time deposits > $100,000   Brokered   Strong Core Deposit Growth    Deposits increased by $41.2   million, a 9% annualized   growth rate, in 3Q   – Deposits have increased   $102.5 million, or 6%, year to   date    Core deposits (total deposits   less brokered and time   deposits > $100,000) have   grown $50.6 million, or 3%,   year to date   – Core deposits were 81% in   3Q 2015    Low cost core deposits   (excludes all brokered and   time deposits) grew at an   annualized rate of 5% in 3Q    Noninterest-bearing deposits   increased $7.9 million in 3Q, a   9% annualized growth rate    – Driven by commercial   relationship acquisition and   improved treasury   management product set    Average deposits per branch   has grown 20% since 3Q 2014   to $42.2 million per branch   12   Co   re      N   o   n      Co   re      Quarterly Deposit Mix   Quarterly Deposits   Dollars in thousands 3Q 2014 4Q 2014 1Q 2015 2Q 2015 3Q 2015   Noninterest-bearing demand 317,981$     323,776$      337,417$      352,033$     359,969$       Interest-bearing demand 349,517 358,162 364,196 363,998 376,962   Savings 85,519 86,686 89,919 92,057 92,415   Money market 423,967 437,484 426,606 433,648 426,464   Brokered 37,673 38,378 37,433 37,054 55,764   Time deposits < $100,000 294,774 285,989 277,928 290,516 286,853   Time deposits > $100,000 249,499 263,945 273,973 286,332 298,452        Total deposits 1,758,930$  1,794,420$   1,807,472$  1,855,638$  1,896,879$    Total Time Deposits 581,946$     588,312$      589,334$      613,902$     641,069$       Low Cost Core Deposits 1,176,984    1,206,108     1,218,138     1,241,736    1,255,810      Core Deposits 1,471,758    1,492,097     1,496,066     1,532,252    1,542,663      Low Cost Core Mix 67% 67% 67% 67% 66%
 $28   $25   $20 $20 $18   $20   $20   $21   $20   $19   $0   $10   $20   $30   $40   $50   $60   3Q 2014 4Q 2014 1Q 2015 2Q 2015 3Q 2015   M   ill   io   ns    o   f   D   ol   la   rs   Nonperforming loans OREO and foreclosed assets   $36 $40 $35   $26 $25   $73 $63   $55   $53 $50   $0   $25   $50   $75   $100   $125   $150   $175   $200   3Q 2014 4  2014 1  2015 2  3    M   ill   io   ns    o   f   D   ol   la   rs   Special Menti  Loans Classified Loa s   Credit Risk Well Managed   13   31% decline   23% decline    Continued asset quality   improvement in 3Q 2015   – Classified loans decreased   by $2.7 million (5%) in 3Q   – Nonperforming loans   reduced to 1.2% of total   loans, from 2.2% a year   ago   – NPA’s reduced to 1.6% of   assets    The ALL has been reduced to   $17.2 million from $18.0 million   at end of 2Q, reflecting the    improved asset quality and   continued low annualized   charge-off rates    ALL is 1.13% of loans held for   investment    $0.7 million in net charge-offs   in 3Q 2015   – C&I and construction- $0.3   million net recovery   – Consumer & 1-4 residential   mortgage - $1.0 million net   charge-off   – 2015 YTD annualized net   charge-off of 11 bps    Classified Asset Ratio   improved to 34%   Quarterly Asset Quality Trends   Criticized LoansNonperforming Assets   Quarterly Asset Quality   Dollars in thousands 3Q 2014 4Q 2014 1Q 2015 2Q 2015 3Q 2015   Allowance for loan losses (ALL) 21,525$        20,345$        19,008$        17,989$        17,188$          Nonperforming loans to total loans 2.2% 1.9% 1.5% 1.4% 1.2%   Nonperforming assets to total assets 2.4% 2.1% 1.9% 1.7% 1.6%   Annualized net charge-offs (recoveries) to avg. loans 0.24% (0.04%) 0.06% 0.07% 0.20%   Allowance for loan loss to total loans 1.63% 1.50% 1.36% 1.24% 1.13%   Classified assets to Tier 1 + ALL 62% 41% 39% 36% 34%
 Nonperforming Assets and Allowance   14    Originated loans of $1.41   billion with ALL of $13.7   million (0.97%) at 3Q 2015    Granite PC loans of $20.7   million with ALL of $0.3   million (1.41%) at 3Q 2015    Granite PI loans of $92.7   million with $3.2 million ALL   (3.44%) at 3Q 2015    Non-performing assets fell   by $2.0 million (5%) during   the quarter, and $11.2   million (23%) since 3Q 2014    Nonperforming loans fell by   $1.2 million (6%) in 3Q, and   by $10.1 million (35%) since   3Q 2014     OREO and other foreclosed   assets decreased by $0.8   million (4%) in 3Q and   decreased by $1.1 million   (6%) since 3Q 2014    At the end of 3Q, $2.7million   of OREO (14%) was under   contract for sale      Nonperforming Loans and OREO   Dollars in thousands 3Q 2014 4Q 2014 1Q 2015 2Q 2015 3Q 2015   Commercial and agricultural 351$             608$              515$              469$             429$               Real estate - construction 2,878            2,307             1,022             799                488                  Real estate - mortgage:       1-4 family residential 8,777            8,637             8,856             9,383            9,370                  Commercial 16,383          13,386           9,410             8,379            7,575              Consumer 94                  355                452                553                535                      Total nonperforming loans 28,483          25,293           20,255          19,583          18,396            OREO and other foreclosed assets 20,289          20,411           21,040          19,955          19,166                Total nonperforming assets 48,772$        45,704$        41,295$        39,538$        37,562$          NPL / Total Loans Held For Investment 2.2% 1.9% 1.5% 1.4% 1.2%   Quarterly Loan Portfolio and ALL   3Q 2014 4Q 2014 1Q 2015 2Q 2015 3Q 2015   Originated loans 1,160,525$ 1,208,998$  1,264,212$ 1,322,146$ 1,409,030$   Granite purchased impaired (PI) loans 130,665      122,842      109,262      102,114      92,677         Granite purchased contractual (PC) loans 26,927       25,948        22,437        21,593       20,749         Total loans 1,318,117$ 1,357,788$  1,395,911$ 1,445,853$ 1,522,455$   Originated loan ALL (17,184)$     (16,729)$     (15,390)$     (14,463)$     (13,705)$       Granite PI loan ALL (3,923)        (3,237)         (3,194)        (3,181)        (3,190)          Granite PC l an ALL (418)           (379)           (424)           (345)           (293)             T tal ALL (21,525) (20,345) (19,008) (17,98 ) (17,188)   Originated loan ALL / Originated loans (1.48%) (1.38%) (1.22%) (1.09%) (0.97%)   Granite PI ALL  / Gr nite PI loans (3.00%) (2.64%) (2.92%) (3.12%) (3.44%)   Granite PC ALL / Granite PC loans ( .55%) ( .46%) (1.89%) (1.60%) (1.41%)   Total ALL 1.63% 1.50% 1.36% 1.24% 1.13%
 Appendix   15
 Non-GAAP Measures    Reconciliation of non-   GAAP measures to the   most directly comparable   GAAP measure   16   Reconciliation of Non-GAAP Measures   Dollars in thousands 3Q 2014 4Q 2014 1Q 2015 2Q 2015 3Q 2015   Net income before tax 1,497$       2,141$        3,937$        3,941$       4,947$         Less nonrecurring items:   Gain on sales of securities 34              220            -                -                -                  -                (1,566)         -                -                -                  CEO severance expense (2,060)        -                 -                -                -                  Bargain purchase gain -                -                 -                -                316              Total nonrecurring items (2,026)        (1,346)         -                -                316              3,523$       3,487$        3,937$        3,941$       4,631$         Income tax expense (276)$         (142,475)$   1,418$        1,418$       3,430$         Less:   Tax effect of nonrecurring items 1 (669)           (444)           -                -                114              DTA valuation allowance release (276)           (142,475)     -                -                (738)             DTA revaluation - state tax rate reduction -                -                 -                -                2,345           Income tax at effective rate 2 (494)           (707)           -                -                -                  1,163         1,151          1,418         1,418         1,709           2,360$       2,336$        2,519$        2,523$       2,922$         1  Tax effected at an income tax rate of 33% in 2014 and 36% in 2015   2  Effective income tax expense at 33% in 2014.  During 2014 income tax expense w as offset by DTA valuation allow ance   Branch closure/restructuring expense (recovery)   Core net income before tax (Non-GAAP)   Core income tax expense (Non-GAAP)   Core net income (Non-GAAP)
 Non-GAAP Measures    Reconciliation of non-   GAAP measures to the   most directly comparable   GAAP measure   17   Reconciliation of Non-GAAP Measures   Dollars in thousands 3Q 2014 4Q 2014 1Q 2015 2Q 2015 3Q 2015   Book Value (Shareholders' equity) 94,490$      266,916$    270,952$    269,786$    274,640$      Less:       Goodwill (4,205)        (4,205)         (4,205)        (4,205)        (4,205)              Core deposit and other intangibles (5,986)        (5,681)         (5,500)        (5,393)        (5,433)          84,299$      257,030$    261,247$    260,188$    265,002$      Tangible book value (Tangible       shareholders' equity) (Non-GAAP)   Reconciliation of Non-GAAP Measures   Dollars in thousands 3Q 2014 4Q 2014 1Q 2015 2Q 2015 3Q 2015   Total noninterest expense 20,015$      20,446$      18,008$      17,827$      17,427$        Less nonrecurring:   Branch closure and restructuring expenses -                1,566          -                -                -                  CEO severance expense 2,060         -                 -                -                -                  Core PCNR noninterest expense (Non-GAAP) 17,955$      18,880$      18,008$      17,827$      17,427$        Less credit related items:   Other real estate ow ed expense (29)             572            360            506            556              L an collection expense 98           70           300           313           (76)              PCNR noninterest expense (Non-GAAP) 17,786$      18,138$      17,348$      17,008$      16,947$        Reconciliation of Non-GAAP Measures   Dollars in thousands 3Q 2014 4Q 2014 1Q 2015 2Q 2015 3Q 2015   2,015,7 3 2, 15,514  2, 3 ,934 2,293,387$ 2,353,294$   Less:       Goodwill (4,205)        (4,205)         (4,205)        (4,205)        (4,205)              Core deposit and other intangibles (5,986)        (5,681)         (5,500)        (5,393)        (5,433)          2,005,602$ 2,205,628$  2,222,229$ 2,283,789$ 2,343,656$   Total Assets   Tangible Assets (Non-GAAP)