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|                                                   |
|---------------------------------------------------|
|                                                   |  |
| ABOUT THIS PROSPECTUS                             | 3 |
|                                              |   |
| WHERE YOU CAN FIND MORE INFORMATION               | 3 |
|                                              |   |
| INFORMATION INCORPORATED BY REFERENCE             | 3 |
|                                              |   |
| SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS | 4 |
|                                              |   |
| PROSPECTUS SUMMARY                                | 5 |
|                                              |   |
| USE OF PROCEEDS                                   | 6 |
|                                              |   |
| RISK FACTORS                                      | 6 |
|                                              |   |
| PLAN OF DISTRIBUTION                              | 6 |
|                                              |   |
| REGULATORY CONSIDERATIONS                         | 8 |
|                                              |   |
| SELLING SHAREHOLDERS                              | 9 |
|                                              |   |
| DESCRIPTION OF THE COMMON STOCK                   | 13 |
|                                              |   |
| VALIDITY OF THE SECURITIES                        | 15 |
|                                              |   |
| EXPERTS                                           | 15 |
|                                              |   |

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|         |                                                                                                                                            |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------|
| • | the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2014, filed with the SEC on March 6, 2015; |

|         |                                                                                                                               |
|---------|-------------------------------------------------------------------------------------------------------------------------------|
| • | the Company's Annual Report on Form 10-K/A for the fiscal year ended December 31, 2014, filed with the SEC on March 13, 2015; |

|         |                                                                     |
|---------|---------------------------------------------------------------------|
| • | the Company's Current Report on Form 8-K, dated March 31, 2015; 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. |

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|   |
|---|
|   |  |
| l | our ability to continue to grow our business internally and through acquisition and successful integration of any acquired entities while controlling our costs; |
| l | having the financial and management resources in the amount, at the times and on the terms required to support our future business; |
| l | the accuracy of our assumptions and judgments about the collectability of our loan portfolio, including the creditworthiness of our borrowers and the value of real estate and other assets, which could affect repayment of such borrowers' outstanding loans; |
| l | material changes in the quality of our loan portfolio and the resulting credit related losses and expenses; |
| l | the accuracy of our assumptions relating to the establishment of our allowance for loan losses; |
| l | adverse changes in the value of real estate in our market areas; |
| l | adverse changes in the housing markets, or an increase in interest rates, either of which may reduce demand for mortgages; |
| l | changes in interest rates, spreads on earning assets and interest-bearing liabilities, the shape of the yield curve and interest rate sensitivity |
| l | a prolonged period of low interest rates; |
| l | declines in the value of our other real estate owned; |
| l | the accuracy of our assumptions relating to our ability to use net operating loss carryforwards to reduce future tax payments; |
| l | the loss of one or more members of executive management and our ability to recruit and retain key lenders and other employees; |
| l | less favorable general economic conditions, either nationally or regionally; resulting in, among other things, a reduced demand for our credit or other services and thus reduced origination volume; |
| l | increased competitive pressures in the banking industry or in our markets affecting pricing or product and service offerings; |
| l | our ability to respond to rapid technological developments and changes; |
| l | disruptions in or manipulations of our operating systems; |
| l | information security risks impacting us or our vendors, including “hacking” and “identity theft,” that could adversely affect our business and our reputation; |
| l | the loss or disruption of the services provided by one or more of our critical vendors; |
| l | our ability to achieve our targeted reductions in costs and expenses; |
| l | the impact of laws and regulatory requirements, including the Basel III capital rules, the Currency and Foreign Transactions Reporting Act of 1970 requirements, and regulations required by the Dodd-Frank Wall Street Reform and Consumer Protection Act; |

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|   |
|---|
|   |  |
| l | changes in trade, monetary and fiscal policies and laws, including interest rate policies of the Federal Reserve Board; |
| l | changes in accounting principles and standards; and |
| l | our success at managing the risks involved in the foregoing. |

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|              |
|--------------|
|              |  |  |  |
|         | — |   | directly by the Selling Shareholders and their successors, which include their donees, pledgees or transferees or their successors-in-interest, or |
|    | — |   | through underwriters, broker-dealers or agents, who may receive compensation in the form of discounts, commissions or agent’s commissions from the Selling Shareholders or the purchasers of our Common Stock. These discounts, concessions or commissions may be in excess of those customary in the types of transactions involved, provided that in compliance with Financial Industry Regulatory Authority guidelines the maximum compensation to any underwriter, broker-dealer or agent in connection with any sale of our Common Stock by a Selling Shareholder pursuant to this prospectus will not exceed 8% of the total offering price of our Common Stock by the Selling Shareholder. |

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|              |
|--------------|
|              |  |  |  |
|         | — |   | fixed prices; |
|    | — |   | prevailing market prices at the time of sale; |
|    | — |   | prices related to such prevailing market prices; |
|    | — |   | varying prices determined at the time of sale; or |
|    | — |   | negotiated prices. |

|              |
|--------------|
|              |  |  |  |
|         | — |   | on Nasdaq or any other national securities exchange or quotation on which our Common Stock may be listed or quoted at the time of the sale; |
|    | — |   | in the over-the-counter market; |
|    | — |   | in transactions other than on such exchanges or services or in the over-the-counter market; |
|    | — |   | through the writing of options, whether the options or such other derivative securities are listed on an options exchange or otherwise; |
|    | — |   | in a public auction; |
|    | — |   | through the settlement of short sales; or |
|    | — |   | through any combination of the foregoing. |

|              |
|--------------|
|              |  |  |  |
|         | — |   | engage in short sales of our Common Stock in the course of hedging their positions; |
|    | — |   | sell our Common Stock short and deliver our Common Stock to close out short positions; |
|    | — |   | loan or pledge our Common Stock to broker-dealers or other financial institutions that in turn may sell our Common Stock; |
|    | — |   | enter into option or other transactions with broker-dealers or other financial institutions that require the delivery to the broker-dealer or other financial institution of our Common Stock, which the broker-dealer or other financial institution may resell under the prospectus; or |
|    | — |   | enter into transactions in which a broker-dealer makes purchases as a principal for resale for its own account or through other types of transactions. |

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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) |
| Austin A. Adams (3)130 Sharon Township Lane, Suite 520Charlotte, NC 28211                                                       | 10,537 |  | * |  | 9,375 |  | 1,162 |  | * |  |
| Carlyle Financial Services Harbor, L.P. (4)c/o The Carlyle Group1001 Pennsylvania Avenue, N.W., Suite 220SWashington D.C. 20004 | 5,772,376 |  | 23.82 | % | 5,772,376 |  | — |  | — |  |
| CCF FNBN, LLC (5)Booth & Co./FBO CCF-FNBN, LLC1430 Wynkoop Street, Suite 200Denver, CO 80202                                | 553,449 |  | 2.28 | % | 53,449 |  | 500,000 |  | 2.06 | % |
| Cohesive Capital Partners, L.P. (6)650 Fifth Avenue, 31st FloorNew York, NY 10019                                               | 820,483 |  | 3.39 | % | 142,045 |  | 678,438 |  | 2.80 | % |
| Mark W. Erwin501 E. Morehead Street, Suite 3Charlotte, NC 28202                                                                 | 4,401 |  | * |  | 751 |  | 3,650 |  | * |  |
| Fisher Lynch Co-Investment Partnership II, L.P. (7)2929 Campus Drive, Suite 420San Mateo, CA 94403                              | 1,194,930 |  | 4.93 | % | 143,367 |  | 1,051,563 |  | 4.34 | % |
| David C. Lavoie (8)17635 Meadow Bottom RoadCharlotte, NC28277                                                                   | 6,250 |  | * |  | 6,250 |  | — |  | — |  |
| Jerry R. Licari (9)215 Pine Street Suite 2416Charlotte, NC 28203                                                                | 29,927 |  | * |  | 9,375 |  | 20,552 |  | * |  |
| J. Chandler Martin (10)CommunityOne Bank, N.A.1017 E. Morehead Street, Suite 200Charlotte, NC  28204                            | 27,928 |  | * |  | 9,375 |  | 18,553 |  | * |  |

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|                                                                                                                                           |
|-------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                           |  |  |  |  |  |  |  |  |  |  |
| Angus M. McBryde, III (11)CommunityOne Bancorp1017 E. Morehead Street, Suite 200Charlotte, NC 28204                                       | 46,143 |  | * |  | 9,376 |  | 36,767 |  | * |  |
| McKenney Investments, LLC (12)831 S. Main StreetLowell, NC 28098                                                                          | 9,375 |  | * |  | 9,375 |  | — |  | — |  |
| Gregory P. Murphy (13)CommunityOne Bancorp1017 E. Morehead Street, Suite 200Charlotte, NC 28204                                           | 56,212 |  | * |  | 18,750 |  | 37,462 |  | * |  |
| R. Reynolds Neely, Jr. (14)703 Sunset AvenueAsheboro, NC 27203                                                                            | 843 |  | * |  | 94 |  | 749 |  | * |  |
| Newbury Equity Partners II, L.P. (15)c/o Newbury Partners LLC100 First Stamford Place, 2nd FloorStamford, CT 06902                        | 731,250 |  | 3.02 | % | 200,000 |  | 531,250 |  | 2.19 | % |
| David L. Nielsen (16)CommunityOne Bancorp1017 E. Morehead Street, Suite 200Charlotte, NC 28204                                       | 66,380 |  | * |  | 23,438 |  | 44,942 |  | * |  |
| Oak Hill Capital Partners III, L.P. (17) c/o Oak Hill Capital Management, LLC65 East 55th Street, 32nd FloorNew York, NY 11022            | 5,589,136 |  | 23.06 | % | 5,589,136 |  | — |  | — |  |
| Oak Hill Capital Management Partners III, L.P. (17) c/o Oak Hill Capital Management, LLC65 East 55th Street, 32nd FloorNew York, NY 11022 | 183,561 |  | * |  | 183,561 |  | — |  | — |  |
| Pantheon Global Co-Investment Opportunities Fund, LP (18)600 Montgomery Street, 23rd FloorSan Francisco, CA 94111                    | 1,194,930 |  | 4.93 | % | 143,367 |  | 1,051,563 |  | 4.34 | % |
| Robert L. Reid (19)CommunityOne Bancorp1017 E. Morehead Street, Suite 200Charlotte, NC 28204                                              | 61,314 |  | * |  | 24,172 |  | 37,142 |  | * |  |
| Louis A. Schmitt, Jr. (20)2122 Roswell AvenueCharlotte, NC 28207                                                                          | 17,368 |  | * |  | 9,375 |  | 7,993 |  | * |  |
| Brian E. Simpson (21)4432 Fox Brook LaneCharlotte, NC 28211                                                                               | 38,169 |  | * |  | 24,173 |  | 13,996 |  | * |  |
| Boyd C. Wilson, Jr. (22)800 Golfview ParkLenoir, NC 28645                                                                            | 9,526 |  | * |  | 7,231 |  | 2,295 |  | * |  |

|     |                                                                                                                                                                                                                                                                                                                                                |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (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 Common Shares over which such person has voting or investment power, and any Common Shares that such person has the right to acquire beneficial ownership of within sixty (60) days of April 13, 2015. |

|     |                                                                                                                                                                                                                                                                                                               |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (2) | In computing the percentage of shares beneficially owned by each person named above, any shares which the person has a right to acquire within sixty (60) days after April 13, 2015 are deemed outstanding for the purpose of computing the percentage of our Common Stock beneficially owned by that person. |

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|     |                                                                                                                                               |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------|
| (3) | Austin A. Adams previously served as a director on the Board of Directors of the Company and the Bank from October 21, 2011 to June 25, 2014. |

|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (4) | Based on information reported on Amendment No. 2 to the Schedule 13D filed with the SEC on December 30, 2014. Carlyle Group Management L.L.C. is the general partner of The Carlyle Group L.P., which is a publicly traded entity listed on Nasdaq. The Carlyle Group L.P. is the managing member of Carlyle Holdings II GP, L.L.C., which is the general partner of Carlyle Holdings II L.P., which is the general partner of TC Group Cayman Investment Holdings, L.P., which is the general partner of TC Group Cayman Investment Holdings Sub L.P., which is the sole shareholder of Carlyle Financial Services, Ltd., which is the general partner of TCG Financial Services, L.P., which is the general partner of Carlyle Financial Services Harbor, L.P. The shares of our Common Stock are held directly by Carlyle Financial Services Harbor, L.P. William E. Conway., Jr., Daniel A. D’Aniello, David M. Rubenstein and Glenn Youngkin are the directors of Carlyle Financial Services, Ltd. and, in such capacity, may be deemed to share beneficial ownership of the shares of our Common Stock beneficially owned by Carlyle Financial Services, Ltd. These individuals disclaim any such beneficial ownership. Carlyle Financial Services Harbor L.P. has indicated that it may be deemed to be an affiliate of a broker-dealer.  Carlyle Financial Services Harbor L.P. has represented that it acquired its shares in the ordinary course of business and, at the time of the acquisition of the shares, had no agreements or understanding, directly or indirectly, with any person to distribute the shares. |

|     |                                                                                                                                                                                                                                                                                                                                                                                                            |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (5) | John P. Fitzgerald, as managing member of Seneca Equity Partners, LLC, the general partner of Cheyenne Capital Fund, L.P., the investment manager of CCF-FNBN, LLC makes investment and voting decisions with respect to the shares held by CCF-FNBN, LLC. John P. Fitzgerald disclaims beneficial ownership of the shares by CCF-FNBN, LLC, except to the extent of any pecuniary interest in the shares. |

|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (6) | John R. Barber, as (1) managing member of Cohesive GP, LLC, the general partner of Cohesive Capital (GP), L.P., the general partner of Cohesive Capital Partners, L.P. and as (2) managing member of Cohesive Capital Management (GP), LLC, the general partner of Cohesive Capital Management, L.P., the investment manager of Cohesive Capital Partners, L.P., makes investment and voting decisions with respect to shares held by Cohesive Capital Partners, L.P. John R. Barber disclaims beneficial ownership of the shares held by Cohesive Capital Partners, L.P., except to the extent of any pecuniary interest in the shares. |

|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (7) | Fisher Lynch Co-Investment GP II, L.P. is the general partner of Fisher Lynch Co-Investment Partnership II, L.P. Marshall Bartlett, Brett Fisher, Leon Kuan, Anthony Limberis, Linda Lynch and Marcus Wood are members of the Investment Committee of the ultimate parent entity of Fisher Lynch Co-Investment GP II, L.P. and may be deemed to share voting and dispositive power over the shares held by Fisher Lynch Co-Investment Partnership II, L.P. Marshall Bartlett, Brett Fisher, Leon Kuan, Anthony Limberis, Linda Lynch and Marcus Wood disclaim beneficial ownership of shares held by Fisher Lynch Co-Investment Partnership II, L.P. except to the extent of their respective pecuniary interests therein. Fisher Lynch Co-Investment GP II, L.P. has indicated that it is an affiliate of a broker-dealer. Fisher Lynch Co-Investment GP II, L.P. has represented that it acquired its shares in the ordinary course of business and, at the time of the acquisition of the shares, had no agreements or understandings, directly or indirectly, with any person to distribute the shares. |

|     |                                                                                                                                        |
|-----|----------------------------------------------------------------------------------------------------------------------------------------|
| (8) | David C. Lavoie served as Executive Vice President Chief Risk Officer of the Company and the Bank from December 2010 to December 2012. |

|     |                                                                                                           |
|-----|-----------------------------------------------------------------------------------------------------------|
| (9) | Jerry R. Licari is currently serving as a director on the Board of Directors of the Company and the Bank. |

|      |                                                                                                                            |
|------|----------------------------------------------------------------------------------------------------------------------------|
| (10) | J. Chandler Martin is currently serving as a director and the Chair of the Board of Directors of the Company and the Bank. |

|      |                                                                                                                                                                       |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (11) | Includes 4,688 shares held in an IRA.  Angus M. McBryde, III has served as the Executive Vice President and Treasurer of the Company and the Bank since October 2011. |

|      |                                                                                                                                                                                                                                                                                                                                                                                    |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (12) | H. Ray McKenney, Jr. is the sole managing member of McKenney Investments, LLC. Mr. McKenney is currently serving as a director on the Board of Directors of the Company and the Bank. In addition to the shares of Common Stock referred to herein owned by McKenney Investments, LLC, Mr. McKenney directly owns 3,572 shares of Common Stock including 20 shares held in an IRA. |

|      |                                                                                                                                        |
|------|----------------------------------------------------------------------------------------------------------------------------------------|
| (13) | Gregory P. Murphy has served as the Executive Vice President and Chief Workout Officer of the Company and the Bank since October 2011. |

|      |                                                                                                                               |
|------|-------------------------------------------------------------------------------------------------------------------------------|
| (14) | R. Reynolds Neely, Jr. served as a director of the Board of Directors of the Company and the Bank from 1980 to June 20, 2013. |

|      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (15) | Newbury Associates LLC, as Managing Member of Newbury Equity Partners II GP LLC, the General Partner of Newbury Equity Partners II GP L.P., the General Partner of Newbury Equity Partners II L.P., makes investment and voting decisions with respect to shares held by Newbury Equity Partners II L.P. by way of an Investment Committee comprised of Richard Lichter, Gerald Esposito, Chris Jaroch, Warren Symon and David Shyu. Newbury Associates LLC disclaims beneficial ownership of the shares held by Newbury Equity Partners II L.P., except to the extent of any pecuniary interest in the shares. |

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|      |                                                                                                                                                                                 |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (16) | Includes 29,500 shares held in an IRA.  David L. Nielsen has served as the Executive Vice President and Chief Financial Officer of the Company and the Bank since October 2011. |

|      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (17) | Based on information reported on Amendment No. 1 to the Schedule 13D filed with the SEC on December 30, 2014, the general partner of Oak Hill Capital Partners III, L.P. and Oak Hill Capital Management Partners III, L.P. (together the “Oak Hill Funds”) is OHCP GenPar III, L.P., a Cayman Islands limited partnership.  The general partner of OHCP GenPar III, L.P. is OHCP MGP Partners III, L.P., a Cayman Islands limited partnership.  The general partner of OHCP MGP Partners III, L.P. is OHCP MGP III, Ltd., a Cayman Islands company.  J. Taylor Crandall, Steven Gruber and Denis Nayden are the directors of OHCP MGP III, Ltd.  J. Taylor Crandall, Steven Gruber, Denis Nayden, Tyler Wolfram, Kevin Levy, Shawn Hessing and John Monsky are the officers of OHCP MGP III, Ltd. Each of Messrs. Crandall, Gruber, Nayden, Wolfram, Levy, Hessing and Monsky expressly disclaims beneficial ownership of the shares of our Common Stock referred to herein. The beneficial ownership reported by the Oak Hill Funds in the table above does not include beneficial ownership of shares of Common Stock held by Oak Hill Capital Management, LLC (“OHCM”). OHCM holds 3,019 shares of Common Stock issued to OHCM in connection with compensation awarded to employees of OHCM or its affiliates who serve as members of our board of directors, and includes 1,583 shares of unvested restricted stock, of which 815 shares vest based on stock performance and 768 shares vest on various dates, in each case in equal annual installments over three years from the dates of respective grants. Each of the Oak Hill Funds disclaims beneficial ownership of the shares of Common Stock which are held by OHCM. |

|      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (18) | Susan Long McAndrews, Kevin Albert, Dennis McCrary, Rudy Scarpa, and Robert Amis are directors of Pantheon Global Co-Investment Opportunities GP Limited, the general partner of Pantheon Global Co-Investment Opportunities Fund, L.P. and make the investment and voting decisions with respect to shares held by of Pantheon Global Co-Investment Opportunities Fund, L.P. Pantheon Global Co-Investment Opportunities Fund, L.P. has indicated that it may be deemed to be an affiliate of a broker-dealer. Pantheon Global Co-Investment Opportunities Fund, L.P. has represented that it acquired its shares in the ordinary course of business and, at the time of the acquisition of the shares, had no agreements or understanding, directly or indirectly, with any person to distribute the shares. |

|      |                                                                                                                                                                                                                                                                                          |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (19) | Includes 21,172 shares held in an IRA.  Robert L. Reid has served as the Company’s President since October 2011 and as the Chief Executive Officer since October 1, 2014.  Mr. Reid is also currently serving as a director on the Board of Directors of the Company and the Bank. |

|      |                                                                                                                                                        |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------|
| (20) | Louis A. Schmitt, Jr. previously served as a director on the Board of Directors of the Company and the Bank until his retirement on December 31, 2013. |

|      |                                                                                                                                                                                                                                                                                           |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (21) | Includes 10,938 shares held in an IRA.  Brian E. Simpson served as the Company’s Chief Executive Officer from October 2011 to September 30, 2014.  Mr. Simpson also previously served as a director on the Board of Directors of the Company and the Bank until September 30, 2014. |

|      |                                                                                                               |
|------|---------------------------------------------------------------------------------------------------------------|
| (22) | Boyd C. Wilson, Jr. is currently serving as a director on the Board of Directors of the Company and the Bank. |

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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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|         |                                                                                                                                                                                                                                                                                       |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | 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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