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| For the annual period ended December 31, 2014 |   | Commission File Number 0-13823 |

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|------------------------------------------|
|                                          |  |  |
| North Carolina                           |   | 56-1456589 |
| (State of Incorporation)                 |   | (I.R.S. Employer Identification No.) |
| 1017 E. Morehead Street                  |   |   |
| Charlotte, North Carolina                |   | 28204 |
| (Address of principal executive offices) |   | (Zip Code) |

|                               |
|-------------------------------|
|                               |
| Title of each class           |
| Common Stock, $0.00 par value |

|                            |
|----------------------------|
|                            |  |  |  |
| Large accelerated filer  o | Accelerated filer x | Non-accelerated filer  o | Smaller reporting Company  o |
|                       |   | (Do not check if a smaller reporting company) |   |

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|               |  |  |
| Index         |   | Page |
|          |   |   |
| PART I   |   |   |
|          |   |   |
| Item 1.  | BUSINESS | 3 |
|          |   |   |
| Item 1A. | RISK FACTORS | 11 |
|          |   |   |
| Item 1B. | UNRESOLVED STAFF COMMENTS | 20 |
|          |   |   |
| Item 2.  | PROPERTIES | 20 |
|          |   |   |
| Item 3.  | LEGAL PROCEEDINGS | 20 |
|          |   |   |
| Item 4.  | MINE SAFETY DISCLOSURES | 20 |
|          |   |   |
| PART II  |   |   |
|          |   |   |
| Item 5.  | MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED SHAREHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES | 21 |
|          |   |   |
| Item 6.  | SELECTED FINANCIAL DATA | 23 |
|          |   |   |
| Item 7.  | MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS | 25 |
|          |   |   |
| Item 7A. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK | 54 |
|          |   |   |
| Item 8.  | FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA | 55 |
|          |   |   |
| Item 9.  | CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE | 118 |
|          |   |   |
| Item 9A. | CONTROLS AND PROCEDURES | 118 |
|          |   |   |
| Item 9B. | OTHER INFORMATION | 118 |
|          |   |   |
| PART III |   |   |
|          |   |   |
| Item 10. | DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE | 119 |
|          |   |   |
| Item 11. | EXECUTIVE COMPENSATION | 119 |
|          |   |   |
| Item 12. | SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED SHAREHOLDER MATTERS | 119 |
|          |   |   |
| Item 13. | CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS AND DIRECTOR INDEPENDENCE | 119 |
|          |   |   |
| Item 14. | PRINCIPAL ACCOUNTANT FEES AND SERVICES | 119 |
|          |   |   |
| PART IV  |   |   |
|          |   |   |
| Item 15. | EXHIBITS AND FINANCIAL STATEMENT SCHEDULES | 119 |
|          |   |   |
|          | SIGNATURES | 125 |

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|              |  |
| Item 1. | BUSINESS |

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|         |                                                                                                                                                                                                                                                                                                           |
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| • | rules enacted by the SEC pursuant to the Dodd-Frank Act, giving shareholders a non-binding vote on executive compensation and so called “golden parachute” payments, as well as the authority to allow shareholders to nominate their own candidates using a company’s proxy materials; |

|         |                                                                                                                            |
|---------|----------------------------------------------------------------------------------------------------------------------------|
| • | rules enacted by the federal banking agencies prohibiting excessive compensation paid to financial institution executives; |

|         |                                                                                                                                                                                                                                      |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | provisions authorizing national banks and state banks to establish branches in other states to the same extent as a bank chartered by that state would be permitted to branch, thus allowing banks to enter new markets more freely; |

|         |                                                                                                                                                                                                                                                                                                              |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | rules enacted by the Federal Reserve Board and enforced by the CFPB limiting interchange fees applicable to debit card transactions charged by banks with $10 billion or more in assets, which while not applicable to us, may have the practical effect of reducing the fees that we may be able to charge; |

|         |                                                                                                                                                                                   |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | rules issued by the CFPB to establish certain minimum standards for the origination of residential mortgages, including a determination of the borrower’s ability to repay; |

|         |                                                                                                                                                                                             |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | provisions that allow borrowers to raise certain defenses to foreclosure if they receive any loan other than a “qualified mortgage,” as that term has been defined by the CFPB; |

|         |                                                                      |
|---------|----------------------------------------------------------------------|
| • | provisions that have consolidated consumer complaints into the CFPB; |

|         |                                                                                                                                                                                                                           |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | provisions that give the CFPB expanded data collection powers for fair lending purposes for both small business and mortgage loans, as well as expanded authority to prevent unfair, deceptive and abusive practices; and |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | provisions restricting the ability of COB and the Bank to engage in short-term proprietary trading of securities, derivatives, commodity futures and options on these instruments for their own account, owning, sponsoring or having certain relationships with “covered funds,” including hedge funds and private equity funds, or investing in certain instruments that are covered by these prohibitions, subject to certain exceptions (the so-called “Volcker Rule”). |

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|               |
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|               |  |
| Item 1A. | RISK FACTORS |

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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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|               |
|---------------|
|               |  |
| Item 1B. | UNRESOLVED STAFF COMMENTS |

|              |
|--------------|
|              |  |
| Item 2. | PROPERTIES |

|              |
|--------------|
|              |  |
| Item 3. | LEGAL PROCEEDINGS |

|              |
|--------------|
|              |  |
| Item 4. | MINE SAFETY DISCLOSURES |

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|--------------|
|              |  |
| Item 5. | MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED SHAREHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES |

|                                       |
|---------------------------------------|
|                                       |  |  |  |  |  |  |  |  |  |  |  |  |
| Calendar Period                       |   | High |   | Low |   | DividendsDeclared |
| Quarter ended March 31, 2013     |   | $ | 12.00 |  |   | $ | 9.69 |  |   | $ | — |  |
| Quarter ended June 30, 2013      |   | 9.81 |  |   | 5.91 |  |   | — |  |
| Quarter ended September 30, 2013 |   | 10.47 |  |   | 7.37 |  |   | — |  |
| Quarter ended December 31, 2013  |   | 13.09 |  |   | 9.50 |  |   | — |  |
| Quarter ended March 31, 2014     |   | 13.00 |  |   | 10.50 |  |   | — |  |
| Quarter ended June 30, 2014      |   | 11.69 |  |   | 8.42 |  |   | — |  |
| Quarter ended September 30, 2014 |   | 10.39 |  |   | 8.62 |  |   | — |  |
| Quarter ended December 31, 2014  |   | 11.82 |  |   | 8.75 |  |   | — |  |

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|----------------------|
|                      |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                 |   | Period Ending |
| Index                |   | 12/31/2009 |   | 12/31/2010 |   | 12/31/2011 |   | 12/31/2012 |   | 12/31/2013 |   | 12/31/2014 |
| CommunityOne Bancorp |   | 100.00 |  |   | 25.00 |  |   | 9.85 |  |   | 8.92 |  |   | 9.81 |  |   | 8.81 |  |
| SNL Southeast Bank   |   | 100.00 |  |   | 97.10 |  |   | 56.81 |  |   | 94.37 |  |   | 127.88 |  |   | 144.03 |  |
| Russell 3000         |   | 100.00 |  |   | 116.93 |  |   | 118.13 |  |   | 137.52 |  |   | 183.66 |  |   | 206.72 |  |

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|--------------|
|              |  |
| Item 6. | SELECTED FINANCIAL DATA |

|                                                                            |
|----------------------------------------------------------------------------|
|                                                                            |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (dollars in thousands, except per share data)                              |   | As of and for the Year Ended December 31, |
|                                                                       |   | 2014 |   | 2013 |   | 2012 |   | 2011 |   | 2010 |
| Income Statement Data                                                      |   |   |   |   |   |   |   |   |   |   |
| Net interest income                                                        |   | $ | 63,766 |  |   | $ | 64,433 |  |   | $ | 61,280 |  |   | $ | 39,555 |  |   | $ | 51,650 |  |
| Provision for (recovery of) loan losses                                    |   | (5,371 | ) |   | 523 |  |   | 14,049 |  |   | 67,362 |  |   | 132,755 |  |
| Noninterest income                                                         |   | 17,364 |  |   | 20,414 |  |   | 21,958 |  |   | 21,970 |  |   | 27,622 |  |
| Noninterest expense                                                        |   | 78,535 |  |   | 84,481 |  |   | 110,206 |  |   | 125,040 |  |   | 75,679 |  |
| Income (Loss) from continuing operations, before income taxes              |   | 7,966 |  |   | (157 | ) |   | (41,017 | ) |   | (130,877 | ) |   | (129,162 | ) |
| Income tax expense (benefit) - continuing operations                       |   | (142,492 | ) |   | 1,326 |  |   | (1,039 | ) |   | 641 |  |   | 1,259 |  |
| Income (Loss) from continuing operations, net of taxes                     |   | 150,458 |  |   | (1,483 | ) |   | (39,978 | ) |   | (131,518 | ) |   | (130,421 | ) |
| Loss from discontinued operations, net of taxes                            |   | — |  |   | — |  |   | (27 | ) |   | (5,796 | ) |   | (1,406 | ) |
| Net income (loss)                                                          |   | 150,458 |  |   | (1,483 | ) |   | (40,005 | ) |   | (137,314 | ) |   | (131,827 | ) |
| Preferred stock gain (loss) on retirement, net of accretion, and dividends |   | — |  |   | — |  |   | — |  |   | 44,592 |  |   | (3,294 | ) |
| Net income (loss) to common shareholders                                   |   | 150,458 |  |   | (1,483 | ) |   | (40,005 | ) |   | (92,722 | ) |   | (135,121 | ) |
| Period End Balances                                                        |   |   |   |   |   |   |   |   |   |   |
| Assets                                                                     |   | $ | 2,215,514 |  |   | $ | 1,985,032 |  |   | $ | 2,151,565 |  |   | $ | 2,409,108 |  |   | $ | 1,902,369 |  |
| Loans held for sale (1)                                                    |   | 2,796 |  |   | 1,836 |  |   | 6,974 |  |   | 4,529 |  |   | — |  |
| Loans held for investment (2)                                              |   | 1,357,788 |  |   | 1,212,248 |  |   | 1,177,035 |  |   | 1,217,535 |  |   | 1,303,975 |  |
| Allowance for loan losses (1)                                              |   | 20,345 |  |   | 26,785 |  |   | 29,314 |  |   | 39,360 |  |   | 93,687 |  |
| Goodwill (1)                                                               |   | 4,205 |  |   | 4,205 |  |   | 4,205 |  |   | 3,905 |  |   | — |  |
| Deposits                                                                   |   | 1,794,420 |  |   | 1,748,705 |  |   | 1,906,988 |  |   | 2,129,111 |  |   | 1,696,390 |  |
| Borrowings                                                                 |   | 139,350 |  |   | 142,165 |  |   | 123,705 |  |   | 123,910 |  |   | 218,315 |  |
| Shareholders’ equity (deficit)                                       |   | 266,916 |  |   | 80,361 |  |   | 98,445 |  |   | 129,015 |  |   | (28,837 | ) |
| Average Balances                                                           |   |   |   |   |   |   |   |   |   |   |
| Assets                                                                     |   | $ | 2,005,948 |  |   | $ | 2,047,146 |  |   | $ | 2,291,541 |  |   | $ | 1,911,943 |  |   | $ | 2,036,603 |  |
| Loans held for sale (1)                                                    |   | 1,603 |  |   | 3,693 |  |   | 5,312 |  |   | 12,849 |  |   | 2,731 |  |
| Loans held for investment (2)                                              |   | 1,268,599 |  |   | 1,158,984 |  |   | 1,240,550 |  |   | 1,132,125 |  |   | 1,494,959 |  |
| Allowance for loan losses (1)                                              |   | 24,770 |  |   | 27,596 |  |   | 36,738 |  |   | 66,285 |  |   | 62,670 |  |
| Goodwill (1)                                                               |   | 4,205 |  |   | 4,205 |  |   | 4,130 |  |   | 574 |  |   | — |  |
| Deposits                                                                   |   | 1,758,471 |  |   | 1,809,574 |  |   | 2,027,425 |  |   | 1,725,512 |  |   | 1,725,019 |  |
| Borrowings                                                                 |   | 143,205 |  |   | 131,710 |  |   | 124,914 |  |   | 190,864 |  |   | 226,660 |  |
| Shareholders’ equity (deficit)                                       |   | 91,151 |  |   | 85,576 |  |   | 114,684 |  |   | (22,809 | ) |   | 68,190 |  |
| Per Common Share Data                                                      |   |   |   |   |   |   |   |   |   |   |
| Net income (loss) per share from continuing operations - basic             |   | $ | 6.89 |  |   | $ | (0.07 | ) |   | $ | (1.87 | ) |   | $ | (20.71 | ) |   | $ | (1,170.47 | ) |
| Net income (loss) per share from continuing operations - diluted           |   | 6.88 |  |   | (0.07 | ) |   | (1.87 | ) |   | (20.71 | ) |   | (1,170.47 | ) |
| Net loss per common share from discontinued operations - basic and diluted |   | — |  |   | — |  |   | — |  |   | (1.38 | ) |   | (12.31 | ) |
| Net income (loss) per share - basic                                        |   | 6.89 |  |   | (0.07 | ) |   | (1.87 | ) |   | (22.09 | ) |   | (1,182.78 | ) |

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|                                                                                                 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Net income (loss) per share - diluted                                                           |   | $ | 6.88 |  |   | $ | (0.07 | ) |   | $ | (1.87 | ) |   | $ | (22.09 | ) |   | $ | (1,182.78 | ) |
| Book value (shareholders' equity)                                                               |   | 11.04 |  |   | 3.68 |  |   | 4.54 |  |   | 6.11 |  |   | (714.72 | ) |
| Tangible book value (shareholders' equity) (3)                                                  |   | 10.63 |  |   | 3.17 |  |   | 4.00 |  |   | 5.54 |  |   | (751.24 | ) |
| Performance Ratios                                                                              |   |   |   |   |   |   |   |   |   |   |
| Return on average assets                                                                        |   | 7.50 | % |   | (0.07 | )% |   | (1.75 | )% |   | (4.85 | )% |   | (6.63 | )% |
| Return on average tangible assets (3)                                                           |   | 7.54 |  |   | (0.07 | ) |   | (1.76 | ) |   | (4.87 | ) |   | (6.65 | ) |
| Pre-credit and non-recurring ("PCNR") noninterest expense as a percentage of average assets (3) |   | 3.54 |  |   | 3.50 |  |   | 3.24 |  |   | 3.37 |  |   | 2.76 |  |
| Return on average equity                                                                        |   | 165.06 |  |   | (1.73 | ) |   | (34.88 | ) |   | N/M |   | (198.15 | ) |
| Return on average tangible shareholders’ equity (3)                                       |   | 186.50 |  |   | (2.00 | ) |   | (39.09 | ) |   | N/M |   | (212.39 | ) |
| Net interest margin (tax equivalent)                                                            |   | 3.43 |  |   | 3.44 |  |   | 2.95 |  |   | 2.29 |  |   | 2.81 |  |
| Asset Quality Ratios                                                                            |   |   |   |   |   |   |   |   |   |   |
| Allowance for loan losses to period end loans held for investment (1) (2)                       |   | 1.50 | % |   | 2.21 |  % |   | 2.49 |  % |   | 3.23 |  % |   | 7.18 |  % |
| Nonperforming loans to period end allowance for loan losses (1) (4)                             |   | 124.32 |  |   | 131.29 |  |   | 271.10 |  |   | 269.24 |  |   | 352.12 |  |
| Net charge-offs to average loans held for investment (2)                                        |   | 0.08 |  |   | 0.26 |  |   | 1.94 |  |   | 10.75 |  |   | 5.92 |  |
| Nonperforming assets to period end total assets (4)                                             |   | 2.06 |  |   | 3.20 |  |   | 6.63 |  |   | 8.98 |  |   | 19.12 |  |
| Capital and Liquidity Ratios                                                                    |   |   |   |   |   |   |   |   |   |   |
| Average equity to average assets                                                                |   | 4.54 | % |   | 4.18 |  % |   | 5.00 |  % |   | (1.19 | )% |   | 3.35 |  % |
| Total risk-based capital                                                                        |   | 14.58 |  |   | 12.62 |  |   | 12.34 |  |   | 13.81 |  |   | (2.56 | ) |
| Tier 1 risk-based capital                                                                       |   | 13.33 |  |   | 9.48 |  |   | 9.26 |  |   | 11.71 |  |   | (2.56 | ) |
| Leverage capital                                                                                |   | 9.78 |  |   | 5.96 |  |   | 5.45 |  |   | 6.70 |  |   | (1.86 | ) |
| Period end loans held for investment to period end deposits (2)                                 |   | 75.67 |  |   | 69.32 |  |   | 61.72 |  |   | 57.19 |  |   | 76.87 |  |

|     |                                   |
|-----|-----------------------------------|
| (1) | Excludes discontinued operations. |

|     |                                                                                      |
|-----|--------------------------------------------------------------------------------------|
| (2) | Loans held for investment, net of unearned income, before allowance for loan losses. |

|     |                                                                                                                                                                   |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (3) | Refer to the “Non-GAAP Measures” section in Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations. |

|     |                                                                                                                       |
|-----|-----------------------------------------------------------------------------------------------------------------------|
| (4) | Nonperforming loans and nonperforming assets include loans past due 90 days or more that are still accruing interest. |

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| Item 7. | MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |

|         |                                                                                                                                                                  |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | our ability to continue to grow our business internally and through acquisition and successful integration of any acquired entities while controlling our costs; |

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

|         |                                                                                                                                                                                                                                                                 |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | 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; |

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

|         |                                                                           |
|---------|---------------------------------------------------------------------------|
| • | the accuracy of our assumptions relating to the establishment of our ALL; |

|         |                                                                  |
|---------|------------------------------------------------------------------|
| • | adverse changes in the value of real estate in our market areas; |

|         |                                                                                                                            |
|---------|----------------------------------------------------------------------------------------------------------------------------|
| • | adverse changes 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; |

|         |                                    |
|---------|------------------------------------|
| • | declines in the value of our OREO; |

|         |                                                                                                                                |
|---------|--------------------------------------------------------------------------------------------------------------------------------|
| • | the accuracy of our assumptions relating to our ability to use net operating loss carryforwards to reduce future tax payments; |

|         |                                                                                                                                |
|---------|--------------------------------------------------------------------------------------------------------------------------------|
| • | the loss of one or more members of executive management and our ability to recruit and retain key lenders and other employees; |

|         |                                                                                                                                                                                                       |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | 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; |

|         |                                                                                                                                 |
|---------|---------------------------------------------------------------------------------------------------------------------------------|
| • | increased competitive pressures in the banking industry or in COB's markets affecting pricing or product and service offerings; |

|         |                                                                         |
|---------|-------------------------------------------------------------------------|
| • | our ability to respond to rapid technological developments and changes; |

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

|         |                                                                                                                                                                                        |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | information security risks impacting us or our vendors, including “hacking” and “identity theft,” that could adversely affect our business and our reputation; |

|         |                                                                                         |
|---------|-----------------------------------------------------------------------------------------|
| • | the loss or disruption of the services provided by one or more of our critical vendors; |

|         |                                                                       |
|---------|-----------------------------------------------------------------------|
| • | our ability to achieve our targeted reductions in costs and expenses; |

|         |                                                                                                                                                                       |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | the impact of laws and regulatory requirements, including the Basel III capital rules, Bank Secrecy Act requirements, and regulations required by the Dodd-Frank Act; |

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

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

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

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|                                                            |   | Year Ended December 31, |
|                                                            |   | 2014 |   | 2013 |   | 2012 |
| (dollars in thousands)                                          |   | AverageBalance (3) |   | Income /Expense |   | AverageYield /Rate |   | AverageBalance (3) |   | Income /Expense |   | AverageYield /Rate |   | AverageBalance (3) |   | Income /Expense |   | AverageYield /Rate |
| Interest earning assets:                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans (1)(2)                                                    |   | $ | 1,270,202 |  |   | $ | 59,268 |  |   | 4.67 | % |   | $ | 1,162,677 |  |   | $ | 60,339 |  |   | 5.19 | % |   | $ | 1,245,862 |  |   | $ | 66,178 |  |   | 5.31 | % |
| Investment securities                                           |   | 533,272 |  |   | 14,068 |  |   | 2.64 |  |   | 581,271 |  |   | 14,180 |  |   | 2.44 |  |   | 469,822 |  |   | 10,778 |  |   | 2.29 |  |
| Other earning assets                                            |   | 58,978 |  |   | 605 |  |   | 1.03 |  |   | 136,944 |  |   | 665 |  |   | 0.49 |  |   | 369,297 |  |   | 1,223 |  |   | 0.33 |  |
| Total earning assets                                            |   | 1,862,452 |  |   | 73,941 |  |   | 3.97 |  |   | 1,880,892 |  |   | 75,184 |  |   | 4.00 |  |   | 2,084,981 |  |   | 78,179 |  |   | 3.75 |  |
| Non-earning assets:                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash and due from banks                                         |   | 26,918 |  |   |   |   |   |   | 29,760 |  |   |   |   |   |   | 32,463 |  |   |   |   |   |
| Core deposit premiums and other intangibles                     |   | 10,476 |  |   |   |   |   |   | 11,412 |  |   |   |   |   |   | 11,745 |  |   |   |   |   |
| Other assets, net                                               |   | 106,102 |  |   |   |   |   |   | 125,082 |  |   |   |   |   |   | 162,241 |  |   |   |   |   |
| Assets of discontinued operations                               |   | — |  |   |   |   |   |   | — |  |   |   |   |   |   | 111 |  |   |   |   |   |
| Total assets                                                    |   | $ | 2,005,948 |  |   |   |   |   |   | $ | 2,047,146 |  |   |   |   |   |   | $ | 2,291,541 |  |   |   |   |   |
| Interest-bearing liabilities:                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing demand deposits                                |   | $ | 340,525 |  |   | $ | 1,011 |  |   | 0.30 | % |   | $ | 346,771 |  |   | $ | 1,058 |  |   | 0.31 | % |   | $ | 349,288 |  |   | $ | 1,404 |  |   | 0.40 | % |
| Savings deposits                                                |   | 84,921 |  |   | 87 |  |   | 0.10 |  |   | 79,651 |  |   | 81 |  |   | 0.10 |  |   | 72,594 |  |   | 108 |  |   | 0.15 |  |
| Money market deposits                                           |   | 436,126 |  |   | 1,106 |  |   | 0.25 |  |   | 448,382 |  |   | 1,026 |  |   | 0.23 |  |   | 443,035 |  |   | 1,766 |  |   | 0.40 |  |
| Time deposits                                                   |   | 581,498 |  |   | 4,704 |  |   | 0.81 |  |   | 650,392 |  |   | 5,906 |  |   | 0.91 |  |   | 908,625 |  |   | 10,796 |  |   | 1.19 |  |
| Total interest-bearing deposits                                 |   | 1,443,070 |  |   | 6,908 |  |   | 0.48 |  |   | 1,525,196 |  |   | 8,071 |  |   | 0.53 |  |   | 1,773,542 |  |   | 14,074 |  |   | 0.79 |  |
| Retail repurchase agreements                                    |   | 7,713 |  |   | 16 |  |   | 0.21 |  |   | 9,852 |  |   | 21 |  |   | 0.21 |  |   | 9,861 |  |   | 29 |  |   | 0.29 |  |
| Federal Home Loan Bank advances                                 |   | 73,493 |  |   | 2,020 |  |   | 2.75 |  |   | 62,499 |  |   | 1,376 |  |   | 2.20 |  |   | 58,351 |  |   | 1,448 |  |   | 2.48 |  |
| Long-term debt                                                  |   | 5,297 |  |   | 76 |  |   | 1.43 |  |   | 2,657 |  |   | 31 |  |   | 1.18 |  |   | — |  |   | — |  |   | — |  |
| Other borrowed funds                                            |   | 56,702 |  |   | 1,070 |  |   | 1.89 |  |   | 56,702 |  |   | 1,060 |  |   | 1.87 |  |   | 56,702 |  |   | 1,157 |  |   | 2.04 |  |
| Total interest-bearing liabilities                              |   | 1,586,275 |  |   | 10,090 |  |   | 0.64 |  |   | 1,656,906 |  |   | 10,559 |  |   | 0.64 |  |   | 1,898,456 |  |   | 16,708 |  |   | 0.88 |  |
| Noninterest-bearing liabilities and shareholders’ equity: |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Noninterest-bearing demand deposits                             |   | 315,401 |  |   |   |   |   |   | 284,378 |  |   |   |   |   |   | 253,883 |  |   |   |   |   |
| Other liabilities                                               |   | 13,121 |  |   |   |   |   |   | 20,286 |  |   |   |   |   |   | 23,908 |  |   |   |   |   |
| Shareholders’ equity                                      |   | 91,151 |  |   |   |   |   |   | 85,576 |  |   |   |   |   |   | 114,684 |  |   |   |   |   |
| Liabilities of discontinued operations                          |   | — |  |   |   |   |   |   | — |  |   |   |   |   |   | 610 |  |   |   |   |   |
| Total liabilities and equity                                    |   | $ | 2,005,948 |  |   |   |   |   |   | $ | 2,047,146 |  |   |   |   |   |   | $ | 2,291,541 |  |   |   |   |   |
| Net interest income and net yield on earning assets (4)         |   |   |   | $ | 63,851 |  |   | 3.43 | % |   |   |   | $ | 64,625 |  |   | 3.44 | % |   |   |   | $ | 61,471 |  |   | 2.95 | % |
| Interest rate spread (5)                                        |   |   |   |   |   | 3.33 | % |   |   |   |   |   | 3.36 | % |   |   |   |   |   | 2.87 | % |

|     |                                                                             |
|-----|-----------------------------------------------------------------------------|
| (1) | The fully tax equivalent basis is computed using a federal tax rate of 35%. |

|     |                                                                          |
|-----|--------------------------------------------------------------------------|
| (2) | Average loan balances include nonaccruing loans and loans held for sale. |

|     |                                                                                                                      |
|-----|----------------------------------------------------------------------------------------------------------------------|
| (3) | Average balances include market adjustments to fair value for securities available-for-sale and loans held for sale. |

|     |                                                                                                    |
|-----|----------------------------------------------------------------------------------------------------|
| (4) | Net yield on earning assets is computed by dividing net interest income by average earning assets. |

|     |                                                              |
|-----|--------------------------------------------------------------|
| (5) | Earning asset yield minus interest-bearing liabilities rate. |

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|                                            |
|--------------------------------------------|
|                                            |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (dollars in thousands)                     |   | 2014 vs 2013 |   | 2013 vs 2012 |
|                                  |   | VolumeVariance |   | RateVariance |   | TotalVariance |   | VolumeVariance |   | RateVariance |   | TotalVariance |
| Interest income:                           |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans                                      |   | $ | 12,843 |  |   | $ | (13,914 | ) |   | $ | (1,071 | ) |   | $ | (4,362 | ) |   | $ | (1,477 | ) |   | $ | (5,839 | ) |
| Investment securities                      |   | (15,193 | ) |   | 15,081 |  |   | (112 | ) |   | 2,666 |  |   | 736 |  |   | 3,402 |  |
| Other earning assets                       |   | 64 |  |   | (124 | ) |   | (60 | ) |   | (2,443 | ) |   | 1,885 |  |   | (558 | ) |
| Total interest income                      |   | (2,286 | ) |   | 1,043 |  |   | (1,243 | ) |   | (4,139 | ) |   | 1,144 |  |   | (2,995 | ) |
| Interest expense:                          |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing demand deposits           |   | (17 | ) |   | (30 | ) |   | (47 | ) |   | (11 | ) |   | (335 | ) |   | (346 | ) |
| Savings deposits                           |   | 6 |  |   | — |  |   | 6 |  |   | 11 |  |   | (38 | ) |   | (27 | ) |
| Money market deposits                      |   | (37 | ) |   | 117 |  |   | 80 |  |   | 22 |  |   | (762 | ) |   | (740 | ) |
| Time deposits                              |   | (590 | ) |   | (612 | ) |   | (1,202 | ) |   | (2,675 | ) |   | (2,215 | ) |   | (4,890 | ) |
| Retail repurchase agreements               |   | (5 | ) |   | — |  |   | (5 | ) |   | — |  |   | (8 | ) |   | (8 | ) |
| Federal Home Loan Bank advances            |   | 267 |  |   | 377 |  |   | 644 |  |   | 124 |  |   | (196 | ) |   | (72 | ) |
| Long-term debt                             |   | 37 |  |   | 8 |  |   | 45 |  |   | 31 |  |   | — |  |   | 31 |  |
| Other borrowed funds                       |   | — |  |   | 10 |  |   | 10 |  |   | — |  |   | (97 | ) |   | (97 | ) |
| Total interest expense                     |   | (339 | ) |   | (130 | ) |   | (469 | ) |   | (2,498 | ) |   | (3,651 | ) |   | (6,149 | ) |
| Increase (decrease) in net interest income |   | $ | (1,947 | ) |   | $ | 1,173 |  |   | $ | (774 | ) |   | $ | (1,641 | ) |   | $ | 4,795 |  |   | $ | 3,154 |  |

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|                                                                                    |
|------------------------------------------------------------------------------------|
|                                                                                    |  |  |  |  |  |  |  |  |  |  |  |  |
| (dollars in thousands)                                                             |   | Year ended December 31, |
|                                                                               |   | 2014 |   | 2013 |   | 2012 |
| Service charges on deposit accounts                                                |   | $ | 6,351 |  |   | $ | 6,714 |  |   | $ | 7,080 |  |
| Mortgage loan income                                                               |   | 881 |  |   | 2,319 |  |   | 2,065 |  |
| Cardholder and merchant services income                                            |   | 4,803 |  |   | 4,531 |  |   | 4,579 |  |
| Trust and investment services                                                      |   | 1,495 |  |   | 1,305 |  |   | 1,036 |  |
| Bank-owned life insurance                                                          |   | 1,153 |  |   | 1,073 |  |   | 1,195 |  |
| Other service charges, commissions and fees                                        |   | 1,340 |  |   | 1,315 |  |   | 1,128 |  |
| Securities gains, net                                                              |   | 974 |  |   | 2,772 |  |   | 4,121 |  |
| Other income                                                                       |   | 367 |  |   | 385 |  |   | 754 |  |
| Total noninterest income                                                           |   | 17,364 |  |   | 20,414 |  |   | 21,958 |  |
| Less:                                                                              |   |   |   |   |   |   |
|     Securities gains, net                                      |   | 974 |  |   | 2,772 |  |   | 4,121 |  |
|         PCNR noninterest income (Non-GAAP) |   | $ | 16,390 |  |   | $ | 17,642 |  |   | $ | 17,837 |  |

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|                                                                                     |
|-------------------------------------------------------------------------------------|
|                                                                                     |  |  |  |  |  |  |  |  |  |  |  |  |
| (dollars in thousands)                                                              |   | Year ended December 31, |
|                                                                                |   | 2014 |   | 2013 |   | 2012 |
| Personnel expense                                                                   |   | $ | 43,682 |  |   | $ | 40,661 |  |   | $ | 40,051 |  |
| Net occupancy expense                                                               |   | 6,112 |  |   | 6,391 |  |   | 6,461 |  |
| Furniture, equipment and data processing expense                                    |   | 8,336 |  |   | 8,638 |  |   | 8,721 |  |
| Professional fees                                                                   |   | 2,470 |  |   | 3,100 |  |   | 5,266 |  |
| Stationery, printing and supplies                                                   |   | 646 |  |   | 644 |  |   | 637 |  |
| Advertising and marketing                                                           |   | 716 |  |   | 1,135 |  |   | 957 |  |
| Credit/debit card expense                                                           |   | 2,287 |  |   | 2,143 |  |   | 1,717 |  |
| Core deposit intangible amortization                                                |   | 1,408 |  |   | 1,407 |  |   | 1,407 |  |
| FDIC insurance                                                                      |   | 2,068 |  |   | 2,643 |  |   | 3,499 |  |
| Other real estate owned expense                                                     |   | 1,758 |  |   | 4,138 |  |   | 27,883 |  |
| Loan collection expense                                                             |   | 1,576 |  |   | 4,333 |  |   | 3,274 |  |
| Merger-related expense                                                              |   | — |  |   | 3,498 |  |   | 3,241 |  |
| Other expense                                                                       |   | 7,476 |  |   | 5,750 |  |   | 7,092 |  |
|      Total noninterest expense                             |   | 78,535 |  |   | 84,481 |  |   | 110,206 |  |
| Less:                                                                               |   |   |   |   |   |   |
|      Other real estate owned expense                       |   | 1,758 |  |   | 4,138 |  |   | 27,883 |  |
|      Loan collection expense                               |   | 1,576 |  |   | 4,333 |  |   | 3,274 |  |
|      Merger-related expense                                |   | — |  |   | 3,498 |  |   | 3,241 |  |
|      Mortgage and litigation accruals                      |   | (68 | ) |   | (487 | ) |   | 1,100 |  |
|      Executive severance                                   |   | 2,060 |  |   | — |  |   | — |  |
|      US Treasury sale expenses                             |   | 409 |  |   | — |  |   | — |  |
|      Rebranding                                            |   | — |  |   | 616 |  |   | 397 |  |
|      Branch closure and restructuring expenses             |   | 1,756 |  |   | 675 |  |   | 96 |  |
|         PCNR noninterest expense (Non-GAAP) |   | $ | 71,044 |  |   | $ | 71,708 |  |   | $ | 74,215 |  |

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|         |                                                                                                                                                 |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------|
| • | improvements in the asset quality of the loan portfolio and diminishment of credit-related losses that were the source of the Company's losses; |

|         |                                                                                                                                                                                 |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | implementation of strong internal controls making it unlikely that the large volume of troubled loans leading to the Company’s losses between 2008 and 2012 will reoccur; |

|         |                                                                   |
|---------|-------------------------------------------------------------------|
| • | the increased remoteness and diminished relevance of such losses; |

|         |                                                                                                          |
|---------|----------------------------------------------------------------------------------------------------------|
| • | continued improvement of the Company’s financial metrics and six consecutive quarters of earnings; |

|         |                                                                                                             |
|---------|-------------------------------------------------------------------------------------------------------------|
| • | a credible forecast of future taxable income based on management’s demonstrated forecasting accuracy; |

|         |                                                                                                               |
|---------|---------------------------------------------------------------------------------------------------------------|
| • | various cost-reduction initiatives that will have a continuing positive effect on earnings in future periods; |

|         |                                              |
|---------|----------------------------------------------|
| • | availability of tax planning strategies, and |

|         |                                  |
|---------|----------------------------------|
| • | long-dated carryforward periods. |

|                                    |
|------------------------------------|
|                                    |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (dollars in thousands)             |   | Payments Due by Period at December 31, 2014 |
|                               |   | Less than one year |   | One to less thanthree years |   | Three to less than five years |   | Five years or longer |   | Total |
| Deposits                           |   | $ | 1,521,946 |  |   | $ | 198,333 |  |   | $ | 73,886 |  |   | $ | 255 |  |   | $ | 1,794,420 |  |
| Retail repurchase agreements       |   | 9,076 |  |   | — |  |   | — |  |   | — |  |   | 9,076 |  |
| Federal Home Loan Bank advances    |   | 3,000 |  |   | 10,000 |  |   | 5,234 |  |   | 50,000 |  |   | 68,234 |  |
| Long-term notes payable            |   | — |  |   | 5,338 |  |   | — |  |   | — |  |   | 5,338 |  |
| Trust preferred securities         |   | — |  |   | — |  |   | — |  |   | 56,702 |  |   | 56,702 |  |
| Lease obligations                  |   | 2,028 |  |   | 3,344 |  |   | 2,485 |  |   | 9,658 |  |   | 17,515 |  |
| Estimated benefit plan payments:   |   |   |   |   |   |   |   |   |   |   |
| Pension                            |   | 870 |  |   | 1,880 |  |   | 1,850 |  |   | 4,660 |  |   | 9,260 |  |
| Other                              |   | 60 |  |   | 130 |  |   | 130 |  |   | 350 |  |   | 670 |  |
| Total contractual cash obligations |   | $ | 1,536,980 |  |   | $ | 219,025 |  |   | $ | 83,585 |  |   | $ | 121,625 |  |   | $ | 1,961,215 |  |

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|                                                                      |
|----------------------------------------------------------------------|
|                                                                      |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                                 |   | December 31, 2014 |
| (dollars in thousands)                                               |   | Rate Maturity |   |   |
|                                                                 |   | 1-90Days |   | 91-180Days |   | 181-365Days |   | BeyondOne Year |   | Total |
| Earning Assets                                                       |   |   |   |   |   |   |   |   |   |   |
| Investment securities                                                |   | $ | 33,711 |  |   | $ | 15,321 |  |   | $ | 21,646 |  |   | $ | 421,823 |  |   | $ | 492,501 |  |
| Loans held for investment                                            |   | 403,013 |  |   | 43,916 |  |   | 90,047 |  |   | 820,812 |  |   | 1,357,788 |  |
| Loans held for sale                                                  |   | 2,796 |  |   | — |  |   | — |  |   | — |  |   | 2,796 |  |
| Interest-bearing bank balances                                       |   | 66,680 |  |   | — |  |   | — |  |   | — |  |   | 66,680 |  |
| Other earning assets                                                 |   | 4,855 |  |   | 4,713 |  |   | — |  |   | — |  |   | 9,568 |  |
| Total interest-earning assets                                        |   | 511,055 |  |   | 63,950 |  |   | 111,693 |  |   | 1,242,635 |  |   | 1,929,333 |  |
| Interest-Bearing Liabilities                                         |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing deposits:                                           |   |   |   |   |   |   |   |   |   |   |
| Demand deposits                                                      |   | 358,162 |  |   | — |  |   | — |  |   | — |  |   | 358,162 |  |
| Savings deposits                                                     |   | 86,686 |  |   | — |  |   | — |  |   | — |  |   | 86,686 |  |
| Money market deposits                                                |   | 437,484 |  |   | — |  |   | — |  |   | — |  |   | 437,484 |  |
| Time deposits of $250,000 or more                                    |   | 2,991 |  |   | 7,987 |  |   | 23,912 |  |   | 15,077 |  |   | 49,967 |  |
| Other time deposits                                                  |   | 89,933 |  |   | 64,593 |  |   | 126,423 |  |   | 257,396 |  |   | 538,345 |  |
| Retail repurchase agreements                                         |   | 9,076 |  |   | — |  |   | — |  |   | — |  |   | 9,076 |  |
| Federal Home Loan Bank advances                                      |   | 10,014 |  |   | 14 |  |   | 3,029 |  |   | 55,177 |  |   | 68,234 |  |
| Long-term notes payable                                              |   | — |  |   | — |  |   | — |  |   | 5,338 |  |   | 5,338 |  |
| Trust preferred securities                                           |   | 56,702 |  |   | — |  |   | — |  |   | — |  |   | 56,702 |  |
| Total interest-bearing liabilities                                   |   | 1,051,048 |  |   | 72,594 |  |   | 153,364 |  |   | 332,988 |  |   | 1,609,994 |  |
| Interest sensitivity gap                                             |   | $ | (539,993 | ) |   | $ | (8,644 | ) |   | $ | (41,671 | ) |   | $ | 909,647 |  |   | $ | 319,339 |  |
| Cumulative gap                                                       |   | $ | (539,993 | ) |   | $ | (548,637 | ) |   | $ | (590,308 | ) |   | $ | 319,339 |  |   | $ | 319,339 |  |
| Ratio of interest-sensitive assets to interest-sensitive liabilities |   | 49 | % |   | 88 | % |   | 73 | % |   | 373 | % |   | 120 | % |

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|                                  |
|----------------------------------|
|                                  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (dollars in thousands)           |   | Contractual Maturities at December 31, 2014 |   |   |   |   |
|                             |   | 2015 |   | 2016 |   | 2017 |   | 2018 |   | 2019 |   | BeyondFive Years |   | Total |   | AverageInterestRate (1) |   | EstimatedValue atCurrent Rates |
| Financial Assets                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Debt and equity securities (2):  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Fixed rate                       |   | $ | 8,399 |  |   | $ | 2,028 |  |   | $ | — |  |   | $ | — |  |   | $ | — |  |   | $ | 471,627 |  |   | $ | 482,054 |  |   | 2.55 | % |   | $ | 474,810 |  |
| Variable rate                    |   | — |  |   | — |  |   | — |  |   | — |  |   | — |  |   | 15,332 |  |   | 15,332 |  |   | 2.93 | % |   | 16,105 |  |
| Loans (3):                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Fixed rate                       |   | 60,877 |  |   | 36,684 |  |   | 71,068 |  |   | 94,289 |  |   | 96,139 |  |   | 523,154 |  |   | 882,211 |  |   | 4.92 | % |   | 860,316 |  |
| Variable rate                    |   | 65,229 |  |   | 35,314 |  |   | 36,644 |  |   | 31,698 |  |   | 65,052 |  |   | 241,641 |  |   | 475,578 |  |   | 3.80 | % |   | 468,578 |  |
| Held for sale                    |   | 2,796 |  |   | — |  |   | — |  |   | — |  |   | — |  |   | — |  |   | 2,796 |  |   | 3.90 | % |   | 2,796 |  |
| Interest-bearing bank balances   |   | 66,680 |  |   | — |  |   | — |  |   | — |  |   | — |  |   | — |  |   | 66,680 |  |   | 0.26 | % |   | 66,680 |  |
| Other earning assets             |   | 9,568 |  |   | — |  |   | — |  |   | — |  |   | — |  |   | — |  |   | 9,568 |  |   | 4.92 | % |   | 9,568 |  |
| Total                            |   | $ | 213,549 |  |   | $ | 74,026 |  |   | $ | 107,712 |  |   | $ | 125,987 |  |   | $ | 161,191 |  |   | $ | 1,251,754 |  |   | $ | 1,934,219 |  |   | 3.88 | % |   | $ | 1,898,853 |  |
| Financial Liabilities            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing demand deposits |   | $ | 358,162 |  |   | $ | — |  |   | $ | — |  |   | $ | — |  |   | $ | — |  |   | $ | — |  |   | $ | 358,162 |  |   | 0.30 | % |   | $ | 358,162 |  |
| Savings deposits                 |   | 86,686 |  |   | — |  |   | — |  |   | — |  |   | — |  |   | — |  |   | 86,686 |  |   | 0.10 | % |   | 86,686 |  |
| Money market deposits            |   | 437,484 |  |   | — |  |   | — |  |   | — |  |   | — |  |   | — |  |   | 437,484 |  |   | 0.25 | % |   | 437,484 |  |
| Time deposits:                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Fixed rate                       |   | 315,715 |  |   | 132,147 |  |   | 66,186 |  |   | 30,122 |  |   | 43,765 |  |   | 255 |  |   | 588,190 |  |   | 0.78 | % |   | 586,975 |  |
| Variable rate                    |   | 123 |  |   | — |  |   | — |  |   | — |  |   | — |  |   | — |  |   | 123 |  |   | 0.78 | % |   | 123 |  |
| Retail repurchase agreements     |   | 9,076 |  |   | — |  |   | — |  |   | — |  |   | — |  |   | — |  |   | 9,076 |  |   | 0.21 | % |   | 9,076 |  |
| Federal Home Loan Bank advances: |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Fixed rate                       |   | 3,000 |  |   | 5,000 |  |   | 5,000 |  |   | 5,234 |  |   | — |  |   | 40,000 |  |   | 58,234 |  |   | 2.94 | % |   | 60,337 |  |
| Variable rate                    |   | — |  |   | — |  |   | — |  |   | — |  |   | — |  |   | 10,000 |  |   | 10,000 |  |   | 1.60 | % |   | 10,599 |  |
| Long-term notes payable          |   | — |  |   | — |  |   | 5,338 |  |   | — |  |   | — |  |   | — |  |   | 5,338 |  |   | 1.43 | % |   | 5,338 |  |
| Trust preferred securities       |   | — |  |   | — |  |   | — |  |   | — |  |   | — |  |   | 56,702 |  |   | 56,702 |  |   | 1.86 | % |   | 32,341 |  |
| Total                            |   | $ | 1,210,246 |  |   | $ | 137,147 |  |   | $ | 76,524 |  |   | $ | 35,356 |  |   | $ | 43,765 |  |   | $ | 106,957 |  |   | $ | 1,609,995 |  |   | 0.61 | % |   | $ | 1,587,121 |  |

|     |                                                                                                                                             |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------|
| (1) | The average interest rate related to debt securities is stated on a fully taxable equivalent basis, assuming a 35% federal income tax rate. |

|     |                                                                                   |
|-----|-----------------------------------------------------------------------------------|
| (2) | Contractual maturities of debt and equity securities are based on amortized cost. |

|     |                                                                                                   |
|-----|---------------------------------------------------------------------------------------------------|
| (3) | Nonaccrual loans are included in the balance of loans. The allowance for loan losses is excluded. |

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|                           |
|---------------------------|
|                           |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (dollars in thousands)    |   | At December 31, |
|                      |   | 2014 |   | 2013 |   | 2012 |
| Total risk-based capital  |   |   |   |   |   |   |   |   |   |   |   |   |
| Consolidated              |   | $ | 203,150 |  |   | 14.58 | % |   | $ | 159,146 |  |   | 12.6 | % |   | $ | 158,993 |  |   | 12.3 | % |
| CommunityOne Bank, N.A.   |   | 206,474 |  |   | 14.88 |  |   | 166,152 |  |   | 13.2 |  |   | 103,976 |  |   | 11.4 |  |
| Bank of Granite           |   | N/A |  |   | N/A |  |   | N/A |  |   | N/A |  |   | 60,896 |  |   | 16.3 |  |
| Tier 1 risk-based capital |   |   |   |   |   |   |   |   |   |   |   |   |
| Consolidated              |   | 185,690 |  |   | 13.33 |  |   | 119,499 |  |   | 9.5 |  |   | 119,242 |  |   | 9.3 |  |
| CommunityOne Bank, N.A.   |   | 189,081 |  |   | 13.63 |  |   | 150,274 |  |   | 11.9 |  |   | 92,418 |  |   | 10.1 |  |
| Bank of Granite           |   | N/A |  |   | N/A |  |   | N/A |  |   | N/A |  |   | 56,209 |  |   | 15.0 |  |
| Leverage capital          |   |   |   |   |   |   |   |   |   |   |   |   |
| Consolidated              |   | 185,690 |  |   | 9.78 |  |   | 119,499 |  |   | 6.0 |  |   | 119,242 |  |   | 5.5 |  |
| CommunityOne Bank, N.A.   |   | 189,081 |  |   | 9.94 |  |   | 150,274 |  |   | 7.5 |  |   | 92,418 |  |   | 6.2 |  |
| Bank of Granite           |   | N/A |  |   | N/A |  |   | N/A |  |   | N/A |  |   | 56,209 |  |   | 8.1 |  |

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|                                                               |
|---------------------------------------------------------------|
|                                                               |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (dollars in thousands)                                        |   | Within 1Year |   | 1 to 5Years |   | 5 to 10Years |   | Over 10Years |   | Total |
| Amortized Cost                                                |   |   |   |   |   |   |   |   |   |   |
|    Available-for-Sale:                         |   |   |   |   |   |   |   |   |   |   |
| Obligations of:                                               |   |   |   |   |   |   |   |   |   |   |
| U.S. government sponsored agencies                            |   | $ | — |  |   | $ | 2,028 |  |   | $ | — |  |   | $ | — |  |   | $ | 2,028 |  |
| Residential mortgage-backed securities-GSE                    |   | — |  |   | — |  |   | 2,327 |  |   | 292,973 |  |   | 295,300 |  |
| Residential mortgage-backed securities-Private                |   | — |  |   | — |  |   | — |  |   | 16,455 |  |   | 16,455 |  |
| Commercial mortgage-backed securities-GSE                     |   | — |  |   | — |  |   | 22,377 |  |   | — |  |   | 22,377 |  |
| Commercial mortgage-backed securities-Private                 |   | — |  |   | — |  |   | — |  |   | 10,365 |  |   | 10,365 |  |
| Corporate notes                                               |   | 8,399 |  |   | — |  |   | — |  |   | — |  |   | 8,399 |  |
| Total available-for-sale securities                           |   | 8,399 |  |   | 2,028 |  |   | 24,704 |  |   | 319,793 |  |   | 354,924 |  |
|    Held-to-Maturity:                           |   |   |   |   |   |   |   |   |   |   |
| Residential mortgage-backed securities-GSE                    |   | — |  |   | — |  |   | — |  |   | 132,397 |  |   | 132,397 |  |
| Commercial mortgage-backed securities-Private                 |   | — |  |   | — |  |   | — |  |   | 10,065 |  |   | 10,065 |  |
| Total held-to-maturity securities                             |   | — |  |   | — |  |   | — |  |   | 142,462 |  |   | 142,462 |  |
| Total investment securities                                   |   | $ | 8,399 |  |   | $ | 2,028 |  |   | $ | 24,704 |  |   | $ | 462,255 |  |   | $ | 497,386 |  |
|                                                          |   |   |   |   |   |   |   |   |   |   |
| Fair Value                                                    |   |   |   |   |   |   |   |   |   |   |
|    Available-for-Sale:                         |   |   |   |   |   |   |   |   |   |   |
| Obligations of:                                               |   |   |   |   |   |   |   |   |   |   |
| U.S. government sponsored agencies                            |   | $ | — |  |   | $ | 2,044 |  |   | $ | — |  |   | $ | — |  |   | $ | 2,044 |  |
| Residential mortgage-backed securities-GSE                    |   | — |  |   | — |  |   | 2,367 |  |   | 287,778 |  |   | 290,145 |  |
| Residential mortgage-backed securities-Private                |   | — |  |   | — |  |   | — |  |   | 17,271 |  |   | 17,271 |  |
| Commercial mortgage-backed securities-GSE                     |   | — |  |   | — |  |   | 21,958 |  |   | — |  |   | 21,958 |  |
| Commercial mortgage-backed securities-Private                 |   | — |  |   | — |  |   | — |  |   | 10,215 |  |   | 10,215 |  |
| Corporate Notes                                               |   | 8,407 |  |   | — |  |   | — |  |   | — |  |   | 8,407 |  |
| Total available-for-sale securities                           |   | 8,407 |  |   | 2,044 |  |   | 24,325 |  |   | 315,264 |  |   | 350,040 |  |
|    Held-to-Maturity:                           |   |   |   |   |   |   |   |   |   |   |
| Residential mortgage-backed securities-GSE                    |   | — |  |   | — |  |   | — |  |   | 130,877 |  |   | 130,877 |  |
| Commercial mortgage-backed securities-Private                 |   | — |  |   | — |  |   | — |  |   | 9,998 |  |   | 9,998 |  |
| Total held-to-maturity securities                             |   | — |  |   | — |  |   | — |  |   | 140,875 |  |   | 140,875 |  |
| Total investment securities                                   |   | $ | 8,407 |  |   | $ | 2,044 |  |   | $ | 24,325 |  |   | $ | 456,139 |  |   | $ | 490,915 |  |
|        Total average yield |   | 1.35 | % |   | 1.08 | % |   | 2.03 | % |   | 2.62 | % |   | 2.56 | % |

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|                                                               |
|---------------------------------------------------------------|
|                                                               |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (dollars in thousands)                                        |   | Within 1Year |   | 1 to 5Years |   | 5 to 10Years |   | Over 10Years |   | No Stated Maturity |   | Total |
| Amortized Cost                                                |   |   |   |   |   |   |   |   |   |   |   |   |
|    Available-for-Sale:                         |   |   |   |   |   |   |   |   |   |   |   |   |
| Obligations of:                                               |   |   |   |   |   |   |   |   |   |   |   |   |
| U.S. government sponsored agencies                            |   | $ | — |  |   | $ | 2,051 |  |   | $ | — |  |   | $ | — |  |   | $ | — |  |   | $ | 2,051 |  |
| Residential mortgage-backed securities-GSE                    |   | — |  |   | — |  |   | 7,773 |  |   | 356,740 |  |   | — |  |   | 364,513 |  |
| Residential mortgage-backed securities-Private                |   | — |  |   | — |  |   | — |  |   | 19,770 |  |   | — |  |   | 19,770 |  |
| Commercial mortgage-backed securities-GSE                     |   | — |  |   | — |  |   | 22,767 |  |   | — |  |   | — |  |   | 22,767 |  |
| Commercial mortgage-backed securities-Private                 |   | — |  |   | — |  |   | — |  |   | 10,408 |  |   | — |  |   | 10,408 |  |
| Business Development Company Investment                       |   | — |  |   | — |  |   | — |  |   | — |  |   | 1,753 |  |   | 1,753 |  |
| Corporate notes                                               |   | 8,404 |  |   | 8,391 |  |   | — |  |   | — |  |   | — |  |   | 16,795 |  |
| Total available-for-sale securities                           |   | 8,404 |  |   | 10,442 |  |   | 30,540 |  |   | 386,918 |  |   | 1,753 |  |   | 438,057 |  |
|    Held-to-Maturity:                           |   |   |   |   |   |   |   |   |   |   |   |   |
| Residential mortgage-backed securities-GSE                    |   | — |  |   | — |  |   | — |  |   | 141,724 |  |   | — |  |   | 141,724 |  |
| Commercial mortgage-backed securities-Private                 |   | — |  |   | — |  |   | — |  |   | 10,071 |  |   | — |  |   | 10,071 |  |
| Total held-to-maturity securities                             |   | — |  |   | — |  |   | — |  |   | 151,795 |  |   | — |  |   | 151,795 |  |
| Total investment securities                                   |   | $ | 8,404 |  |   | $ | 10,442 |  |   | $ | 30,540 |  |   | $ | 538,713 |  |   | $ | 1,753 |  |   | $ | 589,852 |  |
|                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
| Fair Value                                                    |   |   |   |   |   |   |   |   |   |   |   |   |
|    Available-for-Sale:                         |   |   |   |   |   |   |   |   |   |   |   |   |
| Obligations of:                                               |   |   |   |   |   |   |   |   |   |   |   |   |
| U.S. government sponsored agencies                            |   | $ | — |  |   | $ | 2,077 |  |   | $ | — |  |   | $ | — |  |   | $ | — |  |   | $ | 2,077 |  |
| Residential mortgage-backed securities-GSE                    |   | — |  |   | — |  |   | 8,029 |  |   | 333,118 |  |   | — |  |   | 341,147 |  |
| Residential mortgage-backed securities-Private                |   | — |  |   | — |  |   | — |  |   | 20,752 |  |   | — |  |   | 20,752 |  |
| Commercial mortgage-backed securities-GSE                     |   | — |  |   | — |  |   | 21,439 |  |   | — |  |   | — |  |   | 21,439 |  |
| Commercial mortgage-backed securities-Private                 |   | — |  |   | — |  |   | — |  |   | 9,585 |  |   | — |  |   | 9,585 |  |
| Business Development Company investment                       |   | — |  |   | — |  |   | — |  |   | — |  |   | 2,737 |  |   | 2,737 |  |
| Corporate Notes                                               |   | 8,406 |  |   | 8,471 |  |   | — |  |   | — |  |   | — |  |   | 16,877 |  |
| Total available-for-sale securities                           |   | 8,406 |  |   | 10,548 |  |   | 29,468 |  |   | 363,455 |  |   | 2,737 |  |   | 414,614 |  |
|    Held-to-Maturity:                           |   |   |   |   |   |   |   |   |   |   |   |   |
| Residential mortgage-backed securities-GSE                    |   | — |  |   | — |  |   | — |  |   | 131,817 |  |   | — |  |   | 131,817 |  |
| Commercial mortgage-backed securities-Private                 |   | — |  |   | — |  |   | — |  |   | 9,308 |  |   | — |  |   | 9,308 |  |
| Total held-to-maturity securities                             |   | — |  |   | — |  |   | — |  |   | 141,125 |  |   | — |  |   | 141,125 |  |
| Total investment securities                                   |   | $ | 8,406 |  |   | $ | 10,548 |  |   | $ | 29,468 |  |   | $ | 504,580 |  |   | $ | 2,737 |  |   | $ | 555,739 |  |
|        Total average yield |   | 1.30 | % |   | 1.30 | % |   | 2.18 | % |   | 2.66 | % |   | — | % |   | 2.60 | % |

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|                                                               |
|---------------------------------------------------------------|
|                                                               |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (dollars in thousands)                                        |   | Within 1Year |   | 1 to 5Years |   | 5 to 10Years |   | Over 10Years |   | Total |
| Amortized Cost                                                |   |   |   |   |   |   |   |   |   |   |
| Obligations of:                                               |   |   |   |   |   |   |   |   |   |   |
| U.S. Treasury and government agencies                         |   | $ | — |  |   | $ | — |  |   | $ | — |  |   | $ | 6,646 |  |   | $ | 6,646 |  |
| U.S. government sponsored agencies                            |   | — |  |   | 22,118 |  |   | — |  |   | — |  |   | 22,118 |  |
| States and political subdivisions                             |   | 2,121 |  |   | 3,797 |  |   | — |  |   | — |  |   | 5,918 |  |
| Residential mortgage-backed securities-GSE                    |   | — |  |   | — |  |   | — |  |   | 436,344 |  |   | 436,344 |  |
| Residential mortgage-backed securities-Private                |   | — |  |   | — |  |   | — |  |   | 22,649 |  |   | 22,649 |  |
| Commercial mortgage-backed securities-GSE                     |   | — |  |   | — |  |   | 23,150 |  |   | — |  |   | 23,150 |  |
| Commercial mortgage-backed securities-Private                 |   | — |  |   | — |  |   | — |  |   | 5,283 |  |   | 5,283 |  |
| Corporate Notes                                               |   | 16,595 |  |   | 16,849 |  |   | 3,266 |  |   | — |  |   | 36,710 |  |
| Total available-for-sale securities                           |   | $ | 18,716 |  |   | $ | 42,764 |  |   | $ | 26,416 |  |   | $ | 470,922 |  |   | $ | 558,818 |  |
| Fair Value                                                    |   |   |   |   |   |   |   |   |   |   |
| Obligations of:                                               |   |   |   |   |   |   |   |   |   |   |
| U.S. Treasury and government agencies                         |   | $ | — |  |   | $ | — |  |   | $ | — |  |   | $ | 6,981 |  |   | $ | 6,981 |  |
| U.S. government sponsored agencies                            |   | — |  |   | 22,173 |  |   | — |  |   | — |  |   | 22,173 |  |
| States and political subdivisions                             |   | 2,130 |  |   | 3,908 |  |   | — |  |   | — |  |   | 6,038 |  |
| Residential mortgage-backed securities-GSE                    |   | — |  |   | — |  |   | — |  |   | 441,074 |  |   | 441,074 |  |
| Residential mortgage-backed securities-Private                |   | — |  |   | — |  |   | — |  |   | 22,945 |  |   | 22,945 |  |
| Commercial mortgage-backed securities-GSE                     |   | — |  |   | — |  |   | 23,359 |  |   | — |  |   | 23,359 |  |
| Commercial mortgage-backed securities-Private                 |   | — |  |   | — |  |   | — |  |   | 5,317 |  |   | 5,317 |  |
| Corporate Notes                                               |   | 16,721 |  |   | 16,993 |  |   | 3,249 |  |   | — |  |   | 36,963 |  |
| Total available-for-sale securities                           |   | $ | 18,851 |  |   | $ | 43,074 |  |   | $ | 26,608 |  |   | $ | 476,317 |  |   | $ | 564,850 |  |
|        Total average yield |   | 2.04 | % |   | 1.00 | % |   | 1.99 | % |   | 2.31 | % |   | 2.19 | % |

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|                             |
|-----------------------------|
|                             |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (dollars in thousands)      |   | December 31, |
|                        |   | 2014 |   | 2013 |   | 2012 |   | 2011 |   | 2010 |
| Loans held for sale         |   | $ | 2,796 |  |   |   |   | $ | 1,836 |  |   |   |   | $ | 6,974 |  |   |   |   | $ | 4,529 |  |   |   |   | $ | — |  |   |   |
| Loans held for investment:  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial and agricultural |   | $ | 113,413 |  |   | 8.3 | % |   | $ | 72,252 |  |   | 5.9 | % |   | $ | 79,704 |  |   | 6.8 | % |   | $ | 95,089 |  |   | 7.8 | % |   | $ | 93,747 |  |   | 7.2 | % |
| Real estate-construction    |   | 78,327 |  |   | 5.8 |  |   | 64,083 |  |   | 5.3 |  |   | 58,414 |  |   | 5.0 |  |   | 92,806 |  |   | 7.6 |  |   | 276,976 |  |   | 21.2 |  |
| Real estate-mortgage:       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 1-4 family residential      |   | 667,602 |  |   | 49.2 |  |   | 636,107 |  |   | 52.5 |  |   | 553,538 |  |   | 47.0 |  |   | 453,725 |  |   | 37.3 |  |   | 388,859 |  |   | 29.8 |  |
| Commercial                  |   | 426,328 |  |   | 31.4 |  |   | 394,924 |  |   | 32.6 |  |   | 441,836 |  |   | 37.5 |  |   | 531,383 |  |   | 43.6 |  |   | 494,861 |  |   | 38.0 |  |
| Consumer                    |   | 72,118 |  |   | 5.3 |  |   | 44,882 |  |   | 3.7 |  |   | 43,543 |  |   | 3.7 |  |   | 44,532 |  |   | 3.7 |  |   | 49,532 |  |   | 3.8 |  |
| Total                       |   | $ | 1,357,788 |  |   | 100.0 | % |   | $ | 1,212,248 |  |   | 100.0 | % |   | $ | 1,177,035 |  |   | 100.0 | % |   | $ | 1,217,535 |  |   | 100.0 | % |   | $ | 1,303,975 |  |   | 100.0 | % |

|                              |
|------------------------------|
|                              |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                         |   | December 31, 2014 |
| (dollars in thousands)       |   | One Yearor Less |   | One toFiveYears |   | Over FiveYears |   | Total |
| Commercial and agricultural  |   | $ | 37,787 |  |   | $ | 67,974 |  |   | $ | 7,652 |  |   | $ | 113,413 |  |
| Real estate-construction     |   | 16,917 |  |   | 48,452 |  |   | 12,958 |  |   | 78,327 |  |
| Total                        |   | $ | 54,704 |  |   | $ | 116,426 |  |   | $ | 20,610 |  |   | $ | 191,740 |  |
| Sensitivity to rate changes: |   |   |   |   |   |   |   |   |
| Fixed interest rates         |   | $ | 13,571 |  |   | $ | 62,134 |  |   | $ | 17,215 |  |   | $ | 92,920 |  |
| Variable interest rates      |   | 41,133 |  |   | 54,292 |  |   | 3,395 |  |   | 98,820 |  |
| Total                        |   | $ | 54,704 |  |   | $ | 116,426 |  |   | $ | 20,610 |  |   | $ | 191,740 |  |

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|                                   |
|-----------------------------------|
|                                   |  |  |  |  |  |  |  |  |
| (dollars in thousands)            |   |   |   |   |
|                              |   | 2014 |   | 2013 |
| Nonperforming Loans:              |   |   |   |   |
| Current, nonaccrual               |   | $ | 8,519 |  |   | $ | 10,613 |  |
| Delinquent 30-89 days, nonaccrual |   | 1,225 |  |   | 1,428 |  |
| Delinquent 90+ days, nonaccrual   |   | 15,544 |  |   | 23,124 |  |
| Delinquent 90+ days, accruing     |   | 5 |  |   | — |  |
| Total nonperforming loans         |   | $ | 25,293 |  |   | $ | 35,165 |  |

|                                                                                         |
|-----------------------------------------------------------------------------------------|
|                                                                                         |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                                                    |   | December 31, 2014 |   | December 31, 2013 |
| (dollars in thousands)                                                                  |   | Balance |   | AssociatedReserves |   | Balance |   | AssociatedReserves |
| Impaired loans, held for sale                                                           |   | $ | — |  |   | $ | — |  |   | $ | — |  |   | $ | — |  |
| Impaired loans, not individually reviewed for impairment                                |   | 4,967 |  |   | — |  |   | 4,612 |  |   | — |  |
| Impaired loans, individually reviewed, with no reserves                                 |   | 26,631 |  |   | — |  |   | 39,866 |  |   | — |  |
| Impaired loans, individually reviewed, with reserves                                    |   | 7,851 |  |   | 418 |  |   | 2,965 |  |   | 927 |  |
| Total impaired loans *                                                                  |   | $ | 39,449 |  |   | $ | 418 |  |   | $ | 47,443 |  |   | $ | 927 |  |
|                                                                                    |   |   |   |   |   |   |   |   |
| Purchased impaired loans with subsequent deterioration                                  |   | $ | 118,701 |  |   | $ | 3,237 |  |   | $ | 161,307 |  |   | $ | 5,560 |  |
| Purchased impaired loans with no subsequent deterioration                               |   | 4,141 |  |   | — |  |   | 344 |  |   | — |  |
| Total Reserves                                                                          |   |   |   | $ | 3,655 |  |   |   |   | $ | 6,487 |  |
|                                                                                    |   |   |   |   |   |   |   |   |
| Average impaired loans, excluding purchased impaired, calculated using a simple average |   | $ | 43,446 |  |   |   |   | $ | 65,527 |  |   |   |

|   |
|---|
|   |  |
| * | Included at December 31, 2014 and December 31, 2013 were $14.1 million and $12.1 million, respectively, in performing restructured loans. |

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|                                    |
|------------------------------------|
|                                    |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (dollars in thousands)             |   | December 31, 2014 |   | December 31, 2013 |
|                               |   | Balance |   | Nonaccrual |   | AssociatedReserves |   | Balance |   | Nonaccrual |   | AssociatedReserves |
| Troubled Debt Restructurings       |   |   |   |   |   |   |   |   |   |   |   |   |
| TDRs with no impairment            |   | $ | 12,389 |  |   | $ | 5,203 |  |   | $ | — |  |   | $ | 16,436 |  |   | $ | 5,666 |  |   | $ | — |  |
| TDRs with impairment               |   | 7,040 |  |   | 153 |  |   | 316 |  |   | 1,654 |  |   | 280 |  |   | 353 |  |
| Total Troubled Debt Restructurings |   | $ | 19,429 |  |   | $ | 5,356 |  |   | $ | 316 |  |   | $ | 18,090 |  |   | $ | 5,946 |  |   | $ | 353 |  |

|                                                 |
|-------------------------------------------------|
|                                                 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (dollars in thousands)                          |   | December 31, 2014 |   | December 31, 2013 |
|                                            |   | Impaired |   | Nonaccrual |   | AssociatedReserves |   | Impaired |   | Nonaccrual |   | AssociatedReserves |
| Impaired Loans (composition across loan types): |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial and agricultural                     |   | $ | 645 |  |   | $ | 608 |  |   | $ | 58 |  |   | $ | 522 |  |   | $ | 516 |  |   | $ | — |  |
| Real estate - construction                      |   | 3,145 |  |   | 2,307 |  |   | — |  |   | 5,601 |  |   | 4,677 |  |   | — |  |
| Real estate - mortgage:                         |   |   |   |   |   |   |   |   |   |   |   |   |
| 1 - 4 family residential                        |   | 14,421 |  |   | 8,637 |  |   | 331 |  |   | 16,915 |  |   | 11,580 |  |   | 927 |  |
| Commercial                                      |   | 20,882 |  |   | 13,380 |  |   | 29 |  |   | 24,393 |  |   | 18,380 |  |   | — |  |
| Consumer                                        |   | 356 |  |   | 356 |  |   | — |  |   | 12 |  |   | 12 |  |   | — |  |
| Total Impaired Loans                            |   | $ | 39,449 |  |   | $ | 25,288 |  |   | $ | 418 |  |   | $ | 47,443 |  |   | $ | 35,165 |  |   | $ | 927 |  |

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|                                                           |
|-----------------------------------------------------------|
|                                                           |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (dollars in thousands)                                    |   | 2014 |   | 2013 |   | 2012 |   | 2011 |   | 2010 |
| Balance, beginning of year                                |   | $ | 26,785 |  |   | $ | 29,314 |  |   | $ | 39,360 |  |   | $ | 93,687 |  |   | $ | 49,461 |  |
| Charge-offs:                                              |   |   |   |   |   |   |   |   |   |   |
| Commercial and agricultural                               |   | 1,449 |  |   | 1,277 |  |   | 3,494 |  |   | 10,832 |  |   | 9,832 |  |
| Real estate - construction                                |   | 719 |  |   | 1,080 |  |   | 11,084 |  |   | 65,526 |  |   | 53,374 |  |
| Real estate - mortgage                                    |   | 3,019 |  |   | 6,840 |  |   | 11,932 |  |   | 48,382 |  |   | 24,478 |  |
| Consumer                                                  |   | 2,516 |  |   | 4,147 |  |   | 4,458 |  |   | 3,684 |  |   | 3,566 |  |
| Total charge-offs                                         |   | 7,703 |  |   | 13,344 |  |   | 30,968 |  |   | 128,424 |  |   | 91,250 |  |
| Recoveries:                                               |   |   |   |   |   |   |   |   |   |   |
| Commercial and agricultural                               |   | 951 |  |   | 1,623 |  |   | 991 |  |   | 855 |  |   | 585 |  |
| Real estate - construction                                |   | 2,110 |  |   | 2,681 |  |   | 3,237 |  |   | 2,637 |  |   | 52 |  |
| Real estate - mortgage                                    |   | 2,352 |  |   | 4,314 |  |   | 1,425 |  |   | 1,722 |  |   | 449 |  |
| Consumer                                                  |   | 1,221 |  |   | 1,674 |  |   | 1,220 |  |   | 1,521 |  |   | 1,635 |  |
| Total recoveries                                          |   | 6,634 |  |   | 10,292 |  |   | 6,873 |  |   | 6,735 |  |   | 2,721 |  |
| Net charge-offs                                           |   | 1,069 |  |   | 3,052 |  |   | 24,095 |  |   | 121,689 |  |   | 88,529 |  |
| (Recovery) Provision charged to operations                |   | (5,371 | ) |   | 523 |  |   | 14,049 |  |   | 67,362 |  |   | 132,755 |  |
| Discontinued operations                                   |   | — |  |   | — |  |   | — |  |   | — |  |   | — |  |
| Balance, end of year                                      |   | $ | 20,345 |  |   | $ | 26,785 |  |   | $ | 29,314 |  |   | $ | 39,360 |  |   | $ | 93,687 |  |
| Nonperforming assets:                                     |   |   |   |   |   |   |   |   |   |   |
| Nonaccrual loans                                          |   | $ | 25,288 |  |   | $ | 35,165 |  |   | $ | 79,242 |  |   | $ | 102,973 |  |   | $ | 325,068 |  |
| Past due 90 days or more and still accruing interest      |   | 5 |  |   | — |  |   | 227 |  |   | 3,000 |  |   | 4,818 |  |
| Total nonperforming loans                                 |   | 25,293 |  |   | 35,165 |  |   | 79,469 |  |   | 105,973 |  |   | 329,886 |  |
| Other real estate owned                                   |   | 20,122 |  |   | 28,353 |  |   | 62,796 |  |   | 110,009 |  |   | 62,058 |  |
| Foreclosed assets                                         |   | 289 |  |   | 42 |  |   | 335 |  |   | 377 |  |   | 138 |  |
| Discontinued operations                                   |   | — |  |   | — |  |   | — |  |   | — |  |   | 168 |  |
| Total nonperforming assets                                |   | $ | 45,704 |  |   | $ | 63,560 |  |   | $ | 142,600 |  |   | $ | 216,359 |  |   | $ | 392,250 |  |
| Accruing troubled debt restructured loans                 |   | $ | 14,073 |  |   | $ | 12,144 |  |   | $ | 4,505 |  |   | $ | 2,922 |  |   | $ | 8,752 |  |
| Asset quality ratios:                                     |   |   |   |   |   |   |   |   |   |   |
| Net loan charge-offs to average loans held for investment |   | 0.08 | % |   | 0.26 | % |   | 1.94 | % |   | 10.75 | % |   | 5.92 | % |
| Net loan charge-offs to allowance for loan losses         |   | 5.25 |  |   | 11.39 |  |   | 82.20 |  |   | 309.17 |  |   | 94.49 |  |
| Allowance for loan losses to loans held for investment    |   | 1.50 |  |   | 2.21 |  |   | 2.49 |  |   | 3.23 |  |   | 7.18 |  |
| Total nonperforming loans to loans held for investment    |   | 1.86 |  |   | 2.90 |  |   | 6.75 |  |   | 8.70 |  |   | 25.30 |  |

|                                 |
|---------------------------------|
|                                 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (dollars in thousands)          |   | December 31, |
|                            |   | 2014 | 2013 | 2012 | 2011 | 2010 |
|                            |   | Amount | % of total |  | Amount | % of total |  | Amount | % of total |  | Amount | % of total |  | Amount | % of total |  |
| Commercial and agricultural     |   | $ | 3,915 |  | 19.2 |  | $ | 2,931 |  | 10.9 |  | $ | 3,238 |  | 11.1 |  | $ | 5,776 |  | 14.7 |  | $ | 11,144 |  | 11.9 |  |
| Real estate - construction      |   | 3,163 |  | 15.5 |  | 5,233 |  | 19.5 |  | 4,987 |  | 17.0 |  | 11,995 |  | 30.5 |  | 46,792 |  | 50.0 |  |
| Real estate - mortgage          |   | 10,026 |  | 49.3 |  | 16,064 |  | 60.0 |  | 18,328 |  | 62.5 |  | 19,948 |  | 50.7 |  | 34,593 |  | 36.9 |  |
| Consumer                        |   | 3,241 |  | 16.0 |  | 2,557 |  | 9.6 |  | 2,761 |  | 9.4 |  | 1,641 |  | 4.1 |  | 1,158 |  | 1.2 |  |
| Total allowance for loan losses |   | $ | 20,345 |  | 100.0 |  | $ | 26,785 |  | 100.0 |  | $ | 29,314 |  | 100.0 |  | $ | 39,360 |  | 100.0 |  | $ | 93,687 |  | 100.0 |  |

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|                                     |
|-------------------------------------|
|                                     |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                |   | 2014 |   | 2013 |
| (dollars in thousands)              |   |   |   | Change from PriorYear |   |   |   | Change from PriorYear |
|                                |   | Balance |   | Amount |   | % |   | Balance |   | Amount |   | % |
| Year End Balances                   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing deposits:          |   |   |   |   |   |   |   |   |   |   |   |   |
| Demand deposits                     |   | $ | 358,162 |  |   | $ | 10,371 |  |   | 3.0 |  % |   | $ | 347,791 |  |   | $ | (14,615 | ) |   | (4.0 | )% |
| Savings deposits                    |   | 86,686 |  |   | 6,179 |  |   | 7.7 |  |   | 80,507 |  |   | 6,071 |  |   | 8.2 |  |
| Money market deposits               |   | 437,484 |  |   | (10,188 | ) |   | (2.3 | ) |   | 447,672 |  |   | (8,062 | ) |   | (1.8 | ) |
| Total                               |   | 882,332 |  |   | 6,362 |  |   | 0.7 |  |   | 875,970 |  |   | (16,606 | ) |   | (1.9 | ) |
| Time deposits                       |   | 588,312 |  |   | 6,038 |  |   | 1.0 |  |   | 582,274 |  |   | (180,903 | ) |   | (23.7 | ) |
| Total interest-bearing deposits     |   | 1,470,644 |  |   | 12,400 |  |   | 0.9 |  |   | 1,458,244 |  |   | (197,509 | ) |   | (11.9 | ) |
| Noninterest-bearing demand deposits |   | 323,776 |  |   | 33,315 |  |   | 11.5 |  |   | 290,461 |  |   | 39,226 |  |   | 15.6 |  |
| Total deposits                      |   | $ | 1,794,420 |  |   | $ | 45,715 |  |   | 2.6 |  |   | $ | 1,748,705 |  |   | $ | (158,283 | ) |   | (8.3 | ) |
| Average Balances                    |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing deposits:          |   |   |   |   |   |   |   |   |   |   |   |   |
| Demand deposits                     |   | $ | 340,525 |  |   | $ | (6,246 | ) |   | (1.8 | )% |   | $ | 346,771 |  |   | $ | (2,517 | ) |   | (0.7 | )% |
| Savings deposits                    |   | 84,921 |  |   | 5,270 |  |   | 6.6 |  |   | 79,651 |  |   | 7,057 |  |   | 9.7 |  |
| Money market deposits               |   | 436,126 |  |   | (12,256 | ) |   | (2.7 | ) |   | 448,382 |  |   | 5,347 |  |   | 1.2 |  |
| Total                               |   | 861,572 |  |   | (13,232 | ) |   | (1.5 | ) |   | 874,804 |  |   | 9,887 |  |   | 1.1 |  |
| Time deposits                       |   | 581,498 |  |   | (68,894 | ) |   | (10.6 | ) |   | 650,392 |  |   | (258,233 | ) |   | (28.4 | ) |
| Total interest-bearing deposits     |   | 1,443,070 |  |   | (82,126 | ) |   | (5.4 | ) |   | 1,525,196 |  |   | (248,346 | ) |   | (14.0 | ) |
| Noninterest-bearing demand deposits |   | 315,401 |  |   | 31,023 |  |   | 10.9 |  |   | 284,378 |  |   | 30,495 |  |   | 12.0 |  |
| Total deposits                      |   | $ | 1,758,471 |  |   | $ | (51,103 | ) |   | (2.8 | ) |   | $ | 1,809,574 |  |   | $ | (217,851 | ) |   | (10.7 | ) |

|                                 |
|---------------------------------|
|                                 |  |  |  |  |  |  |  |  |  |  |  |  |
| (dollars in thousands)          |   | 2014 |   | 2013 |   | 2012 |
| Balance at December 31     |   | $ | 9,076 |  |   | $ | 6,917 |  |   | $ | 8,675 |  |
| Average balance during the year |   | 7,713 |  |   | 9,852 |  |   | 9,861 |  |
| Maximum month end balance       |   | 12,217 |  |   | 13,064 |  |   | 12,720 |  |
| Weighted average interest rate: |   |   |   |   |   |   |
| At December 31             |   | 0.21 | % |   | 0.21 | % |   | 0.19 | % |
| During the year                 |   | 0.21 |  |   | 0.21 |  |   | 0.29 |  |

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|         |                                                                                                                                                                            |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | “Average tangible shareholders’ equity” is average shareholders’ equity reduced by average recorded goodwill, and average other intangible assets. |

|         |                                                                                                                                          |
|---------|------------------------------------------------------------------------------------------------------------------------------------------|
| • | “Average tangible assets” are average total assets reduced by average recorded goodwill and average other intangible assets. |

|         |                                                                                                                                          |
|---------|------------------------------------------------------------------------------------------------------------------------------------------|
| • | “Tangible shareholders’ equity” is shareholders’ equity reduced by recorded goodwill and other intangible assets |

|         |                                                                                                          |
|---------|----------------------------------------------------------------------------------------------------------|
| • | “Tangible assets” are total assets reduced by recorded goodwill and other intangible assets. |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | “Tangible book value” is defined as total equity reduced by recorded goodwill, other intangible assets and preferred stock divided by total common shares outstanding. This measure discloses changes from period-to-period in book value per share exclusive of changes in intangible assets and preferred stock. Goodwill, an intangible asset that is recorded in a purchase business combination, has the effect of increasing total book value while not increasing the tangible assets of a company. Companies utilizing purchase accounting in a business combination, as required by GAAP, must record goodwill related to such transactions. |

|         |                                                                                                                                                                                                                                                                                                                 |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | "PCNR Noninterest Expense" ("NIE") is defined as total noninterest expense reduced by credit-related and non-recurring noninterest expense. This measure reduces noninterest expense by items which are elevated during periods of elevated problem asset activity and items which are non-recurring in nature. |

|         |                                                                                                                                    |
|---------|------------------------------------------------------------------------------------------------------------------------------------|
| • | “PCNR Noninterest Income "("NII") is defined as total noninterest income reduced by items which are non-recurring in nature. |

|         |                                                                                                                                                                                                                                                                                                                                                                                                    |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | "PCNR Earnings" is defined as income (loss), before income taxes, adjusted by credit-related and non-recurring items, and increased by provision for loan losses or decreased by recovery of loan losses. This measure identifies the Company's pre-tax earnings excluding items which are elevated during periods of elevated problem asset activity and items which are non-recurring in nature. |

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|                                                        |
|--------------------------------------------------------|
|                                                        |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (dollars in thousands, except per share data)          |   | At and for the Year Ended December 31, |
|                                                   |   | 2014 |   | 2013 |   | 2012 |   | 2011 |   | 2010 |
| Total average shareholders’ equity               |   | $ | 91,151 |  |   | $ | 85,576 |  |   | $ | 114,684 |  |   | $ | (22,809 | ) |   | $ | 68,190 |  |
| Less:                                                  |   |   |   |   |   |   |   |   |   |   |
| Average goodwill                                       |   | (4,205 | ) |   | (4,205 | ) |   | (4,130 | ) |   | (574 | ) |   | — |  |
| Average core deposit and other intangibles             |   | (6,271 | ) |   | (7,207 | ) |   | (8,221 | ) |   | (8,676 | ) |   | (4,571 | ) |
| Average tangible shareholders’ equity (non-GAAP) |   | $ | 80,675 |  |   | $ | 74,164 |  |   | $ | 102,333 |  |   | $ | (32,059 | ) |   | $ | 63,619 |  |
|                                                   |   |   |   |   |   |   |   |   |   |   |
| Total average assets                                   |   | $ | 2,005,948 |  |   | $ | 2,047,146 |  |   | $ | 2,291,541 |  |   | $ | 1,911,943 |  |   | $ | 2,036,603 |  |
| Less:                                                  |   |   |   |   |   |   |   |   |   |   |
| Average goodwill                                       |   | (4,205 | ) |   | (4,205 | ) |   | (4,130 | ) |   | (574 | ) |   | — |  |
| Average core deposit and other intangibles             |   | (6,271 | ) |   | (7,207 | ) |   | (8,221 | ) |   | (8,676 | ) |   | (4,571 | ) |
| Average tangible assets (non-GAAP)                     |   | $ | 1,995,472 |  |   | $ | 2,035,734 |  |   | $ | 2,279,190 |  |   | $ | 1,902,693 |  |   | $ | 2,032,032 |  |
|                                                   |   |   |   |   |   |   |   |   |   |   |
| Total shareholders’ equity                       |   | $ | 266,916 |  |   | $ | 80,361 |  |   | $ | 98,445 |  |   | $ | 129,015 |  |   | $ | (28,837 | ) |
| Less:                                                  |   |   |   |   |   |   |   |   |   |   |
| Goodwill                                               |   | (4,205 | ) |   | (4,205 | ) |   | (4,205 | ) |   | (3,905 | ) |   | — |  |
| Core deposit and other intangibles                     |   | (5,681 | ) |   | (6,914 | ) |   | (7,495 | ) |   | (8,177 | ) |   | (4,173 | ) |
| Tangible shareholders’ equity (non-GAAP)         |   | $ | 257,030 |  |   | $ | 69,242 |  |   | $ | 86,745 |  |   | $ | 116,933 |  |   | $ | (33,010 | ) |
|                                                   |   |   |   |   |   |   |   |   |   |   |
| Total assets                                           |   | $ | 2,215,514 |  |   | $ | 1,985,032 |  |   | $ | 2,151,565 |  |   | $ | 2,409,108 |  |   | $ | 1,902,369 |  |
| Less:                                                  |   |   |   |   |   |   |   |   |   |   |
| Goodwill                                               |   | (4,205 | ) |   | (4,205 | ) |   | (4,205 | ) |   | (3,905 | ) |   | — |  |
| Core deposit and other intangibles                     |   | (5,681 | ) |   | (6,914 | ) |   | (7,495 | ) |   | (8,177 | ) |   | (4,173 | ) |
| Tangible assets (non-GAAP)                             |   | $ | 2,205,628 |  |   | $ | 1,973,913 |  |   | $ | 2,139,865 |  |   | $ | 2,397,026 |  |   | $ | 1,898,196 |  |
|                                                   |   |   |   |   |   |   |   |   |   |   |
| Book value per common share                            |   | $ | 11.04 |  |   | $ | 3.68 |  |   | $ | 4.54 |  |   | $ | 6.11 |  |   | $ | (714.72 | ) |
| Less effect of intangible assets                       |   | (0.41 | ) |   | (0.51 | ) |   | (0.54 | ) |   | (0.57 | ) |   | (36.52 | ) |
| Tangible book value per common share (non-GAAP)        |   | $ | 10.63 |  |   | $ | 3.17 |  |   | $ | 4.00 |  |   | $ | 5.54 |  |   | $ | (751.24 | ) |

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|                                                                         |
|-------------------------------------------------------------------------|
|                                                                         |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (dollars in thousands)                                                  |   | For the Year Ended December 31, |
|                                                                    |   | 2014 |   | 2013 |   | 2012 |   | 2011 |   | 2010 |
| Income (Loss) from continuing operations before income taxes            |   | $ | 7,966 |  |   | $ | (157 | ) |   | $ | (41,017 | ) |   | $ | (130,877 | ) |   | $ | (129,162 | ) |
| Plus:                                                                   |   |   |   |   |   |   |   |   |   |   |
|      Other real estate owned expense           |   | 1,758 |  |   | 4,138 |  |   | 27,883 |  |   | 51,424 |  |   | 14,532 |  |
|      US Treasury sale expenses                 |   | 409 |  |   | — |  |   | — |  |   | — |  |   | — |  |
|      Executive severance                       |   | 2,060 |  |   | — |  |   | — |  |   | — |  |   | — |  |
|      Loan collection expense                   |   | 1,576 |  |   | 4,333 |  |   | 3,274 |  |   | 5,032 |  |   | 1,001 |  |
|      Merger-related expense                    |   | — |  |   | 3,498 |  |   | 3,241 |  |   | 1,236 |  |   |   |
|      Mortgage and litigation accruals          |   | (68 | ) |   | (487 | ) |   | 1,100 |  |   | — |  |   | — |  |
|      Rebranding                                |   | — |  |   | 616 |  |   | 397 |  |   | — |  |   | — |  |
|      Branch closure and restructuring expenses |   | 1,756 |  |   | 675 |  |   | 96 |  |   | — |  |   | — |  |
|      Mortgage servicing rights impairment      |   | — |  |   | — |  |   | — |  |   | — |  |   | 2,995 |  |
|      Loss on sale of loans held for sale       |   | — |  |   | — |  |   | — |  |   | 1,241 |  |   | — |  |
|      Prepayment penalty on borrowings          |   | — |  |   | — |  |   | — |  |   | 1,605 |  |   | 959 |  |
|      Provision for (recovery of) loan losses   |   | (5,371 | ) |   | 523 |  |   | 14,049 |  |   | 67,362 |  |   | 132,755 |  |
| Less:                                                                   |   |   |   |   |   |   |   |   |   |   |
|      Securities gains (losses), net            |   | 974 |  |   | 2,772 |  |   | 4,121 |  |   | 7,298 |  |   | 10,647 |  |
|      Gain on extinguishment of debt            |   | — |  |   | — |  |   | — |  |   | 1,625 |  |   | — |  |
|      Net (loss) gain on fair value swap        |   | — |  |   | — |  |   | — |  |   | (339 | ) |   | 273 |  |
| PCNR earnings (non-GAAP)                                                |   | $ | 9,112 |  |   | $ | 10,367 |  |   | $ | 4,902 |  |   | $ | (11,561 | ) |   | $ | 12,160 |  |

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

|         |                                                                                                                                                 |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Improvements in the asset quality of the loan portfolio and diminishment of credit-related losses that were the source of the Company's losses; |

|         |                                                                                                                                                                                 |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Implementation of strong internal controls making it unlikely that the large volume of troubled loans leading to the Company’s losses between 2008 and 2012 will reoccur; |

|         |                                                                   |
|---------|-------------------------------------------------------------------|
| • | The increased remoteness and diminished relevance of such losses; |

|         |                                                                                                          |
|---------|----------------------------------------------------------------------------------------------------------|
| • | Continued improvement of the Company’s financial metrics and six consecutive quarters of earnings; |

|         |                                                                                                             |
|---------|-------------------------------------------------------------------------------------------------------------|
| • | A credible forecast of future taxable income based on management’s demonstrated forecasting accuracy; |

|         |                                                                                                               |
|---------|---------------------------------------------------------------------------------------------------------------|
| • | Various cost-reduction initiatives that will have a continuing positive effect on earnings in future periods; |

|         |                                              |
|---------|----------------------------------------------|
| • | Availability of tax planning strategies, and |

|         |                                  |
|---------|----------------------------------|
| • | Long-dated carryforward periods. |

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|               |
|---------------|
|               |  |
| Item 7A. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK |

|                                          |
|------------------------------------------|
|                                          |  |
| Changes in Interest Rates (basis points) | Percentage Change in  NetInterest Income –12 Months |
| +200                                     | 0.72% |
| +100                                     | 0.34% |
|  -100                               | -0.71% |
|  -200                               | -3.59% |

|                                         |
|-----------------------------------------|
|                                         |  |
| Change in Interest Rates (basis points) | PercentageChange in EVE |
| +200                                    | -4.67% |
| +100                                    | -1.97% |
|  -100                              | 2.71% |
|  -200                              | 1.09% |

----

|              |
|--------------|
|              |  |
| Item 8. | FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA |

|                                                     |
|-----------------------------------------------------|
|                                                     |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (dollars in thousands, except per share data)       |   | 2014 |
|                                                |   | 4th Qtr |   | 3rd Qtr |   | 2nd Qtr |   | 1st Qtr |
| Interest income                                     |   | $ | 19,271 |  |   | $ | 18,395 |  |   | $ | 18,263 |  |   | $ | 17,927 |  |
| Interest expense                                    |   | 2,550 |  |   | 2,547 |  |   | 2,545 |  |   | 2,448 |  |
| Net interest income                                 |   | 16,721 |  |   | 15,848 |  |   | 15,718 |  |   | 15,479 |  |
| Recovery of loan losses                             |   | (1,323 | ) |   | (1,679 | ) |   | (1,685 | ) |   | (684 | ) |
| Net interest income after provision for loan losses |   | 18,044 |  |   | 17,527 |  |   | 17,403 |  |   | 16,163 |  |
| Noninterest income                                  |   | 4,543 |  |   | 3,985 |  |   | 4,893 |  |   | 3,943 |  |
| Noninterest expense                                 |   | 20,446 |  |   | 20,015 |  |   | 19,268 |  |   | 18,806 |  |
| Income before income taxes                          |   | 2,141 |  |   | 1,497 |  |   | 3,028 |  |   | 1,300 |  |
| Income taxes expense (benefit)                      |   | (142,475 | ) |   | (276 | ) |   | 236 |  |   | 23 |  |
| Net income                                          |   | $ | 144,616 |  |   | $ | 1,773 |  |   | $ | 2,792 |  |   | $ | 1,277 |  |
| Net income per share - basic and diluted            |   | $ | 6.62 |  |   | $ | 0.08 |  |   | $ | 0.13 |  |   | $ | 0.06 |  |
|                                                |   |   |   |   |   |   |   |   |
|                                                |   | 2013 |
|                                                |   | 4th Qtr |   | 3rd Qtr |   | 2nd Qtr |   | 1st Qtr |
| Interest income                                     |   | $ | 18,932 |  |   | $ | 19,853 |  |   | $ | 18,137 |  |   | $ | 18,070 |  |
| Interest expense                                    |   | 2,468 |  |   | 2,471 |  |   | 2,723 |  |   | 2,897 |  |
| Net interest income                                 |   | 16,464 |  |   | 17,382 |  |   | 15,414 |  |   | 15,173 |  |
| Provision for (recovery of) loan losses             |   | 1,820 |  |   | (350 | ) |   | (1,057 | ) |   | 110 |  |
| Net interest income after provision for loan losses |   | 14,644 |  |   | 17,732 |  |   | 16,471 |  |   | 15,063 |  |
| Noninterest income                                  |   | 4,147 |  |   | 4,487 |  |   | 5,247 |  |   | 6,533 |  |
| Noninterest expense                                 |   | 17,550 |  |   | 17,927 |  |   | 24,665 |  |   | 24,339 |  |
| Income (Loss) before income taxes                   |   | 1,241 |  |   | 4,292 |  |   | (2,947 | ) |   | (2,743 | ) |
| Income taxes expense (benefit)                      |   | (1,049 | ) |   | 286 |  |   | 236 |  |   | 1,853 |  |
| Net income (loss)                                   |   | $ | 2,290 |  |   | $ | 4,006 |  |   | $ | (3,183 | ) |   | $ | (4,596 | ) |
| Net income (loss) per share - basic and diluted     |   | $ | 0.11 |  |   | $ | 0.18 |  |   | $ | (0.15 | ) |   | $ | (0.21 | ) |

----

----

----

|                                                                                                                        |
|------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                        |  |  |  |  |  |  |  |  |
| (in thousands, except share and per share data)                                                                        |   | December 31, 2014 |   | December 31, 2013 |
| Assets                                                                                                                 |   |   |   |   |
| Cash and due from banks                                                                                                |   | $ | 29,202 |  |   | $ | 31,917 |  |
| Interest-bearing bank balances                                                                                         |   | 66,680 |  |   | 35,513 |  |
| Investment securities:                                                                                                 |   |   |   |   |
| Available-for-sale, at estimated fair value (amortized cost of $354,924 in 2014 and $438,057 in 2013)                  |   | 350,040 |  |   | 414,614 |  |
| Held-to-maturity (estimated fair value of $140,875 in 2014 and $141,125 in 2013)                                       |   | 142,461 |  |   | 151,795 |  |
| Loans held for sale                                                                                                    |   | 2,796 |  |   | 1,836 |  |
| Loans held for investment                                                                                              |   | 1,357,788 |  |   | 1,212,248 |  |
| Less: Allowance for loan losses                                                                                        |   | (20,345 | ) |   | (26,785 | ) |
| Net loans held for investment                                                                                          |   | 1,337,443 |  |   | 1,185,463 |  |
| Premises and equipment, net                                                                                            |   | 46,782 |  |   | 50,889 |  |
| Other real estate owned and property acquired in settlement of loans                                                   |   | 20,411 |  |   | 28,395 |  |
| Core deposit premiums and other intangibles                                                                            |   | 5,681 |  |   | 6,914 |  |
| Goodwill                                                                                                               |   | 4,205 |  |   | 4,205 |  |
| Bank-owned life insurance                                                                                              |   | 39,946 |  |   | 39,940 |  |
| Deferred tax assets, net                                                                                               |   | 146,433 |  |   | 10,215 |  |
| Other assets                                                                                                           |   | 23,434 |  |   | 23,336 |  |
| Total Assets                                                                                                           |   | $ | 2,215,514 |  |   | $ | 1,985,032 |  |
| Liabilities                                                                                                            |   |   |   |   |
| Deposits:                                                                                                              |   |   |   |   |
| Noninterest-bearing demand deposits                                                                                    |   | $ | 323,776 |  |   | $ | 290,461 |  |
| Interest-bearing deposits:                                                                                             |   |   |   |   |
| Demand, savings and money market deposits                                                                              |   | 882,332 |  |   | 875,970 |  |
| Time deposits of $250 or more                                                                                          |   | 49,967 |  |   | 35,368 |  |
| Other time deposits                                                                                                    |   | 538,345 |  |   | 546,906 |  |
| Total deposits                                                                                                         |   | 1,794,420 |  |   | 1,748,705 |  |
| Retail repurchase agreements                                                                                           |   | 9,076 |  |   | 6,917 |  |
| Federal Home Loan Bank advances                                                                                        |   | 68,234 |  |   | 73,283 |  |
| Long-term notes payable                                                                                                |   | 5,338 |  |   | 5,263 |  |
| Junior subordinated debentures                                                                                         |   | 56,702 |  |   | 56,702 |  |
| Other liabilities                                                                                                      |   | 14,828 |  |   | 13,801 |  |
| Total Liabilities                                                                                                      |   | 1,948,598 |  |   | 1,904,671 |  |
| Shareholders' Equity                                                                                                   |   |   |   |   |
| Preferred stock, 10,000,000 shares authorized                                                                          |   |   |   |   |
|    Series A, $10.00 par value; 51,500 shares issued and no shares outstanding in 2014 and 2013          |   | — |  |   | — |  |
|    Series B, no par value; authorized 250,000 shares, no shares issued and outstanding in 2014 and 2013 |   | — |  |   | — |  |
| Common stock, no par value; authorized 2,500,000,000 shares, issued 24,185,923 in 2014 and 21,861,418 shares in 2013   |   | 487,603 |  |   | 461,636 |  |
| Accumulated deficit                                                                                                    |   | (213,212 | ) |   | (363,670 | ) |
| Accumulated other comprehensive loss                                                                                   |   | (7,475 | ) |   | (17,605 | ) |
| Total Shareholders' Equity                                                                                             |   | 266,916 |  |   | 80,361 |  |
| Total Liabilities and Shareholders' Equity                                                                             |   | $ | 2,215,514 |  |   | $ | 1,985,032 |  |

----

Table of Contents

|                                                               |
|---------------------------------------------------------------|
|                                                               |  |  |  |  |  |  |  |  |  |  |  |  |
| (in thousands, except share and per share data)               |   | Years Ended December 31, |
|                                                          |   | 2014 |   | 2013 |   | 2012 |
| Interest Income                                               |   |   |   |   |   |   |
| Interest and fees on loans                                    |   | $ | 59,183 |  |   | $ | 60,147 |  |   | $ | 65,987 |  |
| Interest and dividends on investment securities               |   | 14,068 |  |   | 14,180 |  |   | 10,778 |  |
| Other interest income                                         |   | 605 |  |   | 665 |  |   | 1,223 |  |
| Total interest income                                         |   | 73,856 |  |   | 74,992 |  |   | 77,988 |  |
| Interest Expense                                              |   |   |   |   |   |   |
| Deposits                                                      |   | 6,909 |  |   | 8,070 |  |   | 14,074 |  |
| Retail repurchase agreements                                  |   | 16 |  |   | 21 |  |   | 29 |  |
| Federal Home Loan Bank advances                               |   | 2,020 |  |   | 1,376 |  |   | 1,448 |  |
| Other borrowed funds                                          |   | 1,145 |  |   | 1,092 |  |   | 1,157 |  |
| Total interest expense                                        |   | 10,090 |  |   | 10,559 |  |   | 16,708 |  |
| Net Interest Income before Provision for Loan Losses          |   | 63,766 |  |   | 64,433 |  |   | 61,280 |  |
| Provision for (Recovery of) loan losses                       |   | (5,371 | ) |   | 523 |  |   | 14,049 |  |
| Net Interest Income after Provision for Loan Losses           |   | 69,137 |  |   | 63,910 |  |   | 47,231 |  |
| Noninterest Income                                            |   |   |   |   |   |   |
| Service charges on deposit accounts                           |   | 6,351 |  |   | 6,714 |  |   | 7,080 |  |
| Mortgage loan income                                          |   | 881 |  |   | 2,319 |  |   | 2,065 |  |
| Cardholder and merchant services income                       |   | 4,803 |  |   | 4,531 |  |   | 4,579 |  |
| Trust and investment services                                 |   | 1,495 |  |   | 1,305 |  |   | 1,036 |  |
| Bank-owned life insurance                                     |   | 1,153 |  |   | 1,073 |  |   | 1,195 |  |
| Other service charges, commissions and fees                   |   | 1,340 |  |   | 1,315 |  |   | 1,128 |  |
| Securities gains, net                                         |   | 974 |  |   | 2,772 |  |   | 4,121 |  |
| Other income                                                  |   | 367 |  |   | 385 |  |   | 754 |  |
| Total noninterest income                                      |   | 17,364 |  |   | 20,414 |  |   | 21,958 |  |
| Noninterest Expense                                           |   |   |   |   |   |   |
| Personnel expense                                             |   | 43,682 |  |   | 40,661 |  |   | 40,051 |  |
| Net occupancy expense                                         |   | 6,112 |  |   | 6,391 |  |   | 6,461 |  |
| Furniture, equipment and data processing expense              |   | 8,336 |  |   | 8,638 |  |   | 8,721 |  |
| Professional fees                                             |   | 2,470 |  |   | 3,100 |  |   | 5,266 |  |
| Stationery, printing and supplies                             |   | 646 |  |   | 644 |  |   | 637 |  |
| Advertising and marketing                                     |   | 716 |  |   | 1,135 |  |   | 957 |  |
| Other real estate owned expense                               |   | 1,758 |  |   | 4,138 |  |   | 27,883 |  |
| Credit/debit card expense                                     |   | 2,287 |  |   | 2,143 |  |   | 1,717 |  |
| FDIC insurance                                                |   | 2,068 |  |   | 2,643 |  |   | 3,499 |  |
| Loan collection expense                                       |   | 1,576 |  |   | 4,333 |  |   | 3,274 |  |
| Merger-related expense                                        |   | — |  |   | 3,498 |  |   | 3,241 |  |
| Core deposit intangible amortization                          |   | 1,408 |  |   | 1,407 |  |   | 1,407 |  |
| Other expense                                                 |   | 7,476 |  |   | 5,750 |  |   | 7,092 |  |
| Total noninterest expense                                     |   | 78,535 |  |   | 84,481 |  |   | 110,206 |  |
| Income (Loss) from continuing operations, before income taxes |   | 7,966 |  |   | (157 | ) |   | (41,017 | ) |
| Income tax expense (benefit) - continuing operations          |   | (142,492 | ) |   | 1,326 |  |   | (1,039 | ) |
| Income (Loss) from continuing operations, net of tax          |   | 150,458 |  |   | (1,483 | ) |   | (39,978 | ) |
| Loss from discontinued operations, net of tax                 |   | — |  |   | — |  |   | (27 | ) |
| Net income (loss)                                             |   | $ | 150,458 |  |   | $ | (1,483 | ) |   | (40,005 | ) |
|                                                          |   |   |   |   |   |   |
| Weighted average number of shares outstanding - basic         |   | 21,852,023 |  |   | 21,731,030 |  |   | 21,368,460 |  |
| Weighted average number of shares outstanding - diluted       |   | 21,864,320 |  |   | 21,731,030 |  |   | 21,368,460 |  |
| Net income (loss) per share - basic                           |   | $ | 6.89 |  |   | $ | (0.07 | ) |   | $ | (1.87 | ) |
| Net income (loss) per share - diluted                         |   | 6.88 |  |   | (0.07 | ) |   | (1.87 | ) |

----

Table of Contents

|                                                                                                                 |
|-----------------------------------------------------------------------------------------------------------------|
|                                                                                                                 |  |  |  |  |  |  |  |  |  |  |  |  |
| (dollars in thousands)                                                                                          |   | Years Ended December 31, |
|                                                                                                            |   | 2014 |   | 2013 |   | 2012 |
| Net income (loss)                                                                                               |   | $ | 150,458 |  |   | $ | (1,483 | ) |   | $ | (40,005 | ) |
| Other comprehensive income (loss):                                                                              |   |   |   |   |   |   |
| Unrealized gains arising from termination of supplemental executive retirement plans                            |   | — |  |   | — |  |   | 440 |  |
| Tax effect                                                                                                      |   | — |  |   | — |  |   | (173 | ) |
| Unrealized gains arising from termination of supplemental executive retirement plans, net of tax                |   | — |  |   | — |  |   | 267 |  |
| Unrealized holdings gains (losses) arising during the period on available-for-sale securities                   |   | 19,530 |  |   | (26,703 | ) |   | 9,684 |  |
|  Tax effect                                                                                                |   | (7,470 | ) |   | 10,256 |  |   | (3,824 | ) |
| Unrealized holdings gains (losses) arising during the period on available-for-sale securities, net of tax       |   | 12,060 |  |   | (16,447 | ) |   | 5,860 |  |
| Reclassification adjustment for gain on available-for-sale securities included in net income (loss)             |   | (974 | ) |   | (2,772 | ) |   | (4,121 | ) |
|      Tax effect                                                                        |   | 373 |  |   | 1,093 |  |   | 1,627 |  |
| Reclassification adjustment for gain on available-for-sale securities included in net income (loss), net of tax |   | (601 | ) |   | (1,679 | ) |   | (2,494 | ) |
| Unrealized loss on interest rate swaps                                                                          |   | (537 | ) |   | — |  |   | — |  |
| Tax effect                                                                                                      |   | 206 |  |   | — |  |   | — |  |
|     Unrealized gain loss on interest rate swaps, net of tax                                 |   | (331 | ) |   | — |  |   | — |  |
| Reclassification adjustment for loss on interest rate swaps included in net income                              |   | 12 |  |   | — |  |   | — |  |
|      Tax effect                                                                        |   | (5 | ) |   | — |  |   | — |  |
| Reclassification adjustment for loss on interest rate swaps included in net income, net of tax                  |   | 7 |  |   | — |  |   | — |  |
| Reclassification adjustment for net actuarial gain (amortization) on pension and post retirement liability      |   | 382 |  |   | (302 | ) |   | 503 |  |
| Tax effect                                                                                                      |   | (146 | ) |   | 115 |  |   | (199 | ) |
| Net actuarial gain (amortization) on pension and post retirement liability, net of tax                          |   | 236 |  |   | (187 | ) |   | 304 |  |
| Change in pension and post retirement liability                                                                 |   | (2,010 | ) |   | 1,690 |  |   | (481 | ) |
| Tax effect                                                                                                      |   | 769 |  |   | (659 | ) |   | 190 |  |
| Change in pension and post-retirement liability, net of tax                                                     |   | (1,241 | ) |   | 1,031 |  |   | (291 | ) |
| Other comprehensive income (loss), net of tax                                                                   |   | 10,130 |  |   | (17,282 | ) |   | 3,646 |  |
| Comprehensive income (loss)                                                                                     |   | $ | 160,588 |  |   | $ | (18,765 | ) |   | $ | (36,359 | ) |

----

Table of Contents

|                                                                                                              |
|--------------------------------------------------------------------------------------------------------------|
|                                                                                                              |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   | Accumulated |   |   |
| (dollars in thousands, except share and per share data)                                                      |   |   |   |   |   |   |   |   |   | Common |   |   |   | Other |   |   |
|                                                                                                         | Preferred Stock |   | Common Stock |   | Stock |   | Accumulated |   | Comprehensive |   |   |
|                                                                                                         |   | Shares |   | Amount |   | Shares |   | Amount |   | Warrant |   | Deficit |   | Income (Loss) |   | Total |
| Balance, December 31, 2011                                                                                   |   | — |  |   | $ | — |  |   | 21,102,668 |  |   | $ | 455,166 |  |   | $ | — |  |   | $ | (322,182 | ) |   | $ | (3,969 | ) |   | $ | 129,015 |  |
| Comprehensive loss:                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net loss                                                                                                     |   | — |  |   | — |  |   | — |  |   | — |  |   | — |  |   | (40,005 | ) |   | — |  |   | (40,005 | ) |
| Other comprehensive income, net of tax                                                                       |   | — |  |   | — |  |   | — |  |   | — |  |   | — |  |   | — |  |   | 3,646 |  |   | 3,646 |  |
| Total comprehensive loss                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (36,359 | ) |
| Stock options and awards:                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Compensation expense recognized                                                                              |   | — |  |   | — |  |   | — |  |   | 3 |  |   | — |  |   | — |  |   | — |  |   | 3 |  |
| Expense related to 2011 common stock issued                                                                  |   | — |  |   | — |  |   | — |  |   | (911 | ) |   | — |  |   | — |  |   | — |  |   | (911 | ) |
| Return of common stock not received for fractional shares rounding purposes in the 1:100 reverse stock split |   | — |  |   | — |  |   | (586 | ) |   | — |  |   | — |  |   | — |  |   | — |  |   | — |  |
| Exercise of warrants related to stock offering                                                               |   | — |  |   | — |  |   | 186 |  |   | 3 |  |   | — |  |   | — |  |   | — |  |   | 3 |  |
| Restricted stock awards issued to employees                                                                  |   | — |  |   | — |  |   | 110,059 |  |   | — |  |   | — |  |   | — |  |   | — |  |   | — |  |
| Stock offering, net of issuance costs of $379                                                                |   | — |  |   | — |  |   | 485,788 |  |   | 6,694 |  |   | — |  |   | — |  |   | — |  |   | 6,694 |  |
| Balance, December 31, 2012                                                                                   |   | — |  |   | $ | — |  |   | 21,698,115 |  |   | $ | 460,955 |  |   | $ | — |  |   | $ | (362,187 | ) |   | $ | (323 | ) |   | $ | 98,445 |  |
| Comprehensive loss:                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net loss                                                                                                     |   | — |  |   | — |  |   | — |  |   | — |  |   | — |  |   | (1,483 | ) |   | — |  |   | (1,483 | ) |
| Other comprehensive loss, net of tax                                                                         |   | — |  |   | — |  |   | — |  |   | — |  |   | — |  |   | — |  |   | (17,282 | ) |   | (17,282 | ) |
| Total comprehensive loss                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (18,765 | ) |
| Stock options and awards:                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Compensation expense recognized                                                                              |   | — |  |   | — |  |   | — |  |   | 628 |  |   | — |  |   | — |  |   | — |  |   | 628 |  |
| Shares issued as compensation to directors                                                                   |   | — |  |   | — |  |   | 5,001 |  |   | 53 |  |   | — |  |   | — |  |   | — |  |   | 53 |  |
| Restricted stock awards issued to employees and directors                                                    |   | — |  |   | — |  |   | 158,302 |  |   | — |  |   | — |  |   | — |  |   | — |  |   | — |  |
| Balance, December 31, 2013                                                                                   |   | — |  |   | $ | — |  |   | 21,861,418 |  |   | $ | 461,636 |  |   | $ | — |  |   | $ | (363,670 | ) |   | $ | (17,605 | ) |   | $ | 80,361 |  |
| Comprehensive income:                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net income                                                                                                   |   | — |  |   | — |  |   | — |  |   | — |  |   | — |  |   | 150,458 |  |   | — |  |   | 150,458 |  |
| Other comprehensive income, net of tax                                                                       |   | — |  |   | — |  |   | — |  |   | — |  |   | — |  |   | — |  |   | 10,130 |  |   | 10,130 |  |
| Total comprehensive income                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 160,588 |  |
| Stock offering, net of issuance costs of $18                                                                 |   | — |  |   | — |  |   | 2,367,425 |  |   | 24,982 |  |   | — |  |   | — |  |   | — |  |   | 24,982 |  |
| Reclass of warrant upon expiration of down-round term                                                        |   | — |  |   | — |  |   | — |  |   | 56 |  |   | — |  |   | — |  |   | — |  |   | 56 |  |
| Stock options and awards:                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Compensation expense recognized                                                                              |   | — |  |   | — |  |   | — |  |   | 853 |  |   | — |  |   | — |  |   | — |  |   | 853 |  |
| Restricted stock awards issued to employees and directors, net of cancellations                              |   | — |  |   | — |  |   | (50,343 | ) |   | — |  |   | — |  |   | — |  |   | — |  |   | — |  |
| Shares issued as compensation to directors                                                                   |   | — |  |   | — |  |   | 7,423 |  |   | 76 |  |   | — |  |   | — |  |   | — |  |   | 76 |  |
| Balance, December 31, 2014                                                                                   |   | — |  |   | $ | — |  |   | 24,185,923 |  |   | $ | 487,603 |  |   | $ | — |  |   | $ | (213,212 | ) |   | $ | (7,475 | ) |   | $ | 266,916 |  |

----

Table of Contents

|                                                                                                               |
|---------------------------------------------------------------------------------------------------------------|
|                                                                                                               |  |  |  |  |  |  |  |  |  |  |  |  |
|  (dollars in thousands)                                                                                  |   | Years Ended December 31, |
|                                                                                                          |   | 2014 |   | 2013 |   | 2012 |
| Operating Activities                                                                                          |   |   |   |   |   |   |
| Net income (loss)                                                                                             |   | $ | 150,458 |  |   | $ | (1,483 | ) |   | (40,005 | ) |
| Net loss from discontinued operations                                                                         |   | — |  |   | — |  |   | (27 | ) |
| Net income (loss) from continuing operations                                                                  |   | 150,458 |  |   | (1,483 | ) |   | (39,978 | ) |
|   Adjustments to reconcile net income (loss) to cash provided by (used in) operating activities:    |   |   |   |   |   |   |
| Depreciation and amortization of premises and equipment                                                       |   | 3,811 |  |   | 3,646 |  |   | 3,794 |  |
| Provision for (Recovery of) loan losses                                                                       |   | (5,371 | ) |   | 523 |  |   | 14,049 |  |
| Deferred income taxes                                                                                         |   | (142,492 | ) |   | 1,326 |  |   | (1,039 | ) |
| Deferred loan fees and costs, net                                                                             |   | 324 |  |   | (251 | ) |   | (2,714 | ) |
| Premium amortization and discount accretion of investment securities, net                                     |   | 2,294 |  |   | 4,061 |  |   | 8,273 |  |
| Net gain on sale of investment securities                                                                     |   | (974 | ) |   | (2,772 | ) |   | (4,121 | ) |
| Amortization of core deposit premiums                                                                         |   | 1,408 |  |   | 1,407 |  |   | 1,407 |  |
| Net accretion of purchase accounting adjustments                                                              |   | (10,075 | ) |   | (16,958 | ) |   | (24,813 | ) |
| Stock compensation expense                                                                                    |   | 929 |  |   | 681 |  |   | 3 |  |
| Increase in cash surrender value of bank-owned life insurance, net                                            |   | (1,146 | ) |   | (1,148 | ) |   | (1,277 | ) |
|    Loans held for sale:                                                                        |   |   |   |   |   |   |
|    Origination of loans held for sale                                                          |   | (59,470 | ) |   | (114,104 | ) |   | (86,611 | ) |
|    Net proceeds from sale of loans held for sale                                               |   | 59,103 |  |   | 121,080 |  |   | 80,975 |  |
|    Net gain on sale of loans held for sale                                                     |   | (593 | ) |   | (1,838 | ) |   | (1,338 | ) |
| Mortgage servicing rights capitalized                                                                         |   | (644 | ) |   | (1,131 | ) |   | (750 | ) |
| Mortgage servicing rights amortization and impairment                                                         |   | 470 |  |   | 305 |  |   | 24 |  |
| Net gain on sale of premises and equipment                                                                    |   | 59 |  |   | 538 |  |   | — |  |
| Net loss on sales and write-downs of other real estate owned                                                  |   | 754 |  |   | 3,921 |  |   | 21,787 |  |
| Changes in assets and liabilities:                                                                            |   |   |   |   |   |   |
| (Increase) Decrease in accrued interest receivable and other assets                                           |   | 2,405 |  |   | (293 | ) |   | 334 |  |
| Decrease in accrued interest payable and other liabilities                                                    |   | (469 | ) |   | (1,997 | ) |   | (3,092 | ) |
| Net cash provided by (used in) operating activities of continuing operations                                  |   | 781 |  |   | (4,487 | ) |   | (35,087 | ) |
| Net effect of discontinued operations                                                                         |   | — |  |   | — |  |   | (874 | ) |
| Net cash provided by (used in) operating activities                                                           |   | 781 |  |   | (4,487 | ) |   | (35,961 | ) |
| Investing Activities                                                                                          |   |   |   |   |   |   |
| Available-for-sale securities:                                                                                |   |   |   |   |   |   |
| Proceeds from sales                                                                                           |   | 37,239 |  |   | 177,826 |  |   | 212,609 |  |
| Proceeds from maturities, calls and principal repayments                                                      |   | 44,970 |  |   | 72,263 |  |   | 147,209 |  |
| Purchases                                                                                                     |   | — |  |   | (127,794 | ) |   | (490,447 | ) |
| Held-to-maturity securities:                                                                                  |   |   |   |   |   |   |
| Proceeds from maturities, calls and principal repayments                                                      |   | 8,935 |  |   | 3,416 |  |   | — |  |
| Purchases                                                                                                     |   | — |  |   | (155,394 | ) |   | — |  |
|    Net (increase) decrease in loans held for investment                                        |   | (139,711 | ) |   | (28,776 | ) |   | 20,000 |  |
|    Proceeds from sales of other real estate owned                                              |   | 10,150 |  |   | 37,785 |  |   | 50,780 |  |
|    Improvements to other real estate owned                                                     |   | — |  |   | — |  |   | (26 | ) |
|    Adjustment to goodwill from valuation adjustment on acquired OREO                           |   | — |  |   | — |  |   | (300 | ) |
|    Purchases of premises and equipment                                                         |   | (2,001 | ) |   | (3,326 | ) |   | (2,889 | ) |
|    Proceeds from sales of premises and equipment                                               |   | 282 |  |   | 920 |  |   | 58 |  |
|    Net cash paid for acquisition                                                               |   | — |  |   | — |  |   | (911 | ) |
|             Net cash used in investing activities |   | (40,136 | ) |   | (23,080 | ) |   | (63,917 | ) |
| Financing Activities                                                                                          |   |   |   |   |   |   |
| Net increase (decrease) in deposits                                                                           |   | 45,715 |  |   | (157,810 | ) |   | (220,420 | ) |
| Increase (Decrease) in retail repurchase agreements                                                           |   | 2,159 |  |   | (1,758 | ) |   | (163 | ) |
| Increase (Decrease) in Federal Home Loan Bank advances                                                        |   | (5,049 | ) |   | 14,955 |  |   | (42 | ) |
| Issuance of common stock, net of expense                                                                      |   | 24,982 |  |   | — |  |   | 6,694 |  |
| Exercise of warrants related to stock offering                                                                |   | — |  |   | — |  |   | 3 |  |
| Net cash provided by (used) in financing activities                                                           |   | 67,807 |  |   | (144,613 | ) |   | (213,928 | ) |
| Net (Decrease) Increase in Cash and Cash Equivalents                                                          |   | 28,452 |  |   | (172,180 | ) |   | (313,806 | ) |
| Cash and Cash Equivalents at Beginning of Period                                                              |   | 67,430 |  |   | 239,610 |  |   | 553,416 |  |
| Cash and Cash Equivalents at End of Period                                                                    |   | $ | 95,882 |  |   | $ | 67,430 |  |   | $ | 239,610 |  |
|                                                                                                          |   |   |   |   |   |   |
| Supplemental disclosure of cash flow information                                                              |   |   |   |   |   |   |
| Cash paid during the period for:                                                                              |   |   |   |   |   |   |
|  Interest                                                                                                |   | $ | 9,090 |  |   | $ | 10,093 |  |   | $ | 16,234 |  |
|      Income taxes, net of refunds                                                    |   | — |  |   | 58 |  |   | — |  |
| Noncash transactions:                                                                                         |   |   |   |   |   |   |
| Foreclosed loans transferred to other real estate owned                                                       |   | 4,372 |  |   | 15,001 |  |   | 32,565 |  |
| Loans to facilitate the sale of other real estate owned                                                       |   | 1,699 |  |   | 7,696 |  |   | 7,211 |  |
| Transfer of loans from held for investment to held for sale                                                   |   | — |  |   | — |  |   | 600 |  |
| Transfer of loans from held for sale to held for investment                                                   |   | — |  |   | — |  |   | 3,885 |  |
| Transfer of fixed assets to other assets                                                                      |   | 2,136 |  |   | — |  |   | — |  |
| Unrealized securities gains (losses), net of income taxes                                                     |   | 11,459 |  |   | (18,126 | ) |   | 3,366 |  |
| Employee benefit plan costs, net of income taxes                                                              |   | (1,005 | ) |   | 844 |  |   | 280 |  |
| Unrealized loss on interest rate swap, net of income taxes                                                    |   | (324 | ) |   | — |  |   | — |  |
| Reclass of warrant upon expiration of down-round term                                                         |   | (56 | ) |   | — |  |   | — |  |

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|         |                                                                                                                                                                                                                                                                                                                                                                  |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Available-for-sale securities - Debt and equity securities not classified as either held-to-maturity securities or trading securities are reported at fair value, with unrealized gains and losses, net of related tax effect, included as an item of accumulated other comprehensive income and reported as a separate component of shareholders’ equity. |

|         |                                                                                                                                                |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Held-to-maturity securities - Debt securities that COB has the positive intent and ability to hold to maturity are reported at amortized cost. |

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|         |                                                     |
|---------|-----------------------------------------------------|
| • | If unsecured, the loan must be charged off in full. |

|         |                                                                                                                                  |
|---------|----------------------------------------------------------------------------------------------------------------------------------|
| • | If secured, the outstanding principal balance of the loan should be charged down to the net liquidation value of the collateral. |

|         |                                                                     |
|---------|---------------------------------------------------------------------|
| • | No regularly scheduled payment has been made within four months, or |

|         |                                                                                                                                                                           |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | The loan is unsecured, the borrower files for bankruptcy protection and there is no other (guarantor, etc.) support from an entity outside of the bankruptcy proceedings. |

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|    |                                                                                                                                                                                                                                                                                                                                                                                                             |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| a) | Standard – Accounts for inherent uncertainty in using the past as a predictor of the future. Particularly, this factor will be used to make adjustments when historical loss data over the look back period is above or below the loss experienced over more recent periods, causing the model to over or under predict the potential losses currently in the portfolio. Uniform across all segments. |

|    |                                                                                                                  |
|----|------------------------------------------------------------------------------------------------------------------|
| b) | Volume – Accounts for historical growth characteristics of the portfolio over the loss recognition period. |

|    |                                                                                                        |
|----|--------------------------------------------------------------------------------------------------------|
| c) | Terms – Measures risk derived from granting terms outside of policy and underwriting guidelines. |

|    |                                                                      |
|----|----------------------------------------------------------------------|
| d) | Staff – Reflects staff competence in various types of lending. |

|    |                                                                                     |
|----|-------------------------------------------------------------------------------------|
| e) | Delinquency – Reflects increased risk deriving from higher delinquency rates. |

|    |                                                                                                        |
|----|--------------------------------------------------------------------------------------------------------|
| f) | Nonaccrual – Reflects increased risk of loans with characteristics that merit nonaccrual status. |

|    |                                                                                                                                           |
|----|-------------------------------------------------------------------------------------------------------------------------------------------|
| g) | Migration – Accounts for the changing level of risk inherent in loans as they migrate into, or away from, more adverse risk grades. |

|    |                                                                                                                                                   |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------|
| h) | Concentration – Measures increased risk derived from concentration of credit exposure in particular industry segments within the portfolio. |

|    |                                                                                                                                      |
|----|--------------------------------------------------------------------------------------------------------------------------------------|
| i) | Production – Measures impact of efforts towards expanding credit exposure and potential risk derived from new loan production. |

|    |                                                                                                                               |
|----|-------------------------------------------------------------------------------------------------------------------------------|
| j) | Process – Measures increased risk derived from more demanding processing requirements directed towards risk mitigation. |

|    |                                                                                                          |
|----|----------------------------------------------------------------------------------------------------------|
| k) | Economic – Impact of general and local economic factors and effect is felt uniformly across pools. |

|    |                                                                                                                      |
|----|----------------------------------------------------------------------------------------------------------------------|
| l) | Competition – Measures risk associated with Bank's response to competitors’ relaxed credit requirements. |

|    |                                                                                                                                             |
|----|---------------------------------------------------------------------------------------------------------------------------------------------|
| m) | Regulatory and Legal – Measures risk from exposure to regulations, legislation, and legal code that result in increased risk of loss. |

|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 1. | Individual Reserves. These are calculated against loans evaluated individually and deemed most likely to be impaired. Management determines which loans will be considered for potential impairment review. This does not mean that an individual reserve will necessarily be calculated for each loan considered for impairment, only for those noted during this process as likely to have a loss. Loans to be considered will generally include: |

|         |                                                      |
|---------|------------------------------------------------------|
| • | All commercial loans classified substandard or worse |

|         |                                       |
|---------|---------------------------------------|
| • | Any other loan in a nonaccrual status |

|         |                                                                                                                                                        |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Any loan, consumer or commercial, that has already been modified such that it meets the definition of Troubled Debt Restructurings (“TDR”) |

|         |                                                                                                    |
|---------|----------------------------------------------------------------------------------------------------|
| • | Any loan for which the customer has filed Bankruptcy when the customer does not reaffirm the debt. |

|         |                                                                                                                                                                                                           |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | When the amount of the actual loss becomes reasonably quantifiable the amount of the loss should be charged off against the ALL, whether or not all liquidation and recovery efforts have been completed. |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | If the total amount of the individual reserve that will eventually be charged off cannot yet be determined, but some portion of the individual reserve can be viewed as an imminent loss, that smaller portion can be charged off against the ALL and the individual reserve reduced by a corresponding amount. It is acceptable to retain an estimate of remaining loss as a “special reserve” only when the estimate is not reasonably quantifiable. |

|         |                                                                                                                                                          |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Impaired loans with a de minimis balance are not individually evaluated for individual reserve but they are included in the formula reserve calculation. |

|    |                                                                                                                                                                                                                                                 |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 2. | Formula Reserves. Formula reserves are held against loans evaluated collectively. Loans are grouped by type or by risk grade, or some combination of the two. Loss estimates are based on historical loss rates for each respective loan group. |

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|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 3. | Unallocated Reserves. If individual reserves represent estimated losses tied to any specific loan, and formula reserves represent estimated losses tied to a pool of loans but not yet to any specific loan, then unallocated reserves represent an estimate of losses that are expected, but are not yet tied to any loan or group of loans. Unallocated reserves are generally the smallest of the three overall reserve segments and are set based on qualitative factors. |

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|                                                                           |
|---------------------------------------------------------------------------|
|                                                                           |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (dollars in thousands)                                                    |   | December 31, 2014 |   | December 31, 2013 |   | December 31, 2012 |
|                                                                      |   | Pre-tax |   | After-tax |   | Pre-tax |   | After-tax |   | Pre-tax |   | After-tax |
| Net unrealized securities gains (losses)                                  |   | $ | (4,885 | ) |   | $ | (3,017 | ) |   | $ | (23,443 | ) |   | $ | (14,476 | ) |   | $ | 6,032 |  |   | $ | 3,650 |  |
| Interest rate swaps                                                       |   | (525 | ) |   | (324 | ) |   | — |  |   | — |  |   | — |  |   | — |  |
| Pension, other postretirement and postemployment benefit plan adjustments |   | (6,696 | ) |   | (4,134 | ) |   | (5,068 | ) |   | (3,129 | ) |   | (6,566 | ) |   | (3,973 | ) |
| Accumulated other comprehensive loss                                      |   | $ | (12,106 | ) |   | $ | (7,475 | ) |   | $ | (28,511 | ) |   | $ | (17,605 | ) |   | $ | (534 | ) |   | $ | (323 | ) |

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|                                                  |
|--------------------------------------------------|
|                                                  |  |  |  |  |  |  |  |  |  |  |  |  |
| (dollars in thousands)                           |   | For the Twelve Months EndedDecember 31, |
|                                             |   | 2014 |   | 2013 |   | 2012 |
| Gross balance at beginning of year               |   | $ | 4,205 |  |   | $ | 4,205 |  |   | $ | 3,905 |  |
| Accumulated impairment balance beginning of year |   | — |  |   | — |  |   | — |  |
| Effect of Granite merger                         |   | — |  |   | — |  |   | 300 |  |
| Impairment                                       |   | — |  |   | — |  |   | — |  |
| Accumulated balance at end of year               |   | $ | 4,205 |  |   | $ | 4,205 |  |   | $ | 4,205 |  |

|                                                          |
|----------------------------------------------------------|
|                                                          |  |  |  |  |  |  |  |  |
| (dollars in thousands)                                   |   | As of December 31, |
|                                                     |   | 2014 |   | 2013 |
| Core deposit premium related to whole bank acquisitions: |   |   |   |   |
| Carrying amount                                          |   | $ | 13,102 |  |   | $ | 13,102 |  |
| Accumulated amortization                                 |   | 9,147 |  |   | 7,739 |  |
| Net core deposit premium                                 |   | $ | 3,955 |  |   | $ | 5,363 |  |

|                        |
|------------------------|
|                        |  |  |  |
| (dollars in thousands) | EstimatedAmortizationExpense |
| 2015                   | $ | 1,385 |  |
| 2016                   | 834 |  |
| 2017                   | 613 |  |
| 2018                   | 613 |  |
| 2019                   | 510 |  |
| Total                  | $ | 3,955 |  |

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|                                                      |
|------------------------------------------------------|
|                                                      |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| December 31, 2014                               |   |   |   |   |   |   |   |   |
| (dollars in thousands)                               |   | Amortized Cost |   | Gross Unrealized Gains |   | Gross Unrealized Losses |   | Estimated Fair Value |
| Available-for-Sale:                                  |   |   |   |   |   |   |   |   |
| Obligations of U.S. government sponsored enterprises |   | $ | 2,028 |  |   | $ | 16 |  |   | $ | — |  |   | $ | 2,044 |  |
| Residential mortgage-backed securities-GSE           |   | 295,300 |  |   | 438 |  |   | 5,593 |  |   | 290,145 |  |
| Residential mortgage-backed securities-Private       |   | 16,455 |  |   | 820 |  |   | 4 |  |   | 17,271 |  |
| Commercial mortgage backed securities-GSE            |   | 22,377 |  |   | — |  |   | 419 |  |   | 21,958 |  |
| Commercial mortgage-backed securities-Private        |   | 10,365 |  |   | — |  |   | 150 |  |   | 10,215 |  |
| Corporate notes                                      |   | 8,399 |  |   | 8 |  |   | — |  |   | 8,407 |  |
| Total available-for-sale                             |   | $ | 354,924 |  |   | $ | 1,282 |  |   | $ | 6,166 |  |   | $ | 350,040 |  |
| Held-to-Maturity:                                    |   |   |   |   |   |   |   |   |
| Residential mortgage-backed securities-GSE           |   | 132,396 |  |   | 116 |  |   | 1,635 |  |   | 130,877 |  |
| Commercial mortgage-backed securities-Private        |   | 10,065 |  |   | — |  |   | 67 |  |   | 9,998 |  |
|      Total held-to-maturity |   | $ | 142,461 |  |   | $ | 116 |  |   | $ | 1,702 |  |   | $ | 140,875 |  |
| Total investment securities                          |   | $ | 497,385 |  |   | $ | 1,398 |  |   | $ | 7,868 |  |   | $ | 490,915 |  |
|                                                 |   |   |   |   |   |   |   |   |
| December 31, 2013                               |   |   |   |   |   |   |   |   |
| (dollars in thousands)                               |   | Amortized Cost |   | Gross Unrealized Gains |   | Gross Unrealized Losses |   | Estimated Fair Value |
| Available-for-Sale:                                  |   |   |   |   |   |   |   |   |
| Obligations of U.S. government sponsored enterprises |   | $ | 2,051 |  |   | $ | 26 |  |   | $ | — |  |   | $ | 2,077 |  |
| Business Development Company investment              |   | 1,753 |  |   | 984 |  |   | — |  |   | 2,737 |  |
| Residential mortgage-backed securities-GSE           |   | 364,513 |  |   | 974 |  |   | 24,340 |  |   | 341,147 |  |
| Residential mortgage-backed securities-Private       |   | 19,770 |  |   | 982 |  |   | — |  |   | 20,752 |  |
| Commercial mortgage backed securities-GSE            |   | 22,767 |  |   | — |  |   | 1,328 |  |   | 21,439 |  |
| Commercial mortgage backed securities-Private        |   | 10,408 |  |   | — |  |   | 823 |  |   | 9,585 |  |
| Corporate notes                                      |   | 16,795 |  |   | 82 |  |   | — |  |   | 16,877 |  |
| Total available-for-sale                             |   | $ | 438,057 |  |   | $ | 3,048 |  |   | $ | 26,491 |  |   | $ | 414,614 |  |
| Held-to-Maturity:                                    |   |   |   |   |   |   |   |   |
| Residential mortgage-backed securities-GSE           |   | 141,724 |  |   | — |  |   | 9,907 |  |   | 131,817 |  |
| Commercial mortgage-backed securities-Private        |   | 10,071 |  |   | — |  |   | 763 |  |   | 9,308 |  |
|      Total held-to-maturity |   | $ | 151,795 |  |   | $ | — |  |   | $ | 10,670 |  |   | $ | 141,125 |  |
| Total investment securities                          |   | $ | 589,852 |  |   | $ | 3,048 |  |   | $ | 37,161 |  |   | $ | 555,739 |  |

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|                              |
|------------------------------|
|                              |  |  |  |  |  |  |  |  |
| (dollars in thousands)       |   | December 31, |
|                         |   | 2014 |   | 2013 |
| Federal Home Loan Bank stock |   | $ | 4,855 |  |   | $ | 5,878 |  |
| Federal Reserve Bank stock   |   | 4,713 |  |   | 4,264 |  |
| Total other investments      |   | $ | 9,568 |  |   | $ | 10,142 |  |

|                                                             |
|-------------------------------------------------------------|
|                                                             |  |  |  |  |  |  |  |  |  |  |  |  |
| (dollars in thousands)                                      |   | Years Ended December 31, |
|                                                        |   | 2014 |   | 2013 |   | 2012 |
| Proceeds from sales of investment securities                |   | $ | 37,239 |  |   | $ | 177,826 |  |   | $ | 212,609 |  |
|                                                        |   |   |   |   |   |   |
| Gains on sales of investment securities available-for-sale  |   | 1,392 |  |   | 2,953 |  |   | 4,501 |  |
| Losses on sales of investment securities available-for-sale |   | (418 | ) |   | (181 | ) |   | (380 | ) |
| Total securities gains, net                                 |   | $ | 974 |  |   | $ | 2,772 |  |   | $ | 4,121 |  |

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|                                                |
|------------------------------------------------|
|                                                |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                           | Less than 12 Months |   | 12 Months or More |   | Total |
| (dollars in thousands)                         | Estimated Fair Value | Gross Unrealized Losses |   | Estimated Fair Value | Gross Unrealized Losses |   | Estimated Fair Value | Gross Unrealized Losses |
| December 31, 2014                              |   |   |   |   |   |   |   |   |
| Available-for-Sale:                            |   |   |   |   |   |   |   |   |
| Residential mortgage-backed securities-GSE     | $ | — |  | $ | — |  |   | $ | 245,457 |  | $ | 5,593 |  |   | $ | 245,457 |  | $ | 5,593 |  |
| Residential mortgage-backed securities-Private | 1,154 |  | 4 |  |   | — |  | — |  |   | 1,154 |  | 4 |  |
| Commercial mortgage-backed securities-GSE      | — |  | — |  |   | 21,958 |  | 419 |  |   | 21,958 |  | 419 |  |
| Commercial mortgage-backed securities-Private  | — |  | — |  |   | 10,215 |  | 150 |  |   | 10,215 |  | 150 |  |
| Total available-for-sale                       | $ | 1,154 |  | $ | 4 |  |   | $ | 277,630 |  | $ | 6,162 |  |   | $ | 278,784 |  | $ | 6,166 |  |
| Held-to-Maturity:                              |   |   |   |   |   |   |   |   |
| Residential mortgage-backed securities-GSE     | $ | — |  | $ | — |  |   | $ | 112,878 |  | $ | 1,635 |  |   | $ | 112,878 |  | $ | 1,635 |  |
| Commercial mortgage-backed securities-Private  | — |  | — |  |   | 9,998 |  | 67 |  |   | 9,998 |  | 67 |  |
| Total held-to-maturity                         | $ | — |  | $ | — |  |   | $ | 122,876 |  | $ | 1,702 |  |   | $ | 122,876 |  | $ | 1,702 |  |
| Total                                          | $ | 1,154 |  | $ | 4 |  |   | $ | 400,506 |  | $ | 7,864 |  |   | $ | 401,660 |  | $ | 7,868 |  |
|                                           |   |   |   |   |   |   |   |   |
| December 31, 2013                              |   |   |   |   |   |   |   |   |
| Available-for-Sale:                            |   |   |   |   |   |   |   |   |
| Residential mortgage-backed securities-GSE     | $ | 222,475 |  | $ | 16,585 |  |   | $ | 76,501 |  | $ | 7,755 |  |   | $ | 298,976 |  | $ | 24,340 |  |
| Commercial mortgage-backed securities-GSE      | — |  | — |  |   | 21,439 |  | 1,328 |  |   | 21,439 |  | 1,328 |  |
| Commercial mortgage-backed securities-Private  | 9,585 |  | 823 |  |   | — |  | — |  |   | 9,585 |  | 823 |  |
| Total available-for-sale                       | $ | 232,060 |  | $ | 17,408 |  |   | $ | 97,940 |  | $ | 9,083 |  |   | $ | 330,000 |  | $ | 26,491 |  |
| Held-to-Maturity:                              |   |   |   |   |   |   |   |   |
| Residential mortgage-backed securities-GSE     | $ | 131,817 |  | $ | 9,907 |  |   | $ | — |  | $ | — |  |   | $ | 131,817 |  | $ | 9,907 |  |
| Commercial mortgage-backed securities-Private  | 9,308 |  | 763 |  |   | — |  | — |  |   | 9,308 |  | 763 |  |
| Total held-to-maturity                         | $ | 141,125 |  | $ | 10,670 |  |   | $ | — |  | $ | — |  |   | $ | 141,125 |  | $ | 10,670 |  |
| Total                                          | $ | 373,185 |  | $ | 28,078 |  |   | $ | 97,940 |  | $ | 9,083 |  |   | $ | 471,125 |  | $ | 37,161 |  |

|         |                                                        |
|---------|--------------------------------------------------------|
| • | How much fair value has declined below amortized cost; |

|         |                                                 |
|---------|-------------------------------------------------|
| • | How long the decline in fair value has existed; |

|         |                                        |
|---------|----------------------------------------|
| • | The financial condition of the issuer; |

|         |                                                      |
|---------|------------------------------------------------------|
| • | Contractual or estimated cash flows of the security; |

|         |                                   |
|---------|-----------------------------------|
| • | Underlying supporting collateral; |

|         |                                             |
|---------|---------------------------------------------|
| • | Past events, current conditions, forecasts; |

|         |                                                      |
|---------|------------------------------------------------------|
| • | Significant rating agency changes on the issuer; and |

|         |                                                                                                                                          |
|---------|------------------------------------------------------------------------------------------------------------------------------------------|
| • | COB’s intent and ability to hold the security for a period of time sufficient to allow for any anticipated recovery in fair value. |

----

Table of Contents

|                                                |
|------------------------------------------------|
|                                                |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                           |   | Available-for-Sale |   | Held-to-Maturity |
| (dollars in thousands)                         |   | Amortized Cost |   | Estimated Fair Value |   | Amortized Cost |   | Estimated Fair Value |
| U.S. government sponsored agencies             |   |   |   |   |   |   |   |   |
| Due after one year through five years          |   | $ | 2,028 |  |   | $ | 2,044 |  |   | $ | — |  |   | $ | — |  |
| Residential mortgage-backed securities-GSE     |   |   |   |   |   |   |   |   |
| Due after five years through 10 years          |   | 2,327 |  |   | 2,367 |  |   | — |  |   | — |  |
| Due after ten years                            |   | 292,973 |  |   | 287,778 |  |   | 132,396 |  |   | 130,877 |  |
| Residential mortgage-backed securities-Private |   |   |   |   |   |   |   |   |
| Due after ten years                            |   | 16,455 |  |   | 17,271 |  |   | — |  |   | — |  |
| Commercial mortgage-backed securities-GSE      |   |   |   |   |   |   |   |   |
| Due after five years through 10 years          |   | 22,377 |  |   | 21,958 |  |   | — |  |   | — |  |
| Commercial mortgage-backed securities-Private  |   |   |   |   |   |   |   |   |
| Due after ten years                            |   | 10,365 |  |   | 10,215 |  |   | 10,065 |  |   | 9,998 |  |
| Corporate notes                                |   |   |   |   |   |   |   |   |
| Due in one year or less                        |   | 8,399 |  |   | 8,407 |  |   | — |  |   | — |  |
| Total                                          |   | $ | 354,924 |  |   | $ | 350,040 |  |   | $ | 142,461 |  |   | $ | 140,875 |  |

|                             |
|-----------------------------|
|                             |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (dollars in thousands)      |   | Accruing |   |   |   |   |   |   |   |   |
|                        |   | 30-59 days past due |   | 60-89 days past due |   | More than 90 days past due |   | Nonaccrual |   | Total past due and nonaccrual |   | Current and accruing |   | Total Loans |
| PC and Originated Loans     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial and agricultural |   | $ | — |  |   | $ | — |  |   | $ | — |  |   | $ | 608 |  |   | $ | 608 |  |   | $ | 105,269 |  |   | $ | 105,877 |  |
| Real estate - construction  |   | 100 |  |   | — |  |   | — |  |   | 2,307 |  |   | 2,407 |  |   | 66,723 |  |   | 69,130 |  |
| Real estate - mortgage:     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 1-4 family residential      |   | 2,719 |  |   | 147 |  |   | — |  |   | 8,637 |  |   | 11,503 |  |   | 638,364 |  |   | 649,867 |  |
| Commercial                  |   | 105 |  |   | 141 |  |   | — |  |   | 13,381 |  |   | 13,627 |  |   | 325,356 |  |   | 338,983 |  |
| Consumer                    |   | 744 |  |   | 225 |  |   | 5 |  |   | 355 |  |   | 1,329 |  |   | 69,760 |  |   | 71,089 |  |
| Total                       |   | $ | 3,668 |  |   | $ | 513 |  |   | $ | 5 |  |   | $ | 25,288 |  |   | $ | 29,474 |  |   | $ | 1,205,472 |  |   | $ | 1,234,946 |  |
| PI loans                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial and agricultural |   | $ | — |  |   | $ | — |  |   | $ | 2,232 |  |   | $ | — |  |   | $ | 2,232 |  |   | $ | 5,303 |  |   | $ | 7,535 |  |
| Real estate - construction  |   | — |  |   | — |  |   | 3,737 |  |   | — |  |   | 3,737 |  |   | 5,460 |  |   | 9,197 |  |
| Real estate - mortgage:     |   |   |   |   |   |  |   |   |   |   |   |   |   |   |
| 1-4 family residential      |   | 579 |  |   | 15 |  |   | 2,209 |  |   | — |  |   | 2,803 |  |   | 14,934 |  |   | 17,737 |  |
| Commercial                  |   | 287 |  |   | 119 |  |   | 12,964 |  |   | — |  |   | 13,370 |  |   | 73,975 |  |   | 87,345 |  |
| Consumer                    |   | 2 |  |   | — |  |   | 10 |  |   | — |  |   | 12 |  |   | 1,016 |  |   | 1,028 |  |
| Total                       |   | $ | 868 |  |   | $ | 134 |  |   | $ | 21,152 |  |   | $ | — |  |   | $ | 22,154 |  |   | $ | 100,688 |  |   | $ | 122,842 |  |
| Total Loans                 |   | $ | 4,536 |  |   | $ | 647 |  |   | $ | 21,157 |  |   | $ | 25,288 |  |   | $ | 51,628 |  |   | $ | 1,306,160 |  |   | $ | 1,357,788 |  |

----

Table of Contents

|                             |
|-----------------------------|
|                             |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (dollars in thousands)      |   | Accruing |   |   |   |   |   |   |   |   |
|                        |   | 30-59 days past due |   | 60-89 days past due |   | More than 90 days past due |   | Nonaccrual |   | Total past due and nonaccrual |   | Current and accruing |   | Total Loans |
| PC and Originated Loans     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial and agricultural |   | $ | 18 |  |   | $ | 43 |  |   | $ | — |  |   | $ | 516 |  |   | $ | 577 |  |   | $ | 60,946 |  |   | $ | 61,523 |  |
| Real estate - construction  |   | 168 |  |   | 634 |  |   | — |  |   | 4,677 |  |   | 5,479 |  |   | 48,711 |  |   | 54,190 |  |
| Real estate - mortgage:     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 1-4 family residential      |   | 3,454 |  |   | 522 |  |   | — |  |   | 11,580 |  |   | 15,556 |  |   | 593,698 |  |   | 609,254 |  |
| Commercial                  |   | 1,765 |  |   | 77 |  |   | — |  |   | 18,380 |  |   | 20,222 |  |   | 261,524 |  |   | 281,746 |  |
| Consumer                    |   | 56 |  |   | 17 |  |   | — |  |   | 12 |  |   | 85 |  |   | 43,798 |  |   | 43,883 |  |
| Total                       |   | $ | 5,461 |  |   | $ | 1,293 |  |   | $ | — |  |   | $ | 35,165 |  |   | $ | 41,919 |  |   | $ | 1,008,677 |  |   | $ | 1,050,596 |  |
| PI loans                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial and agricultural |   | $ | 35 |  |   | $ | 16 |  |   | $ | 1,977 |  |   | $ | — |  |   | $ | 2,028 |  |   | $ | 8,701 |  |   | $ | 10,729 |  |
| Real estate - construction  |   | 48 |  |   | — |  |   | 2,758 |  |   | — |  |   | 2,806 |  |   | 7,087 |  |   | 9,893 |  |
| Real estate - mortgage:     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 1-4 family residential      |   | 135 |  |   | 9 |  |   | 2,907 |  |   | — |  |   | 3,051 |  |   | 23,802 |  |   | 26,853 |  |
| Commercial                  |   | 903 |  |   | — |  |   | 17,479 |  |   | — |  |   | 18,382 |  |   | 94,796 |  |   | 113,178 |  |
| Consumer                    |   | 6 |  |   | — |  |   | 12 |  |   | — |  |   | 18 |  |   | 981 |  |   | 999 |  |
| Total                       |   | $ | 1,127 |  |   | $ | 25 |  |   | $ | 25,133 |  |   | $ | — |  |   | $ | 26,285 |  |   | $ | 135,367 |  |   | $ | 161,652 |  |
| Total Loans                 |   | $ | 6,588 |  |   | $ | 1,318 |  |   | $ | 25,133 |  |   | $ | 35,165 |  |   | $ | 68,204 |  |   | $ | 1,144,044 |  |   | $ | 1,212,248 |  |

----

Table of Contents

|                             |
|-----------------------------|
|                             |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (dollars in thousands)      |   | Pass |   | Special Mention |   | Substandard |   | Doubtful |   |   |
|                        |   | (Ratings 1-5) |   | (Rating 6) |   | (Rating 7) |   | (Rating 8) |   | Total |
| Commercial and agricultural |   | $ | 104,165 |  |   | $ | 6,318 |  |   | $ | 2,930 |  |   | $ | — |  |   | $ | 113,413 |  |
| Real estate - construction  |   | 68,995 |  |   | 2,411 |  |   | 6,921 |  |   | — |  |   | 78,327 |  |
| Real estate - mortgage:     |   |   |   |   |   |   |   |   |   |   |
| 1-4 family residential      |   | 646,897 |  |   | 5,363 |  |   | 15,342 |  |   | — |  |   | 667,602 |  |
| Commercial                  |   | 363,267 |  |   | 25,715 |  |   | 36,984 |  |   | 362 |  |   | 426,328 |  |
| Consumer                    |   | 71,350 |  |   | 11 |  |   | 376 |  |   | 381 |  |   | 72,118 |  |
| Total                       |   | $ | 1,254,674 |  |   | $ | 39,818 |  |   | $ | 62,553 |  |   | $ | 743 |  |   | $ | 1,357,788 |  |

|                             |
|-----------------------------|
|                             |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (dollars in thousands)      |   | Pass |   | Special Mention |   | Substandard |   | Doubtful |   |   |
|                        |   | (Ratings 1-5) |   | (Rating 6) |   | (Rating 7) |   | (Rating 8) |   | Total |
| Commercial and agricultural |   | $ | 67,277 |  |   | $ | 1,262 |  |   | $ | 3,713 |  |   | $ | — |  |   | $ | 72,252 |  |
| Real estate - construction  |   | 50,138 |  |   | 3,984 |  |   | 9,961 |  |   | — |  |   | 64,083 |  |
| Real estate - mortgage:     |   |   |   |   |   |   |   |   |   |   |
| 1-4 family residential      |   | 601,304 |  |   | 10,887 |  |   | 23,916 |  |   | — |  |   | 636,107 |  |
| Commercial                  |   | 307,661 |  |   | 29,711 |  |   | 57,552 |  |   | — |  |   | 394,924 |  |
| Consumer                    |   | 44,450 |  |   | 40 |  |   | 47 |  |   | 345 |  |   | 44,882 |  |
| Total                       |   | $ | 1,070,830 |  |   | $ | 45,884 |  |   | $ | 95,189 |  |   | $ | 345 |  |   | $ | 1,212,248 |  |

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Table of Contents

|                                                                                                                                                 |
|-------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                                                                                                            |   | December 31, 2014 |   | December 31, 2013 |
| (dollars in thousands)                                                                                                                          |   | Balance |   | Associated Reserves |   | Balance |   | Associated Reserves |
| Impaired loans, not individually reviewed for impairment                                                                                        |   | $ | 4,967 |  |   | $ | — |  |   | $ | 4,612 |  |   | $ | — |  |
| Impaired loans, individually reviewed, with no reserves                                                                                         |   | 26,631 |  |   | — |  |   | 39,866 |  |   | — |  |
| Impaired loans, individually reviewed, with reserves                                                                                            |   | 7,851 |  |   | 418 |  |   | 2,965 |  |   | 927 |  |
| Total impaired loans, excluding purchased impaired *                                                                                            |   | $ | 39,449 |  |   | 418 |  |   | $ | 47,443 |  |   | 927 |  |
|                                                                                                                                            |   |   |   |   |   |   |   |   |
| Purchased impaired loans with subsequent deterioration                                                                                          |   | $ | 118,701 |  |   | 3,237 |  |   | $ | 161,307 |  |   | 5,560 |  |
| Purchased impaired loans with no subsequent deterioration                                                                                       |   | 4,141 |  |   | — |  |   | 344 |  |   | — |  |
| Total Reserves                                                                                                                                  |   |   |   | $ | 3,655 |  |   |   |   | $ | 6,487 |  |
|                                                                                                                                            |   |   |   |   |   |   |   |   |
| Average impaired loans, excluding purchased impaired, calculated using a simple average                                                         |   | $ | 43,446 |  |   |   |   | $ | 65,527 |  |   |   |
| * Included at December 31, 2014 and December 31, 2013 were $14.1 million and $12.1 million, respectively, in restructured and performing loans. |

|                                                      |
|------------------------------------------------------|
|                                                      |  |  |  |  |  |  |  |  |
| (dollars in thousands)                               |   |   |   |   |
|                                                 |   | December 31, 2014 |   | December 31, 2013 |
| Loans held for investment:                           |   |   |   |   |
| Commercial and agricultural                          |   | $ | 608 |  |   | $ | 516 |  |
| Real estate - construction                           |   | 2,307 |  |   | 4,677 |  |
| Real estate - mortgage:                              |   |   |   |   |
| 1-4 family residential                               |   | 8,637 |  |   | 11,580 |  |
| Commercial                                           |   | 13,381 |  |   | 18,380 |  |
| Consumer                                             |   | 355 |  |   | 12 |  |
| Total nonaccrual loans                               |   | 25,288 |  |   | 35,165 |  |
| Loans more than 90 days delinquent, still on accrual |   | 5 |  |   | — |  |
| Total nonperforming loans                            |   | $ | 25,293 |  |   | $ | 35,165 |  |

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Table of Contents

|                                                      |
|------------------------------------------------------|
|                                                      |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                 |   |   |   | Unpaid |   |   |
| (dollars in thousands)                               |   | Recorded |   | Principal |   | Related |
|                                                 |   | Investment |   | Balance |   | Allowance |
| With no related allowance recorded:                  |   |   |   |   |   |   |
|   Commercial and agricultural              |   | $ | — |  |   | $ | — |  |   | $ | — |  |
|   Real estate - construction               |   | 2,344 |  |   | 2,898 |  |   | — |  |
|   Real estate - mortgage:                  |   |   |   |   |   |   |
| 1-4 family residential                               |   | 8,115 |  |   | 10,238 |  |   | — |  |
| Commercial                                           |   | 16,172 |  |   | 22,060 |  |   | — |  |
|   Consumer                                 |   | — |  |   | — |  |   | — |  |
| Total                                                |   | $ | 26,631 |  |   | $ | 35,196 |  |   | $ | — |  |
| With an allowance recorded:                          |   |   |   |   |   |   |
|   Commercial and agricultural              |   | $ | 498 |  |   | $ | 498 |  |   | $ | 58 |  |
|   Real estate - construction               |   | — |  |   | — |  |   | — |  |
|   Real estate - mortgage:                  |   |   |   |   |   |   |
| 1-4 family residential                               |   | 3,294 |  |   | 3,676 |  |   | 331 |  |
| Commercial                                           |   | 4,059 |  |   | 4,228 |  |   | 29 |  |
|   Consumer                                 |   | — |  |   | — |  |   | — |  |
| Total                                                |   | $ | 7,851 |  |   | $ | 8,402 |  |   | $ | 418 |  |
| Total individually evaluated impaired loans:         |   |   |   |   |   |   |
|   Commercial and agricultural              |   | $ | 498 |  |   | $ | 498 |  |   | $ | 58 |  |
|   Real estate - construction               |   | 2,344 |  |   | 2,898 |  |   | — |  |
|   Real estate - mortgage:                  |   |   |   |   |   |   |
| 1-4 family residential                               |   | 11,409 |  |   | 13,914 |  |   | 331 |  |
| Commercial                                           |   | 20,231 |  |   | 26,288 |  |   | 29 |  |
|   Consumer                                 |   | — |  |   | — |  |   | — |  |
| Total                                                |   | $ | 34,482 |  |   | $ | 43,598 |  |   | $ | 418 |  |
| PI loans with subsequent credit deterioration:       |   |   |   |   |   |   |
|   Commercial and agricultural              |   | $ | 7,535 |  |   | $ | 6,149 |  |   | $ | 257 |  |
|   Real estate - construction               |   | 8,619 |  |   | 9,855 |  |   | 507 |  |
|   Real estate - mortgage:                  |   |   |   |   |   |   |
|      1-4 family residential |   | 14,174 |  |   | 15,278 |  |   | 199 |  |
|      Commercial             |   | 87,345 |  |   | 90,830 |  |   | 2,085 |  |
|   Consumer                                 |   | 1,028 |  |   | 667 |  |   | 189 |  |
| Total                                                |   | $ | 118,701 |  |   | $ | 122,779 |  |   | $ | 3,237 |  |

----

Table of Contents

|                                                      |
|------------------------------------------------------|
|                                                      |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                 |   |   |   | Unpaid |   |   |
| (dollars in thousands)                               |   | Recorded |   | Principal |   | Related |
|                                                 |   | Investment |   | Balance |   | Allowance |
| With no related allowance recorded:                  |   |   |   |   |   |   |
|   Commercial and agricultural              |   | $ | 398 |  |   | $ | 643 |  |   | $ | — |  |
|   Real estate - construction               |   | 4,734 |  |   | 8,893 |  |   | — |  |
|   Real estate - mortgage:                  |   |   |   |   |   |   |
| 1-4 family residential                               |   | 11,154 |  |   | 14,431 |  |   | — |  |
| Commercial                                           |   | 23,579 |  |   | 28,905 |  |   | — |  |
|   Consumer                                 |   | — |  |   | — |  |   | — |  |
| Total                                                |   | $ | 39,865 |  |   | $ | 52,872 |  |   | $ | — |  |
| With an allowance recorded:                          |   |   |   |   |   |   |
|   Commercial and agricultural              |   | $ | — |  |   | $ | — |  |   | $ | — |  |
|   Real estate - construction               |   | — |  |   | — |  |   | — |  |
|   Real estate - mortgage:                  |   |   |   |   |   |   |
| 1-4 family residential                               |   | 2,965 |  |   | 3,032 |  |   | 927 |  |
| Commercial                                           |   | — |  |   | — |  |   | — |  |
|   Consumer                                 |   | — |  |   | — |  |   | — |  |
| Total                                                |   | $ | 2,965 |  |   | $ | 3,032 |  |   | $ | 927 |  |
| Total individually evaluated impaired loans:         |   |   |   |   |   |   |
|   Commercial and agricultural              |   | $ | 398 |  |   | $ | 643 |  |   | $ | — |  |
|   Real estate - construction               |   | 4,734 |  |   | 8,893 |  |   | — |  |
|   Real estate - mortgage:                  |   |   |   |   |   |   |
| 1-4 family residential                               |   | 14,119 |  |   | 17,463 |  |   | 927 |  |
| Commercial                                           |   | 23,579 |  |   | 28,905 |  |   | — |  |
|   Consumer                                 |   | — |  |   | — |  |   | — |  |
| Total                                                |   | $ | 42,830 |  |   | $ | 55,904 |  |   | $ | 927 |  |
| PI loans with subsequent credit deterioration:       |   |   |   |   |   |   |
|   Commercial and agricultural              |   | $ | 10,729 |  |   | $ | 10,344 |  |   | $ | 382 |  |
|   Real estate - construction               |   | 9,792 |  |   | 11,216 |  |   | 1,015 |  |
|   Real estate - mortgage:                  |   |   |   |   |   |   |
|      1-4 family residential |   | 26,628 |  |   | 28,143 |  |   | 724 |  |
|      Commercial             |   | 113,178 |  |   | 121,813 |  |   | 3,251 |  |
|   Consumer                                 |   | 980 |  |   | 785 |  |   | 188 |  |
| Total                                                |   | $ | 161,307 |  |   | $ | 172,301 |  |   | $ | 5,560 |  |

----

Table of Contents

|                                         |
|-----------------------------------------|
|                                         |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                    |   | For Twelve Months Ended |   | For Twelve Months Ended |   | For Twelve Months Ended |
|                                    |   | December 31, 2014 |   | December 31, 2013 |   | December 31, 2012 |
|                                    |   | Average |   | Interest |   | Average |   | Interest |   | Average |   | Interest |
| (dollars in thousands)                  |   | Recorded |   | Income |   | Recorded |   | Income |   | Recorded |   | Income |
|                                    |   | Investment |   | Recognized |   | Investment |   | Recognized |   | Investment |   | Recognized |
| With no related allowance recorded:     |   |   |   |   |   |   |   |   |   |   |   |   |
|   Commercial and agricultural |   | $ | — |  |   | $ | — |  |   | $ | 784 |  |   | $ | 8 |  |   | $ | 1,989 |  |   | $ | 42 |  |
|   Real estate - construction  |   | 2,867 |  |   | 40 |  |   | 9,075 |  |   | 35 |  |   | 15,130 |  |   | 92 |  |
|   Real estate - mortgage:     |   |   |   |   |   |   |   |   |   |   |   |   |
| 1-4 family residential                  |   | 8,797 |  |   | 131 |  |   | 11,920 |  |   | 100 |  |   | 18,237 |  |   | 204 |  |
| Commercial                              |   | 17,574 |  |   | 354 |  |   | 29,384 |  |   | 254 |  |   | 35,765 |  |   | 286 |  |
|   Consumer                    |   | — |  |   | — |  |   | — |  |   | — |  |   | — |  |   | — |  |
| Total                                   |   | $ | 29,238 |  |   | $ | 525 |  |   | $ | 51,163 |  |   | $ | 397 |  |   | $ | 71,121 |  |   | $ | 624 |  |
| With an allowance recorded:             |   |   |   |   |   |   |   |   |   |   |   |   |
|   Commercial and agricultural |   | $ | 535 |  |   | $ | 20 |  |   | $ | 283 |  |   | $ | 5 |  |   | $ | 706 |  |   | $ | 16 |  |
|   Real estate - construction  |   | — |  |   | — |  |   | 638 |  |   | 9 |  |   | 1,762 |  |   | — |  |
|   Real estate - mortgage:     |   |   |   |   |   |   |   |   |   |   |   |   |
| 1-4 family residential                  |   | 3,148 |  |   | 75 |  |   | 2,713 |  |   | 20 |  |   | 1,764 |  |   | 61 |  |
| Commercial                              |   | 4,149 |  |   | 196 |  |   | 4,127 |  |   | 4 |  |   | 13,069 |  |   | 445 |  |
|   Consumer                    |   | — |  |   | — |  |   | 83 |  |   | 1 |  |   | — |  |   | — |  |
| Total                                   |   | $ | 7,832 |  |   | $ | 291 |  |   | $ | 7,844 |  |   | $ | 39 |  |   | $ | 17,301 |  |   | $ | 522 |  |
| Total:                                  |   |   |   |   |   |   |   |   |   |   |   |   |
|   Commercial and agricultural |   | $ | 535 |  |   | $ | 20 |  |   | $ | 1,067 |  |   | $ | 13 |  |   | $ | 2,695 |  |   | $ | 58 |  |
|   Real estate - construction  |   | 2,867 |  |   | 40 |  |   | 9,713 |  |   | 44 |  |   | 16,892 |  |   | 92 |  |
|   Real estate - mortgage:     |   |   |   |   |   |   |   |   |   |   |   |   |
| 1-4 family residential                  |   | 11,945 |  |   | 206 |  |   | 14,633 |  |   | 120 |  |   | 20,001 |  |   | 265 |  |
| Commercial                              |   | 21,723 |  |   | 550 |  |   | 33,511 |  |   | 258 |  |   | 48,834 |  |   | 731 |  |
|   Consumer                    |   | — |  |   | — |  |   | 83 |  |   | 1 |  |   | — |  |   | — |  |
| Total                                   |   | $ | 37,070 |  |   | $ | 816 |  |   | $ | 59,007 |  |   | $ | 436 |  |   | $ | 88,422 |  |   | $ | 1,146 |  |

----

Table of Contents

|                             |
|-----------------------------|
|                             |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                        | For the Twelve Months Ended |   | For the Twelve Months Ended |
|                        | December 31, 2014 |   | December 31, 2013 |
| (dollars in thousands)      | Number |   | Recorded |   | Contract |   | Number |   | Recorded |   | Contract |
|                        | of Loans |   | Investment |   | Pricing |   | of Loans |   | Investment |   | Pricing |
| Commercial and agricultural | — |  |   | $ | — |  |   | $ | — |  |   | — |  |   | $ | — |  |   | $ | — |  |
| Real estate - construction  | — |  |   | — |  |   | — |  |   | — |  |   | — |  |   | — |  |
| Real estate - mortgage:     |   |   |   |   |   |   |   |   |   |   |   |
| 1-4 family residential      | — |  |   | — |  |   | — |  |   | — |  |   | — |  |   | — |  |
| Commercial                  | — |  |   | — |  |   | — |  |   | 3 |  |   | 1,747 |  |   | 1,244 |  |
| Consumer                    | — |  |   | — |  |   | — |  |   | — |  |   | — |  |   | — |  |
| Total                       | — |  |   | $ | — |  |   | $ | — |  |   | 3 |  |  | $ | 1,747 |  |   | $ | 1,244 |  |

----

Table of Contents

|                                                 |
|-------------------------------------------------|
|                                                 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                            |   | At December 31, 2014 |
| (dollars in thousands)                          |   | Purchased Impaired |   | Purchased Contractual |   | Total Purchased Loans |   | UnpaidPrincipalBalance |
| Commercial and agricultural                     |   | $ | 7,535 |  |   | $ | 4,288 |  |   | $ | 11,823 |  |   | $ | 10,508 |  |
| Real estate - construction                      |   | 9,197 |  |   | — |  |   | 9,197 |  |   | 10,463 |  |
| Real estate - mortgage:                         |   |   |   |   |   |   |   |   |
|    1-4 family residential        |   | 17,737 |  |   | 21,660 |  |   | 39,397 |  |   | 41,295 |  |
|    Commercial                    |   | 87,345 |  |   | — |  |   | 87,345 |  |   | 90,830 |  |
| Consumer                                        |   | 1,028 |  |   | — |  |   | 1,028 |  |   | 678 |  |
|        Total |   | $ | 122,842 |  |   | $ | 25,948 |  |   | $ | 148,790 |  |   | $ | 153,774 |  |

|                                                 |
|-------------------------------------------------|
|                                                 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                            |   | At December 31, 2013 |
| (dollars in thousands)                          |   | Purchased Impaired |   | Purchased Contractual |   | TotalPurchased Loans |   | UnpaidPrincipalBalance |
| Commercial and agricultural                     |   | $ | 10,729 |  |   | $ | 5,948 |  |   | $ | 16,677 |  |   | $ | 16,452 |  |
| Real estate - construction                      |   | 9,893 |  |   | — |  |   | 9,893 |  |   | 11,368 |  |
| Real estate - mortgage:                         |   |   |   |   |   |   |   |   |
|    1-4 family residential        |   | 26,853 |  |   | 22,127 |  |   | 48,980 |  |   | 51,359 |  |
|    Commercial                    |   | 113,178 |  |   | 373 |  |   | 113,551 |  |   | 122,197 |  |
| Consumer                                        |   | 999 |  |   | — |  |   | 999 |  |   | 798 |  |
|        Total |   | $ | 161,652 |  |   | $ | 28,448 |  |   | $ | 190,100 |  |   | $ | 202,174 |  |

|                                                       |
|-------------------------------------------------------|
|                                                       |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                  |   | For Twelve Months Ended |   | For Twelve Months Ended |
|                                                  |   | December 31, 2014 |   | December 31, 2013 |
|                                                  |   | Purchased Impaired |   | Purchased Impaired |
| (dollars in thousands)                                |   | Carrying Amount |   | FutureAccretion |   | Carrying Amount |   | Future Accretion |
| Balance, beginning of period                          |   | $ | 161,652 |  |   | $ | 29,989 |  |   | $ | 228,392 |  |   | $ | 30,300 |  |
|   Accretion                                 |   | 9,563 |  |   | (9,563 | ) |   | 16,032 |  |   | (16,032 | ) |
|   Increase in future accretion              |   | — |  |   | 4,472 |  |   | — |  |   | 15,721 |  |
|   Reclassification of loans and adjustments |   | (4,180 | ) |   | — |  |   | — |  |   | — |  |
|   Payments received                         |   | (43,314 | ) |   | — |  |   | (80,258 | ) |   | — |  |
|   Foreclosed and transferred to OREO        |   | (879 | ) |   | — |  |   | (2,514 | ) |   | — |  |
| Subtotal before allowance                             |   | 122,842 |  |   | 24,898 |  |   | 161,652 |  |   | 29,989 |  |
| Allowance for credit losses                           |   | (3,237 | ) |   | — |  |   | (5,560 | ) |   | — |  |
| Net carrying amount, end of period                    |   | $ | 119,605 |  |   | $ | 24,898 |  |   | $ | 156,092 |  |   | $ | 29,989 |  |

----

Table of Contents

|                                                                                   |
|-----------------------------------------------------------------------------------|
|                                                                                   |  |  |  |  |  |  |  |  |  |  |  |
| (dollars in thousands)                                                            |   | 2014 |   | 2013 |   | 2012 |
| Balance, beginning of period                                                      |   | $ | 26,785 |  |   | $ | 29,314 |  |   | 39,360 |  |
| Provision for (recovery of) losses                                                |   | (5,371 | ) |   | 523 |  |   | 14,049 |  |
| Net charge-offs:                                                                  |   |   |   |   |   |   |
| Charge-offs                                                                       |   | (7,703 | ) |   | (13,344 | ) |   | (30,968 | ) |
| Recoveries                                                                        |   | 6,634 |  |   | 10,292 |  |   | 6,873 |  |
| Net charge-offs                                                                   |   | (1,069 | ) |   | (3,052 | ) |   | (24,095 | ) |
| Balance, end of period                                                            |   | $ | 20,345 |  |   | $ | 26,785 |  |   | 29,314 |  |
| Annualized net charge-offs during the period to average loans held for investment |   | 0.08 | % |   | 0.26 | % |   | 2.13 | % |
| Annualized net charge-offs during the period to ALL                               |   | 5.25 | % |   | 11.39 | % |   | 82.20 | % |
| Allowance for loan losses to loans held for investment (1)                        |   | 1.50 | % |   | 2.21 | % |   | 2.41 | % |
| (1) Excludes discontinued operations                                              |   |   |   |   |   |   |

|                                      |
|--------------------------------------|
|                                      |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                 |   |   |   |   |   | Real Estate - Mortgage |   |   |   |   |
| (dollars in thousands)               |   | Commercial and Agricultural |   | Real Estate - Construction |   | 1-4 Family Residential |   | Commercial |   | Consumer |   | Total |
|                                 |   |   |   |   |   |   |   |   |   |   |   |   |
| ALL:                                 |   |   |   |   |   |   |   |   |   |   |   |   |
| Beginning balance at January 1, 2014 |   | $ | 2,931 |  |   | $ | 5,233 |  |   | $ | 8,869 |  |   | $ | 7,195 |  |   | $ | 2,557 |  |   | $ | 26,785 |  |
| Charge-offs                          |   | (1,449 | ) |   | (719 | ) |   | (1,273 | ) |   | (1,746 | ) |   | (2,516 | ) |   | (7,703 | ) |
| Recoveries                           |   | 951 |  |   | 2,110 |  |   | 1,187 |  |   | 1,165 |  |   | 1,221 |  |   | 6,634 |  |
| Provision (Recovery)                 |   | 1,482 |  |   | (3,461 | ) |   | (2,936 | ) |   | (2,435 | ) |   | 1,979 |  |   | (5,371 | ) |
| Ending balance at December 31, 2014  |   | $ | 3,915 |  |   | $ | 3,163 |  |   | $ | 5,847 |  |   | $ | 4,179 |  |   | $ | 3,241 |  |   | $ | 20,345 |  |

|                                      |
|--------------------------------------|
|                                      |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                 |   |   |   |   |   | Real Estate - Mortgage |   |   |   |   |
| (dollars in thousands)               |   | Commercial and Agricultural |   | Real Estate - Construction |   | 1-4 Family Residential |   | Commercial |   | Consumer |   | Total |
| ALL:                                 |   |   |   |   |   |   |   |   |   |   |   |   |
| Beginning balance at January 1, 2013 |   | $ | 3,238 |  |   | $ | 4,987 |  |   | $ | 8,701 |  |   | $ | 9,627 |  |   | $ | 2,761 |  |   | $ | 29,314 |  |
| Charge-offs                          |   | (1,277 | ) |   | (1,080 | ) |   | (4,032 | ) |   | (2,808 | ) |   | (4,147 | ) |   | (13,344 | ) |
| Recoveries                           |   | 1,623 |  |   | 2,681 |  |   | 1,266 |  |   | 3,048 |  |   | 1,674 |  |   | 10,292 |  |
| Provision (Recovery)                 |   | (653 | ) |   | (1,355 | ) |   | 2,934 |  |   | (2,672 | ) |   | 2,269 |  |   | 523 |  |
| Ending balance at December 31, 2013  |   | $ | 2,931 |  |   | $ | 5,233 |  |   | $ | 8,869 |  |   | $ | 7,195 |  |   | $ | 2,557 |  |   | $ | 26,785 |  |

----

Table of Contents

|                                      |
|--------------------------------------|
|                                      |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                 |   |   |   |   |   | Real Estate - Mortgage |   |   |   |   |
| (dollars in thousands)               |   | Commercial and Agricultural |   | Real Estate - Construction |   | 1-4 Family Residential |   | Commercial |   | Consumer |   | Total |
| ALL:                                 |   |   |   |   |   |   |   |   |   |   |   |   |
| Beginning balance at January 1, 2012 |   | $ | 5,776 |  |   | $ | 11,995 |  |   | $ | 8,885 |  |   | $ | 11,063 |  |   | $ | 1,641 |  |   | $ | 39,360 |  |
| Charge-offs                          |   | (3,494 | ) |   | (11,084 | ) |   | (6,422 | ) |   | (5,510 | ) |   | (4,458 | ) |   | (30,968 | ) |
| Recoveries                           |   | 991 |  |   | 3,237 |  |   | 573 |  |   | 852 |  |   | 1,220 |  |   | 6,873 |  |
| Provision (Recovery)                 |   | (35 | ) |   | 839 |  |   | 5,665 |  |   | 3,222 |  |   | 4,358 |  |   | 14,049 |  |
| Ending balance at December 31, 2012  |   | $ | 3,238 |  |   | $ | 4,987 |  |   | $ | 8,701 |  |   | $ | 9,627 |  |   | $ | 2,761 |  |   | $ | 29,314 |  |

|                                                           |
|-----------------------------------------------------------|
|                                                           |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                      |   |   |   |   |   | Real Estate - Mortgage |   |   |   |   |
| (dollars in thousands)                                    |   | Commercial and Agricultural |   | Real Estate - Construction |   | 1-4 Family Residential |   | Commercial |   | Consumer |   | Total |
| ALL:                                                      |   |   |   |   |   |   |   |   |   |   |   |   |
|   Individually evaluated for impairment         |   | $ | 58 |  |   | $ | — |  |   | $ | 331 |  |   | $ | 29 |  |   | $ | — |  |   | $ | 418 |  |
|   Collectively evaluated for impairment         |   | 3,600 |  |   | 2,656 |  |   | 5,317 |  |   | 2,065 |  |   | 3,052 |  |   | 16,690 |  |
|   PI loans evaluated for credit impairment      |   | 257 |  |   | 507 |  |   | 199 |  |   | 2,085 |  |   | 189 |  |   | 3,237 |  |
|   PI loans with no credit deterioration         |   | — |  |   | — |  |   | — |  |   | — |  |   | — |  |   | — |  |
| Total ALL                                                 |   | $ | 3,915 |  |   | $ | 3,163 |  |   | $ | 5,847 |  |   | $ | 4,179 |  |   | $ | 3,241 |  |   | $ | 20,345 |  |
| Loans held for investment:                                |   |   |   |   |   |   |   |   |   |   |   |   |
|   Individually evaluated for impairment         |   | $ | 498 |  |   | $ | 2,344 |  |   | $ | 11,409 |  |   | $ | 20,231 |  |   | $ | — |  |   | $ | 34,482 |  |
|   Collectively evaluated for impairment         |   | 105,380 |  |   | 66,786 |  |   | 638,456 |  |   | 318,752 |  |   | 71,090 |  |   | 1,200,464 |  |
|   PI loans with subsequent credit deterioration |   | 7,535 |  |   | 8,619 |  |   | 14,174 |  |   | 87,345 |  |   | 1,028 |  |   | 118,701 |  |
|   PI loans with no credit deterioration         |   | — |  |   | 578 |  |   | 3,563 |  |   | — |  |   | — |  |   | 4,141 |  |
| Total loans held for investment                           |   | $ | 113,413 |  |   | $ | 78,327 |  |   | $ | 667,602 |  |   | $ | 426,328 |  |   | $ | 72,118 |  |   | $ | 1,357,788 |  |

----

Table of Contents

|                                                           |
|-----------------------------------------------------------|
|                                                           |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                      |   |   |   |   |   | Real Estate - Mortgage |   |   |   |   |
| (dollars in thousands)                                    |   | Commercial and Agricultural |   | Real Estate - Construction |   | 1-4 Family Residential |   | Commercial |   | Consumer |   | Total |
| ALL:                                                      |   |   |   |   |   |   |   |   |   |   |   |   |
|   Individually evaluated for impairment         |   | $ | — |  |   | $ | — |  |   | $ | 927 |  |   | $ | — |  |   | $ | — |  |   | $ | 927 |  |
|   Collectively evaluated for impairment         |   | 2,549 |  |   | 4,218 |  |   | 7,218 |  |   | 3,944 |  |   | 2,369 |  |   | 20,298 |  |
|   PI loans evaluated for credit impairment      |   | 382 |  |   | 1,015 |  |   | 724 |  |   | 3,251 |  |   | 188 |  |   | 5,560 |  |
|   PI loans with no credit deterioration         |   | — |  |   | — |  |   | — |  |   | — |  |   | — |  |   | — |  |
| Total ALL                                                 |   | $ | 2,931 |  |   | $ | 5,233 |  |   | $ | 8,869 |  |   | $ | 7,195 |  |   | $ | 2,557 |  |   | $ | 26,785 |  |
| Loans held for investment:                                |   |   |   |   |   |   |   |   |   |   |   |   |
|   Individually evaluated for impairment         |   | $ | 398 |  |   | $ | 4,734 |  |   | $ | 14,119 |  |   | $ | 23,579 |  |   | $ | — |  |   | $ | 42,830 |  |
|   Collectively evaluated for impairment         |   | 61,125 |  |   | 49,457 |  |   | 595,135 |  |   | 258,167 |  |   | 43,883 |  |   | 1,007,767 |  |
|   PI loans with subsequent credit deterioration |   | 10,729 |  |   | 9,792 |  |   | 26,628 |  |   | 113,178 |  |   | 980 |  |   | 161,307 |  |
|   PI loans with no credit deterioration         |   | — |  |   | 100 |  |   | 225 |  |   | — |  |   | 19 |  |   | 344 |  |
| Total loans held for investment                           |   | $ | 72,252 |  |   | $ | 64,083 |  |   | $ | 636,107 |  |   | $ | 394,924 |  |   | $ | 44,882 |  |   | $ | 1,212,248 |  |

----

Table of Contents

|                                          |
|------------------------------------------|
|                                          |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                     |   | For Twelve Months Ended December 31, 2014 |   | For Twelve Months Ended December 31, 2013 |   | For Twelve Months Ended December 31, 2012 |
|                                     |   |   |   | Pre-Modified |   | Post-Modified |   |   |   | Pre-Modified |   | Post-Modified |   |   |   | Pre-Modified |   | Post-Modified |
|                                     |   |   |   | Outstanding |   | Outstanding |   |   |   | Outstanding |   | Outstanding |   |   |   | Outstanding |   | Outstanding |
| (dollars in thousands)                   |   | Number |   | Recorded |   | Recorded |   | Number |   | Recorded |   | Recorded |   | Number |   | Recorded |   | Recorded |
|                                     |   | of Loans |   | Investment |   | Investment |   | of Loans |   | Investment |   | Investment |   | of Loans |   | Investment |   | Investment |
| Commercial and agricultural              |   | 2 |  |   | $ | 94 |  |   | $ | 94 |  |   | — |  |   | $ | — |  |   | $ | — |  |   | 1 |  |   | $ | 312 |  |   | $ | 127 |  |
| Real estate - construction               |   | 4 |  |   | 1,607 |  |   | 1,607 |  |   | 2 |  |   | 125 |  |   | 125 |  |   | 8 |  |   | 1,994 |  |   | 1,335 |  |
| Real estate - mortgage:                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    1-4 family residential |   | 11 |  |   | 1,227 |  |   | 1,303 |  |   | 12 |  |   | 3,387 |  |   | 3,451 |  |   | 3 |  |   | 566 |  |   | 565 |  |
|    Commercial             |   | 8 |  |   | 3,470 |  |   | 3,386 |  |   | 5 |  |   | 5,531 |  |   | 5,238 |  |   | 5 |  |   | 690 |  |   | 667 |  |
| Consumer                                 |   | — |  |   | — |  |   | — |  |   | — |  |   | — |  |   | — |  |   | — |  |   | — |  |   | — |  |
|     Total            |   | 25 |  |   | $ | 6,398 |  |   | $ | 6,390 |  |   | 19 |  |   | $ | 9,043 |  |   | $ | 8,814 |  |   | 17 |  |   | $ | 3,562 |  |   | $ | 2,694 |  |

|         |                                                                                  |
|---------|----------------------------------------------------------------------------------|
| • | Straight Lines of Credit - Unfunded balance of line of credit (100% utilization) |

|         |                                                                                                   |
|---------|---------------------------------------------------------------------------------------------------|
| • | Revolving Lines of Credit - Average Utilization (for the last 12 months) less Current Utilization |

|         |                                         |
|---------|-----------------------------------------|
| • | Letters of Credit - 10% utilization |

----

Table of Contents

|                                           |
|-------------------------------------------|
|                                           |  |  |  |  |  |  |  |  |
| (dollars in thousands)                    |   | 2014 |   | 2013 |
| Land                                      |   | $ | 14,058 |  |   | $ | 14,460 |  |
| Building and improvements                 |   | 47,542 |  |   | 49,463 |  |
| Furniture and equipment                   |   | 39,641 |  |   | 43,648 |  |
| Leasehold improvements                    |   | 906 |  |   | 1,017 |  |
| Premises and equipment, gross             |   | 102,147 |  |   | 108,588 |  |
| Accumulated depreciation and amortization |   | (55,365 | ) |   | (57,699 | ) |
| Premises and equipment, net               |   | $ | 46,782 |  |   | $ | 50,889 |  |

|                                                   |
|---------------------------------------------------|
|                                                   |  |  |  |  |  |  |  |  |
| (dollars in thousands)                            |   | December 31, 2014 |   | December 31, 2013 |  |
| Real estate acquired in settlement of loans       |   | $ | 20,122 |  |   | $ | 28,353 |  |
| Personal property acquired in settlement of loans |   | 289 |  |   | 42 |  |
| Total property acquired in settlement of loans    |   | $ | 20,411 |  |   | $ | 28,395 |  |

|                                                                  |
|------------------------------------------------------------------|
|                                                                  |  |  |  |  |  |  |  |  |
|                                                             |   | For Year Ended |
| (dollars in thousands)                                           |   | December 31, 2014 |   | December 31, 2013 |
| Real estate acquired in settlement of loans, beginning of period |   | $ | 28,353 |  |   | $ | 62,796 |  |
| Plus:  New real estate acquired in settlement of loans           |   | 4,372 |  |   | 15,001 |  |
| Less:  Sales of real estate acquired in settlement of loans      |   | (11,849 | ) |   | (45,523 | ) |
| Less:  Write-downs and net loss on sales charged to expense      |   | (754 | ) |   | (3,921 | ) |
| Real estate acquired in settlement of loans, end of period       |   | $ | 20,122 |  |   | $ | 28,353 |  |

----

Table of Contents

|                                                                  |
|------------------------------------------------------------------|
|                                                                  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (Dollars in thousands)                                           |   | Unrealized Gains (Losses) on Available-For-Sale Securities |   | Interest Rate Swaps |   | Defined Benefit Plan Items |   | Total |
|                                                             |   |   |   |   |   |   |   |   |
| Beginning balance January 1, 2014                                |   | $ | (14,476 | ) |   | $ | — |  |   | $ | (3,129 | ) |   | $ | (17,605 | ) |
| Other comprehensive income (loss) before reclassifications       |   | 12,060 |  |   | (331 | ) |   | (1,241 | ) |   | 10,488 |  |
| Amounts reclassified from accumulated other comprehensive income |   | (601 | ) |   | 7 |  |   | 236 |  |   | (358 | ) |
| Net current period other comprehensive income (loss)             |   | 11,459 |  |   | (324 | ) |   | (1,005 | ) |   | 10,130 |  |
| Ending balance December 31, 2014                                 |   | $ | (3,017 | ) |   | $ | (324 | ) |   | $ | (4,134 | ) |   | $ | (7,475 | ) |

|                                                                  |
|------------------------------------------------------------------|
|                                                                  |  |  |  |  |  |  |  |  |  |  |  |  |
| (Dollars in thousands)                                           |   | Unrealized Gains (Losses) on Available-For-Sale Securities |   | Defined Benefit Plan Items |   | Total |
|                                                             |   |   |   |   |   |   |
| Beginning balance January 1, 2013                                |   | $ | 3,650 |  |   | $ | (3,973 | ) |   | $ | (323 | ) |
| Other comprehensive income (loss) before reclassifications       |   | (16,447 | ) |   | 1,031 |  |   | (15,416 | ) |
| Amounts reclassified from accumulated other comprehensive income |   | (1,679 | ) |   | (187 | ) |   | (1,866 | ) |
| Net current period other comprehensive income (loss)             |   | (18,126 | ) |   | 844 |  |   | (17,282 | ) |
| Ending balance December 31, 2013                                 |   | $ | (14,476 | ) |   | $ | (3,129 | ) |   | $ | (17,605 | ) |

----

Table of Contents

|                                          |
|------------------------------------------|
|                                          |  |  |  |  |  |  |  |  |  |
| (Dollars in thousands)                   | Amount Reclassified from AOCI |   |   |
|                                     | 2014 |   | 2013 |   | Line Item in the Consolidated Statement of Operations |
| Available-for-sale securities:           |   |   |   |   |   |
| Net realized gains on sale of securities | $ | (974 | ) |   | $ | (2,772 | ) |   | Securities gains, net |
| Income tax expense                       | 373 |  |   | 1,093 |  |   | Income tax expense |
| Total, net of tax                        | (601 | ) |   | (1,679 | ) |   |   |
|                                     |   |   |   |   |   |
| Interest rate swaps:                     |   |   |   |   |   |
| Swap ineffectiveness expense             | 12 |  |   | — |  |   | Miscellaneous expense |
| Income tax benefit                       | (5 | ) |   | — |  |   | Income tax expense |
| Total, net of tax                        | 7 |  |   | — |  |   |   |
|                                     |   |   |   |   |   |
| Defined benefit plan items:              |   |   |   |   |   |
| Net actuarial (gains) losses             | 382 |  |   | (302 | ) |   | Personnel expense |
| Income tax (benefit) expense             | (146 | ) |   | 115 |  |   | Income tax expense |
| Total, net of tax                        | 236 |  |   | (187 | ) |   |   |
| Total reclassifications for the period   | $ | (358 | ) |   | $ | (1,866 | ) |   |   |

|                          |
|--------------------------|
|                          |  |  |  |
| (dollars in thousands)   |   |
| Year ending December 31, |   |
| 2015                     | $ | 2,028 |  |
| 2016                     | 1,877 |  |
| 2017                     | 1,467 |  |
| 2018                     | 1,270 |  |
| 2019                     | 1,215 |  |
| Thereafter               | 9,658 |  |
| Total lease commitments  | $ | 17,515 |  |

----

Table of Contents

|                                                            |
|------------------------------------------------------------|
|                                                            |  |  |  |  |  |  |  |  |  |  |  |  |
| (dollars in thousands)                                     |   | 2014 |   | 2013 |   | 2012 |
| Current:                                                   |   |   |   |   |   |   |
| Federal                                                    |   | $ | — |  |   | $ | — |  |   | $ | — |  |
| State                                                      |   | — |  |   | — |  |   | — |  |
| Total current taxes                                        |   | — |  |   | — |  |   | — |  |
| Deferred                                                   |   |   |   |   |   |   |
| Federal                                                    |   | 3,714 |  |   | 21,276 |  |   | (13,709 | ) |
| State                                                      |   | 537 |  |   | 14,628 |  |   | (2,722 | ) |
| Total deferred taxes                                       |   | 4,251 |  |   | 35,904 |  |   | (16,431 | ) |
| Increase (decrease) in valuation allowance                 |   | (146,743 | ) |   | (34,578 | ) |   | 15,392 |  |
| Total income tax (benefit) expense - continuing operations |   | $ | (142,492 | ) |   | $ | 1,326 |  |   | $ | (1,039 | ) |

|                                                                             |
|-----------------------------------------------------------------------------|
|                                                                             |  |  |  |  |  |  |  |  |  |  |  |  |
| (dollars in thousands)                                                      |   |   |   |   |   |   |
|                                                                        |   | 2014 |   | 2013 |   | 2012 |
| Amount of tax computed using Federal statutory tax rate of 35% in all years |   | $ | 2,788 |  |   | $ | (55 | ) |   | $ | (14,365 | ) |
| Increases (decreases) resulting from effects of:                            |   |   |   |   |   |   |
| Non-taxable income                                                          |   | (54 | ) |   | (88 | ) |   | (169 | ) |
| State income taxes, net of federal benefit                                  |   | 349 |  |   | 9,508 |  |   | (1,769 | ) |
| Valuation allowance on deferred tax assets                                  |   | (146,743 | ) |   | (34,578 | ) |   | 15,392 |  |
| Bank-owned life insurance                                                   |   | (403 | ) |   | (375 | ) |   | — |  |
| Reduction of deferred tax assets at Granite                                 |   | — |  |   | 28,293 |  |   | — |  |
| Other                                                                       |   | 1,571 |  |   | (1,379 | ) |   | (128 | ) |
| Total income tax (benefit) expense - continuing operations                  |   | $ | (142,492 | ) |   | $ | 1,326 |  |   | $ | (1,039 | ) |

----

Table of Contents

|                                             |
|---------------------------------------------|
|                                             |  |  |  |  |  |  |  |  |
| (dollars in thousands)                      |   | December 31, 2014 |   | December 31, 2013 |
| Deferred tax assets:                        |   |   |   |   |
| Allowance for loan losses                   |   | $ | 8,037 |  |   | $ | 10,364 |  |
| Net operating loss                          |   | 137,412 |  |   | 135,050 |  |
| Compensation and benefit plans              |   | 1,277 |  |   | 995 |  |
| Fair value basis on securities              |   | 656 |  |   | 919 |  |
| Pension and other post-retirement benefits  |   | 1,470 |  |   | 1,080 |  |
| Other real estate owned                     |   | 2,256 |  |   | 4,090 |  |
| Gross unrealized securities losses          |   | 2,560 |  |   | 10,215 |  |
| Interest on nonperforming loans             |   | — |  |   | 1,339 |  |
| Other                                       |   | 851 |  |   | 529 |  |
| Subtotal deferred tax assets                |   | 154,519 |  |   | 164,581 |  |
| Less: Valuation allowance                   |   | (1,300 | ) |   | (148,043 | ) |
| Total deferred tax assets                   |   | 153,219 |  |   | 16,538 |  |
| Deferred tax liabilities:                   |   |   |   |   |
| Core deposit intangible                     |   | 1,513 |  |   | 2,051 |  |
| Depreciable basis of premises and equipment |   | 563 |  |   | 495 |  |
| Net deferred loan fees and costs            |   | 1,306 |  |   | 1,077 |  |
| Gross unrealized securities gains           |   | 490 |  |   | 1,249 |  |
| Fair value basis of loans                   |   | 2,473 |  |   | 951 |  |
| Other                                       |   | 441 |  |   | 500 |  |
| Total deferred tax liabilities              |   | 6,786 |  |   | 6,323 |  |
| Net deferred tax assets                     |   | $ | 146,433 |  |   | $ | 10,215 |  |

|         |                                                                                                                                                 |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Improvements in the asset quality of the loan portfolio and diminishment of credit-related losses that were the source of the Company's losses; |

|         |                                                                                                                                                                                 |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Implementation of strong internal controls making it unlikely that the large volume of troubled loans leading to the Company’s losses between 2008 and 2012 will reoccur; |

|         |                                                                   |
|---------|-------------------------------------------------------------------|
| • | The increased remoteness and diminished relevance of such losses; |

----

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|         |                                                                                                          |
|---------|----------------------------------------------------------------------------------------------------------|
| • | Continued improvement of the Company’s financial metrics and six consecutive quarters of earnings; |

|         |                                                                                                             |
|---------|-------------------------------------------------------------------------------------------------------------|
| • | A credible forecast of future taxable income based on management’s demonstrated forecasting accuracy; |

|         |                                                                                                               |
|---------|---------------------------------------------------------------------------------------------------------------|
| • | Various cost-reduction initiatives that will have a continuing positive effect on earnings in future periods; |

|         |                                              |
|---------|----------------------------------------------|
| • | Availability of tax planning strategies, and |

|         |                                  |
|---------|----------------------------------|
| • | Long-dated carryforward periods. |

----

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|                                     |
|-------------------------------------|
|                                     |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (dollars in thousands)              |   | December 31, 2014 |   | % ofTotal |   | December 31, 2013 |   | % ofTotal |
| Noninterest-bearing demand deposits |   | $ | 323,776 |  |   | 18.04 | % |   | $ | 290,461 |  |   | 16.61 | % |
| Interest-bearing demand deposits    |   | 358,162 |  |   | 19.96 |  |   | 347,791 |  |   | 19.89 |  |
| Savings deposits                    |   | 86,349 |  |   | 4.81 |  |   | 80,507 |  |   | 4.61 |  |
| Money market deposits               |   | 437,821 |  |   | 24.40 |  |   | 447,672 |  |   | 25.60 |  |
| Brokered deposits                   |   | 37,673 |  |   | 2.10 |  |   | 29,219 |  |   | 1.67 |  |
| Time deposits less than $250,000    |   | 500,672 |  |   | 27.90 |  |   | 517,687 |  |   | 29.60 |  |
| Time deposits $250,000 or more      |   | 49,967 |  |   | 2.79 |  |   | 35,368 |  |   | 2.02 |  |
| Total deposits                      |   | $ | 1,794,420 |  |   | 100.00 | % |   | $ | 1,748,705 |  |   | 100.00 | % |

|                          |
|--------------------------|
|                          |  |  |  |
| (dollars in thousands)   |   |
| Year ending December 31, |   |
| 2015                     | $ | 315,838 |  |
| 2016                     | 132,147 |  |
| 2017                     | 66,186 |  |
| 2018                     | 30,122 |  |
| 2019                     | 43,764 |  |
| Thereafter               | 255 |  |
| Total time deposits      | $ | 588,312 |  |

|                                       |
|---------------------------------------|
|                                       |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                  |   | December 31, |
| (dollars in thousands)                |   | 2014 |   | 2013 |
|                                  |   | Balance |   | Rate |   | Balance |   | Rate |
| Short-term borrowings:                |   |   |   |   |   |   |   |   |
| Retail customer repurchase agreements |   | $ | 9,076 |  |   | 0.21 | % |   | $ | 6,917 |  |   | 0.21 | % |
| Total short-term borrowings           |   | $ | 9,076 |  |   |   |   | $ | 6,917 |  |   |   |
| Long-term debt:                       |   |   |   |   |   |   |   |   |
| Federal Home Loan Bank advances       |   | $ | 68,234 |  |   | 1.68 |  |   | $ | 73,283 |  |   | 1.80 |  |
| Long-term notes payable               |   | 5,338 |  |   | 1.43 |  |   | 5,263 |  |   | 1.43 |  |
| Junior subordinated debt              |   | 56,702 |  |   | 1.78 |  |   | 56,702 |  |   | 1.77 |  |
| Total long-term debt                  |   | $ | 130,274 |  |   |   |   | $ | 135,248 |  |   |   |

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|                                 |
|---------------------------------|
|                                 |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (dollars in thousands)          |   | 2014 | 2013 | 2012 |   |
|                            |   | RetailRepurchaseAgreements |   | RetailRepurchaseAgreements |   | RetailRepurchaseAgreements |   |
| Balance at December 31     |   | $ | 9,076 |  |   | $ | 6,917 |  |   | $ | 8,675 |  |   |
| Average balance during the year |   | 7,713 |  |   | 9,852 |  |   | 9,861 |  |   |
| Maximum month end balance       |   | 12,217 |  |   | 13,064 |  |   | 12,720 |  |   |
| Weighted average interest rate: |   |   |   |   |   |   |   |
| At December 31             |   | 0.21 | % |   | 0.21 | % |   | 0.19 | % |   |
| During the year                 |   | 0.21 |  |   | 0.21 |  |   | 0.29 |  |   |

|                                  |
|----------------------------------|
|                                  |  |  |  |
| (dollars in thousands)           |   |
| Twelve Months Ended December 31, |   |
| 2015                             | $ | 3,000 |  |
| 2016                             | 5,000 |  |
| 2017                             | 5,000 |  |
| 2018                             | 5,234 |  |
| 2019                             | — |  |
| 2020 and thereafter              | 50,000 |  |
| Total FHLB advances              | $ | 68,234 |  |

|                        |
|------------------------|
|                        |  |  |  |  |  |  |  |  |  |  |  |
| (dollars in thousands) |   |   |   |   |   |   |
|                   |   |   |   | December 31, |
| Maturity               |   | Interest Rate |   | 2014 |   | 2013 |
| December 29, 2014 |   | 3.3125 | % |   | $ | — |  |   | $ | 5,000 |  |
| September 8, 2015 |   | 3.7100 |  |   | 3,000 |  |   | 3,000 |  |
| September 27, 2016     |   | 0.9300 |  |   | 5,000 |  |   | 5,000 |  |
| September 27, 2017     |   | 1.4200 |  |   | 5,000 |  |   | 5,000 |  |
| August 27, 2018   |   | 6.1500 |  |   | 234 |  |   | 283 |  |
| September 27, 2018     |   | 1.8400 |  |   | 5,000 |  |   | 5,000 |  |
| June 15, 2020          |   | 1.6224 |  |   | 50,000 |  |   | 50,000 |  |
|                   |   |   |   | $ | 68,234 |  |   | $ | 73,283 |  |

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|                                      |
|--------------------------------------|
|                                      |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (dollars in thousands)               |   |   |   | Commencement |   |   |   |   |   |   |   |   |   |
|                                 |   | Stated |   | of Early |   | As of December 31, |   |
|                                 |   | Maturity |   | Redemption |   | 2014 |   | 2013 |   |
| Issuer                               |   | Date |   | Period |   | Principal |   | Unpaid Interest |   | Principal |   | Unpaid Interest | Interest Rate |
| FNB Trust I                          |   | 12/15/2035 |   | 12/15/2010 |   | $ | 20,619 |  |   | $ | 1,107 |  |   | $ | 20,619 |  |   | $ | 753 |  | 3 month LIBOR + 1.37% =1.61% at 12/31/14 |
| FNB Trust II                         |   | 6/30/2036 |   | 6/30/2011 |   | 30,928 |  |   | 1,588 |  |   | 30,928 |  |   | 1,078 |  | 3 month LIBOR + 1.32% =1.58% at 12/31/14 |
| Catawba Trust II                     |   | 12/30/2032 |   | 12/30/2007 |   | 5,155 |  |   | 608 |  |   | 5,155 |  |   | 404 |  | 3 month LIBOR + 3.35% =3.61% at 12/31/14 |
| Total Junior Subordinated Debentures |   |   |   | $ | 56,702 |  |   | $ | 3,303 |  |   | $ | 56,702 |  |   | $ | 2,235 |  |   |

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|                                                              |
|--------------------------------------------------------------|
|                                                              |  |  |  |  |  |  |  |  |
| (dollars in thousands)                                       |   |   |   |   |
|                                                         |   | 2014 |   | 2013 |
| Change in Benefit Obligation                                 |   |   |   |   |
| Benefit obligation at beginning of year                      |   | $ | 13,965 |  |   | $ | 15,342 |  |
| Service cost                                                 |   | — |  |   | — |  |
| Interest cost                                                |   | 711 |  |   | 646 |  |
| Net actuarial (gain) loss                                    |   | 1,399 |  |   | (1,219 | ) |
| Benefits paid                                                |   | (906 | ) |   | (804 | ) |
| Benefit obligation at end of year                            |   | $ | 15,169 |  |   | $ | 13,965 |  |
| Change in Plan Assets                                        |   |   |   |   |
| Fair value of plan assets at beginning of year               |   | $ | 12,831 |  |   | $ | 12,370 |  |
| Actual return on plan assets                                 |   | 362 |  |   | 1,265 |  |
| Employer contributions                                       |   | 150 |  |   | — |  |
| Benefits paid                                                |   | (906 | ) |   | (804 | ) |
| Fair value of plan assets at December 31                |   | $ | 12,437 |  |   | $ | 12,831 |  |
| Funded Status at End of Year                                 |   | $ | (2,732 | ) |   | $ | (1,134 | ) |
| Amounts Recognized in the Consolidated Balance Sheets        |   |   |   |   |
| Other Liabilities                                            |   | $ | (2,732 | ) |   | $ | (1,134 | ) |
| Amounts Recognized in Accumulated Other Comprehensive Income |   |   |   |   |
| Net actuarial loss                                           |   | $ | 6,855 |  |   | $ | 5,223 |  |
| Net amount recognized                                        |   | $ | 6,855 |  |   | $ | 5,223 |  |
| Weighted-Average Allocation of Plan Assets at End of Year    |   |   |   |   |
| Equity securities                                            |   | 46 | % |   | 65 | % |
| Debt securities                                              |   | 54 |  |   | 35 |  |
| Cash and cash equivalents                                    |   | — |  |   | — |  |
| Fixed income funds                                           |   | — |  |   | — |  |
| Total                                                        |   | 100 | % |   | 100 | % |
| Weighted-Average Plan Assumptions at End of Year             |   |   |   |   |
| Discount rate                                                |   | 4.50 | % |   | 5.10 | % |
| Expected long-term rate of return on plan assets             |   | 8.00 | % |   | 8.00 | % |
| Rate of increase in compensation levels                      |   | 5.50 | % |   | 5.50 | % |

----

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|                                                                            |
|----------------------------------------------------------------------------|
|                                                                            |  |  |  |  |  |  |  |  |  |  |  |  |
| (dollars in thousands)                                                     |   | 2014 |   | 2013 |   | 2012 |
| Net Periodic Pension Cost (Income)                                         |   |   |   |   |   |   |
| Service cost                                                               |   | $ | — |  |   | $ | — |  |   | $ | — |  |
| Interest cost                                                              |   | 711 |  |   | 646 |  |   | 668 |  |
| Expected return on plan assets                                             |   | (987 | ) |   | (958 | ) |   | (804 | ) |
| Amortization of prior service cost                                         |   | — |  |   | — |  |   | — |  |
| Amortization of net actuarial loss                                         |   | 392 |  |   | 562 |  |   | 524 |  |
| Total pension cost                                                         |   | $ | 116 |  |   | $ | 250 |  |   | $ | 388 |  |
| Other Changes in Plan Assets and Benefit Obligations                       |   |   |   |   |   |   |
| Recognized in Other Comprehensive Income:                                  |   |   |   |   |   |   |
| Net actuarial loss (gain)                                                  |   | $ | 1,632 |  |   | $ | (2,089 | ) |   | $ | 22 |  |
| Amortization of prior service credit                                       |   | — |  |   | — |  |   | — |  |
| Total recognized in other comprehensive loss (income)                      |   | 1,632 |  |   | (2,089 | ) |   | 22 |  |
| Total Recognized in Net Periodic Pension Cost and Other Comprehensive Loss |   | $ | 1,748 |  |   | $ | (1,839 | ) |   | $ | 410 |  |

|                                    |
|------------------------------------|
|                                    |  |  |  |  |  |  |  |  |  |  |  |  |
| (dollars in thousands)             |   | FairValue |   | Quoted Prices in Active Markets for Identical Assets(Level 1) |   | Significant Other Observable Inputs(Level 2) |
| Equity securities                  |   | $ | 5,668 |  |   | $ | 5,668 |  |   | $ | — |  |
| Debt securities                    |   | 6,726 |  |   | 6,726 |  |   | — |  |
| Other                              |   | 43 |  |   | 43 |  |   | — |  |
| Total fair value of pension assets |   | $ | 12,437 |  |   | $ | 12,437 |  |   | $ | — |  |

|                                    |
|------------------------------------|
|                                    |  |  |  |  |  |  |  |  |  |  |  |  |
| (dollars in thousands)             |   | FairValue |   | Quoted Prices in Active Markets for Identical Assets(Level 1) |   | Significant Other Observable Inputs(Level 2) |
| Equity securities                  |   | $ | 8,321 |  |   | $ | 8,321 |  |   | $ | — |  |
| Debt securities                    |   | 4,473 |  |   | 4,473 |  |   | — |  |
| Other                              |   | 37 |  |   | 37 |  |   | — |  |
| Total fair value of pension assets |   | $ | 12,831 |  |   | $ | 12,831 |  |   | $ | — |  |

----

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----

Table of Contents

|                                                            |
|------------------------------------------------------------|
|                                                            |  |  |  |  |  |  |  |  |
| (dollars in thousands)                                     |   |   |   |   |
|                                                       |   | 2014 |   | 2013 |
| Change in Benefit Obligation                               |   |   |   |   |
| Benefit obligation at beginning of year                    |   | $ | 263 |  |   | $ | 1,345 |  |
| Service cost                                               |   | — |  |   | — |  |
| Interest cost                                              |   | 11 |  |   | 84 |  |
| Amendments to plan                                         |   | — |  |   | — |  |
| Net actuarial gain                                         |   | (185 | ) |   | (13 | ) |
| Benefits paid                                              |   | (71 | ) |   | (1,153 | ) |
| Benefit obligation at end of year                          |   | $ | 18 |  |   | $ | 263 |  |
| Change in Plan Assets                                      |   |   |   |   |
| Employer contributions                                     |   | $ | 71 |  |   | $ | 1,153 |  |
| Benefits paid                                              |   | (71 | ) |   | (1,153 | ) |
| Fair value of plan assets at end of year                   |   | $ | — |  |   | $ | — |  |
| Funded Status at December 31                          |   | $ | (18 | ) |   | $ | (263 | ) |
| Amounts Recognized in the Consolidated Balance Sheets      |   |   |   |   |
| Other Liabilities                                          |   | $ | 18 |  |   | $ | 263 |  |
| Amounts Recognized in Accumulated Other Comprehensive Loss |   |   |   |   |
| Net actuarial gain                                         |   | $ | — |  |   | $ | — |  |
| Prior service cost                                         |   | — |  |   | — |  |
| Net amount recognized                                      |   | $ | — |  |   | $ | — |  |
| Weighted-Average Plan Assumption at End of Year:           |   |   |   |   |
| Discount rate                                              |   | — | % |   | 7.00 | % |

|                                                                                           |
|-------------------------------------------------------------------------------------------|
|                                                                                           |  |  |  |  |  |  |  |  |  |  |  |  |
| (dollars in thousands)                                                                    |   | 2014 |   | 2013 |   | 2012 |
| Net Periodic SERP Cost                                                                    |   |   |   |   |   |   |
| Service cost                                                                              |   | $ | — |  |   | $ | — |  |   | $ | — |  |
| Interest cost                                                                             |   | 11 |  |   | 84 |  |   | 107 |  |
| Amortization of prior service cost                                                        |   | — |  |   | 155 |  |   | 31 |  |
| Amortization of net actuarial gain                                                        |   | — |  |   | (1,015 | ) |   | (48 | ) |
| Net periodic SERP cost (income)                                                           |   | $ | 11 |  |   | $ | (776 | ) |   | $ | 90 |  |
| Other Changes in Plan Assets and Benefit Obligations                                      |   |   |   |   |   |   |
| Recognized in Other Comprehensive Income                                                  |   |   |   |   |   |   |
| Net actuarial loss (gain)                                                                 |   | $ | — |  |   | $ | 1,002 |  |   | $ | (409 | ) |
| Amortization of prior service credit                                                      |   | — |  |   | (155 | ) |   | (31 | ) |
| Total recognized in other comprehensive loss (income)                                     |   | — |  |   | 847 |  |   | (440 | ) |
| Total Recognized in Net Periodic SERP (Income) Cost and Other Comprehensive Income (Loss) |   | $ | 11 |  |   | $ | 71 |  |   | $ | (350 | ) |

----

Table of Contents

|                                                            |
|------------------------------------------------------------|
|                                                            |  |  |  |  |  |  |  |  |
| (dollars in thousands)                                     |   |   |   |   |
|                                                       |   | 2014 |   | 2013 |
| Change in Benefit Obligation                               |   |   |   |   |
| Benefit obligation at beginning of year                    |   | $ | 1,138 |  |   | $ | 1,377 |  |
| Service cost                                               |   | — |  |   | — |  |
| Interest cost                                              |   | 55 |  |   | 57 |  |
| Net actuarial gain                                         |   | (15 | ) |   | (223 | ) |
| Plan participant contributions                             |   | 82 |  |   | 81 |  |
| Benefits paid                                              |   | (175 | ) |   | (154 | ) |
| Benefit obligation at end of year                          |   | $ | 1,085 |  |   | $ | 1,138 |  |
| Change in Plan Assets                                      |   |   |   |   |
| Employer contributions                                     |   | $ | 93 |  |   | $ | 73 |  |
| Plan participant contributions                             |   | 82 |  |   | 81 |  |
| Benefits paid                                              |   | (175 | ) |   | (154 | ) |
| Fair value of plan assets at end of year                   |   | $ | — |  |   | $ | — |  |
| Funded Status at December 31                          |   | $ | (1,085 | ) |   | $ | (1,138 | ) |
| Amounts Recognized in the Consolidated Balance Sheets      |   |   |   |   |
| Other Liabilities                                          |   | $ | 1,085 |  |   | $ | 1,138 |  |
| Amounts Recognized in Accumulated Other Comprehensive Loss |   |   |   |   |
| Net actuarial loss                                         |   | $ | (147 | ) |   | $ | (138 | ) |
| Prior service credit                                       |   | (12 | ) |   | (16 | ) |
| Net amount recognized                                      |   | $ | (159 | ) |   | $ | (154 | ) |
| Weighted-Average Plan Assumption at End of Year:           |   |   |   |   |
| Discount rate                                              |   | 4.50 | % |   | 5.10 | % |

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|                                                                                                    |
|----------------------------------------------------------------------------------------------------|
|                                                                                                    |  |  |  |  |  |  |  |  |  |  |  |  |
| (dollars in thousands)                                                                             |   | 2014 |   | 2013 |   | 2012 |
| Net Periodic Postretirement Benefit Cost                                                           |   |   |   |   |   |   |
| Service cost                                                                                       |   | $ | — |  |   | $ | — |  |   | $ | — |  |
| Interest cost                                                                                      |   | 55 |  |   | 57 |  |   | 63 |  |
| Amortization of prior service credit                                                               |   | (10 | ) |   | (4 | ) |   | (4 | ) |
| Amortization of net actuarial loss                                                                 |   | — |  |   | — |  |   | — |  |
| Net periodic postretirement benefit cost                                                           |   | $ | 45 |  |   | $ | 53 |  |   | $ | 59 |  |
| Other Changes in Plan Assets and Benefit Obligations                                               |   |   |   |   |   |   |
| Recognized in Other Comprehensive Income                                                           |   |   |   |   |   |   |
| Net actuarial gain                                                                                 |   | $ | (15 | ) |   | $ | (223 | ) |   | $ | (84 | ) |
| Amortization of prior service cost                                                                 |   | 10 |  |   | 4 |  |   | 4 |  |
| Total recognized in other comprehensive (income) loss                                              |   | (5 | ) |   | (219 | ) |   | (80 | ) |
| Total Recognized in Net Periodic Postretirement Benefit Cost and Other Comprehensive (Income) Loss |   | $ | 40 |  |   | $ | (166 | ) |   | $ | (21 | ) |

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|                                                                                                    |
|----------------------------------------------------------------------------------------------------|
|                                                                                                    |  |  |  |  |  |  |  |  |  |  |  |  |
| (dollars in thousands)                                                                             |   |   |   |   |   |   |
|                                                                                               |   | 2014 |   | 2013 |   |   |
| Condensed Balance Sheets                                                                           |   |   |   |   |   |   |
| Assets:                                                                                            |   |   |   |   |   |   |
| Cash                                                                                               |   | $ | 6,032 |  |   | $ | 637 |  |   |   |
| Investment in subsidiaries                                                                         |   | 322,615 |  |   | 143,683 |  |   |   |
| Other assets                                                                                       |   | 3,678 |  |   | 505 |  |   |   |
| Total Assets                                                                                       |   | $ | 332,325 |  |   | $ | 144,825 |  |   |   |
| Liabilities and shareholders’ equity:                                                        |   |   |   |   |   |   |
| Accrued liabilities                                                                                |   | $ | 8,707 |  |   | $ | 7,762 |  |   |   |
| Borrowed funds                                                                                     |   | 56,702 |  |   | 56,702 |  |   |   |
| Shareholders’ equity                                                                         |   | 266,916 |  |   | 80,361 |  |   |   |
| Total Shareholders’ Equity and Liabilities                                                   |   | $ | 332,325 |  |   | $ | 144,825 |  |   |   |
|                                                                                               |   |   |   |   |   |   |
|                                                                                               |   | 2014 |   | 2013 |   | 2012 |
| Condensed Statements of Operations                                                                 |   |   |   |   |   |   |
| Noninterest income                                                                                 |   | $ | 33 |  |   | $ | 31 |  |   | $ | 34 |  |
| Interest expense                                                                                   |   | (1,146 | ) |   | (1,092 | ) |   | (1,157 | ) |
| Noninterest expense                                                                                |   | (1,011 | ) |   | (742 | ) |   | (970 | ) |
| Loss before tax (benefit) expense                                                                  |   | (2,124 | ) |   | (1,803 | ) |   | (2,093 | ) |
| Income tax expense (benefit)                                                                       |   | (3,180 | ) |   | — |  |   | (311 | ) |
| Income (Loss) before equity in undistributed net loss of subsidiaries                              |   | 1,056 |  |   | (1,803 | ) |   | (1,782 | ) |
| Equity in undistributed net income (loss) of subsidiaries                                          |   | 149,402 |  |   | 320 |  |   | (38,223 | ) |
| Net income (loss)                                                                                  |   | $ | 150,458 |  |   | $ | (1,483 | ) |   | $ | (40,005 | ) |
|                                                                                               |   |   |   |   |   |   |
| Condensed Statements of Cash Flows                                                                 |   | 2014 |   | 2013 |   | 2012 |
| Cash flows from operating activities                                                               |   |   |   |   |   |   |
| Net Income (Loss)                                                                                  |   | $ | 150,458 |  |   | $ | (1,483 | ) |   | $ | (40,005 | ) |
| Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: |   |   |   |   |   |   |
| Equity in undistributed net income (loss) of subsidiaries                                          |   | (149,402 | ) |   | (320 | ) |   | 38,223 |  |
| Other, net                                                                                         |   | (2,095 | ) |   | 1,153 |  |   | 503 |  |
| Net cash used in operating activities                                                              |   | (1,039 | ) |   | (650 | ) |   | (1,279 | ) |
| Cash flows from investing activities                                                               |   |   |   |   |   |   |
| Downstream cash investment in subsidiary                                                           |   | (19,400 | ) |   | — |  |   | (6,709 | ) |
| Net cash used in investing activities                                                              |   | (19,400 | ) |   | — |  |   | (6,709 | ) |
| Cash flows from financing activities                                                               |   |   |   |   |   |   |
| Proceeds from issuance of common stock, net of costs                                               |   | 24,982 |  |   |  |  |   | 6,694 |  |
| Other                                                                                              |   | 852 |  |   | 681 |  |   | (908 | ) |
| Net cash provided by financing activities                                                          |   | 25,834 |  |   | 681 |  |   | 5,786 |  |
| Net increase (decrease) in cash                                                                    |   | 5,395 |  |   | 31 |  |   | (2,202 | ) |
| Cash at beginning of period                                                                        |   | 637 |  |   | 606 |  |   | 2,808 |  |
| Cash at end of period                                                                              |   | $ | 6,032 |  |   | $ | 637 |  |   | $ | 606 |  |

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|                                          |
|------------------------------------------|
|                                          |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                     |   |   |   |   |   | Minimum Regulatory Requirement to be Well Capitalized |
| (dollars in thousands)                   |   | Actual |   | For CapitalAdequacy Purposes |   | Under PromptCorrective ActionProvisions |   |
|                                     |   | Amount |   | Ratio |   | Amount |   | Ratio |   | Amount |   | Ratio |   |
| December 31, 2014                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total Capital (to Risk Weighted Assets)  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Consolidated                             |   | $ | 203,150 |  |   | 14.58 | % |   | $ | 110,982 |  |   |   |   | 8.00 | % |   | N/A |  |   |   |   |   |
| CommunityOne Bank, N.A.                  |   | 206,474 |  |   | 14.88 |  |   | 111,013 |  |   |   |   | 8.00 |  |   | $ | 138,767 |  |   |   | 10.00 | % |   |
| Tier 1 Capital (to Risk Weighted Assets) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Consolidated                             |   | 185,690 |  |   | 13.33 |  |   | 55,491 |  |   |   |   | N/A |  |   | N/A |  |   |   |   |   |
| CommunityOne Bank, N.A.                  |   | 189,081 |  |   | 13.63 |  |   | 55,507 |  |   |   |   | 4.00 |  |   | 83,260 |  |   |   | 6.00 |  |   |
| Tier 1 Capital (to Average Assets)       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Consolidated                             |   | 185,690 |  |   | 9.78 |  |   | $ | 75,937 |  |   |   |   | N/A |  |   | N/A |  |   |   |   |   |
| CommunityOne Bank, N.A.                  |   | 189,081 |  |   | 9.94 |  |   | 76,068 |  |   |   |   | 4.00 |  |   | 95,085 |  |   |   | 5.00 |  |   |
|                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| December 31, 2013                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total Capital (to Risk Weighted Assets)  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Consolidated                             |   | $ | 159,146 |  |   | 12.62 | % |   | $ | 100,859 |  |   |   |   | 8.00 | % |   | N/A |  |   |   |   |   |
| CommunityOne Bank, N.A.                  |   | 166,152 |  |   | 13.20 |  |   | 100,713 |  |   |   |   | 8.00 |  |   | 125,891 |  |   |   | 10.00 |  |   |
| Tier 1 Capital (to Risk Weighted Assets) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Consolidated                             |   | 119,499 |  |   | 9.48 |  |   | 50,429 |  |   |   |   | N/A |  |   | N/A |  |   |   |   |   |
| CommunityOne Bank, N.A.                  |   | 150,274 |  |   | 11.94 |  |   | 50,356 |  |   |   |   | 4.00 |  |   | 75,534 |  |   |   | 6.00 |  |   |
| Tier 1 Capital (to Average Assets)       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Consolidated                             |   | 119,499 |  |   | 5.96 |  |   | 80,220 |  |   |   |   | N/A |  |   | N/A |  |   |   |   |   |
| CommunityOne Bank, N.A.                  |   | 150,274 |  |   | 7.49 |  |   | 80,204 |  |   |   |   | 4.00 |  |   | 100,256 |  |   |   | 5.00 |  |   |

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|                                    |
|------------------------------------|
|                                    |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                               |   | For the Years Ended December 31, |
|                               |   | 2014 |   | 2013 |   | 2012 |
|                               |   | Shares |   | WeightedAverageExercisePrice |   | Shares |   | WeightedAverageExercisePrice |   | Shares |   | WeightedAverageExercisePrice |
| Outstanding at beginning of year   |   | 52,812 |  |   | $ | 30.75 |  |   | 1,125 |  |   | $ | 1,963.29 |  |   | 2,742 |  |   | $ | 1,821.79 |  |
| Granted                            |   | 255,227 |  |   | 15.20 |  |   | 54,060 |  |   | 7.86 |  |   | — |  |   | — |  |
| Exercised                          |   | — |  |   | — |  |   | — |  |   | — |  |   | — |  |   | — |  |
| Forfeited or expired               |   | (4,767 | ) |   | 242.98 |  |   | (2,373 | ) |   | 425.40 |  |   | (1,617 | ) |   | 1,723.34 |  |
| Outstanding at end of year         |   | 303,272 |  |   | 14.33 |  |   | 52,812 |  |   | 30.75 |  |   | 1,125 |  |   | 1,963.29 |  |
| Options exercisable at end of year |   | 12,712 |  |   | 15.02 |  |   | 666 |  |   | 1,823.23 |  |   | 1,125 |  |   | 1,963.29 |  |

|                          |
|--------------------------|
|                          |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                     |   | Options Outstanding |   | Options Exercisable |
| Range of Exercise Prices |   | Shares |   | WeightedAverageRemainingContractualLife (Years) |   | WeightedAverageExercisePrice |   | NumberExercisable |   | WeightedAverageRemainingContractualLife (Years) |   | WeightedAverageExercisePrice |
| $1.00 - $7.99            |   | 49,153 |  |   | 8.22 |   | $ | 7.86 |  |   | 12,657 |  |   | 8.22 |   | $ | 7.86 |  |
| $8.00 - $15.99           |   | 32,690 |  |   | 9.37 |   | 9.93 |  |   | — |  |   | 9.37 |   | — |  |
| $16.00 - $17.00          |   | 221,374 |  |   | 9.76 |   | 16.00 |  |   | — |  |   | 9.76 |   | — |  |
| $1,350.00 - $1,890.00    |   | 55 |  |   | 1.72 |   | 1,662.55 |  |   | 55 |  |   | 1.72 |   | 1,662.55 |  |

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|                                 |
|---------------------------------|
|                                 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                            |   | For the Years Ended December 31, |
|                            |   | 2014 |   | 2013 |
|                            |   | Shares |   | WeightedAverageGrant DateFair Value |   | Shares |   | WeightedAverageGrant DateFair Value |
| Non-vested at beginning of year |   | 268,361 |  |   | $ | 10.14 |  |   | 110,059 |  |   | $ | 11.13 |  |
| Granted                         |   | 223,503 |  |   | 7.60 |  |   | 158,302 |  |   | 9.45 |  |
| Vested                          |   | (31,516 | ) |   | 10.25 |  |   | — |  |   | — |  |
| Cancelled                       |   | (267,937 | ) |   | 9.38 |  |   | — |  |   | — |  |
| Forfeited or expired            |   | (5,278 | ) |   | 9.49 |  |   | — |  |   | — |  |
| Unvested at end of year         |   | 187,133 |  |   | $ | 8.19 |  |   | 268,361 |  |   | $ | 10.14 |  |

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|                                                |
|------------------------------------------------|
|                                                |  |  |  |  |  |  |  |  |
|                                           |   | Gain (Loss), Net of Tax Recognized in Accumulated Other Comprehensive Loss (Effective Portion) |
|                                           |   | As of |
| (dollars in thousands)                         |   | December 31, 2014 |   | December 31, 2013 |
| Derivatives designated as hedging instruments: |   |   |   |   |
| Interest rate swap contracts - FHLB advances   |   | $ | (324 | ) |   | $ | — |  |

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|                                                    |
|----------------------------------------------------|
|                                                    |  |  |  |  |  |  |  |  |  |  |  |  |
|                                               |   | Gain (Loss) Recognized |
|                                               |   | For Twelve Months Ended |
|                                               |   | December 31, 2014 |   | December 31, 2013 |   | December 31, 2012 |
| Derivatives not designated as hedging instruments: |   |   |   |   |   |   |
| Mortgage loan rate lock commitments                |   | $ | 2 |  |   | $ | 4 |  |   | 152 |  |
| Mortgage loan forward sales                        |   | 17 |  |   | (218 | ) |   | 52 |  |
| Total                                              |   | $ | 19 |  |   | $ | (214 | ) |   | $ | 204 |  |

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|                                                       |
|-------------------------------------------------------|
|                                                       |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (dollars in thousands)                                |   | Total |   | Level 1 |   | Level 2 |   | Level 3 |
| Assets:                                               |   |   |   |   |   |   |   |   |
| Available-for-sale debt securities:                   |   |   |   |   |   |   |   |   |
| U.S. government sponsored agencies                    |   | $ | 2,044 |  |   | $ | — |  |   | $ | 2,044 |  |   | $ | — |  |
| Residential mortgage-backed securities-GSE            |   | 290,145 |  |   | — |  |   | 290,145 |  |   | — |  |
| Residential mortgage-backed securities-Private        |   | 17,271 |  |   | — |  |   | 17,271 |  |   | — |  |
| Commercial mortgage-backed securities-GSE             |   | 21,957 |  |   |   |   | 21,957 |  |   |   |
| Commercial mortgage-backed securities-Private         |   | 10,215 |  |   | — |  |   | 10,215 |  |   | — |  |
| Corporate notes                                       |   | 8,407 |  |   | — |  |   | 8,407 |  |   | — |  |
| Total available-for-sale debt securities              |   | 350,039 |  |   | — |  |   | 350,039 |  |   | — |  |
| Mortgage servicing rights                             |   | 1,726 |  |   | — |  |   | — |  |   | 1,726 |  |
| Interest rate swaps                                   |   | (525 | ) |  | $ | — |  |  | (525 | ) |  | $ | — |  |
| Total assets at fair value from continuing operations |   | $ | 351,765 |  |   | $ | — |  |   | $ | 350,039 |  |   | $ | 1,726 |  |

|                                                       |
|-------------------------------------------------------|
|                                                       |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (dollars in thousands)                                |   | Total |   | Level 1 |   | Level 2 |   | Level 3 |
| Assets:                                               |   |   |   |   |   |   |   |   |
| Available-for-sale debt securities:                   |   |   |   |   |   |   |   |   |
| U.S. government sponsored agencies                    |   | $ | 2,077 |  |   | $ | — |  |   | $ | 2,077 |  |   | $ | — |  |
| Business Development Company investment               |   | 2,737 |  |   | 2,737 |  |   | — |  |   | — |  |
| Residential mortgage-backed securities-GSE            |   | 341,147 |  |   | — |  |   | 341,147 |  |   | — |  |
| Residential mortgage-backed securities-Private        |   | 20,752 |  |   | — |  |   | 20,752 |  |   | — |  |
| Commercial mortgage-backed securities-GSE             |   | 21,439 |  |   | — |  |   | 21,439 |  |   | — |  |
| Commercial mortgage-backed securities-Private         |   | 9,585 |  |   | — |  |   | 9,585 |  |   | — |  |
| Corporate notes                                       |   | 16,877 |  |   | — |  |   | 16,877 |  |   | — |  |
| Total available-for-sale debt securities              |   | 414,614 |  |   | 2,737 |  |   | 411,877 |  |   | — |  |
| Mortgage servicing rights                             |   | 1,552 |  |   | — |  |   | — |  |   | 1,552 |  |
| Total assets at fair value from continuing operations |   | $ | 416,166 |  |   | $ | 2,737 |  |   | $ | 411,877 |  |   | $ | 1,552 |  |

|                                                       |
|-------------------------------------------------------|
|                                                       |  |  |  |  |  |  |  |  |
|                                                  |   | Fair Value Measurements Using Significant |
|                                                  |   | Unobservable Inputs (Level 3) |
|                                                  |   | Mortgage Servicing Rights |
| (dollars in thousands)                                |   | Twelve Months Ended December 31, |
|                                                  |   | 2014 |   | 2013 |
| Beginning balance at January 1,                       |   | $ | 1,552 |  |   | $ | 726 |  |
| Total gains or losses (realized/unrealized):          |   |   |   |   |
| Included in earnings, gross                           |   | 644 |  |   | 1,131 |  |
|       Less amortization |   | (470 | ) |   | (305 | ) |
| Balance, end of period                                |   | $ | 1,726 |  |   | $ | 1,552 |  |

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|                                                       |
|-------------------------------------------------------|
|                                                       |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (dollars in thousands)                                |   | Total |   | Level 1 |   | Level 2 |   | Level 3 |
| Impaired loans, net                                   |   | $ | 7,433 |  |   | $ | — |  |   | $ | — |  |   | $ | 7,433 |  |
| Other real estate owned                               |   | 15,579 |  |   | — |  |   | — |  |   | 15,579 |  |
| Total assets at fair value from continuing operations |   | $ | 23,012 |  |   | $ | — |  |   | $ | — |  |   | $ | 23,012 |  |

|                                                       |
|-------------------------------------------------------|
|                                                       |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (dollars in thousands)                                |   | Total |   | Level 1 |   | Level 2 |   | Level 3 |
| Impaired loans, net                                   |   | $ | 2,038 |  |   | $ | — |  |   | $ | — |  |   | $ | 2,038 |  |
| Other real estate owned                               |   | 18,263 |  |   | — |  |   | — |  |   | 18,263 |  |
| Total assets at fair value from continuing operations |   | $ | 20,301 |  |   | $ | — |  |   | $ | — |  |   | $ | 20,301 |  |

|                           |
|---------------------------|
|                           |  |  |  |  |  |  |  |  |  |  |
| (dollars in thousands)    |   | Fair Value at December 31, 2014 |   | Valuation Techniques |   | UnobservableInput |   | Range |
|                           |   |   |   |   |   |   |   |   |
| Impaired loans, net       |   | $ | 7,433 |  |   | Discounted appraisals |   | Collateral discounts |   | 1.00% - 30.00% |
| Other real estate owned   |   | 15,579 |  |   | Discounted appraisals |   | Collateral discounts |   | 1.00% - 30.00% |
| Mortgage servicing rights |   | 1,726 |  |   | Discounted cash flows |   | Prepayment rate |   | 10.00% - 25.00% |
| Mortgage servicing rights |   |   |   |   |   | Discount rate |   | 6.00% - 10.00% |

|                           |
|---------------------------|
|                           |  |  |  |  |  |  |  |  |  |  |
| (dollars in thousands)    |   | Fair Value atDecember 31, 2013 |   | Valuation Techniques |   | UnobservableInput |   | Range |
|                      |   |   |   |   |   |   |   |   |
| Impaired loans, net       |   | $ | 2,038 |  |   | Discounted appraisals |   | Collateral discounts |   | 1.00%-30.00% |
| Other real estate owned   |   | 18,263 |  |   | Discounted appraisals |   | Collateral discounts |   | 1.00%-30.00% |
| Mortgage servicing rights |   | 1,552 |  |   | Discounted cash flows |   | Prepayment rate |   | 10.00% - 25.00% |
| Mortgage servicing rights |   |   |   |   |   | Discount rate |   | 6.00% - 10.00% |

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|                                                 |
|-------------------------------------------------|
|                                                 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                            |   | At December 31, 2014 |
| (dollars in thousands)                          |   | Carrying Value |   | Estimated Fair Value |   | Level 1 |   | Level 2 |   | Level 3 |
| Financial Assets of Continuing Operations:      |   |   |   |   |   |   |   |   |   |   |
| Cash and cash equivalents                       |   | $ | 95,882 |  |   | $ | 95,882 |  |   | $ | 95,882 |  |   | $ | — |  |   | $ | — |  |
| Investment securities:  Available-for-sale      |   | 350,040 |  |   | 350,040 |  |   | — |  |   | 350,040 |  |   | — |  |
| Investment securities:  Held-to-maturity        |   | 142,461 |  |   | 140,875 |  |   | — |  |   | 140,875 |  |   | — |  |
| Loans held for sale                             |   | 2,796 |  |   | 2,796 |  |   | — |  |   | 2,796 |  |   | — |  |
| Loans, net                                      |   | 1,337,443 |  |   | 1,328,895 |  |   | — |  |   | — |  |   | 1,328,895 |  |
| Accrued interest receivable                     |   | 4,885 |  |   | 4,885 |  |   | — |  |   | 1,262 |  |   | 3,623 |  |
| Interest rate swaps                             |   | (525 | ) |   | (525 | ) |   | — |  |   | (525 | ) |   | — |  |
| Financial Liabilities of Continuing Operations: |   |   |   |   |   |   |   |   |   |   |
| Deposits                                        |   | 1,794,420 |  |   | 1,793,205 |  |   | — |  |   | 1,793,205 |  |   | — |  |
| Retail repurchase agreements                    |   | 9,076 |  |   | 9,076 |  |   | — |  |   | 9,076 |  |   | — |  |
| Federal Home Loan Bank advances                 |   | 68,234 |  |   | 71,462 |  |   | — |  |   | 71,462 |  |   | — |  |
| Long-term notes payable                         |   | 5,338 |  |   | 5,338 |  |   | — |  |   | — |  |   | 5,338 |  |
| Junior subordinated debentures                  |   | 56,702 |  |   | 32,341 |  |   | — |  |   | — |  |   | 32,341 |  |
| Accrued interest payable                        |   | 3,624 |  |   | 3,624 |  |   | — |  |   | 321 |  |   | 3,303 |  |

|                                                 |
|-------------------------------------------------|
|                                                 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                            |   | At December 31, 2013 |
| (dollars in thousands)                          |   | Carrying Value |   | Estimated Fair Value |   | Level 1 |   | Level 2 |   | Level 3 |
| Financial Assets of Continuing Operations:      |   |   |   |   |   |   |   |   |   |   |
| Cash and cash equivalents                       |   | $ | 67,430 |  |   | $ | 67,430 |  |   | $ | 67,430 |  |   | $ | — |  |   | $ | — |  |
| Investment securities:  Available-for-sale      |   | 414,614 |  |   | 414,614 |  |   | 2,737 |  |   | 411,877 |  |   | — |  |
| Investment securities:  Held-to-maturity        |   | 151,795 |  |   | 141,125 |  |   | — |  |   | 141,125 |  |   | — |  |
| Loans held for sale                             |   | 1,836 |  |   | 1,836 |  |   | — |  |   | 1,836 |  |   | — |  |
| Loans, net                                      |   | 1,185,463 |  |   | 1,129,826 |  |   | — |  |   | — |  |   | 1,129,826 |  |
| Accrued interest receivable                     |   | 6,283 |  |   | 6,283 |  |   | — |  |   | 1,583 |  |   | 4,700 |  |
| Financial Liabilities of Continuing Operations: |   |   |   |   |   |   |   |   |   |   |
| Deposits                                        |   | 1,748,705 |  |   | 1,748,685 |  |   | — |  |   | 1,748,685 |  |   | — |  |
| Retail repurchase agreements                    |   | 6,917 |  |   | 6,917 |  |   | — |  |   | 6,917 |  |   | — |  |
| Federal Home Loan Bank advances                 |   | 73,283 |  |   | 75,663 |  |   | — |  |   | 75,663 |  |   | — |  |
| Long-term notes payable                         |   | 5,263 |  |   | 5,263 |  |   | — |  |   | — |  |   | 5,263 |  |
| Junior subordinated debentures                  |   | 56,702 |  |   | 22,316 |  |   | — |  |   | — |  |   | 22,316 |  |
| Accrued interest payable                        |   | 2,624 |  |   | 2,624 |  |   | — |  |   | 389 |  |   | 2,235 |  |

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Table of Contents

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|              |
|--------------|
|              |  |
| Item 9. | CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE |

|               |
|---------------|
|               |  |
| Item 9A. | CONTROLS AND PROCEDURES |

|               |
|---------------|
|               |  |
| Item 9B. | OTHER INFORMATION |

----

|               |
|---------------|
|               |  |
| Item 10. | DIRECTORS, EXECUTIVE OFFICERS, AND CORPORATE GOVERNANCE |

|               |
|---------------|
|               |  |
| Item 11. | EXECUTIVE COMPENSATION |

|               |
|---------------|
|               |  |
| Item 12. | SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED SHAREHOLDER MATTERS |

|               |
|---------------|
|               |  |
| Item 13. | CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS AND DIRECTOR INDEPENDENCE |

|               |
|---------------|
|               |  |
| Item 14. | PRINCIPAL ACCOUNTANT FEES AND SERVICES |

|               |
|---------------|
|               |  |
| Item 15. | EXHIBITS AND FINANCIAL STATEMENT SCHEDULES |

|                                                                                                                       |
|-----------------------------------------------------------------------------------------------------------------------|
|                                                                                                                       |  |
| Financial Statements                                                                                                  | Form10-KPage |
|                                                                                                                  |   |
| Quarterly Financial Information                                                                                       | 56 |
|                                                                                                                  |   |
| Reports of Independent Registered Public Accounting Firm                                                              | 57 |
|                                                                                                                  |   |
| Consolidated Balance Sheets as of December 31, 2014 and 2013                                                     | 59 |
|                                                                                                                  |   |
| Consolidated Statements of Operations for the Years Ended December 31, 2014, 2013 and 2012                       | 60 |
|                                                                                                                  |   |
| Consolidated Statements of Comprehensive Income (Loss) for the Years Ended December 31, 2014, 2013 and 2012 | 61 |
|                                                                                                                  |   |
| Consolidated Statements of Shareholders’ Equity for the Years Ended December 31, 2014, 2013 and 2012       | 62 |
|                                                                                                                  |   |
| Consolidated Statements of Cash Flows for the Years Ended December 31, 2014, 2013 and 2012                       | 63 |
|                                                                                                                  |   |
| Notes to Consolidated Financial Statements                                                                            | 65 |

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|            |
|------------|
|            |  |  |
| ExhibitNo. |    | Description of Exhibit |
|       |   |
| 2.01       |    | Agreement and Plan of Merger, dated April 26, 2011, by and among FNB United Corp., Gamma Merger Corporation and Bank of Granite Corporation, incorporated herein by reference to Exhibit 2.1 to the Registrant’s Current Report on Form 8-K filed April 27, 2011 (the schedules and exhibits have been omitted pursuant to Item 601(b)(2) of Regulation S-K. A copy of any omitted schedule or exhibit will be furnished supplementally to the Securities and Exchange Commission upon request). |
|       |   |
| 2.02       |    | Amendment No. 1, dated as of June 16, 2011, to the Agreement and Plan of Merger, dated April 26, 2011, by and among FNB United Corp., Gamma Merger Corporation and Bank of Granite Corporation, incorporated herein by reference to Exhibit 2.1 to the Registrant’s Current Report on Form 8-K filed June 16, 2011. |
|       |   |
| 2.03       |    | Amendment No. 2, dated as of August 15, 2011, to the Agreement and Plan of Merger, dated April 26, 2011, by and among FNB United Corp., Gamma Merger Corporation and Bank of Granite Corporation, incorporated herein by reference to Exhibit 2.1 to the Registrant’s Quarterly Report on Form 10-Q filed November 10, 2011. |
|       |   |
| 3.01       |    | Articles of Incorporation of the Registrant, incorporated herein by reference to Exhibit 3.1 to the Registrant’s Form S-14 Registration Statement (File No. 2-96498) filed March 16, 1985. |
|       |   |
| 3.02       |    | Articles of Amendment to Articles of Incorporation of the Registrant, adopted May 10, 1988, incorporated herein by reference to Exhibit 19.10 to the Registrant’s Quarterly Report on Form 10-Q for the quarter ended June 30, 1988. |
|       |   |
| 3.03       |    | Articles of Amendment to Articles of Incorporation of the Registrant, adopted May 12, 1998, incorporated herein by reference to Exhibit 3.12 to the Registrant’s Quarterly Report on Form 10-Q for the quarter ended June 30, 1998. |
|       |   |
| 3.04       |    | Articles of Amendment to Articles of Incorporation of the Registrant, adopted May 23, 2003, incorporated herein by reference to Exhibit 3.13 to the Registrant’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2003. |
|       |   |
| 3.05       |    | Articles of Amendment to Articles of Incorporation of the Registrant, adopted March 15, 2006, incorporated herein by reference to Exhibit 3.14 to the Registrant’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2006. |
|       |   |
| 3.06       |    | Articles of Merger, setting forth amendment to Articles of Incorporation of the Registrant, effective April 28, 2006, incorporated herein by reference to Exhibit 3.15 to the Registrant’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2006. |
|       |   |
| 3.07       |    | Articles of Amendment to Articles of Incorporation of the Registrant, adopted January 23, 2009, incorporated herein by reference to Exhibit 3.1 to the Registrant’s Current Report on Form 8-K filed January 23, 2009. |
|       |   |
| 3.08       |    | Articles of Amendment to Articles of Incorporation of the Registrant, adopted February 11, 2009, incorporated herein by reference to Exhibit 3.1 to the Registrant’s Current Report on Form 8-K filed February 13, 2009. |
|       |   |
| 3.09       |    | Articles of Amendment to the Articles of Incorporation of the Registrant, establishing the Junior Participating Preferred Stock, Series B, incorporated herein by reference to Exhibit 3.1 to the Registrant’s Current Report on Form 8-K filed April 21, 2011. |
|       |   |
| 3.10       |    | Articles of Amendment to the Articles of Incorporation of the Registrant, adopted October 19, 2011, incorporated herein by reference to Exhibit 3.1 to the Registrant’s Current Report on Form 8-K filed October 25, 2011. |
|       |   |
| 3.11       |    | Articles of Amendment to the Articles of Incorporation of the Registrant, adopted October 31, 2011, incorporated herein by reference to Exhibit 3.2 to the Registrant’s Quarterly Report on Form 10-Q filed November 10, 2011. |

----

|        |
|--------|
|        |  |  |
| 3.12   |   | Articles of Amendment to the Articles of Incorporation of the Registrant, adopted June 20, 2013, incorporated herein by reference to Exhibit 3.1 to the Registrant’s Quarterly Report on Form 10-Q filed August 5, 2013. |
|   |   |   |
| 3.13   |    | Amended and Restated Bylaws of the Registrant, approved by the shareholders of the Registrant on June 20, 2013. |
|   |   |
| 4.01   |    | Specimen of Registrant’s Common Stock Certificate, incorporated herein by reference to Exhibit 4.1 to the Registrant’s Quarterly Report on Form 10-Q filed August 5, 2013 |
|   |   |
|   |   |
| 4.02   |    | Form of Right Certificate, incorporated herein by reference to Exhibit B of Exhibit 4.1 to the Registrant’s Current Report on Form 8-K filed April 21, 2011. |
|   |   |
| 4.03   |    | Indenture dated as of November 4, 2005, between FNB Corp. and U.S. Bank, National Association, as trustee, incorporated herein by reference to Exhibit 4.1 to the Registrant’s Current Report on Form 8-K filed November 8, 2005. |
|   |   |
| 4.04   |    | Amended and Restated Declaration of Trust of FNB United Statutory Trust I dated as of November 4, 2005, among FNB Corp., as sponsor, U.S. Bank, National Association, as institutional trustee, and Michael C. Miller and Jerry A. Little, as administrators, incorporated herein by reference to Exhibit 4.2 to the Registrant’s Current Report on Form 8-K filed November 8, 2005. |
|   |   |
| 4.05   |    | Amended and Restated Declaration of Trust of FNB United Statutory Trust I dated as of November 4, 2005, among FNB Corp., as sponsor, U.S. Bank, National Association, as institutional trustee, and Michael C. Miller and Jerry A. Little, as administrators, incorporated herein by reference to Exhibit 4.2 to the Registrant’s Current Report on Form 8-K filed November 8, 2005. |
|   |   |
| 4.06   |    | Amended and Restated Trust Agreement of FNB United Statutory Trust II dated as of April 27, 2006, among FNB Corp., as sponsor, Wilmington Trust Company, as institutional trustee, and Michael C. Miller and Jerry A. Little, as administrators, incorporated herein by reference to Exhibit 4.2 to the Registrant’s Current Report on Form 8-K filed April 28, 2006. |
|   |   |
| 4.07   |    | Warrant to purchase up to 2,207,143 shares of common stock issued to the United States Department of the Treasury, incorporated herein by reference to Exhibit 4.2 to the Registrant’s Current Report on Form 8-K filed February 13, 2009. |
|   |   |
| 4.08   |    | Amended Warrant to purchase up to 2,207,143 shares of common stock of the Registrant issued to the United States Department of the Treasury, incorporated herein by reference to Exhibit 4.1 to the Registrant’s Quarterly Report on Form 10-Q filed November 10, 2011. |
|   |   |
|   |   |
| 10.01* |    | FNB United Corp. 2003 Stock Incentive Plan, as amended and restated as of December 31, 2008, incorporated herein by reference to Exhibit 10.23 to the Registrant’s Form 10-K Annual Report for the fiscal year ended December 31, 2008. |
|   |   |
| 10.02* |    | Form of Incentive Stock Option Agreement between FNB Corp. and certain of its key employees, pursuant to the Registrant’s 2003 Stock Incentive Plan, incorporated herein by reference to Exhibit 10.24 to the Registrant’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2003. |
|   |   |
| 10.03* |    | Form of Nonqualified Stock Option Agreement between FNB Corp. and certain of its directors, pursuant to the Registrant’s 2003 Stock Incentive Plan, incorporated herein by reference to Exhibit 10.25 to the Registrant’s Form 10-K Annual Report for the fiscal year ended December 31, 2003. |

----

|        |
|--------|
|        |  |  |
| 10.04* |    | Form of Restricted Stock Agreement between FNB United Corp. and certain of its key employees and non-employee directors, pursuant to the Registrant’s 2003 Stock Incentive Plan, incorporated herein by reference to Exhibit 10.26 to the Registrant’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2006. |
|   |   |
| 10.05* |    | Carolina Fincorp, Inc. Stock Option Plan (assumed by the Registrant on April 10, 2000), incorporated herein by reference to Exhibit 99.1 to the Registrant’s Form S-8 Registration Statement (File No. 333-54702) filed January 31, 2001. |
|   |   |
| 10.06* |    | Form of Letter Agreement between FNB United Corp. and senior executive officers incorporated herein by reference to Exhibit 10.1 to the Registrant’s Current Report on Form 8-K filed December 1, 2009. |
|   |   |
| 10.07  |    | Guarantee Agreement dated as of November 4, 2005, by FNB Corp. for the benefit of the holders of trust preferred securities, incorporated herein by reference to Exhibit 10.1 to the Registrant’s Current Report on Form 8-K filed November 5, 2005. |
|   |   |
| 10.08  |    | Guarantee Agreement dated as of April 27, 2006 between FNB Corp. and Wilmington Trust Company, as guarantee trustee, for the benefit of the holders of trust preferred securities, incorporated herein by reference to Exhibit 10.1 to the Registrant’s Current Report on Form 8-K filed April 28, 2006. |
|   |   |
| 10.09  |    | Letter Agreement between the Registrant and the United States Department of the Treasury, dated February 13, 2009, incorporated herein by reference to Exhibit 10.1 to the Registrant’s Current Report on Form 8-K filed February 13, 2009. |
|   |   |
| 10.10  |    | Investment Agreement, dated April 26, 2011, by and between FNB United Corp. and Carlyle Financial Services Harbor, L.P., incorporated herein by reference to Exhibit 10.1 to the Registrant’s Current Report on Form 8-K filed April 27, 2011. |
|   |   |   |
| 10.11  |    | Amendment No. 1 to Investment Agreement, dated as of June 16, 2011, by and between FNB United Corp. and Carlyle Financial Services Harbor, L.P., incorporated herein by reference to Exhibit 10.2 to the Registrant’s Current Report on Form 8-K filed June 16, 2011. |
|   |   |
| 10.12  |    | Amendment No. 2 to Investment Agreement, dated as of August 4, 2011, by and between FNB United Corp. and Carlyle Financial Services Harbor, L.P., incorporated herein by reference to Exhibit 10.2 to the Registrant’s Current Report on Form 8-K filed August 5, 2011. |
|   |   |
| 10.13  |    | Amendment No. 3 dated October 20, 2011 to Investment Agreement by and between FNB United Corp. and Carlyle Financial Services Harbor, L.P., incorporated herein by reference to Exhibit 10.1 to the Registrant’s Quarterly Report on Form 10-Q filed November 10, 2011. |
|   |   |
| 10.14  |    | Investment Agreement, dated April 26, 2011, by and between FNB United Corp. and Oak Hill Capital Partners III, L.P. and Oak Hill Capital Management Partners III, L.P., incorporated herein by reference to Exhibit 10.2 to the Registrant’s Current Report on Form 8-K filed April 27, 2011. |
|   |   |   |
| 10.15  |    | Amendment No. 1 to Investment Agreement, dated as of June 16, 2011, by and between FNB United Corp. and Oak Hill Capital Partners III, L.P. and Oak Hill Capital Management Partners III, L.P., incorporated herein by reference to Exhibit 10.3 to the Registrant’s Current Report on Form 8-K filed June 16, 2011. |
|   |   |
| 10.16  |    | Amendment No. 2 to Investment Agreement, dated as of August 4, 2011, by and between FNB United Corp. and Oak Hill Capital Partners III, L.P. and Oak Hill Capital Management Partners III, L.P., incorporated herein by reference to Exhibit 10.2 to the Registrant’s Current Report on Form 8-K filed August 5, 2011. |
|   |   |
| 10.17  |    | Amendment No. 3 dated October 20, 2011 to Investment Agreement by and between FNB United Corp., Oak Hill Capital Partners III, L.P. and Oak Hill Capital Management Partners III., L.P., incorporated herein by reference to Exhibit 10.2 to the Registrant’s Quarterly Report on Form 10-Q filed November 10, 2011. |
|   |   |   |
| 10.18  |   | Form of Amended and Restated Subscription Agreement by and between FNB United Corp. and private placement investors, incorporated herein by reference to Exhibit 10.1 to the Registrant’s Current Report on Form 8-K filed August 5, 2011. |
|   |   |   |
| 10.19  |   | Form of Subscription Agreement (Directors and Officers) by and between FNB United Corp. and private placement investors, incorporated herein by reference to Exhibit 10.36 to the Registrant’s Form S-4 Registration Statement (File No. 333-176357) filed August 17, 2011. |

----

|        |
|--------|
|        |  |  |
|   |   |
| 10.20  |   | Form of Subscription Agreement, dated December 29, 2014, by and between CommunityOne Bancorp and private placement investors, incorporated herein by reference to Exhibit 10.1 to the Registrant’s Current Report on Form 8-K filed December 30, 2014. |
|   |   |   |
| 10.21  |    | Tax Benefits Preservation Plan, dated as of April 15, 2011, between FNB United Corp. and Registrar and & Transfer Company, incorporated herein by reference to Exhibit 4.1 to the Registrant’s Current Report on Form 8-K filed April 21, 2011. |
|   |   |
| 10.22  |    | Amendment to Tax Benefits Preservation Plan, dated as of April 27, 2011, between FNB United Corp. and Registrar and Transfer Company, incorporated herein by reference to Exhibit 4.1 to the Registrant’s Current Report on Form 8-K filed April 27, 2011. |
|   |   |
| 10.23  |   | Amendment to Tax Benefits Preservation Plan, dated as of November 7, 2014, between CommunityOne Bancorp and Register and Transfer Company, incorporated herein by reference to Exhibit 4.1 to the Registrant’s Current Report on Form 8-K filed November 12, 2014. |
|   |   |   |
| 10.24  |    | Exchange Agreement, dated as of August 15, 2011, by and between FNB United Corp. and The United States Department of the Treasury, incorporated herein by reference to Exhibit 10.1 to the Registrant’s Current Report on Form 8-K filed August 18, 2011. |
|   |   |
| 10.25* |    | Employment Agreement by and among FNB United Corp., CommunityOne Bank, National Association and Brian E. Simpson, dated as of October 21, 2011, incorporated herein by reference to Exhibit 10.1 to the Registrant’s Current Report on Form 8-K filed October 25, 2011. |
|   |   |   |
| 10.26* |    | Employment Agreement by and among FNB United Corp., CommunityOne Bank, National Association and Robert L. Reid, dated as of October 21, 2011, incorporated herein by reference to Exhibit 10.2 to the Registrant’s Current Report on Form 8-K filed October 25, 2011. |
|   |   |
| 10.27* |    | Employment Agreement by and among FNB United Corp., CommunityOne Bank, National Association and David L. Nielsen, dated as of October 21, 2011, incorporated herein by reference to Exhibit 10.3 to the Registrant’s Current Report on Form 8-K filed October 25, 2011. |
|   |   |
| 10.28* |   | Separation Agreement by and among CommunityOne Bancorp, CommunityOne Bank, National Association and Brian E. Simpson, dated as of September 11, 2014, incorporated herein by reference to Exhibit 10.1 to the Registrant’s Current Report on Form 8-K filed September 12, 2014. |
|   |   |   |
| 10.29* |   | Consulting Agreement by and among CommunityOne Bancorp, CommunityOne Bank, National Association and Brian E. Simpson, dated as of September 11, 2014, incorporated herein by reference to Exhibit 10.2 to the Registrant’s Current Report on Form 8-K filed September 12, 2014. |
|   |   |   |
| 10.30* |   | Employment Agreement by and among CommunityOne Bancorp, CommunityOne Bank, National Association and Robert L. Reid, dated as of October 1, 2014, incorporated herein by reference to Exhibit 10.1 to the Registrant’s Current Report on Form 8-K, filed October 6, 2014. |
|   |   |   |
| 10.31* |   | Employment Agreement by and among CommunityOne Bancorp, CommunityOne Bank, National Association and certain Named Executive Officers, dated as of October 1, 2014, incorporated herein by reference to Exhibit 10.2 to the Registrant’s Current Report on Form 8-K, filed October 6, 2014. |
|   |   |   |
| 10.32* |    | FNB United Corp. Amended and Restated 2012 Incentive Plan, incorporated herein by reference to Appendix B of Registrant's Proxy Statement on Schedule 14A Information filed April 24, 2013. |
|   |   |
| 10.33* |   | Form of Restricted Stock Agreement between FNB United Corp and certain executive officers, pursuant to the Registrant's 2012 Incentive Plan, incorporated herein by reference to Exhibit 10.34 to the Registrant’s Form 10-K Annual Report for the fiscal year ended December 31, 2012. |
|   |   |   |
| 10.34* |   | Form of Stock Incentive Award Agreement between CommunityOne Bancorp and certain officers, pursuant to the Registrant’s Amended and Restated 2012 Incentive Plan. |
|   |   |   |
| 10.35* |   | Form of Restricted Stock Agreement between CommunityOne Bancorp and certain officers, pursuant to the Registrant’s Amended and Restated 2012 Incentive Plan. |
|   |   |   |
| 10.36* |   | Form of Restricted Stock Agreement between CommunityOne Bancorp and the non-executive directors, pursuant to the Registrant’s Amended and Restated 2012 Incentive Plan. |
|   |   |   |
| 10.37* |   | Form of Restricted Stock Agreement between CommunityOne Bancorp and certain Named Executive Officers, pursuant to the Registrant’s 2012 Incentive Plan, incorporated herein by reference to Exhibit 10.3 to the Registrant’s Current Report on Form 8-K, filed October 6, 2014. |
|   |   |   |
| 10.38* |   | Form of Stock Option Agreement between CommunityOne Bancorp and certain Named Executive Officers, pursuant to the Registrant’s 2012 Incentive Plan, incorporated  herein by reference to Exhibit 10.4 to the Registrant’s Current Report on Form 8-K, filed October 6, 2014. |

----

|        |
|--------|
|        |  |  |
| 21.01  |   | Subsidiaries of the Registrant. |
|   |   |
| 23.01  |    | Consent of Independent Registered Public Accounting Firm – Dixon Hughes Goodman LLP |
|   |   |
| 31.01  |    | Certification of Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
|   |   |
| 31.02  |    | Certification of Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
|   |   |
| 32.01  |    | Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
|   |   |
| 99.01  |    | Certification of Principal Executive Officer Pursuant to Section 111 of the Emergency Economic Stabilization Act of 2008, as amended. |
|   |   |
| 99.02  |    | Certification of Principal Financial Officer Pursuant to Section 111 of the Emergency Economic Stabilization Act of 2008, as amended. |

|   |
|---|
|   |  |
| * | Management contract, or compensatory plan or arrangement. |

----

Table of Contents

|        |
|--------|
|        |  |  |
|   |   |   |
|   |   | CommunityOne Bancorp |
|   |   | (Registrant) |
|   |   |
| By:    |   | /s/ ROBERT L. REID |
|   |   | Robert L. Reid |
|   |   | President and Chief Executive Officer |

|                               |
|-------------------------------|
|                               |  |  |  |  |
| Signature                     |   |   |   | Title |
|                          |   |   |
| /s/ ROBERT L. REID       |   |   |   | President, Chief Executive Officer and Director |
| Robert L. Reid                |   |   |   | (Principal Executive Officer) |
|                          |   |   |
| /s/ DAVID L. NIELSEN     |   |   |   | Executive Vice President |
| David L. Nielsen              |   |   |   | (Principal Financial and Accounting Officer) |
|                          |   |   |
| /s/ SCOTT B. KAUFFMAN    |   |   |   | Director |
| Scott B. Kauffman             |   |   |   |   |
|                          |   |   |
| /s/ JERRY R. LICARI      |   |   |   | Director |
| Jerry R. Licari               |   |   |   |   |
|                          |   |   |
| /s/ J. CHANDLER MARTIN   |   |   |   | Director |
| J. Chandler Martin            |   |   |   |   |
|                          |   |   |
| /s/ T. GRAY MCCASKILL    |   |   |   | Director |
| T. Gray McCaskill             |   |   |   |   |
|                          |   |   |
| /s/ H. RAY MCKENNEY, JR. |   |   |   | Director |
| H. Ray McKenney, Jr.          |   |   |   |   |
|                          |   |   |
| /s/ JOHN C. REDETT       |   |   |   | Director |
| John C. Redett                |   |   |   |   |
|                          |   |   |
| /s/ BOYD C. WILSON, JR.  |   |   |   | Director |
| Boyd C. Wilson, Jr.           |   |   |   |   |