Columbia Laboratories (COB) Quote

Baddabaaaaaa

COB is also on my watch list---but its Cobalt on the ASX Exchange

see its not trading--must be a US Stock

Boooom!!!

Isn't COB supposed to be a part of CBF by now?

Capital Bank and CommunityOne Bancorp Announce Definitive Merger Agreement (11/23/15)

CHARLOTTE, N.C., Nov. 23, 2015 (GLOBE NEWSWIRE) -- Capital Bank Financial Corp. (Nasdaq:CBF) and CommunityOne Bancorp (Nasdaq:COB) today jointly announced the execution of a definitive merger agreement, pursuant to which Capital Bank will acquire CommunityOne. The combination will strengthen Capital Bank's franchise in North Carolina, particularly in Charlotte, as well as in Greensboro/Winston Salem and the Catawba/Caldwell county area.

Under the terms of the agreement, Capital Bank will acquire CommunityOne by merger, with Capital Bank being the surviving corporation. In the merger, CommunityOne shareholders shall have the right to receive, at the election of each holder and subject to proration, $14.25 per share in cash or 0.43 of a share of Capital Bank Class A common stock, with the total consideration to consist of 85% stock and 15% cash. Based on Capital Bank's closing price of $33.59 as of Friday, November 20, 2015, the merger consideration is valued at approximately $350 million. Capital Bank intends to appoint Bob Reid and Scott B. Kauffman who are current CommunityOne board members to the Capital Bank board of directors upon the completion of the transaction.

The transaction price is a multiple of 1.3x CommunityOne's tangible book value as of September 30, 2015. Capital Bank estimates single-digit EPS accretion in 2016 excluding merger charges and double digit accretion in 2017 and thereafter, which implies an estimated earn-back period of approximately 2.3 years.

The transaction has been unanimously approved by the Board of Directors of each company and is subject to Capital Bank and CommunityOne shareholder and regulatory approvals and other customary closing conditions and is expected to close in first quarter 2016.

Capital Bank's Chairman and CEO, Gene Taylor, commented, "This combination creates a high-powered Carolinas franchise while meeting the financial expectations of our shareholders. CommunityOne brings us skilled employees, a complementary branch network, and high-quality loan and deposit relationships, and the transaction improves Capital Bank's returns. We applaud the excellent work of CommunityOne's leadership in turning around one of the Carolina's oldest franchises, and we welcome CommunityOne employees to the Capital Bank team."

CommunityOne's President and CEO Bob Reid added, "We are proud of what we have accomplished at CommunityOne, returning a historic 100 year franchise to profitability and service to its communities and customers. The hard work of our employees over the past four years has put us in position to partner with one of the most exciting growth stories among southeast regional banks. By joining up with Capital Bank, we'll be able to do even more for our customers and communities."

Capital Bank CFO, Chris Marshall commented "CommunityOne represents a great opportunity to expand into another highly attractive Southeast market with enormous growth potential. The acquisition is priced right, and demonstrates our disciplined approach toward capital deployment and consistently improving shareholder returns."

Evercore served as financial advisor to Capital Bank in this transaction and Wachtell, Lipton, Rosen & Katz served as legal counsel. Sandler O'Neill + Partners LP and UBS Securities, LLC served as financial advisor to CommunityOne, and Arnold & Porter LLP served as legal counsel.

Conference Call

The Company will host a conference call today at 10:00 a.m. Eastern Time. The number to call for this interactive teleconference is (719) 325-2454, and the confirmation pass code is 7499380. Please dial in 10 minutes prior to the beginning of the call. A telephonic replay of the conference call will be available through December 2, 2015, by dialing (719) 457-0820 and entering pass code 7499380. The live broadcast of the conference call together with an investor presentation will be available online at the Company's web site at www.capitalbank-us.com, by following the link to Investor Relations. An on-line replay of the call will be available at the same site for 90 days.

About Capital Bank Financial Corp.

Capital Bank Financial Corp. is a bank holding company, formed in 2009 to create a premier regional banking franchise in the southeastern United States. CBF is the parent of Capital Bank Corp., a State of North Carolina chartered financial institution with $7.3 billion in total assets as of September 30, 2015, and 153 full-service banking offices throughout Florida, North and South Carolina, Tennessee and Virginia. To learn more about Capital Bank Corp., please visit www.capitalbank-us.com.

About CommunityOne Bancorp

CommunityOne Bancorp is the Charlotte, North Carolina-based bank holding company for CommunityOne Bank, N.A. Founded in 1907 as First National Bank of Asheboro, CommunityOne has grown into a $2.4 billion community bank, operating 45 full service banking branches throughout central, southern and western North Carolina, and loan production offices in Raleigh and Winston-Salem, North Carolina and Charleston, South Carolina. To learn more about CommunityOne Bancorp, please visit www.community1.com

http://www.nasdaq.com/press-release/capital-bank-and-communityone-bancorp-announce-definitive-merger-agreement-20151123-00337

CommunityOne Bancorp turns its eye to mergers and acquisitions (1/30/15)

By Deon Roberts

Charlotte-based CommunityOne Bancorp is stepping up its search for other lenders to possibly acquire or merge with, its chief executive said this week, a further sign that the bank is shifting its focus from rebuilding to growth.

The announcement comes more than a year after CommunityOne returned to profitability for the first time since being bailed out by U.S. taxpayers. CommunityOne, which last year became the last Charlotte-based lender to exit the federal Troubled Asset Relief Program, hasn’t acquired another bank since 2011 as it has concentrated on improving its financial health.

“We’ve got our balance sheet in a good position, and so I will begin spending a little bit more time looking at possible merger partners and looking at potential acquisitions,” CommunityOne’s chief executive, Bob Reid, told the Observer.

CommunityOne has spent the past several years cleaning up its two struggling banks – its namesake bank based in Asheboro and Granite Falls-based Bank of Granite, which it bought in 2011. The two banks were merged in 2013 under the CommunityOne name.

“Now we’re at a stage of: How do we not only continue nice organic growth, but how do we continue now to begin looking at merger partners that make sense for us?” Reid said.

Reid said the bank is having “general discussions” with other lenders. Those talks have not led to any deals.

CommunityOne struggled to become profitable after the financial crisis. It wasn’t until the third quarter of 2013 that it logged its first quarter of operating profit since 2008.

On Friday, the bank said it made a profit in the fourth quarter, marking its sixth profitable quarter in a row. The higher profit came as the bank grew its loans and deposits. CommunityOne’s consistent profitability enabled it to take an accounting step that gave a $142.5 million boost to its fourth-quarter earnings.

CommunityOne’s announcement comes at a time when mergers and acquisitions among small U.S. banks have been rising. Last year, the number of announced U.S. bank and thrift merger and acquisition deals totaled 294, up 29 percent from 2013, according to data firm SNL Financial.

The cost to comply with regulations put in effect because of the financial crisis is often cited as a key factor in such combinations. By merging, banks can spread those costs out over a larger institution.

Reid said growing CommunityOne through an acquisition would improve the value of the company. “And ultimately that will reflect in the market in terms of what investors are willing to pay for our stock,” he said.

CommunityOne, which employs about 80 people in its Morehead Street headquarters building and branches in the region, has recently taken cost-cutting measures.

Last year, it consolidated its separate president and chief operating officer positions under Reid. That resulted in President Brian Simpson stepping down in September. Its recent cost-cutting strategy also includes a plan to eliminate six branches, none of which are in the Charlotte area. The branch closures were announced in December.

Reid said CommunityOne continues to focus on improving its profitability. To help boost its lending, it has been adding bankers in Charlotte and elsewhere in the state. This month, the bank announced it has begun offering Small Business Administration loans for the first time since the financial crisis.

Under TARP, the U.S. Treasury took a loss on its $51.5 million investment in FNB United, the name CommunityOne Bancorp used before it merged Bank of Granite and CommunityOne Bank. Treasury used the money to buy preferred stock from FNB United in 2009. Treasury later agreed to convert the preferred stock to common stock at a 75 percent discount.

The total loss to the Treasury on the FNB investment, when unpaid principal, dividend and interest payments are tallied, was $45.2 million, according to the inspector general’s office for TARP. But without the bailout, CommunityOne might not exist today.

http://www.charlotteobserver.com/2015/01/30/5480875/communityone-turns-its-eye-to.html#.VNAZJoktGUk

CommunityOne Bancorp Announces Fourth Quarter Net Income of $144.6 Million, Reversal of $142.5 Million Deferred Tax Asset Valuation Allowance and Continued Strong Loan Growth (1/30/15)

CHARLOTTE, N.C., Jan. 30, 2015 (GLOBE NEWSWIRE) -- CommunityOne Bancorp ("Company") (Nasdaq:COB), the holding company for CommunityOne Bank, N.A. ("Bank"), today announced its unaudited financial results for the quarter ended December 31, 2014. Highlights include:

•Net income in 4Q 2014 was $144.6 million ($6.62 per diluted share) and $150.5 million ($6.88 per diluted share) for full year 2014. Fourth quarter results included the reversal of $142.5 million of the valuation allowance on the Company's deferred tax assets and a charge of $1.6 million for 6 branch closures announced during the quarter.

•Excluding branch closure costs and the deferred tax asset valuation allowance reversal, adjusted net income was $3.7 million, or $0.17 per diluted share (non-GAAP), in 4Q 2014.

•Loan growth continued to be strong and broad based in 4Q 2014. Loans held for investment grew $39.7 million, an annualized growth rate of 12%, and organic loans, which exclude purchased residential mortgage pools, grew at a 16% annualized growth rate during the quarter.

•Deposit growth was also robust in 4Q 2014, growing at an 8% annualized growth rate, while the cost of interest-bearing deposits fell one basis point from the previous quarter.

•Positive credit performance continued through 4Q 2014, with a net recovery of provision for loan losses of $1.3 million in 4Q 2014 and $5.4 million in full year 2014. Net charge-offs were a recovery of $0.1 million in 4Q 2014, and full year 2014 net charge-offs as a percent of average loans held for investment were 8 basis points, down from 26 basis points in full year 2013.

•Nonperforming assets fell 6% from 3Q 2014 and 28% from a year ago, and were 2.1% of total assets.

•Net interest income grew 6% in 4Q 2014 to $16.7 million. Net interest margin was improved at 3.49% in the fourth quarter, up 11 bps from the previous quarter. Earning assets grew at an annualized rate of 8% in 4Q 2014.

•Noninterest expenses rose $0.4 million in 4Q 2014, excluding credit and nonrecurring expenses. Average full time equivalent employees fell 5% during 2014 and were unchanged from 3Q 2014.

•Completion of a private placement of $25 million of common stock in 4Q 2014.

"We continued to execute our plan during the fourth quarter by growing loans and deposits, exceeding our 2014 goal with a 76% loan to deposit ratio," noted Bob Reid, President and CEO. "We added an SBA lending capability late in the fourth quarter and in January continued our external mortgage channel expansion with the addition of our first mortgage lenders in the Raleigh market. The year ended ahead of plan in terms of our credit quality and we expect that to continue."

"We continue to focus on reducing noninterest expense, and we announced the closing of six branches effective in the first quarter of 2015, even as we continue to make investments in new personnel, new markets and new products to drive growth. In addition, we were pleased to complete a $25 million private placement of common stock, which will continue to position our balance sheet for both organic growth and growth by acquisition should an opportunity present itself," added Bob Reid.

"We are very pleased that our consistent profitability since the third quarter of 2013, current forecasts of future profitability, and improvements in the asset quality of our loan portfolio have enabled us to take the important step of reversing $142.5 million of the deferred tax asset valuation allowance," said Dave Nielsen, Chief Financial Officer.

Fourth Quarter Financial Results

Results of Operations

Net income after tax was $144.6 million for the fourth quarter of 2014, compared to $1.8 million in the third quarter of 2014 and $2.3 million in the fourth quarter of 2013. Excluding the $1.6 million charge for the closure of six branches taken during the quarter and the impact of the $142.5 million release of deferred tax asset valuation allowance, net income was $3.7 million (non-GAAP). Fully diluted net income per share was $6.62 per share in the fourth quarter of 2014, compared to $0.08 per share and $0.11 per share in the third quarter of 2014 and the fourth quarter of 2013, respectively. Fully diluted net income per share in the fourth quarter, excluding the branch closure expenses and the deferred tax asset valuation allowance reversal, was $0.17 (non-GAAP). Pre-credit and nonrecurring items ("PCNR") earnings of $2.9 million, which exclude taxes, credit costs and provision, and nonrecurring income and expenses, were $0.9 million better than the $2.0 million in the third quarter of 2014, and $0.9 million lower than the $3.8 million in the fourth quarter of 2013.

Fourth quarter financial results included the reversal of $142.5 of valuation allowance on the Company's deferred tax assets as a result of consistent profitability since the third quarter of 2013, improvements in the asset quality of the loan portfolio and future earnings forecasts. In addition, results included a $1.3 million recovery of loan loss provision resulting from continued improvement in loss rates and credit quality of the non-purchased impaired loan portfolio and improvements in cash flow forecasts for the purchased impaired loan portfolio. Net interest income grew $0.9 million in the fourth quarter on an increase in average loans of $51.2 million and interest recoveries, and noninterest income grew $0.6 million on securities gains and debit and credit card income. Noninterest expense increased by $0.4 million in the quarter, primarily related to branch closure accruals of $1.6 million, year-end OREO holding expenses and year-end incentive and benefit expense adjustments.

Net income after tax was $150.5 million, or $6.88 per diluted share in full year 2014, compared to a net loss of $(1.5) million, or $(0.07) per diluted share, in full year 2013. PCNR earnings, which exclude taxes, credit costs and provision, and nonrecurring income and expenses, was $9.1 million in full year 2014, down from $10.4 million in full year 2013.

The financial performance in 2014 was driven by the $142.5 million deferred tax asset valuation allowance reversal discussed earlier, a $5.9 million reduction in noninterest expenses primarily as a result of a $5.1 million decline in OREO and loan collection costs and $5.4 million in net recovery of provision during the year driven by improvements in asset quality, offset by a $1.8 million decline in gains on the sale of investment securities.

Loan and Deposits

Loan growth across all business lines continued to be very strong during the fourth quarter, reflecting good loan demand, portfolio growth across all our businesses and the impact of market expansion and recent personnel additions. Loans held for investment grew 3% in the fourth quarter, an annualized growth rate of 12%, a continuation of last quarter's 15% annualized growth rate. Loans held for investment grew by $39.7 million in the fourth quarter to $1.36 billion, compared to $1.32 billion at the end of the third quarter, and the Company exceeded its 2014 goal with a year-end loans to deposits ratio of 76%. Excluding our purchased residential mortgage loan pools, our total organic loan growth was even stronger at $42.7 million during the quarter, an annualized growth rate of 15%. Pass rated loans grew $45.7 million in the fourth quarter, an annualized growth rate of 15%, reflecting continued improvement in the asset quality of the loan portfolio.

Loans held for investment grew 12%, or $145.5 million, in 2014 to $1.36 billion, compared to $1.21 billion at the end of the 2013. Excluding purchased residential mortgage loan pools, organic loans grew 15%, or $150.3 million, during 2014. Pass rated loans grew 17%, or $183.8 million, in 2014.

Loan growth was in part the result of investments in expanded commercial, real estate and residential mortgage lending capacity through hiring and geographic expansion during 2014 in Raleigh, Greensboro and Winston-Salem. Late in the fourth quarter, we hired two Small Business Administration lenders and in early January we hired two new residential mortgage loan officers in our non-branch sales channel in Raleigh. We expect these new hires will sustain our accelerated pace of loan growth and enhance our mortgage loan sales income in 2015.

Total deposits increased $35.5 million, or 2%, in the fourth quarter, the result of an enhanced focus and promotional activities to support our accelerated loan growth. Deposits were $1.79 billion at the end of the quarter. Low cost core deposits, consisting of all non-time deposits, grew $29.1 million during the fourth quarter.

For the full year, total deposits grew $45.7 million, or 3%, reflecting the enhanced deposit focus in the fourth quarter, offset by the impact of the closure of four branches in the first quarter of 2014. Low cost core deposits, consisting of non-CD deposits, grew $39.7 million during 2014 to $1.21 billion, from $1.17 billion at December 31, 2013. Noninterest-bearing deposits grew $33.3 million, or 11%, in 2014 as a result of increased commercial relationships and investments in treasury management products.

Net Interest Income

Fourth quarter net interest income was $16.7 million, up 6% compared to $15.8 million in the third quarter of 2014, as a result of a $38.2 million, or 2%, increase in average earning assets in the quarter, and $0.5 million of incremental interest recoveries on nonaccrual loans during the quarter. Accretion, net of contractual interest collected, on purchased impaired loans was $0.7 million in the fourth quarter, compared to $0.8 million and $1.3 million in the third quarter of 2014 and the fourth quarter of 2013, respectively.

The Company's net interest margin was 3.49% for the fourth quarter of 2014, up 11 basis points from 3.38% in the third quarter of 2014, and lower by 3 basis points from 3.52% in the fourth quarter of last year. The 11 basis point increase in the net interest margin in the fourth quarter of 2014 over the third quarter was the result of the incremental increase in interest recoveries on nonaccrual loans noted above. The cost of interest-bearing deposits fell 1 basis point during the quarter from the previous quarter to 47 basis points, while the cost of all deposit funding was unchanged during the quarter at 39 basis points.

Net interest income was $63.8 million for the full year 2014, a decrease of 1% compared to $64.4 million in 2013, as a result of an $18.4 million decline in average earning assets during the year and a 27 basis point decline in average loan yield excluding the impact of a $2.6 million decline in non-cash loan accretion, offset by an improvement in loans as a percentage of earning assets from 62% in 2013 to 68% in 2014. The Company's net interest margin was 3.43% in 2014, down one basis point from 2013.

Asset Quality and Provision for Loan Losses

Nonperforming assets, including nonaccruing loans, loans over 90 days delinquent and still accruing not accounted for under purchased impaired loan accounting, and other real estate owned and repossessed loan collateral, continued to improve and fell to the lowest level since the recapitalization in 2011. These assets fell to $45.8 million, or 2.1% of total assets at the end of the fourth quarter, compared to $48.8 million, or 2.4% of total assets, at the end of the third quarter. Other real estate owned and repossessed loan collateral was essentially unchanged during the fourth quarter at $20.4 million, and fell by $8.0 million, or 28%, compared to the same quarter last year. For the fourth quarter, the Company had net OREO write-downs of $111 thousand, which included gains on the sale of OREO of $44 thousand.

The allowance for loan losses was $20.3 million, or 1.50% of loans held for investment, at the end of the fourth quarter, compared to $21.5 million, or 1.63%, at the end of the previous quarter, and $26.8 million, or 2.21%, at year-end 2013. Recovery of provision for loan losses was $1.3 million in the fourth quarter compared to a recovery of provision of $1.7 million in the third quarter, and a provision for loan losses of $1.8 million in the fourth quarter of 2013. The recovery of provision for loan losses in the fourth quarter includes a $0.6 million recovery of provision for loan losses in the non-purchased impaired loan portfolio as a result of continued improvements in historical loss rates utilized in our allowance for loan loss model, and $0.7 million recovery of provision for loan losses related to improvements in the cash flow forecast during the quarter on the purchased impaired loan portfolio. Recovery of provision for loan losses was $5.4 million for full year 2014 compared to a provision for loan losses of $0.5 million for full year 2013 as asset quality continued to improve.

The Company had a net recovery of charge-offs in the fourth quarter of $141 thousand, and $1.1 million in net charge-offs in full year 2014, a 65% decline from $3.1 million in full year 2013. The full year 2014 net charge-offs as a percentage of average loans fell to 0.08%, compared to 0.26% in full year 2013.

Noninterest Income

For the fourth quarter, PCNR noninterest income was $4.3 million, an increase of $0.4 million compared to $4.0 million in the previous quarter. Total noninterest income was $4.5 million in the fourth quarter, compared to $4.0 million in the third quarter of 2014, principally related to $0.2 million of securities gains and an increase of $0.1 million in debit and credit card income during the quarter.

Other components of noninterest income were also improved in the fourth quarter, including a $35 thousand, or 17%, increase in mortgage loan income and $50 thousand, or 15%, increase in trust and investment services income. Mortgage loan income rose based on an increase in origination of loans sold to Fannie Mae. During the quarter, we originated $39.5 million of mortgage loans, a seasonal decrease of 2% from the third quarter, including $16.7 million of loans for sale to Fannie Mae, an increase of 14% from the third quarter.

PCNR noninterest income fell $1.3 million in full year 2014 to $16.4 million, compared to $17.6 million in full year 2013. Decreases of $1.4 million in mortgage loan income and $0.4 million in service charges on deposits were offset by $0.3 million growth in card and merchant services income, on increased activity volumes, and a $0.2 million increase in trust and investment services income as a result of increases in assets under management and investment sales activity.

Noninterest Expense

Noninterest expense increased by $0.4 million in the quarter, primarily related to branch closure accruals of $1.6 million, year-end OREO holding expenses and year-end incentive and benefit expense adjustments. PCNR noninterest expense, which excludes merger, OREO, collection, and other nonrecurring expenses, was $18.1 million, an increase of $0.4 million in the fourth quarter from the prior quarter, primarily as a result of the impact of $0.3 million in year-end incentive and benefit expense accruals and $0.1 million cost of deposit campaign advertising. Average full time equivalent employees were 568, unchanged in the fourth quarter, and 5% lower than 596 at year-end 2013.

Total noninterest expense in full year 2014 fell $5.9 million, or 7%, from full year 2013 on a $5.1 million reduction in OREO and loan collection costs. PCNR noninterest expense fell by 1%, or $0.7 million, to $71.0 million in 2014, compared to $71.7 million in 2013, primarily as a result of a $0.6 million of declines in occupancy, furniture, equipment and data processing expenses, as a result of four branch closures in the first quarter of 2014, and $0.6 million decline in professional expenses.

Conference Call

A pre-recorded conference call will be held at 11:00 a.m., Eastern time this morning January 30th, 2015. Interested parties should dial in five to ten minutes prior to the scheduled start time to 1-866-235-9913. The webcast may be accessed via the Investor Relations section of the Company's website at www.community1.com. The webcast replay will be available until January 30, 2016. The teleconference replay will be available one hour after the end of the conference through February 14, 2015. To access the teleconference replay, dial toll free in the U.S. to 1-877-344-7529 or outside the U.S. to 1-412-317-0088 and provide Conference ID Number 10059200.

About CommunityOne Bancorp

CommunityOne Bancorp is the North Carolina-based bank holding company for CommunityOne Bank, N.A., a $2 billion community bank, operating 50 branches throughout North Carolina, offering a wide variety of consumer, mortgage and commercial banking services to retail and business customers, including loans, deposits, treasury management, wealth and online banking. Investors can obtain additional information about the Company and the Bank through reviewing its website at www.community1.com.

http://www.nasdaq.com/press-release/communityone-bancorp-announces-fourth-quarter-net-income-of-1446-million-reversal-of-1425-million-20150130-00259

Carlyle and Oak Hill participates in Private Placement

Carlyle purchases 842,063 shares, while Oak Hill adds 842,383 shares.

http://www.sec.gov/Archives/edgar/data/764811/000114420414076455/v397731_sc13da.htm

http://www.sec.gov/Archives/edgar/data/764811/000114420414076461/v397718_sc13da.htm

CommunityOne Bancorp Announces Private Placement of Common Stock (12/30/14)

CHARLOTTE, N.C., Dec. 30, 2014 (GLOBE NEWSWIRE) -- CommunityOne Bancorp (Nasdaq:COB) (the "Company"), the bank holding company for CommunityOne Bank, N.A. (the "Bank"), announced today that it completed a private placement of $25 million of its common stock, positioning the Company to grow its earning assets, including its loan portfolio, in 2015.

In the offering, the Company issued its stock to certain "accredited investors" within the meaning of the Securities Act of 1933, as amended (the "Securities Act"), at a purchase price of $10.56 per share (the "Offering"). The terms of the offering were set forth in a Subscription Agreement, dated as of December 29, 2014, entered into between the Company and each investor. The proceeds from the offering will allow the Company to increase its banking activities in its communities as the economy continues to strengthen. During 2014, the Bank invested in expanded commercial, real estate and residential mortgage lending capacity through hiring and geographic expansion into Raleigh and Winston Salem, North Carolina, and as reported, experienced 15% annualized loan growth in the 3rd quarter.

"The participation by our largest investors in the Offering indicates their support of our 2015 goals," said Chan Martin, Chairman of the Company's Board of Directors. "We look forward to continuing to serve the communities in which we do business next year."

"We are very pleased with the success of the Offering," said Bob Reid, President and CEO of the Company. "The proceeds from the offering should allow us to continue to invest in our lending platforms in order to support continued robust loan growth into the new year."

The Company's common stock was offered and sold only to investors that met the "accredited investor" definition of Rule 501 of the Securities Act in reliance on the exemption from registration afforded under Section 4(2) of the Securities Act and Rule 506 of Regulation D under the Securities Act.

The common stock offered in the Offering has not been registered under the Securities Act, or state securities laws, and may not be offered or sold in the United States without being registered with the Securities and Exchange Commission (the "SEC") or through an applicable exemption from SEC registration requirements. The Company has agreed to file a shelf registration statement with the SEC covering the common stock purchased by the investors. Any offering of the Company's securities under the resale registration statement will be made only by means of a prospectus.

This press release is for informational purposes only and does not constitute an offer to sell or the solicitation of an offer to buy any security of the Company, nor will there be any sale of any security in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of such state.

About CommunityOne Bancorp

CommunityOne Bancorp is the North Carolina-based bank holding company for CommunityOne Bank, N.A., a $2 billion community bank, operating 50 branches throughout North Carolina, offering a wide variety of consumer, mortgage and commercial banking services to retail and business customers, including loans, deposits, treasury management, wealth and online banking. Investors can obtain additional information about the Company and the Bank through reviewing its website at www.community1.com.

http://globenewswire.com/news-release/2014/12/30/694471/10113716/en/CommunityOne-Bancorp-Announces-Private-Placement-of-Common-Stock.html

CommunityOne Bancorp Announces Fifth Consecutive Quarterly Profit and Continued Strong Loan Growth (10/31/14)

CHARLOTTE, N.C., Oct. 31, 2014 (GLOBE NEWSWIRE) -- CommunityOne Bancorp ("Company") (Nasdaq:COB), the holding company for CommunityOne Bank, N.A. ("Bank"), today reported its unaudited financial results for the quarter ended September 30, 2014. Highlights include:

• The third quarter was the Company's fifth consecutive profitable quarter.

• Net income in 3Q 2014 was $1.8 million, and $3.8 million excluding a charge of $2.1 million relating to the departure of the Company's CEO during the quarter.

• Pre-Credit and Non-Recurring (PCNR) earnings were $2.0 million.

• Loan growth continued to be strong and broad based in the third quarter. Loans grew $48.3 million, an annualized growth rate of over 15%, a continuation of the second quarter's 16% annualized growth rate.

• The Company continued to grow commercial, real estate and residential mortgage lending capacity, hiring nine bankers during the quarter as part of its geographic expansion into Greensboro, Winston-Salem, and Raleigh and its external mortgage channel expansion.

• Positive credit performance continued in 3Q 2014, resulting in a net recovery of loan loss provision of $1.7 million. Net charge-offs were $0.8 million, and annualized net charge-offs as a percent of average loans held for investment were 0.24% during the quarter. The Company had net OREO recovery of $29 thousand during the quarter.

• Asset quality continued to improve as nonperforming assets fell 9% from 2Q 2014 and 42% from 3Q 2013. Nonperforming assets fell to their lowest levels since the recapitalization in 2011 and were 2.4% of total assets.

• Net interest income grew at over a 3% annualized rate in the third quarter to $15.8 million. Net interest margin was stable at 3.38% in the quarter, down 2 bps from the previous quarter.

• Noninterest expenses decreased $1.3 million excluding the $2.1 million charge relating to the departure of the Company's CEO. Excluding the one-time charge, personnel and benefit expenses increased primarily related to loan origination personnel additions during the quarter, offset by lower OREO and collection costs of $1.3 million. Full time equivalent employees have been reduced 7% year over year.

"During the quarter, we continued our momentum by growing loans and deposits, achieving our end of year 2014 goal of a 75% loan to deposit ratio," noted Bob Reid, President and CEO. "Our credit quality also continues to track ahead of plan and we expect that to continue. Despite a significant charge related to the departure of our CEO, I am pleased we made significant progress on our key goals and delivered our fifth consecutive quarter of profitability. We continue to focus on reducing noninterest expense as well as our nonperforming assets, even as we make investments in new personnel, new markets and new products to drive growth."

Third Quarter Financial Results

Results of Operations

Net income after-tax was $1.8 million for the third quarter of 2014, compared to $2.8 million in the second quarter of 2014 and $4.0 million in the third quarter of 2013. Excluding the $2.1 million charge relating to the departure of the Company's CEO during the quarter, net income after-tax was $3.8 million. Fully diluted net income per share was $0.08 per share in the third quarter of 2014, compared to $0.13 per share and $0.18 per share in the second quarter of 2014 and the third quarter of 2013, respectively. Pre-credit and non-recurring item (PCNR) earnings of $2.0 million, which exclude taxes, credit costs and provision, and non-recurring income and expenses, were $0.5 million lower than the $2.6 million in the second quarter of 2014, and $2.7 million lower than the $4.7 million in the third quarter of 2013.

Third quarter financial results included a $1.7 million recovery of loan loss provision resulting from continued improvement in loss rates and credit quality of the non-purchased impaired loan portfolio. Net interest income also increased $0.1 million on an increase in average loans held for investment of $51.1 million in the quarter, and noninterest income fell $0.9 million on reduced securities gains during the third quarter. Noninterest expense increased by $0.7 million in the quarter, primarily related to severance costs of $2.1 million incurred in connection with the departure of the Company's CEO.

Loan and Deposits

Loan growth across all business lines continued to be very strong during the third quarter, reflecting good loan demand, portfolio growth across all our businesses and the impact of market expansion and recent personnel additions. Loans grew by just under 4% in the third quarter, an annualized growth rate of 15%, which is a continuation of last quarter's 16% annualized growth rate. Loan balances grew by $48.3 million in the third quarter to $1.32 billion, compared to $1.27 billion at the end of the second quarter, and the company reached its end of year 2014 loans to deposit ratio goal of 75%. Excluding our purchased residential mortgage loan pools, our organic loan growth was even stronger at $56.9 million during the quarter, an annualized growth rate of 22%. Pass rated loans grew $60.5 million in the third quarter, an annualized growth rate of 21%, reflecting continued improvement in the asset quality of the loan portfolio.

Loan growth was in part the result of investments in expanded commercial, real estate and residential mortgage lending capacity through hiring and geographic expansion during the second and third quarters of this year in Raleigh, Greensboro and Winston-Salem. During the third quarter, we hired seven commercial and real estate bankers in Greensboro, Winston-Salem, and Raleigh and two new residential mortgage loan officers in our non-branch sales channel focused on Charlotte and other metro markets. We expect these new hires will sustain our accelerated pace of loan growth and enhance our mortgage loan sales income in the fourth quarter of 2014 and beyond.

Total deposits have increased $10.2 million, or 1%, year to date in 2014. Net of matured brokered deposits of $10.1 million during the third quarter, deposits increased by $5.3 million, and were $1.76 billion at the end of the quarter. Low cost core deposits, consisting of all non-time deposits, grew $4.6 million during the third quarter.

Net Interest Income

Third quarter net interest income was $15.8 million, up just less than 1% compared to $15.7 million in the second quarter of 2014, and an annualized growth rate of over 3%. Accretion, net of contractual interest collected, on purchased impaired loans was $0.8 million in the third quarter, compared to $0.7 million, and $2.0 million in the second quarter of 2014 and the third quarter of 2013, respectively.

The Company's net interest margin was 3.38% for the third quarter of 2014, down slightly from 3.40% in the second quarter of 2014, and lower by 38 basis points from 3.76% in the third quarter of last year, principally as a result of the decrease in non-cash accretion of $1.2 million from the prior year. The 2 basis point decline in the net interest margin in the third quarter of 2014 over the second quarter was the result of an 8 basis point decrease in loan yield during the quarter principally from decreased mortgage loan fees earned from loan prepayments and a 15 basis point decrease in the yield on investments as a result of approximately $25 million in investment portfolio sales during the quarter, offset by an improved earning asset mix resulting from strong loan origination and the investment portfolio sales. The cost of interest- bearing deposits was flat during the quarter from the previous quarter at 48 basis points, while the cost of all deposit funding fell 1 bp during the quarter to 39 bps.

Asset Quality and Provision for Loan Losses

Nonperforming assets, including nonaccruing loans, loans over 90 days delinquent and still accruing not accounted for under purchased impaired loan accounting, and other real estate owned and repossessed loan collateral, continued to improve and fell to the lowest level since the recapitalization in 2011. These assets fell to $48.8 million, or 2.4% of total assets at the end of the third quarter, compared to $53.6 million, or 2.7% of total assets, at the end of the second quarter. Other real estate owned and repossessed loan collateral fell by 7% during the third quarter to $20.3 million, and fell by $12.9 million, or 39%, compared to the same quarter last year. For the third quarter, the Company had a net OREO recovery of $29 thousand, which included gains on the sale of OREO of $0.2 million.

The allowance for loan losses was $21.5 million, or 1.63% of loans held for investment, at the end of the third quarter, compared to $24.0 million, or 1.89%, at the end of the previous quarter, and $25.4 million, or 2.12%, at the end of the third quarter of last year. Recovery of provision for loan losses was $1.7 million in the third quarter compared to a recovery of provision of $1.7 million in the second quarter, and a recovery of provision of $0.4 million in the third quarter of 2013. The recovery of provision in the third quarter includes a $1.9 million recovery of provision in the non-purchased impaired loan portfolio as a result of continued improvements in historical loss rates utilized in our allowance for loan loss model, offset by $0.2 million provision related to reductions in the cash flow forecast during the quarter on the purchased impaired loan portfolio. The year to date annualized net charge-off rate on average loans increased slightly to 0.13% in the third quarter, compared to 0.07% in the second quarter. Year to date, our annualized charge-off rate is 0.24% compared to 0.26% for the full year 2013.

Noninterest Income

For the third quarter, PCNR noninterest income was $4.0 million, a decline of $0.2 million compared to $4.2 million in the previous quarter. Total noninterest income was also $4.0 million in the third quarter, compared to $4.8 million in the second quarter of 2014, principally related to $0.7 million of securities gains on the sale of an SBIC investment last quarter.

Mortgage loan income fell during the third quarter based on lower loan origination volumes and decreased origination of loans sold to Fannie Mae. During the quarter, we originated $40.5 million of mortgage loans, a decrease of 4% from the second quarter, including $14.7 million of loans for sale to Fannie Mae. Service charges fell by 2% during the third quarter of 2014 to $1.6 million, on increased service charge refunds during the quarter. Trust and investment services income fell $55 thousand from the previous quarter on reduced annuity sales activity.

Noninterest Expense

Total noninterest expense rose by $0.7 million in the third quarter from the prior quarter on nonrecurring expenses of $2.1 million related to the CEO severance costs of $2.1 during the quarter, offset by $1.3 million reduction in OREO and loan collection expenses and $0.2 million lower FDIC insurance charges. Excluding the $2.1 million CEO severance charge, noninterest expenses were $1.3 million, or 7%, lower than the second quarter.

Pre-Credit and Non-Recurring (PCNR) noninterest expense, which excludes merger, OREO, collection, and other non-recurring expenses, was $17.8 million, an increase of $0.5 million in the third quarter from the prior quarter, primarily as a result of the impact of new hires in the commercial and residential mortgage teams and benefit expenses. Average full time equivalent employees (FTE) were 568, up 2% from 558 in the second quarter on loan origination personnel hiring, but have been reduced 7% from 608 from the prior year.

Conference Call

A conference call will be held at 11:00 a.m., Eastern time this morning October 31st, 2014. Interested parties should dial in five to ten minutes prior to the scheduled start time to 1-866-235-9913. The webcast may be accessed via the Investor Relations section of the Company's website at www.community1.com. The webcast replay will be available until October 31, 2015. The teleconference replay will be available one hour after the end of the conference through November 13, 2014 at 9:00 a.m. Eastern Time. To access the teleconference replay, dial toll free in the U.S. to 1-877-344-7529 or outside the U.S. to 1-412-317-0088 and provide Conference ID Number 10053403.

About CommunityOne Bancorp

CommunityOne Bancorp is the North Carolina-based bank holding company for CommunityOne Bank, N.A., a $2 billion community bank, operating 50 branches throughout North Carolina, offering a wide variety of consumer, mortgage and commercial banking services to retail and business customers, including loans, deposits, treasury management, wealth and online banking. Investors can obtain additional information about the Company and the Bank through reviewing its website at www.community1.com.

http://globenewswire.com/news-release/2014/10/31/678647/10105601/en/CommunityOne-Bancorp-Announces-Fifth-Consecutive-Quarterly-Profit-and-Continued-Strong-Loan-Growth.html#sthash.iiRQqcC7.dpuf

CommunityOne Bancorp Announces Departure of CEO After Returning the Company to Profitability (9/12/14)

CommunityOne Bancorp (the "Company"or "CommunityOne") announced today that Brian Simpson, 51, its Chief Executive Officer, as well as the CEO of CommunityOne Bank, N.A. (the "Bank"), who led the Bank and the Bank of Granite formerly based in Hickory, NC, back to profitability, is leaving the Company effective September 30, 2014. He also is stepping down from the boards of directors of the Company and the Bank. He will be consulting with the Company for a period of up to two years. CommunityOne's current President, Bob Reid, 58, will assume the duties of CEO going forward upon receipt of supervisory nonobjection.

During his three year tenure, Simpson, and the veteran management team that he recruited, recapitalized the two historically important North Carolina banks, dramatically reduced their levels of problem assets, returned them to profitability and merged them into CommunityOne Bank to create one of the largest community banks in the Piedmont and Western regions of North Carolina.

"With the financial institution's core business strengthened, CommunityOne is increasingly focused on managing costs and growing its business lines in the competitive North Carolina community banking market," said CommunityOne Chairman Chan Martin.

"As the Board began its 2015 strategic planning process, the need to reduce operating expenses to levels consistent with the company's peers was an obvious focus," Martin said. "Management presented various alternatives including consolidation at the executive management level. The Board supported the recommendation and it asked Bob to lead the consolidation. Brian has provided leadership and vision to the company, and his service is greatly appreciated by the Board."

Reid has been President of CommunityOne for the past three years with responsibility for its lines of business, operations and technology, marketing, internal and external communications, community development and corporate real estate. Most recently he led CommunityOne's expansion of commercial lending activities in Greensboro, and into Winston-Salem and Raleigh.

"I am pleased to follow in Brian's footsteps and lead CommunityOne as it increasingly shifts focus to the organic growth of its business," Reid said. "Brian has done a very nice job leading the company over the past three years. We certainly wish him well and thank him for the significant contributions he has made to the company."

About CommunityOne Bancorp

CommunityOne Bancorp is the North Carolina-based bank holding company for CommunityOne Bank, N.A., a $2 billion community bank, operating 50 branches throughout North Carolina, offering a wide variety of consumer, mortgage and commercial banking services to retail and business customers, including loans, deposits, treasury management, wealth and online banking. Investors can obtain additional information about the Company and the Bank through reviewing its website at www.community1.com.

http://www.marketwatch.com/story/communityone-bancorp-announces-departure-of-ceo-after-returning-the-company-to-profitability-2014-09-12?reflink=MW_news_stmp

CommunityOne Bancorp Announces Fourth Consecutive Quarterly Profit With Second Quarter 2014 Earnings of $2.8 Million (7/29/14)

CHARLOTTE, N.C., July 29, 2014 (GLOBE NEWSWIRE) -- CommunityOne Bancorp ("Company") (Nasdaq:COB), the holding company for CommunityOne Bank, N.A. ("Bank"), today reported its unaudited financial results for the quarter ended June 30, 2014. Highlights include:

The second quarter was the Company's fourth consecutive profitable quarter.

Net income before tax in 2Q 2014 increased 133% to $3.0 million from last quarter, and was $6.0 million better year over year.

Core earnings grew 55% from the first quarter to $2.6 million, and were improved from $1.8 million in the same quarter last year.

Loan growth was strong and broad based in the quarter. Loans grew $50.1 million, an annualized growth rate of over 16%, and all our lines of business grew loans during the quarter. Excluding purchased residential mortgage loan pools, organic loans grew $34.8 million in the quarter at almost a 14% annualized growth rate.

The Company expanded commercial, real estate and residential mortgage lending capacity through hiring of nine bankers and geographic expansion into Raleigh and Winston-Salem.

Positive credit performance continued in 2Q 2014, resulting in a net recovery of loan loss provision of $1.7 million. Net charge-offs were $0.4 million and annualized net charge-offs as a percent of average loans held for investment were 0.12% during the quarter.

Asset quality continued to improve as nonperforming assets fell 9% from 1Q 2014 and 44% from 2Q 2013. Nonperforming assets fell to their lowest levels since the recapitalization in 2011 and were 2.7% of total assets.

Net interest income grew 2% in the second quarter to $15.7 million. Net interest margin declined by 3 basis points to 3.40% from 1Q 2014, but was 13 bps better than 2Q 2013.

Noninterest expenses were well controlled, $5.4 million (22%) lower than 2Q 2013, as a result of lower personnel expenses, OREO reductions and merger synergies. Core noninterest expenses were 2% lower than 1Q 2014 on reduced personnel, professional fees, and occupancy expenses.

The Company incurred $0.4 million in transaction expenses associated with the May 24th sale by the U.S. Treasury of its common stock investment in the Company that it acquired in connection with the Company's recapitalization in 2011.

"I am pleased to report solid progress on our goals for 2014 with robust and accelerating loan growth, continued expense reductions and further improvements in asset quality, all of which are ahead of plan with good forward momentum," noted Brian Simpson, CEO.

"Overall, I continued to be very pleased with our performance and loan growth is occurring in all lines of business," said Bob Reid, President. "In June and early July, we enhanced our commercial and real estate lending capability by opening loan production offices in Raleigh and Winston Salem and hiring 4 additional commercial bankers for our Greensboro market. Additionally, we hired an experienced mortgage executive to lead our non-branch mortgage channel, focusing on mortgage loan growth in the Charlotte, Greensboro/Winston-Salem, and Raleigh markets."

Second Quarter Financial Results

Results of Operations

Net income before tax in the second quarter 2014 was $3.0 million, up 133% from the first quarter, and $6.0 million better than the second quarter of 2013. Net income after tax was $2.8 million for the second quarter of 2014, compared to net income after tax of $1.3 million in the first quarter of 2014 and a net loss of $(3.2) million in the second quarter of 2013. Second quarter net income after tax included income tax expense of $0.2 million. Net income per share was $0.13 per share in the second quarter of 2014, compared to net income of $0.06 per share and a net loss of $(0.15) per share in the first quarter of 2014 and the second quarter of 2013, respectively. Core earnings of $2.6 million, which exclude taxes, credit costs and provision, and non-recurring income and expenses, were $0.9 million higher than the $1.6 million in the first quarter of 2014, and $0.7 million higher than the $1.8 million in the second quarter of 2013.

Second quarter financial results included a $1.7 million recovery of loan loss provision resulting from continued improvement in loss rates and credit quality of the non-purchased impaired loan portfolio and improvements during the second quarter in the cash flow reforecast for the purchased impaired loan portfolio. Net interest income increased $0.2 million on an increase in average loans held for investment of $28.8 million in the quarter, and noninterest income rose $1.0 million on securities gains and stronger mortgage and wealth management results. Noninterest expense increased by $0.5 million in the quarter, primarily related to $0.4 million in non-recurring expenses associated with the sale of the US Treasury's common stock investment in the Company.

Net Interest Income

Second quarter net interest income was $15.7 million, a 2% increase compared to both $15.4 million in the same quarter of 2013 and $15.5 million in the first quarter of 2014. Accretion, net of contractual interest collected, on purchased impaired loans was $0.7 million, compared to $0.9 million, and $1.7 million in the first quarter of 2014 and the second quarter of 2013, respectively. Net of this non-cash accretion, net interest income grew by 9% year over year, and at an annualized growth rate of 11% from the first quarter. As a result of positive changes in our cash flow forecast for the purchased impaired loan portfolio during the second quarter, the estimated future accretion (interest income) on this portfolio has increased by $1.9 million.

The Company's net interest margin was 3.40% for the second quarter of 2014, down marginally from 3.43% in the first quarter of 2014, but increased by 13 basis points from 3.27% in the second quarter of last year. The 3 basis point decline in the net interest margin in the second quarter of 2014 over the first quarter was principally the result of a decrease in loan yield during the quarter driven by the $0.2 million reduction in non-cash accretion on purchased impaired loans this quarter, and a 2 basis point increase in the cost of interest bearing liabilities as a result of first quarter FHLB Advances hedging activity. The cost of interest bearing deposits was flat during the first quarter from the previous quarter at 48 basis points.

Asset Quality and Provision for Loan Losses

Nonperforming assets, including nonaccruing loans, loans over 90 days delinquent and still accruing not accounted for under purchased impaired loan accounting, and other real estate owned and repossessed loan collateral, continued to improve and fell to the lowest level since the recapitalization in 2011. These assets fell to $53.6 million, or 2.7% of total assets at the end of the second quarter, compared to $58.6 million, or 2.9% of total assets, at the end of the first quarter. Other real estate owned and repossessed loan collateral fell by 11% during the second quarter to $21.9 million, and fell by $13.9 million, or 39%, compared to the same quarter last year. For the second quarter, the Company had net OREO costs of $1.0 million, which included gains on the sale of OREO of $0.3 million.

The allowance for loan losses was $24.0 million, or 1.89% of loans held for investment, at the end of the second quarter, compared to $26.0 million, or 2.13%, at the end of the previous quarter, and $25.1 million, or 2.11%, at the end of the second quarter of last year. Recovery of provision for loan losses was $1.7 million in the second quarter compared to a recovery of provision of $0.7 million in the first quarter, and a recovery of provision of $1.1 million in the second quarter of 2013. The recovery of provision in the second quarter includes a $1.2 million recovery of provision in the non-purchased impaired loan portfolio as a result of continued improvements in historical loss rates utilized in our allowance for loan loss model, with the remaining $0.5 million recovery of provision related to improvements in the cash flow forecast during the quarter on the purchased impaired loan portfolio. The year to date annualized net charge-off rate increased slightly to 0.07% in the second quarter, compared to 0.02% in the first quarter, and 0.26% for the full year 2013.

Noninterest Income

For the second quarter, core noninterest income was $4.2 million, an increase of $0.2 million compared to $4.0 million in the previous quarter and $4.9 million in the second quarter a year ago. Total noninterest income was $4.9 million in the second quarter, compared to $3.9 million in the first quarter of 2014, principally related to $0.7 million of securities gains on the sale of an SBIC investment.

Service charges were improved by 4% during the second quarter of 2014 to $1.6 million. Mortgage loan income was also seasonally higher during the second quarter, up $87 thousand, or 50%, from the first quarter. During the quarter we originated $42.4 million of mortgage loans, an increase of 70% from the first quarter, including $15.4 million of loans for sale to Fannie Mae. Cardholder and merchant services income increased $96 thousand, or 9%, from the first quarter on improved debit card and merchant services activity levels. Wealth management income climbed 11% over the previous quarter on stronger investment, trust, and wealth transfer activity.

Noninterest Expense

Core noninterest expense, which excludes merger, OREO, collection, and other non-recurring expenses, was $1.2 million, or 6%, lower than $18.5 million in the second quarter a year ago as a result of expense synergies from the Bank of Granite merger and other ongoing cost reduction efforts. Core noninterest expense also fell from the first quarter by 2% on lower personnel costs. Average full time equivalent employees (FTE) were 558, down from 576 in the first quarter and 630 in the second quarter of 2013, reductions of 3% and 12%, respectively.

Total noninterest expense climbed slightly by $0.5 million in the second quarter from the prior quarter on nonrecurring expenses of $0.4 million related to the sale by the US Treasury of its common stock investment in the Company and $0.7 million increase in OREO expenses. The increase in OREO expenses this quarter was the result of writedowns in the OREO portfolio driven by the Company's annual appraisal schedule. In the second quarter of 2013, the Company reappraised its entire OREO portfolio, resulting in a concentration of OREO reappraisals in the second quarter of this year. We do not expect significant additional OREO writedowns in the second half of 2014.

Balance Sheet Review

Loan growth during the second quarter was very strong across all the Company's business lines. Loans held for investment grew over 4%, or $50.1 million, in the second quarter to $1.27 billion, compared to $1.22 billion at the end of the first quarter. Loans held for investment grew at an annualized rate of over 16% in the second quarter, reflecting improving loan demand and portfolio growth across all our businesses. Pass rated loans grew $63.1 million in the second quarter, an annualized growth rate of 23%. During the quarter we purchased a $19.6 million portfolio of residential mortgage loans. Excluding these purchased residential mortgage loans, total loans grew by over 3% in the second quarter, an annual rate of almost 14%.

We expanded commercial, real estate and residential mortgage lending capacity through hiring and geographic expansion during the second quarter and the first part of July. We opened a Raleigh real estate and commercial loan production office in June, and in July we hired four additional commercial bankers in Greensboro and hired two commercial bankers for a real estate and commercial loan production office in Winston-Salem. We also hired in June a new residential mortgage sales manager to lead a non-branch sales channel focused on Charlotte and other metro markets. We expect that these additional hires will result in increased loan growth and mortgage loan sales income in the second half of 2014 and beyond.

Total deposits are up $15.1 million, or 1%, through the first half of 2014, a 2% annualized growth rate. Deposits declined slightly by $4.2 million during the second quarter to $1.76 billion, on seasonally lower interest bearing demand deposit accounts and declines in money market balances. Noninterest bearing deposits grew 2% during the quarter, or $6.3 million. Low cost core deposits, consisting of non-CD deposits, fell $22.6 million during the second quarter, but are improved by $9.9 million, or 1%, from the second quarter of last year.

Conference Call

A conference call will be held at 11:00 a.m., Eastern time this morning July 29th, 2014. Interested parties should dial in five to ten minutes prior to the scheduled start time to 1-866-235-9913. International callers should dial in to 1-412-902-4121. Canadian callers may dial in to 1-855-669-9657. The webcast may be accessed via the Investor Relations section of the Company's website at www.community1.com. The webcast replay will be available until July 29, 2015. The teleconference replay will be available one hour after the end of the conference through August 13, 2014 at 9:00 a.m. Eastern Time. To access the teleconference replay, dial toll free in the U.S. to 1-877-344-7529 or outside the U.S. to 1-412-317-0088 and provide Conference ID Number 10048912.

About CommunityOne Bancorp

CommunityOne Bancorp is the North Carolina-based bank holding company for CommunityOne Bank, N.A., a $2 billion community bank, operating 50 branches throughout North Carolina, offering a wide variety of consumer, mortgage and commercial banking services to retail and business customers, including loans, deposits, treasury management, wealth and online banking. Investors can obtain additional information about the Company and the Bank through reviewing its website at www.community1.com.

http://globenewswire.com/news-release/2014/07/29/654110/10091510/en/CommunityOne-Bancorp-Announces-Fourth-Consecutive-Quarterly-Profit-With-Second-Quarter-2014-Earnings-of-2-8-Million.html

CommunityOne Board Chair resigns to take directorship at First Niagara Financial Group; replaced by J. Chandler Martin, former Bank of America Treasurer (7/01/14)

Charlotte, NC - CommunityOne Bancorp (NASDAQ: COB), Charlotte, North Carolina, announced today that the Chair and lead independent director of its Board of Directors, Austin A. Adams, has resigned. He has been appointed a director at First Niagara Financial Group, and its subsidiary bank, First Niagara Bank, N.A., a $38 billion community oriented bank headquartered in Buffalo, New York and banking law prevents Mr. Austin from serving on two bank boards at the same time. The Board has unanimously elected J. Chandler Martin as Chair of the Board and lead independent director in place of Mr. Adams. Mr. Martin, 63, is the former Treasurer of Bank of America, N.A., Charlotte, North Carolina, where he was responsible for funding, liquidity and interest rate risk management. Prior to that, Mr. Martin was Bank of America’s Enterprise Market and Operational Risk Executive and the risk management executive for Global Corporate and Investment Banking. Mr. Martin has been on the Board of CommunityOne since it was recapitalized in October 2011.

“I have been fortunate to have the opportunity to serve CommunityOne with a great management group and directors during the past three years, as we have overseen the restoration to health and service of this historic banking franchise, positioning it for growth through the coming years,” said Austin Adams. “I leave the Board having accomplished these goals, knowing it is in good hands under the leadership of Chan Martin.”

“The CommunityOne Board has been fortunate to have Austin as its Chair since the recapitalization of the Company,” said Brian Simpson, Chief Executive Officer of CommunityOne. “His experience as the former Chief Information Officer for JP Morgan Chase, and prior to that Banc One Corp. and First Union Corp., has been invaluable to us and we wish Austin the best. We also are fortunate that Chan Martin, a very experienced banker with deep risk management expertise, is on our Board and we are looking forward to Chan’s leadership as the new Board Chair.”

About CommunityOne Bancorp

CommunityOne Bancorp is the North Carolina-based bank holding company for CommunityOne Bank, N.A., a $2 billion community bank, operating 50 branches throughout central, southern and western North Carolina, offering a wide variety of consumer, mortgage and commercial banking services to retail and business customers, including loans, deposits, treasury management, wealth, and online banking. CommunityOne Bancorp’s shares are traded on the NASDAQ stock market under the symbol, “COB.”

http://www.sec.gov/Archives/edgar/data/764811/000076481114000056/pressrelease7114.htm

CommunityOne Bancorp Investor Presentation:

http://www.sec.gov/Archives/edgar/data/764811/000076481114000053/a1q2014kbwinvestorpresen.htm

CommunityOne Bancorp Announces Third Consecutive Quarterly Profit with First Quarter 2014 Earnings of $1.3 Million (4/30/14)

CommunityOne Bancorp ("Company") (Nasdaq:COB), the holding company for CommunityOne Bank, N.A. ("Bank"), today reported its third consecutive profitable quarter. Highlights of the unaudited financial results for the quarter ended March 31, 2014 include:

• The first quarter was the Company's third consecutive profitable quarter.

• Net income before tax in 1Q 2014 was $1.3 million, up 5% from 4Q 2013, and $4.0 million better than 1Q 2013.

• Core earnings were $1.6 million in 1Q 2014, improved from $40 thousand in the same quarter last year.

• Loans held for investment grew $7.5 million in 1Q 2014 at an annualized growth rate of almost 3%. Pass rated performing loans grew $15.0 million in the quarter at a 6% annualized growth rate.

• Deposits grew $19.2 million in 1Q 2014 at a 4% annualized growth rate. Low cost core (non-CD) deposits grew 2% during the quarter, or $28.5 million.

• Positive credit performance continued in 1Q 2014, with net other real estate owned ("OREO") costs of $0.3 million, net charge-offs of $62 thousand and recovery of loan loss provision of $0.7 million. Annualized net charge-offs as a percent of average loans held for investment fell during the quarter to 0.02%, from 0.14% the previous quarter.

• Asset quality also continued to improve as nonperforming assets fell 8% from 4Q 2013 and 50% from 1Q 2013. Non performing assets fell to their lowest levels since the recap and were 2.9% of total assets.

• Noninterest expenses were $5.5 million (21%) lower than 1Q 2013 as a result of OREO reductions and merger synergies. Noninterest expenses were $1.3 million higher than 4Q 2013 on increased personnel, occupancy and OREO expenses.

• Net interest margin declined by 9 basis points to 3.43% from 4Q 2013, but was 23 bps better than 1Q 2013.

"We made solid progress during the quarter in achieving the four key goals we established for 2014," said Brian Simpson, CEO. "Both loan and deposit growth were broad based and slightly ahead of plan, non-interest expenses were down year over year even though we are investing in strategic initiatives, and asset quality improvements were ahead of schedule with nearly no credit cost."

"We are pleased with our performance and continue to see increasing opportunities in all our businesses," said Bob Reid, President. "Our current customer base is beginning to experience growth and we have been successful in converting prospects to new customers. New business pipelines are strong; with our mortgage business continuing to perform well and making the appropriate adjustments to accommodate the shift from high refinance activity to more of a purchase-oriented market."

First Quarter Financial Results

Results of Operations

Net income before tax in the first quarter 2014 was $1.3 million, up 5% from the fourth quarter, and $4.0 million better than the first quarter of 2013. Net income after tax was also $1.3 million for the first quarter of 2014, compared to net income of $2.3 million in the fourth quarter of 2013 and a net loss of $(4.6) million in the first quarter of 2013. Fourth quarter net income after tax included a non-recurring income tax benefit of $1.1 million. Net income per share was $0.06 per share in the first quarter of 2014, compared to net income of $0.11 per share and a net loss of $(0.21) per share in the fourth quarter of 2013 and the first quarter of 2013, respectively. Core earnings of $1.6 million, which exclude taxes, credit costs and provision, and non-recurring income and expenses, were $1.6 million higher than the $40 thousand in the first quarter of 2013, but fell from $3.8 million in the fourth quarter of last year.

First quarter financial results included a $0.7 million recovery of loan loss provision resulting from continued improvement in loss rates and credit quality of the non-purchased impaired loan portfolio and improvements during the first quarter in the cash flow reforecast for the purchased impaired loan portfolio. Offsetting this improvement during the quarter were a $1.0 million reduction in interest income, reflecting a full quarter's impact of reduced loan yields in the purchased impaired portfolio and lower loan yields on new loan originations, and a $1.3 million increase in noninterest expense, primarily personnel related.

Net Interest Income

First quarter net interest income was $15.5 million, an increase of 2% compared to $15.2 million in the same quarter of 2013, and a decrease of 6% compared to $16.5 million in the fourth quarter of 2013. The Company's net interest margin was 3.43% for the first quarter of 2014, decreased from 3.52% in the fourth quarter of 2013, but increased by 7% from 3.20% in the first quarter of last year.

The cost of interest bearing deposits declined again during the first quarter from the previous quarter, by 2 basis points, to 48 basis points. The 9 basis point decline in the net interest margin in the first quarter of 2014 over the fourth quarter was principally the result of a decrease of 10 basis points in loan yield during the quarter driven by new loan origination of primarily commercial loans at lower rates, prepayments on existing higher rate loans, and a $0.4 million reduction in accretion on purchased impaired loans from the cash flow reforecast on this portfolio during the fourth quarter. Loan yields on consumer and mortgage loans were stable during the quarter.

Accretion, net of contractual interest collected, on the purchased impaired loans was $0.9 million and $1.3 million in the first quarter of 2014 and the fourth quarter of 2013, respectively. During the first quarter, our estimated future accretion on this portfolio increased $1.0 million as a result of improvements in the first quarter's quarterly cash flow reforecast.

Asset Quality and Provision for Loan Losses

Nonperforming assets, including nonaccruing loans, loans over 90 days delinquent and still accruing not accounted for under purchased impaired loan accounting, and other real estate owned and repossessed loan collateral, continued to improve and fell to the lowest level since the recapitalization in 2011. These assets fell to $58.6 million, or 2.9% of total assets at the end of the first quarter, compared to $63.6 million, or 3.2% of total assets, at the end of the fourth quarter. Other real estate owned and repossessed loan collateral fell by 13% during the first quarter to $24.6 million, and fell by $21.9 million, or 47%, compared to the same quarter last year. For the first quarter, the Company had net OREO costs of $0.3 million, which included gains on the sale of OREO of $0.4 million.

The allowance for loan losses was $26.0 million, or 2.13% of loans held for investment, at the end of the first quarter, compared to $26.8 million, or 2.21%, at the end of the previous quarter, and $29.6 million, or 2.66%, at the end of the first quarter of last year. Recovery of provision for loan losses was $0.7 million in the first quarter compared to a provision of $1.8 million in the fourth quarter, and a provision of $0.1 million in the first quarter of 2013. A $0.4 million recovery of provision in the non-purchased impaired loan portfolio was recorded as a result of continued improvements in historical loss rates utilized in our allowance for loan loss model, with the remaining $0.3 million recovery of provision related to improvements in the cash flow forecast during the quarter on the purchased impaired loan portfolio. The year to date annualized net charge-off rate declined to 0.02% in the first quarter, compared to 0.14% in the fourth quarter, and 0.26% for the full year 2013.

Noninterest Income

For the first quarter, core noninterest income was $3.9 million, lower by $0.2 million compared to $4.1 million in the previous quarter and $4.2 million in the first quarter a year ago. Noninterest income, excluding gains on sales of securities and mortgage related income, was $3.8 million in the first quarter, compared to $3.4 million, or a 10% increase compared to the first quarter of last year.

Service charges were seasonally lower during the first quarter of 2014, down $0.2 million from the fourth quarter, but were $0.2 million, or 14%, higher than the comparable quarter in 2013. Mortgage loan income was also seasonally lower during the first quarter, down $60 thousand from the fourth quarter. The mortgage loan pipeline was improved at quarter end from year end as we began to enter the traditional home buying season.

Noninterest Expense

Total noninterest expense fell $5.5 million, or 21%, from the comparable quarter in 2013, as a result of reduced levels of OREO and associated expenses, and continued expense synergies as a result of the Bank of Granite merger. Core noninterest expense was $1.5 million, or 8%, lower than $19.3 million in the first quarter a year ago as a result of expense synergies from the Bank of Granite merger and other ongoing cost reduction efforts. Average full time equivalent employees (FTE) were 576, down from 596 in the fourth quarter and 613 in the first quarter of 2013, reductions of 3% and 6%, respectively.

Noninterest expense rose $1.3 million, or 7%, in the first quarter from the prior quarter on increased personnel, occupancy and OREO expenses. The increase this quarter was primarily the result of increases in personnel and benefits expense associated with payroll taxes, increased incentive compensation accruals beginning in the first quarter based on improving financial performance of the Company and the cost of long term equity compensation granted in the fourth quarter of 2013 and the first quarter of 2014. OREO expenses increased $0.2 million during the first quarter based on smaller OREO gains, offset by reduced OREO holding expenses. Core noninterest expense, reflecting the increase in personnel expenses, rose 6% to $17.8 million in the first quarter of 2014, compared to $16.8 million in the preceding quarter.

Balance Sheet Review

Loans held for investment grew almost 1% in the first quarter to $1.22 billion, compared to $1.21 billion at the end of the 2013. Loans held for investment grew at an annualized rate of almost 3% in the first quarter, reflecting improving loan demand and portfolio growth across all our businesses. Pass rated loans grew $15.0 million in the first quarter, an annualized growth rate of 6%. All loan growth in the first quarter was organically generated as there were no loan purchases during the quarter.

Total deposits grew $19.2 million, or 1%, during the first quarter to $1.77 billion, compared to $1.75 billion at the end of 2013. Deposits grew at an annualized rate of 4% in the first quarter. Noninterest bearing deposits grew 9% during the quarter from seasonal lows at the end of the fourth quarter. Higher cost time deposits fell $9.3 million during the quarter, including $3.8 million of high cost brokered CDs, as part of our continuing strategy to reduce deposit costs. Low cost core deposits, consisting of non-CD deposits, grew $28.5 million, or 2%, during the first quarter to $1.19 billion, from $1.17 billion at December 31, 2013, an annualized growth rate of 10%.

Conference Call

A conference call will be held at 11:00 a.m., Eastern time this morning April 30th, 2014. Interested parties should dial in five to ten minutes prior to the scheduled start time to 1-888-317-6016. International callers should dial in to 1-412-317-6016. Canadian callers may dial in to 1-855-669-9657. To join the call, participants will be required to provide conference ID number 10043951. The webcast may be accessed via the Investor Relations section of the Company's website at www.community1.com. The webcast replay will be available until April 30, 2015. The teleconference replay will be available one hour after the end of the conference through July 1, 2014 at 9:00 a.m. Eastern Time. To access the teleconference replay, dial toll free in the U.S. to 1-877-344-7529 or outside the U.S. to 1-412-317-0088 and provide Conference ID Number 10043951.

About CommunityOne Bancorp

CommunityOne Bancorp is the North Carolina-based bank holding company for CommunityOne Bank, N.A., a $2 billion community bank, operating 50 branches throughout North Carolina, offering a wide variety of consumer, mortgage and commercial banking services to retail and business customers, including loans, deposits, cash management, wealth and online banking. Investors can obtain additional information about the Company and the Bank through reviewing its website at www.community1.com.

Non-GAAP Financial Measures

Statements in this press release include certain non-GAAP financial measures, which should be read along with the accompanying tables that provide a reconciliation of these non-GAAP financial measures to the most directly comparable GAAP measures. The non-GAAP financial measures referenced in this press release include: tangible shareholders' equity, core earnings, core noninterest expense, and core noninterest income. The Company believes that these non-GAAP financial measures provide information useful to investors in understanding our underlying performance and business trends as they facilitate comparisons with the performance of others in the financial services industry. However, these non-GAAP financial measures should not be considered an alternative to GAAP, and investors should consider the Company's performance and financial condition as reported under GAAP as well as other relevant information when assessing the overall performance and financial condition of the Company.

CommunityOne Bancorp Investor Presentation (3/05/14)

http://www.sec.gov/Archives/edgar/data/764811/000076481114000005/carolinasfieldtripinvest.htm

CommunityOne Bancorp Announces Continued Profitability With Fourth Quarter 2013 Earnings of $2.3 Million (2/07/14)

CHARLOTTE, N.C., Feb. 7, 2014 (GLOBE NEWSWIRE) -- CommunityOne Bancorp (Nasdaq:COB), the holding company for CommunityOne Bank, N.A. ("Bank"), today reported its second consecutive profitable quarter. Highlights of the unaudited financial results for the year and quarter ended December 31, 2013 include:

•Net income after tax was $2.3 million in 4Q 2013 compared to net income after tax of $4.0 million in 3Q 2013 and a net loss after tax of $(6.3) million in 4Q 2012. For the full year 2013, net loss after tax was $(1.5) million compared to a net loss of $(40.0) million in 2012. Pre tax operating income for 2013 was virtually break even with a $(0.2) million loss.

•For the full year 2013, core earnings, which excludes taxes, credit costs and provision, and non-recurring income and expense items, were $10.4 million, an increase of 111% from 2012. Core earnings were $3.8 million in 4Q 2013, compared to $4.7 million in 3Q 2013 and $2.3 million in 4Q 2012.

•Noninterest expenses declined 23%, or $25.8 million, in 2013 as we realized the cost savings from the merger and the benefit of improved asset quality. Noninterest expenses fell 2% during 4Q 2013 on reduced personnel, occupancy and loan collection expenses.

•Return on average assets was 0.45% and return on average equity was 11.05% for 4Q 2013

•Net interest margin rose 49 bps on a full year basis in 2013 to 3.44%. For 4Q 2013, net interest margin fell by 24 basis points to 3.52%, from 3.76% in 3Q 2013 and 2.96% in 4Q 2012.

•Continued positive credit performance in Q4 2013, including net OREO costs of $21 thousand and non-purchased loan recoveries of $0.7 million.

•Asset quality continued to improve as nonperforming assets fell 19% from 3Q 2013 and 54% from 4Q 2012. Full year net charge-offs as a percent of average loans held for investment fell to 0.26%, from 1.94% in 2012.

•Net provision expense for the quarter of $1.8 million and $0.5 million for the full year 2013. 4Q provision includes $0.9 million recovery of provision for non-Granite purchased impaired loans, offset by $2.7 million of provision on Granite purchased impaired loans caused by a reduction in future cash flow estimates for certain of the loan pools in this portfolio.

•For the Granite purchased impaired loan portfolio as a whole,
estimated future accretion increased by $8.9 million as a result of extension of cash flows in the portfolio.

"We achieved all of the goals we set out for the Company in 2013", said Brian Simpson, CEO. "We completed the merger with the Bank of Granite, returned our Company to satisfactory condition with the lifting of the regulatory orders by the OCC and the Federal Reserve, continued to resolve the legacy credit problems by reducing nonperforming assets by 54% and lowering charge offs to 26 bps of loans, and most importantly, recorded two consecutive quarters of profitability in the third and fourth quarters as we had said we would."

"We are excited about the momentum we built in 2013 and we are already working on our 2014 priorities", said Bob Reid, President. "In 2014 we are focused on growing loans, growing deposits, investing in key businesses and capabilities, like cash management and mobile banking, all while continuing to reduce expenses, and resolving our remaining problem assets. Serving our customers and achieving our goals in 2014 will position us well for future expansion."

Fourth Quarter and Full Year 2013 Financial Results

Results of Operations

Net income was $2.3 million for the fourth quarter of 2013, compared to net income of $4.0 million in the third quarter of 2013 and a net loss of $(6.3) million in the fourth quarter of 2012. Net income available to common shareholders was also $2.3 million, or $0.11 per common share, in the fourth quarter of 2013 compared to net income of $4.0 million, or $0.18 per common share, and a net loss of $(6.3) million, or $(0.29) per common share, in the third quarter of 2013 and the fourth quarter of 2012, respectively. Core earnings, which exclude taxes, credit costs and provision, and non-recurring income and expenses, fell to $3.8 million in the fourth quarter, from $4.7 million in the third quarter of this year, but was $1.3 million higher than the $2.3 million in the fourth quarter of 2012.

Fourth quarter financial results were primarily impacted by $1.8 million in provision expense. A recovery of provision of $0.9 million on non-Granite purchased impaired loans, which was offset by a $2.7 million provision on Granite purchased impaired loans due to a reduction in forecasted future cash flow in certain pools in this portfolio.

Net loss after tax was $(1.5) million in 2013, compared to a net loss of $(40.0) million in 2012. Net loss available to common shareholders was also $(1.5) million, or $(0.07) per common share, in 2013 compared to a loss of ($40.0) million, or $(1.87) per common share, in 2012. Core earnings, which exclude taxes, credit costs and provision, and non-recurring income and expenses, increased to $10.4 million in 2013, from $4.9 million in 2012.

The improved financial performance in 2013 was driven by a $3.2 million increase in net interest income as a result of $6 million decline in the cost of deposits, offset by an $83 million decline in average loan balances, primarily related to problem asset resolution. In addition, noninterest expense declined by $25.8 million during 2013 as the result of improvements in asset quality and the completion of the merger of Bank of Granite into CommunityOne Bank in June of 2013.

Net Interest Income

Net interest income was $64.4 million for the full year 2013, an increase of 5% compared to $61.3 million in 2012. The Company's net interest margin was 3.44% in 2013, increased by 17% from 2.95% in 2012.

The 49 basis point increase in the net interest margin in 2013 over 2012 was the result of a 26 bp decrease in the cost of interest bearing deposits from 2012 to 53 basis points, and a decline in the average deposits of $218 million between 2012 and 2013. Average yield on earning assets was stable from 2012 to 2013, falling 1 bp to 4.00%.

Fourth quarter 2013 net interest income was $16.5 million, a decrease of 5% compared to $17.4 million in the third quarter, and an increase of 11% compared to $14.8 million in the same quarter of 2012. The Company's net interest margin was 3.52% for the fourth quarter of 2013, decreased by 6% from 3.76% in the third quarter of 2013, and increased by 19% from 2.96% in the fourth quarter of last year.

The cost of interest bearing deposits also continued to decline during the fourth quarter from the previous quarter, by 1 bp, to 50 basis points, from the third quarter of 2013. The 24 basis point decline in the net interest margin in the fourth quarter of 2013 over the third quarter was principally the result of a decrease of $0.7 million in accretion on Granite purchased loans as a result of the cash flow reforecast on this portfolio during the quarter.

Accretion, net of contractual interest collected, on Granite purchased impaired loans was $5.7 million and $4.9 million in 2013 and 2012, respectively. Accretion, net of contractual interest collected, on these loans was $1.3 million, $2.0 million and $1.4 million in the fourth quarter of 2013, the third quarter of 2013 and the fourth quarter of 2012, respectively. During the quarter, our estimated future accretion on this portfolio increased $8.9 million as a result of extension of cash flows in this portfolio.

Asset Quality and Provision for Loan Losses

Nonperforming assets, including nonaccruing loans, loans over 90 days delinquent and still accruing not accounted for under purchased impaired loan accounting, and other real estate owned and repossessed loan collateral, fell to $65.3 million, or 3.3% of total assets at the end of 2013, compared to $142.6 million, or 6.6% of total assets, in 2012. Other real estate owned and repossessed loan collateral fell by 54% during 2013 to $28.4 million at year end, compared to $63.1 million at the end of 2012.

The allowance for loan losses was $26.8 million, or 2.21% of loans held for investment, at the end of the fourth quarter of 2013, compared to $25.4 million, or 2.12%, at the end of the previous quarter, and $29.3 million, or 2.49%, at the end of the fourth quarter of 2012. The year to date annualized loss rate declined to 0.26% in 2013, compared to 1.94% in 2012.

Provision for loan losses was $0.5 million in 2013 compared to $14.0 million in 2012 as asset quality improved.

Provision for loan losses was $1.8 million in the fourth quarter of 2013 compared to a recovery of $0.4 million in the previous quarter, and a provision of $3.2 million in the fourth quarter of 2012. A $0.9 million recovery of provision in the non-Granite purchased impaired loan portfolio was recorded as a result of continued improvements in historical loss rates utilized in our allowance for loan loss model. This recovery was offset by the $2.7 million provision on Granite purchased impaired loans discussed previously. The fourth quarter annualized charge off rate for average loans held for investment was 0.14%, compared to an annualized recovery rate of 0.22% during the third quarter of 2013.

Other real estate owned and repossessed loan collateral fell by 14% during the quarter to $28.4 million at quarter-end, compared to $33.2 million in the previous quarter. For the fourth quarter of 2013 the Company had net OREO costs of $21 thousand, which included gains on the sale of OREO, net of writedowns, of $0.5 million.

Noninterest Income

Core noninterest income, which excludes non-recurring securities gains and losses, was almost unchanged in 2013, falling by $0.3 million to $17.6 million, compared to $17.9 million in 2012. Increases of $0.3 million in mortgage loan income and $0.3 million in trust and investment services were offset by $0.4 million decline in service charges, mostly as a result of service charges waived during the bank merger in June, and a $0.5 million decrease in income from other investments in 2013.

For the fourth quarter, core noninterest income fell $0.3 million to $4.1 million, compared to $4.4 million in the previous quarter and $4.8 million in the fourth quarter a year ago. A decrease in the mortgage loan pipeline and sales of mortgage loans to Fannie Mae contributed to a $0.2 million decrease in mortgage loan income from last quarter, and $0.8 million from the fourth quarter of 2012.

Noninterest Expense

Total noninterest expense fell $25.8 million, or 23%, from 2012 on reduced OREO and professional fees. Core noninterest expense fell by 3%, or $2.6 million, to $71.7 million in 2013, compared to $74.3million in 2012.

Total noninterest expense fell $0.4 million, or 2%, in the fourth quarter from the prior quarter on reduced personnel, occupancy and loan collection related expenses. Core noninterest expense fell 2% to $16.8 million in the fourth quarter of 2013, compared to $17.1 million in the preceding quarter and $17.4 million in the fourth quarter a year ago. The decrease this quarter of $0.3 million was primarily the result of reductions in personnel and occupancy expense synergies as a result of the Bank of Granite merger, as well as reduced loan collection expenses associated with reduced levels of problem assets.

Balance Sheet Review

Loans held for investment grew 3% in 2013 to $1.21 billion, compared to $1.18 billion at the end of the 2012. Loans held for investment grew at an annualized rate of 6% in the fourth quarter, reflecting improving loan demand, an additional residential mortgage loan pool purchase of $23 million during the quarter and an improving portfolio in terms of credit quality.

Total deposits fell $158.3 million, or 8%, during 2013 to $1.75 billion, compared to $1.91 billion at the end of 2012. Higher cost time deposits fell $180.9 million as part of our strategy to reduce deposit costs. Low cost core deposits, consisting of non-CD deposits, grew $22.6 million during 2013 to $1.17 billion, from $1.14 billion at December 31, 2012.

Conference Call

A conference call will be held at 11:00 a.m., Eastern time this morning February 7th, 2014. Interested parties should dial in five to ten minutes prior to the scheduled start time to 1-888-317-6016. International callers should dial in to 1-412-317-6016. Canadian callers may dial in to 1-855-669-9657. To join the call, participants will be required to provide conference ID number 10039109. The webcast may be accessed via the Investor Relations section of the Company's website at www.community1.com. The webcast replay will be available until February 7, 2015. The teleconference replay will be available one hour after the end of the conference through March 10, 2014 at 9:00 a.m. Eastern Time. To access the teleconference replay, dial toll free in the U.S. to 1-877-344-7529 or outside the U.S. to 1-412-317-0088 and provide Conference ID Number 10039109.

About CommunityOne Bancorp

CommunityOne Bancorp is the North Carolina-based bank holding company for CommunityOne Bank, N.A., a $2 billion community bank, operating 53 branches in 42 communities throughout central, southern and western North Carolina, offering a wide variety of consumer, mortgage and commercial banking services to retail and business customers, including loans, deposits, cash management, wealth and online banking. Investors can obtain additional information about the Company and the Bank through reviewing its website at www.community1.com.

http://www.globenewswire.com/news-release/2014/02/07/608493/10067453/en/CommunityOne-Bancorp-Announces-Continued-Profitability-With-Fourth-Quarter-2013-Earnings-of-2-3-Million.html

Anticipated it to be a hidden asset - one I refused to abandon despite trading below $6 per share last May.

Why?

Private Equity is your best friend when it comes to banks. While most infusions may seem overpriced to the untrained eye, overcapitalization allows the bank to add-on without having to go back to the well.

Consolidation is coming soon to your neighborhood.

BNCN is a very active player, having now made ten acquistions. The bank's market value has increased from $14.56 to $16.89 since its last deal was announced.

You ask, "Well how does this impact COB?". COB is up just slightly over 10 percent over the same period of time ($11.74 to $12.93).

The race is one to create a new regional bank based in North Carolina.

CommunityOne Bancorp: A Hidden Asset In Abandoned Stock (12/19/13)

http://seekingalpha.com/article/1908731-communityone-bancorp-a-hidden-asset-in-abandoned-stock

Probably in response to the favorable seeking alpha article.

Marker: Dec. 20, 2013


Communityone Bancorp (COB)
$12.24 up 0.69 ( 5.97% )
Volume: 15,983

I'm having trouble estimating a much higher fair value for the bank - what am I missing? Nothing actually...your eyes don't deceive you. COB's price is more than a "slight" premium to BV. I had a hard time grasping the situation too. So why is the bank doing so relatively well despite its bloated P/B? I'd like to hear EI chime in on this but I'll give you my thoughts. I think size and strength matters more than our calculators can reveal to us right now. COB went from $1.5B in assets to over $2B in one year...so I should expect to see some temporary imbalances. Banks in that size range that are well capitalized, under no Consent Orders, no TARP...and are profitable again are commanding (and getting) a much higher P/B. On average banks in the $1B ~ $5B asset range sell at 144.6% Price/Tangible Book. COB is even higher but they're not alone. So far so good ...and one other factor that needs to be considered is the involvement and commitment of Carlyle and Oak Hill Capital ....they each hold approximately 23%. Current shareholders would be following some very smart money in those 2 groups. That doesn't always produce good results but this is a bank we're talking about so it does assuage some of my anxious thoughts. lol.

This bank will succeed...they turned the "corner" in the 3rd quarter of 2013. Ask me the same question this time next year ;)

I'm having trouble estimating a much higher fair value for the bank - what am I missing?

Market cap ~ $240mm
Assets - $2.04b
Shareholder's equity - $81mm
FHLB advances + sub-debt - $130mm
Run rate annualized earnings ~ $18mm

DTA valuation allowance that will be reversed and added to equity at some point - $152mm

It looks to me like the price is a slight premium to book value upon the expected reversal, giving us a bank with equity over 11% of assets, and ROE of 7.5-8%.

As an aside, I found a good primer on valuation allowance reversals: http://www.mossadams.com/mossadams/media/Documents/Publications/MA%20Now/MA-Now_FSG_Jan2012.pdf

As of 5/20/2013 the PPS is $8.59. This represents an even deeper discount of 47% under Carlyle & Oak Hills' buy-in price of $16. As of Nov. 8, 2013 the pps closed today @ $11.10. The discount to the Carlyle & Oak Hill buy-in price of $16 still exists and currently sits at an attractive 31%.

In case someone is wondering why Carlyle and Oak Hill don't buy more shares at a significant discount to average down their costs the answer is they simply cannot buy more shares. why not? Because they currently own 49.8% of the company. If they buy more and exceed 50% ownership the company would have a change in ownership event... and thereby lose significant and valuable NOLCF's.

Federal Reserve Bank of Richmond terminates Written Agreement with CommunityOne Bancorp (11/05/13)

http://www.sec.gov/Archives/edgar/data/764811/000076481113000068/a8kforterminationofdpa.htm

Following the gut pays off again.

I paid $10.24 per share back on 3/04/13. Added more shares on 8/13/13 at $8.21, resulting in an average cost of $9.66.

The turnaround may have taken a little longer than I expected, but these results are more than solid.

Third Quarter 2013 Earnings Presentation:

http://www.sec.gov/Archives/edgar/data/764811/000076481113000066/a3q13earningspresentatio.htm

Tangible Book Value is $3.79.

CommunityOne Bancorp Announces Return to Profitability With Net Income of $4.0 million in the Third Quarter of 2013 (10/31/13)

CHARLOTTE, N.C., Oct. 31, 2013 (GLOBE NEWSWIRE) -- CommunityOne Bancorp (Nasdaq:COB), the holding company for CommunityOne Bank, N.A. ("Bank"), today reported unaudited financial results for the quarter ended September 30, 2013. Highlights for the third quarter of 2013 include:

•Net income was $4.0 million in 3Q 2013 compared to net losses of $(3.2) million in 2Q 2013 and $(4.7) million in 3Q 2012. This was the first quarter of operating profitability since the recapitalization in October of 2011 and the first for the Company since 2Q 2008.

•Core earnings, which excludes taxes, credit costs and provision, and non-recurring income and expense items, rose 158% to $4.7 million in 3Q 2013, compared to $1.8 million in 2Q 2013 and $0.9 million in 3Q 2012.

•Return on average assets was 0.79% and return on average equity was 21% for the quarter

•Net interest margin increased by 49 basis points to 3.76% in 3Q 2013, from 3.27% in 2Q 2013 and 2.95% in 3Q 2012.

•Noninterest expenses fell 27% from 2Q 2013 on reduced OREO, personnel and occupancy expenses. Core noninterest expenses, which excludes credit and non-recurring items, fell $1.4 million, or 7%, from 2Q 2013 and, $1.8 million, or 10%, from 3Q 2012.

•Positive credit performance in Q3 2013 with recovery of loan losses of $0.4 million, OREO recoveries net of expenses of $0.1 million and net recovery of charge-offs of $0.7 million.

•Asset quality continued to improve as nonperforming assets fell 11% from 2Q 2013 and 49% from 3Q 2012. 2013 year to date annualized net charge-offs fell to 0.31%, from 0.59% in the prior quarter.

•US Department of Justice terminated the Deferred Prosecution Agreement relating to the Bank's Bank Secrecy Act/Anti-Money Laundering program and the related case against the Bank that was pending in the U.S. District Court for the Western District of NC was dismissed.

"Obviously we are very pleased with our return to profitability," said Brian Simpson, CEO. "This quarter marks an inflection point for our Company and reflects the progress we have made over the past 2 years in reducing problem assets, merging and integrating Bank of Granite into CommunityOne and implementing operational improvements throughout the organization."

"With our return to financial health," said Bob Reid, President, "we have been able to fully engage in our markets, capitalize on new opportunities with our existing customer base and attract new customers to our Company."

Third Quarter 2013 Financial Results

Results of Operations

Net income was $4.0 million for the third quarter of 2013, compared to net losses of $(3.2) million in the second quarter of 2013 and $(4.7) million in the third quarter of 2012. Net income available to common shareholders was also $4.0 million, or $0.18 per common share, in the third quarter of 2013 compared to losses of ($3.2) million, or $(0.15) per common share, and $(4.7) million, or $(0.22) per common share, in the second quarter of 2013 and the third quarter of 2012, respectively. Core earnings, which exclude taxes, credit costs and provision, and non-recurring income and expenses, increased to $4.7 million in the third quarter, from $1.8 million in the second quarter of this year and $0.9 million in the third quarter of 2012. The improved financial performance in the third quarter was driven by a $2.0 million increase in net interest income as a result of increases in average loan and securities balances, continued reductions in the cost of deposits and an increase in the accretion of purchase accounting marks stemming from improved cash flow estimates in the Purchased Impaired loan portfolio. In addition, noninterest expense declined by $6.7 million during the quarter as the result of improvements in asset quality and the completion of the merger of Bank of Granite into CommunityOne Bank in June of this year.

Net Interest Income

Third quarter 2013 net interest income was $17.4 million, an increase of 13% compared to $15.4 million in the preceding quarter, and an increase of 14% compared to $15.2 million in the same quarter of 2012. The Company's net interest margin was 3.76% for the third quarter of 2013, increased by 15% from 3.27% in the second quarter of 2013, and by 27% from 2.95% in the third quarter of last year.

The 49 basis point increase in the net interest margin in the third quarter of 2013 over the second quarter was the result of an increase of $91.8 million in average loans and investment securities and a reduction of $148.5 million in lower yielding cash balances, that combined drove a 44 basis point increase in the average yield on earning assets. The cost of interest bearing deposits also continued to decline during the third quarter from the previous quarter, to 51 basis points, and the total cost of interest-bearing liabilities fell by 4 basis points, to 61 basis points, from the third quarter of 2013.

Net accretion of purchase accounting marks on loans and deposits acquired in the merger with Bank of Granite was $2.2 million, $2.0 million and $1.4 million in the third quarter of 2013, the second quarter of 2013 and the third quarter of 2012, respectively.

Provision for Loan Losses and Asset Quality

Provision for loan losses was a recovery of $0.4 million in the third quarter of 2013 compared to a recovery of $1.1 million in the previous quarter, and a provision of $32 thousand in the third quarter of 2012.

The allowance for loan losses was $25.4 million, or 2.12% of loans held for investment at the end of the third quarter of 2013, compared to $25.1 million, or 2.11%, at the end of the previous quarter, and $30.9 million, or 2.51%, at the end of the third quarter of 2012. The recovery of provision in the third quarter was the result of continued improvements in credit quality and improved loss experience. The year to date annualized loss rate declined to 0.31% through the third quarter of 2013, compared to 0.59% through the second quarter of 2013 and 2.06% through the third quarter of 2012. For the third quarter of 2013, the Company had net loan recoveries of $0.7 million.

Nonperforming assets, including nonaccruing loans, loans over 90 days delinquent and still accruing not accounted for under Purchase Impaired Loan accounting, and other real estate owned and repossessed loan collateral, fell to $84.4 million, or 4.1% of total assets at the end of the third quarter, compared to $94.8 million, or 4.7% of total assets, last quarter and $167.0 million, or 7.5% of total assets, at the end of the third quarter of 2012. Other real estate owned and repossessed loan collateral fell by 7% during the quarter to $33.2 million at quarter-end, compared to $35.8 million in the previous quarter, and fell by 59% from $80.8 million at the end of the third quarter of 2012. For the third quarter of 2013 the Company had gain on sale / recoveries on OREO, net of OREO expenses, of $0.1 million.

Noninterest Income

Core noninterest income, which excludes non-recurring securities gains and losses, fell $0.5 million to $4.4 million in the third quarter of 2013, compared to $4.9 million in the previous quarter and $4.7 million in the third quarter a year ago. A decrease in the mortgage loan pipeline and sales of mortgage loans to Fannie Mae contributed to a $0.5 million decrease in mortgage loan income from last quarter, and $0.3 million from the third quarter of 2012. Service charges grew by 11% in the third quarter of 2013 compared to the prior quarter, as the second quarter included the impact of service charge waivers associated with the Bank of Granite merger and the third quarter of 2013 included a full quarter of the positive impact of revised product and fee schedules implemented during the Granite merger.

Noninterest Expense

Total noninterest expense fell $6.7 million, or 27%, from the prior quarter on reduced OREO, personnel and occupancy expenses. Core noninterest expense fell 7% to $17.1 million in the third quarter of 2013, compared to $18.5 million in the preceding quarter and $18.9 million in the third quarter a year ago. The decrease this quarter of $1.4 million was primarily the result of reductions in personnel and occupancy expense synergies as a result of the Bank of Granite merger.

Balance Sheet Review

Loans held for investment grew at an annualized rate of 2% in the third quarter to $1.20 billion, compared to $1.19 billion at the end of the second quarter, and $1.23 billion at the end of the third quarter last year.

Total deposits fell $20.9 million, or 1%, during the third quarter to $1.79 billion, compared to $1.81 billion at the end of last quarter, and $1.98 billion at the end of the third quarter last year. The decline in the third quarter of this year was primarily the result of the maturity of $18.0 million of higher cost brokered CDs. Low cost core deposits, consisting of non-CD deposits, grew 2% during the third quarter to $1.18 billion, from $1.16 billion at June 30, 2013 and $1.15 billion at September 30, 2012.

Regulatory Matters

During the third quarter, the U.S. Department of Justice terminated its deferred prosecution agreement with the Bank relating to the Bank's Bank Secrecy Act/Anti-Money Laundering program at the same time as the U.S. District Court for the Western District of North Carolina dismissed the United States' case against the Bank.

Conference Call

A conference call will be held at 11:00 a.m., Eastern time this morning October 31st , 2013. Interested parties should dial in five to ten minutes prior to the scheduled start time to 1-888-317-6016. International callers should dial in to 1-412-317-6016. Canadian callers may dial in to 1-855-669-9657. To join the call, participants will be required to provide conference ID number 10035405. The webcast may be accessed via the Investor Relations section of the Company's website at www.community1.com. The webcast replay will be available until October 31, 2014. The teleconference replay will be available one hour after the end of the conference through December 2, 2013 at 9:00 a.m. Eastern Time. To access the teleconference replay, dial toll free in the U.S. to 1-877-344-7529 or outside the U.S. to 1-412-317-0088 and provide Conference ID Number 10035405.

About CommunityOne Bancorp

CommunityOne Bancorp is the North Carolina-based bank holding company for CommunityOne Bank, N.A. , a $2 billion community bank, operating 53 branches in 42 communities throughout central, southern and western North Carolina, offering a wide variety of consumer, mortgage and commercial banking services to retail and business customers, including loans, deposits, cash management, wealth and online banking. Investors can obtain additional information about the Company and the Bank through reviewing its website at www.community1.com.

http://www.nasdaq.com/press-release/communityone-bancorp-announces-return-to-profitability-with-net-income-of-40-million-in-the-third-quarter-of-2013-20131031-00831

...guilty as charged and I was wrong. Good Luck xrymd!

Ponzi Case Against CommunityOne in N.C. Dismissed (9/30/13)

CommunityOne Bancorp (COB) in Charlotte, N.C., has been freed from the threat of prosecution for allegedly ignoring a $40 million Ponzi scheme run by a customer.

A U.S. District Court in North Carolina dismissed a case alleging that CommunityOne's banking unit permitted the scheme to be operated through accounts at the bank, CommunityOne announced Monday. A deferred-prosecution agreement that CommunityOne entered with the U.S attorney was also terminated.

The $2 billion-asset CommunityOne entered the deferred-prosecution agreement in October 2011 as part of a recapitalization deal. The company agreed to overhaul its anti-money laundering and Bank Secrecy Act programs as part of the agreement. Prosecutors said CommunityOne failed to file suspicious-activity reports on the customer's transactions.

CommunityOne also paid $400,000 in restitution to victims of the alleged Ponzi scheme, the Department of Justice said in 2011. The operator of the alleged Ponzi scheme, Keith Franklin Simmons, deposited more than $35 million in his investors' funds an account held at CommunityOne over more than two years, prosecutors claimed. In 2010, a jury convicted Simmons of securities fraud, wire fraud and money laundering.

The private-equity firms Carlyle Group and Oak Hill Capital partners led CommunityOne's $310 million recapitalization in 2011, allowing it to purchase the struggling bank of Granite. The deferred-prosecution agreement was a condition of the two banks' merger.

CommunityOne said last month that it would turn a profit in the third-quarter, after losing $276 million since 2010. The company changed its name from FNB this past summer.

http://www.americanbanker.com/issues/178_189/ponzi-case-against-communityone-in-n-c-dismissed-1062486-1.html

FNB United Announces Name Change and New Stock Symbol (6/28/13)

ASHEBORO, N.C., June 28, 2013 (GLOBE NEWSWIRE) -- FNB United Corp. (the "Company") (Nasdaq:FNBN), announced that, effective July 1, 2013, its name will be CommunityOne Bancorp and its stock symbol will change from "FNBN" to "COB." The change in name had been approved by the shareholders at its annual meeting of shareholders held on June 20, 2013.

"We are pleased that our shareholders overwhelmingly approved our name change to CommunityOne Bancorp," said Brian Simpson, Chief Executive Officer of the Company. "Along with the change in stock symbol to "COB," we now will have one brand to market to all of our stakeholders – whether they are our shareholders, customers or the public."

"Having one name in the market reduces confusion," added Bob Reid, President of the Company. "We will now operate under a unified name and brand that focuses on communities and pledges to our customers that serving their financial lives is our number one priority."

About FNB United Corp.

FNB United Corp. (CommunityOne Bancorp as of July 1, 2013) is the North Carolina-based bank holding company for CommunityOne Bank, N.A. (community1.com), which offers a full range of consumer, mortgage and business banking services, including loan, deposit, cash management, wealth and online banking services through 55 branches in 44 communities throughout the central, southern and western regions of the state.

Caution About Forward-looking Statements

Certain statements made in this press release may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements that include projections, predictions, expectations, or beliefs about events or results or otherwise are not statements of historical facts, such as statements about the Company's board or its structure. Although the Company believes that its expectations with respect to such forward-looking statements are based upon reasonable assumptions within the bounds of its existing knowledge of its business and operations, there can be no assurance that actual results, performance or achievements of the Company will not differ materially from those expressed or implied by such forward-looking statements. Factors could cause actual events or results to differ significantly from those described in the forward-looking statements include, but are not limited to those described in the cautionary language included under the headings "Risk Factors" and in other sections of the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2012, its quarterly reports on Form 10-Q, and other filings made with the SEC.

For more information:
Pam Cranford, 336.626.8300

http://www.globenewswire.com/news-release/2013/06/28/557168/10038064/en/FNB-United-Announces-Name-Change-and-New-Stock-Symbol.html

Shareholders approve name change to CommunityOne Bancorp.

CommunityOne Bank Announces Completion of Merger With Bank of Granite and Termination of Consent Order (6/10/13)

ASHEBORO, N.C., June 10, 2013 (GLOBE NEWSWIRE) -- CommunityOne Bank, N.A., the principal bank subsidiary of FNB United Corp. (the "Company") (Nasdaq:FNBN), announced today that it had completed the merger of its sister bank, Bank of Granite, into CommunityOne on June 8, 2013. In addition, CommunityOne's Consent Order with the Office of the Comptroller of the Currency ("OCC"), which was issued on July 22, 2010, has been terminated. With the termination of the Order, CommunityOne is now considered "well capitalized" for purposes of the Federal Deposit Insurance Act.

"We are excited that the merger is complete," said Brian Simpson, Chief Executive Officer of the Company. "This transaction was the last step in our goal to successfully integrate CommunityOne and Granite, and is critical to our return to profitability during the second half of the year. We are also pleased that the OCC terminated the Consent Order. This action is confirmation that we are improving our financial condition and positioning our franchise to better serve our customers throughout our footprint."

"The merger gives our customers full access to an expanded network of 55 branches and 58 ATMs throughout central, southern and western North Carolina, including Charlotte," added Bob Reid, President of the Company. "We are pleased that we can now be a unified presence under one brand."

Founded in 1907 in Asheboro, CommunityOne Bank is the third largest community bank in North Carolina, operating 55 branches in 44 communities throughout the central, southern, and western regions of the state.

About FNB United Corp.

FNB United Corp. is the North Carolina-based bank holding company for CommunityOne Bank, N.A. (community1.com), which offers a full range of consumer, mortgage and business banking services, including loan, deposit, cash management, wealth and online banking services.

Caution About Forward-looking Statements

Certain statements made in this press release may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements that include projections, predictions, expectations, or beliefs about events or results or otherwise are not statements of historical facts, such as statements about the Company's board or its structure. Although the Company believes that its expectations with respect to such forward-looking statements are based upon reasonable assumptions within the bounds of its existing knowledge of its business and operations, there can be no assurance that actual results, performance or achievements of the Company will not differ materially from those expressed or implied by such forward-looking statements. Factors could cause actual events or results to differ significantly from those described in the forward-looking statements include, but are not limited to those described in the cautionary language included under the headings "Risk Factors" and in other sections of the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2012, its quarterly reports on Form 10-Q, and other filings made with the SEC.
CONTACT: For more information:
Pam Cranford, 336.626.8300
investorrelations@community1.com
Source: FNB United Corp.

http://www.nasdaq.com/article/communityone-bank-announces-completion-of-merger-with-bank-of-granite-and-termination-of-consent-order-20130610-00384

CommunityOne Bank Announces Receipt of Regulatory Approval for Merger With Bank of Granite (5/21/13)

ASHEBORO, N.C., May 21, 2013 (GLOBE NEWSWIRE) -- CommunityOne Bank, N.A., the principal bank subsidiary of FNB United Corp. (the "Company") (Nasdaq:FNBN), announced today that it had received approval from the Office of the Comptroller of the Currency for the merger of its sister bank, Bank of Granite, into CommunityOne. The bank merger is scheduled to be consummated on June 8, 2013.

"We are pleased with the OCC's action to approve the bank merger," said Brian Simpson, Chief Executive Officer of the Company. "Completion of the merger allows us to better serve our customers throughout our footprint, and is critical to our return to profitability during the second half of 2013. After the merger, Bank of Granite and CommunityOne customers will have full access to an expanded network of 53 branches and 59 ATMs throughout central, southern and western North Carolina."

"The merger also gives CommunityOne a presence in Charlotte, NC which is clearly an attractive growth market for our company," added Bob Reid, President of the Company. "We have a team of experienced bankers there who possess local knowledge and expertise to meet the financial needs of our customers."

Founded in 1906 in Granite Falls, North Carolina, Bank of Granite's last day of operation will be on Friday, June 7, 2013. Beginning on Monday, June 10, all of the Company's branches will operate as branches of CommunityOne.

Caution About Forward-looking Statements

Certain statements made in this press release may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements that include projections, predictions, expectations, or beliefs about events or results or otherwise are not statements of historical facts, such as statements about the Company's board or its structure. Although the Company believes that its expectations with respect to such forward-looking statements are based upon reasonable assumptions within the bounds of its existing knowledge of its business and operations, there can be no assurance that actual results, performance or achievements of the Company will not differ materially from those expressed or implied by such forward-looking statements. Factors could cause actual events or results to differ significantly from those described in the forward-looking statements include, but are not limited to those described in the cautionary language included under the headings "Risk Factors" and in other sections of the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2012, its quarterly reports on Form 10-Q, and other filings made with the SEC.

About FNB United Corp.

FNB United Corp. is the North Carolina-based bank holding company for two historic community banks, CommunityOne Bank, N.A. (community1.com) and Bank of Granite (bankofgranite.com). Founded in 1907, CommunityOne operates 44 branches in 37 communities throughout central, southern and western North Carolina. Founded in 1906, Bank of Granite operates 17 branches in western North Carolina. Through its banking subsidiaries, FNB United offers a full range of consumer, mortgage and business banking services, including loan, deposit, cash management, wealth and online banking services.
Pam Cranford, 336.626.8300

http://www.globenewswire.com/news-release/2013/05/21/548839/10033664/en/CommunityOne-Bank-Announces-Receipt-of-Regulatory-Approval-for-Merger-With-Bank-of-Granite.html

I kept buying with the last puchase at 6.25 so I am actually just into the green with 8000 shares. The 4 recent insider buys at 6 bucks were the really nice. The stock rebounded after that.

Sorry I must have jinxed the stock price. Any thoughts on the 40% drop over the last month? No jinx xrymd. Tough call but FNBN is currently suffering the same problem simular banks are experiencing and that is - It's hasn't been discovered....its an unknown opportunity.

When the bulk of investors out there think of getting into a bank they only think of the big 5.

But the good news is at some point that won't always be the case ...it will get discovered ...and you'll see it take off.

Until then - It's "on sale".

That was one year ago...the discount now sits at an irresistible 36% to Carlyle & Oak Hills' buy-in price of $16. As of 5/20/2013 the PPS is $8.59. This represents an even deeper discount of 47% under Carlyle & Oak Hills' buy-in price of $16.

FNBN expects to return to profittability in the 2nd half of 2013.

FNB United Corp. Reports 2013 First Quarter Net Loss Of $4.6 Million, Or $.21 Per Share (5/17/13)

http://www.snl.com/Cache/1500049503.PDF?Y=&O=PDF&D=&FID=1500049503&T=&IID=100805

Anticipates return to profitability in the second half of 2013.

Anyone notice 4 insider purchases last week? Stock bumped a bit the last few days. The long slide may be over.

Sorry I must have jinxed the stock price. Any thoughts on the 40% drop over the last month?

Added 1k shares today at 7.86. GLTA. Does anyone think the selling is from the companies shelf?

Added 2000 shares at 9.44. GLTA

New postion 2000 shares at 9.56 today. GLTA,

FNBN Goals for 2013

Looking forward to 2013, we have four key objectives for our company: (1) successfully complete the merger of CommunityOne and Granite during the second quarter of 2013, (2) continue to reduce problem asset levels and increase asset quality, (3) return the company to profitability in the second half of 2013, and (4) continue efforts to restore FNB and its subsidiaries to a satisfactory condition.

On March 1, 2013, we filed an application with the OCC to merge Granite into CommunityOne. Subject to regulatory approval, we expect to complete the merger during the second quarter of 2013. Merger of the two banks will enable us to consolidate overlapping branches and ATM networks, complete the consolidation of operational functions, implement the CommunityOne product set at Granite, and complete the merger related expense generating activities, all of which we expect to deliver expense synergies in the third quarter of 2013. The bank merger also will allow us to better serve customers throughout our footprint.

We will continue to focus significant resources on the resolution of nonperforming assets during 2013 in order to further reduce the level of these assets.

The achievement of the first two goals, along with other strategies to increase net interest margin, increase noninterest income and reduce noninterest expense, we expect will enable us to return to profitability in the second half of 2013. We plan to continue to increase our net interest margin in 2013, primarily through the continued prudent deployment of excess cash positions into higher yielding loans and securities, continued reductions in nonperforming assets and additional reductions in the cost of interest-bearing deposits via down-pricing and relationship focus. During 2013, we expect to further grow our mortgage banking activities from the $168.1 million we originated in 2012. In addition to the noninterest expense reductions as a result of the merger and associated branch and operational consolidation, we have initiated a program to reduce other noninterest expenses primarily through vendor management activities which we expect to contribute to profitability in the second half of 2013.

We also expect to continue our progress to restore FNB and its subsidiaries to a satisfactory condition. In this connection, the FDIC has terminated the Granite Order, effective February 27, 2013, and while Granite is continuing to adhere to regulatory requirements relating to, among other things, maintaining minimum capital levels, continuing reduction of classified assets, improving asset quality and enhancing bank operations that continue to warrant improvement, we believe that this action acknowledges the progress we are making in this regard. CommunityOne is expected to continue to adhere to the policies, procedures and processes it has put in place to comply with the CommunityOne Order and it is our expectation that the bank merger will facilitate that compliance by, among other things, increasing CommunityOne's capital and earnings capacity and reducing operational risk through consolidation of operations, functions and processes.

http://www.sec.gov/Archives/edgar/data/764811/000076481113000006/fnbn20121231-10k.htm

Discount was too good to pass up.

TARP eliminated as part of recapitalization.

Concurrently with the Private Placement, the 51,500 shares TARP Preferred held by the UST and all accrued and unpaid dividends were exchanged for 1,085,554 shares of common stock and the warrant was amended to purchase 22,072 common shares at an exercise price of $16.00 per share.

Top Institutional Holders

Holder-------------------------------------------------- Shares------------ % Out------ Value*------------- Reported

Waterstone Capital Management, L.P.--------- 1,051,764---------- 4.87 ------$12,200,462------- Dec 31, 2012
Oak Hill Capital Management, LLC-------------- 4,930,314-------- 22.84------ $57,191,642------- Dec 31, 2012
Carlyle Group L.P.----------------------------------- 4,930,313--------- 22.84------$57,191,630------- Dec 31, 2012
NS Advisors, LLC--------------------------------------- 525,770---------- 2.44--------$6,098,932------- Dec 31, 2012
Vanguard Group, Inc. (The)-------------------------- 490,051-----------2.27--------$5,684,591------- Dec 31, 2012
BlackRock Fund Advisors---------------------------- 226,634---------- 1.05---------$2,628,954------- Dec 31, 2012
State Street Corporation------------------------------ 136,487---------- 0.63---------$1,583,249------- Dec 31, 2012
BlackRock Institutional Trust Company, N.A.--- 125,981---------- 0.58---------$1,461,379------- Dec 31, 2012
Northern Trust Corporation-------------------------- 125,749---------- 0.58---------$1,458,688------- Dec 31, 2012
Palisades Hudson Asset Management, L.P.------ 93,750---------- 0.43---------$1,087,500------- Dec 31, 2012


Top Mutual Fund Holders

Holder----------------------------------------------------- ---Shares--------% Out------- Value*----------- Reported

Vanguard Small-Cap Index Fund----------------------172,100------- 0.80--------- $2,044,548-------Sep 30, 2012
iShares Russell 2000 Index Fund--------------------- 132,015------- 0.61---------$1,531,374------- Dec 31, 2012
Vanguard Small Cap Value Index Fund--------------- 93,731------- 0.43---------$1,113,524------- Sep 30, 2012
Vanguard Total Stock Market Index Fund------------ 93,479------- 0.43---------$1,110,530------- Sep 30, 2012
iShares Russell 2000 Growth Index Fund------------ 48,665------- 0.23-----------$564,514-------- Dec 31, 2012
College Retirement Equities Fund-Stock Account---36,585------- 0.17-----------$434,629-------- Sep 30, 2012
Spartan Extended Market Index Fund------------------ 21,639------ 0.10----------- $245,169-------- Nov 30, 2012
Advanced Series Tr-AST Small Cap Value Port----- 21,300------ 0.10----------- $253,044-------- Sep 30, 2012
iShares Russell Micro Cap (TM) Index Fund--------- 18,594------- 0.09----------- $215,690-------- Dec 31, 2012
iShares Russell 2000 Value Index Fund--------------- 18,075------- 0.08------------$209,670------- Dec 31, 2012

*All values shown were computed using the security's price on the report date given.

http://finance.yahoo.com/q/mh?s=FNBN+Major+Holders

At today's pps of $11.98 it would be a sizable 25% discount and a great entry price for investors if they were deciding to get in. That was one year ago...the discount now sits at an irresistible 36% to Carlyle & Oak Hills' buy-in price of $16.