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Chart 20: With regard to capital deployment, what would you like management to focus on? 10% 60% 50% 40% 30% 20% 10% 0% Increase dividend payout Increase the pace of share — Continue with current capital buybacks management strategy Source: BofA Merrill Lynch Global Research Capital Bank Financial (CBF), C-1-7, Buy Investor expectations for CBF to achieve its ROA target increased YoY. Of the audience polled, 75% believe CBF to achieve its 1.1% ROA by YE17. This compares to 67% of the audience polled last year. CEO Gene Taylor highlighted both the organic growth opportunities and limited expense growth for the bank to achieve its ROA target. Although the bank is expected to cross $10bn in assets next year, management sounded confident that there would be little incremental expense growth as the bank has already built out leverageable systems. Chart 21: What do you consider as the single most important catalyst Chart 22: Do you think CBF will achieve its 1.1% core ROA target by for CBF shares in 2017? YE17? 60% 80% 15% 50% 70% 40% Bm 50% 30% ° 40% 20% 30% 25% 10% ° 20% om 10% Achieving its Abank Acceleration Increasing Higher profitability acquisition inloan capital returninterest rates 0% targets growth Yes No Source: BofA Merrill Lynch Global Research Source: BofA Merrill Lynch Global Research = Expectations around COB merger remain intact. CBF reiterated their expectations to fully recognize the 39% of cost savings related to the CommunityOne merger by 2017 year-end. (Systems conversion is slated for mid- 1Q17, with initial savings expected to be realized starting 2Q17). During their presentation, management introduced the source of these savings (new disclosure}, with the majority expected to come from executive management compensation (23%) and back-office functions (33%). = Capital deployment remains a key catalyst for the stock. Management agreed with the 80% of the audience polled that believe the pace of M&A activity will pick YoY (slightly better than last year’s forward expectations). While management noted that it remains focused on integrating COB, and acknowledged that it remains 14 2016 Future of Financials Conference | 17 November 2016 ee 2 errill Lynch HOUSE_OVERSIGHT_014328