Context:
Third, a lot of my grandfather’s customers were black. Though the South was completely segregated back
then, some level of racial interaction was inevitable in small towns, just as it had always been
in the rural South. However, it was rare to find an uneducated rural southerner without a racist
bone in his body. That’s exactly what my grandfather was. I could see that black people
looked different, but because he treated them like he did everybody else, asking after their
children and about their work, I thought they were just like me.

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(1) That’s exactly what my grandfather was = My grandfather was belonging to the rare group who had no racial prejudice and repected all people, black and white and yellow.
(2) That’s exactly what my grandfather was. = My grandfather was as the same as those who had a racist bone in his body.