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| UNITED      STATES                      |
|-----------------------------------------|
| SECURITIES      AND EXCHANGE COMMISSION |
| WASHINGTON,      D.C. 20549             |

| FORM      10-K |
|----------------|

| T      | ANNUAL      REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE     |
|--------|---------------------------------------------------------------|
|   | SECURITIES      EXCHANGE ACT OF 1934                          |
|   |                                                          |
|   | For      the fiscal year ended December 31, 2008              |
|   |                                                          |
|   | OR                                                            |
|   |                                                          |
| £ | TRANSITION      REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE |
|   | SECURITIES      EXCHANGE ACT OF 1934                          |

| MICHIGAN                                      |   | 38-2761672                  |
|-----------------------------------------------|--------|-----------------------------|
| (State      or other jurisdiction of          |   | (IRS      Employer          |
| incorporation      or organization)           |   | Identification      Number) |
| Capitol      Bancorp Center                   |   |                        |
| 200      N. Washington Square                 |   |                        |
| Lansing,      Michigan                        |   | 48933                       |
| (Address      of principal executive offices) |   | (Zip      Code)             |

| Title      of each class                                                     |   | Name      of each exchange on which registered |
|------------------------------------------------------------------------------|--------|------------------------------------------------|
| Common      Stock, no par value per share                                    |   | New      York Stock Exchange                   |
|                                                                         |   |                                           |
| 8.50%      Cumulative Trust Preferred Securities,$10      Liquidation Amount |   |  New      York Stock Exchange             |
|                                                                         |   |                                           |
| 10.5%      Cumulative Trust Preferred Securities,$10      Liquidation Amount |   |  New      York Stock Exchange             |

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| Large      accelerated filer  o |   | Accelerated      filer  x |   | Non-accelerated      filer  o |   | Smaller      Reporting Company  o |
|--------------------------------------|--------|--------------------------------|--------|------------------------------------|--------|----------------------------------------|

| Class                                     |   | Outstanding      at February 24, 2009 |
|-------------------------------------------|--------|---------------------------------------|
| Common      Stock, no par value per share |   | 17,290,623      shares                |

| Document                                                                                                                |   | Parts Into Which    Incorporated |
|-------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------|
| Annual      Report to Shareholders for the Year EndedDecember      31, 2008 (Annual Report)                        |   | Parts      I, II, and IV         |
| Portions      of Proxy Statement for the Annual Meeting ofShareholders      to be held April 22, 2009 (Proxy Statement) |   | Part      III                    |

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| Item of Form 10-KPart I                                                                                                                            | Incorporation by      Reference From:                                                                                                             |
|----------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------|
| Item      1.  Business                                                                                                                   | Pages      F-7 – F-11, F-22 – F-31, F-42 – F-45 and F-58 – F-59,Financial      Information Section of Annual Report  |
| Item      1A.  Risk Factors                                                                                                              | Page      F-33, Financial Information Section of Annual Report                                                                               |
| Item      2.  Properties                                                                                                                 | Pages      F-42 – F-43 and F-56, Financial Information Section of AnnualReport                                                         |
| Part II                                                                                                                                            |                                                                                                                                              |
| Item      5.  Market for Registrant's Common Equity,Related      Stockholder Matters and IssuerPurchases      of Equity Securities  | Pages      F-2 – F-6, F-59 – F-61 and F-69 – F-70 , FinancialInformationSection      of Annual Report                           |
| Item      6.  Selected Financial Data                                                                                                    | Page      F-2, Financial Information Section of Annual Report                                                                                |
| Item      7.  Management's Discussion and Analysis ofFinancial      Condition and Results ofOperations                              | Pages      F-7 – F-33, Financial Information Section of Annual Report                                                                  |
| Item      7A. Quantitative and Qualitative DisclosuresAbout      Market Risk                                                                       | Pages      F-6 and F-26 – F-31, Financial Information Section ofAnnual      Report                                                     |
| Item      8.  Financial Statements and SupplementaryData                                                                                 | Pages      F-2 and F-38 – F-72, Financial Information Section ofAnnual      Report                                                     |
| Item      9A. Controls and Procedures                                                                                                              | Pages      F-34 – F-36, Financial Information Section of Annual Report                                                                 |
| Part III                                                                                                                                           |                                                                                                                                              |
| Item      10. Directors, Executive Officers and CorporateGovernance                                                                           | Proxy      Statement                                                                                                                              |
| Item      11. Executive Compensation                                                                                                               | Proxy      Statement                                                                                                                         |
| Item      12. Security Ownership of Certain BeneficialOwners      and Management and RelatedStockholder      Matters                          | Proxy      Statement                                                                                                                              |
| Item      13. Certain Relationships and RelatedTransactions      and Director Independence                                                    | Proxy      Statement                                                                                                                              |
| Item      14. Principal Accountant Fees and Services                                                                                          | Proxy      Statement                                                                                                                         |
| Part IV                                                                                                                                            |                                                                                                                                              |
| Item      15. Exhibits and Financial Statement Schedules                                                                                           | Pages      F-34 – F-72, Financial Information Section of Annual  Report                                                                     |

| "Annual      Report" | means      the 2008 Annual Report of Capitol provided to Shareholders and the      Commission pursuant to Rule 14a-3(b).  Capitol's 2008 Annual      Report is divided into two sections:  a Financial Information      Section and a Marketing Section and is filed as Exhibit 13 with this Form      10-K report. |
|----------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| "Proxy      Statement" | means      the Proxy Statement of Capitol for the Annual Meeting of Shareholders to      be held April 22, 2009. |
|------------------------|------------------------------------------------------------------------------------------------------------------|

| Note: | The      page number references herein are based on the paper version of the      referenced documents.  Accordingly, those page number references      may differ from the electronically filed versions of those      documents. |
|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|  PART      I                                                                                                                                         | Page           |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------|
| ITEM  1.   Business                                                                                                                   | 6         |
| ITEM      1A.  Risk Factors                                                                                                                          | 24        |
| ITEM      1B.  Unresolved Staff Comments                                                                                                             | 31        |
| ITEM  2.   Properties                                                                                                                 | 31        |
| ITEM  3.   Legal      Proceedings                                                                                                     | 32        |
| ITEM  4.   Submission      of Matters to a Vote of Security Holders                                                                   | 33        |
| PART      II                                                                                                                                              |           |
| ITEM  5.   Market      for Registrant's Common Equity, Related Stockholder Matters and Issuer      Purchasesof      Equity Securities |  34  |
| ITEM      6.   Selected Financial Data                                                                                                          | 35        |
| ITEM  7.   Management's      Discussion and Analysis of Financial Condition and Results of      Operations                            | 35        |
| ITEM      7A. Quantitative and Qualitative Disclosures About Market    Risk                                                                                    | 35        |
| ITEM  8.   Financial      Statements and Supplementary Data                                                                           | 35        |
| ITEM  9.   Changes      in and Disagreements with Accountants on Accounting and Financial      Disclosure                             | 35        |
| ITEM      9A. Controls and Procedures                                                                                                                          | 35        |
| ITEM      9B. Other Information                                                                                                                                | 36        |
| PART      III                                                                                                                                             |           |
| ITEM      10.  Directors, Executive Officers and Corporate      Governance                                                                           | 37        |
| ITEM      11.  Executive Compensation                                                                                                                | 37        |
| ITEM      12.  Security Ownership of Certain Beneficial Owners and      Management and RelatedStockholder      Matters                               |  37  |
| ITEM      13.  Certain Relationships and Related Transactions and Director      Independence                                                         | 37        |
| ITEM      14.  Principal Accountant Fees and Services                                                                                                | 37        |
| PART      IV                                                                                                                                              |           |
| ITEM      15.  Exhibits and Financial Statement Schedules                                                                                            | 38             |

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| ·  | prohibiting      the payment of principal and interest on subordinated debt;                                                    |
|--------------|--------------------------------------------------------------------------------------------------------------------------------------|
| ·  | prohibiting      the holding company from obtaining distributions from the institution      without prior regulatory approval;  |
| ·  | placing      limits on asset growth and restrictions on activities;                                                             |
| ·  | placing      additional restrictions on transactions with affiliates;                                                           |
| ·  | restricting      the interest rate the institution may pay on deposits;                                                         |
| ·  | prohibiting      the institution from accepting deposits from correspondent banks;      and                                     |
| ·  | in      the most severe cases, appointing a conservator or receiver for the      institution.                                        |

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| DISTRIBUTION      OF ASSETS, LIABILITIES AND STOCKHOLDERS' EQUITY (TABLE A)                                                                                                                      |   |    |      |   |     |   |    |       |   |   |    |   |   |     |      |   |       |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------|-----------|--------|----------|--------|---------|------------|--------|--------|---------|--------|--------|----------|-----------|--------|------------|--------|
| CAPITOL      BANCORP LIMITED                                                                                                                                                                     |   |    |      |   |     |   |    |       |   |   |    |   |   |     |      |   |       |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                             |   |    |      |   |     |   |    |       |   |   |    |   |   |     |      |   |       |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                             |   |    |      |   |     |   |    |       |   |   |    |   |   |     |      |   |       |   |   |   |   |   |   |   |   |   |   |
| Net      interest income, the primary component of earnings, represents the      difference between interest income on interest-earning assets and interest      expense on interest-            |   |
| bearing      liabilities. Net interest income depends upon the volume of      interest-earning assets and interest-bearing liabilities and the rates      earned or paid on them. This |   |
| table      shows the daily average balances for the major asset and liability      categories and the actual related interest income and expense (in $1,000s)      and average                   |   |
| yield/cost      for the years ended December 31, 2008, 2007 and 2006.                                                                                                                            |   |    |      |   |     |   |    |       |   |   |    |   |   |     |      |   |       |   |   |
|                                                                                                                                                                                             |   |    |      |   |     |   |    |       |   |   |    |   |   |     |      |   |       |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                             |   | 2008    |      |   | 2007     |   |    | 2006       |   |
|                                                                                                                                                                                             |   |    |      |   | Interest |   |    | (1)        |   |   |    |   |   | Interest |      |   | (1)        |   |   |   |   |   | Interest |   |   | (1)  |   |
|                                                                                                                                                                                             |   | Average |      |   | Income/  |   |    | Average    |   |   | Average |   |   | Income/  |      |   | Average    |   |   | Average |   |   | Income/ |   |   | Average |   |
|                                                                                                                                                                                             |   | Balance |      |   | Expense  |   |    | Yield/Cost |   |   | Balance |   |   | Expense  |      |   | Yield/Cost |   |   | Balance |   |   | Expense |   |   | Yield/Cost |   |
| ASSETS                                                                                                                                                                                           |   |    |      |   |     |   |    |       |   |   |    |   |   |     |      |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
|        Money market and interest-bearing deposits                                                                                                                                           |   | $       | 127,311   |   |     | $      | 1,218   |       |   |   | 0.96    | %      |   | $        | 23,912    |   |       | $      | 1,120 |   |   |   | 4.68 | % |   | $ | 33,123 |   |   | $ | 1,403 |   |   |   | 4.24 | % |
|        Federal funds sold                                                                                                                                                                   |   |    | 220,128   |   |     |   | 3,822   |       |   |   | 1.74    | %      |   |     | 205,294   |   |       |   | 10,687 |   |   |   | 5.21 | % |   |   | 171,445 |   |   |   | 8,703 |   |   |   | 5.08 | % |
|        Investment securities -- U.S. Treasury,                                                                                                                                              |   |    |      |   |     |   |    |       |   |   |    |   |   |     |      |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|          government agencies, mutual funds and other                                                                                                                              |   |    | 44,691    |   |     |   | 1,812   |       |   |   | 4.05    | %      |   |     | 39,330    |   |       |   | 1,699 |   |   |   | 4.32 | % |   |   | 42,277 |   |   |   | 1,806 |   |   |   | 4.27 | % |
|        Loans held for sale                                                                                                                                                                  |   |    | 10,774    |   |     |   | 774     |       |   |   | 7.18    | %      |   |     | 24,427    |   |       |   | 2,133 |   |   |   | 8.73 | % |   |   | 36,306 |   |   |   | 2,740 |   |   |   | 7.55 | % |
|        Portfolio loans (2)                                                                                                                                                                  |   |    | 4,621,247 |   |     |   | 296,689 |       |   |   | 6.42    | %      |   |     | 3,840,526 |   |       |   | 314,800 |   |   |   | 8.20 | % |   |   | 3,236,538 |   |   |   | 264,701 |   |   |   | 8.18 | % |
|         Total      interest-earning                                                                                                                      |   |    |      |   |     |   |    |       |   |   |    |   |   |     |      |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|            assets/interest      income                                                                                                    |   |    | 5,024,151 |   |     |   | 304,315 |       |   |   | 6.06    | %      |   |     | 4,133,489 |   |       |   | 330,439 |   |   |   | 7.99 | % |   |   | 3,519,689 |   |   |   | 279,353 |   |   |   | 7.94 | % |
|        Allowance for loan losses (deduct)                                                                                                                                                   |   |    | (79,554   | )      |     |   |    |       |   |   |    |   |   |     | (50,316   | )      |       |   |   |   |   |   |   |   |   |   | (44,000 | ) |   |   |   |   |   |   |   |   |
|        Cash and due from banks                                                                                                                                                              |   |    | 133,039   |   |     |   |    |       |   |   |    |   |   |     | 153,042   |   |       |   |   |   |   |   |   |   |   |   | 150,782 |   |   |   |   |   |   |   |   |   |
|        Premises and equipment, net                                                                                                                                                          |   |    | 60,160    |   |     |   |    |       |   |   |    |   |   |     | 56,925    |   |       |   |   |   |   |   |   |   |   |   | 50,656 |   |   |   |   |   |   |   |   |   |
|        Other assets                                                                                                                                                                         |   |    | 234,342   |   |     |   |    |       |   |   |    |   |   |     | 159,855   |   |       |   |   |   |   |   |   |   |   |   | 119,987 |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                             |   |    |      |   |     |   |    |       |   |   |    |   |   |     |      |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                          Total      assets                          |   | $       | 5,372,138 |   |     |   |    |       |   |   |    |   |   | $        | 4,452,995 |   |       |   |   |   |   |   |   |   |   | $ | 3,797,114 |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                             |   |    |      |   |     |   |    |       |   |   |    |   |   |     |      |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                             |   |    |      |   |     |   |    |       |   |   |    |   |   |     |      |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| LIABILITIES      AND STOCKHOLDERS' EQUITY                                                                                                                                                        |   |    |      |   |     |   |    |       |   |   |    |   |   |     |      |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|        Interest-bearing deposits:                                                                                                                                                           |   |    |      |   |     |   |    |       |   |   |    |   |   |     |      |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|          Savings deposits                                                                                                                                                         |   | $       | 89,025    |   |     | $      | 1,496   |       |   |   | 1.68    | %      |   | $        | 83,632    |   |       | $      | 2,291 |   |   |   | 2.74 | % |   | $ | 59,985 |   |   | $ | 981 |   |   |   | 1.64 | % |
|          Time deposits under $100,000                                                                                                                                             |   |    | 1,029,914 |   |     |   | 36,759  |       |   |   | 3.57    | %      |   |     | 569,773   |   |       |   | 28,060 |   |   |   | 4.92 | % |   |   | 429,108 |   |   |   | 17,983 |   |   |   | 4.19 | % |
|          Time deposits $100,000 and over                                                                                                                                          |   |    | 1,199,988 |   |     |   | 50,099  |       |   |   | 4.17    | %      |   |     | 1,031,011 |   |       |   | 52,828 |   |   |   | 5.12 | % |   |   | 889,769 |   |   |   | 38,115 |   |   |   | 4.28 | % |
|          Other interest-bearing deposits                                                                                                                                          |   |    | 1,236,841 |   |     |   | 24,016  |       |   |   | 1.94    | %      |   |     | 1,227,480 |   |       |   | 40,981 |   |   |   | 3.34 | % |   |   | 1,066,109 |   |   |   | 31,550 |   |   |   | 2.96 | % |
|        Notes payable and short-term borrowings                                                                                                                                              |   |    | 408,521   |   |     |   | 15,067  |       |   |   | 3.69    | %      |   |     | 220,996   |   |       |   | 11,048 |   |   |   | 5.00 | % |   |   | 173,719 |   |   |   | 8,169 |   |   |   | 4.70 | % |
|        Subordinated debentures                                                                                                                                                              |   |    | 162,453   |   |     |   | 13,029  |       |   |   | 8.02    | %      |   |     | 143,390   |   |       |   | 11,954 |   |   |   | 8.34 | % |   |   | 100,999 |   |   |   | 8,788 |   |   |   | 8.70 | % |
|         Total      interest-bearing                                                                                                                      |   |    |      |   |     |   |    |       |   |   |    |   |   |     |      |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|            liabilities/interest      expense                                                                                              |   |    | 4,126,742 |   |     |   | 140,466 |       |   |   | 3.40    | %      |   |     | 3,276,282 |   |       |   | 147,162 |   |   |   | 4.49 | % |   |   | 2,719,689 |   |   |   | 105,586 |   |   |   | 3.88 | % |
|        Noninterest-bearing demand deposits                                                                                                                                                  |   |    | 661,578   |   |     |   |    |       |   |   |    |   |   |     | 628,345   |   |       |   |   |   |   |   |   |   |   |   | 614,529 |   |   |   |   |   |   |   |   |   |
|        Accrued interest on deposits and                                                                                                                                                     |   |    |      |   |     |   |    |       |   |   |    |   |   |     |      |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|          other liabilities                                                                                                                                                        |   |    | 49,230    |   |     |   |    |       |   |   |    |   |   |     | 31,640    |   |       |   |   |   |   |   |   |   |   |   | 25,305 |   |   |   |   |   |   |   |   |   |
|        Minority interests in consolidated subsidiaries                                                                                                                                      |   |    | 163,563   |   |     |   |    |       |   |   |    |   |   |     | 133,170   |   |       |   |   |   |   |   |   |   |   |   | 110,060 |   |   |   |   |   |   |   |   |   |
|        Stockholders' equity                                                                                                                                                                 |   |    | 371,025   |   |     |   |    |       |   |   |    |   |   |     | 383,558   |   |       |   |   |   |   |   |   |   |   |   | 327,531 |   |   |   |   |   |   |   |   |   |
|                         Total      liabilities and                       |   |    |      |   |     |   |    |       |   |   |    |   |   |     |      |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                            stockholders'      equity      |   | $       | 5,372,138 |   |     |   |    |       |   |   |    |   |   | $        | 4,452,995 |   |       |   |   |   |   |   |   |   |   | $ | 3,797,114 |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                             |   |    |      |   |     |   |    |       |   |   |    |   |   |     |      |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      interest income                                                                                                                                                                         |   |    |      |   |     | $      | 163,849 |       |   |   |    |   |   |     |      |   |       | $      | 183,277 |   |   |   |   |   |   |   |   |   |   | $ | 173,767 |   |   |   |   |   |
|                                                                                                                                                                                             |   |    |      |   |     |   |    |       |   |   |    |   |   |     |      |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest      Rate Spread (3)                                                                                                                                                                    |   |    |      |   |     |   |    |       |   |   | 2.66    | %      |   |     |      |   |       |   |   |   |   |   | 3.50 | % |   |   |   |   |   |   |   |   |   |   | 4.06 | % |
|                                                                                                                                                                                             |   |    |      |   |     |   |    |       |   |   |    |   |   |     |      |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      Yield on Interest-Earning Assets (4)                                                                                                                                                    |   |    |      |   |     |   |    |       |   |   | 3.26    | %      |   |     |      |   |       |   |   |   |   |   | 4.43 | % |   |   |   |   |   |   |   |   |   |   | 4.94 | % |
|                                                                                                                                                                                             |   |    |      |   |     |   |    |       |   |   |    |   |   |     |      |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Ratio      of Average Interest-Earning                                                                                                                                                           |   |    |      |   |     |   |    |       |   |   |    |   |   |     |      |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Assets      to Interest-Bearing Liabilities                                                                                                                                    |   |    | 1.22      |   |     |   |    |       |   |   |    |   |   |     | 1.26      |   |       |   |   |   |   |   |   |   |   |   | 1.29 |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                             |   |    |      |   |     |   |    |       |   |   |    |   |   |     |      |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                             |   |    |      |   |     |   |    |       |   |   |    |   |   |     |      |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                             |   |    |      |   |     |   |    |       |   |   |    |   |   |     |      |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                             |   |    |      |   |     |   |    |       |   |   |    |   |   |     |      |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| (1)      Average yield/cost is determined by dividing the actual interest      income/expense by the daily average balance of the asset or liability      category.                              |   |
| (2)      Average balance of loans includes nonaccrual loans.                                                                                                                                     |   |    |      |   |     |   |    |       |   |   |    |   |   |     |      |   |       |   |   |   |   |   |   |   |   |   |   |   |   |
| (3)      Interest rate spread represents the average yield on interest-earning      assets less the average cost of interest-bearing    liabilities.                                             |   |
| (4)      Net yield is based on net interest income as a percentage of average total      interest-earning assets.                                                                                |   |    |      |   |     |   |    |       |   |   |    |   |   |
|                                                                                                                                                                                             |   |    |      |   |     |   |    |       |   |   |    |   |   |     |      |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                             |   |    |      |   |     |   |    |       |   |   |    |   |   |     |      |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                             |   |    |      |   |     |   |    |       |   |   |    |   |   |     |      |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| [The      remainder of this page intentionally leftblank]                                                                                                                                        |

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| CHANGES      IN NET INTEREST INCOME (TABLE B)                                                                                                                           |   |                             |   |   |                             |   |    |           |   |   |    |   |   |   |   |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------|--------|--------|----------------------------------|--------|---------|----------------|--------|--------|---------|--------|--------|--------|--------|--------|
| CAPITOL      BANCORP LIMITED                                                                                                                                            |   |                             |   |   |                             |   |    |           |   |   |    |   |   |   |   |   |   |   |
|                                                                                                                                                                    |   |                             |   |   |                             |   |    |           |   |   |    |   |   |   |   |   |   |   |
|                                                                                                                                                                    |   |                             |   |   |                             |   |    |           |   |   |    |   |   |   |   |   |   |   |
|                                                                                                                                                                    |   |                             |   |   |                             |   |    |           |   |   |    |   |   |   |   |   |   |   |
| The      table below summarizes the extent to which changes in interest rates and      changes in the volume of interest-earning assets and      interest-bearing       |   |
| liabilities      have affected Capitol's net interest income (in $1,000s). The change      in interest attributable to volume is calculated by      multiplying    |   |
| the      annual change in volume by the prior year's rate. The change in      interest attributable to rate is calculated by multiplying the annual      change    |   |
| in      rate by the prior year's average balance. Any variance attributable      jointly to volume and rate changes has been allocated to each category      based |   |
| on      the percentage of each to the total change in both    categories.                                                                                               |   |                             |   |   |                             |   |    |           |   |   |    |   |   |
|                                                                                                                                                                    |   |                             |   |   |                             |   |    |           |   |   |    |   |   |   |   |   |   |   |
|                                                                                                                                                                    |   |  2008      compared to 2007 |   |   |  2007      compared to 2006 |   |
|                                                                                                                                                                    |   | Volume                           |   |   | Rate                             |   |    | Net      Total |   |   | Volume  |   |   | Rate   |   |   | Net      Total |   |
| Increase      (decrease) in interest income:                                                                                                                            |   |                             |   |   |                             |   |    |           |   |   |    |   |   |   |   |   |   |   |
|   Money      market and interest-bearing deposits                                                                                                             |   | $                                | 1,588  |   |                             | $      | (1,490  | )              |   | $      | 98      |   |   | $      | (420   | )      |   | $ | 137 |   |   | $ | (283 | ) |
|   Federal      funds sold                                                                                                                                     |   |                             | 722    |   |                             |   | (7,587  | )              |   |   | (6,865  | )      |   |   | 1,757  |   |   |   | 227 |   |   |   | 1,984 |   |
|        Investment securities -- U.S. Treasury, government                                                                                                     |   |                             |   |   |                             |   |    |           |   |   |    |   |   |   |   |   |   |   |   |   |   |   |
|     agencies,      mutual funds and other                                                                                                           |   |                             | 222    |   |                             |   | (109    | )              |   |   | 113     |   |   |   | (127   | )      |   |   | 20 |   |   |   | (107 | ) |
|   Loans      held for sale                                                                                                                                    |   |                             | (1,032 | )      |                             |   | (327    | )              |   |   | (1,359  | )      |   |   | (992   | )      |   |   | 385 |   |   |   | (607 | ) |
|   Portfolio      loans                                                                                                                                        |   |                             | 57,281 |   |                             |   | (75,392 | )              |   |   | (18,111 | )      |   |   | 49,506 |   |   |   | 593 |   |   |   | 50,099 |   |
| Total                                                                                                                                                                   |   |                             | 58,781 |   |                             |   | (84,905 | )              |   |   | (26,124 | )      |   |   | 49,724 |   |   |   | 1,362 |   |   |   | 51,086 |   |
|                                                                                                                                                                    |   |                             |   |   |                             |   |    |           |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                    |   |                             |   |   |                             |   |    |           |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Increase      (decrease) in interest expense:                                                                                                                           |   |                             |   |   |                             |   |    |           |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Interest-bearing      deposits:                                                                                                                             |   |                             |   |   |                             |   |    |           |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     Savings      deposits                                                                                                                           |   |                             | 140    |   |                             |   | (935    | )              |   |   | (795    | )      |   |   | 483    |   |   |   | 827 |   |   |   | 1,310 |   |
|     Time      deposits under $100,000                                                                                                               |   |                             | 22,293 |   |                             |   | (13,594 | )              |   |   | 8,699   |   |   |   | 6,568  |   |   |   | 3,509 |   |   |   | 10,077 |   |
|     Time      deposits $100,000 and over                                                                                                            |   |                             | (56    | )      |                             |   | (2,673  | )              |   |   | (2,729  | )      |   |   | 6,581  |   |   |   | 8,132 |   |   |   | 14,713 |   |
|     Other      interest-bearing deposits                                                                                                            |   |                             | 310    |   |                             |   | (17,275 | )              |   |   | (16,965 | )      |   |   | 5,107  |   |   |   | 4,324 |   |   |   | 9,431 |   |
|   Notes      payable and short-term borrowings                                                                                                                |   |                             | 7,497  |   |                             |   | (3,478  | )              |   |   | 4,019   |   |   |   | 2,337  |   |   |   | 542 |   |   |   | 2,879 |   |
|   Subordinated      debentures                                                                                                                                |   |                             | 1,542  |   |                             |   | (467    | )              |   |   | 1,075   |   |   |   | 3,548  |   |   |   | (382 | ) |   |   | 3,166 |   |
| Total                                                                                                                                                                   |   |                             | 31,726 |   |                             |   | (38,422 | )              |   |   | (6,696  | )      |   |   | 24,624 |   |   |   | 16,952 |   |   |   | 41,576 |   |
| Increase      (decrease) in net                                                                                                                                         |   |                             |   |   |                             |   |    |           |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   interest      income                                                                                                                                        |   | $                                | 27,055 |   |                             | $      | (46,483 | )              |   | $      | (19,428 | )      |   | $      | 25,100 |   |   | $ | (15,590 | ) |   | $ | 9,510 |   |
|                                                                                                                                                                    |   |                             |   |   |                             |   |    |           |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                    |   |                             |   |   |                             |   |    |           |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                    |   |                             |   |   |                             |   |    |           |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                    |   |                             |   |   |                             |   |    |           |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                    |   |                             |   |   |                             |   |    |           |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                    |   |                             |   |   |                             |   |    |           |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| [The      remainder of this page intentionally leftblank]                                                                                                               |

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| INVESTMENT      PORTFOLIO (TABLE C)                                                                                                                        |   |   |   |   |   |   |   |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|
| CAPITOL      BANCORP LIMITED                                                                                                                               |   |   |   |   |   |   |   |   |
|                                                                                                                                                       |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                       |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                       |   |   |   |   |   |   |   |   |   |   |   |
| The      table below shows amortized cost and estimated fair value of investment      securities as of December 31, 2008, 2007 and 2006 (in      $1,000s): |

|                                            |   |      |   |   |      |   |   |      |
|-------------------------------------------------|--------|-----------|--------|--------|-----------|--------|--------|-----------|
|                                            |   | 2008      |   |   | 2007      |   |   | 2006      |
|                                            |   |      |   |   | Estimated |   |   |      |   |   | Estimated |   |   |   |   |   | Estimated |
|                                            |   | Amortized |   |   | Fair      |   |   | Amortized |   |   | Fair |   |   | Amortized |   |   | Fair |
|                                            |   | Cost      |   |   | Value     |   |   | Cost      |   |   | Value |   |   | Cost |   |   | Value |
|                                            |   |      |   |   |      |   |   |      |   |   |   |   |   |   |   |   |   |
| Available      for sale:                        |   |      |   |   |      |   |   |      |   |   |   |   |   |   |   |   |   |
| United      States treasury securities          |   |      |   |   |      | $      | 499    |      |   | $ | 499 |   |   |   |   |   |   |
| United      States government agency securities |   | $         | 9,785  |   |      | $      | 9,913  |      |   |   | 8,991 |   |   |   | 9,025 |   |   | $ | 13,403 |   |   | $ | 13,285 |
| Mortgage-backed      securities            |   |      | 4,813  |   |      |   | 4,890  |      |   |   | 3,402 |   |   |   | 3,368 |   |   |   | 4,089 |   |   |   | 3,991 |
| Municipals                                      |   |      | 768    |   |      |   | 781    |      |   |   | 1,222 |   |   |   | 1,227 |   |   |   | 1,630 |   |   |   | 1,628 |
|                                            |   |      | 15,366 |   |      |   | 15,584 |      |   |   | 14,114 |   |   |   | 14,119 |   |   |   | 19,122 |   |   |   | 18,904 |
| Held      for long-term investment:             |   |      |   |   |      |   |   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Federal      Reserve Bank stock                 |   |      | 146    |   |      |   | 146    |      |   |   | 563 |   |   |   | 563 |   |   |   | 864 |   |   |   | 864 |
| Federal      Home Loan Bank stock               |   |      | 26,053 |   |      |   | 26,053 |      |   |   | 18,765 |   |   |   | 18,765 |   |   |   | 14,148 |   |   |   | 14,148 |
| Corporate                                       |   |      | 6,591  |   |      |   | 6,591  |      |   |   | 6,085 |   |   |   | 6,085 |   |   |   | 6,737 |   |   |   | 6,737 |
| Other                                           |   |      | 66     |   |      |   | 66     |      |   |   | 65 |   |   |   | 65 |   |   |   | -- |   |   |   | -- |
|                                            |   |      | 32,856 |   |      |   | 32,856 |      |   |   | 25,478 |   |   |   | 25,478 |   |   |   | 21,749 |   |   |   | 21,749 |
|                                            |   |      |   |   |      |   |   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total      investment securities                |   | $         | 48,222 |   |      | $      | 48,440 |      |   | $ | 39,592 |   |   | $ | 39,597 |   |   | $ | 40,871 |   |   | $ | 40,653 |

|                                                                                                                                                    |   |                                                             |   |           |      |   |   |     |   |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------------------|--------|----------------|-----------|--------|--------|----------|--------|--------|
|                                                                                                                                                    |   |                                                             |   |           |      |   |   |     |   |   |
| The      table below shows the amortized cost, estimated fair value, relative      maturities and weighted average yields of investment      securities |   |
| at      December 31, 2008 (in $1,000s):                                                                                                                 |   |                                                             |   |           |      |   |   |     |
|                                                                                                                                                    |   |                                                             |   |           |      |   |   |     |   |   |
|                                                                                                                                                    |   |                                                             |   |           | Estimated |   |   | Weighted |   |   |
|                                                                                                                                                    |   | Amortized                                                        |   |           | Fair      |   |   | Average  |   |   |
|                                                                                                                                                    |   | Cost                                                             |   |           | Value     |   |   | Yield    |   |   |
| Maturity:                                                                                                                                               |   |                                                             |   |           |      |   |   |     |   |   |
| Due      in one year or less                                                                                                                            |   | $                                                                | 4,622  |           |      | $      | 4,678  |     |   |   | 0.33 | % |   |
| After      one year, through five years                                                                                                                 |   |                                                             | 6,093  |           |      |   | 6,169  |     |   |   | 6.73 | % |   |
| After      five years, through ten years                                                                                                                |   |                                                             | 120    |           |      |   | 126    |     |   |   | 0.57 | % |   |
| After      ten years                                                                                                                                    |   |                                                             | 4,531  |           |      |   | 4,611  |     |   |   | 4.88 | % |   |
| Securities      held for long-term investment,                                                                                                          |   |                                                             |   |           |      |   |
|             without stated maturities                                                                                     |   |                                                             | 32,856 |           |      |   | 32,856 |     |   |   |   |   |   |
|                                                                                                                                                    |   |                                                             |   |           |      |   |   |     |   |   |   |   |   |
| Total                                                                                                                                                   |   | $                                                                | 48,222 |           |      | $      | 48,440 |     |   |   |   |   |   |
|                                                                                                                                                    |   |                                                             |   |           |      |   |   |     |   |   |   |   |   |
|                                                                                                                                                    |   |                                                             |   |           |      |   |   |     |   |   |   |   |   |
| Investment      securities which do not have stated maturities (corporate, Federal Reserve      Bank stock and Federal Home Loan Bank stock)            |   |
| do      not have stated yields or rates of return and such rates of return vary      from time to time.                                                 |   |
|                                                                                                                                                    |   |                                                             |   |           |      |   |   |     |   |   |   |   |   |
|                                                                                                                                                    |   |                                                             |   |           |      |   |   |     |   |   |   |   |   |
| Following      is a summary of the weighted average maturities of investment securities      (exclusive of securities without stated maturities) at     |   |
| December      31, 2008:                                                                                                                                 |   |                                                             |   |           |      |   |   |     |   |   |   |   |   |
|                                                                                                                                                    |   |                                                             |   |           |      |   |   |     |   |   |   |   |   |
| United      States government agency securities                                                                                                         |   | 3      years         and |   | 5      months  |      |   |   |     |   |
| Mortgage-backed      securities                                                                                                                         |   | 3      years         and |   | 2      months  |      |   |   |     |   |
| Municipals                                                                                                                                              |   | 2      years         and |   | 10      months |      |   |   |     |   |
|                                                                                                                                                    |   |                                                             |   |           |      |   |   |     |   |   |   |   |   |
|                                                                                                                                                    |   |                                                             |   |           |      |   |   |     |   |   |   |   |   |
|                                                                                                                                                    |   |                                                             |   |           |      |   |   |     |   |   |   |   |   |
|                                                                                                                                                    |   |                                                             |   |           |      |   |   |     |   |   |   |   |   |
| [The      remainder of this page intentionally leftblank]                                                                                               |

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| LOAN      PORTFOLIO AND SUMMARY OF OTHER REAL ESTATE OWNED (TABLE D)                                                                                                  |   |   |      |      |   |   |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|-----------|-----------|--------|--------|--------|
| CAPITOL      BANCORP LIMITED                                                                                                                                          |   |   |      |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                  |   |   |      |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                  |   |   |      |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Portfolio      loans outstanding as of December 31 are shown below (in      $1,000s):                                                                                 |   |   |      |      |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                  |   |   |      |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                  |   |   |      |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                  |   | 2008   |      |      | 2007   |   |   | 2006 |   |   | 2005 |   |   | 2004 |   |
| Loans      secured by real estate:                                                                                                                                    |   |   |      |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Commercial                                                                                                                                                |   | $      | 2,115,515 |      |   |   | 44.68  | % |   | $ | 1,917,113 |   |   |   | 44.43 | % |   | $ | 1,602,743 |   |   |   | 45.94 | % |   | $ | 1,352,338 |   |   |   | 45.21 | % |   | $ | 1,187,648 |   |   |   | 44.10 | % |
|   Residential      (including multi-family)                                                                                                                 |   |   | 879,754   |      |   |   | 18.58  | % |   |   | 698,960 |   |   |   | 16.20 | % |   |   | 529,357 |   |   |   | 15.17 | % |   |   | 501,861 |   |   |   | 16.78 | % |   |   | 487,048 |   |   |   | 18.09 | % |
|        Construction, land development and                                                                                                                        |   |   |      |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     other      land                                                                                                                               |   |   | 797,486   |      |   |   | 16.84  | % |   |   | 852,595 |   |   |   | 19.76 | % |   |   | 705,255 |   |   |   | 20.22 | % |   |   | 579,132 |   |   |   | 19.36 | % |   |   | 499,166 |   |   |   | 18.54 | % |
| Total      loans secured by real estate                                                                                                                               |   |   | 3,792,755 |      |   |   | 80.10  | % |   |   | 3,468,668 |   |   |   | 80.39 | % |   |   | 2,837,355 |   |   |   | 81.33 | % |   |   | 2,433,331 |   |   |   | 81.35 | % |   |   | 2,173,862 |   |   |   | 80.73 | % |
| Commercial      and other business-purpose                                                                                                                            |   |   |      |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|         loans                                                                                                                                               |   |   | 845,593   |      |   |   | 17.86  | % |   |   | 768,473 |   |   |   | 17.81 | % |   |   | 602,294 |   |   |   | 17.26 | % |   |   | 512,018 |   |   |   | 17.12 | % |   |   | 474,781 |   |   |   | 17.63 | % |
| Consumer                                                                                                                                                              |   |   | 61,340    |      |   |   | 1.29   | % |   |   | 48,041 |   |   |   | 1.11 | % |   |   | 39,957 |   |   |   | 1.15 | % |   |   | 37,661 |   |   |   | 1.26 | % |   |   | 32,947 |   |   |   | 1.22 | % |
| Other                                                                                                                                                                 |   |   | 35,541    |      |   |   | 0.75   | % |   |   | 29,519 |   |   |   | 0.69 | % |   |   | 9,072 |   |   |   | 0.26 | % |   |   | 8,179 |   |   |   | 0.27 | % |   |   | 11,314 |   |   |   | 0.42 | % |
| Total      portfolio loans                                                                                                                                            |   | $      | 4,735,229 |      |   |   | 100.00 | % |   | $ | 4,314,701 |   |   |   | 100.00 | % |   | $ | 3,488,678 |   |   |   | 100.00 | % |   | $ | 2,991,189 |   |   |   | 100.00 | % |   | $ | 2,692,904 |   |   |   | 100.00 | % |
|                                                                                                                                                                  |   |   |      |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                  |   |   |      |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| The      table below summarizes (in $1,000s) the remaining maturity of portfolio      loans outstanding at December 31, 2008 according to scheduled      repayments   |
| of      principal:                                                                                                                                                    |   |   |      |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                  |   |   |      |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                  |   |   |      |      |   |   |   |   |   | Fixed |   |   | Variable |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                  |   |   |      |      |   |   |   |   |   | Rate |   |   | Rate |   |   | Total |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Aggregate      maturities of portfolio loan balances which are due                                                                                                    |   |   |      |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   in      one year or less:                                                                                                                                 |   |   |      |      |   |   |   |   |   | $ | 810,610 |   |   | $ | 1,426,829 |   |   | $ | 2,237,439 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| After      one year but within five years                                                                                                                             |   |   |      | 1,328,295 |   |   |   | 695,195 |   |   |   | 2,023,490 |   |   |   |   |   |   |   |   |
| After      five years                                                                                                                                                 |   |   |      |      |   |   |   |   |   |   | 295,205 |   |   |   | 14,059 |   |   |   | 309,264 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Nonaccrual      loans                                                                                                                                                 |   |   |      |      |   |   |   |   |   |   | 165,036 |   |   |   |   |   |   |   | 165,036 |   |   |   |   |   |   |   |   |
| Total                                                                                                                                                                 |   |   |      |      |   |   | $      | 2,599,146 |   |   | $ | 2,136,083 |   |   | $ | 4,735,229 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                  |   |   |      |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                  |   |   |      |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| The      following summarizes, in general, Capitol's various loan      classifications:                                                                               |   |   |      |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                  |   |   |      |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans      secured by real estate                                                                                                                                     |   |   |      |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial                                                                                                                                                            |   |   |      |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Comprised      of a broad mix of business use and nonfarm nonresidential properties,      including office, retail, warehouse and light industrial    uses.           |
| A      typical loan size is generally less than $1,000,000 and, at December 31,      2008, approximately 27% of such properties were      owner-occupied.             |
|                                                                                                                                                                  |   |   |      |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Residential      (including multi-family)                                                                                                                             |   |   |      |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Includes      single and multi family residential loans held for permanent portfolio and      home equity lines of credit.                                            |   |
|                                                                                                                                                                  |   |   |      |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Construction,      land development and other land                                                                                                                    |   |   |      |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Includes      loans made to finance land development for new or existing structures,      vacant land and agricultural land.                                          |   |
|                                                                                                                                                                  |   |   |      |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial      and other business-purpose loans                                                                                                                      |   |   |      |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Includes      a range of loans to sole proprietorships, partnerships, corporations, and      other business enterprises and also to individuals for                   |
| commercial,      industrial and professional purposes but not for investment or personal      expenditure purposes.                                                   |   |   |      |      |   |
|                                                                                                                                                                  |   |   |      |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Consumer                                                                                                                                                              |   |   |      |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Includes      a broad range of installment credit products, secured by automobiles,      watercraft, etc., with typical consumer credit risks.                        |
|                                                                                                                                                                  |   |   |      |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other                                                                                                                                                                 |   |   |      |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Includes      loans to finance agricultural production, obligations of states and      political subdivisions in the US and nonprofit    organizations.               |
|                                                                                                                                                                  |   |   |      |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| All      loans are subject to underwriting procedures commensurate with the loan      size, nature of collateral, industry trends, risks and experience      factors. |
| Appropriate      collateral is required for most loans, as is documented evidence of debt      repayment sources.                                                     |
|                                                                                                                                                                  |   |   |      |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                  |   |   |      |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                  |   |   |      |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                  |   |   |      |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| [The      remainder of this page intentionally leftblank]                                                                                                             |

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| LOAN      PORTFOLIO AND SUMMARY OF OTHER REAL ESTATE OWNED (TABLE D -      CONTINUED)                                                                                                  |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| CAPITOL      BANCORP LIMITED                                                                                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| The      aggregate amount of nonperforming portfolio loans is summarized below as      of December 31 (in $1,000s). Nonperforming loans are comprised of (a)      loans           |   |
| accounted      for on a nonaccrual basis and (b) loans contractually past due 90 days or      more as to principal and interest payments (but not included in      nonaccrual          |   |
| loans      in (a) above) and consist primarily of commercial real estate      loans. See Note D of the Notes to Consolidated Financial Statements      for additional information |   |
| regarding      nonperforming loans.                                                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                   |   | 2008 |   |   | 2007 |   |   | 2006 |   |   | 2005 |   |   | 2004 |   |
| Nonperforming      loans:                                                                                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     Nonaccrual      loans:                                                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans      secured by real estate:                                                                                                                                                     |   |   |   |   |   |   |   |   |   |   |
| Commercial                                                                                                                                                                             |   | $ | 39,892 |   |   | $ | 19,016 |   |   | $ | 8,771 |   |   | $ | 9,451 |   |   | $ | 4,713 |   |
| Residential      (including multi-family)                                                                                                                                              |   |   | 35,675 |   |   |   | 13,381 |   |   |   | 6,808 |   |   |   | 4,826 |   |   |   | 7,632 |   |
| Construction,      land development and                                                                                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    other      land                                                                                                                                                      |   |   | 72,996 |   |   |   | 29,756 |   |   |   | 8,583 |   |   |   | 2,847 |   |   |   | 2,252 |   |
| Total      loans secured by real estate                                                                                                                                                |   |   | 148,563 |   |   |   | 62,153 |   |   |   | 24,162 |   |   |   | 17,124 |   |   |   | 14,597 |   |
|         Commercial      and other business-purpose loans                                                                                       |   |   | 16,283 |   |   |   | 5,782 |   |   |   | 5,349 |   |   |   | 5,279 |   |   |   | 8,491 |   |
|         Consumer                                                                                                                               |   |   | 190 |   |   |   | 66 |   |   |   | 215 |   |   |   | 219 |   |   |   | 121 |   |
|         Other                                                                                                                                  |   |   | -- |   |   |   | 84 |   |   |   | -- |   |   |   | -- |   |   |   | -- |   |
| Total      nonaccrual loans                                                                                                                                                            |   |   | 165,036 |   |   |   | 68,085 |   |   |   | 29,726 |   |   |   | 22,622 |   |   |   | 23,209 |   |
|                                                                                                                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Past      due (>      90 days) loans and accruing interest:                                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans      secured by real estate:                                                                                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial                                                                                                                                                                             |   |   | 1,623 |   |   |   | 113 |   |   |   | 1,380 |   |   |   | 739 |   |   |   | 1,609 |   |
| Residential      (including multi-family)                                                                                                                                              |   |   | 365 |   |   |   | 1,116 |   |   |   | 526 |   |   |   | 1,891 |   |   |   | 2,726 |   |
| Construction,      land development and                                                                                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    other      land                                                                                                                                                      |   |   | 2,293 |   |   |   | 2,531 |   |   |   | 1,116 |   |   |   | 864 |   |   |   | 80 |   |
| Total      loans secured by real estate                                                                                                                                                |   |   | 4,281 |   |   |   | 3,760 |   |   |   | 3,022 |   |   |   | 3,494 |   |   |   | 4,415 |   |
|         Commercial      and other business-purpose loans                                                                                       |   |   | 747 |   |   |   | 714 |   |   |   | 1,375 |   |   |   | 339 |   |   |   | 568 |   |
|         Consumer                                                                                                                               |   |   | 146 |   |   |   | 66 |   |   |   | 151 |   |   |   | 140 |   |   |   | 102 |   |
|         Other                                                                                                                                  |   |   | -- |   |   |   | 5 |   |   |   | -- |   |   |   | 137 |   |   |   | 177 |   |
| Total      past due loans                                                                                                                                                              |   |   | 5,174 |   |   |   | 4,545 |   |   |   | 4,548 |   |   |   | 4,110 |   |   |   | 5,262 |   |
|                                                                                                                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total      nonperforming loans                                                                                                                                                         |   | $ | 170,210 |   |   | $ | 72,630 |   |   | $ | 34,274 |   |   | $ | 26,732 |   |   | $ | 28,471 |   |
|                                                                                                                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Nonperforming      loans as a percentage                                                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    of      total portfolio loans                                                                                                                                        |   |   | 3.59 | % |   |   | 1.68 | % |   |   | 0.98 | % |   |   | 0.89 | % |   |   | 1.06 | % |
|                                                                                                                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Nonperforming      loans as a percentage                                                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    of      total assets                                                                                                                                                 |   |   | 3.01 | % |   |   | 1.48 | % |   |   | 0.84 | % |   |   | 0.77 | % |   |   | 0.92 | % |
|                                                                                                                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Allowance      for loan losses as a                                                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    percentage      of nonperforming loans                                                                                                                               |   |   | 54.66 | % |   |   | 80.03 | % |   |   | 132.50 | % |   |   | 151.72 | % |   |   | 131.97 | % |
|                                                                                                                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| In      addition to the identification of nonperforming loans involving borrowers      with payment performance difficulties (i.e., nonaccrual loans and loans      past               |   |
| due      90 days or more), management utilizes an internal loan review process to      identify other potential problem loans which may warrant additional      monitoring             |   |
| or      other attention. This loan review process is a continuous activity      which periodically updates internal loan classifications. At      inception, all loans are   |   |
| individually      assigned a classification which grades the credits on a risk basis, based      on the type and discounted value of collateral, financial      strength               |   |
| of      the borrower and guarantors and other factors such as nature of the      borrower's business climate, local economic conditions and other      subjective factors.             |   |
| The      loan classification process is fluid and subjective.                                                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Potential      problem loans include loans which are generally performing as agreed;      however, because of loan review's and/or lending staff's risk      assessment,               |   |
| increased      monitoring is deemed appropriate. In addition, some loans are      identified for monitoring because of specific performance issues or other      risk             |   |
| factors      requiring closer management and development of specific remedial action      plans.                                                                                       |   |   |   |   |
|                                                                                                                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| At      December 31, 2008, potential problem loans (which includes nonperforming      loans) approximated $551 million or about 12% of total      consolidated                         |   |
| portfolio      loans. Such totals have historically approximated 4% to 5% of loans      outstanding and are an important part of management's ongoing and      proactive          |   |
| loan      review activities which are designed to early-identify loans which warrant      close monitoring at the bank and corporate credit-administration      levels.                |   |
| During      2008, the amount of potential problem loans increased significantly as      management downgraded many credit relationships in response to the      impact                 |   |
| of      the recessionary environment and also as a result of growth in      nonpeforming loans. It is important to note that these potential      problem loans do not            |   |
| necessarily      have significant loss exposure (nor are they necessarily deemed      'impaired'), but rather are identified by management in this manner to aid      in loan          |   |
| administration      and risk management. These loans are considered in management's      evaluation of the adequacy of the allowance for loan    losses.                          |   |
|                                                                                                                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| The      table below summarizes activity in other real estate owned (in $1,000s)      for the year ended December 31:                                                                  |   |
|                                                                                                                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                   |   | 2008 |   |   | 2007 |   |   | 2006 |   |   | 2005 |   |   | 2004 |   |
|                                                                                                                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other      real estate owned at January 1                                                                                                                                              |   | $ | 16,357 |   |   | $ | 9,464 |   |   | $ | 3,733 |   |   | $ | 3,855 |   |   | $ | 4,248 |   |
|                                                                                                                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Properties      acquired in restructure of loans                                                                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| or      in lieu of foreclosure                                                                                                                                                         |   |   | 72,138 |   |   |   | 17,216 |   |   |   | 8,870 |   |   |   | 5,718 |   |   |   | 4,233 |   |
|                                                                                                                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Properties      sold                                                                                                                                                                   |   |   | (10,377 | ) |   |   | (10,021 | ) |   |   | (2,806 | ) |   |   | (4,440 | ) |   |   | (3,833 | ) |
|                                                                                                                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Payments      received from tenants, credited                                                                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| to      carrying amount                                                                                                                                                                |   |   | (2,278 | ) |   |   | (162 | ) |   |   | - |   |   |   | - |   |   |   | (552 | ) |
|                                                                                                                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other      changes, net (principally fair value                                                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| adjustments)                                                                                                                                                                           |   |   | (8,669 | ) |   |   | (140 | ) |   |   | (333 | ) |   |   | (1,400 | ) |   |   | (241 | ) |
|                                                                                                                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other      real estate owned at December 31                                                                                                                                            |   | $ | 67,171 |   |   | $ | 16,357 |   |   | $ | 9,464 |   |   | $ | 3,733 |   |   | $ | 3,855 |   |
|                                                                                                                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other      real estate owned is valued at estimated fair value (net of estimated      selling cost) at the date of transfer/acquisition. Management      performs a               |   |
| periodic      analysis of estimated fair values to determine potential impairment of      other real estate owned.                                                                     |   |

----

| SUMMARY      OF LOAN LOSS EXPERIENCE (TABLE E)                                                                                                              |   |   |      |   |   |   |      |   |   |   |      |   |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|-----------|--------|--------|--------|-----------|--------|--------|--------|-----------|--------|--------|
| CAPITOL      BANCORP LIMITED                                                                                                                                |   |   |      |   |   |   |      |   |   |   |      |   |   |   |   |
|                                                                                                                                                        |   |   |      |   |   |   |      |   |   |   |      |   |   |   |   |
| The      table below summarizes changes in the allowance for loan losses and      related portfolio data and ratios for the year ended December      31     |   |
| (in      $1,000s):                                                                                                                                          |   |   |      |   |   |   |      |   |   |   |      |   |   |   |   |
|                                                                                                                                                        |   |   |      |   |   |   |      |   |   |   |      |   |   |   |   |
|                                                                                                                                                        |   | 2008   |      |   | 2007   |   |      | 2006   |   |   | 2005      |   |   | 2004 |   |
|                                                                                                                                                        |   |   |      |   |   |   |      |   |   |   |      |   |   |   |   |
|                                                                                                                                                        |   |   |      |   |   |   |      |   |   |   |      |   |   |   |   |
| Allowance      for loan losses at January 1                                                                                                                 |   | $      | 58,124    |   |   | $      | 45,414    |   |   | $      | 40,559    |   |   | $ | 37,572 |   |   | $ | 31,404 |   |
|                                                                                                                                                        |   |   |      |   |   |   |      |   |   |   |      |   |   |   |   |   |   |   |   |   |
| Allowance      for loan losses of acquired                                                                                                                  |   |   |      |   |   |   |      |   |   |   |      |   |   |   |   |   |   |   |   |   |
|    bank      subsidiary                                                                                                                      |   |   |      |   |   |   |      |   |   |   |      |   |   |   |   |   |   |   | 724 |   |
|                                                                                                                                                        |   |   |      |   |   |   |      |   |   |   |      |   |   |   |   |   |   |   |   |   |
| Loans      charged off:                                                                                                                                     |   |   |      |   |   |   |      |   |   |   |      |   |   |   |   |   |   |   |   |   |
|     Loans      secured by real estate:                                                                                                  |   |   |      |   |   |   |      |   |   |   |      |   |   |   |   |   |   |   |   |   |
|       Commercial                                                                                                              |   |   | (9,217    | )      |   |   | (3,102    | )      |   |   | (2,737    | )      |   |   | (1,182 | ) |   |   | (827 | ) |
|       Residential      (including multi-family)                                                                               |   |   | (8,942    | )      |   |   | (3,265    | )      |   |   | (1,831    | )      |   |   | (2,348 | ) |   |   | (1,005 | ) |
|       Construction,      land development and                                                                                 |   |   |      |   |   |   |      |   |   |   |      |   |   |   |   |   |   |   |   |   |
|          other      land                                                                                       |   |   | (20,668   | )      |   |   | (1,192    | )      |   |   | (812      | )      |   |   | (346 | ) |   |   | (953 | ) |
| Total      loans secured by real estate                                                                                                                     |   |   | (38,827   | )      |   |   | (7,559    | )      |   |   | (5,380    | )      |   |   | (3,876 | ) |   |   | (2,785 | ) |
|     Commercial      and other business-purpose loans                                                                                    |   |   | (11,116   | )      |   |   | (6,257    | )      |   |   | (2,943    | )      |   |   | (4,988 | ) |   |   | (5,306 | ) |
|     Consumer                                                                                                                            |   |   | (461      | )      |   |   | (403      | )      |   |   | (255      | )      |   |   | (776 | ) |   |   | (277 | ) |
|     Other                                                                                                                               |   |   | (43       | )      |   |   | --        |   |   |   | (121      | )      |   |   | (3 | ) |   |   | (20 | ) |
| Total      charge-offs                                                                                                                                      |   |   | (50,447   | )      |   |   | (14,219   | )      |   |   | (8,699    | )      |   |   | (9,643 | ) |   |   | (8,388 | ) |
|                                                                                                                                                        |   |   |      |   |   |   |      |   |   |   |      |   |   |   |   |   |   |   |   |   |
| Recoveries:                                                                                                                                                 |   |   |      |   |   |   |      |   |   |   |      |   |   |   |   |   |   |   |   |   |
|     Loans      secured by real estate:                                                                                                  |   |   |      |   |   |   |      |   |   |   |      |   |   |   |   |   |   |   |   |   |
|       Commercial                                                                                                              |   |   | 986       |   |   |   | 70        |   |   |   | 66        |   |   |   | 20 |   |   |   | 111 |   |
|       Residential      (including multi-family)                                                                               |   |   | 648       |   |   |   | 226       |   |   |   | 213       |   |   |   | 601 |   |   |   | 99 |   |
|       Construction,      land development and                                                                                 |   |   |      |   |   |   |      |   |   |   |      |   |   |   |   |   |   |   |   |   |
|          other      land                                                                                       |   |   | 342       |   |   |   | 20        |   |   |   | 8         |   |   |   | 4 |   |   |   | -- |   |
| Total      loans secured by real estate                                                                                                                     |   |   | 1,976     |   |   |   | 316       |   |   |   | 287       |   |   |   | 625 |   |   |   | 210 |   |
|     Commercial      and other business-purpose loans                                                                                    |   |   | 798       |   |   |   | 1,101     |   |   |   | 896       |   |   |   | 758 |   |   |   | 832 |   |
|     Consumer                                                                                                                            |   |   | 97        |   |   |   | 165       |   |   |   | 215       |   |   |   | 287 |   |   |   | 80 |   |
|     Other                                                                                                                               |   |   | --        |   |   |   | 7         |   |   |   | --        |   |   |   | -- |   |   |   | 2 |   |
| Total      recoveries                                                                                                                                       |   |   | 2,871     |   |   |   | 1,589     |   |   |   | 1,398     |   |   |   | 1,670 |   |   |   | 1,124 |   |
| Net      charge-offs                                                                                                                                        |   |   | (47,576   | )      |   |   | (12,630   | )      |   |   | (7,301    | )      |   |   | (7,973 | ) |   |   | (7,264 | ) |
| Additions      to allowance charged to expense                                                                                                              |   |   | 82,492    |   |   |   | 25,340    |   |   |   | 12,156    |   |   |   | 10,960 |   |   |   | 12,708 |   |
|                                                                                                                                                        |   |   |      |   |   |   |      |   |   |   |      |   |   |   |   |   |   |   |   |   |
|           Allowance      for loan losses at December 31                                                   |   | $      | 93,040    |   |   | $      | 58,124    |   |   | $      | 45,414    |   |   | $ | 40,559 |   |   | $ | 37,572 |   |
|                                                                                                                                                        |   |   |      |   |   |   |      |   |   |   |      |   |   |   |   |   |   |   |   |   |
| Total      portfolio loans outstanding at December 31                                                                                                       |   | $      | 4,735,229 |   |   | $      | 4,314,701 |   |   | $      | 3,488,678 |   |   | $ | 2,991,189 |   |   | $ | 2,692,904 |   |
| Ratio      of allowance for loan losses to                                                                                                                  |   |   |      |   |   |   |      |   |   |   |      |   |   |   |   |   |   |   |   |   |
|    portfolio      loans outstanding                                                                                                          |   |   | 1.96      | %      |   |   | 1.35      | %      |   |   | 1.30      | %      |   |   | 1.36 | % |   |   | 1.40 | % |
|                                                                                                                                                        |   |   |      |   |   |   |      |   |   |   |      |   |   |   |   |   |   |   |   |   |
| Average      total portfolio loans for the year                                                                                                             |   | $      | 4,621,247 |   |   | $      | 3,840,526 |   |   | $      | 3,236,538 |   |   | $ | 2,834,973 |   |   | $ | 2,492,379 |   |
| Ratio      of net charge-offs to average                                                                                                                    |   |   |      |   |   |   |      |   |   |   |      |   |   |   |   |   |   |   |   |   |
|    portfolio      loans outstanding                                                                                                          |   |   | 1.03      | %      |   |   | 0.33      | %      |   |   | 0.23      | %      |   |   | 0.28 | % |   |   | 0.29 | % |
|                                                                                                                                                        |   |   |      |   |   |   |      |   |   |   |      |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                        |   |   |      |   |   |   |      |   |   |   |      |   |   |   |   |   |   |   |   |   |
| See      Item 7., Management's Discussion and Analysis of Financial Condition and      Results of Operations, for additional information regarding      the |   |
| allowance      for loan losses and description of factors which influence management's      judgment in determining the amount of the allowance for         |   |
| loan      losses at the balance-sheet date.                                                                                                                 |   |   |      |   |   |   |      |   |   |   |      |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                        |   |   |      |   |   |   |      |   |   |   |      |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                        |   |   |      |   |   |   |      |   |   |   |      |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                        |   |   |      |   |   |   |      |   |   |   |      |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                        |   |   |      |   |   |   |      |   |   |   |      |   |   |   |   |   |   |   |   |   |
| [The      remainder of this page intentionally leftblank]                                                                                                   |

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| SUMMARY      OF LOAN LOSS EXPERIENCE (TABLE E - CONTINUED)                                                                                                                                                                                                                                                      |   |   |      |                    |   |   |   |   |                    |      |   |   |   |                    |   |   |      |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|-----------|-------------------------|--------|--------|--------|--------|-------------------------|-----------|--------|--------|--------|-------------------------|--------|--------|-----------|--------|
| CAPITOL      BANCORP LIMITED                                                                                                                                                                                                                                                                                    |   |   |      |                    |   |   |   |   |                    |      |   |   |   |                    |   |   |      |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                            |   |   |      |                    |   |   |   |   |                    |      |   |   |   |                    |   |   |      |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                            |   |   |      |                    |   |   |   |   |                    |      |   |   |   |                    |   |   |      |   |   |   |   |   |   |   |   |
| The      amounts of the allowance for loan losses allocated in the following table      (in $1,000s), as of December 31, are based on management's estimate of      losses inherent in the portfolio at the balance sheet date, and      should not be interpreted as an indication of future      charge-offs: |
|                                                                                                                                                                                                                                                                                                            |   |   |      |                    |   |   |   |   |                    |      |   |   |   |                    |   |   |      |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                            |   | 2008   |      |                    | 2007   |   |   | 2006   |                    |      | 2005   |   |   | 2004                    |   |
|                                                                                                                                                                                                                                                                                                            |   | Amount |      | Percentageof      Loans |   |   | Amount |   | Percentageof      Loans |      |   | Amount |   | Percentageof      Loans |   |   | Amount    |   | Percentageof      Loans |   |   | Amount |   | Percentageof      Loans |   |
|                                                                                                                                                                                                                                                                                                            |   |   |      |                    |   |   |   |   |                    |      |   |   |   |                    |   |   |      |   |   |   |   |   |   |   |   |
| Loans      secured by real estate:                                                                                                                                                                                                                                                                              |   |   |      |                    |   |   |   |   |                    |      |   |   |   |                    |   |   |      |   |   |   |   |   |   |
|     Commercial                                                                                                                                                                                                                                                                              |   | $      | 30,007    |                    |   | 0.63   | %      |   | $                       | 21,918    |   |   | 0.51   | %                       |   | $      | 17,886    |   |   | 0.51 | % |   | $ | 18,337 |   |   | 0.61 | % |   | $ | 16,570 |   |   | 0.61 | % |
|     Residential      (including multi-family)                                                                                                                                                                                                                                               |   |   | 21,645    |                    |   | 0.46   | %      |   |                    | 10,235    |   |   | 0.24   | %                       |   |   | 7,234     |   |   | 0.21 | % |   |   | 6,805 |   |   | 0.23 | % |   |   | 6,796 |   |   | 0.25 | % |
| Construction,      land development and                                                                                                                                                                                                                                                                         |   |   |      |                    |   |   |   |   |                    |      |   |   |   |                    |   |   |      |   |   |   |   |   |   |   |   |   |   |   |   |
|        other      land                                                                                                                                                                                                                                                       |   |   | 17,496    |                    |   | 0.37   | %      |   |                    | 11,278    |   |   | 0.26   | %                       |   |   | 8,471     |   |   | 0.24 | % |   |   | 7,853 |   |   | 0.26 | % |   |   | 6,964 |   |   | 0.26 | % |
| Total      loans secured by real estate                                                                                                                                                                                                                                                                         |   |   | 69,148    |                    |   | 1.46   | %      |   |                    | 43,431    |   |   | 1.01   | %                       |   |   | 33,591    |   |   | 0.96 | % |   |   | 32,995 |   |   | 1.10 | % |   |   | 30,330 |   |   | 1.12 | % |
|                                                                                                                                                                                                                                                                                                            |   |   |      |                    |   |   |   |   |                    |      |   |   |   |                    |   |   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial      and other business-purpose                                                                                                                                                                                                                                                                      |   |   |      |                    |   |   |   |   |                    |      |   |   |   |                    |   |   |      |   |   |   |   |   |   |   |   |   |   |   |   |
|    loans                                                                                                                                                                                                                                                                                         |   |   | 22,547    |                    |   | 0.47   | %      |   |                    | 13,727    |   |   | 0.32   | %                       |   |   | 11,112    |   |   | 0.32 | % |   |   | 6,943 |   |   | 0.23 | % |   |   | 6,624 |   |   | 0.25 | % |
| Consumer                                                                                                                                                                                                                                                                                                        |   |   | 1,032     |                    |   | 0.02   | %      |   |                    | 667       |   |   | 0.01   | %                       |   |   | 558       |   |   | 0.02 | % |   |   | 510 |   |   | 0.02 | % |   |   | 460 |   |   | 0.02 | % |
| Other                                                                                                                                                                                                                                                                                                           |   |   | 313       |                    |   | 0.01   | %      |   |                    | 299       |   |   | 0.01   | %                       |   |   | 153       |   |   | 0.00 | % |   |   | 111 |   |   | 0.01 | % |   |   | 158 |   |   | 0.01 | % |
|                                                                                                                                                                                                                                                                                                            |   |   |      |                    |   |   |   |   |                    |      |   |   |   |                    |   |   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total      allowance for loan losses                                                                                                                                                                                                                                                                            |   | $      | 93,040    |                    |   | 1.96   | %      |   | $                       | 58,124    |   |   | 1.35   | %                       |   | $      | 45,414    |   |   | 1.30 | % |   | $ | 40,559 |   |   | 1.36 | % |   | $ | 37,572 |   |   | 1.40 | % |
|                                                                                                                                                                                                                                                                                                            |   |   |      |                    |   |   |   |   |                    |      |   |   |   |                    |   |   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total      portfolio loans outstanding                                                                                                                                                                                                                                                                          |   | $      | 4,735,229 |                    |   |   |   |   | $                       | 4,314,701 |   |   |   |                    |   | $      | 3,488,678 |   |   |   |   |   | $ | 2,991,189 |   |   |   |   |   | $ | 2,692,904 |   |   |   |   |
|                                                                                                                                                                                                                                                                                                            |   |   |      |                    |   |   |   |   |                    |      |   |   |   |                    |   |   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                            |   |   |      |                    |   |   |   |   |                    |      |   |   |   |                    |   |   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                            |   |   |      |                    |   |   |   |   |                    |      |   |   |   |                    |   |   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                            |   |   |      |                    |   |   |   |   |                    |      |   |   |   |                    |   |   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                            |   |   |      |                    |   |   |   |   |                    |      |   |   |   |                    |   |   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                            |   |   |      |                    |   |   |   |   |                    |      |   |   |   |                    |   |   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| [The      remainder of this page intentionally leftblank]                                                                                                                                                                                                                                                       |

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| AVERAGE      DEPOSITS (TABLE F)                                                                                                    |   |   |      |   |   |    |   |   |   |   |    |      |    |   |   |   |   |   |    |    |      |
|------------------------------------------------------------------------------------------------------------------------------------|--------|--------|-----------|--------|--------|---------|--------|--------|--------|--------|---------|-----------|---------|--------|--------|--------|--------|--------|---------|---------|-----------|
| CAPITOL      BANCORP LIMITED                                                                                                       |   |   |      |   |   |    |   |   |   |   |    |      |    |   |   |   |   |   |    |    |      |
|                                                                                                                               |   |   |      |   |   |    |   |   |   |   |    |      |    |   |   |   |   |   |    |    |      |
|                                                                                                                               |   |   |      |   |   |    |   |   |   |   |    |      |    |   |   |   |   |   |    |    |      |
|                                                                                                                               |   |   |      |   |   |    |   |   |   |   |    |      |    |   |   |   |   |   |    |    |      |
| The      table below summarizes the average balances of deposits (in $1,000s) and      the average rates of interest for the years |   |   |      |   |   |
| ended      December 31:                                                                                                            |   |   |      |   |   |    |   |   |   |   |    |      |    |   |   |   |   |   |    |    |      |
|                                                                                                                               |   |   |      |   |   |    |   |   |   |   |    |      |    |   |   |   |   |   |    |    |      |
|                                                                                                                               |   | 2008   |      |   | 2007   |    |   | 2006   |   |
|                                                                                                                               |   |   |      |   |   | Average |   |   |   |   |    |      | Average |   |   |   |   |   |    | Average |      |
|                                                                                                                               |   | Amount |      |   |   | Rate    |   |   | Amount |   |    |      | Rate    |   |   | Amount |   |   |    | Rate    |      |
|                                                                                                                               |   |   |      |   |   |    |   |   |   |   |    |      |    |   |   |   |   |   |    |    |      |
| Noninterest-bearing      demand deposits                                                                                           |   | $      | 661,578   |   |   |    |   |   |   | $      | 628,345 |      |    |   |   |   |   | $      | 614,529 |    |      |   |   |   |
| Savings      deposits                                                                                                              |   |   | 89,025    |   |   |    |   | 1.68   | %      |   |    | 83,632    |    |   |   |   | 2.74   | %      |    |    | 59,985    |   |   |   |   | 1.64 | % |
| Time      deposits under $100,000                                                                                                  |   |   | 1,029,914 |   |   |    |   | 3.57   | %      |   |    | 569,773   |    |   |   |   | 4.92   | %      |    |    | 429,108   |   |   |   |   | 4.19 | % |
| Time      deposits $100,000 and over                                                                                               |   |   | 1,199,988 |   |   |    |   | 4.17   | %      |   |    | 1,031,011 |    |   |   |   | 5.12   | %      |    |    | 889,769   |   |   |   |   | 4.28 | % |
| Other      interest-bearing deposits                                                                                               |   |   | 1,236,841 |   |   |    |   | 1.94   | %      |   |    | 1,227,480 |    |   |   |   | 3.34   | %      |    |    | 1,066,109 |   |   |   |   | 2.96 | % |
|                                                                                                                               |   |   |      |   |   |    |   |   |   |   |    |      |    |   |   |   |   |   |    |    |      |   |   |   |   |   |   |
| Total      deposits                                                                                                                |   | $      | 4,217,346 |   |   |    |   |   |   |   | $       | 3,540,241 |    |   |   |   |   |   |    | $       | 3,059,500 |   |   |   |   |   |   |
|                                                                                                                               |   |   |      |   |   |    |   |   |   |   |    |      |    |   |   |   |   |   |    |    |      |   |   |   |   |   |   |
|                                                                                                                               |   |   |      |   |   |    |   |   |   |   |    |      |    |   |   |   |   |   |    |    |      |   |   |   |   |   |   |
|                                                                                                                               |   |   |      |   |   |    |   |   |   |   |    |      |    |   |   |   |   |   |    |    |      |   |   |   |   |   |   |
|                                                                                                                               |   |   |      |   |   |    |   |   |   |   |    |      |    |   |   |   |   |   |    |    |      |   |   |   |   |   |   |
| The      table below shows the amount of time certificates of deposit issued in      amounts of $100,000 or more, by time          |   |   |      |   |   |    |
| remaining      until maturity, which were outstanding at December 31, 2008 (in      $1,000s):                                      |   |   |      |   |   |    |   |   |   |   |    |      |    |   |   |
|                                                                                                                               |   |   |      |   |   |    |   |   |   |   |    |      |    |   |   |   |   |   |    |    |      |   |   |   |   |   |   |
| Three      months or less                                                                                                          |   | $      | 529,821   |   |   |    |   |   |
| Over      three months to six months                                                                                               |   |   | 271,356   |   |   |    |   |   |   |   |    |      |    |   |   |   |   |   |    |    |      |   |   |   |   |   |   |
| Over      six months to twelve months                                                                                              |   |   | 403,861   |   |   |    |   |   |
| Over      12 months                                                                                                                |   |   | 200,397   |   |   |    |   |   |   |   |    |      |    |   |   |   |   |   |    |    |      |   |   |   |   |   |   |
|                                                                                                                               |   |   |      |   |   |    |   |   |
| Total                                                                                                                              |   | $      | 1,405,435 |   |   |    |   |   |   |   |    |      |    |   |   |   |   |   |    |    |      |   |   |   |   |   |   |
|                                                                                                                               |   |   |      |   |   |    |   |   |   |   |    |      |    |   |   |   |   |   |    |    |      |   |   |   |   |   |   |
|                                                                                                                               |   |   |      |   |   |    |   |   |   |   |    |      |    |   |   |   |   |   |    |    |      |   |   |   |   |   |   |
|                                                                                                                               |   |   |      |   |   |    |   |   |   |   |    |      |    |   |   |   |   |   |    |    |      |   |   |   |   |   |   |
| [The      remainder of this page intentionally leftblank]                                                                          |

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| FINANCIAL      RATIOS (TABLE G)                                                           |   |                        |   |   |   |   |   |   |   |
|-------------------------------------------------------------------------------------------|--------|-----------------------------|--------|--------|--------|--------|--------|--------|--------|
| CAPITOL      BANCORP LIMITED                                                              |   |                        |   |   |   |   |   |   |   |
|                                                                                      |   |                        |   |   |   |   |   |   |   |
|                                                                                      |   |                        |   |   |   |   |   |   |   |
|                                                                                      |   |                        |   |   |   |   |   |   |   |
|                                                                                      |   | Year      Ended December 31 |   |
|                                                                                      |   | 2008                        |   |   | 2007   |   |   | 2006   |   |
|                                                                                      |   |                        |   |   |   |   |   |   |   |
| Net      income (loss) as a percentage of:                                                |   |                        |   |   |   |   |   |   |   |
|    Average      stockholders' equity                                       |   |                        | (7.71  | )%     |   |   | 5.72   | %      |   |   | 12.94 | % |
|    Average      total assets                                               |   |                        | (0.53  | )%     |   |   | 0.49   | %      |   |   | 1.12 | % |
|                                                                                      |   |                        |   |   |   |   |   |   |   |   |   |   |
| Capital      ratios:                                                                      |   |                        |   |   |   |   |   |   |   |   |   |   |
|    Average      stockholders' equity as a                                  |   |                        |   |   |   |   |   |   |   |   |   |   |
|       percentage      of average total assets               |   |                        | 6.91   | %      |   |   | 8.61   | %      |   |   | 8.63 | % |
|    Average      total equity (stockholders' equity and                     |   |                        |   |   |   |   |   |   |   |   |   |   |
|       minority      interests in consolidated subsidiaries) |   |                        |   |   |   |   |   |   |   |   |   |   |
|       as      a percentage of average total assets          |   |                        | 9.95   | %      |   |   | 11.60  | %      |   |   | 11.52 | % |
|    Average      total capital funds (stockholders'                         |   |                        |   |   |   |   |   |   |   |   |   |   |
|       equity,      minority interests in consolidated       |   |                        |   |   |   |   |   |   |   |   |   |   |
|       subsidiaries      and subordinated debentures)        |   |                        |   |   |   |   |   |   |   |   |   |   |
|       as      a percentage of average total assets          |   |                        | 12.98  | %      |   |   | 14.82  | %      |   |   | 14.18 | % |
|                                                                                      |   |                        |   |   |   |   |   |   |   |   |   |   |
| Dividend      payout ratio (cash dividends per share                                      |   |                        |   |   |   |   |   |   |   |   |   |   |
|    as      a percentage of net income (loss) per share):                   |   |                        |   |   |   |   |   |   |   |   |   |   |
|        Basic                                           |   |                        | N/A    |   |   |   | 77.52  | %      |   |   | 35.32 | % |
|        Diluted                                         |   |                        | N/A    |   |   |   | 78.74  | %      |   |   | 36.96 | % |
|                                                                                      |   |                        |   |   |   |   |   |   |   |   |   |   |
|                                                                                      |   |                        |   |   |   |   |   |   |   |   |   |   |
| N/A      - Not applicable                                                                 |   |                        |   |   |   |   |   |   |   |   |   |   |
|                                                                                      |   |                        |   |   |   |   |   |   |   |   |   |   |
|                                                                                      |   |                        |   |   |   |   |   |   |   |   |   |   |
|                                                                                      |   |                        |   |   |   |   |   |   |   |   |   |   |
| [The      remainder of this page intentionally leftblank]                                 |

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| ·  | transaction      processing;                                              |
|--------------|---------------------------------------------------------------------------|
| ·  | operational      and financial management; and                            |
| ·  | training,      integrating and managing Capitol's growing employee  base. |

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| ·  | adequate      capital and financial condition;                               |
|--------------|------------------------------------------------------------------------------|
| ·  | permissible      types and amounts of extensions of credit and  investments; |
| ·  | permissible      nonbanking activities; and                                  |
| ·  | restrictions      on dividend payments.                                      |

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| ·  | the      preferred stock issued to the U.S. Treasury would pay 5% dividends for the      first five years, and then 9% dividends thereafter;                                                                                                                                     |
|--------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ·  | in      connection with the purchase of preferred stock, the U.S. Treasury will      receive warrants entitling the U.S. Treasury to buy the participating      institution's common stock equivalent in value to 15% of the preferred      stock;                               |
| ·  | the      preferred stock may not be redeemed for a period of three years, except      with proceeds from high-quality private capital;                                                                                                                                           |
| ·  | the      consent of the U.S. Treasury will be required to increase common dividends      per share or any share repurchases, with limited exceptions, during the      first three years, unless the preferred stock has been redeemed or      transferred to third parties; and  |
| ·  | participating      companies must adopt the U.S Treasury's standards for executive      compensation and corporate governance for the period during which the U.S.      Treasury holds the equity issued under the TARP.                                                         |

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|   |   |                                                                                                                                                           |   | Votes  |                   |               | Votes   |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|------------------------|--------------------|---------|
|   |   |                                                                                                                                                           |   | For    |                   |               | Against |
|   |   |                                                                                                                                                           |   |   |                   |               |    |
| 1.     |   | To      act on a proposed amendment to Capitol's Articles of Incorporation to      authorizeissuance      of up to 20,000,000 shares of preferred stock.  |   |   |  8,940,856        |               |    |   |  2,801,397 |
|   |   | Abstentions      :                                                                                                                                             | 31,724 |   | Broker      Non-Votes: | None      reported |    |   |   |   |   |   |   |
|   |   |                                                                                                                                                           |   |   |                   |               |    |   |   |
|   |   |                                                                                                                                                           |   | Votes  |                   |               | Votes   |
|   |   |                                                                                                                                                           |   | For    |                   |               | Against |
|   |   |                                                                                                                                                           |   |   |                   |               |    |   |   |
| 2.     |   | To      grant management the authority to adjourn, postpone or continue the      special meeting.                                                         |   |   | 8,960,750              |               |    |   | 2,783,175 |
|   |   | Abstentions      :                                                                                                                                             | 30,053 |   | Broker      Non-Votes: | None      reported |    |   |   |   |   |   |   |

----

|                                                          |   | (a)                                                                                                                    |          |   | (b)                                                                                        |   |        | (c)                                                                                                                                                                  |
|--------------------------------------------------------------------|--------|------------------------------------------------------------------------------------------------------------------------|---------------|--------|--------------------------------------------------------------------------------------------|--------|-------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Plan      category                                                 |   |  Number      of securities tobe      issued upon exerciseof      outstanding options,warrants      and rights (1) |          |   | Weighted-averageexercise      price ofoutstanding optionswarrants      and rights (1) |   |        | Number      of securitiesremaining      available forfuture      issuance under equitycompensation      plans(excluding      securities reflectedin      column (a)) |
|                                                               |   |                                                                                                                   |          |   |                                                                                       |   |        |                                                                                                                                                                 |
| Equity      compensation plans approved by security holders*       |   |                                                                                                                   | 1,947,590     |   |                                                                                       | $      | 29.87       |                                                                                                                                                                 |   |   | 44,988 |
| Equity      compensation plans not approved by security holders(1) |   |                                                                                                                   | 44,830        |   |                                                                                       |   | 20.95       |                                                                                                                                                                 |   |   | -- |
| Equity      compensation plans resulting from share exchanges      |   |                                                                                                                   |  381,739 |   |                                                                                       |   |  21.04 |                                                                                                                                                                 |   |   |  -- |
|                                                               |   |                                                                                                                   |          |   |                                                                                       |   |        |                                                                                                                                                                 |   |   |   |
| Total                                                              |   |                                                                                                                   | 2,374,159     |   |                                                                                       | $      | 28.28       |                                                                                                                                                                 |   |   | 44,988 |

| (1)     | Stock      options issued pursuant to employment agreements with various officers of      Capitol and its subsidiaries.                                                                                                                                                                                                                                                                                                                                                                                        |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  * | Does      not include shares that may be issued if Capitol elects to pay awards made      under the Capitol Bancorp Ltd. Management Incentive Plan in the form of      shares of Capitol's common stock.  Also does not include shares      that were approved to be issued under the 2007 Incentive Plan, which      includes a provision increasing the shares available for the plan in an      amount equal to 2% of the outstanding shares of common stock as of      December 31 of each year. |

| E. | Performance      Graph.  Incorporated by reference from Page F-3, Financial      Information Section of Annual Report, under the caption "Information      Regarding Capitol's Common Stock." |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| G. | 42,833      shares of Capitol's common stock subject to a restricted stock award made      to Joseph D. Reid, Capitol's Chairman and CEO, pursuant to the terms of      the Capitol Bancorp Limited Management Incentive Plan vested on January 1,      2008, resulting from the satisfaction of certain performance      targets.  The shares were not registered under the Securities      Act of 1933. |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| CAPITOL      BANCORP LTD.RegistrantBy:  /s/ Joseph D.      Reid                                                     Joseph D. ReidChairman andChief Executive      Officer |   By:  /s/ Lee W.      Hendrickson                                               Lee W. HendricksonChief Financial      Officer(Principal Financial      andAccounting    Officer) |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| /s/ Joseph D.      Reid                                                              Joseph      D. Reid, Chairman,Chief      Executive Officer and Director  | /s/ Michael F.      Hannley                                                    Michael      F. Hannley, Director                                                                                                    |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| /s/ David      O'Leary                                                               David      O'Leary, Secretary and Director                                    | /s/ Richard A.      Henderson                                                    Richard      A. Henderson, Director                                                                                                                         |
| /s/ Paul R.      Ballard                                                               Paul      R. Ballard, Director                                              | ________________________________Lewis      D. Johns, Director                                                                                                                                                                                                                                                                                                                                                                                   |
| /s/ David L.      Becker                                                                  David      L. Becker, Director                                                     | /s/ Michael L.      Kasten                                                      Michael      L. Kasten, Vice Chairman andDirector                                                                         |
| /s/ Michael J.      Devine                                                         Michael      J. Devine, Director                                                                         | /s/ John S.      Lewis                                                                   John      S. Lewis, President of BankPerformance      and Director  |
| /s/ James C.      Epolito                                                      James      C. Epolito, Director                                                               | /s/ Steven L.      Maas                                                                Steven      L. Maas, Director                                                             |
| /s/ Gary A.      Falkenberg                                                 Gary      A. Falkenberg, Director                                                                                         | /s/ Lyle W.      Miller                                                             Lyle      W. Miller, Vice Chairman andDirector                           |
| _______________________________Joel      I. Ferguson, Director                                                                                                                                                                                                                                                                                                                                                          | /s/ Myrl D.      Nofziger                                                         Myrl      D. Nofziger, Director                                                                     |
| /s/ Kathleen A.      Gaskin                                                 Kathleen      A. Gaskin, Director                                                                                         | /s/ Cristin K.      Reid                                                             Cristin      K. Reid, Corporate President andDirector                        |
| /s/ H. Nicholas      Genova                                                H.      Nicholas Genova, Director                                                                                               | /s/ Ronald K.      Sable                                                           Ronald      K. Sable,Director                                                                 |

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|   Exhibit No. |   |   Description                                                                                                                                                                                                                                                                       | Page      Number orIncorporated      byReference from:                                               |
|-------------------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------|
|                    |   |                                                                                                                                                                                                                                                                                          |                                                                                                 |
| 3                       |   | Articles      of Incorporation (as amended) and Bylaws (as amended)                                                                                                                                                                                                                           |  (1)      (22) (24)(28)                                                                         |
| 4                       |   | Instruments      Defining the Rights of Security Holders                                                                                                                                                                                                                                      |                                                                                                 |
|                    | (a)    | Common      Stock Certificate                                                                                                                                                                                                                                                                 |                 (1)  |
|                    | (b)    | Indenture      dated December 18, 1997                                                                                                                                                                                                                                                        |               (11)             |
|                    | (c)    | Subordinated      Debenture                                                                                                                                                                                                                                                                   |               (11)             |
|                    | (d)    | Amended      and Restated Trust Agreement dated December 18, 1997                                                                                                                                                                                                                             |               (11)             |
|                    | (e)    | Preferred      Security Certificate dated December 18, 1997                                                                                                                                                                                                                                   |               (11)             |
|                    | (f)    | Preferred      Securities Guarantee Agreement of Capitol Trust I dated December 18,      1997                                                                                                                                                                                                 |               (11)             |
|                    | (g)    | Agreement      as to Expenses and Liabilities of Capitol Trust I                                                                                                                                                                                                                              |               (11)             |
|                    | (h)    | Capitol      Bancorp Ltd. 2000 Incentive Stock Plan                                                                                                                                                                                                                                           |               (18)             |
|                    | (i)    | Form      of Indenture for Junior Subordinated Debt Securitiesrelating      to Capitol Trust XII                                                                                                                                                                                              |               (27)             |
|                    | (j)    | Form      of Amended and Restated Trust Agreement for CapitolTrust      XII                                                                                                                                                                                                                   |               (27)             |
|                    | (k)    | Form      of Preferred Securities Guarantee Agreement for CapitolTrust      XII                                                                                                                                                                                                               |               (27)             |
|                    | (l)    | Form      of Warrant to Purchase Common Stock                                                                                                                                                                                                                                                 |               (29)             |
| 10                      |   | Material      Contracts:                                                                                                                                                                                                                                                                      |                                                                                                 |
|                    |   | Capitol      Bancorp Limited 2003 Stock Plan*                                                                                                                                                                                                                                                 |        (20)      (22)                                             |
|                    |   | Form      of Stock Option Agreement for Awards pursuant to CapitolBancorp      Limited 2003 Stock Plan*                                                                                                                                                                                       |               (20)             |
|                    | (a)    | Amended      and Restated Employment Agreement of Joseph D. Reid(dated      March 17, 2003 and amendment dated April 17, 2003)*                                                                                                                                                               |               (19)             |
|                    | (b)    | Profit      Sharing/401(k) Plan (as amended and restated April 1,1995)*                                                                                                                                                                                                                       |               (10)             |
|                    | (b1)   | First      and Second Amendments to Profit Sharing/401(k) Plan*                                                                                                                                                                                                                               |               (12)             |
|                    | (b2)   | Third,      Fourth and Fifth Amendments to Profit Sharing/401(k)Plan*                                                                                                                                                                                                                         |               (14)             |
|                    | (b3)   | Sixth,      Seventh, Eighth and Ninth Amendments to ProfitSharing/401(k)      Plan*                                                                                                                                                                                                           |               (15)             |
|                    | (b4)   | Tenth,      Eleventh, Twelfth, Thirteenth, Fourteenth and Fifteenth Amendments to      Profit Sharing/401(k) Plan*                                                                                                                                                                            |               (17)             |
|                    | (b5)   | Sixteenth      and Seventeenth Amendments to Profit Sharing/401(k)Plan*                                                                                                                                                                                                                       |               (18)             |
|                    | (b6)   | Eighteenth,      Nineteenth and Twentieth Amendments to ProfitSharing/401(k)      Plan*                                                                                                                                                                                                       |               (21)             |
|                    | (b7)   | Twenty-First,      Twenty-Second, Twenty-Third, Twenty-Fourth,Twenty-Fifth      and Twenty-Sixth Amendments to ProfitSharing/401(k)      Plan*                                                                                                                                                |                (23)       |
|                    | (b8)   | Twenty-Seventh,      Twenty-Eighth, Twenty-Ninth, Thirtieth, Thirty-First,      Thirty-Second, Thirty-Third, Thirty-Fourth, Thirty-Fifth,Thirty-Sixth,      Thirty-Seventh, Thirty-Eighth, Thirty-Ninth, Fortieth,Forty-First      and Forty-Second Amendments to Profit Sharing/401(k) Plan* |                 (25) |

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|   Exhibit No. |        |   Description                                                                                                                                                                                                              | Page      Number orIncorporated      byReference from:                                              |
|-------------------------|-------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------|
|                    |        |                                                                                                                                                                                                                                 |                                                                                                |
| 10                 |        | Material      Contracts—continued:                                                                                                                                                                                             |                                                                                                |
|                    | (b9)   | Forty-Third,      Forty-Fourth, Forty-Fifth, Forty-Sixth, Forty-Seventh,Forty-Eighth, Forty-Ninth, Fiftieth, Fifty-First,      Fifty-Second, Fifty-Third, Fifty-Fourth and Fifty-Fifth Amendments to      ProfitSharing/401(k) Plan* |                     (26)      |
|                    | (b10)  | Fifty-Sixth,      Fifty-Seventh, Fifty-Eighth, Fifty-Ninth, Sixtieth,Sixty-First and Sixty-Second Amendments to Profit      Sharing/401(k)Plan*                                                                                      |                                                                                                |
|                    | (c)         | Lease      Agreement with Business & Trade Center, Ltd.                                                                                                                                                                          |                 (9) |
|                    | (d)         | Capitol      Bancorp Ltd Employee Stock Ownership Plan (as amendedand      restated January 1, 2008) and Amendment No. 1 thereto*                                                                                                    |               (26)            |
|                    | (d1)        | Second      Amendment to Capitol Bancorp Ltd Employee StockOwnership      Plan*                                                                                                                                                      |                                                                                                |
|                    | (e)         | Employment      Agreements with John C. Smythe and Charles J.McDonald*                                                                                                                                                               |                 (2) |
|                    | (f)         | Executive      Supplemental Income Agreements with Paul R. Ballard,Richard      G. Dorner, James R. Kaye, Scott G. Kling, David K.Powers,      John C. Smythe and Charles J. McDonald*                                               |                (10)      |
|                    | (g)         | Consolidation      Agreement between the Corporation and PortageCommerce      Bank                                                                                                                                                   |                 (4) |
|                    | (h)         | Employment      Agreement with Richard G. Dorner*                                                                                                                                                                                    |                 (4) |
|                    | (i)         | Employment      Agreement with David K. Powers*                                                                                                                                                                                      |                 (5) |
|                    | (j)         | Definitive      Exchange Agreement and Closing Memorandumbetween      Capitol and United Savings Bank, FSB                                                                                                                           |                 (6) |
|                    | (k)         | Employment      Agreement with James R. Kaye*                                                                                                                                                                                        |                 (7) |
|                    | (l)         | Definitive      Exchange Agreement between the Registrant andFinancial      Center Corporation                                                                                                                                       |                 (8) |
|                    | (m)         | Capitol      Bancorp Ltd. Management Incentive Plan*                                                                                                                                                                                 |               (22)            |
|                    | (n)         | Employment      Agreement by and between Sun Community BancorpLimited      and John S. Lewis.  (Exhibit 10.7 of Sun CommunityBancorp      Limited)*                                                                        |                (13)      |
|                    | (o)         | Anti-dilution      Agreement by and between Sun Community BancorpLimited      and Capitol Bancorp Ltd.  (Exhibit 10.10 of SunCommunity      Bancorp Limited)                                                               |                (13)      |
|                    | (p)         | Plan      of Share Exchange dated November 16, 2001 between andamong      Capitol Bancorp Ltd. and Sun Community Bancorp Limited                                                                                                     |               (16)            |
|                    | (q)         | Restricted      Stock Agreement between Capitol Bancorp Ltd. andJoseph      D. Reid*                                                                                                                                                 |               (23)            |
|                    | (r)         | Form      of Employment Agreement with Cristin K. Reid and BruceThomas      (and, effective March 2008, Lee W. Hendrickson and JohnS.      Lewis)*                                                                                   |                (23)      |
|                    | (s)         | Second      Amendment to Employment Agreement with Joseph D.Reid      (dated March 14, 2007)*                                                                                                                                        |                                                                                                |
| 13                      |        | Annual      Report to Security HoldersA.       Marketing      Section of 2008 Annual ReportB.       Financial      Information Section of 2008 Annual Report   |                                                                                                |

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|   Exhibit No. |   |   Description                                                                                                           | Page      Number orIncorporated      byReference from: |
|-------------------------|--------|-----------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------|
|                    |   |                                                                                                                              |                                                   |
| 21                 |   | Subsidiaries      of the Registrant                                                                                          |                                                   |
| 23                 |   | Consent      of BDO Seidman, LLP                                                                                             |                                                   |
| 31.1                    |   | Certification      of Chief Executive Officer, Joseph D. Reid,pursuant      to Section 302of the Sarbanes-Oxley Act of 2002.      |                                                   |
| 31.2                    |   | Certification      of Chief Financial Officer, Lee W. Hendrickson,pursuant      to Section 302 of the Sarbanes-Oxley Act of 2002. |                                                   |
| 32.1                    |   | Certification      of Chief Executive Officer, Joseph D. Reid, pursuantto      Section 906 of the Sarbanes-Oxley Act of 2002.     |                                                   |
| 32.2                    |   | Certification      of Chief Financial Officer, Lee W. Hendrickson,pursuant      to Section 906of the Sarbanes-Oxley Act of 2002.  |                                                   |

| Key:          |                                                                                                                                                                                                                                                                                                      |
|---------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (1)           | Form      S-18, Reg. No. 33-24728C, filed September 15, 1988.                                                                                                                                                                                                                                             |
| (2)           | Form      S-1, Reg. No. 33-30492, filed August 14, 1989.                                                                                                                                                                                                                                                  |
| (3)           | Form      S-1, Reg. No. 33-31323, filed September 29, 1989.                                                                                                                                                                                                                                               |
| (4)           | Originally      filed as exhibit to Form 10-K for year ended December 31, 1990, filed      March 6, 1991; refiled as exhibit to Form 10-KSB for year ended December      31, 1995, filed March 14, 1996, due to time limit for      incorporation by reference pursuant to Regulation SB Item      10(f). |
| (5)           | Form      10-K for year ended December 31, 1991, filed February 28,      1992.                                                                                                                                                                                                                            |
| (6)           | Form      8-K dated July 15, 1992, as amended under Form 8-K on September 14,      1992.                                                                                                                                                                                                                  |
| (7)           | Form      10-KSB for year ended December 31, 1992, filed February 25,      1993.                                                                                                                                                                                                                          |
| (8)           | Form      S-4, Reg. No. 33-73474, filed December 27, 1993.                                                                                                                                                                                                                                                |
| (9)           | Form      10-KSB for year ended December 31, 1993, filed March 14,    1994.                                                                                                                                                                                                                               |
| (10)          | Form      10-KSB for the year ended December 31, 1995, filed March 14,      1996.                                                                                                                                                                                                                         |
| (11)          | Post      Effective Amendment No.1 to Form S-3, Reg. No. 333-41215 and 333-41215-01      filed February 9, 1998.                                                                                                                                                                                          |
| (12)          | Form      10-K for year ended December 31, 1998, filed March 17,    1999.                                                                                                                                                                                                                                 |
| (13)          | Amendment      No. 2 to the Registration Statement on Form S-1 of Sun Community Bancorp      Limited (Registration No. 333-76719) dated June 15,  1999.                                                                                                                                                   |
| (14)          | Form      10-K for year ended December 31, 1999, filed March 27,    2000.                                                                                                                                                                                                                                 |
| (15)          | Form      10-K for year ended December 31, 2000, filed March 23,    2001.                                                                                                                                                                                                                                 |
| (16)          | Amendment      No. 4 to the Registration Statement on Form S-4 Reg. No. 333-73624 filed      February 12, 2002.                                                                                                                                                                                           |
| (17)          | Form      10-K for year ended December 31, 2001, filed March 15,    2002.                                                                                                                                                                                                                                 |
| (18)          | Form      10-K for year ended December 31, 2002, filed March 28,    2003.                                                                                                                                                                                                                                 |
| (19)          | Form      10-Q for the period ended March 31, 2003, filed May 14,    2003.                                                                                                                                                                                                                                |
| (20)          | Form      10-Q for the period ended September 30, 2004, filed October 29,      2004.                                                                                                                                                                                                                      |
| (21)          | Form      10-K for the year ended December 31, 2004, filed March 16,      2005.                                                                                                                                                                                                                           |
| (22)          | Form      10-Q for the period ended June 30, 2005, filed July 29,    2005.                                                                                                                                                                                                                                |
| (23)          | Form      10-K for the year ended December 31, 2005, filed March 16,      2006.                                                                                                                                                                                                                           |
| (24)          | Exhibit      99.1 to Form 8-K filed on February 7, 2007.                                                                                                                                                                                                                                                  |
| (25)          | Form      10-K for the year ended December 31, 2006, filed March 16,      2007.                                                                                                                                                                                                                           |
| (26)          | Form      10-K for the year ended December 31, 2007, filed March 10,      2008.                                                                                                                                                                                                                           |
| (27)          | Exhibits      4.1, 4.2 and 4.3 to Form 8-K, filed July 9, 2008.                                                                                                                                                                                                                                           |
| (28)          | Exhibit      3.1 to Form 8-K, filed December 10, 2008.                                                                                                                                                                                                                                                    |
| (29)          | Exhibit      4(b) to Form 8-K, filed February 27, 2009.                                                                                                                                                                                                                                                   |
|   * | A      management contract or compensatory plan required to be filed with this      report.                                                                                                                                                                                                               |

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