----

| Selected Consolidated Financial Data                                                                                                                                                  |   F-2 |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------|
| Information Regarding Capitol's Common Stock                                                                                                                                          |   F-3 |
| Executive Officer Certifications                                                                                                                                                      |   F-5 |
| Availability of Form 10-K and Certain Other Reports                                                                                                                                   |   F-5 |
| Other Corporate Information                                                                                                                                                           |   F-5 |
| Shareholder Information                                                                                                                                                               |   F-6 |
| Cautions Regarding Forward-Looking Statements                                                                                                                                         |   F-6 |
| Management's Discussion and Analysis of Capitol's Business, Financial Condition and     Results of Operations:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |            |
| Summary and Overview                                                                                                                                                                                                          | F-11            |
| Capitol's Approach to Community Banking                                                                                                                                                                                       | F-12            |
| Capitol's Results of Operations                                                                                                                                                                                               | F-15            |
| Capitol's Financial Position                                                                                                                                                                                                  | F-21            |
| Liquidity, Capital Resources and Capital Adequacy                                                                                                                                                                             | F-30            |
| Certain Regulatory Matters                                                                                                                                                                                                    | F-36            |
| Going-Concern Considerations                                                                                                                                                                                                  | F-39            |
| Trends Affecting Operations                                                                                                                                                                                                   | F-41            |
| Quantitative and Qualitative Disclosure About Market Risk                                                                                                                                                                                                                                                | F-41            |
| Divestitures of Banks                                                                                                                                                                                                         | F-45            |
| Critical Accounting Policies Affecting Capitol's Financial Statements                                                                                                                                                                                                                                                                                                | F-46            |
| Use of Estimates in Determining the Allowance for Loan Losses                                                                                                                                                                                                                                                                                                             | F-46            |
| Accounting for Goodwill and Other Intangibles                                                                                                                                                                                                | F-47            |
| Accounting for Income Taxes                                                                                                                                                                                                                  | F-48            |
| Consolidation Policy                                                                                                                                                                                                                         | F-48            |
| New Accounting Standards                                                                                                                                                                                                      | F-49            |
| Risk Factors Affecting Capitol and its Banks                                                                                                                                                                                  | F-49            |
| Management's Report on Internal Control Over Financial Reporting                                                                                                                                                                                                                                                   | F-50            |
| Consolidated Financial Statements:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |            |
| Report of Independent Registered Public Accounting Firm                                                                                                                                                                                                                                             | F-53            |
| Consolidated Balance Sheets                                                                                                                                                                                                   | F-54            |
| Consolidated Statements of Operations                                                                                                                                                                                         | F-55            |
| Consolidated Statements of Changes in Equity                                                                                                                                                                                  | F-56            |
| Consolidated Statements of Cash Flows                                                                                                                                                                                         | F-58            |
| Notes to Consolidated Financial Statements                                                                                                                                                                                    | F-59            |

----

|                                                         |   | As of and for the Year Ended December 31 |      |
|--------------------------------------------------------------|--------|------------------------------------------|-----------|
|                                                         |   | 2010(1)                                  |      |   | 2009(2) |   |   | 2008(3) |   |   | 2007(4) |   |   | 2006(5) |   |
| For the year:                                                |   |                                     |      |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest income(6)                                           |   | $                                        | 163,691   |   |   | $ | 197,785 |   |   | $ | 234,458 |   |   | $ | 266,934 |   |   | $ | 235,704 |   |
| Interest expense(6)                                          |   |                                     | 63,582    |   |   |   | 91,112 |   |   |   | 115,634 |   |   |   | 124,720 |   |   |   | 94,799 |   |
| Net interest income(6)                                       |   |                                     | 100,109   |   |   |   | 106,673 |   |   |   | 118,824 |   |   |   | 142,214 |   |   |   | 140,905 |   |
| Provision for loan losses(6)                                 |   |                                     | 156,868   |   |   |   | 175,234 |   |   |   | 75,791 |   |   |   | 20,919 |   |   |   | 9,853 |   |
| Noninterest income(6)                                        |   |                                     | 24,447    |   |   |   | 22,451 |   |   |   | 22,282 |   |   |   | 20,720 |   |   |   | 18,407 |   |
| Noninterest expense(6)                                       |   |                                     | 241,811   |   |   |   | 203,960 |   |   |   | 156,400 |   |   |   | 142,214 |   |   |   | 111,744 |   |
| Income (loss) from continuing operations before income taxes |   |                                     | (274,123  | ) |   |   | (250,070 | ) |   |   | (91,085 | ) |   |   | (199 | ) |   |   | 37,715 |   |
| Income (loss) from discontinued operations                   |   |                                     | 12,449    |   |   |   | (1,222 | ) |   |   | 5,068 |   |   |   | 3,736 |   |   |   | 5,054 |   |
| Net income (loss)                                            |   |                                     | (254,364  | ) |   |   | (264,540 | ) |   |   | (52,451 | ) |   |   | 3,334 |   |   |   | 29,876 |   |
| Net income (loss) attributable to Capitol Bancorp Limited    |   |                                     | (225,215  | ) |   |   | (195,169 | ) |   |   | (28,607 | ) |   |   | 21,937 |   |   |   | 42,391 |   |
| Net income (loss) per share attributable to Capitol Bancorp  |   |                                     |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Limited:                                                     |   |                                     |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                                        |   |                                     | (11.16    | ) |   |   | (11.28 | ) |   |   | (1.67 | ) |   |   | 1.29 |   |   |   | 2.69 |   |
| Diluted                                                      |   |                                     | (11.16    | ) |   |   | (11.28 | ) |   |   | (1.67 | ) |   |   | 1.27 |   |   |   | 2.57 |   |
| Cash dividends paid per share                                |   |                                     | --        |   |   |   | 0.05 |   |   |   | 0.50 |   |   |   | 1.00 |   |   |   | 0.95 |   |
|                                                         |   |                                     |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| At end of year:                                              |   |                                     |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total assets                                                 |   | $                                        | 3,540,214 |   |   | $ | 5,131,940 |   |   | $ | 5,654,836 |   |   | $ | 4,901,763 |   |   | $ | 4,065,816 |   |
| Total earning assets(6)                                      |   |                                     | 3,230,783 |   |   |   | 3,820,035 |   |   |   | 4,025,628 |   |   |   | 3,569,118 |   |   |   | 3,113,348 |   |
| Portfolio loans(6)                                           |   |                                     | 2,671,712 |   |   |   | 3,135,298 |   |   |   | 3,609,298 |   |   |   | 3,438,146 |   |   |   | 2,924,692 |   |
| Deposits(6)                                                  |   |                                     | 3,028,684 |   |   |   | 3,518,826 |   |   |   | 3,477,575 |   |   |   | 3,008,118 |   |   |   | 2,694,098 |   |
| Notes payable and short-term borrowings(6)                   |   |                                     | 123,377   |   |   |   | 197,653 |   |   |   | 302,388 |   |   |   | 273,332 |   |   |   | 183,404 |   |
| Subordinated debentures                                      |   |                                     | 167,586   |   |   |   | 167,441 |   |   |   | 167,293 |   |   |   | 156,130 |   |   |   | 101,035 |   |
| Noncontrolling interests in consolidated subsidiaries        |   |                                     | 23,173    |   |   |   | 72,271 |   |   |   | 159,220 |   |   |   | 156,198 |   |   |   | 126,512 |   |
| Capitol Bancorp Limited stockholders' equity (deficit)       |   |                                     | (61,854   | ) |   |   | 161,335 |   |   |   | 353,848 |   |   |   | 389,145 |   |   |   | 361,879 |   |

|                                                                                            |   |              |     |   | Quarterly Results of Operations (unaudited) |   |
|-------------------------------------------------------------------------------------------------|--------|-------------------|----------|--------|---------------------------------------------|--------|
|                                                                                            |   | Total forthe Year |     |   | FourthQuarter                               |   |   | ThirdQuarter |   |   | SecondQuarter |   |   | FirstQuarter |   |
| Year ended December 31, 2010:(1)                                                                |   |              |     |   |                                        |   |   |   |   |   |   |   |   |   |   |
| Interest income(6)                                                                              |   | $                 | 163,691  |   |                                        | $      | 38,625 |   |   | $ | 41,185 |   |   | $ | 40,883 |   |   | $ | 42,998 |   |
| Interest expense(6)                                                                             |   |              | 63,582   |   |                                        |   | 13,803 |   |   |   | 15,603 |   |   |   | 16,375 |   |   |   | 17,801 |   |
| Net interest income(6)                                                                          |   |              | 100,109  |   |                                        |   | 24,822 |   |   |   | 25,582 |   |   |   | 24,508 |   |   |   | 25,197 |   |
| Provision for loan losses(6)(8)                                                                 |   |              | 156,868  |   |                                        |   | 22,420 |   |   |   | 43,924 |   |   |   | 43,098 |   |   |   | 47,426 |   |
| Net loss(8)                                                                                     |   |              | (254,364 | )      |                                        |   | (91,261 | ) |   |   | (57,244 | ) |   |   | (43,919 | ) |   |   | (61,940 | ) |
| Net income (loss) attributable to Capitol Bancorp Limited(8)                                    |   |              | (225,215 | )      |                                        |   | (84,164 | ) |   |   | (52,166 | ) |   |   | (41,003 | ) |   |   | (47,882 | ) |
| Net income (loss) per share attributable to Capitol BancorpLimited – basic and diluted(7) |   |              | (11.16   | )      |                                        |   | (3.95 | ) |   |   | (2.45 | ) |   |   | (1.98 | ) |   |   | (2.75 | ) |
| Cash dividends paid per share                                                                   |   |              | --       |   |                                        |   | -- |   |   |   | -- |   |   |   | -- |   |   |   | -- |   |
|                                                                                            |   |              |     |   |                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Year ended December 31, 2009:(2)                                                                |   |              |     |   |                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest income(6)                                                                              |   | $                 | 197,785  |   |                                        | $      | 46,712 |   |   | $ | 49,055 |   |   | $ | 51,133 |   |   | $ | 50,885 |   |
| Interest expense(6) (6)                                                                         |   |              | 91,112   |   |                                        |   | 19,546 |   |   |   | 22,261 |   |   |   | 23,656 |   |   |   | 25,649 |   |
| Net interest income(6)                                                                          |   |              | 106,673  |   |                                        |   | 27,166 |   |   |   | 26,794 |   |   |   | 27,477 |   |   |   | 25,236 |   |
| Provision for loan losses(6)                                                                    |   |              | 175,234  |   |                                        |   | 69,504 |   |   |   | 42,960 |   |   |   | 30,564 |   |   |   | 32,206 |   |
| Net loss(10)                                                                                    |   |              | (264,540 | )      |                                        |   | (85,558 | ) |   |   | (128,115 | ) |   |   | (22,960 | ) |   |   | (27,907 | ) |
| Net loss attributable to Capitol Bancorp Limited                                                |   |              | (195,169 | )      |                                        |   | (75,502 | ) |   |   | (82,689 | ) |   |   | (16,304 | ) |   |   | (20,674 | ) |
| Net loss per share attributable to Capitol BancorpLimited – basic and diluted(7)          |   |              | (11.28   | )      |                                        |   | (4.34 | ) |   |   | (4.75 | ) |   |   | (0.95 | ) |   |   | (1.20 | ) |
| Cash dividends paid per share                                                                   |   |              | 0.05     |   |                                        |   | -- |   |   |   | -- |   |   |   | -- |   |   |   | 0.05 |   |

| (1) | Capitol sold its ownership in Southern Arizona Community Bank effective December 10, 2010; Fort Collins Commerce Bank, Larimer Bank of Commerce and Loveland Bank of Commerce effective October 29, 2010; Bank of San Francisco effective September 28, 2010; Adams Dairy Bank effective August 31, 2010; USNY Bank effective August 23, 2010; Community Bank of Lincoln effective July 30, 2010; Ohio Commerce Bank effective June 30, 2010; Napa Community Bank effective April 30, 2010 and Bank of Belleville effective April 27, 2010.  The banks' operations have been included in Capitol's consolidated totals up to the date of sale; however, are included in discontinued operations.                                                                                                                            |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (2) | Includes Yuma Community Bank's operations through September 21, 2009 (date at which Capitol sold its ownership of that bank) and Bank of Santa Barbara, Community Bank of Rowan (CBR), Summit Bank of Kansas City and Capitol Development Bancorp Limited III's (CDBL III) operations through September 30, 2009 (the date when these entities ceased to be consolidated with Capitol due to a change in control).  Effective June 30, 2010, CDBL III transferred its controlling interest in CBR to Capitol in exchange for preferred stock of Capitol and, accordingly, CBR became a consolidated subsidiary of Capitol on that date.                                                                                                                                                                                     |
| (3) | Includes Adams Dairy Bank, effective January 2008 (located in Blue Springs, Missouri), Mountain View Bank of Commerce, effective February 2008 (located in Westminster, Colorado), Colonia Bank, effective April 2008 (located in Phoenix, Arizona) and Pisgah Community Bank, effective May 2008 (located in Asheville, North Carolina).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| (4) | Includes Bank of Tacoma, effective January 2007 (located in Tacoma, Washington), Sunrise Community Bank, effective February 2007 (located in Palm Desert, California), Larimer Bank of Commerce, effective May 2007 (located in Fort Collins, Colorado), Issaquah Community Bank (located in Issaquah, Washington) and USNY Bank (located in Geneva, New York), both effective July 2007, High Desert Bank, effective September 2007 (located in Bend, Oregon), Loveland Bank of Commerce, effective October 2007 (located in Loveland, Colorado), Bank of Feather River, effective November 2007 (located in Yuba City, California) and Community Bank of Lincoln (located in Lincoln, Nebraska), Bank of Fort Bend (located in Sugar Land, Texas) and Bank of Las Colinas (located in Irving, Texas), each effective December 2007. |
| (5) | Includes Community Bank of Rowan, effective February 2006 (located in Salisbury, North Carolina), Asian Bank of Arizona, effective April 2006 (located in Phoenix, Arizona), Evansville Commerce Bank, effective May 2006 (located in Evansville, Indiana), Bank of Valdosta (located in Valdosta, Georgia), Sunrise Bank of Atlanta (located in Atlanta, Georgia) and Bank of Everett (located in Everett, Washington), all effective June 2006, Bank of Maumee (located in Maumee, Ohio) and 1st Commerce Bank (located in North Las Vegas, Nevada), both effective October 2006, and Ohio Commerce Bank (located in Beachwood, Ohio), effective November 2006.                                                                                                                                                                     |
| (6) | Excludes amounts related to banks reclassified as discontinued operations.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| (7) | Each period's computation of net income (loss) per share is performed independently and, accordingly, net income per share for the year (basic and diluted) may not equal the sum of the amounts shown for the quarterly periods.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| (8) | As-revised in early March 2011 to reflect additional provision for loan losses of $11.7 million resulting from Michigan Commerce Bank's amended regulatory financial statements filed on February 22, 2011 as of and for the period ended September 30, 2010.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |

----

|           |   | 2010   |   |   | 2009   |
|----------------|--------|--------|--------|--------|--------|
|           |   | Low    |   |   | High   |   |   | Low |   |   | High |
| Quarter Ended: |   |   |   |   |   |   |   |   |   |   |   |
| March 31       |   | $      | 1.95   |   |   | $ | 3.55 |   |   | $ | 2.50 |   |   | $ | 7.96 |
| June 30        |   |   | 1.23   |   |   |   | 3.79 |   |   |   | 2.38 |   |   |   | 7.08 |
| September 30   |   |   | 0.95   |   |   |   | 1.58 |   |   |   | 1.79 |   |   |   | 6.06 |
| December 31    |   |   | 0.37   |   |   |   | 1.32 |   |   |   | 1.55 |   |   |   | 3.45 |

|                     |   | Period Ending |
|--------------------------|--------|---------------|
| Index                    |   | 12/31/05      | 12/31/06 | 12/31/07 | 12/31/08 | 12/31/09 | 12/31/10 |
| Capitol Bancorp Ltd.     |   | 100.00        | 126.18 | 57.11 | 22.90 | 5.81 | 1.54 |
| Russell 2000             |   | 100.00        | 118.37 | 116.51 | 77.15 | 98.11 | 124.46 |
| SNL Bank Pink > $500M |   | 100.00        | 109.72 | 101.10 | 73.36 | 62.72 | 66.25 |

----

----

| Capitol Bancorp Center                     | 2777 E. Camelback Road |
|--------------------------------------------|------------------------|
| 200 N. Washington Square                   | Suite 375              |
| Lansing, Michigan 48933                    | Phoenix, Arizona 85016 |
| 517-487-6555                               | 602-955-6100           |
|                                       |
| website:  www.capitolbancorp.com |

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| ·  | Accounting                     |
|--------------|--------------------------------|
| ·  | Capital management             |
| ·  | Credit administration          |
| ·  | Data processing                |
| ·  | Human resources administration |
| ·  | Internal audit                 |
| ·  | Legal support                  |
| ·  | Risk management                |

----

|                                   |   | Total Assets |      |   | Total Revenues(14) |   |
|----------------------------------------|--------|--------------|-----------|--------|--------------------|--------|
|                                   |   | 2010         |      |   | 2009               |   |   | 2010 |   |   | 2009 |   |
| Arizona Region:                        |   |         |      |   |               |   |   |   |   |   |   |   |
| Bank of Tucson(16)(17)                 |   | $            | 222,882   |   |               | $      | 204,824 |   |   | $ | 12,232 |   |   | $ | 12,709 |   |
| Central Arizona Bank(17)               |   |         | 75,590    |   |               |   | 95,110 |   |   |   | 3,529 |   |   |   | 4,089 |   |
| Southern Arizona Community Bank(1)(16) |   |         |      |   |               |   | 94,585 |   |   |   | 4,841 |   |   |   | 5,188 |   |
| Sunrise Bank of Albuquerque(17)        |   |         | 73,539    |   |               |   | 78,895 |   |   |   | 3,638 |   |   |   | 4,110 |   |
| Sunrise Bank of Arizona(10)            |   |         | 353,154   |   |               |   | 495,168 |   |   |   | 18,593 |   |   |   | 23,712 |   |
| Yuma Community Bank(12)(16)            |   |         |      |   |               |   |   |   |   |   |   |   |   |   | 3,225 |   |
| Arizona Region Total                   |   |         | 725,165   |   |               |   | 968,582 |   |   |   | 42,833 |   |   |   | 53,033 |   |
|                                   |   |         |      |   |               |   |   |   |   |   |   |   |   |   |   |   |
| California Region:                     |   |         |      |   |               |   |   |   |   |   |   |   |   |   |   |   |
| Bank of Feather River                  |   |         | 38,930    |   |               |   | 33,693 |   |   |   | 2,561 |   |   |   | 2,111 |   |
| Bank of San Francisco(1)(16)           |   |         |      |   |               |   | 87,740 |   |   |   | 4,119 |   |   |   | 4,639 |   |
| Bank of Santa Barbara(11)(16)          |   |         |      |   |               |   |   |   |   |   |   |   |   |   | 2,571 |   |
| Napa Community Bank(1)(16)             |   |         |      |   |               |   | 166,873 |   |   |   | 2,947 |   |   |   | 9,147 |   |
| Sunrise Bank(5)(8)                     |   |         | 231,836   |   |               |   | 296,197 |   |   |   | 12,968 |   |   |   | 14,835 |   |
| California Region Total                |   |         | 270,766   |   |               |   | 584,503 |   |   |   | 22,595 |   |   |   | 33,303 |   |
|                                   |   |         |      |   |               |   |   |   |   |   |   |   |   |   |   |   |
| Colorado Region:                       |   |         |      |   |               |   |   |   |   |   |   |   |   |   |   |   |
| Fort Collins Commerce Bank(1)(16)      |   |         |      |   |               |   | 93,908 |   |   |   | 5,211 |   |   |   | 5,381 |   |
| Larimer Bank of Commerce(1)(16)        |   |         |      |   |               |   | 89,623 |   |   |   | 4,555 |   |   |   | 5,333 |   |
| Loveland Bank of Commerce(1)(16)       |   |         |      |   |               |   | 40,032 |   |   |   | 1,979 |   |   |   | 2,148 |   |
| Mountain View Bank of Commerce         |   |         | 60,303    |   |               |   | 50,621 |   |   |   | 2,896 |   |   |   | 2,388 |   |
| Colorado Region Total                  |   |         | 60,303    |   |               |   | 274,184 |   |   |   | 14,641 |   |   |   | 15,250 |   |
|                                   |   |         |      |   |               |   |   |   |   |   |   |   |   |   |   |   |
| Great Lakes Region:                    |   |         |      |   |               |   |   |   |   |   |   |   |   |   |   |   |
| Bank of Maumee                         |   |         | 40,300    |   |               |   | 46,796 |   |   |   | 2,402 |   |   |   | 2,592 |   |
| Bank of Michigan                       |   |         | 81,873    |   |               |   | 99,344 |   |   |   | 4,680 |   |   |   | 4,860 |   |
| Capitol National Bank(17)              |   |         | 157,606   |   |               |   | 199,622 |   |   |   | 9,734 |   |   |   | 11,605 |   |
| Evansville Commerce Bank               |   |         | 52,506    |   |               |   | 56,392 |   |   |   | 2,783 |   |   |   | 3,458 |   |
| Indiana Community Bank(4)(8)           |   |         | 128,728   |   |               |   | 175,407 |   |   |   | 7,670 |   |   |   | 8,916 |   |
| Michigan Commerce Bank(3)(8)(13)(17)   |   |         | 933,698   |   |               |   | 1,232,441 |   |   |   | 60,609 |   |   |   | 71,484 |   |
| Ohio Commerce Bank(1)(16)              |   |         |      |   |               |   | 66,175 |   |   |   | 1,934 |   |   |   | 3,263 |   |
| Great Lakes Region Total               |   |         | 1,394,711 |   |               |   | 1,876,177 |   |   |   | 89,812 |   |   |   | 106,178 |   |
|                                   |   |         |      |   |               |   |   |   |   |   |   |   |   |   |   |   |
| Midwest Region:                        |   |         |      |   |               |   |   |   |   |   |   |   |   |   |   |   |
| Adams Dairy Bank(1)(16)                |   |         |      |   |               |   | 44,309 |   |   |   | 1,681 |   |   |   | 2,337 |   |
| Bank of Belleville(1)(16)              |   |         |      |   |               |   | 70,502 |   |   |   | 1,048 |   |   |   | 3,711 |   |
| Community Bank of Lincoln(1)(16)       |   |         |      |   |               |   | 60,356 |   |   |   | 1,508 |   |   |   | 3,551 |   |
| Summit Bank of Kansas City (11)(16)    |   |         |      |   |               |   |   |   |   |   |   |   |   |   | 2,780 |   |
| Midwest Region Total                   |   |         |      |   |               |   | 175,167 |   |   |   | 4,237 |   |   |   | 12,379 |   |
|                                   |   |         |      |   |               |   |   |   |   |   |   |   |   |   |   |   |
| Nevada Region:                         |   |         |      |   |               |   |   |   |   |   |   |   |   |   |   |   |
| 1st Commerce Bank                      |   |         | 39,555    |   |               |   | 38,811 |   |   |   | 1,625 |   |   |   | 2,315 |   |
| Bank of Las Vegas(7)(8)(17)            |   |         | 375,084   |   |               |   | 487,355 |   |   |   | 18,628 |   |   |   | 25,476 |   |
| Nevada Region Total                    |   |         | 414,639   |   |               |   | 526,166 |   |   |   | 20,253 |   |   |   | 27,791 |   |
|                                   |   |         |      |   |               |   |   |   |   |   |   |   |   |   |   |   |
| Northeast Region:                      |   |         |      |   |               |   |   |   |   |   |   |   |   |   |   |   |
| USNY Bank(1)(16)                       |   |         |      |   |               |   | 64,176 |   |   |   | 2,712 |   |   |   | 3,265 |   |
|                                   |   |         |      |   |               |   |   |   |   |   |   |   |   |   |   |   |
| Northwest Region:                      |   |         |      |   |               |   |   |   |   |   |   |   |   |   |   |   |
| Bank of the Northwest(6)(8)            |   |         | 145,540   |   |               |   | 174,005 |   |   |   | 7,880 |   |   |   | 9,392 |   |
| High Desert Bank                       |   |         | 37,967    |   |               |   | 41,849 |   |   |   | 2,272 |   |   |   | 2,429 |   |
| Northwest Region Total                 |   |         | 183,507   |   |               |   | 215,854 |   |   |   | 10,152 |   |   |   | 11,821 |   |
|                                   |   |         |      |   |               |   |   |   |   |   |   |   |   |   |   |   |
| Southeast Region:                      |   |         |      |   |               |   |   |   |   |   |   |   |   |   |   |   |
| Community Bank of Rowan(9)(16)         |   |         | 140,276   |   |               |   |   |   |   |   | 3,392 |   |   |   | 4,962 |   |
| First Carolina State Bank(17)          |   |         | 103,254   |   |               |   | 115,674 |   |   |   | 4,765 |   |   |   | 5,473 |   |
| Pisgah Community Bank                  |   |         | 43,125    |   |               |   | 62,773 |   |   |   | 1,878 |   |   |   | 2,478 |   |
| Sunrise Bank(2)(8)(17)                 |   |         | 112,718   |   |               |   | 137,300 |   |   |   | 6,087 |   |   |   | 7,811 |   |
| Southeast Region Total                 |   |         | 399,373   |   |               |   | 315,747 |   |   |   | 16,122 |   |   |   | 20,724 |   |

----

|                                  |   | Total Assets |      |   | Total Revenues(14) |   |
|---------------------------------------|--------|--------------|-----------|--------|--------------------|--------|
|                                  |   | 2010         |      |   | 2009               |   |   | 2010 |   |   | 2009 |   |
| Texas Region:                         |   |         |      |   |               |   |   |   |   |   |   |   |
| Bank of Fort Bend                     |   | $            | 35,375    |   |               | $      | 31,548 |   |   | $ | 2,037 |   |   | $ | 1,640 |   |
| Bank of Las Colinas                   |   |         | 44,767    |   |               |   | 43,003 |   |   |   | 2,331 |   |   |   | 1,979 |   |
| Texas Region Total                    |   |         | 80,142    |   |               |   | 74,551 |   |   |   | 4,368 |   |   |   | 3,619 |   |
|                                  |   |         |      |   |               |   |   |   |   |   |   |   |   |   |   |   |
| Parent company and other, net(15)(17) |   |         | 11,608    |   |               |   | 56,833 |   |   |   | 20,964 |   |   |   | 8,309 |   |
|                                  |   |         |      |   |               |   |   |   |   |   |   |   |   |   |   |   |
| Consolidated totals                   |   |         | 3,540,214 |   |               |   | 5,131,940 |   |   |   | 248,689 |   |   |   | 295,672 |   |
| Less discontinued operations          |   |         | (222,882  | )      |               |   | (1,083,103 | ) |   |   | (60,551 | ) |   |   | (75,436 | ) |
| Consolidated totals--continuing       |   |         |      |   |               |   |   |   |   |   |   |   |   |   |   |   |
| operations                            |   | $            | 3,317,332 |   |               | $      | 4,048,837 |   |   | $ | 188,138 |   |   | $ | 220,236 |   |

| (1)  | Capitol sold its ownership in Southern Arizona community Bank effective December 10, 2010; Fort Collins Commerce Bank, Larimer Bank of Commerce and Loveland Bank of Commerce effective October 29, 2010; Bank of San Francisco effective September 28, 2010; Adams Dairy Bank effective August 31, 2010; USNY Bank effective August 23, 2010; Community Bank of Lincoln effective July 30, 2010; Ohio Commerce Bank effective June 30, 2010; Napa Community Bank effective April 30, 2010 and Bank of Belleville effective April 27, 2010.  The banks' operations have been included in Capitol's consolidated totals up to the date of sale; however, the banks' results are reflected in discontinued operations. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (2)  | Effective July 30, 2010, Peoples State Bank and Sunrise Bank of Atlanta merged with and into Bank of Valdosta.  Upon completion of the merger, the surviving bank was renamed Sunrise Bank.  Prior to the merger, each bank was either a majority-owned subsidiary of Capitol or majority-owned by a bank-development subsidiary in which Capitol holds a controlling interest.                                                                                                                                                                                                                                                                                                                            |
| (3)  | Effective March 31, 2010, Bank of Auburn Hills and Paragon Bank & Trust merged with and into Michigan Commerce Bank.  Prior to the merger, Bank of Auburn Hills and Paragon Bank & Trust were wholly-owned subsidiaries of Capitol.                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| (4)  | Effective March 22, 2010, Elkhart Community Bank merged with and into Goshen Community Bank.  Upon completion of the merger, the surviving bank was renamed Indiana Community Bank.  Prior to the merger, each bank was a wholly-owned subsidiary of Capitol.                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| (5)  | Effective March 5, 2010, Bank of Escondido, Sunrise Bank of San Diego and Sunrise Community Bank merged with and into Point Loma Community Bank.  Upon completion of the merger, the surviving bank was renamed Sunrise Bank.  Prior to the merger, each bank was either a wholly-owned subsidiary of Capitol or majority-owned by a bank-development subsidiary in which Capitol holds a controlling interest.                                                                                                                                                                                                                                                                                            |
| (6)  | Effective February 19, 2010, Bank of Bellevue, Bank of Everett and Bank of Tacoma merged with and into Issaquah Community Bank.  Upon completion of the merger, the surviving bank was renamed Bank of the Northwest.  Prior to the merger, each bank was either a majority-owned subsidiary of Capitol or majority-owned by a bank-development subsidiary in which Capitol holds a controlling interest.                                                                                                                                                                                                                                                                                                  |
| (7)  | Effective January 29, 2010, Black Mountain Community Bank, Desert Community Bank and Red Rock Community Bank merged with and into Bank of Las Vegas.  Prior to the merger, each bank was a wholly-owned subsidiary of Capitol.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| (8)  | For purposes of this presentation, such merger has been reflected as if it occurred December 31, 2009.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| (9)  | As of December 31, 2009, Community Bank of Rowan (CBR) was a majority-owned subsidiary of Capitol Development Bancorp Limited III (CDBL III) which, due to a change in control effective September 30, 2009, became an unconsolidated affiliate of Capitol.  Effective June 30, 2010, CDBL III transferred its controlling interest in CBR to Capitol in exchange for preferred stock of Capitol and, accordingly, CBR became a consolidated subsidiary of Capitol on that date.                                                                                                                                                                                                                                     |
| (10) | Effective December 14, 2009, Arrowhead Community Bank, Asian Bank of Arizona, Colonia Bank, Mesa Bank and Sunrise Bank of Arizona merged with and into Camelback Community Bank.  Upon completion of the merger, the surviving bank was renamed Sunrise Bank of Arizona. Prior to the merger, each bank was either a wholly-owned subsidiary of Capitol or majority-owned by a bank development subsidiary in which Capitol holds a controlling interest.                                                                                                                                                                                                                                                            |
| (11) | Bank of Santa Barbara and Summit Bank of Kansas City are majority-owned subsidiaries of CDBL III of which Capitol ceased to have a majority voting control effective September 30, 2009; consequently those banks and CDBL III ceased to be consolidated subsidiaries of Capitol.  CDBL III's ownership interest in Bank of Santa Barbara was sold in November 2009.                                                                                                                                                                                                                                                                                                                                                 |
| (12) | Yuma Community Bank was sold effective September 21, 2009.  The bank's operations are included in Capitol's consolidated totals up to the date of sale.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| (13) | Effective March 31, 2009, Brighton Commerce Bank, Detroit Commerce Bank, Grand Haven Bank, Kent Commerce Bank, Macomb Community Bank, Muskegon Commerce Bank, Oakland Commerce Bank and Portage Commerce Bank merged with and into Ann Arbor Commerce Bank.  Upon completion of the merger, the surviving bank was renamed Michigan Commerce Bank.  Prior to the merger, each bank was a wholly-owned subsidiary of Capitol.                                                                                                                                                                                                                                                                               |
| (14) | Total revenues is the sum of interest income and noninterest income.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| (15) | Includes corporate and other nonbank entities.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| (16) | Total revenues of these banks are reflected as discontinued operations.  CBR was included in discontinued operations in 2009 and continuing operations in 2010 (see (9) above).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| (17) | Total assets of these banks as of December 31, 2009 have been adjusted to reflect subsequent regulatory financial statement amendments filed on or after March 20, 2010.  Those amendments did not have an impact on total assets on a consolidated basis.                                                                                                                                                                                                                                                                                                                                                                                                                                                           |

----

|                                  |   | Net Income (Loss) |      |   | Return on Average Equity |   |      | Return on Average Assets |   |
|---------------------------------------|--------|-------------------|-----------|--------|--------------------------|--------|-----------|--------------------------|--------|
|                                  |   | 2010              |      |   | 2009                     |   |      | 2008                     |   |   | 2010 |   |   | 2009 |   |   | 2008 |   |   | 2010 |   |   | 2009 |   |   | 2008 |   |
| Arizona Region:                       |   |              |      |   |                     |   |      |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Bank of Tucson(15)(16)                |   | $                 | 54        |   |                     | $      | 1,724     |                     |   | $ | 3,717 |   |   |   | 0.30 | % |   |   | 10.12 | % |   |   | 20.56 | % |   |   | 0.02 | % |   |   | 0.91 | % |   |   | 2.04 | % |
| Central Arizona Bank(16)              |   |              | (5,592    | )      |                     |   | (6,085    | )                        |   |   | (1,004 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Southern Arizona CommunityBank(1)(15) |   |              |  290 |   |                     |   |  434 |                     |   |   |  639 |   |   |   | 3.17 | % |   |   | 4.73 | % |   |   | 7.06 | % |   |   | 0.33 | % |   |   | 0.48 | % |   |   | 0.72 | % |
| Sunrise Bank of Albuquerque(16)       |   |              | (4,189    | )      |                     |   | (1,781    | )                        |   |   | 224 |   |   |   |   |   |   |   |   |   |   |   | 3.05 | % |   |   |   |   |   |   |   |   |   |   | 0.29 | % |
| Sunrise Bank of Arizona(10)           |   |              | (41,500   | )      |                     |   | (48,628   | )                        |   |   | (13,505 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Yuma Community Bank(12)(15)           |   |              |      |   |                     |   | 372       |                     |   |   | 565 |   |   |   |   |   |   |   | 7.69 | % |   |   | 7.23 | % |   |   |   |   |   |   | 0.78 | % |   |   | 0.75 | % |
| Arizona Region Total                  |   |              | (50,937   | )      |                     |   | (53,964   | )                        |   |   | (9,364 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                  |   |              |      |   |                     |   |      |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| California Region:                    |   |              |      |   |                     |   |      |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Bank of Feather River                 |   |              | 194       |   |                     |   | (714      | )                        |   |   | (487 | ) |   |   | 3.09 | % |   |   |   |   |   |   |   |   |   |   | 0.51 | % |   |   |   |   |   |   |   |   |
| Bank of San Francisco(1)(15)          |   |              | 559       |   |                     |   | 52        |                     |   |   | 43 |   |   |   | 8.01 | % |   |   | 0.63 | % |   |   | 0.51 | % |   |   | 0.75 | % |   |   | 0.06 | % |   |   | 0.07 | % |
| Bank of Santa Barbara(11)(15)         |   |              |      |   |                     |   | (1,300    | )                        |   |   | (420 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Napa Community Bank(1)(15)            |   |              | (77       | )      |                     |   | 485       |                     |   |   | 1,223 |   |   |   |   |   |   |   | 3.01 | % |   |   | 8.39 | % |   |   |   |   |   |   | 0.32 | % |   |   | 0.93 | % |
| Sunrise Bank(5)(8)                    |   |              | (10,358   | )      |                     |   | (8,315    | )                        |   |   | 309 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| California Region Total               |   |              | (9,682    | )      |                     |   | (9,792    | )                        |   |   | 668 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                  |   |              |      |   |                     |   |      |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Colorado Region:                      |   |              |      |   |                     |   |      |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Fort Collins Commerce Bank(1)(15)     |   |              | 484       |   |                     |   | 15        |                     |   |   | 620 |   |   |   | 6.65 | % |   |   | 0.15 | % |   |   | 6.71 | % |   |   | 0.66 | % |   |   | 0.02 | % |   |   | 0.89 | % |
| Larimer Bank of Commerce(1)(15)       |   |              | 730       |   |                     |   | 57        |                     |   |   | 465 |   |   |   | 12.00 | % |   |   | 0.70 | % |   |   | 6.09 | % |   |   | 1.05 | % |   |   | 0.06 | % |   |   | 0.66 | % |
| Loveland Bank of Commerce(1)(15)      |   |              | 253       |   |                     |   | (872      | )                        |   |   | (458 | ) |   |   | 5.34 | % |   |   |   |   |   |   |   |   |   |   | 0.84 | % |   |   |   |   |   |   |   |   |
| Mountain View Bank of Commerce        |   |              | 183       |   |                     |   | (31       | )                        |   |   | (819 | ) |   |   | 2.52 | % |   |   |   |   |   |   |   |   |   |   | 0.34 | % |   |   |   |   |   |   |   |   |
| Colorado Region Total                 |   |              | 1,650     |   |                     |   | (831      | )                        |   |   | (192 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                  |   |              |      |   |                     |   |      |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Great Lakes Region:                   |   |              |      |   |                     |   |      |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Bank of Maumee                        |   |              | (1,254    | )      |                     |   | (2,834    | )                        |   |   | (774 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Bank of Michigan                      |   |              | (267      | )      |                     |   | 152       |                     |   |   | 543 |   |   |   |   |   |   |   | 2.16 | % |   |   | 7.95 | % |   |   |   |   |   |   | 0.16 | % |   |   | 0.76 | % |
| Capitol National Bank(16)             |   |              | (2,753    | )      |                     |   | (8,150    | )                        |   |   | (766 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Evansville Commerce Bank              |   |              | (260      | )      |                     |   | (1,644    | )                        |   |   | (248 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Indiana Community Bank(4)(8)          |   |              | (5,063    | )      |                     |   | (3,574    | )                        |   |   | 217 |   |   |   |   |   |   |   |   |   |   |   | 2.23 | % |   |   |   |   |   |   |   |   |   |   | 0.22 | % |
| Michigan Commerce Bank(3)(8)(13)(16)  |   |              | (73,686   | )      |                     |   | (81,910   | )                        |   |   | (16,226 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Ohio Commerce Bank(1)(15)             |   |              | 226       |   |                     |   | 206       |                     |   |   | (149 | ) |   |   | 4.54 | % |   |   | 2.24 | % |   |   |   |   |   |   | 0.62 | % |   |   | 0.33 | % |   |   |   |   |
| Great Lakes Region Total              |   |              | (83,057   | )      |                     |   | (97,754   | )                        |   |   | (17,403 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                  |   |              |      |   |                     |   |      |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Midwest Region                        |   |              |      |   |                     |   |      |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Adams Dairy Bank(1)(15)               |   |              | (36       | )      |                     |   | (66       | )                        |   |   | (669 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Bank of Belleville(1)(15)             |   |              | 18        |   |                     |   | 122       |                     |   |   | 35 |   |   |   | 0.68 | % |   |   | 1.79 | % |   |   | 0.49 | % |   |   | 0.07 | % |   |   | 0.17 | % |   |   | 0.06 | % |
| Community Bank of Lincoln(1)(15)      |   |              | (872      | )      |                     |   | (1,516    | )                        |   |   | (643 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Summit Bank of Kansas City(11)(15)    |   |              |      |   |                     |   | (978      | )                        |   |   | (97 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Midwest Region Total                  |   |              | (890      | )      |                     |   | (2,438    | )                        |   |   | (1,374 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                  |   |              |      |   |                     |   |      |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Nevada Region:                        |   |              |      |   |                     |   |      |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 1st Commerce Bank                     |   |              | (3,299    | )      |                     |   | (3,009    | )                        |   |   | (1,158 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Bank of Las Vegas(7)(8)(16)           |   |              | (51,713   | )      |                     |   | (12,688   | )                        |   |   | 3,301 |   |   |   |   |   |   |   |   |   |   |   | 0.51 | % |   |   |   |   |   |   |   |   |   |   | 0.06 | % |
| Nevada Region Total                   |   |              | (55,012   | )      |                     |   | (15,697   | )                        |   |   | 2,143 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                  |   |              |      |   |                     |   |      |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Northeast Region:                     |   |              |      |   |                     |   |      |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| USNY Bank(1)(15)                      |   |              | 560       |   |                     |   | (1,188    | )                        |   |   | (748 | ) |   |   | 16.70 | % |   |   |   |   |   |   |   |   |   |   | 1.35 | % |   |   |   |   |   |   |   |   |

----

|                                  |   | Net Income (Loss) |     |   | Return on Average Equity |   |     | Return on Average Assets |
|---------------------------------------|--------|-------------------|----------|--------|--------------------------|--------|----------|--------------------------|
|                                  |   | 2010              |     |   | 2009                     |   |     | 2008                     |   |   | 2010 |   |   | 2009 |   |   | 2008 |   |   | 2010 |   |   | 2009 |   |   | 2008 |
| Northwest Region:                     |   |              |     |   |                     |   |     |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Bank of the Northwest(6)(8)           |   | $                 | (1,446   | )      |                     | $      | (9,889   | )                        |   | $ | (2,553 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| High Desert Bank                      |   |              | (863     | )      |                     |   | (2,948   | )                        |   |   | (801 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Northwest Region Total                |   |              | (2,309   | )      |                     |   | (12,837  | )                        |   |   | (3,354 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                  |   |              |     |   |                     |   |     |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Southeast Region:                     |   |              |     |   |                     |   |     |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Community Bank of Rowan(9)(15)        |   |              | (401     | )      |                     |   | 459      |                     |   |   | 945 |   |   |   |   |   |   | 5.73 | % |   |   | 9.39 | % |   |   |   |   |   | 0.47 | % |   |   | 0.76 | %  |
| First Carolina State Bank(16)         |   |              | (8,258   | )      |                     |   | (1,926   | )                        |   |   | (403 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Pisgah Community Bank                 |   |              | (9,569   | )      |                     |   | (1,417   | )                        |   |   | (920 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Sunrise Bank(2)(8)(16)                |   |              | (8,451   | )      |                     |   | (8,222   | )                        |   |   | (765 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Southeast Region Total                |   |              | (26,679  | )      |                     |   | (11,106  | )                        |   |   | (1,143 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                  |   |              |     |   |                     |   |     |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Texas Region:                         |   |              |     |   |                     |   |     |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Bank of Fort Bend                     |   |              | (116     | )      |                     |   | (1,268   | )                        |   |   | (829 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Bank of Las Colinas                   |   |              | 106      |   |                     |   | (1,259   | )                        |   |   | (623 | ) |   |   | 1.94 | % |   |   |   |   |   |   |   |   |   |   | 0.24 | % |   |   |   |   |   |   |   |   |
| Texas Region Total                    |   |              | (10      | )      |                     |   | (2,527   | )                        |   |   | (1,452 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                  |   |              |     |   |                     |   |     |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Parent company and other, net(14)(16) |   |              | (27,998  | )      |                     |   | (56,406  | )                        |   |   | (20,232 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                  |   |              |     |   |                     |   |     |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Consolidated totals                   |   |              | (254,364 | )      |                     |   | (264,540 | )                        |   |   | (52,451 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Less discontinued operations          |   |              | 12,449   |   |                     |   | (1,222   | )                   |   |   | 5,068 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Consolidated totals--                 |   |              |     |   |                     |   |     |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| continuing operations                 |   | $                 | (266,813 | )      |                     | $      | (263,318 | )                        |   | $ | (57,519 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

| (1)  | Capitol sold its ownership in Southern Arizona Community Bank effective December 10, 2010; Fort Collins Commerce Bank, Larimer Bank of Commerce and Loveland Bank of Commerce effective October 29, 2010; Bank of San Francisco effective September 28, 2010; Adams Dairy Bank effective August 31, 2010; USNY Bank effective August 23, 2010; Community Bank of Lincoln effective July 30, 2010; Ohio Commerce Bank effective June 30, 2010; Napa Community Bank effective April 30, 2010 and Bank of Belleville effective April 27, 2010.  The banks' operations have been included in Capitol's consolidated totals up to the date of sale; however, the banks' results are reflected in discontinued operations. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (2)  | Effective July 30, 2010, Peoples State Bank and Sunrise Bank of Atlanta merged with and into Bank of Valdosta.  Upon completion of the merger, the surviving bank was renamed Sunrise Bank.  Prior to the merger, each bank was either a majority-owned subsidiary of Capitol or majority-owned by a bank-development subsidiary in which Capitol holds a controlling interest.                                                                                                                                                                                                                                                                                                                            |
| (3)  | Effective March 31, 2010, Bank of Auburn Hills and Paragon Bank & Trust merged with and into Michigan Commerce Bank.  Prior to the merger, Bank of Auburn Hills and Paragon Bank & Trust were wholly-owned subsidiaries of Capitol.                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| (4)  | Effective March 22, 2010, Elkhart Community Bank merged with and into Goshen Community Bank.  Upon completion of the merger, the surviving bank was renamed Indiana Community Bank.  Prior to the merger, each bank was a wholly-owned subsidiary of Capitol.                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| (5)  | Effective March 5, 2010, Bank of Escondido, Sunrise Bank of San Diego and Sunrise Community Bank merged with and into Point Loma Community Bank.  Upon completion of the merger, the surviving bank was renamed Sunrise Bank.  Prior to the merger, each bank was either a wholly-owned subsidiary of Capitol or majority-owned by a bank-development subsidiary in which Capitol holds a controlling interest.                                                                                                                                                                                                                                                                                            |
| (6)  | Effective February 19, 2010, Bank of Bellevue, Bank of Everett and Bank of Tacoma merged with and into Issaquah Community Bank.  Upon completion of the merger, the surviving bank was renamed Bank of the Northwest.  Prior to the merger, each bank was either a majority-owned subsidiary of Capitol or majority-owned by a bank-development subsidiary in which Capitol holds a controlling interest.                                                                                                                                                                                                                                                                                                  |
| (7)  | Effective January 29, 2010, Black Mountain Community Bank, Desert Community Bank and Red Rock Community Bank merged with and into Bank of Las Vegas.  Prior to the merger, each bank was a wholly-owned subsidiary of Capitol.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| (8)  | For purposes of this presentation, such merger has been reflected as if it occurred December 31, 2009.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| (9)  | As of December 31, 2009, Community Bank of Rowan (CBR) was a majority-owned subsidiary of Capitol Development Bancorp Limited III (CDBL III) which, due to a change in control effective September 30, 2009, was an unconsolidated affiliate of Capitol.  Effective June 30, 2010, CDBL III transferred its controlling interest in CBR to Capitol in exchange for preferred stock of Capitol and, accordingly, CBR became a consolidated subsidiary of Capitol on that date.                                                                                                                                                                                                                                        |
| (10) | Effective December 14, 2009, Arrowhead Community Bank, Asian Bank of Arizona, Colonia Bank, Mesa Bank and Sunrise Bank of Arizona merged with and into Camelback Community Bank.  Upon completion of the merger, the surviving bank was renamed Sunrise Bank of Arizona. Prior to the merger, each bank was either a wholly-owned subsidiary of Capitol or majority-owned by a bank development subsidiary in which Capitol holds a controlling interest.                                                                                                                                                                                                                                                            |
| (11) | Bank of Santa Barbara and Summit Bank of Kansas City are majority-owned subsidiaries of CDBL III of which Capitol ceased to have a majority voting control effective September 30, 2009; consequently those banks and CDBL III ceased to be consolidated subsidiaries of Capitol.  CDBL III's ownership interest in Bank of Santa Barbara was sold in November 2009.                                                                                                                                                                                                                                                                                                                                                 |
| (12) | Yuma Community Bank was sold effective September 21, 2009.  The bank's operations are included in Capitol's consolidated totals up to the date of the sale.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| (13) | Effective March 31, 2009, Brighton Commerce Bank, Detroit Commerce Bank, Grand Haven Bank, Kent Commerce Bank, Macomb Community Bank, Muskegon Commerce Bank, Oakland Commerce Bank and Portage Commerce Bank merged with and into Ann Arbor Commerce Bank.  Upon completion of the merger, the surviving bank was renamed Michigan Commerce Bank.  Prior to the merger, each bank was a wholly-owned subsidiary of Capitol.                                                                                                                                                                                                                                                                               |
| (14) | Includes corporate and other nonbank entities.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |

----

| (15) | Net income (loss) of these banks is reflected as discontinued operations.  CBR was included in discontinued operations in 2009 and 2008 and included in continuing operations in 2010 (see (9) above).                                                       |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (16) | Net income (loss) of these banks for the year ended December 31, 2009 has been adjusted to reflect subsequent regulatory financial statement amendments filed on or after March 20, 2010.  These amendments did not have an impact on consolidated net loss. |

----

| ·   | A dramatic decline in Capitol's aggregate market-capitalization, i.e., the computational result of multiplying the number of Capitol's common shares outstanding by the per-share market price of such common stock (estimated fair value). |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Capitol's tangible-equity deficit (total equity, less goodwill, prior to recording any goodwill impairment for 2010). |
|--------------------|-----------------------------------------------------------------------------------------------------------------------|

| ·   | Pricing information from merger and acquisition transactions within the banking industry in the United States of America during 2010, as a multiple of tangible equity, and application of such multiple to Capitol's tangible-equity deficit prior to recording any goodwill impairment for 2010. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

|                                                                           |   | 2010   |        |   | 2009   |   |        | 2008   |   |
|--------------------------------------------------------------------------------|--------|--------|-------------|--------|--------|--------|-------------|--------|--------|
|                                                                           |   |   |        |   |   |   |        |   |   |
| Attorney fees                                                                  |   | $      | 4,953       |   |   | $      | 2,743       |   |   | $ | 1,338 |   |
| Other professional fees                                                        |   |   | 3,939       |   |   |   | 2,598       |   |   |   | 1,445 |   |
| Loan and collection expense                                                    |   |   | 2,843       |   |   |   | 2,279       |   |   |   | 1,602 |   |
| Insurance                                                                      |   |   | 1,977       |   |   |   | 1,186       |   |   |   | 502 |   |
| Directors' fees                                                                |   |   | 1,662       |   |   |   | 1,904       |   |   |   | 2,429 |   |
| Bank services (ATMs, telephone banking    and Internet banking) |   |   |  1,508 |   |   |   |  2,010 |   |   |   |  1,982 |   |
| Paper, printing and supplies                                                   |   |   | 1,371       |   |   |   | 1,605       |   |   |   | 2,119 |   |
| Travel, lodging and meals                                                      |   |   | 1,279       |   |   |   | 1,471       |   |   |   | 2,546 |   |
| Communications                                                                 |   |   | 1,237       |   |   |   | 1,416       |   |   |   | 1,849 |   |
| Advertising                                                                    |   |   | 1,168       |   |   |   | 1,317       |   |   |   | 2,226 |   |
| Postage                                                                        |   |   | 846         |   |   |   | 960         |   |   |   | 1,043 |   |
| Taxes other than income taxes                                                  |   |   | 791         |   |   |   | 721         |   |   |   | 610 |   |
| Other                                                                          |   |   | 2,320       |   |   |   | 4,517       |   |   |   | 7,495 |   |
|                                                                           |   |   |        |   |   |   |        |   |   |   |   |   |
| Total                                                                          |   | $      | 25,894      |   |   | $      | 24,727      |   |   | $ | 27,186 |   |

----

| ·  | Loan underwriting and documentation;                                                                                            |
|--------------|---------------------------------------------------------------------------------------------------------------------------------|
| ·  | Credit-granting authority;                                                                                                      |
| ·  | Acceptable collateral and loan structuring;                                                                                     |
| ·  | Loan participations amongst bank affiliates or external funding sources when proposals exceed an individual bank's limitations; |
| ·  | Collections and workouts;                                                                                                       |
| ·  | Documentation, methodology, process and evaluation of the adequacy of the allowance for loan losses; and                        |
| ·  | Establishing corporate credit administration resources to aid the banks when needed.                                            |

----

| ·  | Borrower and project financial data;                                                                        |
|--------------|-------------------------------------------------------------------------------------------------------------|
| ·  | Contingent liabilities and related cash flows;                                                              |
| ·  | Adequacy of liquidity and the components of borrowers' and guarantors' net worth;                           |
| ·  | Historic and projected cash flow data, including debt service and vacancy rates sensitivity analysis;       |
| ·  | Character, credit history of borrowers and guarantors and management ability of the borrowers' enterprise;  |
| ·  | Appraisal market valuation: evaluation of local market conditions and related volatility; and               |
| ·  | Proposed use of loan proceeds and potential future uses of the property (for loans secured by real estate). |

----

----

----

|                                   |   |  Total Portfolio Loans |      |   | Allowance forLoan Losses |   |      | NonperformingLoans |   |   | Allowance as a %of Total PortfolioLoans |   |
|----------------------------------------|--------|-----------------------------|-----------|--------|--------------------------|--------|-----------|--------------------|--------|--------|-----------------------------------------|--------|
|                                   |   | 2010                        |      |   | 2009                     |   |      | 2010               |   |   | 2009                                    |   |   | 2010 |   |   | 2009 |   |   | 2010 |   |   | 2009 |   |
| Arizona Region:                        |   |                        |      |   |                     |   |      |               |   |   |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Bank of Tucson(10)(11)                 |   | $                           | 159,334   |   |                     | $      | 168,644   |               |   | $      | 2,380                                   |   |   | $ | 1,904 |   |   | $ | 7,711 |   |   | $ | 5,110 |   |   |   | 1.49 | % |   |   | 1.13 | % |
| Central Arizona Bank(11)               |   |                        | 52,844    |   |                     |   | 65,934    |               |   |   | 2,552                                   |   |   |   | 3,153 |   |   |   | 5,092 |   |   |   | 3,132 |   |   |   | 4.83 | % |   |   | 4.78 | % |
| Southern Arizona Community Bank(1)(10) |   |                        |      |   |                     |   | 79,190    |               |   |   |                                    |   |   |   | 1,150 |   |   |   |   |   |   |   | 848 |   |   |   |   |   |   |   | 1.45 | % |
| Sunrise Bank of Albuquerque(11)        |   |                        | 52,502    |   |                     |   | 61,025    |               |   |   | 2,499                                   |   |   |   | 1,256 |   |   |   | 4,731 |   |   |   | 3,436 |   |   |   | 4.76 | % |   |   | 2.06 | % |
| Sunrise Bank of Arizona                |   |                        | 264,181   |   |                     |   | 346,134   |               |   |   | 16,700                                  |   |   |   | 17,382 |   |   |   | 29,936 |   |   |   | 32,929 |   |   |   | 6.32 | % |   |   | 5.02 | % |
| Arizona Region Total                   |   |                        | 528,861   |   |                     |   | 720,927   |               |   |   | 24,131                                  |   |   |   | 24,845 |   |   |   | 47,470 |   |   |   | 45,455 |   |   |   | 4.56 | % |   |   | 3.45 | % |
|                                   |   |                        |      |   |                     |   |      |               |   |   |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| California Region:                     |   |                        |      |   |                     |   |      |               |   |   |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Bank of Feather River                  |   |                        | 31,297    |   |                     |   | 26,941    |               |   |   | 479                                     |   |   |   | 347 |   |   |   |   |   |   |   |   |   |   |   | 1.53 | % |   |   | 1.29 | % |
| Bank of San Francisco(1)(10)           |   |                        |      |   |                     |   | 74,782    |               |   |   |                                    |   |   |   | 1,384 |   |   |   |   |   |   |   | 243 |   |   |   |   |   |   |   | 1.85 | % |
| Napa Community Bank(1)(10)             |   |                        |      |   |                     |   | 139,497   |               |   |   |                                    |   |   |   | 2,493 |   |   |   |   |   |   |   | 3,746 |   |   |   |   |   |   |   | 1.79 | % |
| Sunrise Bank(5)(8)                     |   |                        | 183,641   |   |                     |   | 214,682   |               |   |   | 7,815                                   |   |   |   | 6,731 |   |   |   | 8,529 |   |   |   | 8,692 |   |   |   | 4.26 | % |   |   | 3.14 | % |
| California Region Total                |   |                        | 214,938   |   |                     |   | 455,902   |               |   |   | 8,294                                   |   |   |   | 10,955 |   |   |   | 8,529 |   |   |   | 12,681 |   |   |   | 3.86 | % |   |   | 2.40 | % |
|                                   |   |                        |      |   |                     |   |      |               |   |   |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Colorado Region:                       |   |                        |      |   |                     |   |      |               |   |   |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Fort Collins Commerce Bank(1)(10)      |   |                        |      |   |                     |   | 83,047    |               |   |   |                                    |   |   |   | 1,308 |   |   |   |   |   |   |   | 1,291 |   |   |   |   |   |   |   | 1.58 | % |
| Larimer Bank of Commerce(1)(10)        |   |                        |      |   |                     |   | 79,239    |               |   |   |                                    |   |   |   | 1,467 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 1.85 | % |
| Loveland Bank of Commerce(1)(10)       |   |                        |      |   |                     |   | 33,582    |               |   |   |                                    |   |   |   | 560 |   |   |   |   |   |   |   | 156 |   |   |   |   |   |   |   | 1.67 | % |
| Mountain View Bank of Commerce         |   |                        | 41,087    |   |                     |   | 40,201    |               |   |   | 789                                     |   |   |   | 621 |   |   |   | 883 |   |   |   |   |   |   |   | 1.92 | % |   |   | 1.54 | % |
| Colorado Region Total                  |   |                        | 41,087    |   |                     |   | 236,069   |               |   |   | 789                                     |   |   |   | 3,956 |   |   |   | 883 |   |   |   | 1,447 |   |   |   | 1.92 | % |   |   | 1.68 | % |
|                                   |   |                        |      |   |                     |   |      |               |   |   |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Great Lakes Region:                    |   |                        |      |   |                     |   |      |               |   |   |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Bank of Maumee                         |   |                        | 33,558    |   |                     |   | 40,269    |               |   |   | 1,427                                   |   |   |   | 918 |   |   |   | 442 |   |   |   | 810 |   |   |   | 4.25 | % |   |   | 2.28 | % |
| Bank of Michigan                       |   |                        | 64,278    |   |                     |   | 64,374    |               |   |   | 1,368                                   |   |   |   | 1,172 |   |   |   | 2,312 |   |   |   | 844 |   |   |   | 2.13 | % |   |   | 1.82 | % |
| Capitol National Bank(11)              |   |                        | 138,251   |   |                     |   | 172,088   |               |   |   | 5,976                                   |   |   |   | 8,070 |   |   |   | 13,616 |   |   |   | 21,346 |   |   |   | 4.32 | % |   |   | 4.69 | % |
| Evansville Commerce Bank               |   |                        | 38,609    |   |                     |   | 44,179    |               |   |   | 1,103                                   |   |   |   | 1,338 |   |   |   | 1,801 |   |   |   | 1,244 |   |   |   | 2.86 | % |   |   | 3.03 | % |
| Indiana Community Bank(4)(8)           |   |                        | 112,986   |   |                     |   | 133,051   |               |   |   | 3,703                                   |   |   |   | 4,130 |   |   |   | 8,358 |   |   |   | 9,278 |   |   |   | 3.28 | % |   |   | 3.10 | % |
| Michigan Commerce Bank(3)(8)(11)       |   |                        | 812,088   |   |                     |   | 1,044,020 |               |   |   | 57,381                                  |   |   |   | 53,724 |   |   |   | 114,937 |   |   |   | 117,806 |   |   |   | 7.07 | % |   |   | 5.15 | % |
| Ohio Commerce Bank(1)(10)              |   |                        |      |   |                     |   | 56,739    |               |   |   |                                    |   |   |   | 910 |   |   |   |   |   |   |   | 206 |   |   |   |   |   |   |   | 1.60 | % |
| Great Lakes Region Total               |   |                        | 1,199,770 |   |                     |   | 1,554,720 |               |   |   | 70,958                                  |   |   |   | 70,262 |   |   |   | 141,466 |   |   |   | 151,534 |   |   |   | 5.91 | % |   |   | 4.52 | % |
|                                   |   |                        |      |   |                     |   |      |               |   |   |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Midwest Region:                        |   |                        |      |   |                     |   |      |               |   |   |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Adams Dairy Bank(1)(10)                |   |                        |      |   |                     |   | 35,860    |               |   |   |                                    |   |   |   | 655 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 1.83 | % |
| Bank of Belleville(1)(10)              |   |                        |      |   |                     |   | 58,510    |               |   |   |                                    |   |   |   | 938 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 1.60 | % |
| Community Bank of Lincoln(1)(10)       |   |                        |      |   |                     |   | 44,864    |               |   |   |                                    |   |   |   | 1,195 |   |   |   |   |   |   |   | 1,661 |   |   |   |   |   |   |   | 2.66 | % |
| Midwest Region Total                   |   |                        |      |   |                     |   | 139,234   |               |   |   |                                    |   |   |   | 2,788 |   |   |   |   |   |   |   | 1,661 |   |   |   |   |   |   |   | 2.00 | % |

----

|                            |   |  Total Portfolio Loans |      |   | Allowance forLoan Losses |   |      | NonperformingLoans |   |   | Allowance as a %of Total PortfolioLoans |   |
|---------------------------------|--------|-----------------------------|-----------|--------|--------------------------|--------|-----------|--------------------|--------|--------|-----------------------------------------|--------|
|                            |   | 2010                        |      |   | 2009                     |   |      | 2010               |   |   | 2009                                    |   |   | 2010 |   |   | 2009 |   |   | 2010 |   |   | 2009 |   |
| Nevada Region:                  |   |                        |      |   |                     |   |      |               |   |   |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 1st Commerce Bank               |   | $                           | 25,521    |   |                     | $      | 33,482    |               |   | $      | 624                                     |   |   | $ | 1,910 |   |   | $ | 5,611 |   |   | $ | 7,531 |   |   |   | 2.45 | % |   |   | 5.71 | % |
| Bank of Las Vegas(7)(8)(11)     |   |                        | 306,802   |   |                     |   | 368,739   |               |   |   | 25,235                                  |   |   |   | 11,952 |   |   |   | 82,042 |   |   |   | 59,219 |   |   |   | 8.23 | % |   |   | 3.24 | % |
| Nevada Region Total             |   |                        | 332,323   |   |                     |   | 402,221   |               |   |   | 25,859                                  |   |   |   | 13,862 |   |   |   | 87,653 |   |   |   | 66,750 |   |   |   | 7.78 | % |   |   | 3.45 | % |
|                            |   |                        |      |   |                     |   |      |               |   |   |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Northeast Region:               |   |                        |      |   |                     |   |      |               |   |   |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| USNY Bank(1)(10)                |   |                        |      |   |                     |   | 57,849    |               |   |   |                                    |   |   |   | 905 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 1.56 | % |
|                            |   |                        |      |   |                     |   |      |               |   |   |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Northwest Region:               |   |                        |      |   |                     |   |      |               |   |   |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Bank of the Northwest(6)(8)     |   |                        | 118,755   |   |                     |   | 134,669   |               |   |   | 4,000                                   |   |   |   | 4,985 |   |   |   | 6,609 |   |   |   | 9,614 |   |   |   | 3.37 | % |   |   | 3.70 | % |
| High Desert Bank                |   |                        | 29,872    |   |                     |   | 34,203    |               |   |   | 1,350                                   |   |   |   | 805 |   |   |   | 1,053 |   |   |   | 644 |   |   |   | 4.52 | % |   |   | 2.35 | % |
| Northwest Region Total          |   |                        | 148,627   |   |                     |   | 168,872   |               |   |   | 5,350                                   |   |   |   | 5,790 |   |   |   | 7,662 |   |   |   | 10,258 |   |   |   | 3.60 | % |   |   | 3.43 | % |
|                            |   |                        |      |   |                     |   |      |               |   |   |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Southeast Region:               |   |                        |      |   |                     |   |      |               |   |   |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Community Bank of Rowan(9)      |   |                        | 102,926   |   |                     |   |      |               |   |   | 1,736                                   |   |   |   |   |   |   |   | 3,441 |   |   |   |   |   |   |   | 1.69 | % |   |   |   |   |
| First Carolina State Bank(11)   |   |                        | 77,797    |   |                     |   | 90,855    |               |   |   | 2,389                                   |   |   |   | 1,554 |   |   |   | 6,560 |   |   |   | 6,161 |   |   |   | 3.07 | % |   |   | 1.71 | % |
| Pisgah Community Bank           |   |                        | 28,071    |   |                     |   | 45,094    |               |   |   | 1,511                                   |   |   |   | 1,168 |   |   |   | 6,968 |   |   |   | 401 |   |   |   | 5.38 | % |   |   | 2.59 | % |
| Sunrise Bank(2)(8)(11)          |   |                        | 79,558    |   |                     |   | 103,895   |               |   |   | 4,374                                   |   |   |   | 4,152 |   |   |   | 10,452 |   |   |   | 7,928 |   |   |   | 5.50 | % |   |   | 4.00 | % |
| Southeast Region Total          |   |                        | 288,352   |   |                     |   | 239,844   |               |   |   | 10,010                                  |   |   |   | 6,874 |   |   |   | 27,421 |   |   |   | 14,490 |   |   |   | 3.47 | % |   |   | 2.87 | % |
|                            |   |                        |      |   |                     |   |      |               |   |   |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Texas Region:                   |   |                        |      |   |                     |   |      |               |   |   |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Bank of Fort Bend               |   |                        | 29,788    |   |                     |   | 29,215    |               |   |   | 700                                     |   |   |   | 485 |   |   |   | 419 |   |   |   |   |   |   |   | 2.35 | % |   |   | 1.66 | % |
| Bank of Las Colinas             |   |                        | 41,434    |   |                     |   | 34,725    |               |   |   | 737                                     |   |   |   | 731 |   |   |   | 907 |   |   |   |   |   |   |   | 1.78 | % |   |   | 2.11 | % |
| Texas Region Total              |   |                        | 71,222    |   |                     |   | 63,940    |               |   |   | 1,437                                   |   |   |   | 1,216 |   |   |   | 1,326 |   |   |   |   |   |   |   | 2.02 | % |   |   | 1.90 | % |
|                            |   |                        |      |   |                     |   |      |               |   |   |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other, net(11)                  |   |                        | 5,866     |   |                     |   | 7,523     |               |   |   | 2,973                                   |   |   |   | 3,211 |   |   |   | 3,170 |   |   |   | 3,241 |   |   | N.M. |   |   | N.M. |   |
|                            |   |                        |      |   |                     |   |      |               |   |   |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Consolidated totals             |   |                        | 2,831,046 |   |                     |   | 4,047,101 |               |   |   | 149,801                                 |   |   |   | 144,664 |   |   |   | 325,580 |   |   |   | 307,517 |   |   |   | 5.29 | % |   |   | 3.57 | % |
| Less discontinued operations    |   |                        | (159,334  | )      |                     |   | (911,803  | )                  |   |   | (2,380                                  | )      |   |   | (14,869 | ) |   |   | (7,711 | ) |   |   | (13,261 | ) |   |   | (1.49 | )% |   |   | (1.63 | )% |
| Consolidated totals relating to |   |                        |      |   |                     |   |      |               |   |   |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| continued operations            |   | $                           | 2,671,712 |   |                     | $      | 3,135,298 |               |   | $      | 147,421                                 |   |   | $ | 129,795 |   |   | $ | 317,869 |   |   | $ | 294,256 |   |   |   | 5.52 | % |   |   | 4.14 | % |

| (1)  | Capitol sold its ownership in Southern Arizona Community Bank effective December 10, 2010; Fort Collins Commerce Bank, Larimer Bank of Commerce and Loveland Bank of Commerce effective October 29, 2010; Bank of San Francisco effective September 28, 2010; Adams Dairy Bank effective August 31, 2010; USNY Bank effective August 23, 2010; Community Bank of Lincoln effective July 30, 2010; Ohio Commerce Bank effective June 30, 2010; Napa Community Bank effective April 30, 2010 and Bank of Belleville effective April 27, 2010.  The banks' operations have been included in Capitol's consolidated totals up to the date of sale; however, the banks' results are reflected in discontinued operations. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (2)  | Effective July 30, 2010, Peoples State Bank and Sunrise Bank of Atlanta merged with and into Bank of Valdosta.  Upon completion of the merger, the surviving bank was renamed Sunrise Bank.  Prior to the merger, each bank was either a majority-owned subsidiary of Capitol or majority-owned by a bank-development subsidiary in which Capitol holds a controlling interest.                                                                                                                                                                                                                                                                                                                            |
| (3)  | Effective March 31, 2010, Bank of Auburn Hills and Paragon Bank & Trust merged with and into Michigan Commerce Bank.  Prior to the merger, Bank of Auburn Hills and Paragon Bank & Trust were wholly-owned subsidiaries of Capitol.                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| (4)  | Effective March 22, 2010, Elkhart Community Bank merged with and into Goshen Community Bank.  Upon completion of the merger, the surviving bank was renamed Indiana Community Bank.  Prior to the merger, each bank was a wholly-owned subsidiary of Capitol.                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| (5)  | Effective March 5, 2010, Bank of Escondido, Sunrise Bank of San Diego and Sunrise Community Bank merged with and into Point Loma Community Bank.  Upon completion of the merger, the surviving bank was renamed Sunrise Bank.  Prior to the merger, each bank was either a wholly-owned subsidiary of Capitol or majority-owned by a bank-development subsidiary in which Capitol holds a controlling interest.                                                                                                                                                                                                                                                                                            |
| (6)  | Effective February 19, 2010, Bank of Bellevue, Bank of Everett and Bank of Tacoma merged with and into Issaquah Community Bank.  Upon completion of the merger, the surviving bank was renamed Bank of the Northwest.  Prior to the merger, each bank was either a majority-owned subsidiary of Capitol or majority-owned by a bank-development subsidiary in which Capitol holds a controlling interest.                                                                                                                                                                                                                                                                                                  |
| (7)  | Effective January 29, 2010, Black Mountain Community Bank, Desert Community Bank and Red Rock Community Bank merged with and into Bank of Las Vegas.  Prior to the merger, each bank was a wholly-owned subsidiary of Capitol.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| (8)  | For purposes of this presentation, such merger has been reflected as if it occurred December 31, 2009.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| (9)  | As of December 31, 2009, Community Bank of Rowan (CBR) was a majority-owned subsidiary of Capitol Development Bancorp Limited III (CDBL III) which, due to a change in control effective September 30, 2009, became an unconsolidated affiliate of Capitol.  Effective June 30, 2010, CDBL III transferred its controlling interest in CBR to Capitol in exchange for preferred stock of Capitol and, accordingly, CBR became a consolidated subsidiary of Capitol on that date.                                                                                                                                                                                                                                     |
| (10) | Assets of these banks are reflected in discontinued operations.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| (11) | Total portfolio loans and/or allowance for loan losses of these banks as of December 31, 2009 have been adjusted to reflect subsequent regulatory financial statement amendments filed on or after March 20, 2010.  Those amendments did not have an impact on total portfolio loans and allowance for loan losses on a consolidated basis.                                                                                                                                                                                                                                                                                                                                                                          |
| N.M. | Not meaningful                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |

----

----

----

----

----

|                                                                |   |     |         |   | Payments Due by Period |   |
|---------------------------------------------------------------------|--------|----------|--------------|--------|------------------------|--------|
|                                                                |   | Total(1) |         |   | Within1 Year           |   |   | Within1-3 Years |   |   | Within3-5 Years |   |   | After5 Years |   |
|                                                                |   |     |         |   |                   |   |   |   |   |   |   |   |   |   |   |
| Deposits without a stated     maturity          |   | $        | 1,362,458    |   |                   | $      | 1,362,458 |   |   |   |   |   |   |   |   |   |   |
| Time deposits                                                       |   |     | 1,666,226    |   |                   |   | 1,211,882 |   |   | $ | 396,184 |   |   | $ | 57,702 |   |   | $ | 458 |   |
| Debt obligations                                                    |   |     | 123,377      |   |                   |   | 89,655 |   |   |   | 18,825 |   |   |   | 1,466 |   |   |   | 13,431 |   |
| Rent commitments under     noncancelable leases |   |     |  53,249 |   |                   |   |  9,453 |   |   |   |  16,113 |   |   |   |  12,880 |   |   |   |  14,803 |   |
| Subordinated debentures                                             |   |     | 167,586      |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   | 167,586 |   |
|                                                                |   |     |         |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                                                               |   | $        | 3,372,896    |   |                   | $      | 2,673,448 |   |   | $ | 431,122 |   |   | $ | 72,048 |   |   | $ | 196,278 |   |

| (1)   | Excludes interest. |
|-----------------|--------------------|

----

----

----

| Tier 1 capital to average adjusted total assets:             |          |   |     |
|--------------------------------------------------------------|---------------|--------|----------|
| Minimum required amount                                      |  ≥ | $      | 155,224  |   |
| Actual amount                                                |          | $      | (39,980  | ) |
| Ratio                                                        |          |   | (1.03    | )% |
| Deficiency                                                   |          | $      | (195,204 | ) |
|                                                         |          |   |     |   |
| Tier 1 capital to risk-weighted assets:                      |          |   |     |   |
| Minimum required amount(1)                                   |  ≥ | $      | 110,909  |   |
| Actual amount                                                |          | $      | (39,980  | ) |
| Ratio                                                        |          |   | (1.44    | )% |
| Deficiency                                                   |          | $      | (150,889 | ) |
|                                                         |          |   |     |   |
| Combined Tier 1 and Tier 2 capital to risk- weighted assets: |          |   |     |   |
| Minimum required amount(2)                                   |  ≥ | $      | 221,818  |   |
| Actual amount                                                |          | $      | (39,980  | ) |
| Ratio                                                        |          |   | (1.44    | )% |
| Deficiency                                                   |          | $      | (261,798 | ) |

| (1) | The minimum required ratio of Tier 1 capital to risk-weighted assets to be considered adequately-capitalized is 4%.            |
|-----|--------------------------------------------------------------------------------------------------------------------------------|
| (2) | The minimum required ratio of Tier 1 and Tier 2 capital to risk-weighted assets to be considered adequately-capitalized is 8%. |

----

|                             |   |                        |   |   | Tier 1 Risk-Based   |   |   | Total Risk-Based    |   |   |                         |
|----------------------------------|--------|-----------------------------|--------|--------|---------------------|--------|--------|---------------------|--------|--------|------------------------------|
|                             |   | Tier 1 Leverage Ratio(1)(5) |   |   | Capital Ratio(1)(5) |   |   | Capital Ratio(2)(5) |   |   | Regulatory Classification(3) |
|                             |   | 2010                        |   |   | 2009                |   |   | 2010                |   |   | 2009                         |   |   | 2010 |   |   | 2009 |   |   | 2010 |   | 2009 |
| Arizona Region:                  |   |                        |   |   |                |   |   |                |   |   |                         |   |   |   |   |   |   |   |   |   |   |   |
| Bank of Tucson                   |   |                        | 7.09   | %      |                |   | 9.67   | %                   |   |   | 9.31                         | % |   |   | 10.78 | % |   |   | 10.56 | % |   |   | 11.86 | % |   | well-capitalized |   | well-capitalized |
| Central Arizona Bank             |   |                        | 2.24   | %      |                |   | 5.13   | %                   |   |   | 3.20                         | % |   |   | 7.13 | % |   |   | 4.49 | % |   |   | 8.42 | % |   | significantly-undercapitalized |   | adequately-capitalized |
| Sunrise Bank of Albuquerque      |   |                        | 2.43   | %      |                |   | 6.27   | %                   |   |   | 3.39                         | % |   |   | 8.07 | % |   |   | 4.68 | % |   |   | 9.33 | % |   | significantly-undercapitalized |   | adequately-capitalized(6) |
| Sunrise Bank of Arizona          |   |                        | 0.69   | %      |                |   | 3.62   | %                   |   |   | 0.92                         | % |   |   | 5.01 | % |   |   | 1.84 | % |   |   | 6.30 | % |   | critically-undercapitalized(14) |   | undercapitalized |
|                             |   |                        |   |   |                |   |   |                |   |   |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| California Region:               |   |                        |   |   |                |   |   |                |   |   |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Bank of Feather River            |   |                        | 16.08  | %      |                |   | 18.59  | %                   |   |   | 21.16                        | % |   |   | 25.84 | % |   |   | 22.42 | % |   |   | 27.09 | % |   | well-capitalized |   | well-capitalized |
| Sunrise Bank(10)(13)             |   |                        | 7.04   | %      |                |   | 7.97   | %                   |   |   | 9.93                         | % |   |   | 10.57 | % |   |   | 11.22 | % |   |   | 11.83 | % |   | adequately-capitalized(6) |   | well-capitalized |
|                             |   |                        |   |   |                |   |   |                |   |   |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Colorado Region:                 |   |                        |   |   |                |   |   |                |   |   |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Mountain View Bank ofCommerce(4) |   |                        | 12.02  | %      |                |   | 14.20  | %                   |   |   | 17.99                        | % |   |   | 17.99 | % |   |   | 19.25 | % |   |   | 19.24 | % |   |  well-capitalized |   |  well-capitalized |
|                             |   |                        |   |   |                |   |   |                |   |   |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Great Lakes Region:              |   |                        |   |   |                |   |   |                |   |   |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Bank of Maumee                   |   |                        | 7.00   | %      |                |   | 8.50   | %                   |   |   | 9.43                         | % |   |   | 10.42 | % |   |   | 10.72 | % |   |   | 11.68 | % |   | well-capitalized |   | well-capitalized |
| Bank of Michigan                 |   |                        | 7.67   | %      |                |   | 7.11   | %                   |   |   | 10.33                        | % |   |   | 11.19 | % |   |   | 11.59 | % |   |   | 12.44 | % |   | well-capitalized |   | well-capitalized |
| Capitol National Bank            |   |                        | 6.10   | %      |                |   | 6.45   | %                   |   |   | 7.74                         | % |   |   | 8.15 | % |   |   | 9.03 | % |   |   | 9.44 | % |   | adequately-capitalized |   | adequately-capitalized(6) |
| Evansville Commerce Bank         |   |                        | 8.47   | %      |                |   | 8.01   | %                   |   |   | 12.25                        | % |   |   | 11.28 | % |   |   | 13.52 | % |   |   | 12.55 | % |   | well-capitalized |   | well-capitalized |
| Indiana Community Bank(9)(13)    |   |                        | 6.34   | %      |                |   | 8.11   | %                   |   |   | 8.19                         | % |   |   | 10.81 | % |   |   | 9.47 | % |   |   | 12.08 | % |   | adequately-capitalized |   | adequately-capitalized(6) |
| Michigan Commerce Bank(8)(13)    |   |                        | 1.15   | %      |                |   | 4.03   | %                   |   |   | 1.46                         | % |   |   | 5.00 | % |   |   | 2.78 | % |   |   | 6.30 | % |   | critically-undercapitalized(14) |   | undercapitalized |
|                             |   |                        |   |   |                |   |   |                |   |   |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Nevada Region:                   |   |                        |   |   |                |   |   |                |   |   |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 1st Commerce Bank                |   |                        | 2.48   | %      |                |   | 7.08   | %                   |   |   | 3.94                         | % |   |   | 8.89 | % |   |   | 5.20 | % |   |   | 10.20 | % |   | significantly-undercapitalized |   | well-capitalized |
| Bank of Las Vegas(12)(13)        |   |                        | 2.06   | %      |                |   | 5.08   | %                   |   |   | 2.93                         | % |   |   | 6.25 | % |   |   | 4.27 | % |   |   | 7.51 | % |   | significantly-undercapitalized |   | undercapitalized |
|                             |   |                        |   |   |                |   |   |                |   |   |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Northwest Region:                |   |                        |   |   |                |   |   |                |   |   |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Bank of the Northwest(11)(13)    |   |                        | 10.05  | %      |                |   | 15.16  | %                   |   |   | 13.25                        | % |   |   | 20.75 | % |   |   | 14.52 | % |   |   | 22.01 | % |   | adequately-capitalized(6) |   | well-capitalized |
| High Desert Bank                 |   |                        | 7.83   | %      |                |   | 8.45   | %                   |   |   | 10.07                        | % |   |   | 11.28 | % |   |   | 11.36 | % |   |   | 12.55 | % |   | adequately-capitalized(6) |   | adequately-capitalized(6) |
|                             |   |                        |   |   |                |   |   |                |   |   |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Southeast Region:                |   |                        |   |   |                |   |   |                |   |   |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Community Bank of Rowan          |   |                        | 6.83   | %      |                |   | 8.17   | %                   |   |   | 10.05                        | % |   |   | 10.52 | % |   |   | 11.30 | % |   |   | 11.77 | % |   | well-capitalized |   | well-capitalized |
| First Carolina State Bank        |   |                        | 3.11   | %      |                |   | 7.08   | %                   |   |   | 4.75                         | % |   |   | 9.18 | % |   |   | 6.02 | % |   |   | 10.44 | % |   | undercapitalized |   | well-capitalized |
| Pisgah Community Bank(4)         |   |                        | 2.03   | %      |                |   | 10.17  | %                   |   |   | 3.52                         | % |   |   | 14.39 | % |   |   | 4.82 | % |   |   | 15.66 | % |   | significantly-undercapitalized |   | well-capitalized |
| Sunrise Bank(7)(13)              |   |                        | 2.14   | %      |                |   | 7.12   | %                   |   |   | 3.29                         | % |   |   | 11.19 | % |   |   | 4.59 | % |   |   | 12.46 | % |   | significantly-undercapitalized |   | adequately-capitalized(6) |
|                             |   |                        |   |   |                |   |   |                |   |   |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Texas Region:                    |   |                        |   |   |                |   |   |                |   |   |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Bank of Fort Bend                |   |                        | 14.27  | %      |                |   | 16.05  | %                   |   |   | 19.06                        | % |   |   | 19.76 | % |   |   | 20.32 | % |   |   | 21.01 | % |   | well-capitalized |   | well-capitalized |
| Bank of Las Colinas              |   |                        | 11.58  | %      |                |   | 12.56  | %                   |   |   | 14.46                        | % |   |   | 16.54 | % |   |   | 15.72 | % |   |   | 17.81 | % |   | well-capitalized |   | well-capitalized |
|                             |   |                        |   |   |                |   |   |                |   |   |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Consolidated totals              |   |                        | (1.03  | )%     |                |   | 4.61   | %                   |   |   | (1.44                        | )% |   |   | 5.99 | % |   |   | (1.44 | )% |   |   | 9.46 | % |   | less thanadequately-capitalized |   | adequately-capitalized |

----

| (1)  | The minimum required Tier 1 leverage ratio and Tier 1 risk-based capital ratio is 4% (8% for de novo institutions).                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (2)  | The minimum required total risk-based capital ratio is 8%.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| (3)  | In order to be classified as a 'well-capitalized' institution, the total risk-based capital ratio must be 10% or more.  To be classified as an 'adequately-capitalized' institution, the total risk-based capital ratio must be between 8% and 10%.  Institutions are classified as 'undercapitalized' when the total risk-based ratio is between 6% and 8% and 'significantly-undercapitalized' when such ratio falls below 6%.  Institutions with a Tier 1 leverage ratio below 2% are classified as 'critically-undercapitalized'. |
| (4)  | De novo institution which is subject to higher minimum ratio requirements as noted in (1) above for the first three years of operations.                                                                                                                                                                                                                                                                                                                                                                                                                            |
| (5)  | Ratios are based on the regulatory reports filed at original due date which is generally within 30 days after quarter-end.                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| (6)  | Institution is subject to a regulatory agreement and, accordingly, cannot be classified better than adequately-capitalized even though the risk-based capital ratios would otherwise suggest well-capitalized classification.                                                                                                                                                                                                                                                                                                                                       |
| (7)  | Effective July 30, 2010, Peoples State Bank and Sunrise Bank of Atlanta merged with and into Bank of Valdosta.  Upon completion of the merger, the surviving bank was renamed Sunrise Bank.  Prior to the merger, each bank was either a majority-owned subsidiary of Capitol or majority-owned by a bank-development subsidiary in which Capitol holds a controlling interest.                                                                                                                                                                 |
| (8)  | Effective March 31, 2010, Bank of Auburn Hills and Paragon Bank & Trust merged with and into Michigan Commerce Bank.  Prior to the merger, Bank of Auburn Hills and Paragon Bank & Trust were wholly-owned subsidiaries of Capitol.                                                                                                                                                                                                                                                                                                               |
| (9)  | Effective March 22, 2010, Elkhart Community Bank merged with and into Goshen Community Bank.  Upon completion of the merger, the surviving bank was renamed Indiana Community Bank.  Prior to the merger, each bank was a wholly-owned subsidiary of Capitol.                                                                                                                                                                                                                                                                                   |
| (10) | Effective March 5, 2010, Bank of Escondido, Sunrise Bank of San Diego and Sunrise Community Bank merged with and into Point Loma Community Bank.  Upon completion of the merger, the surviving bank was renamed Sunrise Bank.  Prior to the merger, each bank was either a wholly-owned subsidiary of Capitol or majority-owned by a bank-development subsidiary in which Capitol holds a controlling interest.                                                                                                                                 |
| (11) | Effective February 19, 2010, Bank of Bellevue, Bank of Everett and Bank of Tacoma merged with and into Issaquah Community Bank.  Upon completion of the merger, the surviving bank was renamed Bank of the Northwest.  Prior to the merger, each bank was either a majority-owned subsidiary of Capitol or majority-owned by a bank-development subsidiary in which Capitol holds a controlling interest.                                                                                                                                       |
| (12) | Effective January 29, 2010, Black Mountain Community Bank, Desert Community Bank and Red Rock Community Bank merged with and into Bank of Las Vegas.  Prior to the merger, each bank was a wholly-owned subsidiary of Capitol.                                                                                                                                                                                                                                                                                                                            |
| (13) | For purposes of this presentation, such merger has been reflected as if it occurred on December 31, 2009.                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| (14) | Subsequent capital contributions in January 2011 eliminated the banks' classification as critically-undercapitalized in 2011.                                                                                                                                                                                                                                                                                                                                                                                                                                       |

----

----

| PCAN                        |   | PCAD                    |
|-----------------------------|--------|-------------------------|
|                        |   |                    |
| Michigan Commerce Bank      |   | Michigan Commerce Bank  |
| Bank of Las Vegas           |   | Bank of Las Vegas       |
| Sunrise Bank of Arizona     |   | Sunrise Bank of Arizona |
| Sunrise Bank (GA)           |   |                    |
| First Carolina State Bank   |   |                    |
| Central Arizona Bank        |   | Central Arizona Bank    |
| Sunrise Bank of Albuquerque |   |                    |
| 1st Commerce Bank           |   |                    |
| Pisgah Community Bank       |   |                    |

----

| ·   | An equity deficit approximating $38.7 million; |
|--------------------|------------------------------------------------|

| ·   | Regulatory capital classification on a consolidated basis as less than adequately-capitalized and related negative amounts and ratios; |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Numerous banking subsidiaries with regulatory capital classification as "undercapitalized," "significantly-undercapitalized" or "critically-undercapitalized" (two banks were classified as "critically-undercapitalized" at December 31, 2010 and obtained sufficient additional capital from the Corporation in early 2011 to improve their classification to "significantly-undercapitalized"); |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| ·   | Certain banking subsidiaries which are generally subject to formal regulatory agreements have received "prompt corrective action" notifications and/or directives from the FDIC, which require timely action by bank management and the respective boards of directors to resolve regulatory capital ratios which result in classification as less than adequately-capitalized (the basis of a PCAN) or to submit an acceptable capital restoration plan to the FDIC (the basis of a PCAD), and it is likely additional PCANs and/or PCADs may be issued in the future and/or the banking subsidiaries may be unable to satisfactorily resolve such notices and/or directives; |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | In 2010, Capitol sold several of its banking subsidiaries and has other divestiture transactions pending (see Note L to the accompanying consolidated financial statements).  The proceeds from those divestitures have been redeployed at certain remaining banking subsidiaries which have experienced a significant erosion of capital due to operating losses.  While such proceeds have been a significant source of funds for redeployment, the Corporation will need to raise significant other sources of new capital in the future; |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The Corporation and substantially all of its banking subsidiaries are operating under various regulatory agreements (formal and informal) which place a number of restrictions on them and impose other requirements limiting activities, requiring preservation of capital, improvement in regulatory capital measures, reduction of nonperforming assets and other things for which the entities have not achieved full compliance; |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Elevated levels of nonperforming loans and other nonperforming assets as a percentage of consolidated loans and total assets, respectively; and |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Significant losses from operations in 2010, 2009 and 2008, resulting primarily from provisions for loan losses, costs associated with foreclosed properties and other real estate owned and, in 2010, an impairment charge to operations for the write-off of previously-recorded goodwill ($64.5 million). |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | An offer to exchange all outstanding trust-preferred securities; |
|--------------------|------------------------------------------------------------------|

| ·   | Amendment to Capitol's articles of incorporation to authorize additional shares of common stock; |
|--------------------|--------------------------------------------------------------------------------------------------|

| ·   | A potential shareholder rights offering; and |
|--------------------|----------------------------------------------|

| ·   | A potential reverse stock split. |
|--------------------|----------------------------------|

----

| ·   | Raising significant amounts of new capital; |
|--------------------|---------------------------------------------|

| ·   | Completion of divestitures which are currently pending; |
|--------------------|---------------------------------------------------------|

| ·   | A shareholder rights offering; |
|--------------------|--------------------------------|

| ·   | Further reductions in nonperforming assets; |
|--------------------|---------------------------------------------|

| ·   | Stabilization of provisions for loan losses and impairment losses; |
|--------------------|--------------------------------------------------------------------|

| ·   | Resuscitation of Capitol's trust-preferred securities as a qualifying element of regulatory capital and/or equity; and |
|--------------------|------------------------------------------------------------------------------------------------------------------------|

| ·   | Further reductions in operating expenses through mergers of bank subsidiaries completed in recent years. |
|--------------------|----------------------------------------------------------------------------------------------------------|

----

|                                                                      |   | Interest Rate Sensitivity |         |   |          |   |
|---------------------------------------------------------------------------|--------|---------------------------|--------------|--------|---------------|--------|
|                                                                      |   | 0 to 3Months              |         |   | 4 to 12Months |   |   | 1 to 5Years |   |   | Over 5Years |   |   | Total |   |
| ASSETS                                                                    |   |                      |         |   |          |   |   |   |   |   |   |   |   |   |   |
| Money market and interest-bearing deposits                                |   | $                         | 465,778      |   |          | $      | 24,838 |   |   | $ | 15,797 |   |   |   |   |   | $ | 506,413 |   |
| Federal funds sold                                                        |   |                      | 418          |   |          |   |   |   |   |   |   |   |   |   |   |   |   | 418 |   |
| Loans held for sale                                                       |   |                      | 7,041        |   |          |   |   |   |   |   |   |   |   |   |   |   |   | 7,041 |   |
| Investment securities                                                     |   |                      | 6,000        |   |          |   | 1,798 |   |   |   | 6,983 |   |   | $ | 12,251 |   |   |   | 27,032 |   |
| Federal Home Loan Bank & Federal Reserve    Bank stock |   |                      |  18,167 |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |  18,167 |   |
| Portfolio loans                                                           |   |                      | 826,230      |   |          |   | 371,777 |   |   |   | 1,031,995 |   |   |   | 441,710 |   |   |   | 2,671,712 |   |
| Nonearning assets                                                         |   |                      |         |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   | 309,431 |   |
|                                                                      |   |                      |         |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total assets                                                              |   | $                         | 1,323,634    |   |          | $      | 398,413 |   |   | $ | 1,054,775 |   |   | $ | 453,961 |   |   | $ | 3,540,214 |   |
|                                                                      |   |                      |         |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| LIABILITIES AND EQUITY                                                    |   |                      |         |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing deposits:                                                |   |                      |         |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Time deposits under $100,000                                              |   | $                         | 174,118      |   |          | $      | 358,106 |   |   | $ | 222,748 |   |   | $ | 355 |   |   | $ | 755,327 |   |
| Time deposits $100,000 and over                                           |   |                      | 258,535      |   |          |   | 421,059 |   |   |   | 231,138 |   |   |   | 103 |   |   |   | 910,835 |   |
| All other interest-bearing deposits                                       |   |                      | 579,151      |   |          |   | 115,425 |   |   |   |   |   |   |   | 151,073 |   |   |   | 845,649 |   |
| Total interest-bearing deposits                                           |   |                      | 1,011,804    |   |          |   | 894,590 |   |   |   | 453,886 |   |   |   | 151,531 |   |   |   | 2,511,811 |   |
| Notes payable and short-term borrowings                                   |   |                      | 45,887       |   |          |   | 43,768 |   |   |   | 20,291 |   |   |   | 13,431 |   |   |   | 123,377 |   |
| Subordinated debentures                                                   |   |                      | 67,098       |   |          |   |   |   |   |   | 42,886 |   |   |   | 57,602 |   |   |   | 167,586 |   |
| Noninterest-bearing liabilities                                           |   |                      |         |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   | 776,121 |   |
| Total liabilities                                                         |   |                      |         |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   | 3,578,895 |   |
| Equity:                                                                   |   |                      |         |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Capitol Bancorp stockholders' equity                                      |   |                      |         |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   | (61,854 | ) |
| Noncontrolling interests in consolidated    subsidiaries   |   |                      |         |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |  23,173 |   |
| Total equity deficit                                                      |   |                      |         |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   | (38,681 | ) |
|                                                                      |   |                      |         |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total liabilities and equity                                              |   | $                         | 1,124,789    |   |          | $      | 938,358 |   |   | $ | 517,063 |   |   | $ | 222,564 |   |   | $ | 3,540,214 |   |
|                                                                      |   |                      |         |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest rate sensitive period gap                                        |   | $                         | 198,845      |   |          | $      | (539,945 | ) |   | $ | 537,712 |   |   | $ | 231,397 |   |   |   |   |   |
|                                                                      |   |                      |         |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest rate sensitive cumulative gap                                    |   | $                         | 198,845      |   |          | $      | (341,100 | ) |   | $ | 196,612 |   |   | $ | 428,009 |   |   |   |   |   |
|                                                                      |   |                      |         |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Period rate sensitive assets/period ratesensitive liabilities             |   |                      |  1.18   |   |          |   |  0.42 |   |   |   |  2.04 |   |   |   |  2.04 |   |   |   |   |   |
| Cumulative rate sensitive assets/cumulativerate sensitive liabilities     |   |                      |  1.18   |   |          |   |  0.83 |   |   |   |  1.08 |   |   |   |  1.15 |   |   |   |   |   |
| Cumulative gap to total assets                                            |   |                      | 5.62         | %      |          |   | (9.64 | )% |   |   | 5.55 | % |   |   | 12.09 | % |   |   |   |   |

----

|                |   |           |    |   |                          |   |    |                |   |   |    |   |   | Pro Forma  |    |
|---------------------|--------|----------------|---------|--------|-------------------------------|--------|---------|---------------------|--------|--------|---------|--------|--------|-----------------|---------|
|                |   | Pro Forma      |    |   |                          |   |    |                |   |   |    |   |   | Effect of  |    |
|                |   | Assuming No    |    |   | Pro Forma Effect of      |   |    | Interest Rate  |   |
|                |   | Change in      |    |   | Interest Rate Increases  |   |    | Decreases      |   |
|                |   | Interest Rates |    |   | +100 bp                       |   |    | +200 bp             |   |   | +300 bp |   |   | -100 bp         |    |
|                |   |           |    |   |                          |   |    |                |   |   |    |   |   |            |    |
| Interest income     |   | $              | 148,641 |   |                          | $      | 161,438 |                |   | $      | 174,776 |   |   | $               | 189,054 |   |   | $ | 139,486 |   |
| Interest expense    |   |           | 48,012  |   |                          |   | 62,206  |                |   |   | 76,569  |   |   |            | 90,931  |   |   |   | 37,077 |   |
|                |   |           |    |   |                          |   |    |                |   |   |    |   |   |            |    |   |   |   |   |   |
| Net interest income |   | $              | 100,629 |   |                          | $      | 99,232  |                |   | $      | 98,207  |   |   | $               | 98,123  |   |   | $ | 102,409 |   |

----

----

|                               |               |   | Sale     |   |   |        |   |
|------------------------------------|--------------------|--------|----------|--------|--------|-------------|--------|
|                               | Date Sold          |   | Proceeds |   |   | Gain (Loss) |   |
| Bank of Belleville(1)              | April 27, 2010     |   | $        | 5,090  |   |        | $      | 1,331 |   |
| Napa Community Bank(1)(3)          | April 30, 2010     |   |     | 21,574 |   |        |   | 7,372 |   |
| Ohio Commerce Bank(2)              | June 30, 2010      |   |     | 6,520  |   |        |   | 1,478 |   |
| Community Bank of Lincoln(2)       | July 30, 2010      |   |     | 3,750  |   |        |   | 1,268 |   |
| USNY Bank(2)                       | August 23, 2010    |   |     | 2,700  |   |        |   | (271 | ) |
| Adams Dairy Bank(2)                | August 31, 2010    |   |     | 4,335  |   |        |   | 559 |   |
| Bank of San Francisco(1)           | September 28, 2010 |   |     | 6,604  |   |        |   | 1,740 |   |
| Fort Collins Commerce Bank(1)      | October 29, 2010   |   |     | 5,822  |   |        |   | 597 |   |
| Larimer Bank of Commerce(1)        | October 29, 2010   |   |     | 4,332  |   |        |   | (163 | ) |
| Loveland Bank of Commerce(1)       | October 29, 2010   |   |     | 4,346  |   |        |   | 943 |   |
| Southern Arizona Community Bank(1) | December 10, 2010  |   |     | 11,028 |   |        |   | 930 |   |
|                               |               |   |     |   |   |        |   |   |   |
|                               |               |   | $        | 76,101 |   |        | $      | 15,784 |   |

|   | (1) | Previously a majority-owned subsidiary of Capitol. |
|--------|-----|----------------------------------------------------|

|   | (2) | Previously a majority-owned subsidiary of a bank-development subsidiary controlled by Capitol. |
|--------|-----|------------------------------------------------------------------------------------------------|

|   | (3) | Under the terms of the sale transaction, Capitol could receive additional proceeds of up to $5.3 million in the future, subject to   Napa Community Bank's future financial performance. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

----

| ·  | Some doubt (potentially significant doubt) exists as to Capitol's ability to continue as a going concern                                                                                                                                     |
|--------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ·  | The regulatory environment for the banking industry could change significantly and adversely, and Capitol and its banking subsidiaries are dependent upon continued cooperation by regulatory agencies                                       |
| ·  | The adverse economic environment of 2010 may worsen, further resulting in higher levels of nonperforming loans and loan losses                                                                                                               |
| ·  | The environment for raising capital has become unstable and may limit growth plans and operations                                                                                                                                            |
| ·  | Changes in regulations or regulatory action regarding Capitol or its banks could limit future expansion plans and operations                                                                                                                 |
| ·  | The allowance for loan losses is based on estimates and actual losses and regulatory determinations may differ materially from those estimates                                                                                               |
| ·  | Concentrations in loans secured by commercial real estate could limit or delay future expansion plans and loss estimates could change significantly if real estate market conditions deteriorate further                                     |
| ·  | Loss estimates for real estate collateral-dependent loans are based on independent appraisals which are subject to change                                                                                                                    |
| ·  | Investments in Federal Home Loan Bank stock are carried at cost and are a restricted security which may be redeemed only by the issuer; the issuer's future ability to redeem the security is subject to its liquidity and capital adequacy  |
| ·  | The complexity of Capitol's structure (a mixture of partially-owned and wholly-owned banks and related entities) complicates financial analysis                                                                                                   |

----

----

|     Joseph D. ReidChairman and CEO Lansing, MichiganMarch 31, 2011 |     Lee W. HendricksonChief Financial Officer |
|----------------------------------------------------------------------------------------|--------------------------------------------------------------|

----

----

|        |   |   |  Tel:  616 774 7000Fax:  616 776 3680www.bdo.com  |  99 Monroe Avenue NW, Suite 800Grand Rapids, Michigan 49503-2654  |
|----------------------------|--------|--------|-----------------------------------------------------------------------|----------------------------------------------------------------------------------|

----

| Consolidated Balance Sheets                                                                                                                                                                                                                                                                                                            |                        |   |          |      |   |   |      |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------|--------|---------------|-----------|--------|--------|-----------|
|                                                                                                                                                                                                                                                                                                                                   |                        |   |          |      |   |   |      |
|                                                                                                                                                                                                                                                                                                                                   |                        |   |          |      |   |   |      |
|                                                                                                                                                                                                                                                                                                                                   |                        |   | -December 31- |      |
|                                                                                                                                                                                                                                                                                                                                   |                        |   | 2010          |      |   | 2009   |      |
|                                                                                                                                                                                                                                                                                                                                   |                        |   | (in $1,000s)  |      |
| ASSETS                                                                                                                                                                                                                                                                                                                                 |                        |   |          |      |   |   |      |
| Cash and due from banks                                                                                                                                                                                                                                                                                                                |                        |   | $             | 58,347    |   |   | $         | 56,231 |   |
| Money market and interest-bearing deposits                                                                                                                                                                                                                                                                                             |                        |   | 506,413       |      |   |   | 608,727   |   |
| Federal funds sold                                                                                                                                                                                                                                                                                                                     |                        |   |          | 418       |   |   |      | 4,861 |   |
|                                                                                                                                                                                                                                                                                                                                   | Cash and cash equivalents   |   |          | 565,178   |   |   |      | 669,819 |   |
| Loans held for sale                                                                                                                                                                                                                                                                                                                    |                        |   |          | 7,041     |   |   |      | 10,966 |   |
| Investment securities—Note C:                                                                                                                                                                                                                                                                                                    |                        |   |          |      |   |   |      |   |   |
|   Available for sale, carried at fair value                                                                                                                                                                                                                                                                                  |                        |   | 24,139        |      |   |   | 35,765    |   |
|   Held for long-term investment, carried at                                                                                                                                                                                                                                                                                  |                        |   |          |      |   |   |      |   |
|     amortized cost which approximates fair value                                                                                                                                                                                                                                                                   |                        |   | 2,893         |      |   |   | 5,790     |   |
|                                                                                                                                                                                                                                                                                                                                   | Total investment securities |   |          | 27,032    |   |   |      | 41,555 |   |
| Federal Home Loan Bank and Federal Reserve                                                                                                                                                                                                                                                                                             |                        |   |          |      |   |   |      |   |
|   Bank stock (carried on the basis of cost)—Note C                                                                                                                                                                                                                                                                     |                        |   | 18,167        |      |   |   | 18,628    |   |
| Portfolio loans, less allowance for loan losses of $147,421 in                                                                                                                                                                                                                                                                         |                        |   |          |      |   |   |      |   |
|   2010 and $129,795 in 2009—Note D                                                                                                                                                                                                                                                                                     |                        |   |          | 2,524,291 |   |   |      | 3,005,503 |   |
| Premises and equipment—Note F                                                                                                                                                                                                                                                                                                    |                        |   |          | 38,393    |   |   |      | 42,219 |   |
| Accrued interest income                                                                                                                                                                                                                                                                                                                |                        |   |          | 9,246     |   |   |      | 12,239 |   |
| Goodwill—Note G                                                                                                                                                                                                                                                                                                                  |                        |   |          | --        |   |   |      | 65,210 |   |
| Other real estate owned                                                                                                                                                                                                                                                                                                                |                        |   |          | 107,614   |   |   |      | 107,013 |   |
| Recoverable income taxes—Note N                                                                                                                                                                                                                                                                                                  |                        |   | --            |      |   |   | 43,763    |   |
| Other assets                                                                                                                                                                                                                                                                                                                           |                        |   |          | 20,370    |   |   |      | 31,922 |   |
| Assets of discontinued operations—Note L                                                                                                                                                                                                                                                                                         |                        |   | 222,882       |      |   |   | 1,083,103 |   |
|                                                                                                                                                                                                                                                                                                                                   |                        |   |          |      |   |   |      |   |   |
|             TOTAL ASSETS                                                                                                                                                                                                                                                   |                        |   | $             | 3,540,214 |   |   | $         | 5,131,940 |   |
|                                                                                                                                                                                                                                                                                                                                   |                        |   |          |      |   |   |      |   |   |
| LIABILITIES AND EQUITY                                                                                                                                                                                                                                                                                                                 |                        |   |          |      |   |   |      |   |   |
| Deposits:                                                                                                                                                                                                                                                                                                                              |                        |   |          |      |   |   |      |   |   |
|   Noninterest-bearing                                                                                                                                                                                                                                                                                                        |                        |   | $             | 516,873   |   |   | $         | 491,763 |   |
|   Interest-bearing—Note H                                                                                                                                                                                                                                                                                              |                        |   |          | 2,511,811 |   |   |      | 3,027,063 |   |
|                                                                                                                                                                                                                                                                                                                                   | Total deposits              |   |          | 3,028,684 |   |   |      | 3,518,826 |   |
| Debt obligations:                                                                                                                                                                                                                                                                                                                      |                        |   |          |      |   |   |      |   |   |
|   Notes payable and short-term borrowings—Note I                                                                                                                                                                                                                                                                       |                        |   | 123,377       |      |   |   | 197,653   |   |
|   Subordinated debentures—Notes J and V                                                                                                                                                                                                                                                                                |                        |   | 167,586       |      |   |   | 167,441   |   |
|                                                                                                                                                                                                                                                                                                                                   | Total debt obligations      |   |          | 290,963   |   |   |      | 365,094 |   |
| Accrued interest on deposits and other liabilities                                                                                                                                                                                                                                                                                     |                        |   | 50,420        |      |   |   | 42,099    |   |
| Liabilities of discontinued operations—Note L                                                                                                                                                                                                                                                                                    |                        |   | 208,828       |      |   |   | 972,315   |   |
|                                                                                                                                                                                                                                                                                                                                   | Total liabilities           |   |          | 3,578,895 |   |   |      | 4,898,334 |   |
|                                                                                                                                                                                                                                                                                                                                   |                        |   |          |      |   |   |      |   |   |
| EQUITY—Notes B, K, R and V                                                                                                                                                                                                                                                                                                       |                        |   |          |      |   |   |      |   |   |
| Capitol Bancorp Limited stockholders' equity:                                                                                                                                                                                                                                                                                          |                        |   |          |      |   |   |      |   |
|   Preferred stock (Series A), 700,000 shares authorized                                                                                                                                                                                                                                                                      |                        |   |          |      |   |   |      |   |
|     ($100 liquidation preference per share); 50,980 shares                                                                                                                                                                                                                                                         |                        |   |          |      |   |   |      |   |
|     issued and outstanding in 2010 (none in 2009)                                                                                                                                                                                                                                                                  |                        |   | 5,098         |      |   |   | --        |   |
|   Preferred stock (for potential future issuance),                                                                                                                                                                                                                                                                           |                        |   |          |      |   |   |      |   |
|     19,300,000 shares authorized (none issued and outstanding)                                                                                                                                                                                                                                                     |                        |   | --            |      |   |   | --        |   |
|   Common stock, no par value, 50,000,000 shares authorized;                                                                                                                                                                                                                                                                  |                        |   |          |      |   |   |      |   |
|     issued and outstanding:    2010 - 21,614,856 shares                                                                                                                                                                                                                                             |                        |   |          |      |   |   |      |   |
|                                                     2009 - 17,545,631 shares |                        |   | 287,190       |      |   |   | 277,707   |   |
|   Retained-earnings deficit                                                                                                                                                                                                                                                                                                  |                        |   |          | (353,757  | )      |   |      | (115,751 | ) |
|   Undistributed common stock held by employee-benefit trust                                                                                                                                                                                                                                                                  |                        |   | (541          | )         |   |   | (558      | ) |
|   Fair value adjustment (net of tax effect) for investment securities                                                                                                                                                                                                                                                        |                        |   |          |      |   |   |      |   |
|     available for sale (accumulated other comprehensive income/loss)                                                                                                                                                                                                                                               |                        |   | 156           |      |   |   | (63       | ) |
| Total Capitol Bancorp Limited stockholders' equity (deficit)                                                                                                                                                                                                                                                                           |                        |   | (61,854       | )         |   |   | 161,335   |   |
| Noncontrolling interests in consolidated subsidiaries                                                                                                                                                                                                                                                                                  |                        |   | 23,173        |      |   |   | 72,271    |   |
|                                                                                                                                                                                                                                                                                                                                   | Total equity (deficit)      |   |          | (38,681   | )      |   |      | 233,606 |   |
|                                                                                                                                                                                                                                                                                                                                   |                        |   |          |      |   |   |      |   |   |
|             TOTAL LIABILITIES AND EQUITY                                                                                                                                                                                                                                   |                        | $      | 3,540,214     |      |   | $      | 5,131,940 |   |
|                                                                                                                                                                                                                                                                                                                                   |                        |   |          |      |   |   |      |   |   |
| See notes to consolidated financial statements.                                                                                                                                                                                                                                                                                        |                        |   |          |      |   |   |      |   |

----

| Consolidated Statements of Operations                                |   |                               |     |   |   |   |     |   |   |
|----------------------------------------------------------------------|--------|------------------------------------|----------|--------|--------|--------|----------|--------|--------|
|                                                                 |   |                               |     |   |   |   |     |   |   |
|                                                                 |   |                               |     |   |   |   |     |   |   |
|                                                                 |   |                               |     |   |   |   |     |   |   |
|                                                                 |   | -Year Ended December 31-           |     |
|                                                                 |   | 2010                               |     |   | 2009   |   |     | 2008   |   |
|                                                                 |   | (in $1,000s except per share data) |     |
| Interest income:                                                     |   |                               |     |   |   |   |     |   |   |
|   Portfolio loans (including fees)                         |   | $                                  | 160,645  |   |   | $      | 194,951  |   |   | $ | 229,144 |   |
|   Loans held for sale                                      |   |                               | 266      |   |   |   | 618      |   |   |   | 617 |   |
|   Taxable investment securities                            |   |                               | 553      |   |   |   | 488      |   |   |   | 404 |   |
|   Federal funds sold                                       |   |                               | 10       |   |   |   | 43       |   |   |   | 2,787 |   |
|   Other                                                    |   |                               | 2,217    |   |   |   | 1,685    |   |   |   | 1,506 |   |
| Total interest income                                                |   |                               | 163,691  |   |   |   | 197,785  |   |   |   | 234,458 |   |
| Interest expense:                                                    |   |                               |     |   |   |   |     |   |   |   |   |   |
|   Deposits                                                 |   |                               | 47,269   |   |   |   | 70,363   |   |   |   | 90,550 |   |
|   Debt obligations and other                               |   |                               | 16,313   |   |   |   | 20,749   |   |   |   | 25,084 |   |
| Total interest expense                                               |   |                               | 63,582   |   |   |   | 91,112   |   |   |   | 115,634 |   |
| Net interest income                                                  |   |                               | 100,109  |   |   |   | 106,673  |   |   |   | 118,824 |   |
| Provision for loan losses—Note D                               |   |                               | 156,868  |   |   |   | 175,234  |   |   |   | 75,791 |   |
| Net interest income (deficiency) after                               |   |                               |     |   |   |   |     |   |   |   |   |   |
| provision for loan losses                                            |   |                               | (56,759  | )      |   |   | (68,561  | )      |   |   | 43,033 |   |
| Noninterest income:                                                  |   |                               |     |   |   |   |     |   |   |   |   |   |
|   Service charges on deposit accounts                      |   |                               | 3,848    |   |   |   | 4,694    |   |   |   | 4,707 |   |
|   Trust and wealth-management revenue                      |   |                               | 4,200    |   |   |   | 4,957    |   |   |   | 6,182 |   |
|   Fees from origination of non-portfolio residential       |   |                               |     |   |   |   |     |   |   |   |   |   |
|      mortgage loans                         |   |                               | 1,921    |   |   |   | 2,846    |   |   |   | 2,775 |   |
|   Gain on sales of government-guaranteed loans             |   |                               | 1,479    |   |   |   | 1,211    |   |   |   | 1,397 |   |
|   Gain on exchange of promissory notes for common          |   |                               |     |   |   |   |     |   |   |   |   |   |
|      stock—Note I                     |   |                               | 1,255    |   |   |   | --       |   |   |   | -- |   |
|   Realized gains (losses) on sale of investment securities |   |                               |     |   |   |   |     |   |   |   |   |   |
|      available for sale                     |   |                               | (351     | )      |   |   | 7        |   |   |   | 50 |   |
|   Other                                                    |   |                               | 12,095   |   |   |   | 8,736    |   |   |   | 7,171 |   |
| Total noninterest income                                             |   |                               | 24,447   |   |   |   | 22,451   |   |   |   | 22,282 |   |
| Noninterest expense:                                                 |   |                               |     |   |   |   |     |   |   |   |   |   |
|   Salaries and employee benefits                           |   |                               | 69,920   |   |   |   | 84,729   |   |   |   | 93,995 |   |
|   Occupancy                                                |   |                               | 15,403   |   |   |   | 15,422   |   |   |   | 14,718 |   |
|   Equipment rent, depreciation and maintenance             |   |                               | 9,957    |   |   |   | 17,713   |   |   |   | 10,581 |   |
|   Costs associated with foreclosed properties and other    |   |                               |     |   |   |   |     |   |   |   |   |   |
|      real estate owned                      |   |                               | 40,400   |   |   |   | 44,965   |   |   |   | 6,709 |   |
|   FDIC insurance premiums and other regulatory fees        |   |                               | 15,732   |   |   |   | 12,973   |   |   |   | 3,211 |   |
|   Goodwill impairment—Note G                         |   |                               | 64,505   |   |   |   | 3,431    |   |   |   | -- |   |
|   Other                                                    |   |                               | 25,894   |   |   |   | 24,727   |   |   |   | 27,186 |   |
| Total noninterest expense                                            |   |                               | 241,811  |   |   |   | 203,960  |   |   |   | 156,400 |   |
| Loss before income taxes (benefit)                                   |   |                               | (274,123 | )      |   |   | (250,070 | )      |   |   | (91,085 | ) |
| Income taxes (benefit)—Note N                                  |   |                               | (7,310   | )      |   |   | 13,248   |   |   |   | (33,566 | ) |
| Loss from continuing operations                                      |   |                               | (266,813 | )      |   |   | (263,318 | )      |   |   | (57,519 | ) |
| Discontinued operations—Note L:                                |   |                               |     |   |   |   |     |   |   |   |   |   |
|   Income from operations of bank subsidiaries sold         |   |                               | 6,035    |   |   |   | 2,761    |   |   |   | 8,486 |   |
|   Gain on sale of bank subsidiaries                        |   |                               | 15,784   |   |   |   | 1,187    |   |   |   | -- |   |
|   Less income tax expense—Note N                     |   |                               | 9,370    |   |   |   | 5,170    |   |   |   | 3,418 |   |
| Income (loss) from discontinued operations                           |   |                               | 12,449   |   |   |   | (1,222   | )      |   |   | 5,068 |   |
| NET LOSS                                                             |   |                               | (254,364 | )      |   |   | (264,540 | )      |   |   | (52,451 | ) |
| Net losses attributable to noncontrolling interests in               |   |                               |     |   |   |   |     |   |   |   |   |   |
|     consolidated subsidiaries                    |   |                               | 29,149   |   |   |   | 69,371   |   |   |   | 23,844 |   |
|                                                                 |   |                               |     |   |   |   |     |   |   |   |   |   |
| NET LOSS ATTRIBUTABLE TO CAPITOL                                     |   |                               |     |   |   |   |     |   |   |   |   |   |
| BANCORP LIMITED                                                      |   | $                                  | (225,215 | )      |   | $      | (195,169 | )      |   | $ | (28,607 | ) |
|                                                                 |   |                               |     |   |   |   |     |   |   |   |   |   |
| NET LOSS PER SHARE ATTRIBUTABLE                                      |   |                               |     |   |   |   |     |   |   |   |   |   |
| TO CAPITOL BANCORP LIMITED—Note O:                             |   | $                                  | (11.16   | )      |   | $      | (11.28   | )      |   | $ | (1.67 | ) |
|                                                                 |   |                               |     |   |   |   |     |   |   |   |   |   |
| See notes to consolidated financial statements.                      |   |                               |     |   |   |   |     |   |   |   |   |   |

----

----

----

| Consolidated Statements of Cash Flows                                                                                                            |   |                     |     |   |   |   |       |   |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------|----------|--------|--------|--------|------------|--------|--------|
|                                                                                                                                             |   |                     |     |   |   |   |       |   |   |
|                                                                                                                                             |   | -Year Ended December 31- |     |
|                                                                                                                                             |   | 2010                     |     |   | 2009   |   |       | 2008   |   |
|                                                                                                                                             |   | (in $1,000s)             |     |
|                                                                                                                                             |   |                     |     |   |   |   |       |   |   |
| OPERATING ACTIVITIES                                                                                                                             |   |                     |     |   |   |   |       |   |   |
|   Net loss                                                                                                                             |   | $                        | (254,364 | )      |   | $      | (264,540   | )      |   | $ | (52,451 | ) |
|   Adjustments to reconcile net loss to net cash provided                                                                               |   |                     |     |   |   |   |       |   |   |   |   |   |
|     by operating activities (including discontinued operations):                                                             |   |                     |     |   |   |   |       |   |   |   |   |   |
|       Provision for loan losses                                                                                    |   |                     | 164,352  |   |   |   | 190,680    |   |   |   | 82,492 |   |
|       Depreciation of premises and equipment                                                                       |   |                     | 7,933    |   |   |   | 10,084     |   |   |   | 10,547 |   |
|       Amortization and write-down of intangibles                                                                   |   |                     | 219      |   |   |   | 838        |   |   |   | 510 |   |
|       Goodwill impairment                                                                                          |   |                     | 64,505   |   |   |   | 3,431      |   |   |   | -- |   |
|       Net amortization (accretion) of investment security premiums (discounts)                                     |   |                     | 298      |   |   |   | (33        | )      |   |   | (32 | ) |
|       Loss on sales of premises and equipment                                                                      |   |                     | 393      |   |   |   | 254        |   |   |   | 165 |   |
|       Gain on sales of government-guaranteed loans                                                                 |   |                     | (2,504   | )      |   |   | (2,811     | )      |   |   | (2,060 | ) |
|       Gain on sales of bank subsidiaries                                                                           |   |                     | (15,784  | )      |   |   | (1,187     | )      |   |   | -- |   |
|       Gain on exchange of promissory notes for common stock                                                        |   |                     | (1,255   | )      |   |   | --         |   |   |   | -- |   |
|       Realized loss (gain) on sales of investment securities available for sale                                    |   |                     | 351      |   |   |   | (7         | )      |   |   | (50 | ) |
|       Loss (gain) on sales of other real estate owned                                                              |   |                     | (125     | )      |   |   | 4,400      |   |   |   | 1,191 |   |
|       Write-down of other real estate owned                                                                        |   |                     | 30,352   |   |   |   | 32,315     |   |   |   | 10,679 |   |
|       Amortization of issuance costs of subordinated debentures                                                    |   |                     | 145      |   |   |   | 148        |   |   |   | 117 |   |
|       Share-based compensation expense (benefit)                                                                   |   |                     | (389     | )      |   |   | 1,350      |   |   |   | 2,227 |   |
|       Deferred income tax expense (credit)                                                                         |   |                     | (2,123   | )      |   |   | (43,354    | )      |   |   | (27,577 | ) |
|       Valuation allowance for deferred income tax assets                                                           |   |                     | --       |   |   |   | 104,498    |   |   |   | -- |   |
|   Originations and purchases of loans held for sale                                                                                    |   |                     | (116,829 | )      |   |   | (311,179   | )      |   |   | (206,544 | ) |
|   Proceeds from sales of loans held for sale                                                                                           |   |                     | 119,924  |   |   |   | 305,080    |   |   |   | 212,489 |   |
|   Decrease (increase) in accrued interest income and other assets                                                                      |   |                     | 55,742   |   |   |   | (30,722    | )      |   |   | (16,809 | ) |
|   Increase (decrease) in accrued interest expense on deposits and other liabilities                                                    |   |                     | 9,337    |   |   |   | 15,363     |   |   |   | (5,223 | ) |
|                                                                                                                                             |   |                     |     |   |   |   |       |   |   |   |   |   |
|                 NET CASH PROVIDED BY OPERATING ACTIVITIES        |   |                     | 60,178   |   |   |   | 14,608     |   |   |   | 9,671 |   |
|                                                                                                                                             |   |                     |     |   |   |   |       |   |   |   |   |   |
| INVESTING ACTIVITIES                                                                                                                             |   |                     |     |   |   |   |       |   |   |   |   |   |
|   Cash equivalents of acquired bank affiliate                                                                                          |   |                     | 18,949   |   |   |   | --         |   |   |   | -- |   |
|   Proceeds from sales of investment securities available for sale                                                                      |   |                     | 25,964   |   |   |   | 798        |   |   |   | 890 |   |
|   Proceeds from calls, prepayments and maturities of investment                                                                        |   |                     |     |   |   |   |       |   |   |   |   |   |
|      securities                                                                                                         |   |                     | 22,175   |   |   |   | 15,596     |   |   |   | 11,078 |   |
|   Purchases of investment securities                                                                                                   |   |                     | (34,678  | )      |   |   | (56,225    | )      |   |   | (15,364 | ) |
|   Purchase of Federal Home Loan Bank stock                                                                                             |   |                     | (1,527   | )      |   |   | (2,294     | )      |   |   | (15,569 | ) |
|   Redemption of Federal Home Loan Bank stock by issuer                                                                                 |   |                     | 2,563    |   |   |   | 1,340      |   |   |   | 9,314 |   |
|   Net decrease (increase) in portfolio loans                                                                                           |   |                     | 208,376  |   |   |   | 155,438    |   |   |   | (562,032 | ) |
|   Proceeds from sales of government-guaranteed loans                                                                                   |   |                     | 27,981   |   |   |   | 39,429     |   |   |   | 23,850 |   |
|   Proceeds from sales of premises and equipment                                                                                        |   |                     | 416      |   |   |   | 2,033      |   |   |   | 1,197 |   |
|   Purchases of premises and equipment                                                                                                  |   |                     | (4,038   | )      |   |   | (5,137     | )      |   |   | (11,127 | ) |
|   Proceeds from sales of bank subsidiaries                                                                                             |   |                     | 76,101   |   |   |   | 9,506      |   |   |   | -- |   |
|   Payments received on other real estate owned                                                                                         |   |                     | 2,192    |   |   |   | 6          |   |   |   | 166 |   |
|   Proceeds from sales of other real estate owned                                                                                       |   |                     | 45,145   |   |   |   | 17,716     |   |   |   | 9,288 |   |
|                                                                                                                                             |   |                     |     |   |   |   |       |   |   |   |   |   |
|                 NET CASH PROVIDED (USED) BY INVESTING ACTIVITIES |   |                     | 389,619  |   |   |   | 178,206    |   |   |   | (548,309 | ) |
|                                                                                                                                             |   |                     |     |   |   |   |       |   |   |   |   |   |
| FINANCING ACTIVITIES                                                                                                                             |   |                     |     |   |   |   |       |   |   |   |   |   |
|   Net increase (decrease) in demand deposits, NOW accounts and                                                                         |   |                     |     |   |   |   |       |   |   |   |   |   |
|      savings accounts                                                                                                   |   |                     | 333,177  |   |   |   | 157,850    |   |   |   | (91,672 | ) |
|   Net increase (decrease) in certificates of deposit                                                                                   |   |                     | (718,579 | )      |   |   | 12,300     |   |   |   | 744,539 |   |
|   Net borrowings from (payments on) debt obligations                                                                                   |   |                     | (1,372   | )      |   |   | 1,484      |   |   |   | (4,603 | ) |
|   Proceeds from Federal Home Loan Bank borrowings                                                                                      |   |                     | 613,230  |   |   |   | 3,146,430  |   |   |   | 1,838,858 |   |
|   Payments on Federal Home Loan Bank borrowings                                                                                        |   |                     | (728,417 | )      |   |   | (3,278,820 | )      |   |   | (1,707,714 | ) |
|   Net proceeds from issuance of subordinated debentures                                                                                |   |                     | --       |   |   |   | --         |   |   |   | 11,046 |   |
|   Resources provided by noncontrolling interests                                                                                       |   |                     | --       |   |   |   | 3,794      |   |   |   | 26,866 |   |
|   Net proceeds from issuance of common stock                                                                                           |   |                     | 6,870    |   |   |   | --         |   |   |   | 1,950 |   |
|   Tax effect of share-based payments                                                                                                   |   |                     | (293     | )      |   |   | (169       | )      |   |   | 20 |   |
|   Cash dividends paid                                                                                                                  |   |                     | --       |   |   |   | (864       | )      |   |   | (8,658 | ) |
|                                                                                                                                             |   |                     |     |   |   |   |       |   |   |   |   |   |
|                 NET CASH PROVIDED (USED) BY FINANCING ACTIVITIES |   |                     | (495,384 | )      |   |   | 42,005     |   |   |   | 810,632 |   |
|                                                                                                                                             |   |                     |     |   |   |   |       |   |   |   |   |   |
|                 INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS |   |                     | (45,587  | )      |   |   | 234,819    |   |   |   | 271,994 |   |
|                                                                                                                                             |   |                     |     |   |   |   |       |   |   |   |   |   |
| Change in cash and cash equivalents of discontinued operations                                                                                   |   |                     | (59,054  | )      |   |   | (42,980    | )      |   |   | (146,386 | ) |
| Cash and cash equivalents at beginning of year                                                                                                   |   |                     | 669,819  |   |   |   | 477,980    |   |   |   | 352,372 |   |
|                                                                                                                                             |   |                     |     |   |   |   |       |   |   |   |   |   |
|                 CASH AND CASH EQUIVALENTS AT END OF YEAR         |   | $                        | 565,178  |   |   | $      | 669,819    |   |   | $ | 477,980 |   |
|                                                                                                                                             |   |                     |     |   |   |   |       |   |   |   |   |   |
| Supplemental disclosures:                                                                                                                        |   |                     |     |   |   |   |       |   |   |   |   |   |
|   Cash paid during the year for interest                                                                                               |   | $                        | 74,288   |   |   | $      | 114,693    |   |   | $ | 138,506 |   |
|   Transfers of loans to other real estate owned                                                                                        |   |                     | 73,156   |   |   |   | 102,487    |   |   |   | 63,458 |   |
|   Surrender of common stock to facilitate exercise of stock options                                                                    |   |                     |     |   |   |   |       |   |   |   |   |   |
|      and vesting of restricted stock                                                                                    |   |                     | 13       |   |   |   | 23         |   |   |   | 2,376 |   |
|                                                                                                                                             |   |                     |     |   |   |   |       |   |   |   |   |   |
| See notes to condensed consolidated financial statements.                                                                                        |   |                     |     |   |   |   |       |   |   |   |   |   |

----

|     Affiliate |   |     Location |   |   PercentageOwned byCapitol |   | PercentageOwned bySubsidiariesControlled byCapitol |   |    Year Formedor Acquired |
|-----------------------------------|--------|----------------------------------|--------|---------------------------------------|--------|----------------------------------------------------|--------|------------------------------------------|
|                              |   |                             |   |                                  |   |                                               |   |                                     |
| Arizona Region:                   |   |                             |   |                                  |   |                                               |   |                                     |
| Bank of Tucson                    |   | Tucson, Arizona                  |   | 100%                                  |   |                                               |   | 1996                                     |
| Central Arizona Bank              |   | Casa Grande, Arizona             |   | 86%                                   |   | 10%                                                |   | 1997                                     |
| Sunrise Bank ofAlbuquerque        |   | Albuquerque, New Mexico          |   | 100%                                  |   |                                               |   | 2000                                     |
| Sunrise Bank of Arizona           |   | Phoenix, Arizona                 |   | 99%                                   |   | <1%                                             |   | 1998                                     |
|                              |   |                             |   |                                  |   |                                               |   |                                     |
| California Region:                |   |                             |   |                                  |   |                                               |   |                                     |
| Bank of Feather River             |   | Yuba City, California            |   | (1)                                   |   | 51%                                                |   | 2007                                     |
| Sunrise Bank(5)                   |   | San Diego, California            |   | 80%                                   |   | 5%                                                 |   | 2007                                     |
|                              |   |                             |   |                                  |   |                                               |   |                                     |
| Colorado Region:                  |   |                             |   |                                  |   |                                               |   |                                     |
| Mountain View Bank ofCommerce     |   | Westminster, Colorado            |   | (1)                                   |   | 51%                                                |   | 2008                                     |
|                              |   |                             |   |                                  |   |                                               |   |                                     |
| Great Lakes Region:               |   |                             |   |                                  |   |                                               |   |                                     |
| Bank of Maumee                    |   | Maumee, Ohio                     |   | (1)                                   |   | 51%                                                |   | 2006                                     |
| Bank of Michigan                  |   | Farmington Hills, Michigan       |   | 51%                                   |   |                                               |   | 2005                                     |
| Capitol National Bank             |   | Lansing, Michigan                |   | 100%                                  |   |                                               |   | 1982                                     |
| Evansville Commerce Bank          |   | Evansville, Indiana              |   | 2%                                    |   | 50%                                                |   | 2006                                     |
| Indiana Community Bank(4)         |   | Goshen, Indiana                  |   | 100%                                  |   |                                               |   | 2000                                     |
| Michigan Commerce Bank(3)         |   | Ann Arbor, Michigan              |   | 55%                                   |   | 45%                                                |   | 1990                                     |
|                              |   |                             |   |                                  |   |                                               |   |                                     |
| Nevada Region:                    |   |                             |   |                                  |   |                                               |   |                                     |
| 1st Commerce Bank                 |   | North Las Vegas, Nevada          |   | (1)                                   |   | 51%                                                |   | 2006                                     |
| Bank of Las Vegas(7)              |   | Las Vegas, Nevada                |   | 91%                                   |   | 9%                                                 |   | 2002                                     |
|                              |   |                             |   |                                  |   |                                               |   |                                     |
| Northwest Region:                 |   |                             |   |                                  |   |                                               |   |                                     |
| Bank of the Northwest(6)          |   | Tacoma, Washington               |   | 15%                                   |   | 36%                                                |   | 2007                                     |
| High Desert Bank                  |   | Bend, Oregon                     |   | (1)                                   |   | 55%                                                |   | 2007                                     |
|                              |   |                             |   |                                  |   |                                               |   |                                     |
| Southeast Region:                 |   |                             |   |                                  |   |                                               |   |                                     |
| Community Bank of Rowan           |   | Salisbury, North Carolina        |   | 51%                                   |   |                                               |   | 2006                                     |
| First Carolina State Bank         |   | Rocky Mount, North Carolina      |   | 89%                                   |   |                                               |   | 2004                                     |
| Pisgah Community Bank             |   | Asheville, North Carolina        |   | 79%                                   |   | 15%                                                |   | 2008                                     |
| Sunrise Bank(2)                   |   | Atlanta, Georgia                 |   | 65%                                   |   | 20%                                                |   | 2006                                     |
|                              |   |                             |   |                                  |   |                                               |   |                                     |
| Texas Region:                     |   |                             |   |                                  |   |                                               |   |                                     |
| Bank of Fort Bend                 |   | Sugar Land, Texas                |   | (1)                                   |   | 51%                                                |   | 2007                                     |
| Bank of Las Colinas               |   | Irving, Texas                    |   | (1)                                   |   | 51%                                                |   | 2007                                     |

----

| (1) | Majority-owned by a bank-development subsidiary (second-tier bank holding company) in which Capitol holds a controlling interest.                                                                                                                                                                                                                                                                                                   |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (2) | Effective July 30, 2010, Peoples State Bank and Sunrise Bank of Atlanta merged with and into Bank of Valdosta.  Upon completion of the merger, the surviving bank was renamed Sunrise Bank.  Prior to the merger, each bank was either a majority-owned subsidiary of Capitol or majority-owned by a bank-development subsidiary in which Capitol holds a controlling interest.                                 |
| (3) | Effective March 31, 2010, Bank of Auburn Hills and Paragon Bank & Trust merged with and into Michigan Commerce Bank.  Prior to the merger, Bank of Auburn Hills and Paragon Bank & Trust were wholly-owned subsidiaries of Capitol.                                                                                                                                                                               |
| (4) | Effective March 22, 2010, Elkhart Community Bank merged with and into Goshen Community Bank.  Upon completion of the merger, the surviving bank was renamed Indiana Community Bank.  Prior to the merger, each bank was a wholly-owned subsidiary of Capitol.                                                                                                                                                   |
| (5) | Effective March 5, 2010, Bank of Escondido, Sunrise Bank of San Diego and Sunrise Community Bank merged with and into Point Loma Community Bank.  Upon completion of the merger, the surviving bank was renamed Sunrise Bank.  Prior to the merger, each bank was either a wholly-owned subsidiary of Capitol or majority-owned by a bank-development subsidiary in which Capitol holds a controlling interest. |
| (6) | Effective February 19, 2010, Bank of Bellevue, Bank of Everett and Bank of Tacoma merged with and into Issaquah Community Bank.  Upon completion of the merger, the surviving bank was renamed Bank of the Northwest.  Prior to the merger, each bank was either a majority-owned subsidiary of Capitol or majority-owned by a bank-development subsidiary in which Capitol holds a controlling interest.       |
| (7) | Effective January 29, 2010, Black Mountain Community Bank, Desert Community Bank and Red Rock Community Bank merged with and into Bank of Las Vegas.  Prior to the merger, each bank was a wholly-owned subsidiary of Capitol.                                                                                                                                                                                            |

----

----

----

----

----

----

----

----

----

----

|                              |   | 2010          |   |   | 2009(1)            |   |
|-----------------------------------|--------|---------------|--------|--------|--------------------|--------|
|                              |   | AmortizedCost |   |   | EstimatedFairValue |   |   | AmortizedCost |   |   | EstimatedFairValue |   |
| Available for sale securities:    |   |          |   |   |               |   |   |   |   |   |   |   |
| United States treasury            |   | $             | 503    |   |               | $      | 506 |   |   | $ | 1,500 |   |   | $ | 1,500 |   |
| United States government agencies |   |          | 18,664 |   |               |   | 18,688 |   |   |   | 8,946 |   |   |   | 8,928 |   |
| Mortgage-backed                   |   |          | 4,365  |   |               |   | 4,567 |   |   |   | 24,690 |   |   |   | 24,598 |   |
| Municipalities                    |   |          | 371    |   |               |   | 378 |   |   |   | 727 |   |   |   | 739 |   |
|                              |   |          | 23,903 |   |               |   | 24,139 |   |   |   | 35,863 |   |   |   | 35,765 |   |
| Held for long-term investment:    |   |          |   |   |               |   |   |   |   |   |   |   |   |   |   |   |
| CDBL III                          |   |          | 463    |   |               |   | 463 |   |   |   | 672 |   |   |   | 672 |   |
| Corporate                         |   |          | 2,430  |   |               |   | 2,430 |   |   |   | 5,118 |   |   |   | 5,118 |   |
|                              |   |          | 2,893  |   |               |   | 2,893 |   |   |   | 5,790 |   |   |   | 5,790 |   |
|                              |   |          |   |   |               |   |   |   |   |   |   |   |   |   |   |   |
|                              |   | $             | 26,796 |   |               | $      | 27,032 |   |   | $ | 41,653 |   |   | $ | 41,555 |   |

| (1)   |     Excludes investment securities related to discontinued operations with an amortized cost and estimated    fair value of approximately $5.1 million. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                              |   | 2010   |   |   | 2009(1) |   |
|-----------------------------------|--------|--------|--------|--------|---------|--------|
|                              |   | Gains  |   |   | Losses  |   |   | Gains |   |   | Losses |   |
|                              |   |   |   |   |    |   |   |   |   |   |   |   |
| United States treasury            |   | $      | 3      |   |    |   |   |   |   |   |   |   |   |
| United States government agencies |   |   | 25     |   |    | $      | 1 |   |   | $ | 4 |   |   | $ | 22 |   |
| Mortgage-backed                   |   |   | 202    |   |    |   |   |   |   |   | 122 |   |   |   | 214 |   |
| Municipalities                    |   |   | 7      |   |    |   |   |   |   |   | 12 |   |   |   |   |   |
|                              |   |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   |
|                              |   | $      | 237    |   |    | $      | 1 |   |   | $ | 138 |   |   | $ | 236 |   |

|                              |   | 2010           |   |   | 2009          |   |
|-----------------------------------|--------|----------------|--------|--------|---------------|--------|
|                              |   | UnrealizedLoss |   |   | CarryingValue |   |   | UnrealizedLoss |   |   | CarryingValue |   |
| One year or less:                 |   |           |   |   |          |   |   |   |   |   |   |   |
| United States government agencies |   | $              | 1      |   |          | $      | 4,794 |   |   | $ | 22 |   |   | $ | 8,229 |   |
| Mortgage-backed                   |   |           |   |   |          |   |   |   |   |   | 214 |   |   |   | 19,879 |   |
|                              |   |           |   |   |          |   |   |   |   |   |   |   |   |   |   |   |
|                              |   | $              | 1      |   |          | $      | 4,794 |   |   | $ | 236 |   |   | $ | 28,108 |   |

|                                                               |   | AmortizedCost |        |   | EstimatedFair Value |   |
|--------------------------------------------------------------------|--------|---------------|-------------|--------|---------------------|--------|
|                                                               |   |          |        |   |                |   |
| Due in one year or less                                            |   | $             | 1,599       |   |                | $      | 1,603 |   |
| After one year, through five years                                 |   |          | 13,182      |   |                |   | 13,216 |   |
| After five years, through ten years                                |   |          | 728         |   |                |   | 754 |   |
| After ten years                                                    |   |          | 8,394       |   |                |   | 8,566 |   |
| Securities held for long-term investment,without stated maturities |   |          |  2,893 |   |                |   |  2,893 |   |
|                                                               |   |          |        |   |                |   |   |   |
|                                                               |   | $             | 26,796      |   |                | $      | 27,032 |   |

----

|                                         |   | 2010   |          |   | 2009   |   |
|----------------------------------------------|--------|--------|---------------|--------|--------|--------|
|                                         |   |   |          |   |   |   |
| Loans secured by real estate:                |   |   |          |   |   |   |
| Commercial                                   |   | $      | 1,411,551     |   |   | $      | 1,560,866 |   |
| Residential (including multi-family)         |   |   | 570,252       |   |   |   | 623,368 |   |
| Construction, land development and otherland |   |   |  257,751 |   |   |   |  383,071 |   |
| Total loans secured by real estate           |   |   | 2,239,554     |   |   |   | 2,567,305 |   |
| Commercial and other business-purpose loans  |   |   | 390,183       |   |   |   | 511,102 |   |
| Consumer                                     |   |   | 26,824        |   |   |   | 32,599 |   |
| Other                                        |   |   | 15,151        |   |   |   | 24,292 |   |
| Total portfolio loans                        |   |   | 2,671,712     |   |   |   | 3,135,298 |   |
| Less allowance for loan losses               |   |   | (147,421      | )      |   |   | (129,795 | ) |
|                                         |   |   |          |   |   |   |   |   |
| Net portfolio loans                          |   | $      | 2,524,291     |   |   | $      | 3,005,503 |   |

|                                                |   | 2010   |        |   | 2009   |   |     | 2008   |   |
|-----------------------------------------------------|--------|--------|-------------|--------|--------|--------|----------|--------|--------|
|                                                |   |   |        |   |   |   |     |   |   |
| Balance at beginning of year                        |   | $      | 129,795     |   |   | $      | 77,328   |   |   | $ | 47,457 |   |
| Allowance for loan losses of acquiredbank affiliate |   |   |  1,769 |   |   |   |     |   |   |   |   |   |
| Provision for loan losses charged to operations     |   |   | 156,868     |   |   |   | 175,234  |   |   |   | 75,791 |   |
| Net charge-offs:                                    |   |   |        |   |   |   |     |   |   |   |   |   |
| Loans charged-off (deduction)                       |   |   | (156,051    | )      |   |   | (125,698 | )      |   |   | (48,469 | ) |
| Recoveries                                          |   |   | 15,040      |   |   |   | 2,931    |   |   |   | 2,549 |   |
| Net charge-offs                                     |   |   | (141,011    | )      |   |   | (122,767 | )      |   |   | (45,920 | ) |
|                                                |   |   |        |   |   |   |     |   |   |   |   |   |
| Balance at end of year                              |   | $      | 147,421     |   |   | $      | 129,795  |   |   | $ | 77,328 |   |

----

|                       |   | Secured by Real Estate       |      |   |                               |   |    |                                      |   |   |                                     |   |   |                       |    |
|----------------------------|--------|------------------------------|-----------|--------|------------------------------------|--------|---------|-------------------------------------------|--------|--------|------------------------------------------|--------|--------|----------------------------|---------|
|                       |   |    Commercial |      |   | Residential(includingmulti-family) |   |    | Construction,LandDevelopmentand OtherLand |   |   | Commercialand OtherBusiness-PurposeLoans |   |   |    Consumer |    |   |    Other |   |   |    Total |   |
|                       |   |                         |      |   |                               |   |    |                                      |   |   |                                     |   |   |                       |    |   |   |   |   |   |   |
| Allowance for loan losses: |   |                         |      |   |                               |   |    |                                      |   |   |                                     |   |   |                       |    |   |   |   |   |   |   |
| Individually evaluated     |   |                         |      |   |                               |   |    |                                      |   |   |                                     |   |   |                       |    |   |   |   |   |   |   |
| for impairment             |   | $                            | 10,107    |   |                               | $      | 5,828   |                                      |   | $      | 6,914                                    |   |   | $                          | 6,108   |   |   |   |   |   |   |   |   | $ | 28,957 |   |
| Collectively evaluated     |   |                         |      |   |                               |   |    |                                      |   |   |                                     |   |   |                       |    |   |   |   |   |   |   |   |   |   |   |   |
| for impairment             |   |                         | 44,850    |   |                               |   | 33,898  |                                      |   |   | 15,047                                   |   |   |                       | 23,559  |   |   | $ | 935 |   |   | $ | 175 |   |   |   | 118,464 |   |
|                       |   |                         |      |   |                               |   |    |                                      |   |   |                                     |   |   |                       |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total allowance for        |   |                         |      |   |                               |   |    |                                      |   |   |                                     |   |   |                       |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    loan losses   |   | $                            | 54,957    |   |                               | $      | 39,726  |                                      |   | $      | 21,961                                   |   |   | $                          | 29,667  |   |   | $ | 935 |   |   | $ | 175 |   |   | $ | 147,421 |   |
|                       |   |                         |      |   |                               |   |    |                                      |   |   |                                     |   |   |                       |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Portfolio loans:           |   |                         |      |   |                               |   |    |                                      |   |   |                                     |   |   |                       |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Individually evaluated     |   |                         |      |   |                               |   |    |                                      |   |   |                                     |   |   |                       |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| for impairment             |   | $                            | 180,012   |   |                               | $      | 59,935  |                                      |   | $      | 66,804                                   |   |   | $                          | 26,914  |   |   | $ | 22 |   |   |   |   |   |   | $ | 333,687 |   |
| Collectively evaluated     |   |                         |      |   |                               |   |    |                                      |   |   |                                     |   |   |                       |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| for impairment             |   |                         | 1,231,539 |   |                               |   | 510,317 |                                      |   |   | 190,947                                  |   |   |                       | 363,269 |   |   |   | 26,802 |   |   | $ | 15,151 |   |   |   | 2,338,025 |   |
|                       |   |                         |      |   |                               |   |    |                                      |   |   |                                     |   |   |                       |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total portfolio loans      |   | $                            | 1,411,551 |   |                               | $      | 570,252 |                                      |   | $      | 257,751                                  |   |   | $                          | 390,183 |   |   | $ | 26,824 |   |   | $ | 15,151 |   |   | $ | 2,671,712 |   |

|                                          |   |   Amount |    |   | Percentageof TotalPortfolioLoans |   |
|-----------------------------------------------|--------|--------------------|---------|--------|----------------------------------|--------|
| Loans secured by real estate:                 |   |               |    |   |                             |   |
| Commercial                                    |   | $                  | 51,591  |   |                             |   | 1.65 | % |
| Residential (including multi-family)          |   |               | 25,934  |   |                             |   | 0.83 |   |
| Construction, land development and other land |   |               | 19,825  |   |                             |   | 0.63 |   |
| Total loans secured by real estate            |   |               | 97,350  |   |                             |   | 3.11 |   |
| Commercial and other business-purpose loans   |   |               | 31,132  |   |                             |   | 0.99 |   |
| Consumer                                      |   |               | 1,249   |   |                             |   | 0.04 |   |
| Other                                         |   |               | 64      |   |                             |   |   |   |
|                                          |   |               |    |   |                             |   |   |   |
| Total allowance for loan losses               |   | $                  | 129,795 |   |                             |   | 4.14 | % |

----

|                                                |   | 2010   |    |   | 2009   |   |
|-----------------------------------------------------|--------|--------|---------|--------|--------|--------|
| Nonaccrual loans:                                   |   |   |    |   |   |   |
| Loans secured by real estate:                       |   |   |    |   |   |   |
| Commercial                                          |   | $      | 154,504 |   |   | $      | 126,829 |   |
| Residential (including multi-family)                |   |   | 60,840  |   |   |   | 54,710 |   |
| Construction, land development and other land       |   |   | 62,177  |   |   |   | 77,247 |   |
| Total loans secured by real estate                  |   |   | 277,521 |   |   |   | 258,786 |   |
| Commercial and other business-purpose loans         |   |   | 30,746  |   |   |   | 22,884 |   |
| Consumer                                            |   |   | 211     |   |   |   | 331 |   |
| Total nonaccrual loans                              |   |   | 308,478 |   |   |   | 282,001 |   |
|                                                |   |   |    |   |   |   |   |   |
| Past due (>90 days) loans and accruing interest: |   |   |    |   |   |   |   |   |
| Loans secured by real estate:                       |   |   |    |   |   |   |   |   |
| Commercial                                          |   |   | 2,875   |   |   |   | 6,234 |   |
| Residential (including multi-family)                |   |   | 1,784   |   |   |   | 228 |   |
| Construction, land development and other land       |   |   | 2,380   |   |   |   | 3,713 |   |
| Total loans secured by real estate                  |   |   | 7,039   |   |   |   | 10,175 |   |
| Commercial and other business-purpose loans         |   |   | 2,073   |   |   |   | 1,546 |   |
| Consumer                                            |   |   | 279     |   |   |   | 534 |   |
| Total past due loans                                |   |   | 9,391   |   |   |   | 12,255 |   |
|                                                |   |   |    |   |   |   |   |   |
| Total nonperforming loans                           |   | $      | 317,869 |   |   | $      | 294,256 |   |

----

|                                                |   | December 31 |          |
|-----------------------------------------------------|--------|-------------|---------------|
|                                                |   | 2010        |          |   | 2009 |   |
| Impaired loans:                                     |   |        |          |   |   |   |
| Loans which have an allowance requirement           |   | $           | 171,530       |   |   | $ | 111,902 |   |
| Loans which do not have an allowancerequirement     |   |        |  196,106 |   |   |   |  210,416 |   |
|                                                |   |        |          |   |   |   |   |   |
| Total impaired loans                                |   | $           | 367,636       |   |   | $ | 322,318 |   |
|                                                |   |        |          |   |   |   |   |   |
| Allowance for loan losses related to impaired loans |   | $           | 41,864        |   |   | $ | 19,469 |   |

|                                          |   |  CarryingValue |    |   | UnpaidPrincipalBalance |   |    | RelatedAllowancefor LoanLosses |   |
|-----------------------------------------------|--------|---------------------|---------|--------|------------------------|--------|---------|--------------------------------|--------|
|                                          |   |                |    |   |                   |   |    |                           |   |
| With an allowance recorded:                   |   |                |    |   |                   |   |    |                           |   |
| Loans secured by real estate:                 |   |                |    |   |                   |   |    |                           |   |
| Commercial                                    |   | $                   | 82,391  |   |                   | $      | 131,943 |                           |   | $ | 12,983 |   |
| Residential (including multi-family)          |   |                | 39,743  |   |                   |   | 47,718  |                           |   |   | 10,999 |   |
| Construction, land development and other land |   |                | 27,150  |   |                   |   | 51,117  |                           |   |   | 8,554 |   |
| Total loans secured by real estate            |   |                | 149,284 |   |                   |   | 230,778 |                           |   |   | 32,536 |   |
| Commercial and other business-purpose loans   |   |                | 22,012  |   |                   |   | 35,393  |                           |   |   | 9,189 |   |
| Consumer                                      |   |                | 234     |   |                   |   | 260     |                           |   |   | 139 |   |
|                                          |   |                | 171,530 |   |                   |   | 266,431 |                           |   |   | 41,864 |   |
| With no related allowance recorded:           |   |                |    |   |                   |   |    |                           |   |   |   |   |
| Loans secured by real estate:                 |   |                |    |   |                   |   |    |                           |   |   |   |   |
| Commercial                                    |   |                | 107,815 |   |                   |   | 173,302 |                           |   |   |   |   |
| Residential (including multi-family)          |   |                | 31,406  |   |                   |   | 53,847  |                           |   |   |   |   |
| Construction, land development and other land |   |                | 42,691  |   |                   |   | 69,250  |                           |   |   |   |   |
| Total loans secured by real estate            |   |                | 181,912 |   |                   |   | 296,399 |                           |   |   |   |   |
| Commercial and other business-purpose loans   |   |                | 14,176  |   |                   |   | 23,209  |                           |   |   |   |   |
| Consumer                                      |   |                | 18      |   |                   |   | 42      |                           |   |   |   |   |
|                                          |   |                | 196,106 |   |                   |   | 319,650 |                           |   |   |   |   |
|                                          |   |                |    |   |                   |   |    |                           |   |   |   |   |
| Total                                         |   | $                   | 367,636 |   |                   | $      | 586,081 |                           |   | $ | 41,864 |   |

----

|                                     |   | Past Due Loans               |         |   | Total      |   |        |           |   |   |           |   |
|------------------------------------------|--------|------------------------------|--------------|--------|------------|--------|-------------|----------------|--------|--------|----------------|--------|
|                                     |   | (based on payment due dates) |         |   | Amount of  |   |        |           |   |   |           |   |
|                                     |   |                         |         |   |       |   |        | Loans on       |   |   | Loans More     |   |   | Loans Either |   |   |   |   |
|                                     |   | More Than                    |         |   |       |   |        | Nonaccrual     |   |   | Than 29 Days   |   |   | Current or |   |   |   |   |
|                                     |   | 29 Days,                     |         |   | More Than  |   |        | Status         |   |   | Past Due or on |   |   | Less Than |   |   | Total |   |
|                                     |   | and Less Than                |         |   | 89 Days    |   |        | (Generally, 90 |   |   | Nonaccrual     |   |   | 30 Days |   |   | Portfolio |   |
|                                     |   | 90 Days                      |         |   | (Accruing) |   |        | Days or More)  |   |   | Status         |   |   | Past Due |   |   | Loans |   |
|                                     |   |                         |         |   |       |   |        |           |   |   |           |   |   |   |   |   |   |   |
| Loans secured by real estate:            |   |                         |         |   |       |   |        |           |   |   |           |   |   |   |   |   |   |   |
| Commercial                               |   | $                            | 30,380       |   |       | $      | 2,875       |           |   | $      | 154,504        |   |   | $ | 187,759 |   |   | $ | 1,223,792 |   |   | $ | 1,411,551 |   |
| Residential (including multi-            |   |                         |         |   |       |   |        |           |   |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |
| family)                                  |   |                         | 12,739       |   |       |   | 1,784       |           |   |   | 60,840         |   |   |   | 75,363 |   |   |   | 494,889 |   |   |   | 570,252 |   |
| Construction, land development           |   |                         |         |   |       |   |        |           |   |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |
| and other land                           |   |                         | 6,467        |   |       |   | 2,380       |           |   |   | 62,177         |   |   |   | 71,024 |   |   |   | 186,727 |   |   |   | 257,751 |   |
|   Total loans secured by realestate |   |                         |  49,586 |   |       |   |  7,039 |           |   |   |  277,521  |   |   |   |  334,146 |   |   |   |  1,905,408 |   |   |   |  2,239,554 |   |
| Commercial and other business-           |   |                         |         |   |       |   |        |           |   |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |
| purpose loans                            |   |                         | 9,698        |   |       |   | 2,073       |           |   |   | 30,746         |   |   |   | 42,517 |   |   |   | 347,666 |   |   |   | 390,183 |   |
| Consumer                                 |   |                         | 560          |   |       |   | 279         |           |   |   | 211            |   |   |   | 1,050 |   |   |   | 25,774 |   |   |   | 26,824 |   |
| Other                                    |   |                         |         |   |       |   |        |           |   |   |           |   |   |   |   |   |   |   | 15,151 |   |   |   | 15,151 |   |
|                                     |   |                         |         |   |       |   |        |           |   |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                                    |   | $                            | 59,844       |   |       | $      | 9,391       |           |   | $      | 308,478        |   |   | $ | 377,713 |   |   | $ | 2,293,999 |   |   | $ | 2,671,712 |   |

----

|                                      |   | Loans       |      |   |                            |   |    |              |   |   |        |   |
|-------------------------------------------|--------|------------------|-----------|--------|---------------------------------|--------|---------|-------------------|--------|--------|-------------|--------|
|                                      |   | Not         |      |   |                            |   |    |              |   |   | Total  |   |
|                                      |   | Adversely   |      |   | Adversely Classified Loans |   |    | Portfolio    |   |
|                                      |   | Classified  |      |   | Watch                      |   |    | Substandard  |   |   | Loans  |   |
|                                      |   |             |      |   |                            |   |    |              |   |   |        |   |
| Loans secured by real estate:             |   |             |      |   |                            |   |    |              |   |   |        |   |
| Commercial                                |   | $                | 1,024,312 |   |                            | $      | 119,569 |              |   | $      | 267,670     |   |   | $ | 1,411,551 |   |
| Residential (including multi-family       |   |             | 422,071   |   |                            |   | 45,966  |              |   |   | 102,215     |   |   |   | 570,252 |   |
| Construction, land development            |   |             |      |   |                            |   |    |              |   |   |        |   |   |   |   |   |
| and other land                            |   |             | 132,119   |   |                            |   | 38,134  |              |   |   | 87,498      |   |   |   | 257,751 |   |
|   Total loans secured by real estate |   |             | 1,578,502 |   |                            |   | 203,669 |              |   |   | 457,383     |   |   |   | 2,239,554 |   |
| Commercial and other business-            |   |             |      |   |                            |   |    |              |   |   |        |   |   |   |   |   |
| purpose loans                             |   |             | 291,284   |   |                            |   | 33,804  |              |   |   | 65,095      |   |   |   | 390,183 |   |
| Consumer                                  |   |             | 25,002    |   |                            |   | 1,028   |              |   |   | 794         |   |   |   | 26,824 |   |
| Other                                     |   |             | 13,583    |   |                            |   | 1,568   |              |   |   |        |   |   |   | 15,151 |   |
|                                      |   |             |      |   |                            |   |    |              |   |   |        |   |   |   |   |   |
|   Total                              |   | $                | 1,908,371 |   |                            | $      | 240,069 |              |   | $      | 523,272     |   |   | $ | 2,671,712 |   |

----

|                              |   | 2010   |    |   | 2009(1) |   |
|-----------------------------------|--------|--------|---------|--------|---------|--------|
|                              |   |   |    |   |    |   |
| Land, buildings and improvements  |   | $      | 22,397  |   |    | $      | 19,239 |   |
| Leasehold improvements            |   |   | 20,459  |   |    |   | 21,273 |   |
| Equipment, furniture and software |   |   | 45,280  |   |    |   | 46,187 |   |
|                              |   |   | 88,136  |   |    |   | 86,699 |   |
| Less accumulated depreciation     |   |   | (49,743 | )      |    |   | (44,480 | ) |
|                              |   |   |    |   |    |   |   |   |
|                              |   | $      | 38,393  |   |    | $      | 42,219 |   |

| (1)   |     Excludes premises and equipment, net of accumulated depreciation,    related to discontinued operations of approximately $6.2 million. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2011                |   | $      | 9,453  |   |   |   |   |   |
|---------------------|--------|--------|--------|--------|--------|--------|--------|--------|
| 2012                |   |   | 8,663  |   |   |   |   |   |
| 2013                |   |   | 7,450  |   |   |   |   |   |
| 2014                |   |   | 6,923  |   |   |   |   |   |
| 2015                |   |   | 5,957  |   |   |   |   |   |
| 2016 and thereafter |   |   | 14,803 |   |   |   |   |   |
|                |   |   |   |   |   |   |   |   |
|                |   | $      | 53,249 |   |   |   |   |   |

----

| ·   | A dramatic decline in Capitol's aggregate market-capitalization, i.e., the computational result of multiplying the number of Capitol's common shares outstanding by the per-share market price of such common stock (estimated fair value). |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Capitol's tangible-equity deficit (total equity, less goodwill, prior to recording any goodwill impairment for 2010). |
|--------------------|-----------------------------------------------------------------------------------------------------------------------|

| ·   | Pricing information from merger and acquisition transactions within the banking industry in the United States of America during 2010, as a multiple of tangible equity, and application of such multiple to Capitol's tangible-equity deficit prior to recording any goodwill impairment for 2010. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2011                |   | $      | 1,211,818 |   |
|---------------------|--------|--------|-----------|--------|
| 2012                |   |   | 327,146   |   |
| 2013                |   |   | 69,038    |   |
| 2014                |   |   | 27,596    |   |
| 2015                |   |   | 30,106    |   |
| 2016 and thereafter |   |   | 458       |   |
|                |   |   |      |   |
|                |   | $      | 1,666,162 |   |

----

|                  |   | 2010   |    |   | 2009(1) |   |
|-----------------------|--------|--------|---------|--------|---------|--------|
|                  |   |   |    |   |    |   |
| FHLB borrowings       |   | $      | 113,809 |   |    | $      | 182,132 |   |
| Promissory notes      |   |   | 8,431   |   |    |   | 14,011 |   |
| Repurchase agreements |   |   | 1,137   |   |    |   | 1,510 |   |
|                  |   |   |    |   |    |   |   |   |
|                  |   | $      | 123,377 |   |    | $      | 197,653 |   |

| (1)   |     Excludes net borrowings related to discontinued operations of    approximately $78.5 million. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------|

| 2011                |   | $      | 89,655   |   |   |   |   |   |
|---------------------|--------|--------|----------|--------|--------|--------|--------|--------|
| 2012                |   |   | 15,150   |   |   |   |   |   |
| 2013                |   |   | 3,675    |   |   |   |   |   |
| 2014                |   |   | 1,466    |   |   |   |   |   |
| 2015           |   |   |  -- |   |   |   |   |   |
| 2016 and thereafter |   |   | 13,431   |   |   |   |   |   |
|                |   |   |     |   |   |   |   |   |
|                |   | $      | 123,377  |   |   |   |   |   |

----

|                         |                       |   |      |   | Aggregate   |    |   |                     |   |    |   |   |
|------------------------------|----------------------------|--------|-----------|--------|-------------|---------|--------|--------------------------|--------|---------|--------|--------|
|                         | Current                    |   | Scheduled |   | Liquidation |    |   | Net Carrying Amount |   |
|                         | Interest Rate              |   | Maturity  |   | Amount      |    |   | 2010                     |   |    | 2009   |   |
|                         |                       |   |      |   |        |    |   |                     |   |    |   |   |
| Capitol Trust I              |   8.50% fixed    |   | 2027      |   | $           | 25,300  |   |                     | $      | 24,687  |   |   | $ | 24,651 |   |
| Capitol Trust II             | 10.25% fixed               |   | 2031      |   |        | 10,000  |   |                     |   | 9,793   |   |   |   | 9,783 |   |
| Capitol Statutory Trust III  |   3.87% variable |   | 2031      |   |        | 15,000  |   |                     |   | 14,691  |   |   |   | 14,676 |   |
| Capitol Trust IV             |   3.94% variable |   | 2032      |   |        | 3,000   |   |                     |   | 2,928   |   |   |   | 2,924 |   |
| Capitol Trust VI             |   3.59% variable |   | 2033      |   |        | 10,000  |   |                     |   | 9,777   |   |   |   | 9,768 |   |
| Capitol Trust VII            |   7.78% fixed    |   | 2033      |   |        | 10,000  |   |                     |   | 9,886   |   |   |   | 9,881 |   |
| Capitol Statutory Trust VIII |   3.25% variable |   | 2033      |   |        | 20,000  |   |                     |   | 19,702  |   |   |   | 19,689 |   |
| Capitol Trust IX             |   7.69% fixed    |   | 2034      |   |        | 10,000  |   |                     |   | 9,950   |   |   |   | 9,947 |   |
| Capitol Trust X              |   6.55% fixed    |   | 2037      |   |        | 33,000  |   |                     |   | 33,000  |   |   |   | 33,000 |   |
| Capitol Trust XI             |   1.95% variable |   | 2037      |   |        | 20,000  |   |                     |   | 20,000  |   |   |   | 20,000 |   |
| Capitol Trust XII            | 10.50% fixed               |   | 2038      |   |        | 14,541  |   |                     |   | 13,172  |   |   |   | 13,122 |   |
|                         |                       |   |      |   |        |    |   |                     |   |    |   |   |   |   |   |
|                         |                       |   |      |   | $           | 170,841 |   |                     | $      | 167,586 |   |   | $ | 167,441 |   |

----

----

|                    |   | 2010                   |    |   | 2009                                 |   |   | 2008                   |   |
|-------------------------|--------|------------------------|---------|--------|--------------------------------------|--------|--------|------------------------|--------|
|                    |   |  RestrictedShares |    |   | Weighted-AverageGrant DateFair Value |   |   |  RestrictedShares |   |   | Weighted-AverageGrant DateFair Value |   |   |  RestrictedShares |   |   | Weighted-AverageGrant DateFair Value |   |
|                    |   |                   |    |   |                                 |   |   |                   |   |   |   |   |   |   |   |   |   |   |
| Unvested at January 1   |   |                   | 144,943 |   |                                 | $      | 22.14  |                   |   |   | 136,490 |   |   | $ | 29.55 |   |   |   | 207,422 |   |   | $ | 27.80 |   |
| Granted                 |   |                   | 224,720 |   |                                 |   | 1.38   |                   |   |   | 37,000 |   |   |   | 1.70 |   |   |   | 31,790 |   |   |   | 16.17 |   |
| Vested                  |   |                   | (28,372 | )      |                                 |   | 31.25  |                   |   |   | (19,847 | ) |   |   | 29.53 |   |   |   | (47,000 | ) |   |   | 21.23 |   |
| Forfeited               |   |                   | (31,075 | )      |                                 |   | 29.00  |                   |   |   |  (8,700 | ) |   |   | 34.69 |   |   |   | (55,722 | ) |   |   | 22.41 |   |
|                    |   |                   |    |   |                                 |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Unvested at December 31 |   |                   | 310,216 |   |                                 | $      | 5.58   |                   |   |   | 144,943 |   |   | $ | 22.14 |   |   |   | 136,490 |   |   | $ | 29.55 |   |

|                             |   | NumberOutstanding |           |   | ExercisePrice Range |   |   | WeightedAverageExercise Price |   |
|----------------------------------|--------|-------------------|----------------|--------|---------------------|--------|--------|-------------------------------|--------|
|                             |   |              |           |   |                |   |   |                          |   |   |   |   |   |
| Outstanding at January 1, 2008   |   |              | 2,460,082      |   |                | $      | 13.50  |                          | to     |   | $ | 46.20 |   |   | $ | 27.85 |   |
| Granted in 2008                  |   |              | 52,360         |   |                |   | 20.12  |                          | to     |   |   | 20.12 |   |   |   | 20.12 |   |
| Exercised in 2008                |   |              | (108,935       | )      |                |   | 15.52  |                          | to     |   |   | 20.90 |   |   |   | 17.90 |   |
| Cancelled or expired in 2008     |   |              |  (29,348  | )      |                |   |   |                          |   |   |   |   |   |   |   |   |
| Outstanding at December 31, 2008 |   |              | 2,374,159      |   |                |   | 13.50  |                          | to     |   |   | 46.20 |   |   |   | 28.28 |   |
|                             |   |              |           |   |                |   |   |                          |   |   |   |   |   |   |   |   |   |
| Granted in 2009                  |   |              | 404,022        |   |                |   | 2.01   |                          | to     |   |   | 6.04 |   |   |   | 2.70 |   |
| Cancelled or expired in 2009     |   |              |  (273,698 | )      |                |   | 13.50  |                          | to     |   |   | 34.52 |   |   |   |  24.03 |   |
| Outstanding at December 31, 2009 |   |              | 2,504,483      |   |                |   | 2.01   |                          | to     |   |   | 46.20 |   |   |   | 24.61 |   |
|                             |   |              |           |   |                |   |   |                          |   |   |   |   |   |   |   |   |   |
| Granted in 2010                  |   |              | 206,656        |   |                |   | 1.78   |                          | to     |   |   | 1.96 |   |   |   | 1.95 |   |
| Exercised in 2010                |   |              | (10,000        | )      |                |   | 2.01   |                          | to     |   |   | 2.01 |   |   |   | 2.01 |   |
| Cancelled or expired in 2010     |   |              |  (955,537 | )      |                |   | 2.01   |                          | to     |   |   | 46.20 |   |   |   |  25.57 |   |
| Outstanding at December 31, 2010 |   |              | 1,745,602      |   |                | $      | 1.78   |                          | to     |   | $ | 46.20 |   |   | $ | 21.53 |   |

----

|                    |   | 2010                 |   | 2009    |   | 2008    |
|-------------------------|--------|----------------------|--------|---------|--------|---------|
|                    |   |                 |   |    |   |    |
| Risk-free interest rate |   | 2.01% and2.62%       |   | 2.62%   |   | 3.8%    |
| Stock price volatility  |   | 0.85 and 0.76        |   | 0.76    |   | 0.36    |
| Dividend yield          |   | --                   |   | --      |   | 5.0%    |
| Expected option life    |   | 4.5 years and5 years |   | 5 years |   | 7 years |

|                  |           |   |              |          |      | Weighted Average |
|-----------------------|----------------|--------|-------------------|---------------|-----------|------------------|
| Exercise PriceRange   |           |   | NumberOutstanding |          |      | ExercisePrice    |   | RemainingContractualLife |
|                  |           |   |              |          |      |             |   |   |
| $                     | 1.00 to 14.99  |   |              |          | 556,105   |             |   | $ | 2.49 |   | 4.74 years |
| $                     | 15.00 to 19.99 |   |              |          | 66,883    |             |   |   | 16.40 |   | 0.78 years |
| $                     | 20.00 to 24.99 |   |              |          | 205,953   |             |   |   | 22.02 |   | 3.53 years |
| $                     | 25.00 to 29.99 |   |              |          | 111,699   |             |   |   | 26.15 |   | 0.39 years |
| $                     | 30.00 to 34.99 |   |              |          | 464,966   |             |   |   | 31.76 |   | 1.15 years |
| $  35.00 or more |           |   |              |  339,996 |      |             |   |  37.91 |   | 2.03 years |
|                  |           |   |              |          |      |             |   |   |   |   |   |
|                  |           |   |              |          | 1,745,602 |             |   | $  | 21.53 |   |   |

----

|                               |               |   | Sale     |   |   |        |   |
|------------------------------------|--------------------|--------|----------|--------|--------|-------------|--------|
|                               | Date Sold          |   | Proceeds |   |   | Gain (Loss) |   |
| Bank of Belleville(1)              | April 27, 2010     |   | $        | 5,090  |   |        | $      | 1,331 |   |
| Napa Community Bank(1)(3)          | April 30, 2010     |   |     | 21,574 |   |        |   | 7,372 |   |
| Ohio Commerce Bank(2)              | June 30, 2010      |   |     | 6,520  |   |        |   | 1,478 |   |
| Community Bank of Lincoln(2)       | July 30, 2010      |   |     | 3,750  |   |        |   | 1,268 |   |
| USNY Bank(2)                       | August 23, 2010    |   |     | 2,700  |   |        |   | (271 | ) |
| Adams Dairy Bank(2)                | August 31, 2010    |   |     | 4,335  |   |        |   | 559 |   |
| Bank of San Francisco(1)           | September 28, 2010 |   |     | 6,604  |   |        |   | 1,740 |   |
| Fort Collins Commerce Bank(1)      | October 29, 2010   |   |     | 5,822  |   |        |   | 597 |   |
| Larimer Bank of Commerce(1)        | October 29, 2010   |   |     | 4,332  |   |        |   | (163 | ) |
| Loveland Bank of Commerce(1)       | October 29, 2010   |   |     | 4,346  |   |        |   | 943 |   |
| Southern Arizona Community Bank(1) | December 10, 2010  |   |     | 11,028 |   |        |   | 930 |   |
|                               |               |   |     |   |   |        |   |   |   |
|                               |               |   | $        | 76,101 |   |        | $      | 15,784 |   |

|   | (1) | Previously a majority-owned subsidiary of Capitol. |
|--------|-----|----------------------------------------------------|

|   | (2) | Previously a majority-owned subsidiary of a bank-development subsidiary controlled by Capitol. |
|--------|-----|------------------------------------------------------------------------------------------------|

|   | (3) | Under the terms of the sale transaction, Capitol could receive additional proceeds of up to $5.3 million in the future, subject to   Napa Community Bank's future financial performance. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                |   | 2010   |   |   | 2009   |   |   | 2008   |   |
|-------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
|                                |   |   |   |   |   |   |   |   |   |
| Interest income                     |   | $      | 41,594 |   |   | $      | 69,114 |   |   | $ | 69,857 |   |
| Interest expense                    |   |   | 8,566  |   |   |   | 19,405 |   |   |   | 24,832 |   |
| Net interest income                 |   |   | 33,028 |   |   |   | 49,709 |   |   |   | 45,025 |   |
| Provision for loan losses           |   |   | 7,484  |   |   |   | 15,446 |   |   |   | 6,701 |   |
| Net interest income after provision |   |   |   |   |   |   |   |   |   |   |   |   |
| for loan losses                     |   |   | 25,544 |   |   |   | 34,263 |   |   |   | 38,324 |   |
| Noninterest income, excluding gain  |   |   |   |   |   |   |   |   |   |   |   |   |
| on sale of bank subsidiaries        |   |   | 3,173  |   |   |   | 5,135  |   |   |   | 4,150 |   |
| Gain on sale of bank subsidiaries   |   |   | 15,784 |   |   |   | 1,187  |   |   |   |   |   |
| Noninterest expense                 |   |   | 22,682 |   |   |   | 36,637 |   |   |   | 33,988 |   |
| Income before income taxes          |   |   | 21,819 |   |   |   | 3,948  |   |   |   | 8,486 |   |
| Less income tax expense             |   |   | 9,370  |   |   |   | 5,170  |   |   |   | 3,418 |   |
| Net income (loss) from discontinued |   |   |   |   |   |   |   |   |   |   |   |   |
| operations                          |   |   | 12,449 |   |   |   | (1,222 | )      |   |   | 5,068 |   |
| Net loss (income) attributable to   |   |   |   |   |   |   |   |   |   |   |   |   |
| noncontrolling interests            |   |   | (902   | )      |   |   | 4,480  |   |   |   | 1,223 |   |
| Net income from discontinued        |   |   |   |   |   |   |   |   |   |   |   |   |
| operations attributable to Capitol  |   |   |   |   |   |   |   |   |   |   |   |   |
| Bancorp Limited                     |   | $      | 11,547 |   |   | $      | 3,258  |   |   | $ | 6,291 |   |
| Net income from discontinued        |   |   |   |   |   |   |   |   |   |   |   |   |
| operations per common share         |   |   |   |   |   |   |   |   |   |   |   |   |
| attributable to Capitol Bancorp     |   |   |   |   |   |   |   |   |   |   |   |   |
| Limited                             |   | $      | 0.57   |   |   | $      | 0.19   |   |   | $ | 0.37 |   |

----

|                      |   | 2010   |    |   | 2009   |   |         |   | 2010                      |   |   | 2009    |   |
|---------------------------|--------|--------|---------|--------|--------|--------|--------------|--------|---------------------------|--------|--------|---------|--------|
| Assets:                   |   |   |    |   |   |   | Liabilities: |   |                      |   |   |    |   |
| Cash and cash equivalents |   | $      | 56,329  |   |   | $      | 139,102      |   | Noninterest-bearing       |   |   |    |   |   |   |
| Investment securities     |   |   | 4,007   |   |   |   | 5,113        |   | deposits                  |   | $      | 68,777  |   |   | $ | 187,337 |   |
| Federal Home Loan Bank    |   |   |    |   |   |   |         |   | Interest-bearing deposits |   |   | 139,358 |   |   |   | 704,471 |   |
| stock                     |   |   | 746     |   |   |   | 6,047        |   | Total deposits            |   |   | 208,135 |   |   |   | 891,808 |   |
| Loans held for sale       |   |   |    |   |   |   | 5,166        |   | Debt obligations          |   |   |    |   |   |   | 78,506 |   |
| Portfolio loans           |   |   | 159,334 |   |   |   | 911,803      |   | Other liabilities         |   |   | 693     |   |   |   | 2,001 |   |
| Less allowance for loan   |   |   |    |   |   |   |         |   |                      |   |   |    |   |   |   |   |   |
| losses                    |   |   | (2,380  | )      |   |   | (14,869      | )      |                      |   | $      | 208,828 |   |   | $ | 972,315 |   |
| Net portfolio loans       |   |   | 156,954 |   |   |   | 896,934      |   |                      |   |   |    |   |   |   |   |   |
| Premises and equipment    |   |   | 979     |   |   |   | 6,167        |   |                      |   |   |    |   |   |   |   |   |
| Other real estate owned   |   |   | 1,447   |   |   |   | 4,807        |   |                      |   |   |    |   |   |   |   |   |
| Other assets              |   |   | 2,420   |   |   |   | 19,767       |   |                      |   |   |    |   |   |   |   |   |
|                      |   |   |    |   |   |   |         |   |                      |   |   |    |   |   |   |   |   |
|                      |   | $      | 222,882 |   |   | $      | 1,083,103    |   |                      |   |   |    |   |   |   |   |   |

----

|                                                                                                                                                                        |   | 2010   |   |   | 2009   |   |                 | 2008   |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|----------------------|--------|--------|
| Federal:                                                                                                                                                                    |   |   |   |   |   |   |                 |   |   |
| Current expense (benefit)                                                                                                                                                   |   | $      | 3,638  |   |   | $      | (43,594              | )      |   | $ | (823 | ) |
| Deferred (benefit)                                                                                                                                                          |   |   | (1,403 | )      |   |   | (39,173              | )      |   |   | (26,029 | ) |
|                                                                                                                                                                        |   |   | 2,235  |   |   |   | (82,767              | )      |   |   | (26,852 | ) |
| State:                                                                                                                                                                      |   |   |   |   |   |   |                 |   |   |   |   |   |
| Current expense (benefit)                                                                                                                                                   |   |   | 545    |   |   |   | 868                  |   |   |   | (1,748 | ) |
| Deferred (benefit)                                                                                                                                                          |   |   | (720   | )      |   |   | (4,181               | )      |   |   | (1,548 | ) |
|                                                                                                                                                                        |   |   | (175   | )      |   |   | (3,313               | )      |   |   | (3,296 | ) |
|                                                                                                                                                                        |   |   | 2,060  |   |   |   | (86,080              | )      |   |   | (30,148 | ) |
| Establishment of valuation allowance for     deferred tax assets not meeting the more-     likely-than-not criteria for realization |   |   |   |   |   |   |    104,498 |   |   |   |   |   |
|                                                                                                                                                                        |   |   |   |   |   |   |                 |   |   |   |   |   |
| Income tax expense (benefit)                                                                                                                                                |   | $      | 2,060  |   |   | $      | 18,418               |   |   | $ | (30,148 | ) |

|                                                                                           |   | 2010   |         |   | 2009   |   |         | 2008   |   |
|------------------------------------------------------------------------------------------------|--------|--------|--------------|--------|--------|--------|--------------|--------|--------|
|                                                                                           |   |   |         |   |   |   |         |   |   |
| Federal income tax expense (benefit)     computed at statutory rate of 35% |   | $      | (88,306      | )      |   | $      | (86,143      | )      |   | $ | (28,910 | ) |
| State income taxes (benefit)                                                                   |   |   | (10,297      | )      |   |   | (3,313       | )      |   |   | (3,296 | ) |
| Valuation allowance on deferred state     income tax assets                |   |   | 10,122       |   |   |   | 8,622        |   |   |   |   |   |
| Federal tax effect of:                                                                         |   |   |         |   |   |   |         |   |   |   |   |   |
| Amortization of intangibles                                                                    |   |   |         |   |   |   | 1,213        |   |   |   | 19 |   |
| State income taxes                                                                             |   |   | 3,604        |   |   |   | 1,160        |   |   |   | 1,154 |   |
| Valuation allowance on state taxes                                                             |   |   | (3,543       | )      |   |   | (3,018       | )      |   |   |   |   |
| Valuation allowance recorded for  deferred federal income tax assets                      |   |   |  78,162 |   |   |   |  95,876 |   |   |   |   |   |
| Other                                                                                          |   |   | 12,318       |   |   |   | 4,021        |   |   |   | 885 |   |
|                                                                                           |   |   |         |   |   |   |         |   |   |   |   |   |
| Total income tax expense (benefit)                                                             |   | $      | 2,060        |   |   | $      | 18,418       |   |   | $ | (30,148 | ) |

----

|                                                              |   | 2010   |        |   | 2009   |   |
|-------------------------------------------------------------------|--------|--------|-------------|--------|--------|--------|
|                                                              |   |   |        |   |   |   |
| Allowance for loan losses                                         |   | $      | 57,556      |   |   | $      | 54,725 |   |
| Net operating losses of subsidiaries                              |   |   | 97,739      |   |   |   | 36,018 |   |
| Deferred compensation                                             |   |   | 2,519       |   |   |   | 3,363 |   |
| Depreciation                                                      |   |   | (2,827      | )      |   |   | (3,549 | ) |
| Start-up costs of de novo banks                                   |   |   | 2,597       |   |   |   | 4,450 |   |
| Fair value adjustment for investmentsecurities available for sale |   |   | (81         | )      |   |   |  32 |   |
| Other real estate owned                                           |   |   | 14,159      |   |   |   | 11,112 |   |
| Net deferred costs of loan originations                           |   |   | (1,740      | )      |   |   | (5,978 | ) |
| Unaccrued interest income onnonperforming loans                   |   |   |  7,466 |   |   |   |  6,879 |   |
| Other, net                                                        |   |   | 14,729      |   |   |   | 2,828 |   |
|                                                              |   |   | 192,117     |   |   |   | 109,880 |   |
| Less valuation allowance                                          |   |   | (190,308    | )      |   |   | (104,498 | ) |
|                                                              |   |   |        |   |   |   |   |   |
|                                                              |   | $      | 1,809       |   |   | $      | 5,382 |   |

|      |   | Federal |    |   | State  |   |
|-----------|--------|---------|---------|--------|--------|--------|
| 2013-2015 |   |    |    |   | $      | 69,548 |   |
| 2016-2018 |   |    |    |   |   | 3,660  |   |
| 2019-2021 |   |    |    |   |   | 29,054 |   |
| 2022-2024 |   | $       | 40      |   |   |   | 7,953 |   |
| 2025-2027 |   |    | 28,249  |   |   |   | 21,913 |   |
| 2028-2029 |   |    | 215,020 |   |   |   | 22,775 |   |
|      |   |    |    |   |   |   |   |   |
|      |   | $       | 243,309 |   |   | $      | 154,903 |   |

----

|                                                                                                                                                    |   | 2010   |                |   | 2009   |   |                | 2008   |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|---------------------|--------|--------|--------|---------------------|--------|--------|
|                                                                                                                                                    |   |   |                |   |   |   |                |   |   |
| Numerator—net loss attributable to Capitol Bancorp Limited                                                                                        |   | $      | (225,215            | )      |   | $      | (195,169            | )      |   | $ | (28,607 | ) |
|                                                                                                                                                    |   |   |                |   |   |   |                |   |   |   |   |   |
| Denominator for basic net loss per share—weighted averagenumber of common shares outstanding, excluding unvestedrestricted shares of common stock |   |   |    20,186 |   |   |   |    17,302 |   |   |   |    17,147 |   |
|                                                                                                                                                    |   |   |                |   |   |   |                |   |   |   |   |   |
| Denominator for diluted net loss per share—weighted averagenumber of shares and potential dilution                                                |   |   |  20,186        |   |   |   |  17,302        |   |   |   |  17,147 |   |
|                                                                                                                                                    |   |   |                |   |   |   |                |   |   |   |   |   |
| Number of antidilutive stock options excluded from dilutednet loss per share computation                                                                |   |   |  1,746         |   |   |   |  2,504         |   |   |   |  2,374 |   |
|                                                                                                                                                    |   |   |                |   |   |   |                |   |   |   |   |   |
| Number of antidilutive unvested restricted shares of commonstock excluded from basic and diluted net loss per sharecomputation                          |   |   |    310    |   |   |   |    145    |   |   |   |    136 |   |
|                                                                                                                                                    |   |   |                |   |   |   |                |   |   |   |   |   |
| Number of antidilutive warrants to purchase commonstock excluded from diluted net loss per share computation                                            |   |   |  1,326         |   |   |   |  76            |   |   |   |   |   |

----

----

|                                      |   | 2010        |   |   | 2009(1)                                   |   |
|-------------------------------------------|--------|-------------|--------|--------|-------------------------------------------|--------|
|                                      |   |  Total |   |   | SignificantOtherObservableInputs(Level 2) |   |   |  Total |   |   | SignificantOtherObservableInputs(Level 2) |   |
|                                      |   |        |   |   |                                      |   |   |   |   |   |   |   |
| Investment securities available for sale: |   |        |   |   |                                      |   |   |   |   |   |   |   |
| United States treasury                    |   | $           | 506    |   |                                      | $      | 506 |   |   | $ | 1,500 |   |   | $ | 1,500 |   |
| United States government agencies         |   |        | 18,688 |   |                                      |   | 18,688 |   |   |   | 8,928 |   |   |   | 8,928 |   |
| Mortgage-backed                           |   |        | 4,567  |   |                                      |   | 4,567 |   |   |   | 24,598 |   |   |   | 24,598 |   |
| Municipalities                            |   |        | 378    |   |                                      |   | 378 |   |   |   | 739 |   |   |   | 739 |   |
|                                      |   |        |   |   |                                      |   |   |   |   |   |   |   |   |   |   |   |
|                                      |   | $           | 24,139 |   |                                      | $      | 24,139 |   |   | $ | 35,765 |   |   | $ | 35,765 |   |

| (1)   |     Excludes investment securities related to discontinued operations of approximately $5.0 million. |
|-----------------|---------------------------------------------------------------------------------------------------------------------|

|                        |   | 2010        |    |   | 2009(2)                                |   |
|-----------------------------|--------|-------------|---------|--------|----------------------------------------|--------|
|                        |   |  Total |    |   | SignificantUnobservableInputs(Level 3) |   |   |  Total |   |   | SignificantUnobservableInputs(Level 3) |   |
|                        |   |        |    |   |                                   |   |   |   |   |   |   |   |
| Impaired loans (1)(3)       |   | $           | 325,212 |   |                                   | $      | 325,212 |   |   | $ | 133,199 |   |   | $ | 133,199 |   |
|                        |   |        |    |   |                                   |   |   |   |   |   |   |   |   |   |   |   |
| Other real estate owned (1) |   | $           | 107,614 |   |                                   | $      | 107,614 |   |   | $ | 107,013 |   |   | $ | 107,013 |   |

| (1)   |     Represents carrying value based on the appraised value of the applicable collateral or other real estate owned or other estimates of fair value    (less estimated cost to sell). |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2)   |     Excludes impaired loans approximating $5.8 million and other real estate owned approximating $4.8 million related to discontinued operations. |
|--------|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (3)   |     In 2010, Capitol classified certain loans which are troubled debt restructurings as impaired loans measured at fair value resulting in a significant    increase in impaired loans measured at fair value.  Amounts for 2009 have not been adjusted except for the exclusion of discontinued operations    noted above. |
|--------|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

|                                             |   | 2010     |          |   | 2009(2)             |   |
|--------------------------------------------------|--------|---------------|---------------|--------|---------------------|--------|
|                                             |   | CarryingValue |          |   | EstimatedFair Value |   |   | CarryingValue |   |   | EstimatedFair Value |   |
| Financial assets:                                |   |          |          |   |                |   |   |   |   |   |   |   |
| Cash and cash equivalents                        |   | $             | 565,178       |   |                | $      | 565,178 |   |   | $ | 669,819 |   |   | $ | 669,819 |   |
| Loans held for sale                              |   |          | 7,041         |   |                |   | 7,041 |   |   |   | 10,966 |   |   |   | 10,966 |   |
| Investment securities:                           |   |          |          |   |                |   |   |   |   |   |   |   |   |   |   |   |
| Available for sale                               |   |          | 24,139        |   |                |   | 24,139 |   |   |   | 35,765 |   |   |   | 35,765 |   |
| Held for long-term investment                    |   |          | 2,893         |   |                |   | 2,893 |   |   |   | 5,790 |   |   |   | 5,790 |   |
|                                             |   |          | 27,032        |   |                |   | 27,032 |   |   |   | 41,555 |   |   |   | 41,555 |   |
| Federal Home Loan Bank and Federal Reserve  |   |          |          |   |                |   |   |   |   |   |   |   |   |   |   |   |
| Bank stock                             |   |          |  18,167  |   |                |   |  18,167 |   |   |   |  18,628 |   |   |   |  18,628 |   |
| Portfolio loans:                                 |   |          |          |   |                |   |   |   |   |   |   |   |   |   |   |   |
| Loans secured by real estate:                    |   |          |          |   |                |   |   |   |   |   |   |   |   |   |   |   |
| Commercial                                       |   |          | 1,411,551     |   |                |   | 1,416,332 |   |   |   | 1,560,866 |   |   |   | 1,483,447 |   |
| Residential (including multi-family)             |   |          | 570,252       |   |                |   | 570,207 |   |   |   | 623,368 |   |   |   | 587,905 |   |
| Construction, land development and otherland     |   |          |  257,751 |   |                |   |  257,875 |   |   |   |  383,071 |   |   |   |  313,341 |   |
|   Total loans secured by real estate        |   |          | 2,239,554     |   |                |   | 2,244,414 |   |   |   | 2,567,305 |   |   |   | 2,384,693 |   |
| Commercial and other business-purpose loans      |   |          | 390,183       |   |                |   | 390,649 |   |   |   | 511,102 |   |   |   | 494,305 |   |
| Consumer                                         |   |          | 26,824        |   |                |   | 27,127 |   |   |   | 32,599 |   |   |   | 32,838 |   |
| Other                                            |   |          | 15,151        |   |                |   | 15,073 |   |   |   | 24,292 |   |   |   | 22,613 |   |
|   Total portfolio loans                     |   |          | 2,671,712     |   |                |   | 2,677,263 |   |   |   | 3,135,298 |   |   |   | 2,934,449 |   |
| Less allowance for loan losses                   |   |          | (147,421      | )      |                |   | (147,421 | ) |   |   | (129,795 | ) |   |   | (129,795 | ) |
|   Net portfolio loans                       |   |          | 2,524,291     |   |                |   | 2,529,842 |   |   |   | 3,005,503 |   |   |   | 2,804,654 |   |
|                                             |   |          |          |   |                |   |   |   |   |   |   |   |   |   |   |   |
| Financial liabilities:                           |   |          |          |   |                |   |   |   |   |   |   |   |   |   |   |   |
| Deposits:                                        |   |          |          |   |                |   |   |   |   |   |   |   |   |   |   |   |
| Noninterest-bearing                              |   |          | 516,873       |   |                |   | 516,873 |   |   |   | 491,763 |   |   |   | 491,763 |   |
| Interest-bearing:                                |   |          |          |   |                |   |   |   |   |   |   |   |   |   |   |   |
| Demand accounts                                  |   |          | 845,649       |   |                |   | 845,649 |   |   |   | 977,563 |   |   |   | 977,563 |   |
| Time certificates of less than $100,000          |   |          | 755,327       |   |                |   | 759,538 |   |   |   | 754,849 |   |   |   | 756,057 |   |
| Time certificates of $100,000 or more            |   |          | 910,835       |   |                |   | 914,596 |   |   |   | 1,294,651 |   |   |   | 1,296,448 |   |
|   Total interest-bearing deposits           |   |          | 2,511,811     |   |                |   | 2,519,783 |   |   |   | 3,027,063 |   |   |   | 3,030,068 |   |
|   Total deposits                            |   |          | 3,028,684     |   |                |   | 3,036,656 |   |   |   | 3,518,826 |   |   |   | 3,521,831 |   |
| Notes payable and short-term borrowings          |   |          | 123,377       |   |                |   | 116,200 |   |   |   | 197,653 |   |   |   | 197,715 |   |
| Subordinated debentures                          |   |          | 167,586       |   |                |   | 170,841 | (1) |   |   | 167,441 |   |   |   | 170,841 | (1) |

| (1) |     Represents liquidation or principal amount outstanding.  The quoted market value of certain trust-preferred securities    (Capitol Trust I and XII) included within subordinated debentures was substantially less than that amount. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) |     Excludes amounts related to discontinued operations. |
|-----|-------------------------------------------------------------------------|

----

----

----

----

----

|                                                                     |          | December 31 |    |
|--------------------------------------------------------------------------|---------------|-------------|---------|
|                                                                     |          | 2010        |    |   |   | 2009 |   |
| Tier 1 capital to average adjusted total assets:                         |          |        |    |   |   |   |   |
| Minimum required amount                                                  |  ≥ | $           | 155,224 |   |   |  ≥ | $ | 210,651 |   |
| Actual amount                                                            |          | $           | (39,980 | ) |   |   | $ | 242,547 |   |
| Ratio                                                                    |          |        | (1.03   | )% |   |   |   | 4.61 | % |
|                                                                     |          |        |    |   |   |   |   |   |   |
| Tier 1 capital to risk-weighted assets:                                  |          |        |    |   |   |   |   |   |   |
| Minimum required amount(1)                                               |  ≥ | $           | 110,909 |   |   |  ≥ | $ | 162,089 |   |
| Actual amount                                                            |          | $           | (39,980 | ) |   |   | $ | 242,547 |   |
| Ratio                                                                    |          |        | (1.44   | )% |   |   |   | 5.99 | % |
|                                                                     |          |        |    |   |   |   |   |   |   |
| Combined Tier 1 and Tier 2 capital to risk-   weighted assets: |          |        |    |   |   |   |   |   |   |
| Minimum required amount(2)                                               |  ≥ | $           | 221,818 |   |   |  ≥ | $ | 324,177 |   |
| Actual amount                                                            |          | $           | (39,980 | ) |   |   | $ | 383,449 |   |
| Ratio                                                                    |          |        | (1.44   | )% |   |   |   | 9.46 | % |

| (1) | The minimum required ratio of Tier 1 capital to risk-weighted assets to be consideredadequately-capitalized is 4%.            |
|-----|-------------------------------------------------------------------------------------------------------------------------------|
| (2) | The minimum required ratio of Tier 1 and Tier 2 capital to risk-weighted assets to beconsidered adequately-capitalized is 8%. |

----

|                                                            |   | -December 31- |        |
|-----------------------------------------------------------------|--------|---------------|-------------|
|                                                            |   | 2010          |        |   | 2009 |   |
|                                                            |   | (in $1,000s)  |        |
| Assets                                                          |   |          |        |   |   |   |
| Cash on deposit, principally with subsidiary banks              |   | $             | 1,370       |   |   | $ | 2,081 |   |
| Money market funds on deposit, principally with subsidiarybanks |   |          |  6,535 |   |   |   |  880 |   |
| Cash and cash equivalents                                       |   |          | 7,905       |   |   |   | 2,961 |   |
| Investment securities                                           |   |          | 719         |   |   |   | 3,151 |   |
| Loans, net                                                      |   |          | 5,004       |   |   |   | 9,931 |   |
| Investments in and advances to subsidiaries                     |   |          | 162,639     |   |   |   | 355,840 |   |
| Investment in and advances to Amera Mortgage Corporation        |   |          | 478         |   |   |   | 432 |   |
| Investment in and advances to CDBL III                          |   |          | 1,340       |   |   |   | 1,495 |   |
| Equipment, software and furniture, net                          |   |          | 1,998       |   |   |   | 7,159 |   |
| Other assets                                                    |   |          | 936         |   |   |   | 19,751 |   |
|                                                            |   |          |        |   |   |   |   |   |
| Total assets                                                    |   | $             | 181,019     |   |   | $ | 400,720 |   |
|                                                            |   |          |        |   |   |   |   |   |
| Liabilities and Stockholders' Equity                            |   |          |        |   |   |   |   |   |
| Liabilities:                                                    |   |          |        |   |   |   |   |   |
| Accounts payable, accrued expenses and other liabilities        |   | $             | 35,270      |   |   | $ | 26,486 |   |
| Debt obligations                                                |   |          | 8,431       |   |   |   | 14,011 |   |
| Subordinated debentures                                         |   |          | 199,172     |   |   |   | 198,888 |   |
| Total liabilities                                               |   |          | 242,873     |   |   |   | 239,385 |   |
| Stockholders' equity (deficit)                                  |   |          | (61,854     | ) |   |   | 161,335 |   |
|                                                            |   |          |        |   |   |   |   |   |
| Total liabilities and stockholders' equity                      |   | $             | 181,019     |   |   | $ | 400,720 |   |

----

| NOTES TO CONSOLIDATED FINANCIAL STATEMENTS |
|--------------------------------------------|

| Capitol Bancorp Limited |
|-------------------------|

|                                                                                                |   | -Year Ended December 31- |     |
|-----------------------------------------------------------------------------------------------------|--------|--------------------------|----------|
|                                                                                                |   | 2010                     |     |   | 2009 |   |   | 2008 |   |
|                                                                                                |   | (in $1,000s)             |     |
| Income:                                                                                             |   |                     |     |   |   |   |   |   |   |
| Intercompany fees                                                                                   |   | $                        | 22,057   |   |   | $ | 35,243 |   |   | $ | 28,847 |   |
| Dividends from subsidiaries                                                                         |   |                     | 5,000    |   |   |   | 964 |   |   |   | 19,634 |   |
| Interest                                                                                            |   |                     | 996      |   |   |   | 1,596 |   |   |   | 169 |   |
| Gain on sales of bank subsidiaries                                                                  |   |                     | 12,749   |   |   |   | 1,187 |   |   |   |   |   |
| Other                                                                                               |   |                     | 551      |   |   |   | 2,034 |   |   |   | 3,318 |   |
| Total income                                                                                        |   |                     | 41,353   |   |   |   | 41,024 |   |   |   | 51,968 |   |
| Expenses:                                                                                           |   |                     |     |   |   |   |   |   |   |   |   |   |
| Interest                                                                                            |   |                     | 15,427   |   |   |   | 15,292 |   |   |   | 14,372 |   |
| Salaries and employee benefits                                                                      |   |                     | 14,771   |   |   |   | 24,032 |   |   |   | 22,415 |   |
| Occupancy                                                                                           |   |                     | 2,264    |   |   |   | 2,297 |   |   |   | 2,509 |   |
| Equipment rent and depreciation                                                                     |   |                     | 3,205    |   |   |   | 6,236 |   |   |   | 4,700 |   |
| Goodwill impairment                                                                                 |   |                     | 38,718   |   |   |   |   |   |   |   |   |   |
| Other                                                                                               |   |                     | 9,236    |   |   |   | 8,995 |   |   |   | 5,332 |   |
| Total expenses                                                                                      |   |                     | 83,621   |   |   |   | 56,852 |   |   |   | 49,328 |   |
| Income (loss) before equity in undistributed netlosses of consolidated subsidiaries and incometaxes |   |                     | (42,268  | ) |   |   | (15,828 | ) |   |   | 2,640 |   |
| Equity in net losses of consolidated subsidiaries                                                   |   |                     | (189,553 | ) |   |   | (176,669 | ) |   |   | (39,320 | ) |
| Loss before income taxes                                                                            |   |                     | (231,821 | ) |   |   | (192,497 | ) |   |   | (36,680 | ) |
| Income taxes (credit)                                                                               |   |                     | (6,606   | ) |   |   | 2,672 |   |   |   | (8,073 | ) |
|                                                                                                |   |                     |     |   |   |   |   |   |   |   |   |   |
| Net loss                                                                                            |   | $                        | (225,215 | ) |   | $ | (195,169 | ) |   | $ | (28,607 | ) |

----

| NOTES TO CONSOLIDATED FINANCIAL STATEMENTS |
|--------------------------------------------|

| Capitol Bancorp Limited |
|-------------------------|

|                                                                                  |   | -Year Ended December 31- |        |
|---------------------------------------------------------------------------------------|--------|--------------------------|-------------|
|                                                                                  |   | 2010                |        |   | 2009  |   |   | 2008  |   |
|                                                                                  |   | (in $1,000s)             |        |
| OPERATING ACTIVITIES                                                                  |   |                     |        |   |   |   |   |   |   |
| Net loss                                                                              |   | $                        | (225,215    | ) |   | $ | (195,169 | ) |   | $ | (28,607 | ) |
| Adjustments to reconcile net loss to net cash provided (used)by operating activities: |   |                     |        |   |   |   |   |   |   |   |   |   |
| Equity in net losses of consolidated subsidiaries                                     |   |                     | 189,553     |   |   |   | 176,669 |   |   |   | 39,320 |   |
| Depreciation and amortization of intangibles                                          |   |                     | 1,690       |   |   |   | 2,624 |   |   |   | 2,583 |   |
| Goodwill impairment                                                                   |   |                     | 38,718      |   |   |   |   |   |   |   |   |   |
| Loss on sale of equipment and furniture                                               |   |                     | 4           |   |   |   | 116 |   |   |   |   |   |
| Gain on sales of bank subsidiaries                                                    |   |                     | (12,749     | ) |   |   | (1,187 | ) |   |   |   |   |
| Gain on debt extinguishment                                                           |   |                     | (1,255      | ) |   |   |   |   |   |   |   |   |
| Realized loss on sale of investment securities                                        |   |                     | 362         |   |   |   |   |   |   |   |   |   |
| Decrease (increase) in amounts due from subsidiaries andother assets                  |   |                     | 9,367       |   |   |   | (7,819 | ) |   |   | (25,179 | ) |
| Increase in accounts payable, accrued expenses and otherliabilities                   |   |                     |  8,784 |   |   |   |  15,784 |   |   |   |  932 |   |
| NET CASH PROVIDED (USED) BY OPERATINGACTIVITIES                                       |   |                     |  9,259 |   |   |   | (8,982 | ) |   |   | (10,951 | ) |
|                                                                                  |   |                     |        |   |   |   |   |   |   |   |   |   |
| INVESTING ACTIVITIES                                                                  |   |                     |        |   |   |   |   |   |   |   |   |   |
| Net cash investments in subsidiaries                                                  |   |                     | (79,084     | ) |   |   | (25,073 | ) |   |   | (35,145 | ) |
| Proceeds from sale of investment securities                                           |   |                     | 2,102       |   |   |   |   |   |   |   |   |   |
| Purchases of investment securities                                                    |   |                     | (100        | ) |   |   | (772 | ) |   |   | (1,800 | ) |
| Net decrease in loans                                                                 |   |                     | 4,927       |   |   |   | 8,760 |   |   |   | 9,551 |   |
| Proceeds from sales of equipment and furniture                                        |   |                     | 3,707       |   |   |   | 35 |   |   |   |   |   |
| Purchases of equipment and furniture                                                  |   |                     | (240        | ) |   |   | (575 | ) |   |   | (1,622 | ) |
| Proceeds from sales of bank subsidiaries                                              |   |                     | 58,796      |   |   |   | 9,506 |   |   |   |   |   |
| NET CASH USED BY INVESTING ACTIVITIES                                                 |   |                     | (9,892      | ) |   |   | (8,119 | ) |   |   | (29,016 | ) |
|                                                                                  |   |                     |        |   |   |   |   |   |   |   |   |   |
| FINANCING ACTIVITIES                                                                  |   |                     |        |   |   |   |   |   |   |   |   |   |
| Net borrowings (payments) from debt obligations                                       |   |                     | (1,000      | ) |   |   | (6,000 | ) |   |   | 20,011 |   |
| Net proceeds from issuance of subordinated debentures                                 |   |                     |        |   |   |   |   |   |   |   | 34,555 |   |
| Net proceeds from issuance of common stock                                            |   |                     | 6,870       |   |   |   |   |   |   |   | 1,950 |   |
| Tax benefit (effect) from share-based payments                                        |   |                     | (293        | ) |   |   | (169 | ) |   |   | 20 |   |
| Cash dividends paid                                                                   |   |                     |        |   |   |   | (864 | ) |   |   | (8,658 | ) |
| NET CASH PROVIDED (USED) BY FINANCINGACTIVITIES                                       |   |                     |  5,577 |   |   |   | (7,033 | ) |   |   |  47,878 |   |
| INCREASE (DECREASE) IN CASH AND CASHEQUIVALENTS                                       |   |                     |  4,944 |   |   |   | (24,134 | ) |   |   |  7,911 |   |
| Cash and cash equivalents at beginning of year                                        |   |                     | 2,961       |   |   |   | 27,095 |   |   |   | 19,184 |   |
|                                                                                  |   |                     |        |   |   |   |   |   |   |   |   |   |
| CASH AND CASH EQUIVALENTS AT END OF YEAR                                              |   | $                        | 7,905       |   |   | $ | 2,961 |   |   | $ | 27,095 |   |

----

| ·   | An equity deficit approximating $38.7 million; |
|--------------------|------------------------------------------------|

| ·   | Regulatory capital classification on a consolidated basis as less than adequately-capitalized and related negative amounts and ratios; |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Numerous banking subsidiaries with regulatory capital classification as "undercapitalized," "significantly-undercapitalized" or "critically-undercapitalized" (two banks were classified as "critically-undercapitalized" at December 31, 2010 and obtained sufficient additional capital from the Corporation in early 2011 to improve their classification to "significantly-undercapitalized"); |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Certain banking subsidiaries which are generally subject to formal regulatory agreements have received "prompt corrective action" notifications and/or directives from the FDIC, which require timely action by bank management and the respective boards of directors to resolve regulatory capital ratios which result in classification as less than adequately-capitalized (the basis of a PCAN) or to submit an acceptable capital restoration plan to the FDIC (the basis of a PCAD), and it is likely additional PCANs and/or PCADs may be issued in the future and/or the banking subsidiaries may be unable to satisfactorily resolve such notices and/or directives; |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | In 2010, Capitol sold several of its banking subsidiaries and has other divestiture transactions pending (see Note L).  The proceeds from those divestitures have been redeployed at certain remaining banking subsidiaries which have experienced a significant erosion of capital due to operating losses.  While such proceeds have been a significant source of funds for redeployment, the Corporation will need to raise significant other sources of new capital in the future; |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| ·   | The Corporation and substantially all of its banking subsidiaries are operating under various regulatory agreements (formal and informal) which place a number of restrictions on them and impose other requirements limiting activities, requiring preservation of capital, improvement in regulatory capital measures, reduction of nonperforming assets and other things for which the entities have not achieved full compliance; |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Elevated levels of nonperforming loans and other nonperforming assets as a percentage of consolidated loans and total assets, respectively; and |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Significant losses from operations in 2010, 2009 and 2008, resulting primarily from provisions for loan losses, costs associated with foreclosed properties and other real estate owned and, in 2010, an impairment charge to operations for the write-off of previously-recorded goodwill ($64.5 million). |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | An offer to exchange all outstanding trust-preferred securities; |
|--------------------|------------------------------------------------------------------|

| ·   | Amendment to Capitol's articles of incorporation to authorize additional shares of common stock; |
|--------------------|--------------------------------------------------------------------------------------------------|

| ·   | A potential shareholder rights offering; and |
|--------------------|----------------------------------------------|

| ·   | A potential reverse stock split. |
|--------------------|----------------------------------|

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| ·   | Raising significant amounts of new capital; |
|--------------------|---------------------------------------------|

| ·   | Completion of divestitures which are currently pending; |
|--------------------|---------------------------------------------------------|

| ·   | A shareholder rights offering; |
|--------------------|--------------------------------|

| ·   | Further reductions in nonperforming assets; |
|--------------------|---------------------------------------------|

| ·   | Stabilization of provisions for loan losses and impairment losses; |
|--------------------|--------------------------------------------------------------------|

| ·   | Enabling Capitol's trust-preferred securities to become a qualifying element of regulatory capital and/or equity, subject to various limitations; and |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Further reductions in operating expenses through mergers of bank subsidiaries completed in recent years. |
|--------------------|----------------------------------------------------------------------------------------------------------|

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