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| 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 and Shareholder      Information                                                                                                                                                                             |   F-5 |
| Cautions Regarding Forward-Looking      Statements                                                                                                                                                                           |   F-6 |
| Management's Discussion and Analysis of Capitol's Business,      Financial Condition andResults      of Operations:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |            |
| Summary and      Overview                                                                                                                                                                                                                                            | F-11            |
| Capitol's Approach to Community      Banking                                                                                                                                                                                                                         | F-12            |
| Monitoring and Managing Capitol's Investments      in Community      Banks                                                                                                                                                                                                          | F-12            |
| Capitol's Results of      Operations                                                                                                                                                                                                                                 | F-16            |
| Capitol's Financial      Position                                                                                                                                                                                                                                    | F-21            |
| Liquidity, Capital Resources and Capital      Adequacy                                                                                                                                                                                                               | F-29            |
| Certain Regulatory      Matters                                                                                                                                                                                                                                      | F-35            |
| Trends Affecting      Operations                                                                                                                                                                                                                                     | F-37            |
| Quantitative and Qualitative Disclosure      About Market      Risk                                                                                                                                                                                                                 | F-37            |
| Proposed Spin-off of Michigan Commerce Bancorp      Limited                                                                                                                                                                                                          | F-41            |
| Sales of Banks and Pending      Divestitures                                                                                                                                                                                                                         | F-41            |
| Critical Accounting Policies Affecting      Capitol's Financial      Statements                                                                                                                                                                                      | F-42            |
| Use of Estimates in Determining the Allowance for      Loan      Losses                                                                                                                                                                                                             | F-42            |
| Accounting for Goodwill and Other      Intangibles                                                                                                                                                                                                                                  | F-43            |
| Accounting for Income      Taxes                                                                                                                                                                                                                                                    | F-45            |
| Consolidation      Policy                                                                                                                                                                                                                                                           | F-46            |
| New Accounting      Standards                                                                                                                                                                                                                                        | F-46            |
| Risk Factors Affecting Capitol and its      Banks                                                                                                                                                                                                                    | F-47            |
| Management's Report on Internal Control Over Financial      Reporting                                                                                                                                                        | F-48            |
| Report of Independent Registered Public Accounting Firm      on InternalControl      Over Financial      Reporting                                                                                                                               |  F-49      |
| Consolidated      Financial Statements:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |            |
| Report of Independent Registered Public Accounting      Firm                                                                                                                                                                                                         | F-51            |
| Consolidated Balance      Sheets                                                                                                                                                                                                                                     | F-52            |
| Consolidated Statements of      Operations                                                                                                                                                                                                                           | F-53            |
| Consolidated Statements of Changes in      Equity                                                                                                                                                                                                                    | F-54            |
| Consolidated Statements of Cash      Flows                                                                                                                                                                                                                           | F-56            |
| Notes to Consolidated Financial      Statements                                                                                                                                                                                                                      | F-57            |

----

Selected Consolidated Financial Data

|                                                           |   | As      of and for the Year Ended December 31 |
|----------------------------------------------------------------|--------|-----------------------------------------------|
|                                                           |   | 2009(1)                                       |   |   | 2008(2) |   |   | 2007(3) |   |   | 2006(4) |   |   | 2005(5) |
| For      the year:                                             |   |                                          |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest      income                                           |   | $                                             | 266,899 |   |   | $ | 304,315 |   |   | $ | 330,439 |   |   | $ | 279,353 |   |   | $ | 224,439 |   |
| Interest      expense                                          |   |                                          | 110,517 |   |   |   | 140,466 |   |   |   | 147,162 |   |   |   | 105,586 |   |   |   | 67,579 |   |
| Net      interest income                                       |   |                                          | 156,382 |   |   |   | 163,849 |   |   |   | 183,277 |   |   |   | 173,767 |   |   |   | 156,860 |   |
| Provision      for loan losses                                 |   |                                          | 190,680 |   |   |   | 82,492 |   |   |   | 25,340 |   |   |   | 12,156 |   |   |   | 10,960 |   |
| Noninterest      income                                        |   |                                          | 28,773 |   |   |   | 26,432 |   |   |   | 24,381 |   |   |   | 21,532 |   |   |   | 21,048 |   |
| Noninterest      expense                                       |   |                                          | 240,597 |   |   |   | 190,388 |   |   |   | 176,160 |   |   |   | 137,804 |   |   |   | 117,289 |   |
| Net      income (loss)                                         |   |                                          | (264,540 | ) |   |   | (52,451 | ) |   |   | 3,334 |   |   |   | 29,876 |   |   |   | 30,427 |   |
| Net      income (loss) attributable to Capitol Bancorp Limited |   |                                          | (195,169 | ) |   |   | (28,607 | ) |   |   | 21,937 |   |   |   | 42,391 |   |   |   | 35,925 |   |
| Net      income (loss) per share attributable to Capitol       |   |                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Bancorp      Limited:                                          |   |                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                                          |   |                                          | (11.28 | ) |   |   | (1.67 | ) |   |   | 1.29 |   |   |   | 2.69 |   |   |   | 2.42 |   |
| Diluted                                                        |   |                                          | (11.28 | ) |   |   | (1.67 | ) |   |   | 1.27 |   |   |   | 2.57 |   |   |   | 2.34 |   |
| Cash      dividends paid per share                             |   |                                          | 0.05 |   |   |   | 0.50 |   |   |   | 1.00 |   |   |   | 0.95 |   |   |   | 0.72 |   |
|                                                           |   |                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| At      end of year:                                           |   |                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total      assets                                              |   | $                                             | 5,131,940 |   |   | $ | 5,654,836 |   |   | $ | 4,901,763 |   |   | $ | 4,065,816 |   |   | $ | 3,475,721 |   |
| Total      earning assets                                      |   |                                          | 4,855,309 |   |   |   | 5,282,010 |   |   |   | 4,527,006 |   |   |   | 3,743,041 |   |   |   | 3,204,646 |   |
| Portfolio      loans                                           |   |                                          | 4,047,101 |   |   |   | 4,735,229 |   |   |   | 4,314,701 |   |   |   | 3,488,678 |   |   |   | 2,991,189 |   |
| Deposits                                                       |   |                                          | 4,410,633 |   |   |   | 4,497,612 |   |   |   | 3,844,745 |   |   |   | 3,258,485 |   |   |   | 2,785,259 |   |
| Notes      payable and short-term borrowings                   |   |                                          | 276,159 |   |   |   | 446,925 |   |   |   | 320,384 |   |   |   | 191,154 |   |   |   | 175,729 |   |
| Subordinated      debentures                                   |   |                                          | 167,441 |   |   |   | 167,293 |   |   |   | 156,130 |   |   |   | 101,035 |   |   |   | 100,940 |   |
| Noncontrolling      interests in consolidated subsidiaries     |   |                                          | 72,271 |   |   |   | 159,220 |   |   |   | 156,198 |   |   |   | 126,512 |   |   |   | 83,838 |   |
| Capitol      Bancorp Limited stockholders' equity              |   |                                          | 161,335 |   |   |   | 353,848 |   |   |   | 389,145 |   |   |   | 361,879 |   |   |   | 301,866 |   |

|                                                                                                |   |                        |     |   | Quarterly      Results of Operations (unaudited)  |   |
|-----------------------------------------------------------------------------------------------------|--------|-----------------------------|----------|--------|--------------------------------------------------------|--------|
|                                                                                                |   | Total      forthe      Year |     |   | FourthQuarter                                          |   |   | ThirdQuarter |   |   | SecondQuarter |   |   | FirstQuarter |   |
| Year      ended December 31, 2009:(1)                                                               |   |                        |     |   |                                                   |   |   |   |   |   |   |   |   |   |   |
| As      previously reported:                                                                        |   |                        |     |   |                                                   |   |   |   |   |   |   |   |   |   |   |
| Interest      income                                                                                |   | $                           | 266,899  |   |                                                   | $      | 61,366 |   |   | $ | 67,345 |   |   | $ | 69,472 |   |   | $ | 68,716 |   |
| Interest      expense                                                                               |   |                        | 110,517  |   |                                                   |   | 23,075 |   |   |   | 27,293 |   |   |   | 28,890 |   |   |   | 31,259 |   |
| Net      interest income                                                                            |   |                        | 156,382  |   |                                                   |   | 38,291 |   |   |   | 40,052 |   |   |   | 40,582 |   |   |   | 37,457 |   |
| Provision      for loan losses(8)                                                                   |   |                        | 190,680  |   |                                                   |   | 77,924 |   |   |   | 48,771 |   |   |   | 35,813 |   |   |   | 28,172 |   |
| Net      loss(8)                                                                                    |   |                        | (264,540 | )      |                                                   |   | (87,107 | ) |   |   | (129,174 | ) |   |   | (25,354 | ) |   |   | (22,905 | ) |
| Net      loss attributable to Capitol Bancorp Limited(8)                                            |   |                        | (195,169 | )      |                                                   |   | (77,051 | ) |   |   | (83,748 | ) |   |   | (18,698 | ) |   |   | (15,672 | ) |
| Net      loss per share attributable to Capitol BancorpLimited      – basic and diluted(6)(8) |   |                        | (11.28   | )      |                                                   |   | (4.43 | ) |   |   | (4.81 | ) |   |   | (1.08 | ) |   |   | (0.91 | ) |
| Cash      dividends paid per share                                                                  |   |                        | 0.05     |   |                                                   |   | -- |   |   |   | -- |   |   |   | -- |   |   |   | 0.05 |   |

| As      revised:(7)                                                                                 |   |   |     |   |   |   |    |   |   |   |     |   |   |   |    |
|-----------------------------------------------------------------------------------------------------|--------|--------|----------|--------|--------|--------|---------|--------|--------|--------|----------|--------|--------|--------|---------|
| Provision      for loan losses(8)                                                                   |   |   | 190,680  |   |   |   | 75,771  |   |   |   | 47,335   |   |   |   | 33,658  |   |   |   | 33,916 |   |
| Net      loss(8)                                                                                    |   |   | (264,540 | )      |   |   | (85,558 | )      |   |   | (128,115 | )      |   |   | (22,960 | ) |   |   | (27,907 | ) |
| Net      loss attributable to Capitol Bancorp Limited(8)                                            |   |   | (195,169 | )      |   |   | (75,502 | )      |   |   | (82,689  | )      |   |   | (16,304 | ) |   |   | (20,674 | ) |
| Net      loss per share attributable to Capitol BancorpLimited      – basic and diluted(6)(8) |   |   | (11.28   | )      |   |   | (4.34   | )      |   |   | (4.75    | )      |   |   | (0.95   | ) |   |   | (1.20 | ) |

|                                                                                                      |   |   |    |   |   |   |       |   |   |   |    |   |   |   |       |
|-----------------------------------------------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|------------|--------|--------|--------|---------|--------|--------|--------|------------|
| Year      ended December 31, 2008:(2)                                                                     |   |   |    |   |   |   |       |   |   |   |    |   |   |   |       |
| Interest      income                                                                                      |   | $      | 304,315 |   |   | $      | 73,179     |   |   | $      | 75,496  |   |   | $      | 76,137     |   |   | $ | 79,503 |   |
| Interest      expense                                                                                     |   |   | 140,466 |   |   |   | 34,496     |   |   |   | 34,457  |   |   |   | 33,945     |   |   |   | 37,568 |   |
| Net      interest income                                                                                  |   |   | 163,849 |   |   |   | 38,683     |   |   |   | 41,039  |   |   |   | 42,192     |   |   |   | 41,935 |   |
| Provision      for loan losses                                                                            |   |   | 82,492  |   |   |   | 10,705     |   |   |   | 53,810  |   |   |   | 9,019      |   |   |   | 8,958 |   |
| Net      loss                                                                                             |   |   | (52,451 | )      |   |   | (4,866     | )      |   |   | (38,880 | )      |   |   | (5,437     | ) |   |   | (3,268 | ) |
| Net      income (loss) attributable to Capitol Bancorp Limited                                            |   |   | (28,607 | )      |   |   | 1,074      |   |   |   | (32,495 | )      |   |   | 623        |   |   |   | 2,191 |   |
| Net      income (loss) per share attributable to Capitol BancorpLimited      – basic and diluted(6) |   |   | (1.67   | )      |   |   |  0.06 |   |   |   | (1.90   | )      |   |   |  0.04 |   |   |   |  0.13 |   |
| Cash      dividends paid per share                                                                        |   |   | 0.50    |   |   |   | 0.05       |   |   |   | 0.05    |   |   |   | 0.15       |   |   |   | 0.25 |   |
|                                                                                                      |   |   |    |   |   |   |       |   |   |   |    |   |   |   |       |   |   |   |   |   |

| (1) | 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, Summit Bank of Kansas City and Capitol      Development Bancorp Limited III's operations through September 30, 2009      (the date when these entities ceased to be consolidated with Capitol due      to a change in control).                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (2) | 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).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| (3) | 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. |
| (4) | 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.                                                                                                                                                                               |
| (5) | Includes      Bank of Michigan, effective January 2005 (located in Farmington Hills,      Michigan), Peoples State Bank, acquired April 7, 2005 (located in      Jeffersonville, Georgia), Bank of Bellevue (located in Bellevue,      Washington) and Fort Collins Commerce Bank (located in Fort Collins,      Colorado), both effective June 2005, Bank of Auburn Hills, effective July      2005 (located in Auburn Hills, Michigan), Bank of San Francisco, effective      August 2005 (located in San Francisco, California), Bank of Belleville      (located in Belleville, Illinois) and Summit Bank of Kansas City (located      in Lee's Summit, Missouri), both effective November 2005, and Bank of      Santa Barbara, effective December 2005 (located in Santa Barbara,      California).                                                                                         |
| (6) | 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.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| (7) | As-adjusted      to reflect revised interpretation of fair-value accounting guidance (FSP      FAS 157-4) which was implemented in error in the first quarter of 2009, to      properly base fair-value estimates of collateral-dependent loans and other      real estate owned upon appraisal data rather than use of alternative      valuation methods.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| (8) | Fourth      quarter 2009 results of operations include additional provisions for loan      losses approximating $20.7 million relating to regulatory exam reports      received after year-end 2009 and approximately $9.6 million of write-downs      (and related expense recognition) resulting from appraisal data received      after year-end 2009 for collateral-dependent loans and other real estate      owned.                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |

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INFORMATION REGARDING CAPITOL'S COMMONSTOCK

|                |   | 2009   |   |   | 2008   |
|---------------------|--------|--------|--------|--------|--------|
|                |   | Low    |   |   | High   |   |   | Low |   |   | High |
| Quarter      Ended: |   |   |   |   |   |   |   |   |   |   |   |
| March      31       |   | $      | 2.50   |   |   | $ | 7.96 |   |   | $ | 16.30 |   |   | $ | 23.52 |
| June      30        |   |   | 2.38   |   |   |   | 7.08 |   |   |   | 8.97 |   |   |   | 21.42 |
| September      30   |   |   | 1.79   |   |   |   | 6.06 |   |   |   | 7.08 |   |   |   | 25.40 |
| December      31    |   |   | 1.55   |   |   |   | 3.45 |   |   |   | 3.84 |   |   |   | 20.49 |

|                      |   | Period      Ending |
|---------------------------|--------|--------------------|
| Index                     |   | 12/31/04           | 12/31/05 | 12/31/06 | 12/31/07 | 12/31/08 | 12/31/09 |
| Capitol      Bancorp Ltd. |   | 100.00             | 108.65 | 137.09 | 62.05 | 24.88 | 6.31 |
| Russell      2000         |   | 100.00             | 104.55 | 123.76 | 121.82 | 80.66 | 102.58 |
| SNL      Bank $5B-$10B    |   | 100.00             | 96.89 | 104.56 | 83.86 | 73.57 | 56.56 |

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EXECUTIVE OFFICER CERTIFICATIONS

AVAILABILITY OF FORM 10-K AND CERTAIN OTHERREPORTS

OTHER CORPORATE INFORMATION

| 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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CAUTIONS REGARDING FORWARD-LOOKING STATEMENTS

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Management's Discussion and Analysis of Capitol'sBusiness,

Summary and Overview

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Capitol's Approach to Community Banking

Monitoring and Managing Capitol's Investments inCommunity Banks

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

----

|                                   |   | Total      Assets |      |   | Total      Revenues(6) |
|----------------------------------------|--------|-------------------|-----------|--------|------------------------|
|                                   |   | 2009              |      |   | 2008                   |   |   | 2009 |   |   | 2008 |
| Arizona      Region:                   |   |              |      |   |                   |   |   |   |   |   |   |
| Bank      of Tucson                    |   | $                 | 204,933   |   |                   | $ | 189,869 |   |   | $ | 12,709 |   |   | $ | 13,383 |
| Central      Arizona Bank              |   |              | 95,303    |   |                   |   | 79,775 |   |   |   | 4,089 |   |   |   | 4,641 |
| Southern      Arizona Community Bank   |   |              | 94,585    |   |                   |   | 88,146 |   |   |   | 5,188 |   |   |   | 5,907 |
| Sunrise      Bank of Albuquerque       |   |              | 78,930    |   |                   |   | 81,977 |   |   |   | 4,110 |   |   |   | 5,203 |
| Sunrise      Bank of Arizona(4)        |   |              | 495,168   |   |                   |   | 592,666 |   |   |   | 23,712 |   |   |   | 36,081 |
| Yuma      Community Bank(5)            |   |              |      |   |                   |   | 73,028 |   |   |   | 3,225 |   |   |   | 5,273 |
| Arizona      Region Total              |   |              | 968,919   |   |                   |   | 1,105,461 |   |   |   | 53,033 |   |   |   | 70,488 |
|                                   |   |              |      |   |                   |   |   |   |   |   |   |   |   |   |   |
| California      Region:                |   |              |      |   |                   |   |   |   |   |   |   |   |   |   |   |
| Bank      of Escondido                 |   |              | 103,469   |   |                   |   | 96,803 |   |   |   | 4,767 |   |   |   | 5,036 |
| Bank      of Feather River             |   |              | 33,693    |   |                   |   | 29,218 |   |   |   | 2,111 |   |   |   | 1,350 |
| Bank      of San Francisco             |   |              | 87,740    |   |                   |   | 74,670 |   |   |   | 4,639 |   |   |   | 3,748 |
| Bank      of Santa Barbara(3)          |   |              |      |   |                   |   | 72,076 |   |   |   | 2,571 |   |   |   | 4,056 |
| Napa      Community Bank               |   |              | 166,873   |   |                   |   | 149,093 |   |   |   | 9,147 |   |   |   | 8,732 |
| Point      Loma Community Bank         |   |              | 66,700    |   |                   |   | 61,514 |   |   |   | 3,400 |   |   |   | 3,804 |
| Sunrise      Bank of San Diego         |   |              | 83,825    |   |                   |   | 86,322 |   |   |   | 4,557 |   |   |   | 5,415 |
| Sunrise      Community Bank            |   |              | 42,203    |   |                   |   | 36,139 |   |   |   | 2,111 |   |   |   | 1,620 |
| California      Region Total           |   |              | 584,503   |   |                   |   | 605,835 |   |   |   | 33,303 |   |   |   | 33,761 |
|                                   |   |              |      |   |                   |   |   |   |   |   |   |   |   |   |   |
| Colorado      Region:                  |   |              |      |   |                   |   |   |   |   |   |   |   |   |   |   |
| Fort      Collins Commerce Bank        |   |              | 93,908    |   |                   |   | 80,247 |   |   |   | 5,381 |   |   |   | 4,628 |
| Larimer      Bank of Commerce          |   |              | 89,623    |   |                   |   | 88,725 |   |   |   | 5,333 |   |   |   | 4,567 |
| Loveland      Bank of Commerce         |   |              | 40,032    |   |                   |   | 32,034 |   |   |   | 2,148 |   |   |   | 1,434 |
| Mountain      View Bank of Commerce(1) |   |              | 50,621    |   |                   |   | 37,740 |   |   |   | 2,388 |   |   |   | 1,192 |
| Colorado      Region Total             |   |              | 274,184   |   |                   |   | 238,746 |   |   |   | 15,250 |   |   |   | 11,821 |
|                                   |   |              |      |   |                   |   |   |   |   |   |   |   |   |   |   |
| Great      Lakes Region:               |   |              |      |   |                   |   |   |   |   |   |   |   |   |   |   |
| Bank      of Auburn Hills              |   |              | 35,546    |   |                   |   | 43,856 |   |   |   | 2,231 |   |   |   | 2,766 |
| Bank      of Maumee                    |   |              | 46,796    |   |                   |   | 56,812 |   |   |   | 2,592 |   |   |   | 2,829 |
| Bank      of Michigan                  |   |              | 99,344    |   |                   |   | 78,716 |   |   |   | 4,860 |   |   |   | 4,902 |
| Capitol      National Bank             |   |              | 200,597   |   |                   |   | 245,354 |   |   |   | 11,605 |   |   |   | 14,649 |
| Elkhart      Community Bank            |   |              | 94,163    |   |                   |   | 99,917 |   |   |   | 4,558 |   |   |   | 5,684 |
| Evansville      Commerce Bank          |   |              | 56,392    |   |                   |   | 63,228 |   |   |   | 3,458 |   |   |   | 4,014 |
| Goshen      Community Bank             |   |              | 81,244    |   |                   |   | 87,419 |   |   |   | 4,358 |   |   |   | 5,140 |
| Michigan      Commerce Bank(2)         |   |              | 1,089,508 |   |                   |   | 1,275,125 |   |   |   | 62,982 |   |   |   | 79,937 |
| Ohio      Commerce Bank                |   |              | 66,175    |   |                   |   | 60,678 |   |   |   | 3,263 |   |   |   | 2,672 |
| Paragon      Bank & Trust          |   |              | 108,235   |   |                   |   | 107,491 |   |   |   | 6,271 |   |   |   | 7,024 |
| Great      Lakes Region Total          |   |              | 1,878,000 |   |                   |   | 2,118,596 |   |   |   | 106,178 |   |   |   | 129,617 |
|                                   |   |              |      |   |                   |   |   |   |   |   |   |   |   |   |   |
| Midwest      Region:                   |   |              |      |   |                   |   |   |   |   |   |   |   |   |   |   |
| Adams      Dairy Bank(1)               |   |              | 44,309    |   |                   |   | 33,867 |   |   |   | 2,337 |   |   |   | 1,621 |
| Bank      of Belleville                |   |              | 70,502    |   |                   |   | 73,901 |   |   |   | 3,711 |   |   |   | 3,640 |
| Community      Bank of Lincoln         |   |              | 60,356    |   |                   |   | 53,222 |   |   |   | 3,551 |   |   |   | 2,117 |
| Summit      Bank of Kansas City (3)    |   |              |      |   |                   |   | 53,429 |   |   |   | 2,780 |   |   |   | 3,074 |
| Midwest      Region Total              |   |              | 175,167   |   |                   |   | 214,419 |   |   |   | 12,379 |   |   |   | 10,452 |
|                                   |   |              |      |   |                   |   |   |   |   |   |   |   |   |   |   |
| Nevada      Region:                    |   |              |      |   |                   |   |   |   |   |   |   |   |   |   |   |
| 1st      Commerce Bank                 |   |              | 38,811    |   |                   |   | 52,622 |   |   |   | 2,315 |   |   |   | 2,353 |
| Bank      of Las Vegas                 |   |              | 75,313    |   |                   |   | 73,692 |   |   |   | 4,430 |   |   |   | 4,853 |
| Black      Mountain Community Bank     |   |              | 177,822   |   |                   |   | 157,545 |   |   |   | 9,479 |   |   |   | 10,739 |
| Desert      Community Bank             |   |              | 98,003    |   |                   |   | 100,312 |   |   |   | 5,757 |   |   |   | 7,240 |
| Red      Rock Community Bank           |   |              | 137,648   |   |                   |   | 126,993 |   |   |   | 5,810 |   |   |   | 7,709 |
| Nevada      Region Total               |   |              | 527,597   |   |                   |   | 511,164 |   |   |   | 27,791 |   |   |   | 32,894 |

----

|                            |   | Total      Assets |      |   | Total      Revenues(6) |
|---------------------------------|--------|-------------------|-----------|--------|------------------------|
|                            |   | 2009              |      |   | 2008                   |   |   | 2009 |   |   | 2008 |
| Northeast      Region:          |   |              |      |   |                   |   |   |   |   |   |   |
| USNY      Bank                  |   | $                 | 64,176    |   |                   | $ | 49,620 |   |   | $ | 3,265 |   |   | $ | 1,845 |
|                            |   |              |      |   |                   |   |   |   |   |   |   |   |   |   |   |
| Northwest      Region:          |   |              |      |   |                   |   |   |   |   |   |   |   |   |   |   |
| Bank      of Bellevue           |   |              | 53,279    |   |                   |   | 55,841 |   |   |   | 2,553 |   |   |   | 2,909 |
| Bank      of Everett            |   |              | 43,876    |   |                   |   | 44,756 |   |   |   | 2,384 |   |   |   | 2,144 |
| Bank      of Tacoma             |   |              | 39,223    |   |                   |   | 44,241 |   |   |   | 2,350 |   |   |   | 2,060 |
| High      Desert Bank           |   |              | 41,849    |   |                   |   | 41,904 |   |   |   | 2,429 |   |   |   | 1,497 |
| Issaquah      Community Bank    |   |              | 37,627    |   |                   |   | 36,942 |   |   |   | 2,105 |   |   |   | 1,296 |
| Northwest      Region Total     |   |              | 215,854   |   |                   |   | 223,684 |   |   |   | 11,821 |   |   |   | 9,906 |
|                            |   |              |      |   |                   |   |   |   |   |   |   |   |   |   |   |
| Southeast      Region:          |   |              |      |   |                   |   |   |   |   |   |   |   |   |   |   |
| Bank      of Valdosta           |   |              | 55,156    |   |                   |   | 58,995 |   |   |   | 2,782 |   |   |   | 3,156 |
| Community      Bank of Rowan(3) |   |              |      |   |                   |   | 138,341 |   |   |   | 4,962 |   |   |   | 7,311 |
| First      Carolina State Bank  |   |              | 115,716   |   |                   |   | 119,774 |   |   |   | 5,473 |   |   |   | 6,076 |
| Peoples      State Bank         |   |              | 26,198    |   |                   |   | 29,233 |   |   |   | 1,361 |   |   |   | 1,705 |
| Pisgah      Community Bank(1)   |   |              | 62,773    |   |                   |   | 36,897 |   |   |   | 2,478 |   |   |   | 691 |
| Sunrise      Bank of Atlanta    |   |              | 55,966    |   |                   |   | 62,198 |   |   |   | 3,668 |   |   |   | 4,434 |
| Southeast      Region Total     |   |              | 315,809   |   |                   |   | 445,438 |   |   |   | 20,724 |   |   |   | 23,373 |
|                            |   |              |      |   |                   |   |   |   |   |   |   |   |   |   |   |
| Texas      Region:              |   |              |      |   |                   |   |   |   |   |   |   |   |   |   |   |
| Bank      of Fort Bend          |   |              | 31,548    |   |                   |   | 26,424 |   |   |   | 1,640 |   |   |   | 922 |
| Bank      of Las Colinas        |   |              | 43,003    |   |                   |   | 31,354 |   |   |   | 1,979 |   |   |   | 1,288 |
| Texas      Region Total         |   |              | 74,551    |   |                   |   | 57,778 |   |   |   | 3,619 |   |   |   | 2,210 |
|                            |   |              |      |   |                   |   |   |   |   |   |   |   |   |   |   |
| Other,      net(7)              |   |              | 53,180    |   |                   |   | 84,095 |   |   |   | 8,309 |   |   |   | 4,380 |
|                            |   |              |      |   |                   |   |   |   |   |   |   |   |   |   |   |
| Consolidated      Totals        |   | $                 | 5,131,940 |   |                   | $ | 5,654,836 |   |   | $ | 295,672 |   |   | $ | 330,747 |

| (1) | Became      a Capitol affiliate in 2008 and is included for periods after addition to      the Capitol banking network.                                                                                                                                                                                                                                                                                                                                                                                         |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (2) | 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.                                 |
| (3) | Bank      of Santa Barbara, Community Bank of Rowan and Summit Bank of Kansas City      are majority-owned subsidiaries of Capitol Development Bancorp Limited      (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.                                |
| (4) | 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 of the banks were either wholly-owned subsidiaries of Capitol or      majority-owned by a bank development subsidiary in which Capitol holds a      controlling interest. |
| (5) | Capitol      sold its ownership in Yuma Community Bank effective September 21,      2009.  The bank's operations are included in Capitol's      consolidated totals up to the date of sale.                                                                                                                                                                                                                                                                                                           |
| (6) | Total      revenues is the sum of interest income and noninterest    income.                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| (7) | Includes      corporate and other nonbankentities.                                                                                                                                                                                                                                                                                                                                                                                                                                                              |

----

Capitol's Results of Operations

|                                   |   | Net      Income (Loss) |    |   | Return      on Average Equity |   |    | Return      on Average Assets |   |
|----------------------------------------|--------|------------------------|---------|--------|-------------------------------|--------|---------|-------------------------------|--------|
|                                   |   | 2009                   |    |   | 2008                          |   |    | 2007                          |   |   | 2009 |   |   | 2008 |   |   | 2007 |   |   | 2009 |   |   | 2008 |   |   | 2007 |   |
| Arizona      Region:                   |   |                   |    |   |                          |   |    |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Bank      of Tucson                    |   | $                      | 1,833   |   |                          | $      | 3,717   |                          |   | $ | 4,527 |   |   |   | 10.12 | % |   |   | 20.56 | % |   |   | 26.48 | % |   |   | 0.91 | % |   |   | 2.04 | % |   |   | 2.52 | % |
| Central      Arizona Bank              |   |                   | (5,892  | )      |                          |   | (1,004  | )                             |   |   | 327 |   |   |   |   |   |   |   |   |   |   |   | 4.10 | % |   |   |   |   |   |   |   |   |   |   | 0.46 | % |
| Southern      Arizona Community Bank   |   |                   | 434     |   |                          |   | 639     |                          |   |   | 1,082 |   |   |   | 4.73 | % |   |   | 7.06 | % |   |   | 12.04 | % |   |   | 0.48 | % |   |   | 0.72 | % |   |   | 1.22 | % |
| Sunrise      Bank of Albuquerque       |   |                   | (1,746  | )      |                          |   | 224     |                          |   |   | 601 |   |   |   |   |   |   |   | 3.05 | % |   |   | 8.95 | % |   |   |   |   |   |   | 0.29 | % |   |   | 0.86 | % |
| Sunrise      Bank of Arizona(4)        |   |                   | (48,628 | )      |                          |   | (13,505 | )                             |   |   | 5,639 |   |   |   |   |   |   |   |   |   |   |   | 10.29 | % |   |   |   |   |   |   |   |   |   |   | 6.36 | % |
| Yuma      Community Bank(5)            |   |                   | 372     |   |                          |   | 565     |                          |   |   | 936 |   |   |   | 7.69 | % |   |   | 7.23 | % |   |   | 12.09 | % |   |   | 0.78 | % |   |   | 0.75 | % |   |   | 1.08 | % |
| Arizona      Region Total              |   |                   | (53,627 | )      |                          |   | (9,364  | )                             |   |   | 13,112 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                   |   |                   |    |   |                          |   |    |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| California      Region:                |   |                   |    |   |                          |   |    |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Bank      of Escondido                 |   |                   | (1,107  | )      |                          |   | 361     |                          |   |   | 505 |   |   |   |   |   |   |   | 2.53 | % |   |   | 3.54 | % |   |   |   |   |   |   | 0.38 | % |   |   | 0.58 | % |
| Bank      of Feather River             |   |                   | (714    | )      |                          |   | (487    | )                             |   |   | (576 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Bank      of San Francisco             |   |                   | 52      |   |                          |   | 43      |                          |   |   | (397 | ) |   |   | 0.63 | % |   |   | 0.51 | % |   |   |   |   |   |   | 0.06 | % |   |   | 0.07 | % |   |   |   |   |
| Bank      of Santa Barbara(3)          |   |                   | (1,300  | )      |                          |   | (420    | )                             |   |   | (191 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Napa      Community Bank               |   |                   | 485     |   |                          |   | 1,223   |                          |   |   | 1,542 |   |   |   | 3.01 | % |   |   | 8.39 | % |   |   | 11.73 | % |   |   | 0.32 | % |   |   | 0.93 | % |   |   | 1.29 | % |
| Point      Loma Community Bank         |   |                   | (1,869  | )      |                          |   | 294     |                          |   |   | 168 |   |   |   |   |   |   |   | 4.00 | % |   |   | 2.37 | % |   |   |   |   |   |   | 0.50 | % |   |   | 0.31 | % |
| Sunrise      Bank of San Diego         |   |                   | (2,141  | )      |                          |   | 300     |                          |   |   | 432 |   |   |   |   |   |   |   | 2.81 | % |   |   | 4.06 | % |   |   |   |   |   |   | 0.33 | % |   |   | 0.50 | % |
| Sunrise      Community Bank            |   |                   | (3,198  | )      |                          |   | (646    | )                             |   |   | (998 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| California      Region Total           |   |                   | (9,792  | )      |                          |   | 668     |                          |   |   | 485 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                   |   |                   |    |   |                          |   |    |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Colorado      Region:                  |   |                   |    |   |                          |   |    |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Fort      Collins Commerce Bank        |   |                   | 15      |   |                          |   | 620     |                          |   |   | 588 |   |   |   | 0.15 | % |   |   | 6.71 | % |   |   | 6.81 | % |   |   | 0.02 | % |   |   | 0.89 | % |   |   | 1.07 | % |
| Larimer      Bank of Commerce          |   |                   | 57      |   |                          |   | 465     |                          |   |   | (586 | ) |   |   | 0.70 | % |   |   | 6.09 | % |   |   |   |   |   |   | 0.06 | % |   |   | 0.66 | % |   |   |   |   |
| Loveland      Bank of Commerce         |   |                   | (872    | )      |                          |   | (458    | )                             |   |   | (426 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Mountain      View Bank of Commerce(1) |   |                   | (31     | )      |                          |   | (819    | )                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Colorado      Region Total             |   |                   | (831    | )      |                          |   | (192    | )                             |   |   | (424 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                   |   |                   |    |   |                          |   |    |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Great      Lakes Region:               |   |                   |    |   |                          |   |    |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Bank      of Auburn Hills              |   |                   | (3,938  | )      |                          |   | (957    | )                             |   |   | (335 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Bank      of Maumee                    |   |                   | (2,834  | )      |                          |   | (774    | )                             |   |   | (1,063 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Bank      of Michigan                  |   |                   | 152     |   |                          |   | 543     |                          |   |   | (136 | ) |   |   | 2.16 | % |   |   | 7.95 | % |   |   |   |   |   |   | 0.16 | % |   |   | 0.76 | % |   |   |   |   |
| Capitol      National Bank             |   |                   | (7,175  | )      |                          |   | (766    | )                             |   |   | 1,977 |   |   |   |   |   |   |   |   |   |   |   | 10.45 | % |   |   |   |   |   |   |   |   |   |   | 0.84 | % |
| Elkhart      Community Bank            |   |                   | (3,535  | )      |                          |   | 39      |                          |   |   | 766 |   |   |   |   |   |   |   | 0.45 | % |   |   | 8.67 | % |   |   |   |   |   |   | 0.04 | % |   |   | 0.90 | % |
| Evansville      Commerce Bank          |   |                   | (1,644  | )      |                          |   | (248    | )                             |   |   | (689 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Goshen      Community Bank             |   |                   | (39     | )      |                          |   | 178     |                          |   |   | 431 |   |   |   |   |   |   |   | 2.23 | % |   |   | 5.72 | % |   |   |   |   |   |   | 0.22 | % |   |   | 0.54 | % |
| Michigan      Commerce Bank(2)         |   |                   | (69,569 | )      |                          |   | (13,768 | )                             |   |   | 6,050 |   |   |   |   |   |   |   |   |   |   |   | 5.66 | % |   |   |   |   |   |   |   |   |   |   | 0.48 | % |
| Ohio      Commerce Bank                |   |                   | 206     |   |                          |   | (149    | )                             |   |   | (770 | ) |   |   | 2.24 | % |   |   |   |   |   |   |   |   |   |   | 0.33 | % |   |   |   |   |   |   |   |   |
| Paragon      Bank & Trust          |   |                   | (7,555  | )      |                          |   | (1,501  | )                             |   |   | (187 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Great      Lakes Region Total          |   |                   | (95,931 | )      |                          |   | (17,403 | )                             |   |   | 6,044 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                   |   |                   |    |   |                          |   |    |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Midwest      Region                    |   |                   |    |   |                          |   |    |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Adams      Dairy Bank(1)               |   |                   | (66     | )      |                          |   | (669    | )                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Bank      of Belleville                |   |                   | 122     |   |                          |   | 35      |                          |   |   | (572 | ) |   |   | 1.79 | % |   |   | 0.49 | % |   |   |   |   |   |   | 0.17 | % |   |   | 0.06 | % |   |   |   |   |
| Community      Bank of Lincoln         |   |                   | (1,516  | )      |                          |   | (643    | )                             |   |   | (500 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Summit      Bank of Kansas City(3)     |   |                   | (978    | )      |                          |   | (97     | )                             |   |   | (404 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Midwest      Region Total              |   |                   | (2,438  | )      |                          |   | (1,374  | )                             |   |   | (1,476 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

|                               |   | Net      Income (Loss) |     |   | Return      on Average Equity |   |    | Return      on Average Assets |
|------------------------------------|--------|------------------------|----------|--------|-------------------------------|--------|---------|-------------------------------|
|                               |   | 2009                   |     |   | 2008                          |   |    | 2007                          |   |   | 2009 |   |   | 2008 |   |   | 2007 |   |   | 2009 |   |   | 2008 |   |   | 2007 |
| Nevada      Region:                |   |                   |     |   |                          |   |    |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 1st      Commerce Bank             |   | $                      | (3,009   | )      |                          | $      | (1,158  | )                             |   | $ | (578 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Bank      of Las Vegas             |   |                   | (2,112   | )      |                          |   | 44      |                          |   |   | 608 |   |   |   |   |   |   | 0.51 | % |   |   | 6.77 | % |   |   |   |   |   | 0.06 | % |   |   | 0.83 | % |
| Black      Mountain Community Bank |   |                   | (1,305   | )      |                          |   | 2,001   |                          |   |   | 2,612 |   |   |   |   |   |   | 13.40 | % |   |   | 18.40 | % |   |   |   |   |   | 1.30 | % |   |   | 1.81 | % |
| Desert      Community Bank         |   |                   | (2,423   | )      |                          |   | 596     |                          |   |   | 1,296 |   |   |   |   |   |   | 5.87 | % |   |   | 13.54 | % |   |   |   |   |   | 0.58 | % |   |   | 1.35 | % |
| Red      Rock Community Bank       |   |                   | (5,435   | )      |                          |   | 660     |                          |   |   | 1,652 |   |   |   |   |   |   | 4.83 | % |   |   | 12.34 | % |   |   |   |   |   | 0.54 | % |   |   | 1.44 | % |
| Nevada      Region Total           |   |                   | (14,284  | )      |                          |   | 2,143   |                          |   |   | 5,590 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                               |   |                   |     |   |                          |   |    |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Northeast      Region:             |   |                   |     |   |                          |   |    |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| USNY      Bank                     |   |                   | (1,188   | )      |                          |   | (748    | )                             |   |   | (908 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                               |   |                   |     |   |                          |   |    |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Northwest      Region:             |   |                   |     |   |                          |   |    |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Bank      of Bellevue              |   |                   | (1,929   | )      |                          |   | (146    | )                             |   |   | (154 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Bank      of Everett               |   |                   | (2,670   | )      |                          |   | (956    | )                             |   |   | (636 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Bank      of Tacoma                |   |                   | (3,710   | )      |                          |   | (824    | )                             |   |   | (1,067 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| High      Desert Bank              |   |                   | (2,948   | )      |                          |   | (801    | )                             |   |   | (514 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Issaquah      Community Bank       |   |                   | (1,580   | )      |                          |   | (627    | )                             |   |   | (574 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Northwest      Region Total        |   |                   | (12,837  | )      |                          |   | (3,354  | )                             |   |   | (2,945 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                               |   |                   |     |   |                          |   |    |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Southeast      Region:             |   |                   |     |   |                          |   |    |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Bank      of Valdosta              |   |                   | (1,643   | )      |                          |   | (139    | )                             |   |   | (423 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Community      Bank of Rowan(3)    |   |                   | 459      |   |                          |   | 945     |                          |   |   | (183 | ) |   |   | 5.73 | % |   |   | 9.39 | % |   |   |   |   |   |   | 0.47 | % |   |   | 0.76 | % |   |   |   |   |   |
| First      Carolina State Bank     |   |                   | (1,885   | )      |                          |   | (403    | )                             |   |   | 539 |   |   |   |   |   |   |   |   |   |   |   | 4.52 | % |   |   |   |   |   |   |   |   |   |   | 0.53 | % |   |
| Peoples      State Bank            |   |                   | (2,320   | )      |                          |   | (72     | )                             |   |   | 254 |   |   |   |   |   |   |   |   |   |   |   | 5.14 | % |   |   |   |   |   |   |   |   |   |   | 0.93 | % |   |
| Pisgah      Community Bank(1)      |   |                   | (1,417   | )      |                          |   | (920    | )                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Sunrise      Bank of Atlanta       |   |                   | (4,239   | )      |                          |   | (554    | )                             |   |   | (338 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Southeast      Region Total        |   |                   | (11,045  | )      |                          |   | (1,143  | )                             |   |   | (151 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                               |   |                   |     |   |                          |   |    |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Texas      Region:                 |   |                   |     |   |                          |   |    |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Bank      of Fort Bend             |   |                   | (1,268   | )      |                          |   | (829    | )                             |   |   | (461 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Bank      of Las Colinas           |   |                   | (1,259   | )      |                          |   | (623    | )                             |   |   | (658 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Texas      Region Total            |   |                   | (2,527   | )      |                          |   | (1,452  | )                             |   |   | (1,119 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                               |   |                   |     |   |                          |   |    |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other,      net(6)                 |   |                   | (60,040  | )      |                          |   | (20,232 | )                             |   |   | (14,874 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                               |   |                   |     |   |                          |   |    |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Consolidated      totals           |   | $                      | (264,540 | )      |                          | $      | (52,451 | )                             |   | $ | 3,334 |   |   |   |   |   |   |   |   |   |   |   | 5.72 | % |   |   |   |   |   |   |   |   |   |   | 0.49 | % |

| (1) | Became      a Capitol affiliate in 2008 and is included for periods after addition to      the Capitol banking network.                                                                                                                                                                                                                                                                                                                                                                                         |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (2) | 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.                                 |
| (3) | Bank      of Santa Barbara, Community Bank of Rowan 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.                                                                           |
| (4) | 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 of the banks were either wholly-owned subsidiaries of Capitol or      majority-owned by a bank development subsidiary in which Capitol holds a      controlling interest. |
| (5) | Capitol      sold its ownership in Yuma Community Bank effective September 21,      2009.  The bank's operations are included in Capitol's      consolidated totals up to the date of the sale.                                                                                                                                                                                                                                                                                                       |
| (6) | Includes      corporate and other nonbankentities.                                                                                                                                                                                                                                                                                                                                                                                                                                                              |

----

----

----

|                                                                               |   | 2009   |        |   | 2008   |   |        | 2007   |
|------------------------------------------------------------------------------------|--------|--------|-------------|--------|--------|--------|-------------|--------|
|                                                                               |   |   |        |   |   |   |        |   |
| Legal      fees                                                                    |   | $      | 2,925       |   |   | $      | 1,400       |   |   | $ | 644 |
| Professional      fees                                                             |   |   | 2,814       |   |   |   | 1,637       |   |   |   | 1,824 |
| Loan      and collection expense                                                   |   |   | 2,650       |   |   |   | 1,990       |   |   |   | 1,952 |
| Bank      services (ATMs, telephone banking        and Internet banking) |   |   |  2,627 |   |   |   |  2,622 |   |   |   |  2,115 |
| Directors'      fees                                                               |   |   | 2,288       |   |   |   | 2,828       |   |   |   | 2,819 |
| Paper,      printing and supplies                                                  |   |   | 2,025       |   |   |   | 2,825       |   |   |   | 2,870 |
| Advertising                                                                        |   |   | 1,988       |   |   |   | 3,261       |   |   |   | 3,315 |
| Travel,      lodging and meals                                                     |   |   | 1,828       |   |   |   | 2,998       |   |   |   | 3,080 |
| Communications                                                                     |   |   | 1,728       |   |   |   | 2,197       |   |   |   | 1,728 |
| Insurance                                                                          |   |   | 1,361       |   |   |   | 629         |   |   |   | 473 |
| Postage                                                                            |   |   | 1,230       |   |   |   | 1,323       |   |   |   | 1,113 |
| Taxes      other than income taxes                                                 |   |   | 919         |   |   |   | 825         |   |   |   | 1,786 |
| Dues      and memberships                                                          |   |   | 859         |   |   |   | 974         |   |   |   | 928 |
| Courier      service                                                               |   |   | 711         |   |   |   | 902         |   |   |   | 997 |
| Contracted      labor                                                              |   |   | 285         |   |   |   | 426         |   |   |   | 496 |
| Other                                                                              |   |   | 15,195      |   |   |   | 10,974      |   |   |   | 8,951 |
| Total                                                                              |   | $      | 41,433      |   |   | $      | 37,811      |   |   | $ | 35,091 |

----

Capitol's Financial Position

| ·  | Loan      underwriting and documentation                                                                                                |
|--------------|----------------------------------------------------------------------------------------------------------------------------------------------|
| ·  | Credit      granting authorities within the bank                                                                                        |
| ·  | Acceptable      collateral and loan structuring                                                                                         |
| ·  | Loan      participations amongst other affiliates or other funding sources when      proposals exceed an individual bank's limitations  |
| ·  | Collections      and workouts                                                                                                           |
| ·  | Documenting      and evaluating the adequacy of the allowance for loan losses                                                           |
| ·  | 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 net worth                                                  |
| ·  | Historic      and projected cash flow data, including interest and vacancy rates      sensitivity analysis  |
| ·  | Character,      credit history and management ability                                                       |
| ·  | Appraisal      market valuation, local market conditions and volatility                                     |
| ·  | Proposed      use of the project and potential future uses of the    property                                    |

----

----

----

|                                   |   |  Total      Portfolio Loans |      |   | Allowance      forLoan      Losses |   |      | NonperformingLoans |   |   | Allowance      as a %of      Total PortfolioLoans |   |
|----------------------------------------|--------|----------------------------------|-----------|--------|------------------------------------|--------|-----------|--------------------|--------|--------|---------------------------------------------------|--------|
|                                   |   | 2009                             |      |   | 2008                               |   |      | 2009               |   |   | 2008                                              |   |   | 2009 |   |   | 2008 |   |   | 2009 |   |   | 2008 |   |
| Arizona      Region:                   |   |                             |      |   |                               |   |      |               |   |   |                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Bank      of Tucson                    |   | $                                | 168,809   |   |                               | $      | 168,390   |               |   | $      | 1,904                                             |   |   | $ | 1,550 |   |   | $ | 5,110 |   |   | $ | 2,462 |   |   |   | 1.13 | % |   |   | 0.92 | % |
| Central      Arizona Bank              |   |                             | 66,058    |   |                               |   | 69,372    |               |   |   | 3,389                                             |   |   |   | 1,339 |   |   |   | 3,132 |   |   |   | 1,895 |   |   |   | 5.13 | % |   |   | 1.93 | % |
| Southern      Arizona Community Bank   |   |                             | 79,190    |   |                               |   | 79,434    |               |   |   | 1,150                                             |   |   |   | 875 |   |   |   | 848 |   |   |   |   |   |   |   | 1.45 | % |   |   | 1.10 | % |
| Sunrise      Bank of Albuquerque       |   |                             | 61,077    |   |                               |   | 74,115    |               |   |   | 1,256                                             |   |   |   | 933 |   |   |   | 3,436 |   |   |   | 43 |   |   |   | 2.06 | % |   |   | 1.26 | % |
| Sunrise      Bank of Arizona(4)        |   |                             | 346,134   |   |                               |   | 452,934   |               |   |   | 17,382                                            |   |   |   | 8,387 |   |   |   | 32,929 |   |   |   | 36,488 |   |   |   | 5.02 | % |   |   | 1.85 | % |
| Yuma      Community Bank(5)            |   |                             |      |   |                               |   | 63,804    |               |   |   |                                              |   |   |   | 730 |   |   |   |   |   |   |   | 1,506 |   |   |   |   |   |   |   | 1.14 | % |
| Arizona      Region Total              |   |                             | 721,268   |   |                               |   | 908,049   |               |   |   | 25,081                                            |   |   |   | 13,814 |   |   |   | 45,455 |   |   |   | 42,394 |   |   |   | 3.48 | % |   |   | 1.52 | % |
|                                   |   |                             |      |   |                               |   |      |               |   |   |                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| California      Region:                |   |                             |      |   |                               |   |      |               |   |   |                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Bank      of Escondido                 |   |                             | 69,179    |   |                               |   | 62,608    |               |   |   | 1,777                                             |   |   |   | 810 |   |   |   | 2,047 |   |   |   | 817 |   |   |   | 2.57 | % |   |   | 1.29 | % |
| Bank      of Feather River             |   |                             | 26,941    |   |                               |   | 22,962    |               |   |   | 347                                               |   |   |   | 320 |   |   |   |   |   |   |   |   |   |   |   | 1.29 | % |   |   | 1.39 | % |
| Bank      of San Francisco             |   |                             | 74,782    |   |                               |   | 60,772    |               |   |   | 1,384                                             |   |   |   | 823 |   |   |   | 243 |   |   |   | 299 |   |   |   | 1.85 | % |   |   | 1.35 | % |
| Bank      of Santa Barbara(3)          |   |                             |      |   |                               |   | 60,535    |               |   |   |                                              |   |   |   | 1,138 |   |   |   |   |   |   |   | 1,841 |   |   |   |   |   |   |   | 1.88 | % |
| Napa      Community Bank               |   |                             | 139,497   |   |                               |   | 130,150   |               |   |   | 2,493                                             |   |   |   | 1,890 |   |   |   | 3,746 |   |   |   | 1,848 |   |   |   | 1.79 | % |   |   | 1.45 | % |
| Point      Loma Community Bank         |   |                             | 51,257    |   |                               |   | 52,497    |               |   |   | 1,256                                             |   |   |   | 797 |   |   |   | 1,742 |   |   |   | 795 |   |   |   | 2.45 | % |   |   | 1.52 | % |
| Sunrise      Bank of San Diego         |   |                             | 62,970    |   |                               |   | 76,282    |               |   |   | 2,486                                             |   |   |   | 1,048 |   |   |   | 4,362 |   |   |   | 1,444 |   |   |   | 3.95 | % |   |   | 1.37 | % |
| Sunrise      Community Bank            |   |                             | 31,276    |   |                               |   | 28,355    |               |   |   | 1,212                                             |   |   |   | 440 |   |   |   | 541 |   |   |   |   |   |   |   | 3.88 | % |   |   | 1.55 | % |
| California      Region Total           |   |                             | 455,902   |   |                               |   | 494,161   |               |   |   | 10,955                                            |   |   |   | 7,266 |   |   |   | 12,681 |   |   |   | 7,044 |   |   |   | 2.40 | % |   |   | 1.47 | % |
|                                   |   |                             |      |   |                               |   |      |               |   |   |                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Colorado      Region:                  |   |                             |      |   |                               |   |      |               |   |   |                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Fort      Collins Commerce Bank        |   |                             | 83,047    |   |                               |   | 74,280    |               |   |   | 1,308                                             |   |   |   | 1,101 |   |   |   | 1,291 |   |   |   | 48 |   |   |   | 1.58 | % |   |   | 1.48 | % |
| Larimer      Bank of Commerce          |   |                             | 79,239    |   |                               |   | 78,638    |               |   |   | 1,467                                             |   |   |   | 1,160 |   |   |   |   |   |   |   |   |   |   |   | 1.85 | % |   |   | 1.48 | % |
| Loveland      Bank of Commerce         |   |                             | 33,582    |   |                               |   | 27,251    |               |   |   | 560                                               |   |   |   | 652 |   |   |   | 156 |   |   |   | 1,090 |   |   |   | 1.67 | % |   |   | 2.39 | % |
| Mountain      View Bank of Commerce(1) |   |                             | 40,201    |   |                               |   | 32,180    |               |   |   | 621                                               |   |   |   | 474 |   |   |   |   |   |   |   |   |   |   |   | 1.54 | % |   |   | 1.47 | % |
| Colorado      Region Total             |   |                             | 236,069   |   |                               |   | 212,349   |               |   |   | 3,956                                             |   |   |   | 3,387 |   |   |   | 1,447 |   |   |   | 1,138 |   |   |   | 1.68 | % |   |   | 1.60 | % |
|                                   |   |                             |      |   |                               |   |      |               |   |   |                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Great      Lakes Region:               |   |                             |      |   |                               |   |      |               |   |   |                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Bank      of Auburn Hills              |   |                             | 30,463    |   |                               |   | 39,914    |               |   |   | 1,795                                             |   |   |   | 988 |   |   |   | 1,616 |   |   |   | 2,895 |   |   |   | 5.89 | % |   |   | 2.48 | % |
| Bank      of Maumee                    |   |                             | 40,269    |   |                               |   | 50,094    |               |   |   | 918                                               |   |   |   | 752 |   |   |   | 810 |   |   |   | 37 |   |   |   | 2.28 | % |   |   | 1.50 | % |
| Bank      of Michigan                  |   |                             | 64,374    |   |                               |   | 67,700    |               |   |   | 1,172                                             |   |   |   | 996 |   |   |   | 844 |   |   |   | 306 |   |   |   | 1.82 | % |   |   | 1.47 | % |
| Capitol      National Bank             |   |                             | 173,338   |   |                               |   | 213,392   |               |   |   | 7,920                                             |   |   |   | 8,341 |   |   |   | 21,346 |   |   |   | 12,828 |   |   |   | 4.57 | % |   |   | 3.91 | % |
| Elkhart      Community Bank            |   |                             | 71,483    |   |                               |   | 87,971    |               |   |   | 2,364                                             |   |   |   | 1,702 |   |   |   | 8,093 |   |   |   | 3,941 |   |   |   | 3.31 | % |   |   | 1.93 | % |
| Evansville      Commerce Bank          |   |                             | 44,179    |   |                               |   | 55,779    |               |   |   | 1,338                                             |   |   |   | 943 |   |   |   | 1,244 |   |   |   | 158 |   |   |   | 3.03 | % |   |   | 1.69 | % |
| Goshen      Community Bank             |   |                             | 61,568    |   |                               |   | 74,144    |               |   |   | 1,766                                             |   |   |   | 1,501 |   |   |   | 1,185 |   |   |   | 876 |   |   |   | 2.87 | % |   |   | 2.02 | % |
| Michigan      Commerce Bank(2)         |   |                             | 949,907   |   |                               |   | 1,127,348 |               |   |   | 48,349                                            |   |   |   | 30,258 |   |   |   | 110,870 |   |   |   | 63,092 |   |   |   | 5.09 | % |   |   | 2.68 | % |
| Ohio      Commerce Bank                |   |                             | 56,739    |   |                               |   | 48,207    |               |   |   | 910                                               |   |   |   | 723 |   |   |   | 206 |   |   |   |   |   |   |   | 1.60 | % |   |   | 1.50 | % |
| Paragon      Bank & Trust          |   |                             | 64,915    |   |                               |   | 87,651    |               |   |   | 3,809                                             |   |   |   | 2,990 |   |   |   | 5,320 |   |   |   | 6,447 |   |   |   | 5.87 | % |   |   | 3.41 | % |
| Great      Lakes Region Total          |   |                             | 1,557,235 |   |                               |   | 1,852,200 |               |   |   | 70,341                                            |   |   |   | 49,194 |   |   |   | 151,534 |   |   |   | 90,580 |   |   |   | 4.52 | % |   |   | 2.66 | % |
|                                   |   |                             |      |   |                               |   |      |               |   |   |                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Midwest      Region:                   |   |                             |      |   |                               |   |      |               |   |   |                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Adams      Dairy Bank(1)               |   |                             | 35,860    |   |                               |   | 28,834    |               |   |   | 655                                               |   |   |   | 450 |   |   |   |   |   |   |   |   |   |   |   | 1.83 | % |   |   | 1.56 | % |
| Bank      of Belleville                |   |                             | 58,510    |   |                               |   | 65,150    |               |   |   | 938                                               |   |   |   | 923 |   |   |   |   |   |   |   |   |   |   |   | 1.60 | % |   |   | 1.42 | % |
| Community      Bank of Lincoln         |   |                             | 44,864    |   |                               |   | 43,657    |               |   |   | 1,195                                             |   |   |   | 674 |   |   |   | 1,661 |   |   |   |   |   |   |   | 2.66 | % |   |   | 1.54 | % |
| Summit      Bank of Kansas City(3)     |   |                             |      |   |                               |   | 44,068    |               |   |   |                                              |   |   |   | 709 |   |   |   |   |   |   |   | 779 |   |   |   |   |   |   |   | 1.61 | % |
| Midwest      Region Total              |   |                             | 139,234   |   |                               |   | 181,709   |               |   |   | 2,788                                             |   |   |   | 2,756 |   |   |   | 1,661 |   |   |   | 779 |   |   |   | 2.00 | % |   |   | 1.52 | % |
|                                   |   |                             |      |   |                               |   |      |               |   |   |                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Nevada      Region:                    |   |                             |      |   |                               |   |      |               |   |   |                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 1st      Commerce Bank                 |   |                             | 33,482    |   |                               |   | 30,663    |               |   |   | 1,910                                             |   |   |   | 740 |   |   |   | 7,531 |   |   |   | 1,000 |   |   |   | 5.71 | % |   |   | 2.41 | % |
| Bank      of Las Vegas                 |   |                             | 59,004    |   |                               |   | 64,648    |               |   |   | 1,715                                             |   |   |   | 901 |   |   |   | 9,906 |   |   |   | 4,399 |   |   |   | 2.91 | % |   |   | 1.39 | % |
| Black      Mountain Community Bank     |   |                             | 140,442   |   |                               |   | 143,654   |               |   |   | 3,994                                             |   |   |   | 1,765 |   |   |   | 21,423 |   |   |   | 1,722 |   |   |   | 2.84 | % |   |   | 1.23 | % |
| Desert      Community Bank             |   |                             | 81,033    |   |                               |   | 87,388    |               |   |   | 2,900                                             |   |   |   | 943 |   |   |   | 12,259 |   |   |   | 3,671 |   |   |   | 3.58 | % |   |   | 1.08 | % |
| Red      Rock Community Bank           |   |                             | 89,806    |   |                               |   | 110,143   |               |   |   | 3,343                                             |   |   |   | 1,200 |   |   |   | 15,631 |   |   |   | 5,488 |   |   |   | 3.72 | % |   |   | 1.09 | % |
| Nevada      Region Total               |   |                             | 403,767   |   |                               |   | 436,496   |               |   |   | 13,862                                            |   |   |   | 5,549 |   |   |   | 66,750 |   |   |   | 16,280 |   |   |   | 3.43 | % |   |   | 1.27 | % |
|                                   |   |                             |      |   |                               |   |      |               |   |   |                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Northeast      Region:                 |   |                             |      |   |                               |   |      |               |   |   |                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| USNY      Bank                         |   |                             | 57,849    |   |                               |   | 43,471    |               |   |   | 905                                               |   |   |   | 680 |   |   |   |   |   |   |   |   |   |   |   | 1.56 | % |   |   | 1.56 | % |

----

|                            |   |  Total      Portfolio Loans |      |   | Allowance      forLoan      Losses |   |      | NonperformingLoans |   |   | Allowance      as a %of      Total PortfolioLoans |   |
|---------------------------------|--------|----------------------------------|-----------|--------|------------------------------------|--------|-----------|--------------------|--------|--------|---------------------------------------------------|--------|
|                            |   | 2009                             |      |   | 2008                               |   |      | 2009               |   |   | 2008                                              |   |   | 2009 |   |   | 2008 |   |   | 2009 |   |   | 2008 |   |
| Northwest      Region:          |   |                             |      |   |                               |   |      |               |   |   |                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Bank      of Bellevue           |   | $                                | 39,896    |   |                               | $      | 48,838    |               |   | $      | 1,337                                             |   |   | $ | 850 |   |   | $ | 2,473 |   |   | $ | 170 |   |   |   | 3.35 | % |   |   | 1.74 | % |
| Bank      of Everett            |   |                             | 35,311    |   |                               |   | 32,735    |               |   |   | 1,677                                             |   |   |   | 686 |   |   |   | 4,292 |   |   |   | 92 |   |   |   | 4.75 | % |   |   | 2.10 | % |
| Bank      of Tacoma             |   |                             | 31,165    |   |                               |   | 40,175    |               |   |   | 1,382                                             |   |   |   | 770 |   |   |   | 1,534 |   |   |   | 1,183 |   |   |   | 4.43 | % |   |   | 1.92 | % |
| High      Desert Bank           |   |                             | 34,203    |   |                               |   | 35,407    |               |   |   | 805                                               |   |   |   | 624 |   |   |   | 644 |   |   |   |   |   |   |   | 2.35 | % |   |   | 1.76 | % |
| Issaquah      Community Bank    |   |                             | 28,297    |   |                               |   | 24,238    |               |   |   | 589                                               |   |   |   | 385 |   |   |   | 1,315 |   |   |   |   |   |   |   | 2.08 | % |   |   | 1.59 | % |
| Northwest      Region Total     |   |                             | 168,872   |   |                               |   | 181,393   |               |   |   | 5,790                                             |   |   |   | 3,315 |   |   |   | 10,258 |   |   |   | 1,445 |   |   |   | 3.43 | % |   |   | 1.83 | % |
|                            |   |                             |      |   |                               |   |      |               |   |   |                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Southeast      Region:          |   |                             |      |   |                               |   |      |               |   |   |                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Bank      of Valdosta           |   |                             | 42,052    |   |                               |   | 51,629    |               |   |   | 1,002                                             |   |   |   | 835 |   |   |   | 1,186 |   |   |   |   |   |   |   | 2.38 | % |   |   | 1.62 | % |
| Community      Bank of Rowan(3) |   |                             |      |   |                               |   | 109,290   |               |   |   |                                              |   |   |   | 1,634 |   |   |   |   |   |   |   | 1,688 |   |   |   |   |   |   |   | 1.50 | % |
| First      Carolina State Bank  |   |                             | 90,919    |   |                               |   | 97,670    |               |   |   | 1,554                                             |   |   |   | 1,312 |   |   |   | 6,161 |   |   |   | 2,421 |   |   |   | 1.71 | % |   |   | 1.34 | % |
| Peoples      State Bank         |   |                             | 18,706    |   |                               |   | 21,314    |               |   |   | 539                                               |   |   |   | 366 |   |   |   | 1,075 |   |   |   | 937 |   |   |   | 2.88 | % |   |   | 1.72 | % |
| Pisgah      Community Bank(1)   |   |                             | 45,094    |   |                               |   | 27,746    |               |   |   | 1,168                                             |   |   |   | 475 |   |   |   | 401 |   |   |   | 100 |   |   |   | 2.59 | % |   |   | 1.71 | % |
| Sunrise      Bank of Atlanta    |   |                             | 43,167    |   |                               |   | 52,763    |               |   |   | 2,611                                             |   |   |   | 1,063 |   |   |   | 5,667 |   |   |   | 269 |   |   |   | 6.05 | % |   |   | 2.01 | % |
| Southeast      Region Total     |   |                             | 239,938   |   |                               |   | 360,412   |               |   |   | 6,874                                             |   |   |   | 5,685 |   |   |   | 14,490 |   |   |   | 5,415 |   |   |   | 2.87 | % |   |   | 1.58 | % |
|                            |   |                             |      |   |                               |   |      |               |   |   |                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Texas      Region:              |   |                             |      |   |                               |   |      |               |   |   |                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Bank      of Fort Bend          |   |                             | 29,215    |   |                               |   | 19,859    |               |   |   | 485                                               |   |   |   | 305 |   |   |   |   |   |   |   |   |   |   |   | 1.66 | % |   |   | 1.54 | % |
| Bank      of Las Colinas        |   |                             | 34,725    |   |                               |   | 29,657    |               |   |   | 731                                               |   |   |   | 435 |   |   |   |   |   |   |   |   |   |   |   | 2.11 | % |   |   | 1.47 | % |
| Texas      Region Total         |   |                             | 63,940    |   |                               |   | 49,516    |               |   |   | 1,216                                             |   |   |   | 740 |   |   |   |   |   |   |   |   |   |   |   | 1.90 | % |   |   | 1.49 | % |
|                            |   |                             |      |   |                               |   |      |               |   |   |                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other,      net                 |   |                             | 3,027     |   |                               |   | 15,473    |               |   |   | 2,896                                             |   |   |   | 654 |   |   |   | 3,241 |   |   |   | 5,135 |   |   |   | 95.67 | % |   |   | 4.23 | % |
|                            |   |                             |      |   |                               |   |      |               |   |   |                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Consolidated      totals        |   | $                                | 4,047,101 |   |                               | $      | 4,735,229 |               |   | $      | 144,664                                           |   |   | $ | 93,040 |   |   | $ | 307,517 |   |   | $ | 170,210 |   |   |   | 3.57 | % |   |   | 1.96 | % |

| (1) | Became      a Capitol affiliate in 2008 and is included for periods after addition to      the Capitol banking network.                                                                                                                                                                                                                                                                                                                                                                                         |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (2) | 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.                                 |
| (3) | Bank      of Santa Barbara, Community Bank of Rowan 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.                                                                           |
| (4) | 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 of the banks were either wholly-owned subsidiaries of Capitol or      majority-owned by a bank development subsidiary in which Capitol holds a      controlling interest. |
| (5) | Capitol      sold its ownership in Yuma Community Bank effective September 21,      2009.  The bank's operations are included in Capitol's      consolidated totals up to the date ofsale.                                                                                                                                                                                                                                                                                                            |

----

----

----

Liquidity, Capital Resources and CapitalAdequacy

----

|                                                                    |   |     |         |   | Payments      Due by Period |
|-------------------------------------------------------------------------|--------|----------|--------------|--------|-----------------------------|
|                                                                    |   | Total(1) |         |   | Within1      Year           |   |   | Within1-3      Years |   |   | Within3-5      Years |   |   | After5      Years |
|                                                                    |   |     |         |   |                        |   |   |   |   |   |   |   |   |   |
| Deposits      without a stated         maturity          |   | $        | 1,981,441    |   |                        | $ | 1,981,441 |   |   |   |   |   |   |   |   |   |
| Time      deposits                                                      |   |     | 2,429,192    |   |                        |   | 1,866,810 |   |   | $ | 514,254 |   |   | $ | 47,752 |   |   | $ | 376 |
| Debt      obligations                                                   |   |     | 276,159      |   |                        |   | 172,967 |   |   |   | 70,702 |   |   |   | 22,200 |   |   |   | 10,290 |
| Rent      commitments under         noncancelable leases |   |     |  71,969 |   |                        |   |  11,602 |   |   |   |  22,129 |   |   |   |  15,931 |   |   |   |  22,307 |
| Subordinated      debentures                                            |   |     | 167,441      |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   | 167,441 |
|                                                                    |   |     |         |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                                                                   |   | $        | 4,926,202    |   |                        | $ | 4,032,820 |   |   | $ | 607,085 |   |   | $ | 85,883 |   |   | $ | 200,414 |

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

----

| ·  | Equity;      and                                                   |
|--------------|--------------------------------------------------------------------|
| ·  | Trust-preferred      securities and related subordinateddebentures |

----

----

----

|                                  |   |                             |   |   | Tier      1 Risk-Based   |   |   | Total      Risk-Based    |   |   |                              |
|---------------------------------------|--------|----------------------------------|--------|--------|--------------------------|--------|--------|--------------------------|--------|--------|-----------------------------------|
|                                  |   | Tier      1 Leverage Ratio(1)(5) |   |   | Capital      Ratio(1)(5) |   |   | Capital      Ratio(2)(5) |   |   | Regulatory      Classification(3) |
|                                  |   | 2009                             |   |   | 2008                     |   |   | 2009                     |   |   | 2008                              |   |   | 2009 |   |   | 2008 |   |   | 2009 |   | 2008 |
| Arizona      Region:                  |   |                             |   |   |                     |   |   |                     |   |   |                              |   |   |   |   |   |   |   |   |   |   |   |
| Bank      of Tucson                   |   |                             | 9.67   | %      |                     |   | 9.53   | %                        |   |   | 10.78                             | % |   |   | 9.41 | % |   |   | 11.86 | % |   |   | 10.26 | % |   | well-capitalized |   | well-capitalized |
| Central      Arizona Bank             |   |                             | 5.13   | %      |                     |   | 13.38  | %                        |   |   | 7.13                              | % |   |   | 13.02 | % |   |   | 8.42 | % |   |   | 14.27 | % |   | adequately-capitalized |   | well-capitalized |
| Southern      Arizona CommunityBank   |   |                             | 9.47   | %      |                     |   | 9.14   | %                        |   |   | 11.03                             | % |   |   | 10.15 | % |   |   | 12.28 | % |   |   | 11.22 | % |   |  well-capitalized |   |  well-capitalized |
| Sunrise      Bank of Albuquerque      |   |                             | 6.27   | %      |                     |   | 8.50   | %                        |   |   | 8.07                              | % |   |   | 9.08 | % |   |   | 9.33 | % |   |   | 10.33 | % |   | adequately-capitalized(8) |   | well-capitalized |
| Sunrise      Bank of Arizona(7)       |   |                             | 3.62   | %      |                     |   | 8.73   | %                        |   |   | 5.01                              | % |   |   | 9.38 | % |   |   | 6.30 | % |   |   | 10.41 | % |   | under-capitalized(8) |   | well-capitalized |
|                                  |   |                             |   |   |                     |   |   |                     |   |   |                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| California      Region:               |   |                             |   |   |                     |   |   |                     |   |   |                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Bank      of Escondido                |   |                             | 9.55   | %      |                     |   | 11.29  | %                        |   |   | 13.98                             | % |   |   | 15.50 | % |   |   | 15.24 | % |   |   | 16.66 | % |   | well-capitalized |   | well-capitalized |
| Bank      of Feather River(4)         |   |                             | 18.59  | %      |                     |   | 25.72  | %                        |   |   | 25.84                             | % |   |   | 27.12 | % |   |   | 27.09 | % |   |   | 28.37 | % |   | well-capitalized |   | well-capitalized |
| Bank      of San Francisco            |   |                             | 9.12   | %      |                     |   | 11.04  | %                        |   |   | 10.37                             | % |   |   | 11.53 | % |   |   | 11.63 | % |   |   | 12.78 | % |   | well-capitalized |   | well-capitalized |
| Napa      Community Bank              |   |                             | 9.82   | %      |                     |   | 11.06  | %                        |   |   | 10.48                             | % |   |   | 10.79 | % |   |   | 11.74 | % |   |   | 12.04 | % |   | well-capitalized |   | well-capitalized |
| Point      Loma Community Bank        |   |                             | 7.97   | %      |                     |   | 11.11  | %                        |   |   | 10.57                             | % |   |   | 12.78 | % |   |   | 11.83 | % |   |   | 14.04 | % |   | well-capitalized |   | well-capitalized |
| Sunrise      Bank of San Diego        |   |                             | 7.32   | %      |                     |   | 10.27  | %                        |   |   | 9.61                              | % |   |   | 11.12 | % |   |   | 10.90 | % |   |   | 12.38 | % |   | well-capitalized |   | well-capitalized |
| Sunrise      Community Bank(4)        |   |                             | 7.27   | %      |                     |   | 14.39  | %                        |   |   | 10.82                             | % |   |   | 18.07 | % |   |   | 12.11 | % |   |   | 19.32 | % |   | well-capitalized |   | well-capitalized |
|                                  |   |                             |   |   |                     |   |   |                     |   |   |                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Colorado      Region:                 |   |                             |   |   |                     |   |   |                     |   |   |                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Fort      Collins Commerce Bank       |   |                             | 10.35  | %      |                     |   | 12.48  | %                        |   |   | 11.77                             | % |   |   | 12.98 | % |   |   | 13.03 | % |   |   | 14.23 | % |   | well-capitalized |   | well-capitalized |
| Larimer      Bank of Commerce(4)      |   |                             | 8.70   | %      |                     |   | 8.95   | %                        |   |   | 10.96                             | % |   |   | 9.83 | % |   |   | 12.22 | % |   |   | 11.08 | % |   | well-capitalized |   | well-capitalized |
| Loveland      Bank of Commerce(4)     |   |                             | 15.48  | %      |                     |   | 21.48  | %                        |   |   | 18.01                             | % |   |   | 24.66 | % |   |   | 19.26 | % |   |   | 25.92 | % |   | well-capitalized |   | well-capitalized |
| Mountain      View Bank ofCommerce(4) |   |                             | 14.20  | %      |                     |   | 20.81  | %                        |   |   | 17.99                             | % |   |   | 20.53 | % |   |   | 19.24 | % |   |   | 21.78 | % |   |  well-capitalized |   |  well-capitalized |
|                                  |   |                             |   |   |                     |   |   |                     |   |   |                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Great      Lakes Region:              |   |                             |   |   |                     |   |   |                     |   |   |                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Bank      of Auburn Hills             |   |                             | 5.93   | %      |                     |   | 11.05  | %                        |   |   | 6.90                              | % |   |   | 12.64 | % |   |   | 8.20 | % |   |   | 13.90 | % |   | adequately-capitalized |   | well-capitalized |
| Bank      of Maumee(4)                |   |                             | 8.50   | %      |                     |   | 10.47  | %                        |   |   | 10.42                             | % |   |   | 11.54 | % |   |   | 11.68 | % |   |   | 12.79 | % |   | well-capitalized |   | well-capitalized |
| Bank      of Michigan                 |   |                             | 7.11   | %      |                     |   | 9.15   | %                        |   |   | 11.19                             | % |   |   | 9.76 | % |   |   | 12.44 | % |   |   | 11.01 | % |   | well-capitalized |   | well-capitalized |
| Capitol      National Bank            |   |                             | 6.45   | %      |                     |   | 7.95   | %                        |   |   | 8.15                              | % |   |   | 8.96 | % |   |   | 9.44 | % |   |   | 10.24 | % |   | adequately-capitalized(8) |   | well-capitalized |
| Elkhart      Community Bank           |   |                             | 5.03   | %      |                     |   | 7.71   | %                        |   |   | 6.94                              | % |   |   | 8.82 | % |   |   | 8.22 | % |   |   | 10.08 | % |   | adequately-capitalized(8) |   | well-capitalized |
| Evansville      Commerce Bank(4)      |   |                             | 8.01   | %      |                     |   | 8.13   | %                        |   |   | 11.28                             | % |   |   | 9.81 | % |   |   | 12.55 | % |   |   | 11.07 | % |   | well-capitalized |   | well-capitalized |
| Goshen      Community Bank            |   |                             | 8.11   | %      |                     |   | 7.96   | %                        |   |   | 10.81                             | % |   |   | 8.96 | % |   |   | 12.08 | % |   |   | 10.21 | % |   | adequately-capitalized(8) |   | well-capitalized |
| Michigan      Commerce Bank(6)        |   |                             | 4.03   | %      |                     |   | 10.75  | %                        |   |   | 5.00                              | % |   |   | 10.70 | % |   |   | 6.30 | % |   |   | 12.19 | % |   | under-capitalized(8) |   | well-capitalized |
| Ohio      Commerce Bank(4)            |   |                             | 13.57  | %      |                     |   | 15.29  | %                        |   |   | 16.16                             | % |   |   | 17.14 | % |   |   | 17.41 | % |   |   | 18.39 | % |   | well-capitalized |   | well-capitalized |
| Paragon      Bank & Trust         |   |                             | 4.91   | %      |                     |   | 8.09   | %                        |   |   | 7.07                              | % |   |   | 8.99 | % |   |   | 8.37 | % |   |   | 10.27 | % |   | adequately-capitalized(8) |   | well-capitalized |
|                                  |   |                             |   |   |                     |   |   |                     |   |   |                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Midwest      Region:                  |   |                             |   |   |                     |   |   |                     |   |   |                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Adams      Dairy Bank(4)              |   |                             | 16.30  | %      |                     |   | 22.19  | %                        |   |   | 21.04                             | % |   |   | 25.01 | % |   |   | 22.00 | % |   |   | 26.27 | % |   | well-capitalized |   | well-capitalized |
| Bank      of Belleville               |   |                             | 8.90   | %      |                     |   | 8.68   | %                        |   |   | 11.81                             | % |   |   | 9.51 | % |   |   | 13.06 | % |   |   | 10.76 | % |   | well-capitalized |   | well-capitalized |
| Community      Bank of Lincoln(4)     |   |                             | 9.11   | %      |                     |   | 13.68  | %                        |   |   | 12.82                             | % |   |   | 15.14 | % |   |   | 14.09 | % |   |   | 16.39 | % |   | well-capitalized |   | well-capitalized |
|                                  |   |                             |   |   |                     |   |   |                     |   |   |                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Nevada      Region:                   |   |                             |   |   |                     |   |   |                     |   |   |                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 1st      Commerce Bank(4)             |   |                             | 7.08   | %      |                     |   | 10.03  | %                        |   |   | 8.89                              | % |   |   | 16.02 | % |   |   | 10.20 | % |   |   | 17.28 | % |   | well-capitalized |   | well-capitalized |
| Bank      of Las Vegas                |   |                             | 5.08   | %      |                     |   | 8.78   | %                        |   |   | 6.25                              | % |   |   | 9.47 | % |   |   | 7.51 | % |   |   | 10.72 | % |   | under-capitalized |   | well-capitalized |
| Black      Mountain CommunityBank     |   |                             | 6.73   | %      |                     |   | 8.45   | %                        |   |   | 8.50                              | % |   |   | 9.10 | % |   |   | 9.77 | % |   |   | 10.31 | % |   |  adequately-capitalized |   |  well-capitalized |
| Desert      Community Bank            |   |                             | 5.78   | %      |                     |   | 8.21   | %                        |   |   | 7.18                              | % |   |   | 9.58 | % |   |   | 8.45 | % |   |   | 10.65 | % |   | adequately-capitalized |   | well-capitalized |
| Red      Rock Community Bank          |   |                             | 3.80   | %      |                     |   | 8.52   | %                        |   |   | 5.62                              | % |   |   | 9.39 | % |   |   | 6.90 | % |   |   | 10.45 | % |   | under-capitalized |   | well-capitalized |
|                                  |   |                             |   |   |                     |   |   |                     |   |   |                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Northeast      Region:                |   |                             |   |   |                     |   |   |                     |   |   |                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| USNY      Bank(4)                     |   |                             | 8.30   | %      |                     |   | 11.72  | %                        |   |   | 9.67                              | % |   |   | 12.45 | % |   |   | 10.93 | % |   |   | 13.70 | % |   | well-capitalized |   | well-capitalized |
|                                  |   |                             |   |   |                     |   |   |                     |   |   |                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Northwest      Region:                |   |                             |   |   |                     |   |   |                     |   |   |                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Bank      of Bellevue                 |   |                             | 8.91   | %      |                     |   | 10.93  | %                        |   |   | 12.54                             | % |   |   | 11.99 | % |   |   | 13.81 | % |   |   | 13.25 | % |   | well-capitalized |   | well-capitalized |
| Bank      of Everett(4)               |   |                             | 7.79   | %      |                     |   | 11.98  | %                        |   |   | 10.28                             | % |   |   | 14.30 | % |   |   | 11.58 | % |   |   | 15.56 | % |   | well-capitalized |   | well-capitalized |
| Bank      of Tacoma(4)                |   |                             | 6.91   | %      |                     |   | 13.54  | %                        |   |   | 9.28                              | % |   |   | 12.86 | % |   |   | 10.57 | % |   |   | 14.12 | % |   | adequately-capitalized(8) |   | well-capitalized |
| High      Desert Bank(4)              |   |                             | 8.45   | %      |                     |   | 15.86  | %                        |   |   | 11.28                             | % |   |   | 17.29 | % |   |   | 12.55 | % |   |   | 18.54 | % |   | adequately-capitalized(8) |   | well-capitalized |
| Issaquah      Community Bank(4)       |   |                             | 15.16  | %      |                     |   | 23.27  | %                        |   |   | 20.75                             | % |   |   | 26.08 | % |   |   | 22.01 | % |   |   | 27.33 | % |   | well-capitalized |   | well-capitalized |

----

|                            |   |                             |   |   | Tier      1 Risk-Based   |   |   | Total      Risk-Based    |   |   |                              |   |   |
|---------------------------------|--------|----------------------------------|--------|--------|--------------------------|--------|--------|--------------------------|--------|--------|-----------------------------------|--------|--------|
|                            |   | Tier      1 Leverage Ratio(1)(5) |   |   | Capital      Ratio(1)(5) |   |   | Capital      Ratio(2)(5) |   |   | Regulatory      Classification(3) |
|                            |   | 2009                             |   |   | 2008                     |   |   | 2009                     |   |   | 2008                              |   |   | 2009 |   |   | 2008 |   |   | 2009 |   | 2008 |
| Southeast      Region:          |   |                             |   |   |                     |   |   |                     |   |   |                              |   |   |   |   |   |   |   |   |   |   |   |
| Bank      of Valdosta(4)        |   |                             | 7.12   | %      |                     |   | 8.01   | %                        |   |   | 11.19                             | %      |   |   | 10.32 | % |   |   | 12.46 | % |   |   | 11.58 | % |   | adequately-capitalized(8) |   | well-capitalized |
| First      Carolina State Bank  |   |                             | 7.08   | %      |                     |   | 8.61   | %                        |   |   | 9.18                              | %      |   |   | 9.69 | % |   |   | 10.44 | % |   |   | 10.94 | % |   | well-capitalized |   | well-capitalized |
| Peoples      State Bank         |   |                             | 8.67   | %      |                     |   | 8.15   | %                        |   |   | 13.07                             | %      |   |   | 10.40 | % |   |   | 14.34 | % |   |   | 11.65 | % |   | well-capitalized |   | well-capitalized |
| Pisgah      Community Bank(4)   |   |                             | 10.17  | %      |                     |   | 22.86  | %                        |   |   | 14.39                             | %      |   |   | 25.11 | % |   |   | 15.66 | % |   |   | 26.37 | % |   | well-capitalized |   | well-capitalized |
| Sunrise      Bank of Atlanta(4) |   |                             | 3.92   | %      |                     |   | 8.19   | %                        |   |   | 4.91                              | %      |   |   | 9.78 | % |   |   | 6.22 | % |   |   | 11.04 | % |   | under-capitalized |   | well-capitalized |
|                            |   |                             |   |   |                     |   |   |                     |   |   |                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Texas      Region:              |   |                             |   |   |                     |   |   |                     |   |   |                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Bank      of Fort Bend(4)       |   |                             | 16.05  | %      |                     |   | 23.19  | %                        |   |   | 19.76                             | %      |   |   | 28.46 | % |   |   | 21.01 | % |   |   | 29.71 | % |   | well-capitalized |   | well-capitalized |
| Bank      of Las Colinas(4)     |   |                             | 12.56  | %      |                     |   | 19.54  | %                        |   |   | 16.54                             | %      |   |   | 22.08 | % |   |   | 17.81 | % |   |   | 23.33 | % |   | well-capitalized |   | well-capitalized |
|                            |   |                             |   |   |                     |   |   |                     |   |   |                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Consolidated      totals        |   |                             | 4.61   | %      |                     |   | 10.72  | %                        |   |   | 5.99                              | %      |   |   | 12.07 | % |   |   | 9.46 | % |   |   | 13.75 | % |   | adequately-capitalized |   | well-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 at least 8%.                                                                                                                                                                                                                                    |
| (4) | De novo institution      which is subject to higher minimum ratio requirements as noted in (1)      above for the first seven years of operations.                                                                                                                                                                                                                                                                                                                                                            |
| (5) | Ratios      are per the regulatory call reports and Y9-C filed at original due date      which is generally within 30 days after quarter-end.                                                                                                                                                                                                                                                                                                                                                                 |
| (6) | 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.                               |
| (7) | 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 of the banks were either wholly-owned subsidiaries of Capitol or      majority-owned by bank development subsidiary in which Capitol holds a      controlling interest. |
| (8) | Institution      is subject to a regulatory agreement and, accordingly, cannot be      classified at a level higher than  adequately-capitalized.                                                                                                                                                                                                                                                                                                                                                             |

Certain Regulatory Matters

----

----

Trends Affecting Operations

Quantitative and Qualitative Disclosure AboutMarket Risk

----

|                                                                            |   | Interest      Rate Sensitivity  |       |   |               |
|---------------------------------------------------------------------------------|--------|--------------------------------------|------------|--------|--------------------|
|                                                                            |   | 0      to 3Months                    |       |   | 4      to 12Months |   |   | 1      to 5Years |   |   | Over      5Years |   |   | Total |
| ASSETS                                                                          |   |                                 |       |   |               |   |   |   |   |   |   |   |   |   |
| Money      market and interest-bearing deposits                                 |   | $                                    | 678,374    |   |               | $ | 15,033 |   |   | $ | 5,475 |   |   |   |   |   | $ | 698,882 |
| Federal      funds sold                                                         |   |                                 | 21,851     |   |               |   |   |   |   |   |   |   |   |   |   |   |   | 21,851 |
| Loans      held for sale                                                        |   |                                 | 16,132     |   |               |   |   |   |   |   |   |   |   |   |   |   |   | 16,132 |
| Investment      securities                                                      |   |                                 | 32,331     |   |               |   | 7,972 |   |   |   | 4,719 |   |   | $ | 26,321 |   |   |   | 71,343 |
| Portfolio      loans                                                            |   |                                 | 1,569,941  |   |               |   | 496,595 |   |   |   | 1,744,685 |   |   |   | 235,880 |   |   |   | 4,047,101 |
| Nonearning      assets                                                          |   |                                 |       |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   | 276,631 |
|                                                                            |   |                                 |       |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total      assets                                                               |   | $                                    | 2,318,629  |   |               | $ | 519,600 |   |   | $ | 1,754,879 |   |   | $ | 262,201 |   |   | $ | 5,131,940 |
|                                                                            |   |                                 |       |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| LIABILITIES      AND EQUITY                                                     |   |                                 |       |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing      deposits:                                                 |   |                                 |       |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Time      deposits under $100,000                                               |   | $                                    | 221,598    |   |               | $ | 490,195 |   |   | $ | 230,015 |   |   | $ | 495 |   |   | $ | 942,303 |
| Time      deposits $100,000 and over                                            |   |                                 | 435,642    |   |               |   | 719,375 |   |   |   | 331,871 |   |   |   |   |   |   |   | 1,486,889 |
| All      other interest-bearing deposits                                        |   |                                 | 658,959    |   |               |   | 215,048 |   |   |   | 60,216 |   |   |   | 368,119 |   |   |   | 1,302,341 |
| Total      interest-bearing deposits                                            |   |                                 | 1,316,199  |   |               |   | 1,424,618 |   |   |   | 622,102 |   |   |   | 368,614 |   |   |   | 3,731,533 |
| Notes      payable and short-term borrowings                                    |   |                                 | 97,073     |   |               |   | 89,904 |   |   |   | 78,891 |   |   |   | 10,290 |   |   |   | 276,159 |
| Subordinated      debentures                                                    |   |                                 | 68,000     |   |               |   |   |   |   |   | 33,000 |   |   |   | 69,841 |   |   |   | 170,841 |
| Noninterest-bearing      liabilities                                            |   |                                 |       |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   | 719,801 |
| Total      liabilities                                                          |   |                                 |       |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   | 4,898,334 |
| Equity:                                                                         |   |                                 |       |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Capitol      Bancorp stockholders' equity                                       |   |                                 |       |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   | 161,335 |
| Noncontrolling      interests in consolidatedsubsidiaries                       |   |                                 |       |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |  72,271 |
| Total      equity                                                               |   |                                 |       |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   | 233,606 |
|                                                                            |   |                                 |       |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total      liabilities and equity                                               |   | $                                    | 1,481,272  |   |               | $ | 1,514,522 |   |   | $ | 733,993 |   |   | $ | 448,745 |   |   | $ | 5,131,940 |
|                                                                            |   |                                 |       |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest      rate sensitive period gap                                         |   | $                                    | 837,357    |   |               | $ | (994,922 | ) |   | $ | 1,020,886 |   |   |   | (186,544 | ) |   |   |   |
|                                                                            |   |                                 |       |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest      rate sensitive cumulative gap                                     |   | $                                    | 837,357    |   |               | $ | (157,565 | ) |   | $ | 863,321 |   |   | $ | 676,777 |   |   |   |   |
|                                                                            |   |                                 |       |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Period      rate sensitive assets/period ratesensitive      liabilities         |   |                                 |  1.57 |   |               |   |  0.34 |   |   |   |  2.39 |   |   |   |  0.58 |   |   |   |   |
| Cumulative      rate sensitive assets/cumulativerate      sensitive liabilities |   |                                 |  1.57 |   |               |   |  0.95 |   |   |   |  1.23 |   |   |   |  1.16 |   |   |   |   |
| Cumulative      gap to total assets                                             |   |                                 | 16.31      | %      |               |   | (3.07 | )% |   |   | 16.82 | % |   |   | 13.19 | % |   |   |   |

----

|                     |   | Pro      Forma    |    |   |                               |   |    |                           |
|--------------------------|--------|------------------------|---------|--------|------------------------------------|--------|---------|--------------------------------|
|                     |   | Assuming      No  |    |   | Pro      Forma Effect of      |   |    | Pro      Forma Effect of  |
|                     |   | Change      in    |    |   | Interest      Rate Increases  |   |    | Interest      Rate Decreases   |
|                     |   | Interest      Rates    |    |   | +100      bp                       |   |    | +200      bp                   |   |   | -100      bp |   |   | -200      bp |
|                     |   |                   |    |   |                               |   |    |                           |   |   |   |   |   |   |
| Interest      income     |   | $                      | 244,873 |   |                               | $      | 263,168 |                           |   | $ | 282,309 |   |   | $ | 233,345 |   |   | $ | 221,857 |
| Interest      expense    |   |                   | 90,388  |   |                               |   | 111,743 |                           |   |   | 133,091 |   |   |   | 72,899 |   |   |   | 62,717 |
|                     |   |                   |    |   |                               |   |    |                           |   |   |   |   |   |   |   |   |   |   |   |
| Net      interest income |   | $                      | 154,485 |   |                               | $      | 151,425 |                           |   | $ | 149,218 |   |   | $ | 160,446 |   |   | $ | 159,140 |

----

----

Proposed Spin-off of Michigan Commerce BancorpLimited

Sales of Banks and Pending Divestitures

----

Critical Accounting Policies Affecting Capitol'sFinancial Statements

Use ofEstimates in Determining the Allowance for LoanLosses.

----

Accountingfor Goodwill and Other Intangibles.

----

----

| Entity                               |   | RecordedGoodwill      as ofNovember      30,2009 |   |   | Estimated      EntityFair      Valueas      Percentage ofBook      Value |   | Did      EntityPassStep      One ofImpairmentTest? |
|--------------------------------------|--------|--------------------------------------------------|--------|--------|--------------------------------------------------------------------------|--------|----------------------------------------------------|
|                                 |   | (in      $1,000s)                                |   |   |                                                                     |   |                                               |
|                                 |   |                                             |   |   |                                                                     |   |                                               |
| Bank      of Escondido               |   | $                                                | 2,806  |   |                                                                     |   | 52.73                                              | % | No |
| Bank      of Las Vegas               |   |                                             | 1,800  |   |                                                                     |   | 43.30                                              | % | No |
| Black      Mountain Community Bank   |   |                                             | 1,263  |   |                                                                     |   | 153.63                                             | % | Yes |
| Central      Arizona Bank            |   |                                             | 947    |   |                                                                     |   | 66.96                                              | % | No |
| Desert      Community Bank           |   |                                             | 1,213  |   |                                                                     |   | 122.69                                             | % | Yes |
| Elkhart      Community Bank          |   |                                             | 1,228  |   |                                                                     |   | 100.69                                             | % | Yes |
| First      Carolina State Bank       |   |                                             | 3,926  |   |                                                                     |   | 45.51                                              | % | No |
| Goshen      Community Bank           |   |                                             | 1,407  |   |                                                                     |   | 68.02                                              | % | No |
| Michigan      Commerce Bank          |   |                                             | 2,875  |   |                                                                     |   | 65.99                                              | % | No |
| Paragon      Bank & Trust        |   |                                             | 1,321  |   |                                                                     |   | 90.87                                              | % | No |
| Peoples      State Bank              |   |                                             | 625    |   |                                                                     |   | 14.95                                              | % | No |
| Red      Rock Community Bank         |   |                                             | 2,582  |   |                                                                     |   | 98.00                                              | % | No |
| Southern      Arizona Community Bank |   |                                             | 916    |   |                                                                     |   | 111.92                                             | % | Yes |
| Sunrise      Bank of Albuquerque     |   |                                             | 671    |   |                                                                     |   | 59.84                                              | % | No |
| Sunrise      Bank of Arizona         |   |                                             | 3,090  |   |                                                                     |   | 43.55                                              | % | No |
| Sunrise      Bank of San Diego       |   |                                             | 1,965  |   |                                                                     |   | 69.51                                              | % | No |
|                                 |   |                                             |   |   |                                                                     |   |                                               |   |   |
| Capitol      Bancorp Limited         |   | $                                                | 67,352 |   |                                                                     |   | 61.59                                              | % | No |

Accounting for IncomeTaxes

----

ConsolidationPolicy.

New Accounting Standards

----

Risk Factors Affecting Capitol and its Banks

| ·  | The      regulatory environment for the banking industry could change significantly      and adversely                                                                                                                                                           |
|--------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ·  | The      adverse economic environment of 2009 may worsen further resulting in      higher levels of nonperforming loans and loan losses                                                                                                                          |
| ·  | Young      banks, which include Capitol's newer affiliates, incur operating losses      and may not contribute to consolidated operating results for an extended      period of time                                                                             |
| ·  | 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 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  |
| ·  | Capitol      may participate in various capital programs of the U.S. Treasury which may      be dilutive to Capitol's common stock and results of      operations                                                                                                |
| ·  | The      complexity of Capitol's structure (a mixture of partially-owned and      wholly-owned banks and related entities) complicates financial      analysis                                                                                                        |

----

Management's Report on

|    Joseph      D. ReidChairman      and CEO Lansing,      MichiganMarch      19, 2010 |    Lee      W. HendricksonChief      Financial Officer |
|-----------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------|

----

|    |   |  BDO      Seidman, LLPAccountants and Consultants |   |  99 Monroe      Avenue N.W., Suite 800Grand Rapids, Michigan 49503-2654Telephone: (616) 774-7000Fax: (616)776-3680 |
|--------------|--------|--------------------------------------------------------|--------|-----------------------------------------------------------------------------------------------------------------------------------|

Report of Independent Registered Public AccountingFirm

----

|    Grand      Rapids, MichiganMarch      19, 2010  |
|------------------------------------------------------------------------|

----

|    |   |  BDO      Seidman, LLPAccountants and Consultants |   |  99 Monroe      Avenue N.W., Suite 800Grand Rapids, Michigan 49503-2654Telephone: (616) 774-7000Fax: (616)776-3680 |
|--------------|--------|--------------------------------------------------------|--------|-----------------------------------------------------------------------------------------------------------------------------------|

Report of Independent Registered Public AccountingFirm

|     Grand      Rapids, MichiganMarch      19, 2010   |
|------------------------------------------------------------------------------------|

----

Consolidated Balance Sheets

|                                                                                                                                                                          |   | -December      31- |                 |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------|----------------------|
|                                                                                                                                                                          |   | 2009               |                 |   | 2008 |   |
|                                                                                                                                                                          |   | (in      $1,000s)  |                 |
|                                                                                                                                                                          |   |               |                 |   | (as      adjusted) |   |
| ASSETS                                                                                                                                                                        |   |               |                 |   |   |   |
| Cash      and due from banks                                                                                                                                                  |   | $                  | 88,188               |   |   | $ | 136,499 |   |
| Money      market and interest-bearing deposits                                                                                                                               |   |               | 698,882              |   |   |   | 391,836 |   |
| Federal      funds sold                                                                                                                                                       |   |               | 21,851               |   |   |   | 96,031 |   |
| Cash      and cash equivalents                                                                                                                                                |   |               | 808,921              |   |   |   | 624,366 |   |
| Loans      held for sale                                                                                                                                                      |   |               | 16,132               |   |   |   | 10,474 |   |
| Investment      securities—Note C:                                                                                                                                      |   |               |                 |   |   |   |   |   |
| Available      for sale, carried at fair value                                                                                                                                |   |               | 40,778               |   |   |   | 15,584 |   |
| Held      for long-term investment, principally carried at amortizedcost      which approximates fair value                                                                   |   |               |  30,565         |   |   |   |  32,856 |   |
| Total      investment securities                                                                                                                                              |   |               | 71,343               |   |   |   | 48,440 |   |
| Portfolio      loans, less allowance for loan losses of $144,664 in2009      and $93,040 in 2008—Note D                                                                 |   |               |  3,902,437      |   |   |   |  4,642,189 |   |
| Premises      and equipment—Note F                                                                                                                                      |   |               | 48,386               |   |   |   | 59,249 |   |
| Accrued      interest income                                                                                                                                                  |   |               | 15,585               |   |   |   | 18,871 |   |
| Goodwill—Note      B                                                                                                                                                    |   |               | 66,126               |   |   |   | 72,342 |   |
| Other      real estate owned                                                                                                                                                  |   |               | 111,820              |   |   |   | 67,171 |   |
| Recoverable      income taxes—Note L                                                                                                                                    |   |               | 43,763               |   |   |   | 11,063 |   |
| Other      assets                                                                                                                                                             |   |               | 47,427               |   |   |   | 100,671 |   |
|                                                                                                                                                                          |   |               |                 |   |   |   |   |   |
| TOTAL      ASSETS                                                                                                                                                             |   | $                  | 5,131,940            |   |   | $ | 5,654,836 |   |
|                                                                                                                                                                          |   |               |                 |   |   |   |   |   |
|                                                                                                                                                                          |   |               |                 |   |   |   |   |   |
| LIABILITIES      AND EQUITY                                                                                                                                                   |   |               |                 |   |   |   |   |   |
| Deposits:                                                                                                                                                                     |   |               |                 |   |   |   |   |   |
| Noninterest-bearing                                                                                                                                                           |   | $                  | 679,100              |   |   | $ | 700,786 |   |
| Interest-bearing—Note      G                                                                                                                                            |   |               | 3,731,533            |   |   |   | 3,796,826 |   |
| Total      deposits                                                                                                                                                           |   |               | 4,410,633            |   |   |   | 4,497,612 |   |
| Debt      obligations:                                                                                                                                                        |   |               |                 |   |   |   |   |   |
| Notes      payable and short-term borrowings—Note H                                                                                                                     |   |               | 276,159              |   |   |   | 446,925 |   |
| Subordinated      debentures—Note I                                                                                                                                     |   |               | 167,441              |   |   |   | 167,293 |   |
| Total      debt obligations                                                                                                                                                   |   |               | 443,600              |   |   |   | 614,218 |   |
| Accrued      interest and other liabilities                                                                                                                                   |   |               | 44,101               |   |   |   | 29,938 |   |
| Total      liabilities                                                                                                                                                        |   |               | 4,898,334            |   |   |   | 5,141,768 |   |
|                                                                                                                                                                          |   |               |                 |   |   |   |   |   |
| EQUITY—Notes      B, J, P and Q                                                                                                                                         |   |               |                 |   |   |   |   |   |
| Capitol      Bancorp Limited stockholders'      equity:                                                                                                                       |   |               |                 |   |   |   |   |   |
| Preferred      stock, 20,000,000 shares authorized;none      issued and outstanding                                                                                           |   |               |  --             |   |   |   |  -- |   |
| Common      stock, no par value, 50,000,000 shares authorized;issued      and outstanding:  2009 – 17,545,631 shares 2008      – 17,293,908 shares |   |               |    277,707 |   |   |   |    274,018 |   |
| Retained      earnings (deficit)                                                                                                                                              |   |               | (115,751             | ) |   |   | 80,255 |   |
| Undistributed      common stock held by employee-benefit trust                                                                                                                |   |               | (558                 | ) |   |   | (569 | ) |
| Fair      value adjustment (net of tax effect) for investmentsecuritiesavailable      for sale (accumulated other comprehensive income/loss)                                  |   |               | (63                  | ) |   |   |  144 |   |
| Total      Capitol Bancorp Limited stockholders' equity                                                                                                                       |   |               | 161,335              |   |   |   | 353,848 |   |
| Noncontrolling      interests in consolidated subsidiaries                                                                                                                    |   |               | 72,271               |   |   |   | 159,220 |   |
| Total      equity                                                                                                                                                             |   |               | 233,606              |   |   |   | 513,068 |   |
|                                                                                                                                                                          |   |               |                 |   |   |   |   |   |
| TOTAL      LIABILITIES AND EQUITY                                                                                                                                             |   | $                  | 5,131,940            |   |   | $ | 5,654,836 |   |

----

Consolidated Statements ofOperations

|                                                                                           |   | -Year      Ended December 31-           |         |
|------------------------------------------------------------------------------------------------|--------|-----------------------------------------|--------------|
|                                                                                           |   | 2009                               |         |   | 2008  |   |   | 2007  |   |
|                                                                                           |   | (in      $1,000s except per share data) |         |
|                                                                                           |   |                                    |         |   | (as      adjusted) |   |   | (as      adjusted) |   |
| Interest      income:                                                                          |   |                                    |         |   |   |   |   |   |   |
| Portfolio      loans (including fees)                                                          |   | $                                       | 263,002      |   |   | $ | 296,689 |   |   | $ | 314,800 |   |
| Loans      held for sale                                                                       |   |                                    | 902          |   |   |   | 774 |   |   |   | 2,133 |   |
| Taxable      investment securities                                                             |   |                                    | 673          |   |   |   | 571 |   |   |   | 773 |   |
| Federal      funds sold                                                                        |   |                                    | 99           |   |   |   | 3,822 |   |   |   | 10,687 |   |
| Other                                                                                          |   |                                    | 2,223        |   |   |   | 2,459 |   |   |   | 2,046 |   |
| Total      interest income                                                                     |   |                                    | 266,899      |   |   |   | 304,315 |   |   |   | 330,439 |   |
| Interest      expense:                                                                         |   |                                    |         |   |   |   |   |   |   |   |   |   |
| Deposits                                                                                       |   |                                    | 87,312       |   |   |   | 112,370 |   |   |   | 124,160 |   |
| Debt      obligations and other                                                                |   |                                    | 23,205       |   |   |   | 28,096 |   |   |   | 23,002 |   |
| Total      interest expense                                                                    |   |                                    | 110,517      |   |   |   | 140,466 |   |   |   | 147,162 |   |
| Net      interest income                                                                       |   |                                    | 156,382      |   |   |   | 163,849 |   |   |   | 183,277 |   |
| Provision      for loan losses—Note D                                                    |   |                                    | 190,680      |   |   |   | 82,492 |   |   |   | 25,340 |   |
| Net      interest income (deficiency) after        provision for loan losses         |   |                                    | (34,298      | ) |   |   |  81,357 |   |   |   |  157,937 |   |
| Noninterest      income:                                                                       |   |                                    |         |   |   |   |   |   |   |   |   |   |
| Service      charges on deposit accounts                                                       |   |                                    | 5,914        |   |   |   | 5,881 |   |   |   | 4,787 |   |
| Trust      and wealth-management revenue                                                       |   |                                    | 4,957        |   |   |   | 6,182 |   |   |   | 5,149 |   |
| Fees      from origination of non-portfolio residentialmortgage      loans                     |   |                                    |  3,925  |   |   |   |  3,642 |   |   |   |  4,482 |   |
| Gain      on sales of government-guaranteed loans                                              |   |                                    | 2,811        |   |   |   | 2,060 |   |   |   | 2,733 |   |
| Realized      gains (losses) on sales of investmentsecurities      available for sale          |   |                                    |  7      |   |   |   |  50 |   |   |   | (2 | ) |
| Gain      on sale of bank subsidiary—Note T                                              |   |                                    | 1,187        |   |   |   |   |   |   |   |   |   |
| Other                                                                                          |   |                                    | 9,972        |   |   |   | 8,617 |   |   |   | 7,232 |   |
| Total      noninterest income                                                                  |   |                                    | 28,773       |   |   |   | 26,432 |   |   |   | 24,381 |   |
| Noninterest      expense:                                                                      |   |                                    |         |   |   |   |   |   |   |   |   |   |
| Salaries      and employee benefits                                                            |   |                                    | 99,554       |   |   |   | 108,702 |   |   |   | 106,563 |   |
| Occupancy                                                                                      |   |                                    | 19,289       |   |   |   | 18,648 |   |   |   | 15,079 |   |
| Equipment      rent, depreciation and maintenance                                              |   |                                    | 19,235       |   |   |   | 12,361 |   |   |   | 10,022 |   |
| Costs      associated with foreclosed properties andother      real estate owned               |   |                                    |  45,674 |   |   |   |  6,878 |   |   |   |  989 |   |
| FDIC      insurance premiums and other regulatory fees                                         |   |                                    | 15,412       |   |   |   | 4,060 |   |   |   | 2,723 |   |
| Preopening      and start-up costs of de      novo banksand      bank-development subsidiaries |   |                                    |         |   |   |   |  1,928 |   |   |   |  5,693 |   |
| Other                                                                                          |   |                                    | 41,433       |   |   |   | 37,811 |   |   |   | 35,091 |   |
| Total      noninterest expense                                                                 |   |                                    | 240,597      |   |   |   | 190,388 |   |   |   | 176,160 |   |
| Income      (loss) before income taxes (benefit)                                               |   |                                    | (246,122     | ) |   |   | (82,599 | ) |   |   | 6,158 |   |
| Income      taxes (benefit)—Note L                                                       |   |                                    | 18,418       |   |   |   | (30,148 | ) |   |   | 2,824 |   |
| NET      INCOME (LOSS)                                                                         |   |                                    | (264,540     | ) |   |   | (52,451 | ) |   |   | 3,334 |   |
| Less      net losses attributable to noncontrolling interests                                  |   |                                    | 69,371       |   |   |   | 23,844 |   |   |   | 18,603 |   |
|                                                                                           |   |                                    |         |   |   |   |   |   |   |   |   |   |
| NET      INCOME (LOSS) ATTRIBUTABLETO      CAPITOL BANCORP LIMITED                             |   | $                                       | (195,169     | ) |   | $ | (28,607 | ) |   | $ | 21,937 |   |
|                                                                                           |   |                                    |         |   |   |   |   |   |   |   |   |   |
| NET      INCOME (LOSS) PER SHAREATTRIBUTABLE      TO CAPITOLBANCORP      LIMITED—Note M: |   |                                    |         |   |   |   |   |   |   |   |   |   |
| Basic                                                                                          |   | $                                       | (11.28       | ) |   | $ | (1.67 | ) |   | $ | 1.29 |   |
|                                                                                           |   |                                    |         |   |   |   |   |   |   |   |   |   |
| Diluted                                                                                        |   | $                                       | (11.28       | ) |   | $ | (1.67 | ) |   | $ | 1.27 |   |

----

Consolidated Statements of Changes in Equity (in $1,000s,except share and per-share data)

|                                                                                                                                                 |   | Capitol      Bancorp Limited Stockholders'      Equity |                   |   |                                  |   |    |                                                            |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------|------------------------|--------|---------------------------------------|--------|---------|-----------------------------------------------------------------|--------|
|                                                                                                                                                 |   |    CommonStock                          |                   |   |   RetainedEarnings(Deficit) |   |    | UndistributedCommonStockHeld      byEmployee-Benefit      Trust |   |   |  AccumulatedOtherComprehensiveIncome      (Loss) |   |   | TotalCapitolBancorpLimitedStockholders'Equity |   |   |  NoncontrollingInterests      in Consolidated Subsidiaries |   |   |    TotalEquity |   |
|                                                                                                                                                 |   |                                                   |                   |   |                                  |   |    |                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balances      at January 1, 2007                                                                                                                     |   | $                                                      | 249,244                |   |                                  | $      | 112,779 |                                                            |   |   |   |   | $ | (144 | ) |   | $ | 361,879 |   |   | $ | 126,512 |   |   | $ | 488,391 |   |
|                                                                                                                                                 |   |                                                   |                   |   |                                  |   |    |                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Investment      in consolidated subsidiaries bynoncontrolling      interests                                                                         |   |                                                   |                   |   |                                  |   |    |                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |  55,713 |   |   |   |  55,713 |   |
|                                                                                                                                                 |   |                                                   |                   |   |                                  |   |    |                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Issuance      of 371,314 shares of common stock toacquire      noncontrolling interest in subsidiary                                                 |   |                                                   |  15,927           |   |                                  |   |    |                                                            |   |   |   |   |   |   |   |   |   |  15,927 |   |   |   | (7,424 | ) |   |   |  8,503 |   |
|                                                                                                                                                 |   |                                                   |                   |   |                                  |   |    |                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Issuance      of 277,149 shares of common stockupon      exercise of stock options                                                                   |   |                                                   |  4,706            |   |                                  |   |    |                                                            |   |   |   |   |   |   |   |   |   |  4,706 |   |   |   |   |   |   |   |  4,706 |   |
|                                                                                                                                                 |   |                                                   |                   |   |                                  |   |    |                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Surrender      of 54,855 shares of common stock tofacilitate      exercise of stock options and vestingof      restricted stock                      |   |                                                   | (1,870                 | )      |                                  |   |    |                                                            |   |   |   |   |   |   |   |   |   | (1,870 | ) |   |   |   |   |   |   | (1,870 | ) |
|                                                                                                                                                 |   |                                                   |                   |   |                                  |   |    |                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Recognition      of compensation expense relating torestricted      common stock ($1,562) and stockoptions                                           |   |                                                   |    1,972     |   |                                  |   |    |                                                            |   |   |   |   |   |   |   |   |   |    1,972 |   |   |   |   |   |   |   |    1,972 |   |
|                                                                                                                                                 |   |                                                   |                   |   |                                  |   |    |                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Issuance      of 43,972 unvested shares of restrictedcommon      stock, net of related unearnedemployee      compensation and 2,000 forfeitedshares  |   |                                                   |      -- |   |                                  |   |    |                                                            |   |   |   |   |   |   |   |   |   |      -- |   |   |   |   |   |   |   | -- |   |
|                                                                                                                                                 |   |                                                   |                   |   |                                  |   |    |                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Tax      benefit from share-based payments                                                                                                           |   |                                                   | 1,688                  |   |                                  |   |    |                                                            |   |   |   |   |   |   |   |   |   | 1,688 |   |   |   |   |   |   |   | 1,688 |   |
|                                                                                                                                                 |   |                                                   |                   |   |                                  |   |    |                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Issuance      of 24,506 shares of common stock toESOP                                                                                                |   |                                                   |  1,132            |   |                                  |   |    |                                                            |   |   |   |   |   |   |   |   |   |  1,132 |   |   |   |   |   |   |   |  1,132 |   |
|                                                                                                                                                 |   |                                                   |                   |   |                                  |   |    |                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Acquisition      of 85,543 shares for employee benefittrust                                                                                          |   |                                                   |                   |   |                                  |   |    |                                                            |   | $ | (2,482 | ) |   |   |   |   |   |   | (2,482 | ) |   |   |   |   |   |   | (2,482 | ) |
|                                                                                                                                                 |   |                                                   |                   |   |                                  |   |    |                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Transfer      of 64,430 shares to ESOP anddistribution      of 435 shares to employees uponanniversary      of employment                            |   |                                                   | (591                   | )      |                                  |   |    |                                                            |   |   |    1,896 |   |   |   |   |   |   |   |    1,305 |   |   |   |   |   |   |   |    1,305 |   |
|                                                                                                                                                 |   |                                                   |                   |   |                                  |   |    |                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash      dividends paid ($1.00 per share)                                                                                                           |   |                                                   |                   |   |                                  |   | (17,196 | )                                                               |   |   |   |   |   |   |   |   |   |   | (17,196 | ) |   |   |   |   |   |   | (17,196 | ) |
|                                                                                                                                                 |   |                                                   |                   |   |                                  |   |    |                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Components      of comprehensive income:                                                                                                             |   |                                                   |                   |   |                                  |   |    |                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      income for 2007                                                                                                                             |   |                                                   |                   |   |                                  |   | 21,937  |                                                            |   |   |   |   |   |   |   |   |   |   | 21,937 |   |   |   | (18,603 | ) |   |   | 3,334 |   |
| Fair      value adjustment for investment securitiesavailable      for sale (net of income tax effect)                                               |   |                                                   |                   |   |                                  |   |    |                                                            |   |   |   |   |   |   |  147 |   |   |   |  147 |   |   |   |   |   |   |   |  147 |   |
| Comprehensive      income for 2007                                                                                                                   |   |                                                   |                   |   |                                  |   |    |                                                            |   |   |   |   |   |   |   |   |   |   | 22,084 |   |   |   |   |   |   |   | 3,481 |   |
|                                                                                                                                                 |   |                                                   |                   |   |                                  |   |    |                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| BALANCES      AT DECEMBER 31, 2007                                                                                                                   |   |                                                   | 272,208                |   |                                  |   | 117,520 |                                                            |   |   | (586 | ) |   |   | 3 |   |   |   | 389,145 |   |   |   | 156,198 |   |   |   | 545,343 |   |
|                                                                                                                                                 |   |                                                   |                   |   |                                  |   |    |                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Investment      in consolidated subsidiaries bynoncontrolling      interests                                                                         |   |                                                   |                   |   |                                  |   |    |                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |  26,866 |   |   |   |  26,866 |   |
|                                                                                                                                                 |   |                                                   |                   |   |                                  |   |    |                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Issuance      of 108,935 shares of common stockupon      exercise of stock options                                                                   |   |                                                   |  1,950            |   |                                  |   |    |                                                            |   |   |   |   |   |   |   |   |   |   |  1,950 |   |   |   |   |   |   |   |  1,950 |   |
|                                                                                                                                                 |   |                                                   |                   |   |                                  |   |    |                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Surrender      of 108,163 shares of common stock tofacilitate      exercise of stock options and vestingof      restricted stock                     |   |                                                   | (2,376                 | )      |                                  |   |    |                                                            |   |   |   |   |   |   |   |   |   |   | (2,376 | ) |   |   |   |   |   |   | (2,376 | ) |
|                                                                                                                                                 |   |                                                   |                   |   |                                  |   |    |                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Issuance      of 32,290 unvested shares of restrictedcommon      stock, net of related unearnedemployee      compensation and 55,722 forfeitedshares |   |                                                   |      -- |   |                                  |   |    |                                                            |   |   |   |   |   |   |   |   |   |   |      -- |   |   |   |   |   |   |   | -- |   |
|                                                                                                                                                 |   |                                                   |                   |   |                                  |   |    |                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Recognition      of compensation expense relating torestricted      common stock and stock options                                                   |   |                                                   |  2,227            |   |                                  |   |    |                                                            |   |   |   |   |   |   |   |   |   |   |  2,227 |   |   |   |   |   |   |   |  2,227 |   |
|                                                                                                                                                 |   |                                                   |                   |   |                                  |   |    |                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Tax      benefit from share-based payments                                                                                                           |   |                                                   | 20                     |   |                                  |   |    |                                                            |   |   |   |   |   |   |   |   |   |   | 20 |   |   |   |   |   |   |   | 20 |   |
|                                                                                                                                                 |   |                                                   |                   |   |                                  |   |    |                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Transfer      of 205 shares to ESOP and distributionof      370 shares to employees upon anniversaryof      employment                               |   |                                                   | (11                    | )      |                                  |   |    |                                                            |   |   |    17 |   |   |   |   |   |   |   |    6 |   |   |   |   |   |   |   |    6 |   |
|                                                                                                                                                 |   |                                                   |                   |   |                                  |   |    |                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash      dividends paid ($0.50 per share)                                                                                                           |   |                                                   |                   |   |                                  |   | (8,658  | )                                                               |   |   |   |   |   |   |   |   |   |   | (8,658 | ) |   |   |   |   |   |   | (8,658 | ) |
|                                                                                                                                                 |   |                                                   |                   |   |                                  |   |    |                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Components      of comprehensive income (loss):                                                                                                      |   |                                                   |                   |   |                                  |   |    |                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      loss for 2008                                                                                                                               |   |                                                   |                   |   |                                  |   | (28,607 | )                                                               |   |   |   |   |   |   |   |   |   |   | (28,607 | ) |   |   | (23,844 | ) |   |   | (52,451 | ) |
| Fair      value adjustment for investment securitiesavailable      for sale (net of income tax effect)                                               |   |                                                   |                   |   |                                  |   |    |                                                            |   |   |   |   |   |   |  141 |   |   |   |  141 |   |   |   |   |   |   |   |  141 |   |
| Comprehensive      loss for 2008                                                                                                                     |   |                                                   |                   |   |                                  |   |    |                                                            |   |   |   |   |   |   |   |   |   |   | (28,466 | ) |   |   |   |   |   |   | (52,310 | ) |
|                                                                                                                                                 |   |                                                   |                   |   |                                  |   |    |                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| BALANCES      AT DECEMBER 31, 2008                                                                                                                   |   |                                                   | 274,018                |   |                                  |   | 80,255  |                                                            |   |   | (569 | ) |   |   | 144 |   |   |   | 353,848 |   |   |   | 159,220 |   |   |   | 513,068 |   |

----

|                                                                                                                                                                                                                                    |   | Capitol      Bancorp Limited Stockholders'      Equity |                   |   |                                  |   |     |                                                            |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------|------------------------|--------|---------------------------------------|--------|----------|-----------------------------------------------------------------|--------|
|                                                                                                                                                                                                                                    |   |    CommonStock                          |                   |   |   RetainedEarnings(Deficit) |   |     | UndistributedCommonStockHeld      byEmployee-Benefit      Trust |   |   |  AccumulatedOtherComprehensiveIncome      (Loss) |   |   | TotalCapitolBancorpLimitedStockholders'Equity |   |   | NoncontrollingInterests      in Consolidated Subsidiaries |   |   | TotalEquity |   |
|                                                                                                                                                                                                                                    |   |                                                   |                   |   |                                  |   |     |                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |
| BALANCES      AT DECEMBER 31, 2008                                                                                                                                                                                                      |   | $                                                      | 274,018                |   |                                  | $      | 80,255   |                                                            |   | $ | (569 | ) |   | $ | 144 |   |   | $ | 353,848 |   |   | $ | 159,220 |   |   | $ | 513,068 |   |
|                                                                                                                                                                                                                                    |   |                                                   |                   |   |                                  |   |     |                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Sale      of subsidiary's shares to noncontrolling         interest                                                                                                                                                      |   |                                                   |                   |   |                                  |   |  27 |                                                            |   |   |   |   |   |   |   |   |   |   |  27 |   |   |   |  3,793 |   |   |   |  3,820 |   |
|                                                                                                                                                                                                                                    |   |                                                   |                   |   |                                  |   |     |                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Reduction      in noncontrolling interests of         deconsolidated subsidiaries                                                                                                                                        |   |                                                   |                   |   |                                  |   |     |                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (18,829 | ) |   |   | (18,829 | ) |
|                                                                                                                                                                                                                                    |   |                                                   |                   |   |                                  |   |     |                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Issuance      of 227,357 shares of common stock and         75,719 warrants  to purchase shares of         common stock to acquire noncontrolling         interest in subsidiary |   |                                                   |  2,542            |   |                                  |   |     |                                                            |   |   |   |   |   |   |   |   |   |   |  2,542 |   |   |   | (2,542 | ) |   |   |   |   |
|                                                                                                                                                                                                                                    |   |                                                   |                   |   |                                  |   |     |                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Surrender      of 3,934 shares of common stock tofacilitate      vesting of restricted stock                                                                                                                                            |   |                                                   | (23                    | )      |                                  |   |     |                                                            |   |   |   |   |   |   |   |   |   |   | (23 | ) |   |   |   |   |   |   | (23 | ) |
|                                                                                                                                                                                                                                    |   |                                                   |                   |   |                                  |   |     |                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Issuance      of 37,000 unvested shares of restrictedcommon      stock, net of related unearnedemployee      compensation and 8,700 forfeitedshares                                                                                     |   |                                                   |      -- |   |                                  |   |     |                                                            |   |   |   |   |   |   |   |   |   |   |      -- |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                    |   |                                                   |                   |   |                                  |   |     |                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Recognition      of compensation expense relating torestricted      common stock and stock options                                                                                                                                      |   |                                                   |  1,350            |   |                                  |   |     |                                                            |   |   |   |   |   |   |   |   |   |   |  1,350 |   |   |   |   |   |   |   |  1,350 |   |
|                                                                                                                                                                                                                                    |   |                                                   |                   |   |                                  |   |     |                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Tax      effect of share-based payments                                                                                                                                                                                                 |   |                                                   | (169                   | )      |                                  |   |     |                                                            |   |   |   |   |   |   |   |   |   |   | (169 | ) |   |   |   |   |   |   | (169 | ) |
|                                                                                                                                                                                                                                    |   |                                                   |                   |   |                                  |   |     |                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Distribution      of 385 shares to employees upon         anniversary of employment                                                                                                                                      |   |                                                   | (11                    | )      |                                  |   |     |                                                            |   |   |  11 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                    |   |                                                   |                   |   |                                  |   |     |                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash      dividends paid ($0.05 per share)                                                                                                                                                                                              |   |                                                   |                   |   |                                  |   | (864     | )                                                               |   |   |   |   |   |   |   |   |   |   | (864 | ) |   |   |   |   |   |   | (864 | ) |
|                                                                                                                                                                                                                                    |   |                                                   |                   |   |                                  |   |     |                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Components      of comprehensive loss:                                                                                                                                                                                                  |   |                                                   |                   |   |                                  |   |     |                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      loss for 2009                                                                                                                                                                                                                  |   |                                                   |                   |   |                                  |   | (195,169 | )                                                               |   |   |   |   |   |   |   |   |   |   | (195,169 | ) |   |   | (69,371 | ) |   |   | (264,540 | ) |
| Fair      value adjustment for investment securitiesavailable      for sale (net of income tax effect)                                                                                                                                  |   |                                                   |                   |   |                                  |   |     |                                                            |   |   |   |   |   |   | (207 | ) |   |   | (207 | ) |   |   |   |   |   |   | (207 | ) |
| Comprehensive      loss for 2009                                                                                                                                                                                                        |   |                                                   |                   |   |                                  |   |     |                                                            |   |   |   |   |   |   |   |   |   |   | (195,376 | ) |   |   |   |   |   |   | (264,747 | ) |
|                                                                                                                                                                                                                                    |   |                                                   |                   |   |                                  |   |     |                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| BALANCES      AT DECEMBER 31, 2009                                                                                                                                                                                                      |   | $                                                      | 277,707                |   |                                  | $      | (115,751 | )                                                               |   | $ | (558 | ) |   | $ | (63 | ) |   | $ | 161,335 |   |   | $ | 72,271 |   |   | $ | 233,606 |   |

----

Consolidated Statements of Cash Flows

|                                                                                                       |   | -Year      Ended December 31- |          |
|------------------------------------------------------------------------------------------------------------|--------|-------------------------------|---------------|
|                                                                                                       |   | 2009                          |          |   | 2008 |   |   | 2007 |   |
|                                                                                                       |   | (in      $1,000s)             |          |
| OPERATING      ACTIVITIES                                                                                  |   |                          |          |   |   |   |   |   |   |
| Net      income (loss)                                                                                     |   | $                             | (264,540      | ) |   | $ | (52,451 | ) |   | $ | 3,334 |   |
| Adjustments      to reconcile net income (loss) to net cashprovided      by operating activities:          |   |                          |          |   |   |   |   |   |   |   |   |   |
| Provision      for loan losses                                                                             |   |                          | 190,680       |   |   |   | 82,492 |   |   |   | 25,340 |   |
| Depreciation      of premises and equipment                                                                |   |                          | 10,084        |   |   |   | 10,547 |   |   |   | 8,980 |   |
| Amortization      and write-down of intangibles                                                            |   |                          | 4,269         |   |   |   | 510 |   |   |   | 315 |   |
| Net      amortization (accretion) of investment securitypremiums      (discounts)                          |   |                          | (33           | ) |   |   | (32 | ) |   |   |  11 |   |
| Loss      (gain) on sales of premises and equipment                                                        |   |                          | 254           |   |   |   | 165 |   |   |   | (57 | ) |
| Gain      on sales of government-guaranteed loans                                                          |   |                          | (2,811        | ) |   |   | (2,060 | ) |   |   | (2,733 | ) |
| Gain      on sale of bank subsidiary                                                                       |   |                          | (1,187        | ) |   |   |   |   |   |   |   |   |
| Realized      losses (gain) on sales of investmentsecurities      available for sale                       |   |                          | (7            | ) |   |   | (50 | ) |   |   |  2 |   |
| Loss      on sales of other real estate owned                                                              |   |                          | 4,400         |   |   |   | 1,191 |   |   |   | 58 |   |
| Write-down      of other real estate owned                                                                 |   |                          | 32,315        |   |   |   | 10,679 |   |   |   | 307 |   |
| Amortization      of issuance costs of subordinated debentures                                             |   |                          | 148           |   |   |   | 117 |   |   |   | 95 |   |
| Share-based      compensation expense                                                                      |   |                          | 1,350         |   |   |   | 2,227 |   |   |   | 1,972 |   |
| Deferred      income tax credit                                                                            |   |                          | (43,354       | ) |   |   | (27,577 | ) |   |   | (10,397 | ) |
| Valuation      allowance for deferred income tax assets                                                    |   |                          | 104,498       |   |   |   |   |   |   |   |   |   |
| Originations      and purchases of loans held for sale                                                     |   |                          | (311,179      | ) |   |   | (206,544 | ) |   |   | (499,787 | ) |
| Proceeds      from sales of loans held for sale                                                            |   |                          | 305,080       |   |   |   | 212,489 |   |   |   | 517,961 |   |
| Decrease      in accrued interest income and other assets                                                  |   |                          | (30,722       | ) |   |   | (16,809 | ) |   |   | (6,367 | ) |
| Increase      (decrease) in accrued interest and other liabilities                                         |   |                          | 15,363        |   |   |   | (5,223 | ) |   |   | 8,410 |   |
| NET      CASH PROVIDED BY OPERATING ACTIVITIES                                                             |   |                          | 14,608        |   |   |   | 9,671 |   |   |   | 47,444 |   |
|                                                                                                       |   |                          |          |   |   |   |   |   |   |   |   |   |
| INVESTING      ACTIVITIES                                                                                  |   |                          |          |   |   |   |   |   |   |   |   |   |
| Proceeds      from sales of investment securities available for sale                                       |   |                          | 798           |   |   |   | 890 |   |   |   | 299 |   |
| Proceeds      from calls, prepayments and maturities of investment      securities                         |   |                          | 16,936        |   |   |   | 20,392 |   |   |   | 11,303 |   |
| Purchases      of investment securities                                                                    |   |                          | (58,519       | ) |   |   | (30,933 | ) |   |   | (10,629 | ) |
| Net      decrease (increase) in portfolio loans                                                            |   |                          | 155,438       |   |   |   | (562,032 | ) |   |   | (877,790 | ) |
| Proceeds      from sales of government-guaranteed loans                                                    |   |                          | 39,429        |   |   |   | 23,850 |   |   |   | 24,657 |   |
| Proceeds      from sales of premises and equipment                                                         |   |                          | 2,033         |   |   |   | 1,197 |   |   |   | 407 |   |
| Purchases      of premises and equipment                                                                   |   |                          | (5,137        | ) |   |   | (11,127 | ) |   |   | (15,066 | ) |
| Proceeds      from sale of bank subsidiary                                                                 |   |                          | 9,506         |   |   |   |   |   |   |   |   |   |
| Payments      received on other real estate owned                                                          |   |                          | 6             |   |   |   | 166 |   |   |   | 60 |   |
| Proceeds      from sales of other real estate owned                                                        |   |                          | 17,716        |   |   |   | 9,288 |   |   |   | 9,898 |   |
| NET      CASH PROVIDED (USED) BY INVESTING ACTIVITIES                                                      |   |                          | 178,206       |   |   |   | (548,309 | ) |   |   | (856,861 | ) |
|                                                                                                       |   |                          |          |   |   |   |   |   |   |   |   |   |
| FINANCING      ACTIVITIES                                                                                  |   |                          |          |   |   |   |   |   |   |   |   |   |
| Net      increase (decrease) in demand deposits, NOW accountsand      savings accounts                     |   |                          |  157,850 |   |   |   | (91,672 | ) |   |   |  185,376 |   |
| Net      increase in certificates of deposit                                                               |   |                          | 12,300        |   |   |   | 744,539 |   |   |   | 400,884 |   |
| Net      borrowings from (payments on) debt obligations                                                    |   |                          | 1,484         |   |   |   | (4,603 | ) |   |   | 14,083 |   |
| Proceeds      from FHLB borrowings                                                                         |   |                          | 3,146,430     |   |   |   | 1,838,858 |   |   |   | 1,035,668 |   |
| Payments      on FHLB borrowings                                                                           |   |                          | (3,278,820    | ) |   |   | (1,707,714 | ) |   |   | (920,521 | ) |
| Net      proceeds from issuance of subordinated debentures                                                 |   |                          |          |   |   |   | 11,046 |   |   |   | 55,000 |   |
| Resources      provided by noncontrolling interests                                                        |   |                          | 3,794         |   |   |   | 26,866 |   |   |   | 55,713 |   |
| Net      proceeds from issuance of common stock                                                            |   |                          |          |   |   |   | 1,950 |   |   |   | 4,706 |   |
| Tax      benefit (cost) from share-based payments                                                          |   |                          | (169          | ) |   |   | 20 |   |   |   | 1,688 |   |
| Acquisition      of shares for employee benefit trust                                                      |   |                          |          |   |   |   |   |   |   |   | (2,482 | ) |
| Cash      dividends paid                                                                                   |   |                          | (864          | ) |   |   | (8,658 | ) |   |   | (17,196 | ) |
| NET      CASH PROVIDED BY FINANCING ACTIVITIES                                                             |   |                          | 42,005        |   |   |   | 810,632 |   |   |   | 812,919 |   |
| INCREASE      IN CASH AND CASH EQUIVALENTS                                                                 |   |                          | 234,819       |   |   |   | 271,994 |   |   |   | 3,502 |   |
| Less      cash and cash equivalents of deconsolidated subsidiaries                                         |   |                          | (50,264       | ) |   |   |   |   |   |   |   |   |
| Cash      and cash equivalents at beginning of year                                                        |   |                          | 624,366       |   |   |   | 352,372 |   |   |   | 348,870 |   |
|                                                                                                       |   |                          |          |   |   |   |   |   |   |   |   |   |
| CASH      AND CASH EQUIVALENTS AT END OF YEAR                                                              |   | $                             | 808,921       |   |   | $ | 624,366 |   |   | $ | 352,372 |   |
|                                                                                                       |   |                          |          |   |   |   |   |   |   |   |   |   |
| Supplemental      disclosures:                                                                             |   |                          |          |   |   |   |   |   |   |   |   |   |
| Cash      paid during the year for interest                                                                |   |                          | 114,693       |   |   |   | 138,506 |   |   |   | 148,273 |   |
| Transfers      of loans to other real estate owned                                                         |   |                          | 102,487       |   |   |   | 63,458 |   |   |   | 17,216 |   |
| Surrender      of common stock to facilitate exercise of stock optionsand      vesting of restricted stock |   |                          |  23      |   |   |   |  2,376 |   |   |   |  1,870 |   |

----

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

|   Affiliate                |   |   Location            |   | Percentage      Ownedat      December 31,2009 |   |  Year      Formed orAcquired |
|--------------------------------------|--------|---------------------------------|--------|-----------------------------------------------|--------|-----------------------------------|
|                                 |   |                            |   |                                          |   |                              |
| Arizona      Region:                 |   |                            |   |                                          |   |                              |
| Bank      of Tucson                  |   | Tucson,      Arizona            |   | 100%                                          |   | 1996                              |
| Central      Arizona Bank(2)         |   | Casa      Grande, Arizona       |   | 73%                                           |   | 1997                              |
| Southern      Arizona Community Bank |   | Tucson,      Arizona            |   | 100%                                          |   | 1998                              |
| Sunrise      Bank of Albuquerque     |   | Albuquerque,      New Mexico    |   | 100%                                          |   | 2000                              |
| Sunrise      Bank of Arizona(4)      |   | Phoenix,      Arizona           |   | 81%                                           |   | 1998                              |
|                                 |   |                            |   |                                          |   |                              |
| California      Region:              |   |                            |   |                                          |   |                              |
| Bank      of Escondido               |   | Escondido,      California      |   | 100%                                          |   | 2003                              |
| Bank      of Feather River           |   | Yuba      City, California      |   | (1)                                           |   | 2007                              |
| Bank      of San Francisco           |   | San      Francisco, California  |   | 51%                                           |   | 2005                              |
| Napa      Community Bank             |   | Napa,      California           |   | 87%                                           |   | 2002                              |
| Point      Loma Community Bank       |   | Point      Loma, California     |   | 51%                                           |   | 2004                              |
| Sunrise      Bank of San Diego       |   | San      Diego, California      |   | 100%                                          |   | 2001                              |
| Sunrise      Community Bank          |   | Palm      Desert, California    |   | (1)                                           |   | 2007                              |
|                                 |   |                            |   |                                          |   |                              |
| Colorado      Region:                |   |                            |   |                                          |   |                              |
| Fort      Collins Commerce Bank      |   | Fort      Collins, Colorado     |   | 51%                                           |   | 2005                              |
| Larimer      Bank of Commerce        |   | Fort      Collins, Colorado     |   | 51%                                           |   | 2007                              |
| Loveland      Bank of Commerce       |   | Loveland,      Colorado         |   | 51%                                           |   | 2007                              |
| Mountain      View Bank of Commerce  |   | Westminster,      Colorado      |   | (1)                                           |   | 2008                              |
|                                 |   |                            |   |                                          |   |                              |
| Great      Lakes Region:             |   |                            |   |                                          |   |                              |
| Bank      of Auburn Hills            |   | Auburn      Hills, Michigan     |   | 100%                                          |   | 2005                              |
| Bank      of Maumee                  |   | Maumee,      Ohio               |   | (1)                                           |   | 2006                              |
| Bank      of Michigan                |   | Farmington      Hills, Michigan |   | 51%                                           |   | 2005                              |
| Capitol      National Bank           |   | Lansing,      Michigan          |   | 100%                                          |   | 1982                              |
| Elkhart      Community Bank          |   | Elkhart,      Indiana           |   | 100%                                          |   | 1999                              |
| Evansville      Commerce Bank        |   | Evansville,      Indiana        |   | (1)                                           |   | 2006                              |
| Goshen      Community Bank           |   | Goshen,      Indiana            |   | 100%                                          |   | 2000                              |
| Michigan      Commerce Bank(3)       |   | Ann      Arbor, Michigan        |   | 95%                                           |   | 1990                              |
| Ohio      Commerce Bank              |   | Beachwood,      Ohio            |   | (1)                                           |   | 2006                              |
| Paragon      Bank & Trust        |   | Holland,      Michigan          |   | 100%                                          |   | 1994                              |
|                                 |   |                            |   |                                          |   |                              |
| Midwest      Region:                 |   |                            |   |                                          |   |                              |
| Adams      Dairy Bank                |   | Blue      Springs, Missouri     |   | (1)                                           |   | 2008                              |
| Bank      of Belleville              |   | Belleville,      Illinois       |   | 51%                                           |   | 2005                              |
| Community      Bank of Lincoln       |   | Lincoln,      Nebraska          |   | (1)                                           |   | 2007                              |
|                                 |   |                            |   |                                          |   |                              |
| Nevada      Region:                  |   |                            |   |                                          |   |                              |
| 1st      Commerce Bank               |   | North      Las Vegas, Nevada    |   | (1)                                           |   | 2006                              |
| Bank      of Las Vegas               |   | Las      Vegas, Nevada          |   | 100%                                          |   | 2002                              |
| Black      Mountain Community Bank   |   | Henderson,      Nevada          |   | 100%                                          |   | 2000                              |
| Desert      Community Bank           |   | Las      Vegas, Nevada          |   | 100%                                          |   | 1999                              |
| Red      Rock Community Bank         |   | Las      Vegas, Nevada          |   | 100%                                          |   | 1999                              |
|                                 |   |                            |   |                                          |   |                              |
| Northeast      Region:               |   |                            |   |                                          |   |                              |
| USNY      Bank                       |   | Geneva,      New York           |   | (1)                                           |   | 2007                              |
|                                 |   |                            |   |                                          |   |                              |

----

|   Affiliate          |   |   Location             |   | Percentage      Ownedat      December 31,2009 |   |  Year      Formed orAcquired |
|--------------------------------|--------|----------------------------------|--------|-----------------------------------------------|--------|-----------------------------------|
|                           |   |                             |   |                                          |   |                              |
| Northwest      Region:         |   |                             |   |                                          |   |                              |
| Bank      of Bellevue          |   | Bellevue,      Washington        |   | 51%                                           |   | 2005                              |
| Bank      of Everett           |   | Everett,      Washington         |   | (1)                                           |   | 2006                              |
| Bank      of Tacoma            |   | Tacoma,      Washington          |   | (1)                                           |   | 2007                              |
| High      Desert Bank          |   | Bend,      Oregon                |   | (1)                                           |   | 2007                              |
| Issaquah      Community Bank   |   | Issaquah,      Washington        |   | (1)                                           |   | 2007                              |
|                           |   |                             |   |                                          |   |                              |
| Southeast      Region:         |   |                             |   |                                          |   |                              |
| Bank      of Valdosta          |   | Valdosta,      Georgia           |   | (1)                                           |   | 2006                              |
| First      Carolina State Bank |   | Rocky      Mount, North Carolina |   | 89%                                           |   | 2004                              |
| Peoples      State Bank        |   | Jeffersonville,      Georgia     |   | 100%                                          |   | 2005                              |
| Pisgah      Community Bank     |   | Asheville,      North Carolina   |   | (1)                                           |   | 2008                              |
| Sunrise      Bank of Atlanta   |   | Atlanta,      Georgia            |   | (1)                                           |   | 2006                              |
|                           |   |                             |   |                                          |   |                              |
| Texas      Region:             |   |                             |   |                                          |   |                              |
| Bank      of Fort Bend         |   | Sugar      Land, Texas           |   | (1)                                           |   | 2007                              |
| Bank      of Las Colinas       |   | Irving,      Texas               |   | (1)                                           |   | 2007                              |

----

----

----

----

----

----

----

----

----

|                                   |   | 2009          |   |   | 2008               |
|----------------------------------------|--------|---------------|--------|--------|--------------------|
|                                   |   | AmortizedCost |   |   | EstimatedFairValue |   |   | AmortizedCost |   |   | EstimatedFairValue |
| Available      for sale securities:    |   |          |   |   |               |   |   |   |   |   |   |
| United      States treasury            |   | $             | 1,500  |   |               | $ | 1,500 |   |   |   |   |   |   |
| United      States government agencies |   |          | 13,956 |   |               |   | 13,941 |   |   | $ | 9,785 |   |   | $ | 9,913 |
| Mortgage-backed                        |   |          | 24,690 |   |               |   | 24,598 |   |   |   | 4,813 |   |   |   | 4,890 |
| Municipalities                         |   |          | 727    |   |               |   | 739 |   |   |   | 768 |   |   |   | 781 |
|                                   |   |          | 40,873 |   |               |   | 40,778 |   |   |   | 15,366 |   |   |   | 15,584 |
| Held      for long-term investment:    |   |          |   |   |               |   |   |   |   |   |   |   |   |   |   |
| Federal      Reserve Bank stock        |   |          | 210    |   |               |   | 210 |   |   |   | 146 |   |   |   | 146 |
| Federal      Home Loan Bank stock      |   |          | 24,464 |   |               |   | 24,464 |   |   |   | 26,053 |   |   |   | 26,053 |
| CDBL      III                          |   |          | 672    |   |               |   | 672 |   |   |   |   |   |   |   |   |
| Corporate                              |   |          | 5,119  |   |               |   | 5,119 |   |   |   | 6,591 |   |   |   | 6,591 |
| Other                                  |   |          | 100    |   |               |   | 100 |   |   |   | 66 |   |   |   | 66 |
|                                   |   |          | 30,565 |   |               |   | 30,565 |   |   |   | 32,856 |   |   |   | 32,856 |
|                                   |   | $             | 71,438 |   |               | $ | 71,343 |   |   | $ | 48,222 |   |   | $ | 48,440 |

----

|                                   |   | 2009   |   |   | 2008   |
|----------------------------------------|--------|--------|--------|--------|--------|
|                                   |   | Gains  |   |   | Losses |   |   | Gains |   |   | Losses |
| United      States government agencies |   | $      | 7      |   |   | $ | 22 |   |   | $ | 128 |   |   | $ | -- |
| Mortgage-backed                        |   |   | 122    |   |   |   | 214 |   |   |   | 85 |   |   |   | 8 |
| Municipalities                         |   |   | 12     |   |   |   | -- |   |   |   | 13 |   |   |   | -- |
|                                   |   | $      | 141    |   |   | $ | 236 |   |   | $ | 226 |   |   | $ | 8 |

|                                                                |   | 2009           |   |   | 2008          |
|---------------------------------------------------------------------|--------|----------------|--------|--------|---------------|
|                                                                |   | UnrealizedLoss |   |   | CarryingValue |   |   | UnrealizedLoss |   |   | CarryingValue |
| One      year or less:                                              |   |           |   |   |          |   |   |   |   |   |   |
| United      States government agencies                              |   | $              | 22     |   |          | $ | 8,979 |   |   | $ | -- |   |   | $ | -- |
| Mortgage-backed                                                     |   |           | 214    |   |          |   | 19,879 |   |   |   | 4 |   |   |   | 281 |
|                                                                |   |           | 236    |   |          |   | 28,858 |   |   |   | 4 |   |   |   | 281 |
| In      excess of one year--mortgage-         backed |   |           | --     |   |          |   | -- |   |   |   | 4 |   |   |   | 501 |
|                                                                |   |           |   |   |          |   |   |   |   |   |   |   |   |   |   |
|                                                                |   | $              | 236    |   |          | $ | 28,858 |   |   | $ | 8 |   |   | $ | 782 |

|                                                                         |   | AmortizedCost |         |   | EstimatedFairValue |
|------------------------------------------------------------------------------|--------|---------------|--------------|--------|--------------------|
|                                                                         |   |          |         |   |               |
| Due      in one year or less                                                 |   | $             | 6,886        |   |               | $ | 6,891 |
| After      one year, through five years                                      |   |          | 9,137        |   |               |   | 9,124 |
| After      five years, through ten years                                     |   |          | 567          |   |               |   | 577 |
| After      ten years                                                         |   |          | 24,283       |   |               |   | 24,186 |
| Securities      held for long-term investment,without      stated maturities |   |          |  30,565 |   |               |   |  30,565 |
|                                                                         |   | $             | 71,438       |   |               | $ | 71,343 |

----

|                                              |   | 2009   |          |   | 2008   |   |          |   |   |   |
|---------------------------------------------------|--------|--------|---------------|--------|--------|--------|---------------|--------|--------|--------|
|                                              |   |   |          |   |   |   |          |   |   |   |
| Loans      secured by real estate:                |   |   |          |   |   |   |          |   |   |   |
| Commercial                                        |   | $      | 1,990,332     |   |   | $      | 2,115,515     |   |   |   |   |   |
| Residential      (including multi-family)         |   |   | 785,362       |   |   |   | 879,754       |   |   |   |   |   |
| Construction,      land development and otherland |   |   |  509,474 |   |   |   |  797,486 |   |   |   |   |   |
| Total      loans secured by real estate           |   |   | 3,285,168     |   |   |   | 3,792,755     |   |   |   |   |   |
| Commercial      and other business-purpose loans  |   |   | 684,253       |   |   |   | 845,593       |   |   |   |   |   |
| Consumer                                          |   |   | 44,168        |   |   |   | 61,340        |   |   |   |   |   |
| Other                                             |   |   | 33,512        |   |   |   | 35,541        |   |   |   |   |   |
| Total      portfolio loans                        |   |   | 4,047,101     |   |   |   | 4,735,229     |   |   |   |   |   |
| Less      allowance for loan losses               |   |   | (144,664      | )      |   |   | (93,040       | )      |   |   |   |   |
| Net      portfolio loans                          |   | $      | 3,902,437     |   |   | $      | 4,642,189     |   |   |   |   |   |

|                                                                                              |   | 2009   |     |   | 2008   |   |     | 2007   |   |
|---------------------------------------------------------------------------------------------------|--------|--------|----------|--------|--------|--------|----------|--------|--------|
|                                                                                              |   |   |     |   |   |   |     |   |   |
| Balance      at beginning of year                                                                 |   | $      | 93,040   |   |   | $      | 58,124   |   |   | $ | 45,414 |   |
| Provision      for loan losses charged to operations                                              |   |   | 190,680  |   |   |   | 82,492   |   |   |   | 25,340 |   |
| Net      charge-offs:                                                                             |   |   |     |   |   |   |     |   |   |   |   |   |
| Loans      charged-off (deduction)                                                                |   |   | (138,672 | )      |   |   | (50,447  | )      |   |   | (14,219 | ) |
| Recoveries                                                                                        |   |   | 3,730    |   |   |   | 2,871    |   |   |   | 1,589 |   |
| Net      charge-offs                                                                              |   |   | (134,942 | )      |   |   | (47,576  | )      |   |   | (12,630 | ) |
| Less      allowance for loan losses of subsidiaries         no longer consolidated |   |   | (4,114   | )      |   |   |  -- |   |   |   |  -- |   |
| Balance      at end of year                                                                       |   | $      | 144,664  |   |   | $      | 93,040   |   |   | $ | 58,124 |   |

----

|                                                          |   | 2009   |    |   | 2008   |
|---------------------------------------------------------------|--------|--------|---------|--------|--------|
| Nonaccrual      loans:                                        |   |   |    |   |   |
| Loans      secured by real estate:                            |   |   |    |   |   |
| Commercial                                                    |   | $      | 131,990 |   |   | $ | 39,892 |
| Residential      (including multi-family)                     |   |   | 55,553  |   |   |   | 35,675 |
| Construction,      land development and other land            |   |   | 84,276  |   |   |   | 72,996 |
| Total      loans secured by real estate                       |   |   | 271,819 |   |   |   | 148,563 |
| Commercial      and other business-purpose loans              |   |   | 23,063  |   |   |   | 16,283 |
| Consumer                                                      |   |   | 380     |   |   |   | 190 |
| Total      nonaccrual loans                                   |   |   | 295,262 |   |   |   | 165,036 |
|                                                          |   |   |    |   |   |   |   |
| Past      due (>90 days)      loans and accruing interest: |   |   |    |   |   |   |   |
| Loans      secured by real estate:                            |   |   |    |   |   |   |   |
| Commercial                                                    |   |   | 6,234   |   |   |   | 1,623 |
| Residential      (including multi-family)                     |   |   | 228     |   |   |   | 365 |
| Construction,      land development and other land            |   |   | 3,713   |   |   |   | 2,293 |
| Total      loans secured by real estate                       |   |   | 10,175  |   |   |   | 4,281 |
| Commercial      and other business-purpose loans              |   |   | 1,546   |   |   |   | 747 |
| Consumer                                                      |   |   | 534     |   |   |   | 146 |
| Total      past due loans                                     |   |   | 12,255  |   |   |   | 5,174 |
|                                                          |   |   |    |   |   |   |   |
| Total      nonperforming loans                                |   | $      | 307,517 |   |   | $ | 170,210 |

|                                                     |   | December      31 |
|----------------------------------------------------------|--------|------------------|
|                                                     |   | 2009             |   |   | 2008 |
| Impaired      loans:                                     |   |             |   |   |   |
| Loans      which have an allowance requirement           |   | $                | 114,782 |   |   | $ | 82,387 |
| Loans      which do not have an allowance requirement    |   |             | 217,949 |   |   |   | 82,649 |
| Total      impaired loans                                |   | $                | 332,731 |   |   | $ | 165,036 |
|                                                     |   |             |   |   |   |   |   |
| Allowance      for loan losses related to impaired loans |   | $                | 20,138 |   |   | $ | 16,769 |

----

|                                                   |   | December      31, 2009 |         |   | December      31, 2008                |   |
|--------------------------------------------------------|--------|------------------------|--------------|--------|---------------------------------------|--------|
|                                                   |   |   Amount     |         |   | Percentageof      TotalPortfolioLoans |   |   |   Amount |   |   | Percentageof      TotalPortfolioLoans |   |
|                                                   |
|                                                   |
|                                                   |
| Loans      secured by real estate:                     |   |                   |         |   |                                  |   |   |   |   |   |   |   |
| Commercial                                             |   | $                      | 57,216       |   |                                  |   | 1.41 | % |   | $ | 30,007 |   |   |   | 0.63 | % |
| Residential      (including multi-family)              |   |                   | 28,331       |   |                                  |   | 0.70 |   |   |   | 21,645 |   |   |   | 0.46 |   |
| Construction,      land development andother      land |   |                   |  22,864 |   |                                  |   |  0.57 |   |   |   |  17,496 |   |   |   |  0.37 |   |
| Total      loans secured by real estate                |   |                   | 108,411      |   |                                  |   | 2.68 |   |   |   | 69,148 |   |   |   | 1.46 |   |
| Commercial      and other business-purposeloans        |   |                   |  34,638 |   |                                  |   |  0.85 |   |   |   |  22,547 |   |   |   |  0.47 |   |
| Consumer                                               |   |                   | 1,405        |   |                                  |   | 0.03 |   |   |   | 1,032 |   |   |   | 0.02 |   |
| Other                                                  |   |                   | 210          |   |                                  |   | 0.01 |   |   |   | 313 |   |   |   | 0.01 |   |
| Total      allowance for loan losses                   |   | $                      | 144,664      |   |                                  |   | 3.57 | % |   | $ | 93,040 |   |   |   | 1.96 | % |

----

|                                   |   | 2009   |    |   | 2008   |   |
|----------------------------------------|--------|--------|---------|--------|--------|--------|
|                                   |   |   |    |   |   |   |
| Land,      buildings and improvements  |   | $      | 19,303  |   |   | $      | 21,047 |   |
| Leasehold      improvements            |   |   | 27,716  |   |   |   | 27,862 |   |
| Equipment,      furniture and software |   |   | 53,026  |   |   |   | 57,587 |   |
|                                   |   |   | 100,045 |   |   |   | 106,496 |   |
| Less      accumulated depreciation     |   |   | (51,659 | )      |   |   | (47,247 | ) |
|                                   |   | $      | 48,386  |   |   | $      | 59,249 |   |

----

| 2010                     |   | $      | 11,602 |   |   |   |   |   |
|--------------------------|--------|--------|--------|--------|--------|--------|--------|--------|
| 2011                     |   |   | 11,565 |   |   |   |   |   |
| 2012                     |   |   | 10,564 |   |   |   |   |   |
| 2013                     |   |   | 8,489  |   |   |   |   |   |
| 2014                     |   |   | 7,442  |   |   |   |   |   |
| 2015      and thereafter |   |   | 22,307 |   |   |   |   |   |
|                     |   | $      | 71,969 |   |   |   |   |   |

| 2010                     |   | $      | 1,866,810 |   |   |   |   |   |
|--------------------------|--------|--------|-----------|--------|--------|--------|--------|--------|
| 2011                     |   |   | 443,493   |   |   |   |   |   |
| 2012                     |   |   | 70,761    |   |   |   |   |   |
| 2013                     |   |   | 25,258    |   |   |   |   |   |
| 2014                     |   |   | 22,494    |   |   |   |   |   |
| 2015      and thereafter |   |   | 376       |   |   |   |   |   |
|                     |   | $      | 2,429,192 |   |   |   |   |   |

|                         |   | 2009   |    |   | 2008   |   |
|------------------------------|--------|--------|---------|--------|--------|--------|
|                         |   |   |    |   |   |   |
| FHLB      borrowings         |   | $      | 260,638 |   |   | $      | 429,889 |   |
| Promissory      notes        |   |   | 14,011  |   |   |   | 14,011 |   |
| Federal      funds purchased |   |   | --      |   |   |   | 2,000 |   |
| Repurchase      agreements   |   |   | 1,510   |   |   |   | 1,025 |   |
|                         |   | $      | 276,159 |   |   | $      | 446,925 |   |

----

| 2010                     |   | $      | 172,967 |   |
|--------------------------|--------|--------|---------|--------|
| 2011                     |   |   | 50,735  |   |
| 2012                     |   |   | 19,967  |   |
| 2013                     |   |   | 19,720  |   |
| 2014                     |   |   | 2,480   |   |
| 2015      and thereafter |   |   | 10,290  |   |
|                     |   | $      | 276,159 |   |

|                              |   |                            |   |            |   |   |  Aggregate |   |   |                     |    |   |       |   |    |   |
|-----------------------------------|--------|---------------------------------|--------|-----------------|--------|--------|-----------------|--------|--------|--------------------------|---------|--------|------------|--------|---------|--------|
|                              |   | Current                    |   | Scheduled  |   |   | Liquidation     |   |   | Net      Carrying Amount |    |
|                              |   | Interest      Rate              |   | Maturity        |   |   | Amount          |   |   | 2009                |    |   | 2008  |   |
|                              |   |                            |   |            |   |   |            |   |   |                     |    |   |       |   |    |   |
| Capitol      Trust I              |   |   8.50%      fixed    |   | 2027            |   | $      | 25,300          |   |   | $                        | 24,651  |   |       | $      | 24,615  |   |
| Capitol      Trust II             |   | 10.25%      fixed               |   | 2031            |   |   | 10,000          |   |   |                     | 9,783   |   |       |   | 9,773   |   |
| Capitol      Statutory Trust III  |   |   3.86%      variable |   | 2031            |   |   | 15,000          |   |   |                     | 14,676  |   |       |   | 14,660  |   |
| Capitol      Trust IV             |   |   3.93%      variable |   | 2032            |   |   | 3,000           |   |   |                     | 2,924   |   |       |   | 2,921   |   |
| Capitol      Trust VI             |   |   3.58%      variable |   | 2033            |   |   | 10,000          |   |   |                     | 9,768   |   |       |   | 9,758   |   |
| Capitol      Trust VII            |   |   7.78%      fixed    |   | 2033            |   |   | 10,000          |   |   |                     | 9,881   |   |       |   | 9,876   |   |
| Capitol      Statutory Trust VIII |   |   3.20%      variable |   | 2033            |   |   | 20,000          |   |   |                     | 19,689  |   |       |   | 19,676  |   |
| Capitol      Trust IX             |   |   7.69%      fixed    |   | 2034            |   |   | 10,000          |   |   |                     | 9,947   |   |       |   | 9,945   |   |
| Capitol      Trust X              |   |   6.55%      fixed    |   | 2037            |   |   | 33,000          |   |   |                     | 33,000  |   |       |   | 33,000  |   |
| Capitol      Trust XI             |   |   1.90%      variable |   | 2037            |   |   | 20,000          |   |   |                     | 20,000  |   |       |   | 20,000  |   |
| Capitol      Trust XII            |   | 10.50%      fixed               |   | 2038            |   |   | 14,541          |   |   |                     | 13,122  |   |       |   | 13,069  |   |
|                              |   |                            |   |            |   | $      | 170,841         |   |   | $                        | 167,441 |   |       | $      | 167,293 |   |

----

----

|                         |   | 2009                   |         |   | 2008                                           |   |   | 2007                   |   |
|------------------------------|--------|------------------------|--------------|--------|------------------------------------------------|--------|--------|------------------------|--------|
|                         |   |  RestrictedShares |         |   | Weighted-AverageGrant      DateFair      Value |   |   |  RestrictedShares |   |   | Weighted-AverageGrant      DateFair      Value |   |   |  RestrictedShares |   |   | Weighted-AverageGrant      DateFair      Value |   |
|                         |   |                   |         |   |                                           |   |   |                   |   |   |   |   |   |   |   |   |   |   |
| Unvested      at January 1   |   |                   | 136,490      |   |                                           | $      | 29.55  |                   |   |   | 207,422 |   |   | $ | 27.80 |   |   |   | 224,416 |   |   | $ | 27.72 |   |
| Granted                      |   |                   | 37,000       |   |                                           |   | 1.70   |                   |   |   | 31,790 |   |   |   | 16.17 |   |   |   | 43,972 |   |   |   | 21.55 |   |
| Vested                       |   |                   | (19,847      | )      |                                           |   | 29.53  |                   |   |   | (47,000 | ) |   |   | 21.23 |   |   |   | (58,966 | ) |   |   | 22.28 |   |
| Forfeited                    |   |                   |  (8,700 | )      |                                           |   | 34.69  |                   |   |   | (55,722 | ) |   |   | 22.41 |   |   |   |  (2,000 | ) |   |   | 44.56 |   |
| Unvested      at December 31 |   |                   | 144,943      |   |                                           | $      | 22.14  |                   |   |   | 136,490 |   |   | $ | 29.55 |   |   |   | 207,422 |   |   | $ | 27.80 |   |

|                                  |   | NumberOutstanding |           |   | ExercisePrice      Range |   |   | WeightedAverageExercise      Price |   |
|---------------------------------------|--------|-------------------|----------------|--------|--------------------------|--------|--------|------------------------------------|--------|
|                                  |   |              |           |   |                     |   |   |                               |   |   |   |   |   |
| Outstanding      at January 1, 2006   |   |              | 2,570,091      |   |                     | $      | 10.81  |                               | to     |   | $ | 37.48 |   |   | $ | 26.86 |   |
| Granted      in 2007                  |   |              | 168,720        |   |                     |   | 22.46  |                               | to     |   |   | 46.20 |   |   |   | 25.09 |   |
| Exercised      in 2007                |   |              | (277,149       | )      |                     |   | 10.81  |                               | to     |   |   | 33.01 |   |   |   | 16.98 |   |
| Cancelled      or expired in 2007     |   |              |  (1,580   | )      |                     |   |   |                               |   |   |   |   |   |   |   |   |
| Outstanding      at December 31, 2007 |   |              | 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 |   |

----

|                         |   | 2009         |   | 2008         |
|------------------------------|--------|--------------|--------|--------------|
|                         |   |         |   |         |
| Risk-free      interest rate |   | 2.62%        |   | 3.8%         |
| Stock      price volatility  |   | 0.76         |   | 0.36         |
| Dividend      yield          |   | --           |   | 5.0%         |
| Expected      option life    |   | 5      years |   | 7      years |

|                     |                |   |              |   |          | Weighted      Average |
|--------------------------|---------------------|--------|-------------------|--------|---------------|-----------------------|
| Exercise      PriceRange |                |   | NumberOutstanding |   |          | ExercisePrice         |   | RemainingContractualLife |
|                     |                |   |              |   |          |                  |   |   |
| $                        | 1.00      to 14.99  |   |              |   | 404,022       |                  |   | $ | 2.70 |   | 5.09      years |
| $                        | 15.00      to 19.99 |   |              |   | 90,411        |                  |   |   | 16.53 |   | 1.40      years |
| $                        | 20.00      to 24.99 |   |              |   | 465,159       |                  |   |   | 21.76 |   | 2.34      years |
| $                        | 25.00      to 29.99 |   |              |   | 541,897       |                  |   |   | 27.07 |   | 0.68      years |
| $                        | 30.00      to 34.99 |   |              |   | 637,484       |                  |   |   | 32.00 |   | 1.80      years |
| $                   | 35.00      or more  |   |              |   |  365,510 |                  |   |   | 37.93 |   | 2.93      years |
|                     |                |   |              |   | 2,504,483     |                  |   |   |   |   |   |

----

|                                                                                                                                                                                                                   |   | 2009   |                        |   | 2008   |   |    | 2007   |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|-----------------------------|--------|--------|--------|---------|--------|--------|
| Federal:                                                                                                                                                                                                               |   |   |                        |   |   |   |    |   |   |
| Current      expense (benefit)                                                                                                                                                                                         |   | $      | (43,594                     | )      |   | $      | (823    | )      |   | $ | 13,003 |   |
| Deferred      (benefit)                                                                                                                                                                                                |   |   | (39,173                     | )      |   |   | (26,029 | )      |   |   | (10,397 | ) |
|                                                                                                                                                                                                                   |   |   | (82,767                     | )      |   |   | (26,852 | )      |   |   | 2,606 |   |
| State:                                                                                                                                                                                                                 |   |   |                        |   |   |   |    |   |   |   |   |   |
| Current      expense (benefit)                                                                                                                                                                                         |   |   | 868                         |   |   |   | (1,748  | )      |   |   | 218 |   |
| Deferred      (benefit)                                                                                                                                                                                                |   |   | (4,181                      | )      |   |   | (1,548  | )      |   |   |   |   |
|                                                                                                                                                                                                                   |   |   | (3,313                      | )      |   |   | (3,296  | )      |   |   | 218 |   |
|                                                                                                                                                                                                                   |   |   | (86,080                     | )      |   |   | (30,148 | )      |   |   | 2,824 |   |
| Establishment      of valuation allowance for          deferred tax assets not meeting the          more-likely-than-not criteria for          realization |   |   |      104,498 |   |   |   |    |   |   |   |   |   |
|                                                                                                                                                                                                                   |   |   |                        |   |   |   |    |   |   |   |   |   |
| Total      income tax expense (benefit)                                                                                                                                                                                |   | $      | 18,418                      |   |   | $      | (30,148 | )      |   | $ | 2,824 |   |

----

|                                                                                               |   | 2009   |         |   | 2008   |   |    | 2007   |   |
|----------------------------------------------------------------------------------------------------|--------|--------|--------------|--------|--------|--------|---------|--------|--------|
|                                                                                               |   |   |         |   |   |   |    |   |   |
| Federal      income tax expense (benefit)         computed at statutory rate of 35% |   | $      | (86,143      | )      |   | $      | (28,910 | )      |   | $ | 2,155 |   |
| State      income taxes (benefit)                                                                  |   |   | (3,313       | )      |   |   | (3,296  | )      |   |   | 218 |   |
| Valuation      allowance on deferred state         income tax assets                |   |   | 8,622        |   |   |   |    |   |   |   |   |   |
| Federal      tax effect of:                                                                        |   |   |         |   |   |   |    |   |   |   |   |   |
| Amortization      of intangibles                                                                   |   |   | 1,213        |   |   |   | 19      |   |   |   | 54 |   |
| State      income taxes                                                                            |   |   | 1,160        |   |   |   | 1,154   |   |   |   | (76 | ) |
| Valuation      allowance on state taxes                                                            |   |   | (3,018       | )      |   |   |    |   |   |   |   |   |
| Valuation      allowance recorded for         deferred federal income tax assets    |   |   |  95,876 |   |   |   |    |   |   |   |   |   |
| Other                                                                                              |   |   | 4,021        |   |   |   | 885     |   |   |   | 473 |   |
|                                                                                               |   |   |         |   |   |   |    |   |   |   |   |   |
| Total      income tax expense (benefit)                                                            |   | $      | 18,418       |   |   | $      | (30,148 | )      |   | $ | 2,824 |   |

----

|                                                                        |   | 2009   |     |   | 2008   |   |
|-----------------------------------------------------------------------------|--------|--------|----------|--------|--------|--------|
|                                                                        |   |   |     |   |   |   |
| Allowance      for loan losses                                              |   | $      | 54,725   |   |   | $      | 35,936 |   |
| Net      operating losses of subsidiaries                                   |   |   | 36,018   |   |   |   | 25,719 |   |
| Deferred      compensation                                                  |   |   | 3,363    |   |   |   | 3,685 |   |
| Depreciation                                                                |   |   | (3,549   | )      |   |   | (4,253 | ) |
| Start-up      costs of de novo      banks                                   |   |   | 4,450    |   |   |   | 5,372 |   |
| Fair      value adjustment for investmentsecurities      available for sale |   |   |  32 |   |   |   | (74 | ) |
| Other      real estate owned                                                |   |   | 11,112   |   |   |   | 2,858 |   |
| Net      deferred costs of loan originations                                |   |   | (5,978   | )      |   |   | (6,268 | ) |
| Nonaccrued      interest                                                    |   |   | 6,879    |   |   |   | 2,410 |   |
| Other,      net                                                             |   |   | 2,828    |   |   |   | 1,035 |   |
|                                                                        |   |   | 109,880  |   |   |   | 66,420 |   |
| Less      valuation allowance                                               |   |   | (104,498 | )      |   |   | -- |   |
|                                                                        |   | $      | 5,382    |   |   | $      | 66,420 |   |

|      |   | Federal |   |   | State  |   |
|-----------|--------|---------|--------|--------|--------|--------|
| 2013-2015 |   |    |   |   | $      | 42,739 |   |
| 2016-2018 |   |    |   |   |   | 3,660  |   |
| 2019-2021 |   |    |   |   |   | 16,455 |   |
| 2022-2024 |   | $       | 40     |   |   |   | 3,707 |   |
| 2025-2027 |   |    | 32,678 |   |   |   | 9,293 |   |
| 2028-2029 |   |    | 62,741 |   |   |   | 13,723 |   |
|      |   | $       | 95,459 |   |   | $      | 89,577 |   |

----

|                                                                                                                                                                                             |   | 2009   |                       |   | 2008   |   |                       | 2007   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|----------------------------|--------|--------|--------|----------------------------|--------|
|                                                                                                                                                                                             |   |   |                       |   |   |   |                       |   |
| Numerator—net      income (loss) attributable to CapitolBancorp      Limited                                                                                                               |   | $      | (195,169                   | )      |   | $      | (28,607                    | )      |   | $ | 21,937 |
|                                                                                                                                                                                             |   |   |                       |   |   |   |                       |   |   |   |   |
| Denominator:                                                                                                                                                                                     |   |   |                       |   |   |   |                       |   |   |   |   |
| Weighted      average number of shares outstanding,excluding      unvested restricted shares(denominator      for basic net income (loss) per shareattributable      to Capitol Bancorp Limited) |   |   |      17,302 |   |   |   |      17,147 |   |   |   |      16,967 |
| Effect      of dilutive securities:                                                                                                                                                              |   |   |                       |   |   |   |                       |   |   |   |   |
| Unvested      shares of restricted stock                                                                                                                                                         |   |   | --                         |   |   |   | --                         |   |   |   | 70 |
| Stock      options                                                                                                                                                                               |   |   | --                         |   |   |   | --                         |   |   |   | 179 |
| Potential      dilution                                                                                                                                                                          |   |   | --                         |   |   |   | --                         |   |   |   | 249 |
|                                                                                                                                                                                             |   |   |                       |   |   |   |                       |   |   |   |   |
| Denominator      for diluted net income (loss) per share—weighted      average number of shares and potentialdilution                                                                      |   |   |    17,302        |   |   |   |    17,147        |   |   |   |    17,216 |
|                                                                                                                                                                                             |   |   |                       |   |   |   |                       |   |   |   |   |
| Number      of antidilutive stock options excluded fromdiluted      net income (loss) per share computation                                                                                      |   |   |  2,504                |   |   |   |  2,374                |   |   |   |  1,063 |
|                                                                                                                                                                                             |   |   |                       |   |   |   |                       |   |   |   |   |
| Number      of antidilutive unvested shares of restrictedstock      excluded from diluted net income (loss) pershare      computation                                                            |   |   |    145           |   |   |   |    136           |   |   |   |    26 |
|                                                                                                                                                                                             |   |   |                       |   |   |   |                       |   |   |   |   |
| Number      of antidilutive warrants excluded from netloss      per share computation                                                                                                            |   |   |  76                   |   |   |   |                       |   |   |   |   |

----

----

|                                           |   | 2009        |   |   | 2008                                           |   |
|------------------------------------------------|--------|-------------|--------|--------|------------------------------------------------|--------|
|                                           |   |  Total |   |   | SignificantOtherObservableInputs(Level      2) |   |   |  Total |   |   | SignificantOtherObservableInputs(Level      2) |   |
|                                           |   |        |   |   |                                           |   |   |   |   |   |   |   |
| Investment      securities available for sale: |   |        |   |   |                                           |   |   |   |   |   |   |   |
| United      States treasury                    |   | $           | 1,500  |   |                                           | $      | 1,500 |   |   |   |   |   |   |   |
| United      States government agencies         |   |        | 13,941 |   |                                           |   | 13,941 |   |   | $ | 9,913 |   |   | $ | 9,913 |   |
| Mortgage-backed                                |   |        | 24,598 |   |                                           |   | 24,598 |   |   |   | 4,890 |   |   |   | 4,890 |   |
| Municipalities                                 |   |        | 739    |   |                                           |   | 739 |   |   |   | 781 |   |   |   | 781 |   |
|                                           |   | $           | 40,778 |   |                                           | $      | 40,778 |   |   | $ | 15,584 |   |   | $ | 15,584 |   |

|                             |   | 2009        |    |   | 2008                                        |   |
|----------------------------------|--------|-------------|---------|--------|---------------------------------------------|--------|
|                             |   |  Total |    |   | SignificantUnobservableInputs(Level      3) |   |   |  Total |   |   | SignificantOtherObservableInputs(Level      2) |   |
|                             |   |        |    |   |                                        |   |   |   |   |   |   |   |
| Impaired      Loans (1)          |   | $           | 138,982 |   |                                        | $      | 138,982 |   |   | $ | 103,580 |   |   | $ | 103,580 |   |
|                             |   |        |    |   |                                        |   |   |   |   |   |   |   |   |   |   |   |
| Other      real estate owned (1) |   | $           | 111,820 |   |                                        | $      | 111,820 |   |   | $ | 67,171 |   |   | $ | 67,171 |   |

| (1)   | Represents      carrying value based on the appraised value of the applicable collateral      or foreclosed property or other estimates of fair  value. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

|                                                              |   | 2009     |          |   | 2008                |   |
|-------------------------------------------------------------------|--------|---------------|---------------|--------|--------------------------|--------|
|                                                              |   | CarryingValue |          |   | EstimatedFair      Value |   |   | CarryingValue |   |   | EstimatedFair      Value |   |
| Financial      assets:                                            |   |          |          |   |                     |   |   |   |   |   |   |   |
| Cash      and cash equivalents                                    |   | $             | 808,921       |   |                     | $      | 808,921 |   |   | $ | 624,366 |   |   | $ | 624,366 |   |
| Loans      held for sale                                          |   |          | 16,132        |   |                     |   | 16,132 |   |   |   | 10,474 |   |   |   | 10,474 |   |
| Investment      securities:                                       |   |          |          |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Available      for sale                                           |   |          | 40,778        |   |                     |   | 40,778 |   |   |   | 15,584 |   |   |   | 15,584 |   |
| Held      for long-term investment                                |   |          | 30,565        |   |                     |   | 30,565 |   |   |   | 32,856 |   |   |   | 32,856 |   |
|                                                              |   |          | 71,343        |   |                     |   | 71,343 |   |   |   | 48,440 |   |   |   | 48,440 |   |
| Portfolio      loans:                                             |   |          |          |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Loans      secured by real estate:                                |   |          |          |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Commercial                                                        |   |          | 1,990,332     |   |                     |   | 1,910,631 |   |   |   | 2,115,515 |   |   |   | 2,105,204 |   |
| Residential      (including multi-family)                         |   |          | 785,362       |   |                     |   | 752,400 |   |   |   | 879,754 |   |   |   | 865,406 |   |
| Construction,      land development andother      land            |   |          |  509,474 |   |                     |   |  434,278 |   |   |   |  797,486 |   |   |   |  753,028 |   |
| Total      loans secured by real estate                           |   |          | 3,285,168     |   |                     |   | 3,097,309 |   |   |   | 3,792,755 |   |   |   | 3,723,638 |   |
| Commercial      and other business-purpose        loans |   |          |  684,253 |   |                     |   |  667,660 |   |   |   |  845,593 |   |   |   |  830,283 |   |
| Consumer                                                          |   |          | 44,168        |   |                     |   | 44,533 |   |   |   | 61,340 |   |   |   | 62,313 |   |
| Other                                                             |   |          | 33,512        |   |                     |   | 31,781 |   |   |   | 35,541 |   |   |   | 32,504 |   |
| Total      portfolio loans                                        |   |          | 4,047,101     |   |                     |   | 3,841,283 |   |   |   | 4,735,229 |   |   |   | 4,648,738 |   |
| Less      allowance for loan losses                               |   |          | (144,664      | )      |                     |   | (144,664 | ) |   |   | (93,040 | ) |   |   | (93,040 | ) |
| Net      portfolio loans                                          |   |          | 3,902,437     |   |                     |   | 3,696,619 |   |   |   | 4,642,189 |   |   |   | 4,555,698 |   |
|                                                              |   |          |          |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Financial      liabilities:                                       |   |          |          |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Deposits:                                                         |   |          |          |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Noninterest-bearing                                               |   |          | 679,100       |   |                     |   | 679,100 |   |   |   | 700,786 |   |   |   | 700,786 |   |
| Interest-bearing:                                                 |   |          |          |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Demand      accounts                                              |   |          | 1,302,341     |   |                     |   | 1,302,341 |   |   |   | 1,231,170 |   |   |   | 1,231,170 |   |
| Time      certificates of less than $100,000                      |   |          | 942,303       |   |                     |   | 944,579 |   |   |   | 1,160,221 |   |   |   | 1,161,411 |   |
| Time      certificates of $100,000 or more                        |   |          | 1,486,889     |   |                     |   | 1,489,109 |   |   |   | 1,405,435 |   |   |   | 1,408,431 |   |
| Total      interest-bearing deposits                              |   |          | 3,731,533     |   |                     |   | 3,736,029 |   |   |   | 3,796,826 |   |   |   | 3,801,012 |   |
| Total      deposits                                               |   |          | 4,410,633     |   |                     |   | 4,415,131 |   |   |   | 4,497,612 |   |   |   | 4,501,800 |   |
| Notes      payable and short-term borrowings                      |   |          | 276,159       |   |                     |   | 276,265 |   |   |   | 446,925 |   |   |   | 447,490 |   |
| Subordinated      debentures                                      |   |          | 167,441       |   |                     |   | 170,841 | (1) |   |   | 167,293 |   |   |   | 170,841 | (1) |

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

----

----

----

----

----

|                                                                  |   |    | December      31 |    |
|-----------------------------------------------------------------------|--------|---------|------------------|---------|
|                                                                  |   |    | 2009             |    |   |   | 2008 |   |
| Tier      1 capital to average adjusted total assets:                 |   |    |             |    |   |   |   |   |
| Minimum      required amount                                          |   | ≥ | $                | 210,651 |   |   | ≥ | $ | 219,176 |   |
| Actual      amount                                                    |   |    | $                | 242,547 |   |   |   | $ | 587,475 |   |
| Ratio                                                                 |   |    |             | 4.61    | % |   |   |   | 10.72 | % |
|                                                                  |   |    |             |    |   |   |   |   |   |   |
| Tier      1 capital to risk-weighted assets:                          |   |    |             |    |   |   |   |   |   |   |
| Minimum      required amount(1)                                       |   | ≥ | $                | 162,089 |   |   | ≥ | $ | 194,689 |   |
| Actual      amount                                                    |   |    | $                | 242,547 |   |   |   | $ | 587,475 |   |
| Ratio                                                                 |   |    |             | 5.99    | % |   |   |   | 12.07 | % |
|                                                                  |   |    |             |    |   |   |   |   |   |   |
| Combined      Tier 1 and Tier 2 capital to risk-weighted      assets: |   |    |             |    |   |   |   |   |   |   |
| Minimum      required amount(2)                                       |   | ≥ | $                | 324,177 |   |   | ≥ | $ | 389,379 |   |
| Amount      required to meet 'Well-Capitalized'category(3)            |   | ≥ | $                | 405,222 |   |   | ≥ | $ | 486,724 |   |
| Actual      amount                                                    |   |    | $                | 383,449 |   |   |   | $ | 669,113 |   |
| Ratio                                                                 |   |    |             | 9.46    | % |   |   |   | 13.75 | % |

| (1)    | The      minimum required ratio of Tier 1 capital to risk-weighted assets is      4%.                                                                             |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (2)    | The      minimum required ratio of Tier 1 and Tier 2 capital to risk-weighted      assets is 8%.                                                                  |
| (3)    | In      order to be classified as a 'well-capitalized' institution, the ratio of      Tier 1 and Tier 2 capital to risk-weighted      assets must be 10% or more. |
|   |

----

|                                                                            |   | -December      31- |      |
|---------------------------------------------------------------------------------|--------|--------------------|-----------|
|                                                                            |   | 2009               |      |   | 2008 |   |
|                                                                            |   | (in      $1,000s)  |      |
| Assets                                                                          |   |               |      |   |   |   |
| Cash      on deposit, principally with subsidiary banks                         |   | $                  | 2,081     |   |   | $ | 2,037 |   |
| Money      market funds on deposit, principally with subsidiarybanks            |   |               |  880 |   |   |   |  25,058 |   |
| Cash      and cash equivalents                                                  |   |               | 2,961     |   |   |   | 27,095 |   |
| Investment      securities                                                      |   |               | 3,151     |   |   |   | 3,401 |   |
| Loans,      net                                                                 |   |               | 9,931     |   |   |   | 18,691 |   |
| Investments      in and advances to subsidiaries                                |   |               | 355,840   |   |   |   | 492,776 |   |
| Investment      in and advances to Amera Mortgage Corporation                   |   |               | 432       |   |   |   | 482 |   |
| Investment      in and advances to CDBL III                                     |   |               | 1,495     |   |   |   | -- |   |
| Equipment,      software and furniture, net                                     |   |               | 7,159     |   |   |   | 9,359 |   |
| Other      assets                                                               |   |               | 19,751    |   |   |   | 31,496 |   |
|                                                                            |   |               |      |   |   |   |   |   |
| Total      assets                                                               |   | $                  | 400,720   |   |   | $ | 583,300 |   |
|                                                                            |   |               |      |   |   |   |   |   |
| Liabilities      and Stockholders' Equity                                       |   |               |      |   |   |   |   |   |
| Liabilities:                                                                    |   |               |      |   |   |   |   |   |
|    Accounts      payable, accrued expenses and other liabilities |   | $                  | 26,486    |   |   | $ | 10,702 |   |
|    Debt      obligations                                         |   |               | 14,011    |   |   |   | 20,011 |   |
|    Subordinated      debentures                                  |   |               | 198,888   |   |   |   | 198,739 |   |
| Total      liabilities                                                          |   |               | 239,385   |   |   |   | 229,452 |   |
| Stockholders'      equity                                                       |   |               | 161,335   |   |   |   | 353,848 |   |
|                                                                            |   |               |      |   |   |   |   |   |
| Total      liabilities and stockholders' equity                                 |   | $                  | 400,720   |   |   | $ | 583,300 |   |

----

|                                                                                                                                                                     |   | -Year      Ended December 31- |     |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------|----------|
|                                                                                                                                                                     |   | 2009                          |     |   | 2008 |   |   | 2007 |   |
|                                                                                                                                                                     |   | (in      $1,000s)             |     |
| Income:                                                                                                                                                                  |   |                          |     |   |   |   |   |   |   |
| Intercompany      fees                                                                                                                                                   |   | $                             | 35,243   |   |   | $ | 28,847 |   |   | $ | 24,854 |   |
| Dividends      from subsidiaries                                                                                                                                         |   |                          | 964      |   |   |   | 19,634 |   |   |   | 32,750 |   |
| Interest                                                                                                                                                                 |   |                          | 1,596    |   |   |   | 169 |   |   |   | 610 |   |
| Other                                                                                                                                                                    |   |                          | 2,870    |   |   |   | 3,318 |   |   |   | 2,021 |   |
| Total      income                                                                                                                                                        |   |                          | 40,673   |   |   |   | 51,968 |   |   |   | 60,235 |   |
| Expenses:                                                                                                                                                                |   |                          |     |   |   |   |   |   |   |   |   |   |
| Interest                                                                                                                                                                 |   |                          | 15,292   |   |   |   | 14,372 |   |   |   | 12,174 |   |
| Salaries      and employee benefits                                                                                                                                      |   |                          | 24,032   |   |   |   | 22,415 |   |   |   | 11,756 |   |
| Occupancy                                                                                                                                                                |   |                          | 2,297    |   |   |   | 2,509 |   |   |   | 2,049 |   |
| Equipment      rent and depreciation                                                                                                                                     |   |                          | 6,236    |   |   |   | 4,700 |   |   |   | 3,366 |   |
| Other                                                                                                                                                                    |   |                          | 9,831    |   |   |   | 5,332 |   |   |   | 8,933 |   |
| Total      expenses                                                                                                                                                      |   |                          | 57,688   |   |   |   | 49,328 |   |   |   | 38,278 |   |
| Income      (losses) before equity in undistributed net         losses of consolidated subsidiaries and income    taxes      (credit) |   |                          | (17,015  | ) |   |   |    2,640 |   |   |   |    21,957 |   |
| Equity      in undistributed net losses ofconsolidated      subsidiaries                                                                                                 |   |                          | (175,482 | ) |   |   | (39,320 | ) |   |   | (4,469 | ) |
| Income      (loss) before income taxes (credit)                                                                                                                          |   |                          | (192,497 | ) |   |   | (36,680 | ) |   |   | 17,488 |   |
| Income      taxes (credit)                                                                                                                                               |   |                          | 2,672    |   |   |   | (8,073 | ) |   |   | (4,449 | ) |
|                                                                                                                                                                     |   |                          |     |   |   |   |   |   |   |   |   |   |
| Net      income (loss)                                                                                                                                                   |   | $                             | (195,169 | ) |   | $ | (28,607 | ) |   | $ | 21,937 |   |

----

|                                                                                          |   | -Year      Ended December 31- |         |
|-----------------------------------------------------------------------------------------------|--------|-------------------------------|--------------|
|                                                                                          |   | 2009                     |         |   | 2008  |   |   | 2007  |   |
|                                                                                          |   | (in      $1,000s)             |         |
| OPERATING      ACTIVITIES                                                                     |   |                          |         |   |   |   |   |   |   |
| Net      income (loss)                                                                        |   | $                             | (195,169     | ) |   | $ | (28,607 | ) |   | $ | 21,937 |   |
| Adjustments      to reconcile net income (loss) to net cashused      by operating activities: |   |                          |         |   |   |   |   |   |   |   |   |   |
| Equity      in undistributed net earnings (losses) ofsubsidiaries                             |   |                          | 175,482      |   |   |   | 39,320 |   |   |   | 4,469 |   |
| Depreciation      and amortization of intangibles                                             |   |                          | 2,624        |   |   |   | 2,583 |   |   |   | 2,189 |   |
| Loss      on sale of equipment and furniture                                                  |   |                          | 116          |   |   |   |   |   |   |   |   |   |
| Decrease      (increase) in amounts due from subsidiaries andother      assets                |   |                          | 1,687        |   |   |   | (25,179 | ) |   |   | (33,586 | ) |
| Increase      in accounts payable, accrued expenses and otherliabilities                      |   |                          |  15,784 |   |   |   |  932 |   |   |   |  1,428 |   |
| NET      CASH PROVIDED (USED) BY OPERATINGACTIVITIES                                          |   |                          |  524    |   |   |   | (10,951 | ) |   |   | (3,563 | ) |
|                                                                                          |   |                          |         |   |   |   |   |   |   |   |   |   |
| INVESTING      ACTIVITIES                                                                     |   |                          |         |   |   |   |   |   |   |   |   |   |
| Net      cash investments in subsidiaries                                                     |   |                          | (25,073      | ) |   |   | (35,145 | ) |   |   | (16,830 | ) |
| Purchases      of investment securities                                                       |   |                          | (772         | ) |   |   | (1,800 | ) |   |   |   |   |
| Net      decrease (increase) in loans                                                         |   |                          | 8,760        |   |   |   | 9,551 |   |   |   | (16,928 | ) |
| Proceeds      from sales of equipment and furniture                                           |   |                          | 35           |   |   |   |   |   |   |   | 126 |   |
| Purchases      of equipment and furniture                                                     |   |                          | (575         | ) |   |   | (1,622 | ) |   |   | (3,170 | ) |
| NET      CASH USED BY INVESTING ACTIVITIES                                                    |   |                          | (17,625      | ) |   |   | (29,016 | ) |   |   | (36,802 | ) |
|                                                                                          |   |                          |         |   |   |   |   |   |   |   |   |   |
| FINANCING      ACTIVITIES                                                                     |   |                          |         |   |   |   |   |   |   |   |   |   |
| Net      borrowings (payments) from debt obligations                                          |   |                          | (6,000       | ) |   |   | 20,011 |   |   |   |   |   |
| Net      proceeds from issuance of subordinated debentures                                    |   |                          |         |   |   |   | 34,555 |   |   |   | 55,000 |   |
| Net      proceeds from issuance of common stock                                               |   |                          |         |   |   |   | 1,950 |   |   |   | 4,706 |   |
| Tax      benefit (effect) from share-based payments                                           |   |                          | (169         | ) |   |   | 20 |   |   |   | 1,688 |   |
| Acquisition      of shares for employee benefit trust                                         |   |                          |         |   |   |   |   |   |   |   | (2,482 | ) |
| Cash      dividends paid                                                                      |   |                          | (864         | ) |   |   | (8,658 | ) |   |   | (17,196 | ) |
| NET      CASH PROVIDED (USED) BY FINANCINGACTIVITIES                                          |   |                          | (7,033       | ) |   |   |  47,878 |   |   |   |  41,716 |   |
| INCREASE      (DECREASE) IN CASH AND CASHEQUIVALENTS                                          |   |                          | (24,134      | ) |   |   |  7,911 |   |   |   |  1,351 |   |
| Cash      and cash equivalents at beginning of year                                           |   |                          | 27,095       |   |   |   | 19,184 |   |   |   | 17,833 |   |
|                                                                                          |   |                          |         |   |   |   |   |   |   |   |   |   |
| CASH      AND CASH EQUIVALENTS AT END OF YEAR                                                 |   | $                             | 2,961        |   |   | $ | 27,095 |   |   | $ | 19,184 |   |

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