----

|  x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE             |
|---------|---------------------------------------------------------------------|
|    | SECURITIES EXCHANGE ACT OF 1934                                     |
|    | For the quarterly period ended June 30, 2012                        |
|    |  OR                                                            |
|  o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE            |
|    | SECURITIES EXCHANGE ACT OF 1934                                     |
|    |                                                           |
|    | For the transition period from ________________ to ________________ |
| Michigan                                 |   | 38-2761672                        |
|------------------------------------------|--------|-----------------------------------|
| (State or other jurisdiction of          |   | (IRS Employer Identification No.) |
| incorporation or organization)           |   |                              |
| Capitol Bancorp Center                   |   |                              |
| Fourth Floor                             |   |                              |
| 200 N. Washington Square                 |   |                              |
| Lansing, Michigan                        |   | 48933                             |
| (Address of principal executive offices) |   | (Zip Code)                        |
| Yes   T | No   £ |
|--------------|------------------|
| Yes   T | No   £ |
|--------------|------------------|
| Large accelerated filer   £                                                           |   |                               | Accelerated filer   £ |
|-------------------------------------------------------------------------------------------------|--------|------------------------------------|---------------------------------|
| Non-accelerated filer     £   (Do not check if a smaller reporting company) |   | Smaller reporting company   T |
| Yes   £ | No   T |
|-------------------|-------------|
| Class                      |   | Outstanding at July 31, 2012 |
|----------------------------|--------|------------------------------|
| Common Stock, No par value |   | 41,038,408 shares       |

----

----

----

----

|  Item 1.       |  Financial Statements (unaudited):                                                                              | Page     |
|---------------------|----------------------------------------------------------------------------------------------------------------------|----------|
|                | Condensed consolidated balance sheets - June 30, 2012 and December 31, 2011.                                         | 6        |
|                | Condensed consolidated statements of operations - Three months and six monthsended June 30, 2012 and 2011.           |  7  |
|                | Condensed consolidated statements of comprehensive income - Three monthsand six months ended June 30, 2012 and 2011. |  8  |
|                | Condensed consolidated statements of changes in equity - Six months endedJune 30, 2012 and 2011.                     |  9  |
|                | Condensed consolidated statements of cash flows - Six months ended June 30,2012 and 2011.                            |  10 |
|                | Notes to condensed consolidated financial statements.                                                                | 11       |
| Item 2.             | Management's Discussion and Analysis of Financial Condition and Results of Operations.                               | 36       |
| Item 3.             | Quantitative and Qualitative Disclosures About Market Risk.                                                          | 55       |
| Item 4.             | Controls and Procedures.                                                                                             | 55       |
|  PART II.      |  OTHER INFORMATION                                                                                              |     |
|  Item 1.       |  Legal Proceedings.                                                                                             |  56 |
| Item 1A.            | Risk Factors.                                                                                                        | 56       |
| Item 2.             | Unregistered Sales of Equity Securities and Use of Proceeds.                                                         | 60       |
| Item 3.             | Defaults Upon Senior Securities.                                                                                     | 60       |
| Item 4.             | Mine Safety Disclosures.                                                                                             | 60       |
| Item 5.             | Other Information.                                                                                                   | 60       |
| Item 6.             | Exhibits.                                                                                                            | 61       |
|  SIGNATURES    |                                                                                                                 |  62 |
|  EXHIBIT INDEX |                                                                                                                 |  63 |

----

| PART I, ITEM 1                                                                                                                                            |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                           |   |  |   |   |  |   |
| CAPITOL BANCORP LIMITED                                                                                                                                   |
| Condensed Consolidated Balance Sheets                                                                                                                     |
| As of June 30, 2012 and December 31, 2011                                                                                                                 |
| (in $1,000s, except per share and per-share data)                                                                                                              |
|                                                                                                                                                           |   |  |   |   |  |   |
|                                                                                                                                                           | (Unaudited) |   |   |  |   |
|                                                                                                                                                           | June 30, |   |  | December 31, |   |
|                                                                                                                                                           | 2012 |   |   | 2011 |   |
| ASSETS                                                                                                                                                         |   |  |   |   |  |   |
| Cash and due from banks                                                                                                                                        |   | $ | 47,466 |   |   | $ | 38,540 |   |
| Money market and interest-bearing deposits                                                                                                                     |   |   | 298,395 |   |   |   | 318,006 |   |
| Cash and cash equivalents                                                                                                                                      |   |   | 345,861 |   |   |   | 356,546 |   |
| Loans held for sale                                                                                                                                            |   |   | 1,099 |   |   |   | 2,129 |   |
| Investment securities -- Note C:                                                                                                                               |   |   |   |   |   |   |   |   |
| Available for sale, carried at fair value                                                                                                                      |   |   | 17,099 |   |   |   | 14,883 |   |
| Held for long-term investment, carried at amortized cost which   approximates fair value                                                        |   |   | 2,769 |   |   |   | 2,737 |   |
| Total investment securities                                                                                                                                    |   |   | 19,868 |   |   |   | 17,620 |   |
| Federal Home Loan Bank and Federal Reserve Bank stock (carried   on the basis of cost) -- Note C                                                |   |   | 12,105 |   |   |   | 12,851 |   |
| Portfolio loans, less allowance for loan losses of $73,438 in 2012   and $86,745 in 2011 -- Note D                                              |   |   | 1,305,829 |   |   |   | 1,454,368 |   |
| Premises and equipment                                                                                                                                         |   |   | 22,769 |   |   |   | 24,348 |   |
| Accrued interest income                                                                                                                                        |   |   | 4,438 |   |   |   | 5,037 |   |
| Other real estate owned                                                                                                                                        |   |   | 94,834 |   |   |   | 95,523 |   |
| Other assets                                                                                                                                                   |   |   | 12,947 |   |   |   | 14,345 |   |
| Assets of discontinued operations -- Note E                                                                                                                    |   |   | 166,157 |   |   |   | 222,498 |   |
|                                                                                                                                                           |   |   |   |   |   |   |   |   |
| TOTAL ASSETS                                                                                                                                                   |   | $ | 1,985,907 |   |   | $ | 2,205,265 |   |
|                                                                                                                                                           |   |   |   |   |   |   |   |   |
| LIABILITIES AND EQUITY                                                                                                                                         |   |   |   |   |   |   |   |   |
| LIABILITIES                                                                                                                                                    |   |   |   |   |   |   |   |   |
| Deposits:                                                                                                                                                      |   |   |   |   |   |   |   |   |
| Noninterest-bearing                                                                                                                                            |   | $ | 361,003 |   |   | $ | 328,896 |   |
| Interest-bearing                                                                                                                                               |   |   | 1,368,029 |   |   |   | 1,529,502 |   |
| Total deposits                                                                                                                                                 |   |   | 1,729,032 |   |   |   | 1,858,398 |   |
| Debt obligations:                                                                                                                                              |   |   |   |   |   |   |   |   |
| Notes payable and other borrowings                                                                                                                             |   |   | 30,694 |   |   |   | 50,445 |   |
| Subordinated debentures -- Note H                                                                                                                              |   |   | 149,207 |   |   |   | 149,156 |   |
| Total debt obligations                                                                                                                                         |   |   | 179,901 |   |   |   | 199,601 |   |
| Accrued interest on deposits and other liabilities                                                                                                             |   |   | 51,242 |   |   |   | 50,157 |   |
| Liabilities of discontinued operations -- Note E                                                                                                               |   |   | 157,645 |   |   |   | 205,756 |   |
| Total liabilities                                                                                                                                              |   |   | 2,117,820 |   |   |   | 2,313,912 |   |
|                                                                                                                                                           |   |   |   |   |   |   |   |   |
| EQUITY:                                                                                                                                                        |   |   |   |   |   |   |   |   |
| Capitol Bancorp Limited stockholders' equity -- Note K:                                                                                                        |   |   |   |   |   |   |   |   |
| Preferred stock (Series A), 700,000 shares authorized ($100 per-share   liquidation preference); 50,980 shares issued and outstanding           |   |   | 5,098 |   |   |   | 5,098 |   |
| Preferred stock (for potential future issuance), 19,300,000 shares   authorized (none issued and outstanding)                                   |   |   | -- |   |   |   | -- |   |
| Common stock, no par value, 1,500,000,000 shares authorized; issued and   outstanding:  2012 - 41,038,408 shares; 2011 - 41,039,767 shares |   |   | 292,179 |   |   |   | 292,135 |   |
| Retained-earnings deficit                                                                                                                                      |   |   | (423,175 | ) |   |   | (404,846 | ) |
| Undistributed common stock held by employee-benefit trust                                                                                                      |   |   | (541 | ) |   |   | (541 | ) |
| Accumulated other comprehensive income                                                                                                                         |   |   | 61 |   |   |   | 70 |   |
| Total Capitol Bancorp Limited stockholders' equity deficit                                                                                                     |   |   | (126,378 | ) |   |   | (108,084 | ) |
| Noncontrolling interests in consolidated subsidiaries                                                                                                          |   |   | (5,535 | ) |   |   | (563 | ) |
| Total equity deficit                                                                                                                                           |   |   | (131,913 | ) |   |   | (108,647 | ) |
|                                                                                                                                                           |   |   |   |   |   |   |   |   |
| TOTAL LIABILITIES AND EQUITY                                                                                                                                   |   | $ | 1,985,907 |   |   | $ | 2,205,265 |   |
|                                                                                                                                                           |   |   |   |   |   |   |   |   |
| See notes to condensed consolidated financial statements.                                                                                                      |   |   |   |   |   |   |   |   |

----

| CAPITOL BANCORP LIMITED                                                                      |
|---------------------------------------------------------------------------------------------------|
| Condensed Consolidated Statements of Operations (Unaudited)                                  |
| For the Three and Six Months Ended June 30, 2012 and 2011                                    |
| (in $1,000s, except per-share data)                                                               |
|                                                                                              |   |  |   |   |  |   |   |  |   |   |  |   |
|                                                                                              |  | Three Month Period |   |  | Six Month Period |   |
|                                                                                                   |   | 2012 |   |   | 2011 |   |   | 2012 |   |   | 2011 |   |
| Interest income:                                                                                  |   |  |   |   |  |   |   |  |   |   |  |   |
| Portfolio loans (including fees)                                                                  |   | $ | 19,590 |   |   | $ | 24,273 |   |   | $ | 40,475 |   |   | $ | 50,365 |   |
| Loans held for sale                                                                               |   |   | 8 |   |   |   | 9 |   |   |   | 20 |   |   |   | 27 |   |
| Taxable investment securities                                                                     |   |   | 44 |   |   |   | 28 |   |   |   | 95 |   |   |   | 58 |   |
| Other                                                                                             |   |   | 299 |   |   |   | 299 |   |   |   | 589 |   |   |   | 650 |   |
| Total interest income                                                                             |   |   | 19,941 |   |   |   | 24,609 |   |   |   | 41,179 |   |   |   | 51,100 |   |
| Interest expense:                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Deposits                                                                                          |   |   | 3,390 |   |   |   | 5,898 |   |   |   | 7,334 |   |   |   | 12,553 |   |
| Debt obligations and other                                                                        |   |   | 2,602 |   |   |   | 2,945 |   |   |   | 5,667 |   |   |   | 5,885 |   |
| Total interest expense                                                                            |   |   | 5,992 |   |   |   | 8,843 |   |   |   | 13,001 |   |   |   | 18,438 |   |
| Net interest income                                                                               |   |   | 13,949 |   |   |   | 15,766 |   |   |   | 28,178 |   |   |   | 32,662 |   |
| Provision for loan losses -- Note D                                                               |   |   | 294 |   |   |   | 5,736 |   |   |   | 1,160 |   |   |   | 17,216 |   |
| Net interest income after provision for   loan losses                              |   |   | 13,655 |   |   |   | 10,030 |   |   |   | 27,018 |   |   |   | 15,446 |   |
| Noninterest income:                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Service charges on deposit accounts                                                               |   |   | 656 |   |   |   | 681 |   |   |   | 1,326 |   |   |   | 1,356 |   |
| Trust and wealth-management revenue                                                               |   |   | 701 |   |   |   | 817 |   |   |   | 1,424 |   |   |   | 1,761 |   |
| Fees from origination of non-portfolio residential   mortgage loans                |   |   | 143 |   |   |   | 75 |   |   |   | 304 |   |   |   | 215 |   |
| Gain on sale of government-guaranteed loans                                                       |   |   | 167 |   |   |   | 384 |   |   |   | 362 |   |   |   | 726 |   |
| Gain on debt extinguishment -- Note H                                                             |   |   | -- |   |   |   | -- |   |   |   | -- |   |   |   | 16,861 |   |
| Other                                                                                             |   |   | 2,010 |   |   |   | 2,936 |   |   |   | 3,590 |   |   |   | 4,662 |   |
| Total noninterest income                                                                          |   |   | 3,677 |   |   |   | 4,893 |   |   |   | 7,006 |   |   |   | 25,581 |   |
| Noninterest expense:                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Salaries and employee benefits                                                                    |   |   | 10,940 |   |   |   | 12,446 |   |   |   | 21,740 |   |   |   | 24,842 |   |
| Occupancy                                                                                         |   |   | 2,413 |   |   |   | 2,727 |   |   |   | 4,993 |   |   |   | 5,558 |   |
| Equipment rent, depreciation and maintenance                                                      |   |   | 1,446 |   |   |   | 1,950 |   |   |   | 2,886 |   |   |   | 3,866 |   |
| Costs associated with foreclosed properties and other   real estate owned          |   |   | 6,055 |   |   |   | 9,021 |   |   |   | 11,055 |   |   |   | 16,333 |   |
| FDIC insurance premiums and other regulatory fees                                                 |   |   | 1,650 |   |   |   | 2,377 |   |   |   | 3,329 |   |   |   | 5,079 |   |
| Other                                                                                             |   |   | 5,520 |   |   |   | 3,669 |   |   |   | 9,771 |   |   |   | 10,713 |   |
| Total noninterest expense                                                                         |   |   | 28,024 |   |   |   | 32,190 |   |   |   | 53,774 |   |   |   | 66,391 |   |
| Loss before income tax expense (benefit)                                                          |   |   | (10,692 | ) |   |   | (17,267 | ) |   |   | (19,750 | ) |   |   | (25,364 | ) |
| Income tax expense (benefit)                                                                      |   |   | 1 |   |   |   | (409 | ) |   |   | (44 | ) |   |   | (2,655 | ) |
| Loss from continuing operations                                                                   |   |   | (10,693 | ) |   |   | (16,858 | ) |   |   | (19,706 | ) |   |   | (22,709 | ) |
| Discontinued operations -- Note E:                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income (loss) from operations of bank subsidiaries sold                                           |   |   | 95 |   |   |   | (624 | ) |   |   | 33 |   |   |   | (316 | ) |
| Gain on sale of bank subsidiaries                                                                 |   |   | -- |   |   |   | 184 |   |   |   | 126 |   |   |   | 4,552 |   |
| Less income tax expense                                                                           |   |   | 80 |   |   |   | 208 |   |   |   | 62 |   |   |   | 1,807 |   |
| Income (loss) from discontinued operations                                                        |   |   | 15 |   |   |   | (648 | ) |   |   | 97 |   |   |   | 2,429 |   |
| NET LOSS                                                                                          |   |   | (10,678 | ) |   |   | (17,506 | ) |   |   | (19,609 | ) |   |   | (20,280 | ) |
| Net losses attributable to noncontrolling interests in   consolidated subsidiaries |   |   | 339 |   |   |   | 1,068 |   |   |   | 1,358 |   |   |   | 4,131 |   |
|                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| NET LOSS ATTRIBUTABLE TO CAPITOL   BANCORP LIMITED                                 |   | $ | (10,339 | ) |   | $ | (16,438 | ) |   | $ | (18,251 | ) |   | $ | (16,149 | ) |
|                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| NET LOSS PER COMMON SHARE ATTRIBUTABLE   TO CAPITOL BANCORP LIMITED -- Note G      |   | $ | (0.25 | ) |   | $ | (0.40 | ) |   | $ | (0.44 | ) |   | $ | (0.44 | ) |
|                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| See notes to condensed consolidated financial statements.                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

| CAPITOL BANCORP LIMITED                                                                              |
|-----------------------------------------------------------------------------------------------------------|
| Condensed Consolidated Statements of Comprehensive Income (Unaudited)                                |
| For the Three and Six Months Ended June 30, 2012 and 2011                                                 |
| (in $1,000s)                                                                                         |
|                                                                                                      |   |  |   |   |  |   |   |  |   |   |  |   |
|                                                                                                      |  | Three Month Period |   |  | Six Month Period |   |
|                                                                                                           |   | 2012 |   |   | 2011 |   |   | 2012 |   |   | 2011 |   |
|                                                                                                      |   |  |   |   |  |   |   |  |   |   |  |   |
| NET LOSS                                                                                                  |   | $ | (10,678 | ) |   | $ | (17,506 | ) |   | $ | (19,609 | ) |   | $ | (20,280 | ) |
|                                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other comprehensive loss, net of tax:                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Unrealized losses arising during the period                                                               |   |   | (1 | ) |   |   | (1 | ) |   |   | (9 | ) |   |   | (25 | ) |
| Less reclassification adjustment for losses included in net loss                                          |   |   | -- |   |   |   | -- |   |   |   | -- |   |   |   | -- |   |
|                                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| COMPREHENSIVE LOSS                                                                                        |   |   | (1 | ) |   |   | (1 | ) |   |   | (9 | ) |   |   | (25 | ) |
|                                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Comprehensive loss attributable to noncontrolling interests in   consolidated subsidiaries |   |   | -- |   |   |   | -- |   |   |   | -- |   |   |   | -- |   |
|                                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| COMPREHENSIVE LOSS ATTRIBUTABLE TO   CAPITOL BANCORP LIMITED                               |   | $ | (10,679 | ) |   | $ | (17,507 | ) |   | $ | (19,618 | ) |   | $ | (20,305 | ) |
|                                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| See notes to condensed consolidated financial statements.                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

| CAPITOL BANCORP LIMITED                                                                                |
|-------------------------------------------------------------------------------------------------------------|
| Condensed Consolidated Statements of Changes in Equity (Unaudited)                                     |
| For the Six Months Ended June 30, 2012 and 2011                                                        |
| (in $1,000s, except share and per-share data)                                                               |
|                                                                                                        |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |
|                                                                                                        |   | Capitol Bancorp Limited Stockholders' Equity |   |   |  |   |   |  |   |
|                                                                                                        |   |  |   |   |  |   |   |  |   |   | Undistributed |   |   |  |   |   |  |   |   |  |   |
|                                                                                                             |  |  |  |  |  |  |  |  |  |  | Common |  |  |  |  |  | Total Capitol |  |  |  |  |  |  |  |
|                                                                                                        |   |  |   |   |  |   |   |  |   |   | Stock |   |   | Accumulated |   |   | Bancorp |   |   | Noncontrolling |   |   |  |   |
|                                                                                                             |  |  |  |  |  |  |  | Retained- |  |  | Held by |  |  | Other |  |  | Limited |  |  | Interests in |  |  | Total |  |
|                                                                                                        |   | Preferred |   |   | Common |   |   | Earnings |   |   | Employee- |   |   | Comprehensive |   |   | Stockholders' |   |   | Consolidated |   |   | Equity |   |
|                                                                                                        |   | Stock |   |   | Stock |   |   | (Deficit) |   |   | Benefit Trust |   |   | Income (Loss) |   |   | Equity |   |   | Subsidiaries |   |   | (Deficit) |   |
|                                                                                                        |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |
| Six Months Ended June 30, 2011                                                                              |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |
|                                                                                                        |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |
| Balances at January 1, 2011                                                                                 |   | $ | 5,098 |   |   | $ | 287,190 |   |   | $ | (353,757 | ) |   | $ | (541 | ) |   | $ | 156 |   |   | $ | (61,854 | ) |   | $ | 23,173 |   |   | $ | (38,681 | ) |
|                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Reduction in noncontrolling interest of sold subsidiaries                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | - |   |   |   | (6,433 | ) |   |   | (6,433 | ) |
|                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Increase in investment of subsidiariesdue to change in ownership                                            |   |   |   | 633 |   |   |   |   |   |   |   |   |   |   |   | 633 |   |   |   | 863 |   |   |   | 1,496 |   |
|                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Issuance of 19,545,360 shares of common stock for redemption of trust-preferred securities                  |   |   |   | 5,082 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 5,082 |   |   |   |   |   |   |   | 5,082 |   |
|                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Surrender of 70,773 shares of common stock to facilitate vesting of restrictedstock                         |   |   |   | (12 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (12 | ) |   |   |   |   |   |   | (12 | ) |
|                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Reversal of compensation expenserelating to 42,600 forfeited restrictedcommon stock shares and stockoptions |   |   |   | (115 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (115 | ) |   |   |   |   |   |   | (115 | ) |
|                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Recognition of compensation expenserelating to restricted common stockand stock options                     |   |   |   | 256 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 256 |   |   |   |   |   |   |   | 256 |   |
|                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Tax effect of share-based payments                                                                          |   |   |   |   |   |   | (237 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (237 | ) |   |   |   |   |   |   | (237 | ) |
|                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net loss                                                                                                    |   |   |   |   |   |   |   |   |   |   | (16,149 | ) |   |   |   |   |   |   |   |   |   |   | (16,149 | ) |   |   | (4,131 | ) |   |   | (20,280 | ) |
|                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other comprehensive loss                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (25 | ) |   |   | (25 | ) |   |   |   |   |   |   | (25 | ) |
|                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| BALANCES AT JUNE 30, 2011                                                                                   |   | $ | 5,098 |   |   | $ | 292,164 |   |   | $ | (369,273 | ) |   | $ | (541 | ) |   | $ | 131 |   |   | $ | (72,421 | ) |   | $ | 13,472 |   |   | $ | (58,949 | ) |
|                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Six Months Ended June 30, 2012                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balances at January 1, 2012                                                                                 |   | $ | 5,098 |   |   | $ | 292,135 |   |   | $ | (404,846 | ) |   | $ | (541 | ) |   | $ | 70 |   |   | $ | (108,084 | ) |   | $ | (563 | ) |   | $ | (108,647 | ) |
|                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Reduction in noncontrolling interestof sold subsidiary                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | - |   |   |   | (3,692 | ) |   |   | (3,692 | ) |
|                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Reduction in investment of subsidiariesdue to change in ownership                                           |   |   |   | (78 | ) |   |   |   |   |   |   |   |   |   |   | (78 | ) |   |   | 78 |   |   |   | - |   |
|                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Surrender of 859 shares of commonstock to facilitate vesting of restrictedstock                             |   |   |   | - |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | - |   |   |   |   |   |   |   | - |   |
|                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Reversal of compensation expenserelating to 500 forfeited restrictedcommon stock shares and stockoptions    |   |   |   | (4 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (4 | ) |   |   |   |   |   |   | (4 | ) |
|                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Recognition of compensation expenserelating to restricted common stockand stock options                     |   |   |   | 65 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 65 |   |   |   |   |   |   |   | 65 |   |
|                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Tax effect of share-based payments                                                                          |   |   |   |   |   |   | (17 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (17 | ) |   |   |   |   |   |   | (17 | ) |
|                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net loss                                                                                                    |   |   |   |   |   |   |   |   |   |   | (18,251 | ) |   |   |   |   |   |   |   |   |   |   | (18,251 | ) |   |   | (1,358 | ) |   |   | (19,609 | ) |
|                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other comprehensive loss                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (9 | ) |   |   | (9 | ) |   |   |   |   |   |   | (9 | ) |
|                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| BALANCES AT JUNE 30, 2012                                                                                   |   | $ | 5,098 |   |   | $ | 292,179 |   |   | $ | (423,175 | ) |   | $ | (541 | ) |   | $ | 61 |   |   | $ | (126,378 | ) |   | $ | (5,535 | ) |   | $ | (131,913 | ) |
|                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| See notes to condensed consolidated financial statements.                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

| CAPITOL BANCORP LIMITED                                                                                                   |
|---------------------------------------------------------------------------------------------------------------------------|
| Condensed Consolidated Statements of Cash Flows (Unaudited)                                                               |
| For the Six Months Ended June 30, 2012 and 2011                                                                      |
| (in $1,000s)                                                                                                              |
|                                                                                                                      |   |  |   |   |  |   |
|                                                                                                                      |   | 2012 |   |   | 2011 |   |
|                                                                                                                      |   |  |   |   |  |   |
| OPERATING ACTIVITIES                                                                                                      |   |  |   |   |  |   |
| Net loss                                                                                                                  |   | $ | (19,609 | ) |   | $ | (20,280 | ) |
| Adjustments to reconcile net loss to net cash provided (used) byoperating activities (including discontinued operations): |   |
| Provision for loan losses                                                                                                 |   |   | 1,721 |   |   |   | 22,071 |   |
| Depreciation of premises and equipment                                                                                    |   |   | 2,081 |   |   |   | 3,073 |   |
| Net amortization of investment security premiums                                                                          |   |   | 79 |   |   |   | 97 |   |
| Loss on sale of premises and equipment                                                                                    |   |   | 21 |   |   |   | 13 |   |
| Gain on sale of government-guaranteed loans                                                                               |   |   | (475 | ) |   |   | (1,686 | ) |
| Gain on sale of bank subsidiaries                                                                                         |   |   | (126 | ) |   |   | (4,552 | ) |
| Gain on extinguishment of debt                                                                                            |   |   | -- |   |   |   | (16,861 | ) |
| Loss on sale of other real estate owned                                                                                   |   |   | 535 |   |   |   | 112 |   |
| Write-down of other real estate owned                                                                                     |   |   | 7,936 |   |   |   | 11,571 |   |
| Amortization of issuance costs of subordinated debentures                                                                 |   |   | 51 |   |   |   | 51 |   |
| Share-based compensation expense                                                                                          |   |   | 61 |   |   |   | 141 |   |
| Deferred income tax credit                                                                                                |   |   | (201 | ) |   |   | (19,458 | ) |
| Valuation allowance for deferred income tax assets                                                                        |   |   | -- |   |   |   | 20,012 |   |
| Originations and purchases of loans held for sale                                                                         |   |   | (14,300 | ) |   |   | (17,215 | ) |
| Proceeds from sales of loans held for sale                                                                                |   |   | 15,909 |   |   |   | 22,720 |   |
| Decrease in accrued interest income and other assets                                                                      |   |   | 3,634 |   |   |   | 15,098 |   |
| Increase in accrued interest expense on deposits and other liabilities                                                    |   |   | 1,013 |   |   |   | 4,902 |   |
|                                                                                                                      |   |   |   |   |   |   |   |   |
| NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES                                                                          |   |   | (1,670 | ) |   |   | 19,809 |   |
|                                                                                                                      |   |   |   |   |   |   |   |   |
| INVESTING ACTIVITIES                                                                                                      |   |   |   |   |   |   |   |   |
| Proceeds from sales of investment securities available for sale                                                           |   |   | -- |   |   |   | 488 |   |
| Proceeds from calls, prepayments and maturities of investment securities                                                  |   |   | 10,345 |   |   |   | 9,664 |   |
| Purchases of investment securities                                                                                        |   |   | (6,622 | ) |   |   | (17,798 | ) |
| Redemption of Federal Home Loan Bank stock by issuer                                                                      |   |   | 849 |   |   |   | 1,782 |   |
| Purchase of Federal Home Loan Bank stock                                                                                  |   |   | (31 | ) |   |   | (861 | ) |
| Net decrease in portfolio loans                                                                                           |   |   | 112,208 |   |   |   | 129,707 |   |
| Proceeds from sales of government-guaranteed loans                                                                        |   |   | 4,241 |   |   |   | 21,942 |   |
| Proceeds from sales of premises and equipment                                                                             |   |   | 45 |   |   |   | 62 |   |
| Purchases of premises and equipment                                                                                       |   |   | (1,402 | ) |   |   | (720 | ) |
| Proceeds from sale of bank subsidiaries                                                                                   |   |   | 4,060 |   |   |   | 13,704 |   |
| Payments received on other real estate owned                                                                              |   |   | 34 |   |   |   | 81 |   |
| Proceeds from sales of other real estate owned                                                                            |   |   | 24,505 |   |   |   | 16,533 |   |
|                                                                                                                      |   |   |   |   |   |   |   |   |
| NET CASH PROVIDED BY INVESTING ACTIVITIES                                                                                 |   |   | 148,232 |   |   |   | 174,584 |   |
|                                                                                                                      |   |   |   |   |   |   |   |   |
| FINANCING ACTIVITIES                                                                                                      |   |   |   |   |   |   |   |   |
| Net increase in demand deposits, NOW accounts and saving accounts                                                         |   |   | 56,769 |   |   |   | 80,459 |   |
| Net decrease in certificates of deposit                                                                                   |   |   | (189,666 | ) |   |   | (241,728 | ) |
| Net borrowing from (payments on) debt obligations                                                                         |   |   | (423 | ) |   |   | 1,193 |   |
| Proceeds from Federal Home Loan Bank borrowings                                                                           |   |   | 43,501 |   |   |   | 104,350 |   |
| Payments on Federal Home Loan Bank borrowings                                                                             |   |   | (62,918 | ) |   |   | (130,516 | ) |
| Net proceeds from issuance of common stock                                                                                |   |   | -- |   |   |   | 9,000 |   |
| Tax effect of share-based payments                                                                                        |   |   | (17 | ) |   |   | (237 | ) |
|                                                                                                                      |   |   |   |   |   |   |   |   |
| NET CASH USED IN FINANCING ACTIVITIES                                                                                     |   |   | (152,754 | ) |   |   | (177,479 | ) |
|                                                                                                                      |   |   |   |   |   |   |   |   |
| INCREASE (DECREASE) IN CASH AND CASH  EQUIVALENTS                                                               |   |   | (6,192 | ) |   |   | 16,914 |   |
|                                                                                                                      |   |   |   |   |   |   |   |   |
| Change in cash and cash equivalents of discontinued operations                                                            |   |   | (4,493 | ) |   |   | (28,123 | ) |
|                                                                                                                      |   |   |   |   |   |   |   |   |
| Cash and cash equivalents at beginning of period                                                                          |   |   | 356,546 |   |   |   | 392,023 |   |
|                                                                                                                      |   |   |   |   |   |   |   |   |
| CASH AND CASH EQUIVALENTS AT END OF PERIOD                                                                                |   | $ | 345,861 |   |   | $ | 380,814 |   |
|                                                                                                                      |   |   |   |   |   |   |   |   |
| Supplemental disclosures:                                                                                                 |   |   |   |   |   |   |   |   |
| Cash paid during the period for interest on deposits and debt obligations                                                 |   |   | 14,240 |   |   | $ | 22,522 |   |
| Transfers of loans to other real estate owned                                                                             |   |   | 30,794 |   |   |   | 29,877 |   |
| Surrender of common stock to facilitate vesting of restricted stock                                                       |   |   | -- |   |   |   | 12 |   |
| Exchange of common stock for redemption of debt                                                                           |   |   | -- |   |   |   | 5,082 |   |
|                                                                                                                      |   |   |   |   |   |   |   |   |
| See notes to condensed consolidated financial statements.                                                                 |   |   |   |   |   |   |   |   |

----

----

|                                   |   | June 30, 2012 |   |   | December 31, 2011  |   |
|----------------------------------------|--------|---------------|--------|--------|--------------------|--------|
|                                   |   | AmortizedCost |   |   | EstimatedFairValue |   |   | AmortizedCost |   |   | EstimatedFairValue |   |
| Available for sale:                    |   |               |   |   |                    |   |   |  |   |   |  |   |
| United States treasury                 |   | $             | 3,499  |   |               | $      | 3,502 |   |   | $ | 4,004 |   |   | $ | 4,013 |   |
| United States government agency        |   |          | 4,000  |   |               |   | 3,998 |   |   |   |   |   |   |   |   |   |
| Mortgage-backed                        |   |          | 9,424  |   |               |   | 9,493 |   |   |   | 10,537 |   |   |   | 10,592 |   |
| Municipalities                         |   |          | 103    |   |               |   | 106 |   |   |   | 275 |   |   |   | 278 |   |
|                                   |   |          | 17,026 |   |               |   | 17,099 |   |   |   | 14,816 |   |   |   | 14,883 |   |
| Held for long-term investment:         |   |          |   |   |               |   |   |   |   |   |   |   |   |   |   |   |
| Capitol Development BancorpLimited III |   |          | 963    |   |               |   | 963 |   |   |   | 973 |   |   |   | 973 |   |
| Other equity investments               |   |          | 1,806  |   |               |   | 1,806 |   |   |   | 1,764 |   |   |   | 1,764 |   |
|                                   |   |          | 2,769  |   |               |   | 2,769 |   |   |   | 2,737 |   |   |   | 2,737 |   |
|                                   |   |          |   |   |               |   |   |   |   |   |   |   |   |   |   |   |
|                                   |   | $             | 19,795 |   |               | $      | 19,868 |   |   | $ | 17,553 |   |   | $ | 17,620 |   |

----

|                            |   | June 30, 2012 |   |   | December 31, 2011 |   |
|---------------------------------|--------|---------------|--------|--------|-------------------|--------|
|                            |   | Gains         |   |   | Losses            |   |   | Gains |   |   | Losses |   |
|                            |   |               |   |   |                   |   |   |  |   |   |  |   |
| United States treasury          |   | $             | 4      |   |              | $      | 1 |   |   | $ | 9 |   |   |   |   |
| United States government agency |   |          |   |   |              |   | 2 |   |   |   |   |   |   |  |   |
| Mortgage-backed                 |   |          | 72     |   |              |   | 3 |   |   |   | 70 |   |   | $ | 16 |   |
| Municipalities                  |   |          | 3      |   |              |   |   |   |   |        | 4 |   |   |         |    |   |
|                            |   |          |   |   |              |   |   |   |   |   |   |   |   |   |   |   |
|                            |   | $             | 79     |   |              | $      | 6 |   |   | $ | 83 |   |   | $ | 16 |   |

|                            |   | June 30, 2012  |   |   | December 31, 2011 |                                                                                                |
|---------------------------------|--------|----------------|--------|--------|-------------------|-----------------------------------------------------------------------------------------------------|
|                            |   | UnrealizedLoss |   |   | CarryingValue     |                                                                                                |   | UnrealizedLoss |   |   | CarryingValue |   |
| One year or less:               |   |                |   |   |                   |                                                                                                |   |  |   |   |  |   |
| United States treasury          |   | $              | 1      |   |              | $                                                                                                   | 1,499 |   |   |  |   |   |  |   |
| United States government agency |   |           | 2      |   |              |                                                                                                | 3,998 |   |   |  |   |   |  |   |
| Mortgage-backed                 |   |           |   |   |              |                 |    |   |   | $ | 16 |   |   | $ | 6,674 |   |
|                            |   | $              | 3      |   |              | $                                                                                                   | 5,497 |   |   | $ | 16 |   |   | $ | 6,674 |   |
| In excess of one year:          |   |           |   |   |              |                                                                                                |   |   |   |   |   |   |   |   |   |   |
| Mortgage-backed                 |   | $              | 3      |   |              | $                                                                                                   | 2,877 |   |   | $ | -- |   |   | $ | -- |   |

|                                                              |   | AmortizedCost |   |   | EstimatedFair Value |   |
|-------------------------------------------------------------------|--------|---------------|--------|--------|---------------------|--------|
|                                                              |   |               |   |   |                     |   |
| Due in one year or less                                           |   | $             | 3,507  |   |                | $      | 3,510 |   |
| After one year, through five years                                |   |          | 4,103  |   |                |   | 4,105 |   |
| After ten years                                                   |   |          | 9,416  |   |                |   | 9,484 |   |
| Securities held for long-term investmentwithout stated maturities |   |          | 2,769  |   |                |   | 2,769 |   |
|                                                              |   |          |   |   |                |   |   |   |
|                                                              |   | $             | 19,795 |   |                | $      | 19,868 |   |

----

|                                             |   | June 30, 2012          |    |
|--------------------------------------------------|--------|------------------------|---------|
|                                             |   | Secured by Real Estate |    |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |
|                                             |   | Commercial             |    |   | Residential(includingmulti-family) |   |   | Construction,LandDevelopmentand OtherLand |   |   | Commercialand OtherBusiness-PurposeLoans |   |   | Consumer |   |   | Other |   |   | Unallocated |   |   | Total |   |
|                                             |   |                        |    |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |
| Allowance for loanlosses:                        |   |                        |    |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |
| Individuallyevaluated forimpairment              |   | $                      | 9,526   |   |   | $ | 3,359 |   |   | $ | 1,905 |   |   | $ | 1,937 |   |   | $ | 22 |   |   |  |   |   |  |   |   | $ | 16,749 |   |
| Collectivelyevaluated forprobable incurredlosses |   |                   | 20,204  |   |   |   | 10,779 |   |   |   | 3,588 |   |   |   | 8,254 |   |   |   | 380 |   |   | $ | 370 |   |   | $ | 13,114 |   |   |   | 56,689 |   |
|                                             |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total allowancefor loan losses                   |   | $                      | 29,730  |   |   | $ | 14,138 |   |   | $ | 5,493 |   |   | $ | 10,191 |   |   | $ | 402 |   |   | $ | 370 |   |   | $ | 13,114 |   |   | $ | 73,438 |   |
|                                             |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                             |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Portfolio loans:                                 |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Individuallyevaluated forimpairment              |   | $                      | 132,276 |   |   | $ | 48,522 |   |   | $ | 22,982 |   |   | $ | 17,061 |   |   | $ | 95 |   |   |   |   |   |   |   |   |   |   | $ | 220,936 |   |
| Collectivelyevaluated forprobable incurredlosses |   |                   | 709,486 |   |   |   | 242,653 |   |   |   | 55,007 |   |   |   | 139,190 |   |   |   | 10,505 |   |   | $ | 1,490 |   |   |   |   |   |   |   | 1,158,331 |   |
|                                             |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total portfolioloans                             |   | $                 | 841,762 |   |   | $  | 291,175 |   |   | $  | 77,989 |   |   | $  | 156,251 |   |   | $  | 10,600 |   |   | $  | 1,490 |   |   |   |   |   |   | $  | 1,379,267 |   |

|                                             |   | December 31, 2011      |    |
|--------------------------------------------------|--------|------------------------|---------|
|                                             |   | Secured by Real Estate |    |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |
|                                             |   | Commercial             |    |   | Residential(includingmulti-family) |   |   | Construction,LandDevelopmentand OtherLand |   |   | Commercialand OtherBusiness-PurposeLoans |   |   | Consumer |   |   | Other |   |   | Unallocated |   |   | Total |   |
|                                             |   |                        |    |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |
| Allowance for loanlosses:                        |   |                        |    |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |
| Individuallyevaluated forimpairment              |   | $                      | 10,636  |   |   | $ | 3,920 |   |   | $ | 3,134 |   |   | $ | 3,732 |   |   | $ | 29 |   |   |  |   |   |  |   |   | $ | 21,451 |   |
| Collectivelyevaluated forprobable incurredlosses |   |                   | 26,685  |   |   |   | 15,866 |   |   |   | 7,355 |   |   |   | 10,262 |   |   |   | 662 |   |   | $ | 17 |   |   | $ | 4,447 |   |   |   | 65,294 |   |
|                                             |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total allowancefor loan losses                   |   | $                      | 37,321  |   |   | $ | 19,786 |   |   | $ | 10,489 |   |   | $ | 13,994 |   |   | $ | 691 |   |   | $ | 17 |   |   | $ | 4,447 |   |   | $ | 86,745 |   |
|                                             |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Portfolio loans:                                 |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Individuallyevaluated forimpairment              |   | $                      | 167,792 |   |   | $ | 56,210 |   |   | $ | 36,638 |   |   | $ | 23,583 |   |   | $ | 63 |   |   |   |   |   |   |   |   |   |   | $ | 284,286 |   |
| Collectivelyevaluated forprobable incurredlosses |   |                   | 739,585 |   |   |   | 275,900 |   |   |   | 68,630 |   |   |   | 157,766 |   |   |   | 12,165 |   |   | $ | 2,781 |   |   |   |   |   |   |   | 1,256,827 |   |
|                                             |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total portfolioloans                             |   | $                 | 907,377 |   |   | $  | 332,110 |   |   | $  | 105,268 |   |   | $  | 181,349 |   |   | $  | 12,228 |   |   | $  | 2,781 |   |   |   |   |   |   | $  | 1,541,113 |   |

----

|                           |   | Three Months Ended June 30, 2012 |   |
|--------------------------------|--------|----------------------------------|--------|
|                           |   | Secured by Real Estate           |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |
|                           |   | Commercial                       |   |   | Residential(includingmulti-family) |   |   | Construction,LandDevelopmentand OtherLand |   |   | Commercialand OtherBusiness-PurposeLoans |   |   | Consumer |   |   | Other |   |   | Unallocated |   |   | Total |   |
|                           |   |                                  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |
| Beginning balance              |   | $                                | 30,562 |   |   | $ | 16,978 |   |   | $ | 9,327 |   |   | $ | 11,990 |   |   | $ | 498 |   |   | $ | 13 |   |   | $ | 11,586 |   |   | $ | 80,954 |   |
|                           |   |                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Charge-offs                    |   |                             | (3,714 | ) |   |   | (2,691 | ) |   |   | (1,414 | ) |   |   | (4,782 | ) |   |   | (38 | ) |   |   | (679 | ) |   |   |   |   |   |   | (13,318 | ) |
| Recoveries                     |   |                             | 1,574  |   |   |   | 568 |   |   |   | 376 |   |   |   | 2,908 |   |   |   | 82 |   |   |   |   |   |   |   |   |   |   |     | 5,508 |   |
| Net charge-offs                |   |                             | (2,140 | ) |   |   | (2,123 | ) |   |   | (1,038 | ) |   |   | (1,874 | ) |   |   | 44 |   |   |   | (679 | ) |   |   |   |   |   |   | (7,810 | ) |
|                           |   |                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Provision for loanlosses       |   |                             | 2,248  |   |   |   | (402 | ) |   |   | (2,710 | ) |   |   | 247 |   |   |   | (128 | ) |   |   | 1,039 |   |   |   |   |   |   |   | 294 |   |
|                           |   |                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Additionalunallocatedallowance |   |                             | (940   | ) |   |   | (315 | ) |   |   | (86 | ) |   |   | (172 | ) |   |   | (12 | ) |   |   | (3 | ) |   |   | 1,528 |   |   |        |     |   |
|                           |   |                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Ending balance                 |   | $                                | 29,730 |   |   | $ | 14,138 |   |   | $ | 5,493 |   |   | $ | 10,191 |   |   | $ | 402 |   |   | $ | 370 |   |   | $ | 13,114 |   |   | $ | 73,438 |   |

|                           |   | Six Months Ended June 30, 2012 |   |
|--------------------------------|--------|--------------------------------|--------|
|                           |   | Secured by Real Estate         |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |
|                           |   | Commercial                     |   |   | Residential(includingmulti-family) |   |   | Construction,LandDevelopmentand OtherLand |   |   | Commercialand OtherBusiness-PurposeLoans |   |   | Consumer |   |   | Other |   |   | Unallocated |   |   | Total |   |
|                           |   |                                |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |
| Beginning balance              |   | $                              | 37,321 |   |   | $ | 19,786 |   |   | $ | 10,489 |   |   | $ | 13,994 |   |   | $ | 691 |   |   | $ | 17 |   |   | $ | 4,447 |   |   | $ | 86,745 |   |
|                           |   |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Charge-offs                    |   |                           | (9,566 | ) |   |   | (7,067 | ) |   |   | (3,564 | ) |   |   | (6,560 | ) |   |   | (333 | ) |   |   | (679 | ) |   |   |   |   |   |   | (27,769 | ) |
| Recoveries                     |   |                           | 3,967  |   |   |   | 3,769 |   |   |   | 1,149 |   |   |   | 4,265 |   |   |   | 145 |   |   |   | 7 |   |   |   |   |   |   |   | 13,302 |   |
| Net charge-offs                |   |                           | (5,599 | ) |   |   | (3,298 | ) |   |   | (2,415 | ) |   |   | (2,295 | ) |   |   | (188 | ) |   |   | (672 | ) |   |   |   |   |   |   | (14,467 | ) |
|                           |   |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Provision for loanlosses       |   |                           | 3,342  |   |   |   | (565 | ) |   |   | (2,092 | ) |   |   | (530 | ) |   |   | (34 | ) |   |   | 1,039 |   |   |   |   |   |   |   | 1,160 |   |
|                           |   |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Additionalunallocatedallowance |   |                           | (5,334 | ) |   |   | (1,785 | ) |   |   | (489 | ) |   |   | (978 | ) |   |   | (67 | ) |   |   | (14 | ) |   |   | 8,667 |   |   |        |     |   |
|                           |   |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Ending balance                 |   | $                              | 29,730 |   |   | $ | 14,138 |   |   | $ | 5,493 |   |   | $ | 10,191 |   |   | $ | 402 |   |   | $ | 370 |   |   | $ | 13,114 |   |   | $ | 73,438 |   |

----

|                     |  | Three Months Ended June 30, 2011 |        |   |                                    |   |
|--------------------------|--|----------------------------------|--------|---|------------------------------------|---|
|                     |  | Secured by Real Estate           |        |   |                                    |   |  |  |  |  |  |  |  |  |  |
|                     |  | Commercial                       |        |   | Residential(includingmulti-family) |   |  | Construction,LandDevelopmentand OtherLand |  |  | Commercialand OtherBusiness-PurposeLoans |  |  | Consumer |  |  | Other |  |  | Total |  |
|                     |  |                                  |        |   |                                    |   |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Beginning balance        |  | $                                | 49,154 |   |                                    | $ | 26,056 |  |  | $ | 17,449 |  |  | $ | 23,719 |  |  | $ | 824 |  |  | $ | 44 |  |  | $ | 117,246 |  |
|                     |  |                                  |        |   |                                    |   |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Charge-offs              |  |                                  | (6,463 | ) |                                    |   | (3,261 | ) |  |  | (4,239 | ) |  |  | (5,576 | ) |  |  | (369 | ) |  |  |  |  |  |  | (19,908 | ) |
| Recoveries               |  |                                  | 1,112  |   |                                    |   | 960 |  |  |  | 145 |  |  |  | 1,184 |  |  |  | 55 |  |  |  | 1 |  |  |  | 3,457 |  |
| Net charge-offs          |  |                                  | (5,351 | ) |                                    |   | (2,301 | ) |  |  | (4,094 | ) |  |  | (4,392 | ) |  |  | (314 | ) |  |  | 1 |  |  |  | (16,451 | ) |
|                     |  |                                  |        |   |                                    |   |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Provision for loanlosses |  |                                  | 5,077  |   |                                    |   | (1,334 | ) |  |  | 1,513 |  |  |  | 55 |  |  |  | 406 |  |  |  | 19 |  |  |  | 5,736 |  |
|                     |  |                                  |        |   |                                    |   |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Ending balance           |  | $                                | 48,880 |   |                                    | $ | 22,421 |  |  | $ | 14,868 |  |  | $ | 19,382 |  |  | $ | 916 |  |  | $ | 64 |  |  | $ | 106,531 |  |

|                      |  | Six Months Ended June 30, 2011 |         |   |                                    |   |
|---------------------------|--|--------------------------------|---------|---|------------------------------------|---|
|                      |  | Secured by Real Estate         |         |   |                                    |   |  |  |  |  |  |  |  |  |  |
|                      |  | Commercial                     |         |   | Residential(includingmulti-family) |   |  | Construction,LandDevelopmentand OtherLand |  |  | Commercialand OtherBusiness-PurposeLoans |  |  | Consumer |  |  | Other |  |  | Total |  |
|                      |  |                                |         |   |                                    |   |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Beginning balance         |  | $                              | 47,823  |   |                                    | $ | 36,139 |  |  | $ | 17,505 |  |  | $ | 24,098 |  |  | $ | 681 |  |  | $ | 59 |  |  | $ | 126,305 |  |
|                      |  |                                |         |   |                                    |   |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Acquired loan lossreserve |  |                                | 1,043   |   |                                    |   | 117 |  |  |  | 651 |  |  |  | 500 |  |  |  | 68 |  |  |  | 1 |  |  |  | 2,380 |  |
|                      |  |                                |         |   |                                    |   |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Charge-offs               |  |                                | (14,874 | ) |                                    |   | (10,441 | ) |  |  | (11,833 | ) |  |  | (10,822 | ) |  |  | (592 | ) |  |  |  |  |  |  | (48,562 | ) |
| Recoveries                |  |                                | 2,044   |   |                                    |   | 1,941 |  |  |  | 3,153 |  |  |  | 1,959 |  |  |  | 93 |  |  |  | 2 |  |  |  | 9,192 |  |
| Net charge-offs           |  |                                | (12,830 | ) |                                    |   | (8,500 | ) |  |  | (8,680 | ) |  |  | (8,863 | ) |  |  | (499 | ) |  |  | 2 |  |  |  | (39,370 | ) |
|                      |  |                                |         |   |                                    |   |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Provision for loanlosses  |  |                                | 12,844  |   |                                    |   | (5,335 | ) |  |  | 5,392 |  |  |  | 3,647 |  |  |  | 666 |  |  |  | 2 |  |  |  | 17,216 |  |
|                      |  |                                |         |   |                                    |   |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Ending balance            |  | $                              | 48,880  |   |                                    | $ | 22,421 |  |  | $ | 14,868 |  |  | $ | 19,382 |  |  | $ | 916 |  |  | $ | 64 |  |  | $ | 106,531 |  |

----

|                                                |   | June 30,2012 |    |   | March 31,2012 |    |    | December 31,2011 |   |
|-----------------------------------------------------|--------|--------------|---------|--------|---------------|---------|---------|------------------|--------|
| Nonaccrual loans:                                   |   |              |    |   |               |    |    |                  |   |
| Loans secured by real estate:                       |   |              |    |   |               |    |    |                  |   |
| Commercial                                          |   | $       | 93,792  |   |          | $  | 114,225 |             |   | $  | 121,250 |   |
| Residential (including multi-family)                |   |         | 36,525  |   |          |    | 39,094  |             |   |   | 45,357 |   |
| Construction, land development and other land       |   |         | 17,409  |   |          |    | 21,411  |             |   |   | 29,088 |   |
| Total loans secured by real estate                  |   |         | 147,726 |   |          |    | 174,730 |             |   |   | 195,695 |   |
| Commercial and other business-purpose loans         |   |         | 13,238  |   |          |    | 14,901  |             |   |   | 17,818 |   |
| Consumer                                            |   |         | 174     |   |          |    | 182     |             |   |   | 124 |   |
| Total nonaccrual loans                              |   |         | 161,138 |   |          |    | 189,813 |             |   |   | 213,637 |   |
|                                                |   |         |    |   |          |    |    |             |   |   |   |   |
| Past due (>90 days) loans and accruing interest: |   |         |    |   |          |    |    |             |   |   |   |   |
| Loans secured by real estate:                       |   |         |    |   |          |    |    |             |   |   |   |   |
| Commercial                                          |   |         | 1,029   |   |          |    | 515     |             |   |   | 3,778 |   |
| Residential (including multi-family)                |   |         | 231     |   |          |    | 1,089   |             |   |   | 259 |   |
| Construction, land development and other land       |   |         | --      |   |          |    | 312     |             |   |   | -- |   |
| Total loans secured by real estate                  |   |         | 1,260   |   |          |    | 1,916   |             |   |   | 4,037 |   |
| Commercial and other business-purpose loans         |   |         | 93      |   |          |    | 233     |             |   |   | 148 |   |
| Consumer                                            |   |         | 14      |   |          |    | 17      |             |   |   | 38 |   |
| Total past due loans                                |   |         | 1,367   |   |          |    | 2,166   |             |   |   | 4,223 |   |
|                                                |   |         |    |   |          |    |    |             |   |   |   |   |
| Total nonperforming loans                           |   | $       | 162,505 |   |          | $  | 191,979 |             |   | $  | 217,860 |   |
|                                                |   |         |    |   |          |    |    |             |   |   |   |   |
| Real estate owned and otherrepossessed assets       |   |         | 95,331  |   |          |    | 101,651 |             |   |   | 95,587 |   |
|                                                |   |         |    |   |          |    |    |             |   |   |   |   |
| Total nonperforming assets                          |   | $       | 257,836 |   |          | $  | 293,630 |             |   | $  | 313,447 |   |

----

|                                          |   | CarryingValue |    |   | UnpaidPrincipalBalance |   |    | RelatedAllowancefor LoanLosses |   |
|-----------------------------------------------|--------|---------------|---------|--------|------------------------|--------|---------|--------------------------------|--------|
|                                          |   |               |    |   |                        |   |    |                                |   |
| With an allowance recorded:                   |   |               |    |   |                        |   |    |                                |   |
| Loans secured by real estate:                 |   |               |    |   |                        |   |    |                                |   |
| Commercial                                    |   | $             | 91,090  |   |                   | $      | 103,121 |                           |   | $ | 11,633 |   |
| Residential (including multi-family)          |   |          | 30,953  |   |                   |   | 45,210  |                           |   |   | 4,292 |   |
| Construction, land development and other land |   |          | 13,017  |   |                   |   | 19,311  |                           |   |   | 2,278 |   |
| Total loans secured by real estate            |   |          | 135,060 |   |                   |   | 167,642 |                           |   |   | 18,203 |   |
| Commercial and other business-purpose loans   |   |          | 13,989  |   |                   |   | 25,377  |                           |   |   | 3,042 |   |
| Consumer                                      |   |          | 306     |   |                   |   | 1,789   |                           |   |   | 31 |   |
|                                          |   |          | 149,355 |   |                   |   | 194,808 |                           |   |   | 21,276 |   |
| With no related allowance recorded:           |   |          |    |   |                   |   |    |                           |   |   |   |   |
| Loans secured by real estate:                 |   |          |    |   |                   |   |    |                           |   |   |   |   |
| Commercial                                    |   |          | 66,967  |   |                   |   | 101,509 |                           |   |   |   |   |
| Residential (including multi-family)          |   |          | 29,571  |   |                   |   | 43,160  |                           |   |   |   |   |
| Construction, land development and other land |   |          | 14,712  |   |                   |   | 26,343  |                           |   |   |   |   |
| Total loans secured by real estate            |   |          | 111,250 |   |                   |   | 171,012 |                           |   |   |   |   |
| Commercial and other business-purpose loans   |   |          | 7,466   |   |                   |   | 11,895  |                           |   |   |   |   |
| Consumer                                      |   |          | 15      |   |                   |   | 15      |                           |   |   |   |   |
|                                          |   |          | 118,731 |   |                   |   | 182,922 |                           |   |          |    |   |
|                                          |   |          |    |   |                   |   |    |                           |   |   |   |   |
| Total                                         |   | $             | 268,086 |   |                   | $      | 377,730 |                           |   | $ | 21,276 |   |

|                                          |   | Three Months EndedJune 30, 2012 |    |   | Six Months EndedJune 30, 2012 |   |
|-----------------------------------------------|--------|---------------------------------|---------|--------|-------------------------------|--------|
|                                          |   | Average                         |    |   | Interest                      |   |   | Average |   |   | Interest |   |
|                                          |   | Recorded                        |    |   | Income                        |   |   | Recorded |   |   | Income |   |
|                                          |   | Investment                      |    |   | Recorded                      |   |   | Investment |   |   | Recorded |   |
|                                          |   |                                 |    |   |                               |   |   |  |   |   |  |   |
| Commercial                                    |   | $                               | 164,182 |   |                          | $      | 664 |   |   | $ | 167,544 |   |   | $ | 2,325 |   |
| Residential (including multi-family)          |   |                            | 60,434  |   |                          |   | 587 |   |   |   | 62,526 |   |   |   | 1,231 |   |
| Construction, land development and other land |   |                            | 30,302  |   |                          |   | 299 |   |   |   | 33,462 |   |   |   | 596 |   |
| Total loans secured by real estate            |   |                            | 254,918 |   |                          |   | 1,550 |   |   |   | 263,532 |   |   |   | 4,152 |   |
| Commercial and other business-purpose loans   |   |                            | 23,310  |   |                          |   | 338 |   |   |   | 24,686 |   |   |   | 640 |   |
| Consumer                                      |   |                            | 311     |   |                          |   | 7 |   |   |   | 266 |   |   |   | 10 |   |
|                                          |   |                            |    |   |                          |   |   |   |   |   |   |   |   |   |   |   |
| Total                                         |   | $                               | 278,539 |   |                          | $      | 1,895 |   |   | $ | 288,484 |   |   | $ | 4,802 |   |

----

|                                          |   | Three Months EndedJune 30, 2011 |    |   | Six Months EndedJune 30, 2011 |   |
|-----------------------------------------------|--------|---------------------------------|---------|--------|-------------------------------|--------|
|                                          |   | Average                         |    |   | Interest                      |   |   | Average |   |   | Interest |   |
|                                          |   | Recorded                        |    |   | Income                        |   |   | Recorded |   |   | Income |   |
|                                          |   | Investment                      |    |   | Recorded                      |   |   | Investment |   |   | Recorded |   |
|                                          |   |                                 |    |   |                               |   |   |  |   |   |  |   |
| Commercial                                    |   | $                               | 177,976 |   |                          | $      | 429 |   |   | $ | 177,749 |   |   | $ | 978 |   |
| Residential (including multi-family)          |   |                            | 59,928  |   |                          |   | 121 |   |   |   | 61,904 |   |   |   | 250 |   |
| Construction, land development and other land |   |                            | 48,161  |   |                          |   | 75 |   |   |   | 49,232 |   |   |   | 111 |   |
| Total loans secured by real estate            |   |                            | 286,065 |   |                          |   | 625 |   |   |   | 288,885 |   |   |   | 1,339 |   |
| Commercial and other business-purpose loans   |   |                            | 29,046  |   |                          |   | 1 |   |   |   | 30,631 |   |   |   | 74 |   |
| Consumer                                      |   |                            | 307     |   |                          |   |   |   |   |          | 278 |   |   |          |    |   |
|                                          |   |                            |    |   |                          |   |   |   |   |   |   |   |   |   |   |   |
| Total                                         |   | $                               | 315,418 |   |                          | $      | 626 |   |   | $ | 319,794 |   |   | $ | 1,413 |   |

|                                          |   | CarryingValue |    |   | UnpaidPrincipalBalance |   |    | RelatedAllowancefor LoanLosses |   |
|-----------------------------------------------|--------|---------------|---------|--------|------------------------|--------|---------|--------------------------------|--------|
|                                          |   |               |    |   |                        |   |    |                                |   |
| With an allowance recorded:                   |   |               |    |   |                        |   |    |                                |   |
| Loans secured by real estate:                 |   |               |    |   |                        |   |    |                                |   |
| Commercial                                    |   | $             | 68,486  |   |                   | $      | 79,753  |                           |   | $ | 11,053 |   |
| Residential (including multi-family)          |   |          | 32,054  |   |                   |   | 36,628  |                           |   |   | 5,288 |   |
| Construction, land development and other land |   |          | 15,443  |   |                   |   | 21,391  |                           |   |   | 3,464 |   |
| Total loans secured by real estate            |   |          | 115,983 |   |                   |   | 137,772 |                           |   |   | 19,805 |   |
| Commercial and other business-purpose loans   |   |          | 16,037  |   |                   |   | 17,294  |                           |   |   | 4,696 |   |
| Consumer                                      |   |          | 166     |   |                   |   | 173     |                           |   |   | 95 |   |
|                                          |   |          | 132,186 |   |                   |   | 155,239 |                           |   |   | 24,596 |   |
| With no related allowance recorded:           |   |          |    |   |                   |   |    |                           |   |   |   |   |
| Loans secured by real estate:                 |   |          |    |   |                   |   |    |                           |   |   |   |   |
| Commercial                                    |   |          | 105,548 |   |                   |   | 145,956 |                           |   |   |   |   |
| Residential (including multi-family)          |   |          | 33,928  |   |                   |   | 45,902  |                           |   |   |   |   |
| Construction, land development and other land |   |          | 24,278  |   |                   |   | 39,537  |                           |   |   |   |   |
| Total loans secured by real estate            |   |          | 163,754 |   |                   |   | 231,395 |                           |   |   |   |   |
| Commercial and other business-purpose loans   |   |          | 11,658  |   |                   |   | 16,976  |                           |   |   |   |   |
| Consumer                                      |   |          | 12      |   |                   |   | 48      |                           |   |   |   |   |
|                                          |   |          | 175,424 |   |                   |   | 248,419 |                           |   |          |    |   |
|                                          |   |          |    |   |                   |   |    |                           |   |   |   |   |
| Total                                         |   | $             | 307,610 |   |                   | $      | 403,658 |                           |   | $ | 24,596 |   |

----

|                                          |   | June 30, 2012                |   |
|-----------------------------------------------|--------|------------------------------|--------|
|                                          |   | Past Due Loans               |   |   | Total |   |   |  |   |   |  |   |
|                                          |   | (based on payment due dates) |   |   | Amount of |   |   |  |   |   |  |   |
|                                          |   |                              |   |   |  |   |   | Loans on |   |   | Loans More |   |   | Loans Either |   |   |  |   |
|                                          |   | More Than                    |   |   |  |   |   | Nonaccrual |   |   | Than 29 Days |   |   | Current or |   |   |  |   |
|                                          |   | 29 Days,                     |   |   | More Than |   |   | Status |   |   | Past Due or on |   |   | Less Than |   |   | Total |   |
|                                          |   | and Less Than                |   |   | 89 Days |   |   | (Generally, 90 |   |   | Nonaccrual |   |   | 30 Days |   |   | Portfolio |   |
|                                          |   | 90 Days                      |   |   | (Accruing) |   |   | Days or More) |   |   | Status |   |   | Past Due |   |   | Loans |   |
|                                          |   |                              |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |
| Loans secured by real estate:                 |   |                              |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |
| Commercial                                    |   | $                            | 13,373 |   |   | $ | 1,029 |   |   | $ | 93,792 |   |   | $ | 108,194 |   |   | $ | 733,568 |   |   | $ | 841,762 |   |
| Residential (including multi-family           |   |                         | 3,913  |   |   |   | 231 |   |   |   | 36,525 |   |   |   | 40,669 |   |   |   | 250,506 |   |   |   | 291,175 |   |
| Construction, land development and other land |   |                         | 1,575  |   |   |   |   |   |   |         | 17,409 |   |   |   | 18,984 |   |   |   | 59,005 |   |   |   | 77,989 |   |
| Total loans secured by realestate             |   |                         | 18,861 |   |   |   | 1,260 |   |   |   | 147,726 |   |   |   | 167,847 |   |   |   | 1,043,079 |   |   |   | 1,210,926 |   |
| Commercial and other business-purpose loans   |   |                         | 2,224  |   |   |   | 93 |   |   |   | 13,238 |   |   |   | 15,555 |   |   |   | 140,696 |   |   |   | 156,251 |   |
| Consumer                                      |   |                         | 139    |   |   |   | 14 |   |   |   | 174 |   |   |   | 327 |   |   |   | 10,273 |   |   |   | 10,600 |   |
| Other                                         |   |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |                                 | 1,490 |   |   |   | 1,490 |   |
|                                          |   |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                                         |   | $                            | 21,224 |   |   | $ | 1,367 |   |   | $ | 161,138 |   |   | $ | 183,729 |   |   | $ | 1,195,538 |   |   | $ | 1,379,267 |   |

|                                          |   | December 31, 2011            |   |
|-----------------------------------------------|--------|------------------------------|--------|
|                                          |   | Past Due Loans               |   |   | Total |   |   |  |   |   |  |   |
|                                          |   | (based on payment due dates) |   |   | Amount of |   |   |  |   |   |  |   |
|                                          |   |                              |   |   |  |   |   | Loans on |   |   | Loans More |   |   | Loans Either |   |   |  |   |
|                                          |   | More Than                    |   |   |  |   |   | Nonaccrual |   |   | Than 29 Days |   |   | Current or |   |   |  |   |
|                                          |   | 29 Days,                     |   |   | More Than |   |   | Status |   |   | Past Due or on |   |   | Less Than |   |   | Total |   |
|                                          |   | and Less Than                |   |   | 89 Days |   |   | (Generally, 90 |   |   | Nonaccrual |   |   | 30 Days |   |   | Portfolio |   |
|                                          |   | 90 Days                      |   |   | (Accruing) |   |   | Days or More) |   |   | Status |   |   | Past Due |   |   | Loans |   |
|                                          |   |                              |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |
| Loans secured by real estate:                 |   |                              |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |
| Commercial                                    |   | $                            | 16,770 |   |   | $ | 3,778 |   |   | $ | 121,250 |   |   | $ | 141,798 |   |   | $ | 765,579 |   |   | $ | 907,377 |   |
| Residential (including multi-family           |   |                         | 4,913  |   |   |   | 259 |   |   |   | 45,357 |   |   |   | 50,529 |   |   |   | 281,581 |   |   |   | 332,110 |   |
| Construction, land development and other land |   |                         | 3,691  |   |   |   |   |   |   |         | 29,088 |   |   |   | 32,779 |   |   |   | 72,489 |   |   |   | 105,268 |   |
| Total loans secured by realestate             |   |                         | 25,374 |   |   |   | 4,037 |   |   |   | 195,695 |   |   |   | 225,106 |   |   |   | 1,119,649 |   |   |   | 1,344,755 |   |
| Commercial and other business-purpose loans   |   |                         | 3,930  |   |   |   | 148 |   |   |   | 17,818 |   |   |   | 21,896 |   |   |   | 159,453 |   |   |   | 181,349 |   |
| Consumer                                      |   |                         | 476    |   |   |   | 38 |   |   |   | 124 |   |   |   | 638 |   |   |   | 11,590 |   |   |   | 12,228 |   |
| Other                                         |   |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |                                 | 2,781 |   |   |   | 2,781 |   |
|                                          |   |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                                         |   | $                            | 29,780 |   |   | $ | 4,223 |   |   | $ | 213,637 |   |   | $ | 247,640 |   |   | $ | 1,293,473 |   |   | $ | 1,541,113 |   |

----

|                                          |   | June 30, 2012 |    |
|-----------------------------------------------|--------|---------------|---------|
|                                          |   | Pass          |    |   |  |   |   | TotalPortfolioLoans |   |
|                                          |   | Watch         |    |   | Substandard |   |
|                                          |   |               |    |   |  |   |   |  |   |   |  |   |
| Loans secured by real estate:                 |   |               |    |   |  |   |   |  |   |   |  |   |
| Commercial                                    |   | $             | 571,210 |   |   | $ | 99,766 |   |   | $ | 170,786 |   |   | $ | 841,762 |   |
| Residential (including multi-family)          |   |          | 199,684 |   |   |   | 25,662 |   |   |   | 65,829 |   |   |   | 291,175 |   |
| Construction, land development and other land |   |          | 40,399  |   |   |   | 12,470 |   |   |   | 25,120 |   |   |   | 77,989 |   |
| Total loans secured by real estate            |   |          | 811,293 |   |   |   | 137,898 |   |   |   | 261,735 |   |   |   | 1,210,926 |   |
| Commercial and other business-purpose loans   |   |          | 118,629 |   |   |   | 12,310 |   |   |   | 25,312 |   |   |   | 156,251 |   |
| Consumer                                      |   |          | 9,557   |   |   |   | 622 |   |   |   | 421 |   |   |   | 10,600 |   |
| Other                                         |   |          | 1,490   |   |   |   |   |   |   |   |   |   |   |                    | 1,490 |   |
|                                          |   |          |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                                         |   | $             | 940,969 |   |   | $ | 150,830 |   |   | $ | 287,468 |   |   | $ | 1,379,267 |   |

|                                          |   | December 31, 2011 |      |
|-----------------------------------------------|--------|-------------------|-----------|
|                                          |   | Pass              |      |   |  |   |   | TotalPortfolioLoans |   |
|                                          |   | Watch             |      |   | Substandard |   |
|                                          |   |                   |      |   |  |   |   |  |   |   |  |   |
| Loans secured by real estate:                 |   |                   |      |   |  |   |   |  |   |   |  |   |
| Commercial                                    |   | $                 | 606,691   |   |   | $ | 90,673 |   |   | $ | 210,013 |   |   | $ | 907,377 |   |
| Residential (including multi-family)          |   |              | 224,285   |   |   |   | 31,319 |   |   |   | 76,506 |   |   |   | 332,110 |   |
| Construction, land development and other land |   |              | 52,315    |   |   |   | 12,134 |   |   |   | 40,819 |   |   |   | 105,268 |   |
| Total loans secured by real estate            |   |              | 883,291   |   |   |   | 134,126 |   |   |   | 327,338 |   |   |   | 1,344,755 |   |
| Commercial and other business-purpose loans   |   |              | 135,017   |   |   |   | 14,412 |   |   |   | 31,920 |   |   |   | 181,349 |   |
| Consumer                                      |   |              | 11,134    |   |   |   | 574 |   |   |   | 520 |   |   |   | 12,228 |   |
| Other                                         |   |              | 2,487     |   |   |   | 294 |   |   |   |   |   |   |          | 2,781 |   |
|                                          |   |              |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                                         |   | $                 | 1,031,929 |   |   | $ | 149,406 |   |   | $ | 359,778 |   |   | $ | 1,541,113 |   |

----

| 1. | An extension or renewal of a substandard rated loan with no change in rate or terms, and the terms provided are not representative of current market rates for credits with similar risk characteristics; |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2. | A loan modification where the repayment terms are modified for a specific period of time in order to allow the borrower to liquidate or dispose of the related collateral to provide the ability to pay the loan off in full; |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3. | Modification of the interest rate for a defined period of time in order to allow the borrower to repay the debt, based on current cash flow sources; |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4. | A loan modified to an "interest only" structure for a period of time that will result in the loan being paid off, returned to the contracted terms or refinanced; or |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5. | A modification of a loan into an A/B note structure, where the A note is at market rate terms and conditions, and the B note has been charged off. |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                          |   | Three Months Ended June 30, 2012 |   |
|-----------------------------------------------|--------|----------------------------------|--------|
|                                          |   | Number ofContracts               |   |   | Pre-restructuringOutstandingRecordedInvestment |   |   | Post-restructuringOutstandingRecordedInvestment |   |   | Post-restructuringLoan LossReserve |   |
| Troubled debt restructurings:                 |   |                                  |   |   |  |   |   |  |   |   |  |   |
| Loans secured by real estate:                 |   |                                  |   |   |  |   |   |  |   |   |  |   |
| Commercial                                    |   |                             | 39     |   |   | $ | 17,851 |   |   | $ | 14,345 |   |   | $ | 736 |   |
| Residential                                   |   |                             | 31     |   |   |   | 4,237 |   |   |   | 3,823 |   |   |   | 454 |   |
| Construction, land development and other land |   |                             | 6      |   |   |   | 596 |   |   |   | 563 |   |   |   | 15 |   |
| Total loans secured byreal estate             |   |                             | 76     |   |   |   | 22,684 |   |   |   | 18,731 |   |   |   | 1,205 |   |
| Commercial and other business-purpose loans   |   |                             | 5      |   |   |   | 350 |   |   |   | 327 |   |   |   | 7 |   |
|                                          |   |                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                                         |   |                             | 81     |   |   | $ | 23,034 |   |   | $ | 19,058 |   |   | $ | 1,212 |   |
|                                         |   | Six Months Ended June 30, 2012 |   |
|----------------------------------------------|--------|--------------------------------|--------|
|                                         |   | Number ofContracts             |   |   | Pre-restructuringOutstandingRecordedInvestment |   |   | Post-restructuringOutstandingRecordedInvestment |   |   | Post-restructuringLoan LossReserve |   |
| Troubled debt restructurings:                |   |                                |   |   |  |   |   |  |   |   |  |   |
| Loans secured by real estate:                |   |                                |   |   |  |   |   |  |   |   |  |   |
| Commercial                                   |   |                           | 83     |   |   | $ | 31,081 |   |   | $ | 26,184 |   |   | $ | 1,296 |   |
| Residential                                  |   |                           | 60     |   |   |   | 8,309 |   |   |   | 6,914 |   |   |   | 685 |   |
| Construction, land developmentand other land |   |                           | 12     |   |   |   | 1,652 |   |   |   | 1,400 |   |   |   | 41 |   |
| Total loans secured by real estate           |   |                           | 155    |   |   |   | 41,042 |   |   |   | 34,498 |   |   |   | 2,022 |   |
| Commercial and other business-purpose loans  |   |                           | 18     |   |   |   | 1,304 |   |   |   | 1,194 |   |   |   | 42 |   |
| Consumer                                     |   |                           | 2      |   |   |   | 40 |   |   |   | 39 |   |   |   | 3 |   |
|                                         |   |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                                        |   |                           | 175    |   |   | $ | 42,386 |   |   | $ | 35,731 |   |   | $ | 2,067 |   |

----

|                                                      |   | Three Months EndedJune 30, 2012 |   |   | Six Months EndedJune 30, 2012 |   |
|-----------------------------------------------------------|--------|---------------------------------|--------|--------|-------------------------------|--------|
|                                                      |   | Number ofContracts              |   |   | RecordedInvestment            |   |   | Number ofContracts |   |   | RecordedInvestment |   |
| Troubled debt restructurings that subsequently defaulted: |   |                                 |   |   |                               |   |   |  |   |   |  |   |
| Loans secured by real estate:                             |   |                                 |   |   |                               |   |   |  |   |   |  |   |
| Commercial                                                |   |                            | 10     |   |                          | $      | 1,151 |   |   |   | 16 |   |   | $ | 2,056 |   |
| Residential                                               |   |                            | 7      |   |                          |   | 1,177 |   |   |   | 13 |   |   |   | 1,651 |   |
| Construction, land development and other land             |   |                            | 3      |   |                          |   | 473 |   |   |   | 8 |   |   |   | 1,194 |   |
| Total loans secured byreal estate                         |   |                            | 20     |   |                          |   | 2,801 |   |   |   | 37 |   |   |   | 4,901 |   |
| Commercial and other business-purpose loans               |   |                            | 4      |   |                          |   | 282 |   |   |   | 6 |   |   |   | 384 |   |
| Consumer                                                  |   |                            |   |   |                          |   |   |   |   |                  | 1 |   |   |   | 90 |   |
|                                                      |   |                            |   |   |                          |   |   |   |   |   |   |   |   |   |   |   |
| Total                                                     |   |                            | 24     |   |                          | $      | 3,083 |   |   |   | 44 |   |   | $ | 5,375 |   |
|                                          |   | Troubled Debt Restructuringsat June 30, 2012 |   |
|-----------------------------------------------|--------|----------------------------------------------|--------|
|                                          |   | OnNon-AccrualStatus                          |   |   | On AccrualStatus |   |   | Total |   |
|                                          |   |                                              |   |   |  |   |   |  |   |
| Loans secured by real estate:                 |   |                                              |   |   |  |   |   |  |   |
| Commercial                                    |   | $                                            | 48,637 |   |   | $ | 64,264 |   |   | $ | 112,901 |   |
| Residential (including multi-family)          |   |                                         | 21,912 |   |   |   | 24,016 |   |   |   | 45,928 |   |
| Construction, land development and other land |   |                                         | 9,928  |   |   |   | 10,320 |   |   |   | 20,248 |   |
| Total loans secured by real estate            |   |                                         | 80,477 |   |   |   | 98,600 |   |   |   | 179,077 |   |
| Commercial and other business-purposeloans    |   |                                         | 9,823  |   |   |   | 8,201 |   |   |   | 18,024 |   |
| Consumer                                      |   |                                         | 134    |   |   |   | 147 |   |   |   | 281 |   |
|                                          |   |                                         |   |   |   |   |   |   |   |   |   |   |
| Total                                         |   | $                                            | 90,434 |   |   | $ | 106,948 |   |   | $ | 197,382 |   |

----

|                                          |   | Troubled Debt Restructuringsat December 31, 2011 |    |
|-----------------------------------------------|--------|--------------------------------------------------|---------|
|                                          |   | OnNon-AccrualStatus                              |    |   | On AccrualStatus |   |   | Total |   |
|                                          |   |                                                  |    |   |  |   |   |  |   |
| Loans secured by real estate:                 |   |                                                  |    |   |  |   |   |  |   |
| Commercial                                    |   | $                                                | 65,589  |   |   | $ | 52,784 |   |   | $ | 118,373 |   |
| Residential (including multi-family)          |   |                                             | 25,358  |   |   |   | 20,625 |   |   |   | 45,983 |   |
| Construction, land development and other land |   |                                             | 13,714  |   |   |   | 10,635 |   |   |   | 24,349 |   |
| Total loans secured by real estate            |   |                                             | 104,661 |   |   |   | 84,044 |   |   |   | 188,705 |   |
| Commercial and other business-purpose loans   |   |                                             | 8,336   |   |   |   | 9,876 |   |   |   | 18,212 |   |
| Consumer                                      |   |                                             |    |   |   |          | 54 |   |   |   | 54 |   |
|                                          |   |                                             |    |   |   |   |   |   |   |   |   |   |
| Total                                         |   | $                                                | 112,997 |   |   | $ | 93,974 |   |   | $ | 206,971 |   |
|                              |             |  |   | Sale     |   |   |        |   |
|-----------------------------------|------------------|--|--------|----------|--------|--------|--------|--------|
|                                   | Date Sold        |  |   | Proceeds |   |   | Gain   |   |
|                              |             |  |   |          |   |   |        |   |
| Mountain View Bank of Commerce(1) | January 30, 2012 |  |   | $        | 4,060  |   |   | $      | 126 |   |

| (1) | Previously a majority-owned subsidiary of a bank-development subsidiary controlled by Capitol. |
|-----|------------------------------------------------------------------------------------------------|

----

|                                                                                           |   | Three Months Ended June 30 |   |   | Six Months Ended June 30 |   |
|------------------------------------------------------------------------------------------------|--------|----------------------------|--------|--------|--------------------------|--------|
|                                                                                           |   | 2012                       |   |   | 2011                     |   |   | 2012 |   |   | 2011 |   |
|                                                                                           |   |                            |   |   |                          |   |   |  |   |   |  |   |
| Interest income                                                                                |   | $                          | 1,725  |   |                     | $      | 9,191 |   |   | $ | 3,696 |   |   | $ | 19,861 |   |
| Interest expense                                                                               |   |                       | 398    |   |                     |   | 1,548 |   |   |   | 856 |   |   |   | 3,520 |   |
| Net interest income                                                                            |   |                       | 1,327  |   |                     |   | 7,643 |   |   |   | 2,840 |   |   |   | 16,341 |   |
| Provision for loan losses                                                                      |   |                       | 101    |   |                     |   | 2,374 |   |   |   | 561 |   |   |   | 4,855 |   |
| Net interest income after provision for loanlosses                                             |   |                       | 1,226  |   |                     |   | 5,269 |   |   |   | 2,279 |   |   |   | 11,486 |   |
| Noninterest income                                                                             |   |                       | 376    |   |                     |   | 1,134 |   |   |   | 708 |   |   |   | 2,279 |   |
| Gain on sale of bank subsidiaries                                                              |   |                       |   |   |                     |   | 184 |   |   |   | 126 |   |   |   | 4,552 |   |
| Noninterest expense                                                                            |   |                       | 1,507  |   |                     |   | 7,027 |   |   |   | 2,954 |   |   |   | 14,081 |   |
| Income (loss) before income taxes                                                              |   |                       | 95     |   |                     |   | (440 | ) |   |   | 159 |   |   |   | 4,236 |   |
| Less income tax expense                                                                        |   |                       | 80     |   |                     |   | 208 |   |   |   | 62 |   |   |   | 1,807 |   |
| Net income (loss) from discontinued operations                                                 |   |                       | 15     |   |                     |   | (648 | ) |   |   | 97 |   |   |   | 2,429 |   |
| Net (income) loss attributable tononcontrolling interests in consolidatedsubsidiaries          |   |                       | (22    | )      |                     |   | 478 |   |   |   | 66 |   |   |   | 651 |   |
| Net income (loss) from discontinuedoperations attributable to Capitol BancorpLimited           |   | $                          | (7     | )      |                     | $      | (170 | ) |   | $ | 163 |   |   | $ | 3,080 |   |
| Net income from discontinued operationsper common share attributable to CapitolBancorp Limited |   | $                          | --     |   |                     | $      | -- |   |   | $ | -- |   |   | $ | 0.08 |   |
|                          |   | June 30,2012 |    |   | Dec 31,2011 |   |         |           | June 30,2012                |   |    | Dec 31,2011 |   |
|-------------------------------|--------|--------------|---------|--------|-------------|--------|--------------|----------------|-----------------------------|--------|---------|-------------|--------|
| Assets:                       |   |              |    |   |             |   | Liabilities: |           |                             |   |    |             |   |
| Cash and cash equivalents     |   | $            | 34,554  |   |        | $      | 40,575       |           | Noninterest-bearingdeposits |   |         |        |   |  |   |
| Investment securities         |   |         | 4,179   |   |        |   | 10,199       |           |                        | $      | 24,335  |        |   | $ | 27,292 |   |
| Federal Home Loan Bankstock   |   |         |    |   |        |   |         |           | Interest-bearing deposits   |   |    | 123,319     |   |   |   | 165,864 |   |
|                          |   | 593          |    |   |        | 957    |         | Total deposits |                        |   | 147,654 |        |   |   | 193,156 |   |
| Portfolio loans               |   |         | 122,953 |   |        |   | 163,156      |           | Other liabilities           |   |    | 9,991       |   |   |   | 12,600 |   |
| Less allowance for loanlosses |   |         |    |   |        |   |         |           |                        |   |    |        |   |   |   |   |   |
|                          |   | (5,579       | )       |   |        | (6,535 | )            |           |                        | $      | 157,645 |        |   | $ | 205,756 |   |
| Net portfolio loans           |   |         | 117,374 |   |        |   | 156,621      |           |                        |   |    |        |   |   |   |   |   |
| Premises and equipment        |   |         | 3,911   |   |        |   | 3,452        |           |                        |   |    |        |   |   |   |   |   |
| Other real estate owned       |   |         | 3,379   |   |        |   | 5,949        |           |                        |   |    |        |   |   |   |   |   |
| Other assets                  |   |         | 2,167   |   |        |   | 4,745        |           |                        |   |    |        |   |   |   |   |   |
|                          |   |         |    |   |        |   |         |           |                        |   |    |        |   |   |   |   |   |
|                          |   | $            | 166,157 |   |        | $      | 222,498      |           |                        |   |    |        |   |   |   |   |   |

----

----

|                                         |   | June 30, 2012 |   |   | December 31, 2011                           |    |
|----------------------------------------------|--------|---------------|--------|--------|---------------------------------------------|---------|
|                                         |   | Total         |   |   | Significant OtherObservable Inputs(Level 2) |    |   | Total |   |   | Significant OtherObservable Inputs(Level 2) |   |
|                                         |   |               |   |   |                                             |    |   |  |   |   |  |   |
| Investment securities available for sale:(1) |   |               |   |   |                                             |    |   |  |   |   |  |   |
| United States treasury                       |   | $        | 3,502  |   |                                        | $  | 3,502 |   |   | $  | 4,013 |   |   | $  | 4,013 |   |
| United States government agency              |   |          | 3,998  |   |                                        |    | 3,998 |   |   |   |   |   |   |   |   |   |
| Mortgage-backed                              |   |          | 9,493  |   |                                        |    | 9,493 |   |   |   | 10,592 |   |   |   | 10,592 |   |
| Municipalities                               |   |          | 106    |   |                                        |    | 106 |   |   |   | 278 |   |   |   | 278 |   |
|                                         |   |          |   |   |                                        |    |   |   |   |   |   |   |   |   |   |   |
|                                         |   | $        | 17,099 |   |                                        | $  | 17,099 |   |   | $  | 14,883 |   |   | $  | 14,883 |   |

| (1) | Level 2 inputs for investment securities available for sale include pricing models from independent pricing sources with reasonable levels of price transparency. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                       |   | June 30, 2012 |    |   | December 31, 2011                      |    |
|----------------------------|--------|---------------|---------|--------|----------------------------------------|---------|
|                       |   | Total         |    |   | SignificantUnobservableInputs(Level 3) |    |   | Total |   |   | SignificantUnobservableInputs(Level 3) |   |
|                       |   |               |    |   |                                        |    |   |  |   |   |  |   |
| Impaired loans(1)          |   | $        | 118,731 |   |                                   | $  | 118,731 |   |   | $  | 175,424 |   |   | $  | 175,424 |   |
|                       |   |          |    |   |                                   |    |   |   |   |   |   |   |   |   |   |   |
| Other real estate owned(2) |   | $        | 94,834  |   |                                   | $  | 94,834 |   |   | $  | 95,523 |   |   | $  | 95,523 |   |

----

|                                                 |   |                                         |   |   | June 30, 2012 |   |      | December 31, 2011   |   |
|------------------------------------------------------|--------|-----------------------------------------|--------|--------|---------------|--------|-----------|---------------------|--------|
|                                                 |   | Level Usedto MeasureEstimatedFair Value |   |   | CarryingValue |   |      | EstimatedFair Value |   |   | CarryingValue |   |   | EstimatedFair Value |   |
| Financial assets:                                    |   |                                         |   |   |               |   |      |                     |   |   |  |   |   |  |   |
| Cash                                                 |   |                                    | 1      |   |          | $      | 47,466    |                |   | $ | 47,466 |   |   | $ | 38,540 |   |   | $ | 38,540 |   |
| Cash equivalents                                     |   |                                    | 2      |   |          |   | 298,395   |                |   |   | 298,395 |   |   |   | 318,006 |   |   |   | 318,006 |   |
| Loans held for sale                                  |   |                                    | 2      |   |          |   | 1,099     |                |   |   | 1,099 |   |   |   | 2,129 |   |   |   | 2,129 |   |
| Investment securities:                               |   |                                    |   |   |          |   |      |                |   |   |   |   |   |   |   |   |   |   |   |   |
| Available for sale                                   |   |                                    | 2      |   |          |   | 17,099    |                |   |   | 17,099 |   |   |   | 14,883 |   |   |   | 14,883 |   |
| Held for long-term investment                        |   |                                    | 3      |   |          |   | 2,769     |                |   |   | 2,769 |   |   |   | 2,737 |   |   |   | 1,981 |   |
|                                                 |   |                                    |   |   |          |   | 19,868    |                |   |   | 19,868 |   |   |   | 17,620 |   |   |   | 16,864 |   |
| Federal Home Loan Bank and FederalReserve Bank stock |   |                                    | 2      |   |          |   | 12,105    |                |   |   | 12,105 |   |   |   | 12,851 |   |   |   | 12,851 |   |
| Portfolio loans:                                     |   |                                    |   |   |          |   |      |                |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans secured by real estate:                        |   |                                    |   |   |          |   |      |                |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial                                           |   |                                    | 3      |   |          |   | 841,762   |                |   |   | 839,488 |   |   |   | 907,377 |   |   |   | 903,687 |   |
| Residential (including multi-family)                 |   |                                    | 3      |   |          |   | 291,175   |                |   |   | 290,789 |   |   |   | 332,110 |   |   |   | 331,434 |   |
| Construction, land development andother land         |   |                                    | 3      |   |          |   | 77,989    |                |   |   | 78,037 |   |   |   | 105,268 |   |   |   | 105,262 |   |
| Total loans secured by real estate                   |   |                                    |   |   |          |   | 1,210,926 |                |   |   | 1,208,314 |   |   |   | 1,344,755 |   |   |   | 1,340,383 |   |
| Commercial and other business-purposeloans           |   |                                    | 3      |   |          |   | 156,251   |                |   |   | 156,183 |   |   |   | 181,349 |   |   |   | 181,350 |   |
| Consumer                                             |   |                                    | 3      |   |          |   | 10,600    |                |   |   | 10,815 |   |   |   | 12,228 |   |   |   | 12,406 |   |
| Other                                                |   |                                    | 3      |   |          |   | 1,490     |                |   |   | 1,458 |   |   |   | 2,781 |   |   |   | 2,546 |   |
| Total portfolio loans                                |   |                                    |   |   |          |   | 1,379,267 |                |   |   | 1,376,770 |   |   |   | 1,541,113 |   |   |   | 1,536,685 |   |
| Less allowance for loan losses                       |   |                                    | 3      |   |          |   | (73,438   | )                   |   |   | (73,438 | ) |   |   | (86,745 | ) |   |   | (86,745 | ) |
| Net portfolio loans                                  |   |                                    |   |   |          |   | 1,305,829 |                |   |   | 1,303,332 |   |   |   | 1,454,368 |   |   |   | 1,449,940 |   |
|                                                 |   |                                    |   |   |          |   |      |                |   |   |   |   |   |   |   |   |   |   |   |   |
| Financial liabilities:                               |   |                                    |   |   |          |   |      |                |   |   |   |   |   |   |   |   |   |   |   |   |
| Deposits:                                            |   |                                    |   |   |          |   |      |                |   |   |   |   |   |   |   |   |   |   |   |   |
| Noninterest-bearing                                  |   |                                    | 1      |   |          |   | 361,003   |                |   |   | 361,003 |   |   |   | 328,896 |   |   |   | 328,896 |   |
| Interest-bearing:                                    |   |                                    |   |   |          |   |      |                |   |   |   |   |   |   |   |   |   |   |   |   |
| Demand accounts                                      |   |                                    | 2      |   |          |   | 507,722   |                |   |   | 507,722 |   |   |   | 502,866 |   |   |   | 502,866 |   |
| Time certificates of less than $100,000              |   |                                    | 3      |   |          |   | 373,757   |                |   |   | 376,161 |   |   |   | 454,833 |   |   |   | 460,012 |   |
| Time certificates of $100,000 or more                |   |                                    | 3      |   |          |   | 486,550   |                |   |   | 489,034 |   |   |   | 571,803 |   |   |   | 575,942 |   |
| Total interest-bearing                               |   |                                    |   |   |          |   | 1,368,029 |                |   |   | 1,372,917 |   |   |   | 1,529,502 |   |   |   | 1,538,820 |   |
| Total deposits                                       |   |                                    |   |   |          |   | 1,729,032 |                |   |   | 1,733,920 |   |   |   | 1,858,398 |   |   |   | 1,867,716 |   |
| Notes payable and other borrowings                   |   |                                    | 3      |   |          |   | 30,694    |                |   |   | 20,908 |   |   |   | 50,445 |   |   |   | 50,824 |   |
| Subordinated debentures                              |   |                                    | 3      |   |          |   | 149,207   |                |   |   | 29,080 |   |   |   | 149,156 |   |   |   | 123,452 |   |

----

----

|                                                                                                                                                 |   | Three Month Period |    |   | Six Month Period |    |
|------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------|---------|--------|------------------|---------|
|                                                                                                                                                 |   | 2012               |    |   | 2011             |    |   | 2012 |   |   | 2011 |   |
|                                                                                                                                                 |   |                    |    |   |                  |    |   |  |   |   |  |   |
| Numerator-net loss attributable to CapitolBancorp Limited for the period                                                                             |   | $             | (10,339 | )      |             | $  | (16,438 | ) |   | $  | (18,251 | ) |   | $  | (16,149 | ) |
|                                                                                                                                                 |   |               |    |   |             |    |   |   |   |   |   |   |   |   |   |   |
| Denominator:                                                                                                                                         |   |               |    |   |             |    |   |   |   |   |   |   |   |   |   |   |
| Weighted average number of common sharesoutstanding, excluding unvested restricted sharesof common stock (denominator for basic anddiluted net loss) |   |               | 41,021  |   |             |    | 40,946 |   |   |   | 41,020 |   |   |   | 36,579 |   |
|                                                                                                                                                 |   |               |    |   |             |    |   |   |   |   |   |   |   |   |   |   |
| Number of antidilutive stock options excluded fromdiluted net loss per share computation                                                             |   |               | 1,722   |   |             |    | 1,541 |   |   |   | 1,722 |   |   |   | 1,541 |   |
|                                                                                                                                                 |   |               |    |   |             |    |   |   |   |   |   |   |   |   |   |   |
| Number of antidilutive unvested restricted sharesexcluded from basic and diluted net loss pershare computation                                       |   |               | 18      |   |             |    | 30 |   |   |   | 18 |   |   |   | 30 |   |
|                                                                                                                                                 |   |               |    |   |             |    |   |   |   |   |   |   |   |   |   |   |
| Number of antidilutive warrants excluded fromdiluted net loss per share computation                                                                  |   |               | 1,250   |   |             |    | 1,326 |   |   |   | 1,250 |   |   |   | 1,326 |   |
|                                                                                                                                                 |   |               |    |   |             |    |   |   |   |   |   |   |   |   |   |   |
| Net income (loss) per common share attributable toCapitol Bancorp Limited:                                                                           |   |               |    |   |             |    |   |   |   |   |   |   |   |   |   |   |
| From continuing operations                                                                                                                           |   | $                  | (0.25   | )      |             | $       | (0.40 | ) |   | $ | (0.44 | ) |   | $ | (0.52 | ) |
| From discontinued operations                                                                                                                         |   |               | --      |   |             |    | -- |   |   |   | -- |   |   |   | 0.08 |   |
|                                                                                                                                                 |   |               |    |   |             |    |   |   |   |   |   |   |   |   |   |   |
| Total net loss per common share attributableto Capitol Bancorp Limited                                                                               |   | $             | (0.25   | )      |             | $  | (0.40 | ) |   | $  | (0.44 | ) |   | $  | (0.44 | ) |

----

----

| Michigan Commerce Bank      |   |   |
|-----------------------------|--------|--------|
| Bank of Las Vegas           |   |   |
| Sunrise Bank of Arizona     |   |   |
| Sunrise Bank                |   |   |
| Central Arizona Bank        |   |   |
| Sunrise Bank of Albuquerque |   |   |
| 1st Commerce Bank           |   |   |
| Pisgah Community Bank       |   |   |

----

|                                                             |          | June 30, |     |        |  |   | December 31,  |    |
|-------------------------------------------------------------|---------------|----------|----------|--------|--|--------|---------------|---------|
|                                                             |          | 2012     |     |        |  |   | 2011          |    |
| Tier 1 capital to average adjusted total assets:            |          |          |     |        |  |   |               |    |
| Minimum required amount                                     |  ≥ | $   | 80,701   |   |  |        |  ≥ | $  | 92,356 |   |
| Actual amount                                               |          | $   | (132,168 | )      |  |        |          | $  | (109,146 | ) |
| Ratio                                                       |          |     | (6.55    | )%     |  |        |          |    | (4.73 | )% |
|                                                        |          |     |     |   |  |        |          |    |   |   |
| Tier 1 capital to risk-weighted assets:                     |          |     |     |   |  |        |          |    |   |   |
| Minimum required amount(1)                                  |  ≥ | $   | 61,153   |   |  |        |  ≥ | $  | 68,615 |   |
| Actual amount                                               |          | $   | (132,168 | )      |  |        |          | $  | (109,146 | ) |
| Ratio                                                       |          |     | (8.65    | )%     |  |        |          |    | (6.36 | )% |
|                                                        |          |     |     |   |  |        |          |    |   |   |
| Combined Tier 1 and Tier 2 capital to risk-weighted assets: |          |     |     |   |  |        |          |    |   |   |
| Minimum required amount(2)                                  |  ≥ | $   | 122,307  |   |  |        |  ≥ | $  | 137,231 |   |
| Actual amount                                               |          | $   | (132,168 | )      |  |        |          | $  | (109,146 | ) |
| Ratio                                                       |          |     | (8.65    | )%     |  |        |          |    | (6.36 | )% |

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

----

----

|                                      |   | June 30, 2012 |      |   | December 31, 2011 |   |
|-------------------------------------------|--------|---------------|-----------|--------|-------------------|--------|
| Arizona Region:                           |   |               |      |   |                   |   |
| Central Arizona Bank                      |   | $             | 39,297    |   |              | $      | 41,976 |   |
| Sunrise Bank of Albuquerque               |   |          | 56,098    |   |              |   | 60,063 |   |
| Sunrise Bank of Arizona                   |   |          | 258,108   |   |              |   | 303,513 |   |
| Arizona Region Total                      |   |          | 353,503   |   |              |   | 405,552 |   |
|                                      |   |          |      |   |              |   |   |   |
| Colorado Region:                          |   |          |      |   |              |   |   |   |
| Mountain View Bank of Commerce(1)         |   |          |      |   |              |   | 51,665 |   |
|                                      |   |          |      |   |              |   |   |   |
| Great Lakes Region:                       |   |          |      |   |              |   |   |   |
| Bank of Maumee                            |   |          | 35,072    |   |              |   | 33,495 |   |
| Bank of Michigan(1)                       |   |          | 89,898    |   |              |   | 85,664 |   |
| Capitol National Bank                     |   |          | 168,657   |   |              |   | 153,938 |   |
| Indiana Community Bank                    |   |          | 106,905   |   |              |   | 119,372 |   |
| Michigan Commerce Bank                    |   |          | 706,600   |   |              |   | 776,289 |   |
| Great Lakes Region Total                  |   |          | 1,107,132 |   |              |   | 1,168,758 |   |
|                                      |   |          |      |   |              |   |   |   |
| Nevada Region:                            |   |          |      |   |              |   |   |   |
| 1st Commerce Bank                         |   |          | 23,225    |   |              |   | 26,375 |   |
| Bank of Las Vegas                         |   |          | 288,491   |   |              |   | 318,174 |   |
| Nevada Region Total                       |   |          | 311,716   |   |              |   | 344,549 |   |
|                                      |   |          |      |   |              |   |   |   |
| Northwest Region:                         |   |          |      |   |              |   |   |   |
| High Desert Bank                          |   |          | 30,713    |   |              |   | 31,020 |   |
|                                      |   |          |      |   |              |   |   |   |
| Southeast Region:                         |   |          |      |   |              |   |   |   |
| First Carolina State Bank(1)              |   |          | 76,259    |   |              |   | 85,169 |   |
| Pisgah Community Bank                     |   |          | 27,272    |   |              |   | 28,120 |   |
| Sunrise Bank                              |   |          | 74,753    |   |              |   | 81,119 |   |
| Southeast Region Total                    |   |          | 178,284   |   |              |   | 194,408 |   |
|                                      |   |          |      |   |              |   |   |   |
| Parent company and other, net             |   |          | 4,559     |   |              |   | 9,313 |   |
|                                      |   |          |      |   |              |   |   |   |
| Consolidated totals                       |   |          | 1,985,907 |   |              |   | 2,205,265 |   |
| Less discontinued operations              |   |          | (166,157  | )      |              |   | (222,498 | ) |
|                                      |   |          |      |   |              |   |   |   |
| Consolidated totals-continuing operations |   | $             | 1,819,750 |   |              | $      | 1,982,767 |   |

| (1) | Capitol sold its ownership in First Carolina State Bank effective July 30, 2012, Bank of Michigan effective July 27, 2012 and Mountain View Bank of Commerce effective January 30, 2012.  These banks' operations are included in Capitol's consolidated totals up to the date of sale as part of discontinued operations. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

----

|                                          |   | Secured by Real Estate |    |   |                                    |   |   |                                           |   |   |                                          |   |
|-----------------------------------------------|--------|------------------------|---------|--------|------------------------------------|--------|--------|-------------------------------------------|--------|--------|------------------------------------------|--------|
|                                          |   | Commercial             |    |   | Residential(includingmulti-family) |   |   | Construction,LandDevelopmentand OtherLand |   |   | Commercialand OtherBusiness-PurposeLoans |   |   | Consumer |   |   | Total |   |
|                                          |   |                        |    |   |                                    |   |   |                                           |   |   |                                          |   |   |  |   |   |  |   |
| Beginning balance                             |   | $                      | 118,374 |   |                               | $      | 45,982 |                                      |   | $      | 24,349                                   |   |   | $ | 18,212 |   |   | $ | 54 |   |   | $ | 206,971 |   |
|                                          |   |                   |    |   |                               |   |   |                                      |   |   |                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| New additions                                 |   |                   | 21,626  |   |                               |   | 6,423  |                                      |   |   | 2,084                                    |   |   |   | 1,284 |   |   |   | 39 |   |   |   | 31,456 |   |
|                                          |   |                   |    |   |                               |   |   |                                      |   |   |                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Payments received,including loanspaid-in-full |   |                   | (13,117 | )      |                               |   | (3,151 | )                                         |   |   | (3,607                                   | )      |   |   | (1,953 | ) |   |   | 6 |   |   |   | (21,822 | ) |
|                                          |   |                   |    |   |                               |   |   |                                      |   |   |                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Charge-offs and other                         |   |                   | (13,982 | )      |                               |   | (3,326 | )                                         |   |   | (2,578                                   | )      |   |   | 481 |   |   |   | 182 |   |   |   | (19,223 | ) |
|                                          |   |                   |    |   |                               |   |   |                                      |   |   |                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Ending balance                                |   | $                      | 112,901 |   |                               | $      | 45,928 |                                      |   | $      | 20,248                                   |   |   | $ | 18,024 |   |   | $ | 281 |   |   | $ | 197,382 |   |

----

| Other real estate owned at January 1                                 |   | $      | 95,523  |   |
|----------------------------------------------------------------------|--------|--------|---------|--------|
| Properties acquired in restructure ofloans or in lieu of foreclosure |   |   | 30,795  |   |
| Properties sold                                                      |   |   | (23,822 | )      |
| Payments received from tenants,credited to carrying amount           |   |   | (34     | )      |
| Write-down of other real estate owned                                |   |   | (7,628  | )      |
|                                                                 |   |   |    |   |
| Other real estate owned at June 30                                   |   | $      | 94,834  |   |

|                                                 |   |                       |      |   | Allowance for |    |      |                     |   |    | Allowance as a Percentage |   |
|------------------------------------------------------|--------|-----------------------|-----------|--------|---------------|---------|-----------|---------------------|--------|---------|---------------------------|--------|
|                                                 |   | Total Portfolio Loans |      |   | Loan Losses   |    |      | Nonperforming Loans |   |    | of Total Portfolio Loans  |   |
|                                                 |   | June 30,2012          |      |   | Dec 31,2011   |    |      | June 30,2012        |   |    | Dec 31,2011               |   |   | June 30,2012 |   |   | Dec 31,2011 |   |   | June 30,2012 |   |   | Dec 31,2011 |   |
| Arizona Region:                                      |   |                       |      |   |               |    |      |                     |   |    |                           |   |   |  |   |   |  |   |   |  |   |   |  |   |
| Central Arizona Bank                                 |   | $                     | 30,454    |   |          | $       | 33,108    |                |   | $       | 1,586                     |   |   | $ | 1,801 |   |   | $ | 3,281 |   |   | $ | 4,069 |   |   |   | 5.21 | % |   |   | 5.44 | % |
| Sunrise Bank of Albuquerque                          |   |                  | 41,866    |   |          |    | 45,924    |                |   |    | 2,135                     |   |   |   | 2,013 |   |   |   | 4,585 |   |   |   | 4,077 |   |   |   | 5.10 | % |   |   | 4.38 | % |
| Sunrise Bank of Arizona                              |   |                  | 203,886   |   |          |    | 237,914   |                |   |    | 6,147                     |   |   |   | 11,126 |   |   |   | 18,199 |   |   |   | 24,038 |   |   |   | 3.01 | % |   |   | 4.68 | % |
| Arizona Region Total                                 |   |                  | 276,206   |   |          |    | 316,946   |                |   |    | 9,868                     |   |   |   | 14,940 |   |   |   | 26,065 |   |   |   | 32,184 |   |   |   | 3.57 | % |   |   | 4.71 | % |
|                                                 |   |                  |      |   |          |    |      |                |   |    |                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Colorado Region:                                     |   |                  |      |   |          |    |      |                |   |    |                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Mountain View Bank of Commerce(1)                    |   |                  |      |   |          |    | 40,060    |                |   |    |                      |   |   |   | 751 |   |   |   |   |   |   |   | 22 |   |   |   |   |   |   |   | 1.87 | % |
|                                                 |   |                  |      |   |          |    |      |                |   |    |                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Great Lakes Region:                                  |   |                  |      |   |          |    |      |                |   |    |                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Bank of Maumee                                       |   |                  | 24,915    |   |          |    | 26,334    |                |   |    | 1,003                     |   |   |   | 1,084 |   |   |   | 604 |   |   |   | 988 |   |   |   | 4.03 | % |   |   | 4.12 | % |
| Bank of Michigan(1)                                  |   |                  | 71,638    |   |          |    | 64,970    |                |   |    | 1,936                     |   |   |   | 1,505 |   |   |   | 1,125 |   |   |   | 715 |   |   |   | 2.70 | % |   |   | 2.32 | % |
| Capitol National Bank                                |   |                  | 113,339   |   |          |    | 119,929   |                |   |    | 2,901                     |   |   |   | 3,681 |   |   |   | 9,018 |   |   |   | 12,423 |   |   |   | 2.56 | % |   |   | 3.07 | % |
| Indiana Community Bank                               |   |                  | 83,406    |   |          |    | 92,257    |                |   |    | 3,028                     |   |   |   | 3,346 |   |   |   | 5,788 |   |   |   | 7,803 |   |   |   | 3.63 | % |   |   | 3.63 | % |
| Michigan Commerce Bank                               |   |                  | 558,723   |   |          |    | 618,852   |                |   |    | 39,329                    |   |   |   | 41,653 |   |   |   | 63,074 |   |   |   | 86,179 |   |   |   | 7.04 | % |   |   | 6.73 | % |
| Great Lakes Region Total                             |   |                  | 852,021   |   |          |    | 922,342   |                |   |    | 48,197                    |   |   |   | 51,269 |   |   |   | 79,609 |   |   |   | 108,108 |   |   |   | 5.66 | % |   |   | 5.56 | % |
|                                                 |   |                  |      |   |          |    |      |                |   |    |                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Nevada Region:                                       |   |                  |      |   |          |    |      |                |   |    |                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 1st Commerce Bank                                    |   |                  | 16,183    |   |          |    | 18,542    |                |   |    | 1,575                     |   |   |   | 1,634 |   |   |   | 1,981 |   |   |   | 3,998 |   |   |   | 9.73 | % |   |   | 8.81 | % |
| Bank of Las Vegas                                    |   |                  | 210,439   |   |          |    | 240,110   |                |   |    | 9,921                     |   |   |   | 13,440 |   |   |   | 41,344 |   |   |   | 61,908 |   |   |   | 4.71 | % |   |   | 5.60 | % |
| Nevada Region Total                                  |   |                  | 226,622   |   |          |    | 258,652   |                |   |    | 11,496                    |   |   |   | 15,074 |   |   |   | 43,325 |   |   |   | 65,906 |   |   |   | 5.07 | % |   |   | 5.83 | % |
|                                                 |   |                  |      |   |          |    |      |                |   |    |                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Northwest Region:                                    |   |                  |      |   |          |    |      |                |   |    |                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| High Desert Bank                                     |   |                  | 25,431    |   |          |    | 25,913    |                |   |    | 962                       |   |   |   | 957 |   |   |   | 713 |   |   |   |   |   |   |   | 3.78 | % |   |   | 3.69 | % |
|                                                 |   |                  |      |   |          |    |      |                |   |    |                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Southeast Region:                                    |   |                  |      |   |          |    |      |                |   |    |                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| First Carolina State Bank(1)                         |   |                  | 51,315    |   |          |    | 58,126    |                |   |    | 3,643                     |   |   |   | 4,279 |   |   |   | 5,688 |   |   |   | 5,280 |   |   |   | 7.10 | % |   |   | 7.36 | % |
| Pisgah Community Bank                                |   |                  | 16,821    |   |          |    | 19,753    |                |   |    | 1,475                     |   |   |   | 1,925 |   |   |   | 4,268 |   |   |   | 3,717 |   |   |   | 8.77 | % |   |   | 9.75 | % |
| Sunrise Bank                                         |   |                  | 53,544    |   |          |    | 62,207    |                |   |    | 3,375                     |   |   |   | 4,084 |   |   |   | 9,395 |   |   |   | 8,395 |   |   |   | 6.30 | % |   |   | 6.57 | % |
| Southeast Region Total                               |   |                  | 121,680   |   |          |    | 140,086   |                |   |    | 8,493                     |   |   |   | 10,288 |   |   |   | 19,351 |   |   |   | 17,392 |   |   |   | 6.98 | % |   |   | 7.34 | % |
|                                                 |   |                  |      |   |          |    |      |                |   |    |                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Parent company and other, net                        |   |                  | 260       |   |          |    | 270       |                |   |    | 1                         |   |   |   | 1 |   |   |   | 255 |   |   |   | 265 |   |   |   | 0.38 | % |   |   | 0.37 | % |
|                                                 |   |                  |      |   |          |    |      |                |   |    |                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Consolidated totals                                  |   |                  | 1,502,220 |   |          |    | 1,704,269 |                |   |    | 79,017                    |   |   |   | 93,280 |   |   |   | 169,318 |   |   |   | 223,877 |   |   |   | 5.26 | % |   |   | 5.47 | % |
| Less discontinued operations                         |   |                  | (122,953  | )      |          |    | (163,156  | )                   |   |    | (5,579                    | )      |   |   | (6,535 | ) |   |   | (6,813 | ) |   |   | (6,017 | ) |   |   | 4.54 | % |   |   | 4.01 | % |
|                                                 |   |                  |      |   |          |    |      |                |   |    |                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Consolidated totals relating tocontinuing operations |   | $                | 1,379,267 |   |          | $  | 1,541,113 |                |   | $  | 73,438                    |   |   | $  | 86,745 |   |   | $  | 162,505 |   |   | $  | 217,860 |   |   |   | 5.32 | % |   |   | 5.63 | % |

| (1) | Capitol sold its ownership in First Carolina State Bank effective July 30, 2012, Bank of Michigan effective July 27, 2012 and Mountain View Bank of Commerce effective January 30, 2012.  These banks' operations are included in Capitol's consolidated totals up to the date of sale as part of discontinued operations. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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----

|                                                        |   | Three Month Period |   |   | Six Month Period |   |
|-------------------------------------------------------------|--------|--------------------|--------|--------|------------------|--------|
|                                                        |   |               | 2012   |   |             |   | 2011(1) |   |   |   | 2012 |   |   |   | 2011(1) |   |
|                                                        |   |               |   |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Legal fees                                                  |   | $                  | 1,628  |   |             | $      | 626 |   |   | $ | 2,453 |   |   | $ | 1,386 |   |
| Professional fees                                           |   |               | 723    |   |             |   | 789 |   |   |   | 1,400 |   |   |   | 1,212 |   |
| Insurance                                                   |   |               | 486    |   |             |   | 564 |   |   |   | 1,012 |   |   |   | 1,205 |   |
| Loan and collection expense                                 |   |               | 327    |   |             |   | 303 |   |   |   | 634 |   |   |   | 748 |   |
| Bank services (ATMs, telephonebanking and Internet banking) |   |               | 258    |   |             |   | 281 |   |   |   | 523 |   |   |   | 575 |   |
| Communications                                              |   |               | 202    |   |             |   | 229 |   |   |   | 400 |   |   |   | 456 |   |
| Other                                                       |   |               | 1,896  |   |             |   | 877 |   |   |   | 3,349 |   |   |   | 5,131 |   |
|                                                        |   |               |   |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Total                                                       |   | $                  | 5,520  |   |             | $      | 3,669 |   |   | $ | 9,771 |   |   | $ | 10,713 |   |

| (1) | For comparative purposes, original balances as previously reported have been adjusted to exclude amounts related to discontinued operations. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                         |   | Total Revenues |   |   | Net Income (Loss)(1) |    |    | Return onAverage Equity(2) |   |    | Return onAverage Assets(2) |   |
|----------------------------------------------|--------|----------------|--------|--------|----------------------|---------|---------|----------------------------|--------|---------|----------------------------|--------|
|                                         |   | 2012           |   |   | 2011                 |    |    | 2012                       |   |    | 2011                       |   |   | 2012 |   |   | 2011 |   |   | 2012 |   |   | 2011 |   |
| Arizona Region:                              |   |           |   |   |                 |    |    |                       |   |    |                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Central Arizona Bank                         |   | $              | 846    |   |                 | $       | 1,442   |                       |   | $       | (581                       | )      |   | $ | (1,031 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Sunrise Bank of Albuquerque                  |   |           | 1,318  |   |                 |    | 1,536   |                       |   |    | (581                       | )      |   |   | (1,480 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Sunrise Bank of Arizona                      |   |           | 6,760  |   |                 |    | 10,303  |                       |   |    | (2,464                     | )      |   |   | (7,368 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Arizona Region Total                         |   |           | 8,924  |   |                 |    | 13,281  |                       |   |    | (3,626                     | )      |   |   | (9,879 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                         |   |           |   |   |                 |    |    |                       |   |    |                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| California Region:                           |   |           |   |   |                 |    |    |                       |   |    |                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Bank of Feather River(3)                     |   |           |   |   |                 |    | 1,536   |                       |   |    |                       |   |   |   | 143 |   |   |   |   |   |   |   | 4.44 | % |   |   |   |   |   |   | 0.69 | % |
| Sunrise Bank(3)                              |   |           |   |   |                 |    | 5,691   |                       |   |    |                       |   |   |   | (729 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| California Region Total                      |   |           |   |   |                 |    | 7,227   |                       |   |    |                       |   |   |   | (586 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                         |   |           |   |   |                 |    |    |                       |   |    |                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Colorado Region:                             |   |           |   |   |                 |    |    |                       |   |    |                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Mountain View Bank of Commerce(3)            |   |           | 221    |   |                 |    | 1,381   |                       |   |    | 16                         |   |   |   | 51 |   |   |   |   |   |   |   | 1.40 | % |   |   |   |   |   |   | 0.18 | % |
|                                         |   |           |   |   |                 |    |    |                       |   |    |                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Great Lakes Region:                          |   |           |   |   |                 |    |    |                       |   |    |                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Bank of Maumee                               |   |           | 801    |   |                 |    | 1,020   |                       |   |    | (271                       | )      |   |   | (82 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Bank of Michigan(3)                          |   |           | 2,630  |   |                 |    | 2,561   |                       |   |    | 6                          |   |   |   | 220 |   |   |   | 0.17 | % |   |   | 6.30 | % |   |   | 0.01 | % |   |   | 0.55 | % |
| Capitol National Bank                        |   |           | 3,772  |   |                 |    | 4,356   |                       |   |    | 69                         |   |   |   | (121 | ) |   |   | 1.26 | % |   |   |   |   |   |   | 0.09 | % |   |   |   |   |
| Evansville Commerce Bank(3)                  |   |           |   |   |                 |    | 1,186   |                       |   |    |                       |   |   |   | (96 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Indiana Community Bank                       |   |           | 2,702  |   |                 |    | 3,310   |                       |   |    | 130                        |   |   |   | (158 | ) |   |   | 3.22 | % |   |   |   |   |   |   | 0.23 | % |   |   |   |   |
| Michigan Commerce Bank                       |   |           | 22,701 |   |                 |    | 28,390  |                       |   |    | (363                       | )      |   |   | (11,613 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Great Lakes Region Total                     |   |           | 32,606 |   |                 |    | 40,823  |                       |   |    | (429                       | )      |   |   | (11,850 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                         |   |           |   |   |                 |    |    |                       |   |    |                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Nevada Region:                               |   |           |   |   |                 |    |    |                       |   |    |                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 1st Commerce Bank                            |   |           | 498    |   |                 |    | 660     |                       |   |    | (335                       | )      |   |   | (2,933 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Bank of Las Vegas                            |   |           | 6,099  |   |                 |    | 7,168   |                       |   |    | (2,221                     | )      |   |   | (2,811 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Nevada Region Total                          |   |           | 6,597  |   |                 |    | 7,828   |                       |   |    | (2,556                     | )      |   |   | (5,744 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                         |   |           |   |   |                 |    |    |                       |   |    |                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Northwest Region:                            |   |           |   |   |                 |    |    |                       |   |    |                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Bank of the Northwest(3)                     |   |           |   |   |                 |    | 3,700   |                       |   |    |                       |   |   |   | (472 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| High Desert Bank                             |   |           | 880    |   |                 |    | 959     |                       |   |    | (336                       | )      |   |   | (487 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Northwest Region Total                       |   |           | 880    |   |                 |    | 4,659   |                       |   |    | (336                       | )      |   |   | (959 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                         |   |           |   |   |                 |    |    |                       |   |    |                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Southeast Region:                            |   |           |   |   |                 |    |    |                       |   |    |                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Community Bank of Rowan(3)                   |   |           |   |   |                 |    | 2,123   |                       |   |    |                       |   |   |   | 46 |   |   |   |   |   |   |   | 1.88 | % |   |   |   |   |   |   | 0.14 | % |
| First Carolina State Bank(3)                 |   |           | 1,553  |   |                 |    | 2,029   |                       |   |    | (898                       | )      |   |   | (2,961 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Pisgah Community Bank                        |   |           | 448    |   |                 |    | 629     |                       |   |    | (1,253                     | )      |   |   | (3,000 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Sunrise Bank                                 |   |           | 1,793  |   |                 |    | 2,390   |                       |   |    | (2,582                     | )      |   |   | (3,233 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Southeast Region Total                       |   |           | 3,794  |   |                 |    | 7,171   |                       |   |    | (4,733                     | )      |   |   | (9,148 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                         |   |           |   |   |                 |    |    |                       |   |    |                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Texas Region:                                |   |           |   |   |                 |    |    |                       |   |    |                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Bank of Fort Bend(3)                         |   |           |   |   |                 |    | 720     |                       |   |    |                       |   |   |   | 128 |   |   |   |   |   |   |   | 14.82 | % |   |   |   |   |   |   | 2.27 | % |
| Bank of Las Colinas(3)                       |   |           |   |   |                 |    | 1,215   |                       |   |    |                       |   |   |   | 117 |   |   |   |   |   |   |   | 4.17 | % |   |   |   |   |   |   | 0.50 | % |
| Texas Region Total                           |   |           |   |   |                 |    | 1,935   |                       |   |    |                       |   |   |   | 245 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                         |   |           |   |   |                 |    |    |                       |   |    |                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Parent company and other, net                |   |           | (433   | )      |                 |    | 14,515  |                       |   |    | (7,945                     | )      |   |   | 17,590 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Consolidated totals                          |   |           | 52,589 |   |                 |    | 98,820  |                       |   |    | (19,609                    | )      |   |   | (20,280 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Less discontinued operations                 |   |           | (4,404 | )      |                 |    | (22,139 | )                          |   |    | 97                         |   |   |   | 2,429 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |                 |   |   |
|                                         |   |           |   |   |                 |    |    |                       |   |    |                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Consolidated totals forcontinuing operations |   | $         | 48,185 |   |                 | $  | 76,681  |                       |   | $  | (19,706                    | )      |   | $  | (22,709 | ) |   |   | -- |   |   |   | -- |   |   |   | -- |   |   |   | -- |   |
| (1) | Excludes net losses attributable to noncontrolling interests.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (2) | Annualized for periods presented.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| (3) | Capitol sold its ownership in First Carolina State Bank effective July 30, 2012; Bank of Michigan effective July 27, 2012; Mountain View Bank of Commerce effective January 30, 2012; Bank of Las Colinas effective October 27, 2011; Evansville Commerce Bank effective October 10, 2011; Bank of Feather River effective October 4, 2011; Bank of the Northwest and Sunrise Bank effective July 28, 2011; Community Bank of Rowan effective April 19, 2011 and Bank of Fort Bend effective March 30, 2011.  The banks' operations have been included in Capitol's consolidated totals up to the date of sale as part of discontinued operations. |

----

----

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|                        | Tier 1 Leverage         |   | Tier 1 Risk-Based       |   | Total Risk-Based        |   |                         |
|-----------------------------|-------------------------|--------|-------------------------|--------|-------------------------|--------|------------------------------|
|                        | Ratio(2)                |   | Capital Ratio(2)        |   | Capital Ratio(2)        |   | Regulatory Classification(1) |
|                        | June 30,2012            |   | Dec 31,2011             |   | June 30,2012            |   | Dec 31,2011                  |   | June 30,2012 |   | Dec 31,2011 |   | June 30,2012 |   | Dec 31,2011 |
| Arizona Region:             |                    |   |                    |   |                    |   |                         |   |   |   |   |   |   |   |   |
| Central Arizona Bank        |    2.03% |   |    2.01% |   |    2.71% |   |    2.65%      |   |    4.00% |   |    3.95% |   | significantly-undercapitalized |   | significantly-undercapitalized |
| Sunrise Bank of Albuquerque |    2.10% |   |    2.43% |   |    2.81% |   |    3.22%      |   |    4.10% |   |    4.50% |   | significantly-undercapitalized |   | significantly-undercapitalized |
| Sunrise Bank of Arizona     |    2.04% |   |    2.03% |   |    2.57% |   |    2.56%      |   |    3.84% |   |    3.85% |   | significantly-undercapitalized |   | significantly-undercapitalized |
|                        |                    |   |                    |   |                    |   |                         |   |   |   |   |   |   |   |   |
| Great Lakes Region:         |                    |   |                    |   |                    |   |                         |   |   |   |   |   |   |   |   |
| Bank of Maumee              |    4.55% |   |    5.41% |   |    6.79% |   |    7.56%      |   |    8.08% |   |    8.85% |   | adequately-capitalized |   | adequately-capitalized |
| Capitol National Bank       |    6.60% |   |    6.90% |   |    9.84% |   |    9.15%      |   |  11.11% |   |  10.42% |   | adequately-capitalized(3) |   | adequately-capitalized(3) |
| Indiana Community Bank      |    7.54% |   |    6.66% |   |  10.36%            |   |    9.35%      |   |  11.64% |   |  10.63% |   | adequately-capitalized(3) |   | adequately-capitalized(3) |
| Michigan Commerce Bank      |    2.44% |   |    2.17% |   |    3.04% |   |    2.84%      |   |    4.36% |   |    4.16% |   | significantly-undercapitalized |   | significantly-undercapitalized |
|                        |                    |   |                    |   |                    |   |                         |   |   |   |   |   |   |   |   |
| Nevada Region:              |                    |   |                    |   |                    |   |                         |   |   |   |   |   |   |   |   |
| 1st Commerce Bank           |    2.27% |   |    2.30% |   |    3.24% |   |    3.88%      |   |    4.59% |   |    5.22% |   | significantly-undercapitalized |   | significantly-undercapitalized |
| Bank of Las Vegas           |    2.01% |   |    2.16% |   |    2.68% |   |    2.90%      |   |    3.97% |   |    4.20% |   | significantly-undercapitalized |   | significantly-undercapitalized |
|                        |                    |   |                    |   |                    |   |                         |   |   |   |   |   |   |   |   |
| Northwest Region:           |                    |   |                    |   |                    |   |                         |   |   |   |   |   |   |   |   |
| High Desert Bank            |    5.66% |   |    6.47% |   |    7.65% |   |    8.72%      |   |    8.93% |   |  10.00% |   | adequately-capitalized |   | adequately-capitalized(3) |
|                        |                    |   |                    |   |                    |   |                         |   |   |   |   |   |   |   |   |
| Southeast Region:           |                    |   |                    |   |                    |   |                         |   |   |   |   |   |   |   |   |
| Pisgah Community Bank       |    2.03% |   |    2.09% |   |    2.93% |   |    2.93%      |   |    4.25% |   |    4.28% |   | significantly-undercapitalized |   | significantly-undercapitalized |
| Sunrise Bank                |    2.05% |   |    2.16% |   |    2.89% |   |    2.97%      |   |    4.20% |   |    4.29% |   | significantly-undercapitalized |   | significantly-undercapitalized |
|                        |                    |   |                    |   |                    |   |                         |   |   |   |   |   |   |   |   |
| Consolidated totals         |  (6.55)%           |   |  (4.73)%           |   |  (8.65)%           |   |  (6.36)%                |   |  (8.65)% |   |  (6.36)% |   | less than adequately-capitalized(4) |   | less than adequately-capitalized |
| (1) | Bank regulatory capital classifications are defined as follows:Well-Capitalized - Total risk-based capital ratio must be 10% or more, and Tier 1 risk-based capital ratio must be 6% or more, and Tier 1 leverage ratio must be 5% or more, and the bank must not be subject to formal regulatory enforcement action requiring non-standard capital ratios.Adequately-Capitalized - Does not meet the criteria for "well-capitalized," but has total risk-based capital ratio of 8% or more, and Tier 1 risk-based capital ratio of 4% or more, and Tier 1 leverage ratio of 4% or more.Undercapitalized - Does not meet the criteria for "adequately-capitalized," but has total risk-based capital ratio of 6% or more, and Tier 1 risk-based capital ratio of 3% or more, and Tier 1 leverage ratio of 3% or more.Significantly-Undercapitalized - Does not meet the criteria for "undercapitalized," but has Tier 1 leverage ratio of 2% or more.  Institutions with a Tier 1 leverage ratio below 2% are classified as "critically-undercapitalized." |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (2) | Ratios are based on the banks' regulatory reports filed on or before July 30, 2012.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| (3) | Institution is subject to a regulatory agreement and, accordingly, cannot be classified better than "adequately-capitalized" even though the risk-based capital ratios would otherwise suggest "well-capitalized" classification.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| (4) | Bank holding companies are required to maintain a total risk-based capital ratio of 8% or more, a Tier 1 risk-based capital ratio of 4% or more and a Tier 1 leverage ratio of 4% or more.  The Bank Holding Company Act does not provide uniform terminology to describe bank holding companies exceeding or falling below required capital levels.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |

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| · | An equity deficit approximating $131.9 million; |
|--------|-------------------------------------------------|

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

| · | Numerous banking subsidiaries with regulatory capital classification as "significantly-undercapitalized"; |
|--------|-----------------------------------------------------------------------------------------------------------|

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

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

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

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

----

| · | Significant losses from continuing operations, resulting primarily from elevated provisions for loan losses and costs associated with foreclosed properties and other real estate owned. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| · | Completion of a financial restructuring plan; |
|--------|-----------------------------------------------|

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

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

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

| · | Upon the Tier 1 capital level becoming positive either through future earnings or additional new equity capital, or both, Capitol's trust-preferred securities may be included as a qualifying element of regulatory capital and/or equity; and |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | Further reductions in operating expenses as a result of potential mergers of bank subsidiaries. |
|--------|-------------------------------------------------------------------------------------------------|

----

|                              |             |  |   | Sale     |   |   |        |   |
|-----------------------------------|------------------|--|--------|----------|--------|--------|--------|--------|
|                                   | Date Sold        |  |   | Proceeds |   |   | Gain   |   |
|                              |             |  |   |          |   |   |        |   |
| Mountain View Bank of Commerce(1) | January 30, 2012 |  |   | $        | 4,060  |   |   | $      | 126 |   |

| (1) | Previously a majority-owned subsidiary of a bank-development subsidiary controlled by Capitol. |
|-----|------------------------------------------------------------------------------------------------|

----

----

----

----

| · | No banking subsidiary of Capitol or their respective depositors will be affected in any way.  Each subsidiary bank continues to operate and its customers' deposits remain insured up to the applicable limits by the FDIC.  Banks themselves cannot file for reorganization, but bank holding companies can use the reorganization process under federal law.  Capitol and FCC are bank holding companies, not banks. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | Since the Standby Plan was approved, the court-supervised reorganization should move forward very quickly.  A prepackaged plan shortens and simplifies the bankruptcy process to make it very efficient and effective. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | Subject to the approval of the Bankruptcy Court, all of Capitol's general unsecured creditors will be paid in full in order to maintain the regular course of business at the Corporation's subsidiary banks, as uninterrupted service at the subsidiary bank level is critical to the success of the recapitalization efforts.  A loss of customer confidence in the safety of their deposits would have disastrous consequences for the Corporation. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | Assets are marked to estimated fair value.  The difference between the carrying value of loans, investments and other financial assets before fresh-start accounting (including allowance for loan losses) and the estimated fair value as recorded in fresh-start accounting will be accreted/amortized into interest income over the estimated life of the assets.  This prospective accounting will result in a reduced level of loan charge-offs compared to historic results due to the adjustment of loan balances and concurrent elimination of the allowance for loan losses in the fresh-start accounting. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | Liabilities, including debt, will also be marked to estimated fair value.  The difference between the carrying value of deposits, debt and other financial liabilities before the emergence date and the estimated fair value at the emergence date as recorded in fresh-start accounting  will be accreted/amortized in interest expense over the estimated life of the liabilities or debt. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | All equity held by stockholders prior to emergence from bankruptcy will be cancelled.  Upon exiting, new common equity will be issued to certain debt holders. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| Item 1.  | Legal Proceedings. Capitol and its subsidiaries are parties to certain ordinary, routine litigation incidental to their business.  In the opinion of management, liabilities arising from such litigation would not have a material effect on Capitol's consolidated financial position or results of operations.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|----------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Item 1A. | Risk Factors. The restructuring transactions that will be effectuated under the Joint Plan of Reorganization (the "Joint Plan of Reorganization") involve a high degree of risk and uncertainty.  You should carefully consider the risks and uncertainties described below, as well as the other information appearing elsewhere in this Quarterly Report on Form 10-Q before making a decision whether to invest in Capitol.  References in these Risk Factors to the "Plan of Reorganization" are references to Capitol Bancorp Ltd. and Financial Commerce Corporation's Plan of Reorganization under Chapter 11 of the Bankruptcy Code as such plan is described in the Confidential Out-of-Court Exchange Offering Memorandum and Solicitation of Consents and Disclosure Statement and Solicitation of Votes Related to an In-Court Standby Prepackaged Joint Plan of Reorganization of Capitol and Financial Commerce Corporation relating to offers to exchange certain outstanding senior notes and trust-preferred securities and solicitation to the holders of Capitol's senior notes, trust-preferred securities, Series A preferred stock and common stock to accept a prepackaged joint plan of reorganization, June 22, 2012 (the "Offering Memorandum and Disclosure Statement") as supplement pursuant to the Supplement No. 1 to the Offering Memorandum and Disclosure Statement dated July 6, 2012 (the "Supplement").  The terms used in these Risk Factors without definition shall have the meanings ascribed to them in the Offering Memorandum and Disclosure Statement and the Supplement.  |

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| Item 1A. | Risk Factors. - Continued The recently announced Basel III capital rules may have a material impact on Capitol's operations. In December 2010, the Basel Committee on Banking Supervision, an international forum for cooperation on banking supervisory matters, announced the "Basel III" capital rules, which set new capital requirements for banking organizations.  On June 7, 2012, the Federal Reserve Board requested comment on three proposed rules that, taken together, would establish an integrated regulatory capital framework implementing the Basel III regulatory capital reforms in the United States.  As proposed, the U.S. implementation of Basel III would lead to significantly higher capital requirements and more restrictive leverage and liquidity ratios than those currently in place.  Once adopted, these new capital requirements would be phased in over time.  Additionally, the U.S. implementation of Basel III contemplates that, for banking organizations with less than $15 billion in assets, the ability to treat trust preferred securities as tier 1 capital would be phased out over a ten-year period.  The ultimate impact of the U.S. implementation of the new capital and liquidity standards to Capitol and its affiliate banks is currently being reviewed.  At this point, Capitol cannot determine the ultimate effect that any final regulations, if enacted, would have upon its earnings or financial position.  In addition, important questions remain as to how the numerous capital and liquidity mandates of the Dodd-Frank Wall Street Reform and Consumer Protection Act will be integrated with the requirements of Basel III. Risks Related to Implementing the Joint Plan of Reorganization The commencement of the Chapter 11 Cases with the U.S. Bankruptcy Court for the Eastern District of Michigan (the "Court") for the purpose of implementing the Joint Plan of Reorganization may result in a number of adverse consequences. If the Debtors file the Joint Plan of Reorganization, the Debtors may seek to amend, waive, modify or withdraw the Joint Plan of Reorganization at any time prior to the Confirmation Date. Upon filing of the Joint Plan of Reorganization, Capitol and Financial Commerce Corporation (collectively, the "Debtors") reserve the right, prior to its confirmation or substantial consummation thereof, subject to the provisions of section 1127 of the Bankruptcy Code and rule 3019 of Federal Rules of Bankruptcy Procedure (such rules, the "Bankruptcy Rules"), and, after confirmation, subject to the terms of the Joint Plan of Reorganization, to amend the terms of the Joint Plan of Reorganization or waive any conditions thereto, if and to the extent such amendments or waivers are necessary or desirable to consummate the Joint Plan of Reorganization.  The potential impact of any such amendment or waiver on the holders of claims and equity security interests cannot presently be foreseen, but may include a change in the economic impact of the Joint Plan of Reorganization on some or all of the classes or a change in the relative rights of such classes.  All holders of claims and equity security interests will receive notice of such amendments or waivers as required by applicable law and the Court.  If, after receiving sufficient acceptances, but prior to confirmation of the Joint Plan of Reorganization, the Debtors seek to modify the Joint Plan of Reorganization, the previously solicited acceptances will be valid only if (i) all classes of adversely affected creditors and equity security holders accept the modification in writing, or (ii) the Court determines, after notice to designated parties, that such modification was de minimis or purely technical or otherwise did not adversely change the treatment of holders of accepting claims and equity security interests. In certain instances, a Chapter 11 bankruptcy case may be converted to a case under chapter 7 of the Bankruptcy Code. If no plan of reorganization is confirmed, or if the Court otherwise finds that it would be in the best interest of creditors, the Chapter 11 Cases may be converted to a liquidation case under Chapter 7 of the Bankruptcy Code (a "Liquidation Case"), pursuant to which a trustee would be appointed to liquidate the Debtors' assets for distribution in accordance with the priorities established by the Bankruptcy Code.  The Debtors believe that a Liquidation Case could result in no distributions being made to Capitol's shareholders or possibly smaller distributions being made to Capitol's creditors than those provided for in the Joint Plan of Reorganization because of (i) the likelihood that the assets would have to be sold or otherwise disposed of in a disorderly fashion over a short period of time rather than reorganizing the |
|----------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| Item 1A. | Risk Factors. - Continued Debtors' businesses as a going concern; (ii) additional administrative expenses involved in the appointment of a trustee; and (iii) additional expenses and claims, some of which would be entitled to priority, which would be generated during the liquidation and from the rejection of leases and other executory contracts in connection with a cessation of the operations. The Court may not confirm the Joint Plan of Reorganization. Although the Debtors believe that the Joint Plan of Reorganization will satisfy all requirements necessary for confirmation under the Bankruptcy Code, there can be no assurance that the Court will reach the same conclusion.  Moreover, there can be no assurance that modifications of the Joint Plan of Reorganization will not be required for confirmation or that such modifications would not necessitate the re-solicitation of votes.  In the event that the Court does not confirm the Joint Plan of Reorganization, Capitol may be required to seek an alternative restructuring of its obligations to its creditors and equity security holders.  There can be no assurance that the terms of any such alternative restructuring would be similar to or as favorable to Capitol's creditors and shareholders as those proposed in the Joint Plan of Reorganization. For example, the Court might determine that the Joint Plan of Reorganization is not "feasible" pursuant to section 1129(a)(11) of the Bankruptcy Code.  For the Joint Plan of Reorganization to be feasible, the Debtors must establish that the confirmation of the Joint Plan of Reorganization is not likely to be followed by the liquidation, or the need for further financial reorganization, of the Debtors or any successor of the Debtors under the Joint Plan of Reorganization, unless such liquidation or reorganization is proposed in the Joint Plan of Reorganization.  The feasibility requirement requires the Debtors to put forth concrete evidence indicating that they have a reasonable likelihood of meeting their obligations under the Joint Plan of Reorganization and remaining commercially viable entities.  The Debtors believe that their Projections demonstrate that the Joint Plan of Reorganization is feasible in that they will be able to satisfy all of their obligations under the Joint Plan of Reorganization and confirmation of the Joint Plan of Reorganization is not likely to be followed by a liquidation or the need for a further financial reorganization. Section 1122 of the Bankruptcy Code provides that a plan of reorganization may place a claim or an equity security interest in a particular class only if such claim or equity security interest is substantially similar to the other claims or equity security interests of such class.  The Debtors believe that the classification of claims and equity security interests under the Joint Plan of Reorganization complies with the requirements set forth in the Bankruptcy Code.  However, once the Chapter 11 Cases have been commenced, a claim or equity security holder could challenge the classification.  In such an event, the cost of the Joint Plan of Reorganization and the time needed to confirm the Joint Plan of Reorganization could increase and the Court may not agree with the Debtors' classification of claims and equity security interests.  If the Court concludes that the classification of claims and equity interests under the Joint Plan of Reorganization does not comply with the requirements of the Bankruptcy Code, the Debtors may need to modify the Joint Plan of Reorganization.  Such modification could require a re-solicitation of votes on the Joint Plan of Reorganization.  If the Court determined that the Debtors' classification of claims and equity security interests was not appropriate or if the Court determined that the different treatment provided to claims or equity security holders was unfair or inappropriate, the Joint Plan of Reorganization might not be confirmed.  If this occurs, the amended plan of reorganization that would ultimately be confirmed may be less attractive to certain classes of the Debtors' claims and equity security holders than the Joint Plan of Reorganization. In most instances, a plan of reorganization is filed and votes to accept or reject the plan are solicited after the filing of a petition commencing a chapter 11 case. The Debtors, however, solicited votes prior to the commencement of the Chapter 11 Cases in accordance with section 1126(b) of the Bankruptcy Code and Bankruptcy Rule 3018(b), which require that the Debtors' solicitation be in compliance with any applicable nonbankruptcy law, rule, or regulation governing the adequacy of disclosure in connection with such solicitation.  The Court could conclude that the Offering Memorandum and Disclosure Statement and/or the Supplement did not meet these solicitation requirements. |
|----------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| Item 1A. | Risk Factors. - Continued With regard to solicitation of votes prior to the commencement of the Chapter 11 Cases, if the Court concludes that the requirements of section 1126(b) of the Bankruptcy Code and/or Bankruptcy Rule 3018(b) have not been met, then the Court could deem such votes invalid, and the Joint Plan of Reorganization would not be confirmed without a re-solicitation of votes to accept or reject the Joint Plan of Reorganization.  While the Debtors believe that the requirements of section 1126(b) of the Bankruptcy Code and Bankruptcy Rule 3018 will be met, the Court may not reach the same conclusion. If the Court were to find any material deficiencies, the Debtors could be required to restart the process of filing another plan of reorganization and disclosure statement, seeking Court approval of a disclosure statement, soliciting votes from classes of debt and equity security holders, and seeking Court confirmation of the plan of reorganization.  If this occurs, confirmation of the Joint Plan of Reorganization would be delayed and possibly jeopardized.  Additionally, should the Joint Plan of Reorganization fail to be approved, confirmed, or consummated, the Debtors' creditors and others with an equity security interest may be in a position to propose alternative plans of reorganization.  Any such failure to confirm the Joint Plan of Reorganization would likely entail significantly greater risk of delay, expense and uncertainty, which would likely have a material adverse effect upon Debtors' businesses and financial condition. The Debtors may fail to meet all conditions precedent to effectiveness of the Joint Plan of Reorganization. Although the Debtors believe that the date on which the Joint Plan of Reorganization becomes effective (the "Effective Date") may occur as soon as the date on which the Court's order confirming the Joint Plan of Reorganization (the "Confirmation Order") is entered by the Court (the "Confirmation Date"), there can be no assurance as to such timing.  Moreover, if the conditions precedent to the Effective Date, including the entry of a Confirmation Order, execution and delivery of certain documents and the receipt of all necessary authorizations and regulatory approvals, have not occurred, the Joint Plan of Reorganization may not become effective and ultimately may be vacated by the Court. The announcement of the filing of the Chapter 11 Cases could adversely affect the value of Capitol's businesses. It is possible that announcing the filing of the Chapter 11 Cases could adversely affect Capitol's operations and relationships with employees and portfolio companies.  Due to uncertainties, many risks exist, including the following: ·     employees may be distracted from performance of their duties or more easily attracted to other employment opportunities, including with Capitol's competitors; and ·     the ability to pursue additional financing may be negatively impacted. The occurrence of one or more of these events could have a material and adverse effect on the financial condition, operations and prospects of Capitol and the value of its stock, senior notes and/or trust-preferred securities. The Debtors cannot predict the amount of time needed following filing of the Chapter 11 Cases to implement the Joint Plan of Reorganization, and lengthy Chapter 11 Cases could disrupt their businesses, as well as impair the prospect for reorganization on the terms contained in the Joint Plan of Reorganization and possibly provide an opportunity for other plans to be proposed. The Debtors cannot be certain that the Chapter 11 Cases solely for the purpose of implementing the Joint Plan of Reorganization would be of relatively short duration (e.g., 30 to 45 days) and would not unduly disrupt their businesses. It is impossible to predict with certainty the amount of time necessary for the Joint Plan of Reorganization to be confirmed by the Court, and the Debtors cannot be certain that the Joint Plan of Reorganization would be confirmed.  Moreover, time limitations exist for which the Debtors have an exclusive right to file a plan before other proponents can propose and file their own plan. |
|----------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| Item 1A. | Risk Factors. - Continued Lengthy Chapter 11 Cases would also involve additional expenses and divert the attention of management from operation of the Debtors' businesses, as well as create concerns for employees.  The disruption that the Chapter 11 Cases could inflict upon the Debtors' businesses would increase with the length of time it takes to complete the proceedings and the severity of that disruption would depend upon the attractiveness and feasibility of the Joint Plan of Reorganization from the perspective of the constituent parties, including employees. If the Debtors are unable to obtain confirmation of the Joint Plan of Reorganization on a timely basis because of a challenge to the Joint Plan of Reorganization or a failure to satisfy the conditions to the effectiveness of the Joint Plan of Reorganization, the Debtors may be forced to operate in the Chapter 11 Cases for an extended period while trying to develop a different reorganization plan that can be confirmed.  Protracted Chapter 11 Cases would increase both the probability and the magnitude of the adverse effects described above. If the Debtors are unable to raise sufficient capital through the anticipated Equity Infusion, the Debtors may still seek Bankruptcy Protection. The anticipated equity infusion from outside investors is a critical component of the likelihood of success of the Joint Plan of Reorganization.  However, Capitol has not secured written commitments for the equity infusion as of the date of this quarterly report.  If Capitol is unable to raise capital from new investors, or raise less than the amount currently anticipated, it may be forced to operate in the Chapter 11 Cases for an extended period while trying to develop a different reorganization plan that can be confirmed.  |
|----------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Item 2.  | Unregistered Sales of Equity Securities and Use of Proceeds.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|     | (a)         None.(b)         Not applicable.(c)         None.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| Item 3.  | Defaults Upon Senior Securities. None.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| Item 4.  | Mine Safety Disclosures. Not applicable.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| Item 5.  | Other Information. None.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |

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| Item 6. | Exhibits: |
|---------|-----------|
| (a)         | (b)                                                                                                                                                                                                                                                                                                                                                                                                                    |
|-------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Exhibit No. | Description of Exhibit                                                                                                                                                                                                                                                                                                                                                                                                 |
|        |                                                                                                                                                                                                                                                                                                                                                                                                                   |
| 31.1        | Certification of Chief Executive Officer, Joseph D. Reidpursuant to Section 302 of the Sarbanes-Oxley Act of 2002.                                                                                                                                                                                                                                                                                                |
| 31.2        | Certification of Principal Financial Officer, Nicholas G. Hahn,pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.                                                                                                                                                                                                                                                                                         |
| 32.1        | Certification of Chief Executive Officer, Joseph D. Reid,pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.                                                                                                                                                                                                                                                                                               |
| 32.2        | Certification of Principal Financial Officer, Nicholas G. Hahn,pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.                                                                                                                                                                                                                                                                                         |
| 101         | Interactive data files formatted in XBRL (eXtensible Business Reporting Language) pursuant to Rule 405 of Regulation S-T, including: (i) Condensed Consolidated Balance Sheets, (ii) Condensed Consolidated Statements of Operations, (iii) Condensed Consolidated Statements of Changes in Equity, (iv) Condensed Consolidated Statements of Cash Flows and (v) Notes to Condensed Consolidated Financial Statements. |

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|                             | CAPITOL BANCORP LTD.(Registrant)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|----------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Date:  August 9, 2012  | /s/ Joseph D. Reid                                                                         Joseph D. ReidChairman and CEO(principal executive officer)                            |
| Date:  August 9, 2012  | /s/ Nicholas G. Hahn                                                                           Nicholas G. HahnInterim Chief Financial Officer(principal financial officer) |

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| Exhibit No. | Description of Exhibit                                                                                                                                                                                                                                                                                                                                                                                       |
|-------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 31.1        | Certification of Chief Executive Officer, Joseph D. Reid, pursuant to Section 302 of theSarbanes-Oxley Act of 2002.                                                                                                                                                                                                                                                                                          |
| 31.2        | Certification of Principal Financial Officer, Nicholas G. Hahn, pursuant to Section 302of the Sarbanes-Oxley Act of 2002.                                                                                                                                                                                                                                                                                    |
| 32.1        | Certification of Chief Executive Officer, Joseph D. Reid, pursuant to Section 906 of theSarbanes-Oxley Act of 2002.                                                                                                                                                                                                                                                                                          |
| 32.2        | Certification of Principal Financial Officer, Nicholas G. Hahn, pursuant to Section 906of the Sarbanes-Oxley Act of 2002.                                                                                                                                                                                                                                                                                    |
| 101         | Interactive data files formatted in XBRL (eXtensible Business Reporting Language)pursuant to Rule 405 of Regulation S-T, including: (i) Condensed Consolidated BalanceSheets, (ii) Condensed Consolidated Statements of Operations, (iii) CondensedConsolidated Statements of Changes in Equity, (iv) Condensed ConsolidatedStatements of Cash Flows and (v) Notes to Condensed Consolidated FinancialStatements. |