----

----

| T      | QUARTERLY      REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE                  |
|--------|-------------------------------------------------------------------------------|
|   | SECURITIES      EXCHANGE ACT OF 1934                                          |
|   | For      the quarterly period ended March 31, 2008                            |
|   | OR                                                                            |
| £ | 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                   |   |                                   |
| 200      Washington Square North              |   |                                   |
| Lansing,      Michigan                        |   | 48933                                  |
| (Address      of principal executive offices) |   | (Zip      Code)                        |

| Yes   T | No   £ |
|------------------------|----------------------------|

| Yes   £ | No   T |
|-----------------------------|-----------------------|

| Class                           |   | Outstanding      at April 15, 2008 |
|---------------------------------|--------|------------------------------------|
| Common      Stock, No par value |   | 17,316,416      shares             |

| Large      accelerated filer   £                                                                               |   |                                                   | Accelerated      filer   T |
|------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------|-------------------------------------------|
| Non-accelerated      filer     £   (Do not check      if a smaller reporting company) |   | Smaller      reporting company   £ |

----

|  Item      1.       |  Financial      Statements (unaudited):                                                                                           | Page     |
|--------------------------|----------------------------------------------------------------------------------------------------------------------------------------|----------|
|                     | Condensed      consolidated balance sheets – March 31, 2008 and December 31,2007.                                                | 3        |
|                     | Condensed      consolidated statements of income – Three months ended March      31,2008      and 2007.                          | 4        |
|                     | Condensed      consolidated statements of changes in stockholders' equity –      Threemonths      ended March 31, 2008 and 2007. | 5        |
|                     | Condensed      consolidated statements of cash flows – Three months endedMarch      31, 2008 and 2007.                           | 6        |
|                     | Notes      to condensed consolidated financial statements.                                                                             | 7        |
| Item      2.             | Management's      Discussion and Analysis of Financial Condition and Results ofOperations.                                             | 12       |
| Item      3.             | Quantitative      and Qualitative Disclosures About Market Risk.                                                                       | 26       |
| Item      4.             | Controls      and Procedures.                                                                                                          | 26       |
|  PART      II.      |  OTHER      INFORMATION                                                                                                           |     |
|  Item      1.       |  Legal      Proceedings.                                                                                                          |  27 |
| Item      1A.            | Risk      Factors.                                                                                                                     | 27       |
| Item      2.             | Unregistered      Sales of Equity Securities and Use of Proceeds.                                                                      | 27       |
| Item      3.             | Defaults      Upon Senior Securities.                                                                                                  | 27       |
| Item      4.             | Submission      of Matters to a Vote of Security Holders.                                                                              | 27       |
| Item      5.             | Other      Information.                                                                                                                | 27       |
| Item      6.             | Exhibits.                                                                                                                              | 27       |
|  SIGNATURES         |                                                                                                                                   |  28 |
|  EXHIBIT      INDEX |                                                                                                                                   |  29 |

----

| PART I, ITEM    1                                                                                                       |
|-------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                    |   |   |   |   |   |   |   |
| CAPITOL BANCORP      LIMITED                                                                                            |
| Condensed Consolidated Balance      Sheets                                                                              |
| As of March 31, 2008 and December      31, 2007                                                                         |
| (in thousands, except share      data)                                                                                  |
|                                                                                                                    |   |   |   |   |   |   |   |
|                                                                                                                    |   |   | (Unaudited) |   |   |   |   |
|                                                                                                                    |   |   | March 31 |   |   | December 31 |   |
|                                                                                                                    |   |   | 2008 |   |   | 2007 |   |
| ASSETS                                                                                                                  |   |   |   |   |   |   |   |
| Cash and due from      banks                                                                                            |   |   | $ | 178,401 |   |   | $ | 196,083 |   |
| Money market and interest-bearing      deposits                                                                         |   |   | 27,263 |   |   |   | 26,924 |   |
| Federal funds      sold                                                                                                 |   |   |   | 149,702 |   |   |   | 129,365 |   |
| Cash and cash      equivalents                                                                                          |   |   | 355,366 |   |   |   | 352,372 |   |
| Loans held for      sale                                                                                                |   |   |   | 17,221 |   |   |   | 16,419 |   |
| Investment      securities:                                                                                             |   |   |   |   |   |   |   |   |   |
|    Available for      sale, carried at market value                                                      |   |   | 8,996 |   |   |   | 14,119 |   |
|    Held for      long-term investment, carried at                                                        |   |   |   |   |   |   |   |   |
|      amortized      cost which approximates market value                                       |   |   | 28,902 |   |   |   | 25,478 |   |
| Total investment      securities                                                                                        |   |   | 37,898 |   |   |   | 39,597 |   |
| Portfolio      loans:                                                                                                   |   |   |   |   |   |   |   |   |   |
|    Loans secured by real      estate:                                                                         |   |   |   |   |   |   |   |   |   |
|           Commercial                                                                                |   |   |   | 1,968,358 |   |   |   | 1,917,113 |   |
|           Residential (including multi-family)                                                      |   |   |   | 748,084 |   |   |   | 698,960 |   |
|           Construction, land development and other land                                             |   |   | 867,311 |   |   |   | 852,595 |   |
| Total loans secured by real      estate                                                                                 |   |   | 3,583,753 |   |   |   | 3,468,668 |   |
|    Commercial and other      business-purpose loans                                                           |   |   | 802,675 |   |   |   | 768,473 |   |
|         Consumer                                                                                              |   |   |   | 52,556 |   |   |   | 48,041 |   |
|         Other                                                                                                 |   |   |   | 28,644 |   |   |   | 29,519 |   |
| Total portfolio      loans                                                                                              |   |   | 4,467,628 |   |   |   | 4,314,701 |   |
|    Less allowance for      loan losses                                                                        |   |   |   | (61,666 | ) |   |   | (58,124 | ) |
| Net portfolio      loans                                                                                                |   |   | 4,405,962 |   |   |   | 4,256,577 |   |
| Premises and      equipment                                                                                             |   |   |   | 60,011 |   |   |   | 60,031 |   |
| Accrued interest      income                                                                                            |   |   |   | 19,046 |   |   |   | 19,417 |   |
| Goodwill and other      intangibles                                                                                     |   |   |   | 72,609 |   |   |   | 72,722 |   |
| Otherassets                                                                                                             |   |   |   | 98,570 |   |   |   | 84,628 |   |
|                                                                                                                    |   |   |   |   |   |   |   |   |   |
|             TOTAL      ASSETS                               |   |   | $ | 5,066,683 |   |   | $ | 4,901,763 |   |
|                                                                                                                    |   |   |   |   |   |   |   |   |   |
| LIABILITIES      AND STOCKHOLDERS' EQUITY                                                                               |   |   |   |   |   |   |   |   |
| LIABILITIES:                                                                                                            |   |   |   |   |   |   |   |   |   |
| Deposits:                                                                                                               |   |   |   |   |   |   |   |   |   |
|    Noninterest-bearing                                                                                   |   |   | $ | 655,647 |   |   | $ | 671,688 |   |
|    Interest-bearing                                                                                      |   |   |   | 3,290,107 |   |   |   | 3,173,057 |   |
| Total    deposits                                                                                                       |   |   | 3,945,754 |   |   |   | 3,844,745 |   |
| Debt      obligations:                                                                                                  |   |   |   |   |   |   |   |   |   |
|    Notes payable      and short-term borrowings                                                          |   |   | 379,044 |   |   |   | 320,384 |   |
|    Subordinated      debentures                                                                          |   |   |   | 156,153 |   |   |   | 156,130 |   |
| Total debt      obligations                                                                                             |   |   | 535,197 |   |   |   | 476,514 |   |
| Accrued interest on deposits and      other liabilities                                                                 |   |   | 33,774 |   |   |   | 35,161 |   |
| Total      liabilities                                                                                                  |   |   | 4,514,725 |   |   |   | 4,356,420 |   |
|                                                                                                                    |   |   |   |   |   |   |   |   |   |
| MINORITY INTERESTS IN CONSOLIDATED      SUBSIDIARIES                                                                    |   |   | 164,525 |   |   |   | 156,198 |   |
|                                                                                                                    |   |   |   |   |   |   |   |   |   |
| STOCKHOLDERS'      EQUITY:                                                                                              |   |   |   |   |   |   |   |   |   |
| Common stock, no par      value,  50,000,000 shares authorized;                                               |   |   |   |   |   |   |   |   |
|    issued and      outstanding: 2008 - 17,317,065      shares                                       |   |   |   |   |   |   |   |   |
|          2007 - 17,316,568      shares                                                                        |   |   | 272,574 |   |   |   | 272,208 |   |
| Retained      earnings                                                                                                  |   |   |   | 115,381 |   |   |   | 117,520 |   |
| Undistributed common stock held by      employee-benefit trust                                                          |   |   | (580 | ) |   |   | (586 | ) |
| Market value adjustment (net of      tax effect) for                                                                    |   |   |   |   |   |   |   |   |
|    investment      securities available for sale (accumulated                                            |   |   |   |   |   |   |   |   |
|    other      comprehensive income)                                                                      |   |   |   | 58 |   |   |   | 3 |   |
| Total stockholders'      equity                                                                                         |   |   | 387,433 |   |   |   | 389,145 |   |
|                                                                                                                    |   |   |   |   |   |   |   |   |   |
|             TOTAL      LIABILITIES AND STOCKHOLDERS' EQUITY |   | $ | 5,066,683 |   |   | $ | 4,901,763 |   |
|                                                                                                                    |   |   |   |   |   |   |   |   |   |
| See notes to condensed      consolidated financial statements.                                                          |   |   |   |   |   |   |   |   |
|                                                                                                                    |   |   |   |   |   |   |   |   |   |

----

| CAPITOL BANCORP      LIMITED                                                                                                                                                                                                                 |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Condensed Consolidated Statements      of Income (Unaudited)                                                                                                                                                                                 |
| For the Three Months Ended March      31, 2008 and 2007                                                                                                                                                                                      |
| (in thousands, except per share      data)                                                                                                                                                                                                   |
|                                                                                                                                                                                                                                         |   |   |
|                                                                                                                                                                                                                                         |   | 2008 |   |   | 2007 |
| Interest      income:                                                                                                                                                                                                                        |   |   |   |   |   |
|   Portfolio loans      (including fees)                                                                                                                                                                                            |   | $ | 77,331 |   |   | $ | 73,524 |
|   Loans held for      sale                                                                                                                                                                                                         |   |   | 300 |   |   |   | 946 |
|   Taxable investment      securities                                                                                                                                                                                               |   |   | 133 |   |   |   | 208 |
|   Federal funds      sold                                                                                                                                                                                                          |   |   | 1,213 |   |   |   | 2,544 |
|   Other                                                                                                                                                                                                                            |   |   | 526 |   |   |   | 617 |
|                                 Total      interest income                   |   |   | 79,503 |   |   |   | 77,839 |
| Interest      expense:                                                                                                                                                                                                                       |   |   |   |   |   |   |   |
|   Deposits                                                                                                                                                                                                                         |   |   | 30,688 |   |   |   | 28,329 |
|   Debt obligations and      other                                                                                                                                                                                                  |   |   | 6,880 |   |   |   | 4,829 |
|                                 Total      interest expense                  |   |   | 37,568 |   |   |   | 33,158 |
|                                 Net      interest income                     |   |   | 41,935 |   |   |   | 44,681 |
| Provision for loan      losses                                                                                                                                                                                                               |   |   | 8,958 |   |   |   | 3,932 |
|                                 Net      interest income after provision for |   |   |   |   |   |   |   |
|                                   loan      losses                 |   |   | 32,977 |   |   |   | 40,749 |
| Noninterest      income:                                                                                                                                                                                                                     |   |   |   |   |   |   |   |
|   Service charges on      deposit accounts                                                                                                                                                                                         |   |   | 1,333 |   |   |   | 1,105 |
|   Trust and      wealth-management revenue                                                                                                                                                                                         |   |   | 1,645 |   |   |   | 1,037 |
|   Fees from origination      of non-portfolio residential                                                                                                                                                                          |   |   |   |   |   |   |   |
|     mortgage      loans                                                                                                                                                                                                  |   |   | 921 |   |   |   | 1,307 |
|   Gain on sales of      government-guaranteed loans                                                                                                                                                                                |   |   | 580 |   |   |   | 800 |
|   Gain on sales of other      non-portfolio commercial loans                                                                                                                                                                       |   |   | 317 |   |   |   | 320 |
|   Realized gains on sale      of investment securities                                                                                                                                                                             |   |   |   |   |   |   |   |
|     available      for sale                                                                                                                                                                                              |   |   | 43 |   |   |   |   |
|   Other                                                                                                                                                                                                                            |   |   | 1,726 |   |   |   | 1,016 |
|                                Total      noninterest income                      |   |   | 6,565 |   |   |   | 5,585 |
| Noninterest      expense:                                                                                                                                                                                                                    |   |   |   |   |   |   |   |
|   Salaries and employee      benefits                                                                                                                                                                                              |   |   | 25,548 |   |   |   | 26,072 |
|   Occupancy                                                                                                                                                                                                                        |   |   | 4,404 |   |   |   | 3,497 |
|   Equipment rent,      depreciation and maintenance                                                                                                                                                                                |   |   | 2,866 |   |   |   | 2,642 |
|   Other                                                                                                                                                                                                                            |   |   | 11,987 |   |   |   | 9,612 |
|                               Total      noninterest expense                           |   |   | 44,805 |   |   |   | 41,823 |
|                               Income      (loss) before income taxes                   |   |   |   |   |   |   |   |
|                                   and      minority interest       |   |   | (5,263 | ) |   |   | 4,511 |
| Income taxes      (benefit)                                                                                                                                                                                                                  |   |   | (1,995 | ) |   |   | 1,764 |
|                               Income      (loss) before minority interest              |   |   | (3,268 | ) |   |   | 2,747 |
| Minority interest in net losses of      consolidated subsidiaries                                                                                                                                                                            |   |   | 5,459 |   |   |   | 3,524 |
|                                                                                                                                                                                                                                         |   |   |   |   |   |   |   |
|       NET      INCOME                                                                                                                                                                                          |   | $ | 2,191 |   |   | $ | 6,271 |
|                                                                                                                                                                                                                                         |   |   |   |   |   |   |   |
|       NET      INCOME PER SHARE -- Note E:                                                                                                                                                                     |   |   |   |   |   |   |   |
|                                Basic                                              |   | $ | 0.13 |   |   | $ | 0.38 |
|                                                                                                                                                                                                                                         |   |   |   |   |   |   |   |
|                                Diluted                                            |   | $ | 0.13 |   |   | $ | 0.36 |
|                                                                                                                                                                                                                                         |   |   |   |   |   |   |   |
| See notes to condensed      consolidated financial statements.                                                                                                                                                                               |   |   |   |   |   |   |   |

----

| CAPITOL BANCORP      LIMITED                                                           |
|----------------------------------------------------------------------------------------|
| Condensed Consolidated Statements      of Changes in Stockholders' Equity (Unaudited)  |
| For the Three Months Ended March      31, 2008 and 2007                                |
| (in thousands, except share      data)                                                 |
|                                                                                   |   |
|                                                                                   |   |   |   |   |   |   |   |   | Undistributed |   |   | Accumulated |   |   |   |   |
|                                                                                   |   |   |   |   |   |   |   |   | CommonStock |   |   | Other |   |   |   |   |
|                                                                                   |   |   | Common |   |   | Retained |   |   | Held by      Employee- |   |   | Comprehensive |   |   |   |   |
|                                                                                   |   |   | Stock |   |   | Earnings |   |   | Benefit    Trust |   |   | Income    (Loss) |   |   | Total |   |
|                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Three Months Ended March 31,      2007                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balances at January 1,      2007                                                       |   |   | $ | 249,244 |   |   | $ | 112,779 |   |   |   |   |   | $ | (144 | ) |   | $ | 361,879 |   |
|                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Issuance of 371,314 shares of      common stock                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    to acquire      minority interest in subsidiary                      |   |   |   | 15,927 |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 15,927 |   |
|                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Issuance of 37,949 shares of      common stock                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    upon exercise of      stock options, net of                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    common stock      surrendered to facilitate exercise                 |   |   |   | 586 |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 586 |   |
|                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Surrender of 15,645 shares of      common stock to                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    facilitate      vesting of restricted stock                          |   |   |   | (721 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   | (721 | ) |
|                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Recognition of compensation      expense relating to                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    restricted      common stock                                         |   |   |   | 415 |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 415 |   |
|                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Tax benefit from share-based      payments                                             |   |   |   | 721 |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 721 |   |
|                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Issuance of 24,506 shares to      employee stock                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    ownership      plan                                                  |   |   |   | 1,132 |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 1,132 |   |
|                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash dividends paid ($0.25 per      share)                                             |   |   |   |   |   |   |   | (4,261 | ) |   |   |   |   |   |   |   |   |   | (4,261 | ) |
|                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Components of comprehensive      income:                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Net      income                                                      |   |   |   |   |   |   |   | 6,271 |   |   |   |   |   |   |   |   |   |   | 6,271 |   |
|    Market value      adjustment for investment securities                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|       available      for sale (net of income tax effect) |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 43 |   |   |   | 43 |   |
|          Comprehensive      income        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 6,314 |   |
|                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     BALANCES      AT MARCH 31, 2007                                |   |   | $ | 267,304 |   |   | $ | 114,789 |   |   |   |   |   | $ | (101 | ) |   | $ | 381,992 |   |
|                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Three Months Ended March 31,      2008                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balances at January 1,      2008                                                       |   |   | $ | 272,208 |   |   | $ | 117,520 |   |   | $ | (586 | ) |   | $ | 3 |   |   | $ | 389,145 |   |
|                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Issuance of 3,174 shares of common      stock                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    upon exercise of      stock options                                  |   |   |   | 54 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 54 |   |
|                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Surrender of 13,489 shares of      common stock to                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    facilitate      vesting of restricted stock                          |   |   |   | (271 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (271 | ) |
|                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Issuance of 12,812 unvested shares      of restricted                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    common stock, net of      related unearned employee                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    compensation and      2,000 forfeited shares                         |   |   |   | -- |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | -- |   |
|                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Recognition of compensation      expense relating to                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    restricted      common stock and stock options                       |   |   |   | 589 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 589 |   |
|                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Tax effect of share-based      payments                                                |   |   |   | (4 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (4 | ) |
|                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Transfer of 250 shares to employee      stock                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    ownership      plan                                                  |   |   |   | (2 | ) |   |   |   |   |   |   | 6 |   |   |   |   |   |   |   | 4 |   |
|                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash dividends paid ($0.25 per      share)                                             |   |   |   |   |   |   |   | (4,330 | ) |   |   |   |   |   |   |   |   |   |   | (4,330 | ) |
|                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Components of comprehensive      income:                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Net      income                                                      |   |   |   |   |   |   |   | 2,191 |   |   |   |   |   |   |   |   |   |   |   | 2,191 |   |
|    Market value      adjustment for investment securities                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|       available      for sale (net of income tax effect) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 55 |   |   |   | 55 |   |
|          Comprehensive      income        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 2,246 |   |
|                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     BALANCES      AT MARCH 31, 2008                                |   |   | $ | 272,574 |   |   | $ | 115,381 |   |   | $ | (580 | ) |   | $ | 58 |   |   | $ | 387,433 |   |
|                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| See notes to condensed      consolidated financial statements.                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

| CAPITOL BANCORP      LTD.                                                                                                                       |
|-------------------------------------------------------------------------------------------------------------------------------------------------|
| Condensed Consolidated Statements      of Cash Flows (Unaudited)                                                                                |
| For the Three Months Ended March      31, 2008 and 2007                                                                                         |
| (in    thousands)                                                                                                                               |
|                                                                                                                                            |   |   |   |   |   |   |
|                                                                                                                                            |   | 2008 |   |   | 2007 |   |
|                                                                                                                                            |   |   |   |   |   |   |
| OPERATING      ACTIVITIES                                                                                                                       |   |   |   |   |   |   |
|   Net      income                                                                                                                     |   | $ | 2,191 |   |   | $ | 6,271 |   |
|   Adjustments to      reconcile net income to net                                                                                     |   |   |   |   |   |   |   |   |
|     cash      provided (used) by operating activities:                                                                      |   |   |   |   |   |   |   |   |
|       Provision      for loan losses                                                                              |   |   | 8,958 |   |   |   | 3,932 |   |
|       Depreciation      of premises and equipment                                                                 |   |   | 2,450 |   |   |   | 2,164 |   |
|       Amortization      of intangibles                                                                            |   |   | 113 |   |   |   | 146 |   |
|       Net      amortization of investment security premiums                                                       |   |   | 10 |   |   |   |   |   |
|       Loss      (gain) on sale of premises and equipment                                                          |   |   | 4 |   |   |   | (17 | ) |
|       Minority      interest in net losses of consolidated subsidiaries                                           |   |   | (5,459 | ) |   |   | (3,524 | ) |
|       Share-based      compensation expense                                                                       |   |   | 589 |   |   |   | 415 |   |
|   Originations and      purchases of loans held for sale                                                                              |   |   | (51,216 | ) |   |   | (132,370 | ) |
|   Proceeds from sales of      loans held for sale                                                                                     |   |   | 50,414 |   |   |   | 139,101 |   |
|   Decrease (increase) in      accrued interest income and other assets                                                                |   |   | (13,391 | ) |   |   | 2,466 |   |
|   Increase (decrease) in      accrued interest on deposits and other                                                                  |   |   |   |   |   |   |   |   |
|     liabilities                                                                                                             |   |   | (1,387 | ) |   |   | 1,090 |   |
|                                                                                                                                            |   |   |   |   |   |   |   |   |
|                 NET      CASH PROVIDED (USED) BY OPERATING      |   |   |   |   |   |   |   |   |
|                    ACTIVITIES                    |   |   | (6,724 | ) |   |   | 19,674 |   |
|                                                                                                                                            |   |   |   |   |   |   |   |   |
|                                                                                                                                            |   |   |   |   |   |   |   |   |
| INVESTING      ACTIVITIES                                                                                                                       |   |   |   |   |   |   |   |   |
|   Proceeds from sales of      investment securities available for sale                                                                |   |   | 840 |   |   |   |   |   |
|   Proceeds from calls,      prepayments and maturities of investment                                                                  |   |   |   |   |   |   |   |   |
|     securities                                                                                                              |   |   | 7,862 |   |   |   | 3,187 |   |
|   Purchases of      investment securities                                                                                             |   |   | (7,111 | ) |   |   | (1,096 | ) |
|   Net increase in      portfolio loans                                                                                                |   |   | (158,343 | ) |   |   | (134,597 | ) |
|   Proceeds from sales of      premises and equipment                                                                                  |   |   | 6 |   |   |   | 172 |   |
|   Purchases of premises      and equipment                                                                                            |   |   | (2,440 | ) |   |   | (3,336 | ) |
|                                                                                                                                            |   |   |   |   |   |   |   |   |
|                 NET      CASH USED BY INVESTING ACTIVITIES      |   |   | (159,186 | ) |   |   | (135,670 | ) |
|                                                                                                                                            |   |   |   |   |   |   |   |   |
|                                                                                                                                            |   |   |   |   |   |   |   |   |
| FINANCING      ACTIVITIES                                                                                                                       |   |   |   |   |   |   |   |   |
|   Net increase in demand      deposits, NOW accounts and                                                                              |   |   |   |   |   |   |   |   |
|     savings      accounts                                                                                                   |   |   | 21,918 |   |   |   | 16,872 |   |
|   Net increase in      certificates of deposit                                                                                        |   |   | 79,091 |   |   |   | 116,678 |   |
|   Net borrowings from      (payments on) debt obligations                                                                             |   |   | 58,660 |   |   |   | (18,154 | ) |
|   Net proceeds from      issuance of subordinated debentures                                                                          |   |   |   |   |   |   | 55,000 |   |
|   Resources provided by      minority interests                                                                                       |   |   | 13,786 |   |   |   | 8,036 |   |
|   Surrender of common      stock to facilitate vesting of                                                                             |   |   |   |   |   |   |   |   |
|     restricted      stock                                                                                                   |   |   | (217 | ) |   |   | (135 | ) |
|   Tax effect of      share-based payments                                                                                             |   |   | (4 | ) |   |   | 721 |   |
|   Cash dividends      paid                                                                                                            |   |   | (4,330 | ) |   |   | (4,261 | ) |
|                                                                                                                                            |   |   |   |   |   |   |   |   |
|                 NET      CASH PROVIDED BY FINANCING ACTIVITIES  |   |   | 168,904 |   |   |   | 174,757 |   |
|                                                                                                                                            |   |   |   |   |   |   |   |   |
|                 INCREASE      IN CASH AND CASH EQUIVALENTS      |   |   | 2,994 |   |   |   | 58,761 |   |
|                                                                                                                                            |   |   |   |   |   |   |   |   |
| Cash and cash equivalents at      beginning of period                                                                                           |   |   | 352,372 |   |   |   | 348,870 |   |
|                                                                                                                                            |   |   |   |   |   |   |   |   |
|                                                                                                                                            |   |   |   |   |   |   |   |   |
|                 CASH      AND CASH EQUIVALENTS AT END OF PERIOD |   | $ | 355,366 |   |   | $ | 407,631 |   |
|                                                                                                                                            |   |   |   |   |   |   |   |   |
| See notes to condensed      consolidated financial statements.                                                                                  |   |   |   |   |   |   |   |   |

----

| NOTES      TO CONDENSED CONSOLIDATED FINANCIALSTATEMENTS |
|----------------------------------------------------------|

| CAPITOL      BANCORP LIMITED |
|------------------------------|

|   | Level      1:  Quoted prices (unadjusted) for identical assets or      liabilities in active markets that the entity has the ability to access as      of the measurement date. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Level      2:  Significant other observable inputs other than Level 1      prices such as quoted prices for similar assets or liabilities in active      markets; quoted prices foridentical      or similar assets or liabilities in markets that are not active; or other      inputs that are observable or can be derived from or corroborated by      observablemarket      data by correlation or other means. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | NOTES      TO CONDENSED CONSOLIDATED FINANCIALSTATEMENTS |
|--------|----------------------------------------------------------|

|   | CAPITOL      BANCORP LIMITED – Continued |
|--------|------------------------------------------------|

|   | Level      3:  Significant unobservable inputs that reflect the reporting      entity’s own assumptions about the assumptions that market participants      would use in pricingan      asset or liability. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Investment securities      available for sale:  Securities available for sale are      recorded at fair value on a recurring basis.  Fair value      measurement is based on quoted prices,when      available.  If quoted prices are not available, fair values are      measured using independent pricing models.  Level 1 securities      include those traded on an activeexchange      as well as U.S. Treasury, other U.S. government and agency mortgage-backed      securities that are traded by dealers or brokers in active      over-the-counter markets.Level      2 securities include private collateralized mortgage      obligations. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Mortgage loans held for      sale:  Mortgage loans held for sale are carried at the      lower of cost or fair value and are measured on a nonrecurring      basis.  Mortgage loansheld      for sale written down to fair value are included in the table below (none      at March 31, 2008).  Fair value is based on      independent quoted market prices, whereapplicable,      or the prices for other mortgage whole loans with similar      characteristics. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Loans:  The      Corporation does not record loans at fair value on a recurring      basis.  However, from time to time, nonrecurring fair value      adjustments to collateral dependentloans      are recorded to reflect partial write-downs based on the observable      market price or current appraised value of the  collateral. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                               |   |   Total |   |   | Quoted      Prices inActive      Markets forIdentical      Assets(Level      1) |   |   | SignificantOtherObservable      Inputs(Level      2) |
|------------------------------------|--------|-------------------|--------|--------|---------------------------------------------------------------------------------|--------|--------|------------------------------------------------------|
|                               |   |              |   |   |                                                                            |   |   |                                                 |
| Securities      available for sale |   | $                 | 8,996  |   |                                                                            | $      | 8,209  |                                                 |   | $ | 787 |

|                    |   |   Total |   |   | SignificantUnobservableInputs(Level      3) |   |   |  Total      Gains(Losses) |   |
|-------------------------|--------|-------------------|--------|--------|---------------------------------------------|--------|--------|--------------------------------|--------|
|                    |   |              |   |   |                                        |   |   |                           |   |
| Impaired      loans (1) |   | $                 | 72,166 |   |                                        | $      | 72,166 |                           |   | $ | (2,937 | ) |

| (1)   | Represents      carrying value and related write-downs for which adjustments are based on      the appraised valueof      the collateral. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------|

----

| NOTES      TO CONDENSED CONSOLIDATED FINANCIALSTATEMENTS |
|----------------------------------------------------------|

| CAPITOL      BANCORP LIMITED – Continued |
|------------------------------------------------|

|                          |   | Number      ofStock      OptionsOutstanding |          |   | ExercisePriceRange |   |                                       | WeightedAverageExercisePrice |
|-------------------------------|--------|---------------------------------------------|---------------|--------|--------------------|--------|--------------------------------------------|------------------------------|
|                          |   |                                        |          |   |               |   |                                       |                         |
| Outstanding      at January 1 |   |                                        | 2,460,082     |   |               | $      | 13.50 to $ 46.20            |                         |   | $ | 27.85 |
| Granted                       |   |                                        | 52,360        |   |               |   | 20.12 to         20.12 |                         |   |   | 20.12 |
| Exercised                     |   |                                        | (2,674        | )      |               |   | 16.40 to         16.40 |                         |   |   | 16.40 |
| Cancelled      or expired     |   |                                        |  (10,944 | )      |               |   |                                       |                         |   |   |   |
|                          |   |                                        |          |   |               |   |                                       |                         |   |   |   |
| Outstanding      at March 31  |   |                                        | 2,498,824     |   |               | $      | 13.50 to $ 46.20            |                         |   | $ | 27.76 |

|                     |                           |   |              |      |          | Weighted      Average |   |                     |
|--------------------------|--------------------------------|--------|-------------------|-----------|---------------|-----------------------|--------|--------------------------|
| Exercise      PriceRange |                           |   | NumberOutstanding |      |          | ExercisePrice         |   | RemainingContractualLife |   | AggregateIntrinsicValue |
|                     |                           |   |              |      |          |                  |   |                     |   |   |
| $                        |  10.00 to 14.99 |   |              |      | 2,866         |                  |   | $                        | 13.50 |   |      0.76      years |   | $ | 21,896 |
| $                        |  15.00 to 19.99 |   |              |      | 224,514       |                  |   |                     | 16.60 |   |      1.93      years |   |   | 1,019,294 |
| $                        |  20.00 to 24.99 |   |              |      | 622,089       |                  |   |                     | 21.63 |   |      3.39      years |   |   | 0 |
| $                        |  25.00 to 29.99 |   |              |      | 586,733       |                  |   |                     | 27.09 |   |      2.40      years |   |   | 0 |
| $                        |  30.00 to 34.99 |   |              |      | 695,115       |                  |   |                     | 32.10 |   |      3.44      years |   |   | 0 |
| $                   | 35.00 or      more        |   |              |      |  367,507 |                  |   |                     | 37.92 |   |      4.67      years |   |   | 0 |
|                     |                           |   |              |      |          |                  |   |                     |   |   |   |   |   |   |
| Total      outstanding   |                           |   |              | 2,498,824 |          |                  |   |                     |   |   |   | $ | 1,041,190 |

|   | [The      remainder of this page intentionally leftblank] |
|--------|-----------------------------------------------------------|

----

| NOTES      TO CONDENSED CONSOLIDATED FINANCIALSTATEMENTS |
|----------------------------------------------------------|

| CAPITOL      BANCORP LIMITED – Continued |
|------------------------------------------------|

|                                                                                                                                            |   | Three      Months EndedMarch      31 |
|-------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------|
|                                                                                                                                            |   | 2008                                 |   |   | 2007 |
|                                                                                                                                            |   |                                 |   |   |   |
| Numerator—net      income for the period                                                                                                  |   | $                                    | 2,191 |   |   | $ | 6,271 |
|                                                                                                                                            |   |                                 |   |   |   |   |   |
| Denominator:                                                                                                                                    |   |                                 |   |   |   |   |   |
| Weighted      average number of sharesoutstanding,      excluding unvestedrestricted      shares (denominator for basicearnings      per share) |   |                                 |      17,141 |   |   |   |      16,695 |
|                                                                                                                                            |   |                                 |   |   |   |   |   |
| Effect      of dilutive securities:                                                                                                             |   |                                 |   |   |   |   |   |
| Unvested      restricted shares                                                                                                                 |   |                                 | 25 |   |   |   | 51 |
| Stock      options                                                                                                                              |   |                                 | 23 |   |   |   | 572 |
| Total      effect of dilutive securities                                                                                                        |   |                                 | 48 |   |   |   | 623 |
|                                                                                                                                            |   |                                 |   |   |   |   |   |
| Denominator      for diluted earnings per share—                                                                                          |   |                                 |   |   |   |   |   |
| Weighted      average number of shares andpotential      dilution                                                                               |   |                                 |  17,189 |   |   |   |  17,318 |
|                                                                                                                                            |   |                                 |   |   |   |   |   |
| Number      of antidilutive stock options excluded        from diluted earnings per share computation                                 |   |                                 |  2,271 |   |   |   |  -- |

----

| NOTES      TO CONDENSED CONSOLIDATED FINANCIALSTATEMENTS |
|----------------------------------------------------------|

| CAPITOL      BANCORP LIMITED – Continued |
|------------------------------------------------|

----

|                                   |   | Total      Assets   |
|----------------------------------------|--------|---------------------|
|                                   |   | March      31, 2008 |   |   | December      31, 2007 |
| Arizona      Region:                   |   |                |   |   |   |
| Arrowhead      Community Bank          |   | $                   | 94,199 |   |   | $ | 89,060 |
| Asian      Bank of Arizona             |   |                | 28,292 |   |   |   | 25,017 |
| Bank      of Tucson                    |   |                | 186,003 |   |   |   | 187,468 |
| Camelback      Community Bank          |   |                | 88,440 |   |   |   | 84,671 |
| Mesa      Bank                         |   |                | 215,039 |   |   |   | 217,861 |
| Southern      Arizona Community Bank   |   |                | 89,690 |   |   |   | 85,158 |
| Sunrise      Bank of Albuquerque       |   |                | 75,512 |   |   |   | 71,726 |
| Sunrise      Bank of Arizona           |   |                | 118,388 |   |   |   | 116,245 |
| Valley      First Community Bank       |   |                | 81,374 |   |   |   | 77,306 |
| Yuma      Community Bank               |   |                | 76,639 |   |   |   | 78,489 |
| Arizona      Region Total              |   |                | 1,053,576 |   |   |   | 1,033,001 |
|                                   |   |                |   |   |   |   |   |
| California      Region:                |   |                |   |   |   |   |   |
| Bank      of Escondido                 |   |                | 95,695 |   |   |   | 89,557 |
| Bank      of Feather River             |   |                | 15,626 |   |   |   | 17,283 |
| Bank      of San Francisco             |   |                | 63,395 |   |   |   | 68,902 |
| Bank      of Santa Barbara             |   |                | 63,077 |   |   |   | 58,738 |
| Napa      Community Bank               |   |                | 128,416 |   |   |   | 131,457 |
| Point      Loma Community Bank         |   |                | 54,067 |   |   |   | 56,428 |
| Sunrise      Bank of San Diego         |   |                | 88,659 |   |   |   | 81,905 |
| Sunrise      Community Bank            |   |                | 24,220 |   |   |   | 21,113 |
| California      Region Total           |   |                | 533,155 |   |   |   | 525,383 |
|                                   |   |                |   |   |   |   |   |
| Colorado      Region:                  |   |                |   |   |   |   |   |
| Fort      Collins Commerce Bank        |   |                | 63,380 |   |   |   | 61,083 |
| Larimer      Bank of Commerce          |   |                | 62,115 |   |   |   | 51,906 |
| Loveland      Bank of Commerce         |   |                | 20,357 |   |   |   | 15,941 |
| Mountain      View Bank of Commerce(2) |   |                | 11,057 |   |   |   |   |
| Colorado      Region Total             |   |                | 156,909 |   |   |   | 128,930 |
|                                   |   |                |   |   |   |   |   |
| Great      Lakes Region:               |   |                |   |   |   |   |   |
| Ann      Arbor Commerce Bank           |   |                | 358,745 |   |   |   | 362,429 |
| Bank      of Auburn Hills              |   |                | 45,969 |   |   |   | 44,767 |
| Bank      of Maumee                    |   |                | 49,018 |   |   |   | 35,576 |
| Bank      of Michigan                  |   |                | 66,991 |   |   |   | 69,909 |
| Brighton      Commerce Bank            |   |                | 110,346 |   |   |   | 108,664 |
| Capitol      National Bank             |   |                | 238,423 |   |   |   | 228,556 |
| Detroit      Commerce Bank             |   |                | 108,265 |   |   |   | 113,243 |
| Elkhart      Community Bank            |   |                | 90,738 |   |   |   | 89,064 |
| Evansville      Commerce Bank          |   |                | 57,033 |   |   |   | 50,819 |
| Goshen      Community Bank             |   |                | 78,136 |   |   |   | 93,173 |
| Grand      Haven Bank                  |   |                | 126,163 |   |   |   | 130,492 |
| Kent      Commerce Bank                |   |                | 84,246 |   |   |   | 87,060 |
| Macomb      Community Bank             |   |                | 91,956 |   |   |   | 93,045 |
| Muskegon      Commerce Bank            |   |                | 95,950 |   |   |   | 98,975 |
| Oakland      Commerce Bank             |   |                | 97,700 |   |   |   | 109,370 |
| Ohio      Commerce Bank                |   |                | 42,941 |   |   |   | 35,690 |
| Paragon      Bank & Trust          |   |                | 103,262 |   |   |   | 103,711 |
| Portage      Commerce Bank             |   |                | 204,367 |   |   |   | 189,944 |
| Great      Lakes Region Total          |   |                | 2,050,249 |   |   |   | 2,044,487 |
|                                   |   |                |   |   |   |   |   |
| Midwest      Region:                   |   |                |   |   |   |   |   |
| Adams      Dairy Bank(1)               |   |                | 21,681 |   |   |   |   |
| Bank      of Belleville                |   |                | 59,729 |   |   |   | 50,485 |
| Community      Bank of Lincoln         |   |                | 25,800 |   |   |   | 12,960 |
| Summit      Bank of Kansas City        |   |                | 44,020 |   |   |   | 50,142 |
| Midwest      Region Total              |   |                | 151,230 |   |   |   | 113,587 |

----

|                               |   | Total      Assets   |
|------------------------------------|--------|---------------------|
|                               |   | March      31, 2008 |   |   | December      31, 2007 |
| Nevada      Region:                |   |                |   |   |   |
| 1st      Commerce Bank             |   | $                   | 31,683 |   |   | $ | 32,091 |
| Bank      of Las Vegas             |   |                | 70,001 |   |   |   | 72,768 |
| Black      Mountain Community Bank |   |                | 156,135 |   |   |   | 147,433 |
| Desert      Community Bank         |   |                | 103,907 |   |   |   | 101,840 |
| Red      Rock Community Bank       |   |                | 118,271 |   |   |   | 120,750 |
| Nevada      Region Total           |   |                | 479,997 |   |   |   | 474,882 |
|                               |   |                |   |   |   |   |   |
| Northeast      Region:             |   |                |   |   |   |   |   |
| USNY      Bank                     |   |                | 26,979 |   |   |   | 17,171 |
|                               |   |                |   |   |   |   |   |
| Northwest      Region:             |   |                |   |   |   |   |   |
| Bank      of Bellevue              |   |                | 43,182 |   |   |   | 45,122 |
| Bank      of Everett               |   |                | 33,745 |   |   |   | 28,946 |
| Bank      of Tacoma                |   |                | 26,954 |   |   |   | 24,325 |
| High      Desert Bank              |   |                | 16,542 |   |   |   | 11,501 |
| Issaquah      Community Bank       |   |                | 15,400 |   |   |   | 13,696 |
| Northwest      Region Total        |   |                | 135,823 |   |   |   | 123,590 |
|                               |   |                |   |   |   |   |   |
| Southeast      Region:             |   |                |   |   |   |   |   |
| Bank      of Valdosta              |   |                | 57,528 |   |   |   | 43,842 |
| Community      Bank of Rowan       |   |                | 119,608 |   |   |   | 117,495 |
| First      Carolina State Bank     |   |                | 116,538 |   |   |   | 115,243 |
| Peoples      State Bank            |   |                | 27,192 |   |   |   | 26,159 |
| Sunrise      Bank of Atlanta       |   |                | 54,199 |   |   |   | 48,664 |
| Southeast      Region Total        |   |                | 375,065 |   |   |   | 351,403 |
|                               |   |                |   |   |   |   |   |
| Texas      Region:                 |   |                |   |   |   |   |   |
| Bank      of Ford Bend             |   |                | 14,622 |   |   |   | 9,551 |
| Bank      of Las Colinas           |   |                | 19,017 |   |   |   | 11,383 |
| Texas      Region Total            |   |                | 33,639 |   |   |   | 20,934 |
|                               |   |                |   |   |   |   |   |
| Other,      net                    |   |                | 70,061 |   |   |   | 68,395 |
|                               |   |                |   |   |   |   |   |
| Consolidated      Totals           |   | $                   | 5,066,683 |   |   | $ | 4,901,763 |

| (1) | Commenced      operations in January 2008 and is 51%-owned by Capitol Development      BancorpLimited      V, a controlled subsidiary of Capitol.   |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------|
| (2) | Commenced      operations in February 2008 and is 51%-owned by Capitol Development      BancorpLimited      VII, a controlled subsidiary ofCapitol. |

----

|                                                                                  |   | 2008   |      |   | 2007   |   |
|---------------------------------------------------------------------------------------|--------|--------|-----------|--------|--------|--------|
| Allowance for loan losses at      January 1                                           |   | $      | 58,124    |   |   | $      | 45,414 |   |
|                                                                                  |   |   |      |   |   |   |   |   |
| Loans      charged-off:                                                               |   |   |      |   |   |   |   |   |
| Loans secured by real      estate:                                                    |   |   |      |   |   |   |   |   |
| Commercial                                                                            |   |   | (672      | )      |   |   | (159 | ) |
| Residential (including      multi-family)                                             |   |   | (2,150    | )      |   |   | (355 | ) |
| Construction, land development and      other land                                    |   |   | (1,359    | )      |   |   | (202 | ) |
| Total loans secured by real      estate                                               |   |   | (4,181    | )      |   |   | (716 | ) |
| Commercial and other      business-purpose loans                                      |   |   | (1,801    | )      |   |   | (1,807 | ) |
| Consumer                                                                              |   |   | (134      | )      |   |   | (114 | ) |
| Total      charge-offs                                                                |   |   | (6,116    | )      |   |   | (2,637 | ) |
| Recoveries:                                                                           |   |   |      |   |   |   |   |   |
| Loans secured by real      estate:                                                    |   |   |      |   |   |   |   |   |
| Commercial                                                                            |   |   | 118       |   |   |   | 59 |   |
| Residential (including      multi-family)                                             |   |   | 84        |   |   |   | 64 |   |
| Construction, land development and      other land                                    |   |   | 26        |   |   |   | 1 |   |
| Total loans secured by real      estate                                               |   |   | 228       |   |   |   | 124 |   |
| Commercial and other      business-purpose loans                                      |   |   | 430       |   |   |   | 174 |   |
| Consumer                                                                              |   |   | 41        |   |   |   | 45 |   |
| Other                                                                                 |   |   | 1         |   |   |   | -- |   |
| Total      recoveries                                                                 |   |   | 700       |   |   |   | 343 |   |
| Net    charge-offs                                                                    |   |   | (5,416    | )      |   |   | (2,294 | ) |
| Additions to allowance charged to      expense                                        |   |   | 8,958     |   |   |   | 3,932 |   |
|                                                                                  |   |   |      |   |   |   |   |   |
| Allowance for loan losses at March      31                                            |   | $      | 61,666    |   |   | $      | 47,052 |   |
|                                                                                  |   |   |      |   |   |   |   |   |
| Average total portfolio loans for      period ended March 31                          |   | $      | 4,402,469 |   |   | $      | 3,555,432 |   |
|                                                                                  |   |   |      |   |   |   |   |   |
| Ratio of net charge-offs      (annualized) to average portfolioloans      outstanding |   |   | 0.49      | %      |   |   | 0.26 | % |

----

|                                                                |   | March 31,    2008  |         |   | December 31,      2007           |   |
|---------------------------------------------------------------------|--------|--------------------|--------------|--------|----------------------------------|--------|
|                                                                |   |   Amount |         |   | Percentageof TotalPortfolioLoans |   |   |   Amount |   |   | Percentageof TotalPortfolioLoans |   |
|                                                                |
|                                                                |
|                                                                |
|                                                                |   |               |         |   |                             |   |   |   |   |   |   |   |
| Loans secured by real      estate:                                  |   |               |         |   |                             |   |   |   |   |   |   |   |
| Commercial                                                          |   | $                  | 22,276       |   |                             |   | 0.50 | % |   | $ | 21,918 |   |   |   | 0.51 | % |
| Residential (including      multi-family)                           |   |               | 11,842       |   |                             |   | 0.26 |   |   |   | 10,235 |   |   |   | 0.24 |   |
| Construction, land development      and   other      land |   |               |  12,335 |   |                             |   |  0.28 |   |   |   |  11,278 |   |   |   |  0.26 |   |
| Total loans secured by real      estate                             |   |               | 46,453       |   |                             |   | 1.04 |   |   |   | 43,431 |   |   |   | 1.01 |   |
| Commercial and other      business-purpose loans                    |   |               | 14,214       |   |                             |   | 0.32 |   |   |   | 13,727 |   |   |   | 0.32 |   |
| Consumer                                                            |   |               | 759          |   |                             |   | 0.02 |   |   |   | 667 |   |   |   | 0.01 |   |
| Other                                                               |   |               | 240          |   |                             |   |  -- |   |   |   | 299 |   |   |   | 0.01 |   |
|                                                                |   |               |         |   |                             |   |   |   |   |   |   |   |   |   |   |   |
| Total allowance for loan      losses                                |   | $                  | 61,666       |   |                             |   | 1.38 | % |   | $ | 58,124 |   |   |   | 1.35 | % |

----

|                                                    |   | March 31,2008 |         |   | December 31,2007 |
|---------------------------------------------------------|--------|---------------|--------------|--------|------------------|
| Nonaccrual      loans:                                  |   |          |         |   |             |
| Loans secured by real      estate:                      |   |          |         |   |             |
| Commercial                                              |   | $             | 21,497       |   |             | $ | 19,016 |
| Residential (including      multi-family)               |   |          | 17,094       |   |             |   | 13,381 |
| Construction, land development and      other land      |   |          | 36,704       |   |             |   | 29,756 |
| Total loans secured by real      estate                 |   |          | 75,295       |   |             |   | 62,153 |
| Commercial and other      business-purpose loans        |   |          | 7,833        |   |             |   | 5,782 |
| Consumer                                                |   |          | 86           |   |             |   | 66 |
| Other                                                   |   |          | --           |   |             |   | 84 |
| Total nonaccrual      loans                             |   |          | 83,214       |   |             |   | 68,085 |
|                                                    |   |          |         |   |             |   |   |
| Past due (>90 days)    loans:                        |   |          |         |   |             |   |   |
| Loans secured by real      estate:                      |   |          |         |   |             |   |   |
| Commercial                                              |   |          | 503          |   |             |   | 113 |
| Residential (including      multi-family)               |   |          | 3,407        |   |             |   | 1,116 |
| Construction, land development and      other land      |   |          | 214          |   |             |   | 2,531 |
| Total loans secured by real      estate                 |   |          | 4,124        |   |             |   | 3,760 |
| Commercial and other      business-purpose loans        |   |          | 1,477        |   |             |   | 714 |
| Consumer                                                |   |          | 23           |   |             |   | 66 |
| Other                                                   |   |          | --           |   |             |   | 5 |
| Total past due      loans                               |   |          | 5,624        |   |             |   | 4,545 |
|                                                    |   |          |         |   |             |   |   |
| Total nonperforming      loans                          |   | $             | 88,838       |   |             | $ | 72,630 |
|                                                    |   |          |         |   |             |   |   |
| Real estate owned and      otherrepossessed      assets |   |          |  22,601 |   |             |   |  16,680 |
|                                                    |   |          |         |   |             |   |   |
| Total nonperforming      assets                         |   | $             | 111,439      |   |             | $ | 89,310 |

----

----

|                                   |   |                       |      |   | Allowance      for |   |      |                     |   |   | Allowance      as a Percentage |   |
|----------------------------------------|--------|----------------------------|-----------|--------|--------------------|--------|-----------|--------------------------|--------|--------|--------------------------------|--------|
|                                   |   | Total      Portfolio Loans |      |   | Loan      Losses   |   |      | Nonperforming      Loans |   |   | of      Total Portfolio Loans  |   |
|                                   |   | March      31,2008         |      |   | Dec      31,2007   |   |      | March      31,2008       |   |   | Dec      31,2007               |   |   | March      31,2008 |   |   | Dec      31,2007 |   |   | March      31,2008 |   |   | Dec      31,2007 |   |
| Arizona      Region:                   |   |                       |      |   |               |   |      |                     |   |   |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Arrowhead      Community Bank          |   | $                          | 80,283    |   |               | $      | 81,836    |                     |   | $      | 876                            |   |   | $ | 818 |   |   | $ | 317 |   |   | $ | 361 |   |   |   | 1.09 | % |   |   | 1.00 | % |
| Asian      Bank of Arizona             |   |                       | 25,098    |   |               |   | 21,514    |                     |   |   | 540                            |   |   |   | 405 |   |   |   | 314 |   |   |   | 314 |   |   |   | 2.15 | % |   |   | 1.88 | % |
| Bank      of Tucson                    |   |                       | 157,919   |   |               |   | 168,427   |                     |   |   | 1,275                          |   |   |   | 1,385 |   |   |   | 750 |   |   |   | 752 |   |   |   | 0.81 | % |   |   | 0.82 | % |
| Camelback      Community Bank          |   |                       | 83,196    |   |               |   | 79,869    |                     |   |   | 735                            |   |   |   | 800 |   |   |   | 1,132 |   |   |   | 451 |   |   |   | 0.88 | % |   |   | 1.00 | % |
| Mesa      Bank                         |   |                       | 197,710   |   |               |   | 202,511   |                     |   |   | 1,695                          |   |   |   | 1,760 |   |   |   | 9,519 |   |   |   | 3,699 |   |   |   | 0.86 | % |   |   | 0.87 | % |
| Southern      Arizona Community Bank   |   |                       | 82,360    |   |               |   | 78,467    |                     |   |   | 810                            |   |   |   | 792 |   |   |   |   |   |   |   | 600 |   |   |   | 0.98 | % |   |   | 1.01 | % |
| Sunrise      Bank of Albuquerque       |   |                       | 70,197    |   |               |   | 67,192    |                     |   |   | 862                            |   |   |   | 866 |   |   |   | 185 |   |   |   | 183 |   |   |   | 1.23 | % |   |   | 1.29 | % |
| Sunrise      Bank of Arizona           |   |                       | 111,641   |   |               |   | 112,211   |                     |   |   | 1,110                          |   |   |   | 1,125 |   |   |   | 58 |   |   |   | 4,250 |   |   |   | 0.99 | % |   |   | 1.00 | % |
| Valley      First Community Bank       |   |                       | 72,193    |   |               |   | 71,689    |                     |   |   | 741                            |   |   |   | 653 |   |   |   | 1,301 |   |   |   |   |   |   |   | 1.03 | % |   |   | 0.91 | % |
| Yuma      Community Bank               |   |                       | 64,834    |   |               |   | 66,092    |                     |   |   | 525                            |   |   |   | 525 |   |   |   |   |   |   |   | 600 |   |   |   | 0.81 | % |   |   | 0.79 | % |
| Arizona      Region Total              |   |                       | 945,431   |   |               |   | 949,808   |                     |   |   | 9,169                          |   |   |   | 9,129 |   |   |   | 13,575 |   |   |   | 11,210 |   |   |   | 0.97 | % |   |   | 0.96 | % |
|                                   |   |                       |      |   |               |   |      |                     |   |   |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| California      Region:                |   |                       |      |   |               |   |      |                     |   |   |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Bank      of Escondido                 |   |                       | 55,405    |   |               |   | 54,707    |                     |   |   | 700                            |   |   |   | 560 |   |   |   | 958 |   |   |   | 311 |   |   |   | 1.26 | % |   |   | 1.02 | % |
| Bank      of Feather River             |   |                       | 10,766    |   |               |   | 13,345    |                     |   |   | 159                            |   |   |   | 187 |   |   |   |   |   |   |   |   |   |   |   | 1.48 | % |   |   | 1.40 | % |
| Bank      of San Francisco             |   |                       | 46,917    |   |               |   | 44,989    |                     |   |   | 707                            |   |   |   | 695 |   |   |   | 392 |   |   |   | 392 |   |   |   | 1.51 | % |   |   | 1.54 | % |
| Bank      of Santa Barbara             |   |                       | 54,851    |   |               |   | 52,340    |                     |   |   | 939                            |   |   |   | 741 |   |   |   | 650 |   |   |   |   |   |   |   | 1.71 | % |   |   | 1.42 | % |
| Napa      Community Bank               |   |                       | 111,023   |   |               |   | 100,253   |                     |   |   | 1,127                          |   |   |   | 1,069 |   |   |   |   |   |   |   | 1,459 |   |   |   | 1.02 | % |   |   | 1.07 | % |
| Point      Loma Community Bank         |   |                       | 50,242    |   |               |   | 49,607    |                     |   |   | 745                            |   |   |   | 695 |   |   |   | 46 |   |   |   |   |   |   |   | 1.48 | % |   |   | 1.40 | % |
| Sunrise      Bank of San Diego         |   |                       | 78,441    |   |               |   | 74,526    |                     |   |   | 945                            |   |   |   | 908 |   |   |   | 2,097 |   |   |   | 2,386 |   |   |   | 1.20 | % |   |   | 1.22 | % |
| Sunrise      Community Bank            |   |                       | 20,065    |   |               |   | 17,624    |                     |   |   | 291                            |   |   |   | 255 |   |   |   |   |   |   |   |   |   |   |   | 1.45 | % |   |   | 1.45 | % |
| California      Region Total           |   |                       | 427,710   |   |               |   | 407,391   |                     |   |   | 5,613                          |   |   |   | 5,110 |   |   |   | 4,143 |   |   |   | 4,548 |   |   |   | 1.31 | % |   |   | 1.25 | % |
|                                   |   |                       |      |   |               |   |      |                     |   |   |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Colorado      Region:                  |   |                       |      |   |               |   |      |                     |   |   |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Fort      Collins Commerce Bank        |   |                       | 59,646    |   |               |   | 59,388    |                     |   |   | 929                            |   |   |   | 889 |   |   |   |   |   |   |   |   |   |   |   | 1.56 | % |   |   | 1.50 | % |
| Larimer      Bank of Commerce          |   |                       | 57,432    |   |               |   | 50,927    |                     |   |   | 835                            |   |   |   | 765 |   |   |   |   |   |   |   |   |   |   |   | 1.45 | % |   |   | 1.50 | % |
| Loveland      Bank of Commerce         |   |                       | 18,647    |   |               |   | 15,253    |                     |   |   | 285                            |   |   |   | 229 |   |   |   |   |   |   |   |   |   |   |   | 1.53 | % |   |   | 1.50 | % |
| Mountain      View Bank of Commerce(2) |   |                       | 9,700     |   |               |   |      |                     |   |   | 143                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 1.47 | % |   |   |   |   |
| Colorado      Region Total             |   |                       | 145,425   |   |               |   | 125,568   |                     |   |   | 2,192                          |   |   |   | 1,883 |   |   |   |   |   |   |   |   |   |   |   | 1.51 | % |   |   | 1.50 | % |
|                                   |   |                       |      |   |               |   |      |                     |   |   |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Great      Lakes Region:               |   |                       |      |   |               |   |      |                     |   |   |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Ann      Arbor Commerce Bank           |   |                       | 328,186   |   |               |   | 332,624   |                     |   |   | 4,330                          |   |   |   | 4,504 |   |   |   | 3,897 |   |   |   | 5,161 |   |   |   | 1.32 | % |   |   | 1.35 | % |
| Bank      of Auburn Hills              |   |                       | 41,129    |   |               |   | 36,586    |                     |   |   | 980                            |   |   |   | 820 |   |   |   | 1,513 |   |   |   | 1,293 |   |   |   | 2.38 | % |   |   | 2.24 | % |
| Bank      of Maumee                    |   |                       | 41,212    |   |               |   | 32,102    |                     |   |   | 618                            |   |   |   | 482 |   |   |   |   |   |   |   |   |   |   |   | 1.50 | % |   |   | 1.50 | % |
| Bank      of Michigan                  |   |                       | 63,904    |   |               |   | 63,448    |                     |   |   | 952                            |   |   |   | 952 |   |   |   | 378 |   |   |   | 370 |   |   |   | 1.49 | % |   |   | 1.50 | % |
| Brighton      Commerce Bank            |   |                       | 103,048   |   |               |   | 99,627    |                     |   |   | 1,030                          |   |   |   | 1,018 |   |   |   | 275 |   |   |   | 18 |   |   |   | 1.00 | % |   |   | 1.02 | % |
| Capitol      National Bank             |   |                       | 208,992   |   |               |   | 206,449   |                     |   |   | 3,595                          |   |   |   | 3,421 |   |   |   | 5,867 |   |   |   | 3,449 |   |   |   | 1.72 | % |   |   | 1.66 | % |
| Detroit      Commerce Bank             |   |                       | 101,912   |   |               |   | 108,992   |                     |   |   | 1,562                          |   |   |   | 1,355 |   |   |   | 3,768 |   |   |   | 3,948 |   |   |   | 1.53 | % |   |   | 1.24 | % |
| Elkhart      Community Bank            |   |                       | 87,262    |   |               |   | 83,754    |                     |   |   | 1,400                          |   |   |   | 1,282 |   |   |   | 3,086 |   |   |   | 2,677 |   |   |   | 1.60 | % |   |   | 1.53 | % |
| Evansville      Commerce Bank          |   |                       | 52,891    |   |               |   | 48,113    |                     |   |   | 782                            |   |   |   | 720 |   |   |   | 405 |   |   |   | 80 |   |   |   | 1.48 | % |   |   | 1.50 | % |
| Goshen      Community Bank             |   |                       | 71,090    |   |               |   | 70,799    |                     |   |   | 937                            |   |   |   | 874 |   |   |   | 105 |   |   |   | 491 |   |   |   | 1.32 | % |   |   | 1.23 | % |
| Grand      Haven Bank                  |   |                       | 118,146   |   |               |   | 122,208   |                     |   |   | 2,671                          |   |   |   | 2,644 |   |   |   | 8,620 |   |   |   | 6,970 |   |   |   | 2.26 | % |   |   | 2.16 | % |
| Kent      Commerce Bank                |   |                       | 78,370    |   |               |   | 83,357    |                     |   |   | 1,476                          |   |   |   | 1,527 |   |   |   | 1,559 |   |   |   | 2,456 |   |   |   | 1.88 | % |   |   | 1.83 | % |
| Macomb      Community Bank             |   |                       | 85,386    |   |               |   | 87,670    |                     |   |   | 2,784                          |   |   |   | 2,283 |   |   |   | 11,753 |   |   |   | 11,846 |   |   |   | 3.26 | % |   |   | 2.60 | % |
| Muskegon      Commerce Bank            |   |                       | 84,340    |   |               |   | 90,031    |                     |   |   | 2,108                          |   |   |   | 1,762 |   |   |   | 4,289 |   |   |   | 2,362 |   |   |   | 2.50 | % |   |   | 1.96 | % |
| Oakland      Commerce Bank             |   |                       | 92,206    |   |               |   | 99,770    |                     |   |   | 2,286                          |   |   |   | 1,816 |   |   |   | 4,465 |   |   |   | 3,803 |   |   |   | 2.48 | % |   |   | 1.82 | % |
| Ohio      Commerce Bank                |   |                       | 36,056    |   |               |   | 29,110    |                     |   |   | 541                            |   |   |   | 437 |   |   |   |   |   |   |   |   |   |   |   | 1.50 | % |   |   | 1.50 | % |
| Paragon      Bank & Trust          |   |                       | 90,477    |   |               |   | 91,481    |                     |   |   | 1,762                          |   |   |   | 1,431 |   |   |   | 3,618 |   |   |   | 2,220 |   |   |   | 1.95 | % |   |   | 1.56 | % |
| Portage      Commerce Bank             |   |                       | 192,731   |   |               |   | 179,219   |                     |   |   | 2,007                          |   |   |   | 1,812 |   |   |   | 1,320 |   |   |   | 1,127 |   |   |   | 1.04 | % |   |   | 1.01 | % |
| Great      Lakes Region Total          |   |                       | 1,877,338 |   |               |   | 1,865,340 |                     |   |   | 31,821                         |   |   |   | 29,140 |   |   |   | 54,918 |   |   |   | 48,271 |   |   |   | 1.70 | % |   |   | 1.56 | % |
|                                   |   |                       |      |   |               |   |      |                     |   |   |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Midwest      Region:                   |   |                       |      |   |               |   |      |                     |   |   |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Adams      Dairy Bank(1)               |   |                       | 19,215    |   |               |   |      |                     |   |   | 288                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 1.50 | % |   |   |   |   |
| Bank      of Belleville                |   |                       | 52,221    |   |               |   | 46,951    |                     |   |   | 782                            |   |   |   | 700 |   |   |   |   |   |   |   |   |   |   |   | 1.50 | % |   |   | 1.49 | % |
| Community      Bank of Lincoln         |   |                       | 22,355    |   |               |   | 10,501    |                     |   |   | 354                            |   |   |   | 168 |   |   |   |   |   |   |   |   |   |   |   | 1.58 | % |   |   | 1.60 | % |
| Summit      Bank of Kansas City        |   |                       | 37,471    |   |               |   | 45,165    |                     |   |   | 641                            |   |   |   | 641 |   |   |   |   |   |   |   |   |   |   |   | 1.71 | % |   |   | 1.42 | % |
| Midwest      Region Total              |   |                       | 131,262   |   |               |   | 102,617   |                     |   |   | 2,065                          |   |   |   | 1,509 |   |   |   |   |   |   |   |   |   |   |   | 1.57 | % |   |   | 1.47 | % |

----

|                               |   |                       |      |   | Allowance      for |   |      |                     |   |   | Allowance      as a Percentage |   |
|------------------------------------|--------|----------------------------|-----------|--------|--------------------|--------|-----------|--------------------------|--------|--------|--------------------------------|--------|
|                               |   | Total      Portfolio Loans |      |   | Loan      Losses   |   |      | Nonperforming      Loans |   |   | of      Total Portfolio Loans  |   |
|                               |   | March      31,2008         |      |   | Dec      31,2007   |   |      | March      31,2008       |   |   | Dec      31,2007               |   |   | March      31,2008 |   |   | Dec      31,2007 |   |   | March      31,2008 |   |   | Dec      31,2007 |   |
| Nevada      Region:                |   |                       |      |   |               |   |      |                     |   |   |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 1st      Commerce Bank             |   | $                          | 30,078    |   |               | $      | 27,030    |                     |   | $      | 433                            |   |   | $ | 393 |   |   | $ | 901 |   |   |   |   |   |   | 1.44 | % |   |   | 1.45 | % |
| Bank      of Las Vegas             |   |                       | 66,197    |   |               |   | 61,662    |                     |   |   | 807                            |   |   |   | 751 |   |   |   |   |   |   |   |   |   |   | 1.22 | % |   |   | 1.22 | % |
| Black      Mountain Community Bank |   |                       | 137,461   |   |               |   | 137,308   |                     |   |   | 1,655                          |   |   |   | 1,415 |   |   |   | 1,409 |   |   | $ | 659 |   |   |   | 1.20 | % |   |   | 1.03 | % |
| Desert      Community Bank         |   |                       | 92,448    |   |               |   | 90,050    |                     |   |   | 801                            |   |   |   | 837 |   |   |   | 712 |   |   |   | 356 |   |   |   | 0.87 | % |   |   | 0.93 | % |
| Red      Rock Community Bank       |   |                       | 109,993   |   |               |   | 106,559   |                     |   |   | 1,122                          |   |   |   | 977 |   |   |   | 2,603 |   |   |   | 64 |   |   |   | 1.02 | % |   |   | 0.92 | % |
| Nevada      Region Total           |   |                       | 436,177   |   |               |   | 422,609   |                     |   |   | 4,818                          |   |   |   | 4,373 |   |   |   | 5,625 |   |   |   | 1,079 |   |   |   | 1.10 | % |   |   | 1.03 | % |
|                               |   |                       |      |   |               |   |      |                     |   |   |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Northeast      Region:             |   |                       |      |   |               |   |      |                     |   |   |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| USNY      Bank                     |   |                       | 19,796    |   |               |   | 12,421    |                     |   |   | 297                            |   |   |   | 187 |   |   |   |   |   |   |   |   |   |   |   | 1.50 | % |   |   | 1.51 | % |
|                               |   |                       |      |   |               |   |      |                     |   |   |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Northwest      Region:             |   |                       |      |   |               |   |      |                     |   |   |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Bank      of Bellevue              |   |                       | 37,861    |   |               |   | 37,364    |                     |   |   | 810                            |   |   |   | 665 |   |   |   | 1,222 |   |   |   | 222 |   |   |   | 2.14 | % |   |   | 1.78 | % |
| Bank      of Everett               |   |                       | 27,205    |   |               |   | 24,170    |                     |   |   | 515                            |   |   |   | 418 |   |   |   | 688 |   |   |   |   |   |   |   | 1.89 | % |   |   | 1.73 | % |
| Bank      of Tacoma                |   |                       | 24,663    |   |               |   | 19,639    |                     |   |   | 380                            |   |   |   | 285 |   |   |   |   |   |   |   |   |   |   |   | 1.54 | % |   |   | 1.45 | % |
| High      Desert Bank              |   |                       | 14,739    |   |               |   | 9,080     |                     |   |   | 195                            |   |   |   | 126 |   |   |   |   |   |   |   |   |   |   |   | 1.32 | % |   |   | 1.39 | % |
| Issaquah      Community Bank       |   |                       | 13,085    |   |               |   | 6,598     |                     |   |   | 192                            |   |   |   | 93 |   |   |   |   |   |   |   |   |   |   |   | 1.47 | % |   |   | 1.41 | % |
| Northwest      Region Total        |   |                       | 117,553   |   |               |   | 96,851    |                     |   |   | 2,092                          |   |   |   | 1,587 |   |   |   | 1,910 |   |   |   | 222 |   |   |   | 1.78 | % |   |   | 1.64 | % |
|                               |   |                       |      |   |               |   |      |                     |   |   |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Southeast      Region:             |   |                       |      |   |               |   |      |                     |   |   |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Bank      of Valdosta              |   |                       | 49,213    |   |               |   | 41,629    |                     |   |   | 731                            |   |   |   | 619 |   |   |   | 335 |   |   |   |   |   |   |   | 1.49 | % |   |   | 1.49 | % |
| Community      Bank of Rowan       |   |                       | 103,459   |   |               |   | 96,271    |                     |   |   | 1,567                          |   |   |   | 1,444 |   |   |   |   |   |   |   |   |   |   |   | 1.51 | % |   |   | 1.50 | % |
| First      Carolina State Bank     |   |                       | 92,884    |   |               |   | 94,047    |                     |   |   | 1,200                          |   |   |   | 1,157 |   |   |   | 970 |   |   |   | 829 |   |   |   | 1.29 | % |   |   | 1.23 | % |
| Peoples      State Bank            |   |                       | 19,214    |   |               |   | 13,609    |                     |   |   | 316                            |   |   |   | 247 |   |   |   | 322 |   |   |   | 86 |   |   |   | 1.64 | % |   |   | 1.81 | % |
| Sunrise      Bank of Atlanta       |   |                       | 50,242    |   |               |   | 45,024    |                     |   |   | 1,025                          |   |   |   | 760 |   |   |   | 1,200 |   |   |   |   |   |   |   | 2.04 | % |   |   | 1.69 | % |
| Southeast      Region Total        |   |                       | 315,012   |   |               |   | 290,580   |                     |   |   | 4,839                          |   |   |   | 4,227 |   |   |   | 2,827 |   |   |   | 915 |   |   |   | 1.54 | % |   |   | 1.45 | % |
|                               |   |                       |      |   |               |   |      |                     |   |   |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Texas      Region:                 |   |                       |      |   |               |   |      |                     |   |   |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Bank      of Fort Bend             |   |                       | 11,471    |   |               |   | 3,140     |                     |   |   | 170                            |   |   |   | 46 |   |   |   |   |   |   |   |   |   |   |   | 1.48 | % |   |   | 1.47 | % |
| Bank      of Las Colinas           |   |                       | 15,184    |   |               |   | 9,830     |                     |   |   | 225                            |   |   |   | 144 |   |   |   |   |   |   |   |   |   |   |   | 1.48 | % |   |   | 1.46 | % |
| Texas      Region Total            |   |                       | 26,655    |   |               |   | 12,970    |                     |   |   | 395                            |   |   |   | 190 |   |   |   |   |   |   |   |   |   |   |   | 1.48 | % |   |   | 1.46 | % |
|                               |   |                       |      |   |               |   |      |                     |   |   |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other,      net                    |   |                       | 25,269    |   |               |   | 28,546    |                     |   |   | (1,635                         | )      |   |   | 789 |   |   |   | 5,840 |   |   |   | 6,385 |   |   |   | (0.65 | )% |   |   | 2.76 | % |
|                               |   |                       |      |   |               |   |      |                     |   |   |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Consolidated      totals           |   | $                          | 4,467,628 |   |               | $      | 4,314,701 |                     |   | $      | 61,666                         |   |   | $ | 58,124 |   |   | $ | 88,838 |   |   | $ | 72,630 |   |   |   | 1.38 | % |   |   | 1.35 | % |

| (1) | Commenced      operations in January 2008 and is 51%-owned by Capitol Development Bancorp      Limited V,a      controlled subsidiary of Capitol.    |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------|
| (2) | Commenced      operations in February 2008 and is 51%-owned by Capitol Development      Bancorp Limited VII,a      controlled subsidiary of Capitol. |

----

----

|                                                                                                      |   | Three      months ended March 31 |
|-----------------------------------------------------------------------------------------------------------|--------|----------------------------------|
|                                                                                                      |   | 2008                             |   |   | 2007 |
|                                                                                                      |   |                             |   |   |   |
| Preopening      and start-up costs                                                                        |   | $                                | 952 |   |   | $ | 928 |
| FDIC      insurance premiums and other     regulatory      fees                       |   |                             |  937 |   |   |   |  571 |
| Costs      associated with foreclosed     properties      and other real estate owned |   |                             |  911 |   |   |   |  128 |
| Directors'      fees                                                                                      |   |                             | 802 |   |   |   | 683 |
| Advertising                                                                                               |   |                             | 776 |   |   |   | 736 |
| Paper,      printing and supplies                                                                         |   |                             | 770 |   |   |   | 652 |
| Travel,      lodging and meals                                                                            |   |                             | 633 |   |   |   | 585 |
| Bank      services (ATMs, telephone banking     and      Internet banking)            |   |                             |  555 |   |   |   |  557 |
| Loan      and collection expense                                                                          |   |                             | 546 |   |   |   | 613 |
| Communications                                                                                            |   |                             | 508 |   |   |   | 405 |
| Professional      fees                                                                                    |   |                             | 488 |   |   |   | 506 |
| Taxes      other than income taxes                                                                        |   |                             | 374 |   |   |   | 489 |
| Postage                                                                                                   |   |                             | 310 |   |   |   | 263 |
| Courier      service                                                                                      |   |                             | 240 |   |   |   | 236 |
| Dues      and memberships                                                                                 |   |                             | 221 |   |   |   | 227 |
| Insurance      expense                                                                                    |   |                             | 147 |   |   |   | 98 |
| Contracted      labor                                                                                     |   |                             | 120 |   |   |   | 132 |
| Publications                                                                                              |   |                             | 45 |   |   |   | 35 |
| Other                                                                                                     |   |                             | 2,652 |   |   |   | 1,768 |
| Total                                                                                                     |   | $                                | 11,987 |   |   | $ | 9,612 |

----

|                                   |   | Three      months ended March 31 |   |
|----------------------------------------|--------|----------------------------------|--------|
|                                   |   | Total      Revenues              |   |   | Net      Income |   |   | Return      onAverage      Equity(1) |   |   | Return      onAverage      Assets(1) |   |
|                                   |   | 2008                             |   |   | 2007 |   |   | 2008 |   |   | 2007 |   |   | 2008 |   |   | 2007 |   |   | 2008 |   |   | 2007 |   |
| Arizona      Region:                   |   |                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Arrowhead      Community Bank          |   | $                                | 1,732  |   |   | $ | 2,064 |   |   | $ | 29 |   |   | $ | 314 |   |   |   | 1.36 | % |   |   | 11.84 | % |   |   | 0.13 | % |   |   | 1.53 | % |
| Asian      Bank of Arizona             |   |                             | 455    |   |   |   | 387 |   |   |   | (189 | ) |   |   | (77 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Bank      of Tucson                    |   |                             | 3,550  |   |   |   | 4,028 |   |   |   | 1,218 |   |   |   | 1,158 |   |   |   | 27.53 | % |   |   | 28.12 | % |   |   | 2.64 | % |   |   | 2.55 | % |
| Camelback      Community Bank          |   |                             | 1,516  |   |   |   | 1,622 |   |   |   | 273 |   |   |   | 180 |   |   |   | 11.94 | % |   |   | 8.32 | % |   |   | 1.26 | % |   |   | 0.85 | % |
| Mesa      Bank                         |   |                             | 4,102  |   |   |   | 5,000 |   |   |   | 472 |   |   |   | 1,059 |   |   |   | 9.89 | % |   |   | 22.66 | % |   |   | 0.87 | % |   |   | 2.08 | % |
| Southern      Arizona Community Bank   |   |                             | 1,578  |   |   |   | 1,688 |   |   |   | 302 |   |   |   | 293 |   |   |   | 13.34 | % |   |   | 13.27 | % |   |   | 1.39 | % |   |   | 1.38 | % |
| Sunrise      Bank of Albuquerque       |   |                             | 1,342  |   |   |   | 1,385 |   |   |   | 57 |   |   |   | 74 |   |   |   | 3.16 | % |   |   | 4.75 | % |   |   | 0.31 | % |   |   | 0.49 | % |
| Sunrise      Bank of Arizona           |   |                             | 2,170  |   |   |   | 2,394 |   |   |   | 4 |   |   |   | 142 |   |   |   | 0.12 | % |   |   | 4.94 | % |   |   | 0.01 | % |   |   | 0.48 | % |
| Valley      First Community Bank       |   |                             | 1,341  |   |   |   | 1,367 |   |   |   | (55 | ) |   |   | 150 |   |   |   |   |   |   |   | 7.74 | % |   |   |   |   |   |   | 0.85 | % |
| Yuma      Community Bank               |   |                             | 1,411  |   |   |   | 1,493 |   |   |   | 208 |   |   |   | 239 |   |   |   | 10.66 | % |   |   | 12.52 | % |   |   | 1.08 | % |   |   | 1.32 | % |
| Arizona      Region Total              |   |                             | 19,197 |   |   |   | 21,428 |   |   |   | 2,319 |   |   |   | 3,532 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                   |   |                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| California      Region:                |   |                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Bank      of Escondido                 |   |                             | 1,373  |   |   |   | 1,428 |   |   |   | 76 |   |   |   | 157 |   |   |   | 2.12 | % |   |   | 4.54 | % |   |   | 0.32 | % |   |   | 0.77 | % |
| Bank      of Feather River             |   |                             | 286    |   |   |   |   |   |   |   | (117 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Bank      of San Francisco             |   |                             | 942    |   |   |   | 549 |   |   |   | 1 |   |   |   | (81 | ) |   |   | 0.04 | % |   |   |   |   |   |   | 0.01 | % |   |   |   |   |
| Bank      of Santa Barbara             |   |                             | 1,027  |   |   |   | 974 |   |   |   | (113 | ) |   |   | (81 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Napa      Community Bank               |   |                             | 2,035  |   |   |   | 2,238 |   |   |   | 146 |   |   |   | 348 |   |   |   | 4.15 | % |   |   | 11.19 | % |   |   | 0.48 | % |   |   | 1.28 | % |
| Point      Loma Community Bank         |   |                             | 960    |   |   |   | 901 |   |   |   | 70 |   |   |   | 6 |   |   |   | 3.91 | % |   |   | 0.33 | % |   |   | 0.51 | % |   |   | 0.05 | % |
| Sunrise      Bank of San Diego         |   |                             | 1,431  |   |   |   | 1,661 |   |   |   | 146 |   |   |   | 105 |   |   |   | 5.54 | % |   |   | 3.99 | % |   |   | 0.67 | % |   |   | 0.53 | % |
| Sunrise      Community Bank            |   |                             | 376    |   |   |   | 50 |   |   |   | (189 | ) |   |   | (428 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| California      Region Total           |   |                             | 8,430  |   |   |   | 7,801 |   |   |   | 20 |   |   |   | 26 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                   |   |                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Colorado      Region:                  |   |                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Fort      Collins Commerce Bank        |   |                             | 1,124  |   |   |   | 1,183 |   |   |   | 179 |   |   |   | 137 |   |   |   | 7.99 | % |   |   | 6.67 | % |   |   | 1.15 | % |   |   | 0.97 | % |
| Larimer      Bank of Commerce          |   |                             | 960    |   |   |   |   |   |   |   | 80 |   |   |   |   |   |   |   | 4.29 | % |   |   |   |   |   |   | 0.57 | % |   |   |   |   |
| Loveland      Bank of Commerce         |   |                             | 306    |   |   |   |   |   |   |   | (61 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Mountain      View Bank of Commerce(3) |   |                             | 94     |   |   |   |   |   |   |   | (472 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Colorado      Region Total             |   |                             | 2,484  |   |   |   | 1,183 |   |   |   | (274 | ) |   |   | 137 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                   |   |                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Great      Lakes Region:               |   |                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Ann      Arbor Commerce Bank           |   |                             | 6,199  |   |   |   | 6,182 |   |   |   | 1,019 |   |   |   | 839 |   |   |   | 14.35 | % |   |   | 13.35 | % |   |   | 1.14 | % |   |   | 1.07 | % |
| Bank      of Auburn Hills              |   |                             | 740    |   |   |   | 757 |   |   |   | (281 | ) |   |   | 11 |   |   |   |   |   |   |   | 0.61 | % |   |   |   |   |   |   | 0.14 | % |
| Bank      of Maumee                    |   |                             | 662    |   |   |   | 185 |   |   |   | (116 | ) |   |   | (344 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Bank      of Michigan                  |   |                             | 1,293  |   |   |   | 1,080 |   |   |   | 123 |   |   |   | (120 | ) |   |   | 7.52 | % |   |   |   |   |   |   | 0.72 | % |   |   |   |   |
| Brighton      Commerce Bank            |   |                             | 1,916  |   |   |   | 1,961 |   |   |   | 203 |   |   |   | 142 |   |   |   | 8.42 | % |   |   | 6.21 | % |   |   | 0.75 | % |   |   | 0.55 | % |
| Capitol      National Bank             |   |                             | 3,967  |   |   |   | 4,534 |   |   |   | 599 |   |   |   | 484 |   |   |   | 12.66 | % |   |   | 10.32 | % |   |   | 1.06 | % |   |   | 0.81 | % |
| Detroit      Commerce Bank             |   |                             | 1,938  |   |   |   | 2,317 |   |   |   | (948 | ) |   |   | 240 |   |   |   |   |   |   |   | 10.72 | % |   |   |   |   |   |   | 0.91 | % |
| Elkhart      Community Bank            |   |                             | 1,472  |   |   |   | 1,697 |   |   |   | 130 |   |   |   | 145 |   |   |   | 5.87 | % |   |   | 6.72 | % |   |   | 0.57 | % |   |   | 0.69 | % |
| Evansville      Commerce Bank          |   |                             | 1,005  |   |   |   | 423 |   |   |   | (28 | ) |   |   | (209 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Goshen      Community Bank             |   |                             | 1,368  |   |   |   | 1,487 |   |   |   | 103 |   |   |   | 140 |   |   |   | 5.28 | % |   |   | 7.68 | % |   |   | 0.52 | % |   |   | 0.74 | % |
| Grand      Haven Bank                  |   |                             | 2,170  |   |   |   | 2,401 |   |   |   | (65 | ) |   |   | 233 |   |   |   |   |   |   |   | 8.51 | % |   |   |   |   |   |   | 0.75 | % |
| Kent      Commerce Bank                |   |                             | 1,584  |   |   |   | 1,777 |   |   |   | (56 | ) |   |   | (18 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Macomb      Community Bank             |   |                             | 1,503  |   |   |   | 1,791 |   |   |   | (862 | ) |   |   | (257 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Muskegon      Commerce Bank            |   |                             | 1,636  |   |   |   | 1,823 |   |   |   | (446 | ) |   |   | (570 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Oakland      Commerce Bank             |   |                             | 1,667  |   |   |   | 2,471 |   |   |   | (538 | ) |   |   | (79 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Ohio      Commerce Bank                |   |                             | 628    |   |   |   | 211 |   |   |   | (42 | ) |   |   | (184 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Paragon      Bank & Trust          |   |                             | 2,066  |   |   |   | 1,789 |   |   |   | (166 | ) |   |   | 62 |   |   |   |   |   |   |   | 2.26 | % |   |   |   |   |   |   | 0.26 | % |
| Portage      Commerce Bank             |   |                             | 3,660  |   |   |   | 3,753 |   |   |   | 542 |   |   |   | 529 |   |   |   | 13.10 | % |   |   | 13.21 | % |   |   | 1.13 | % |   |   | 1.18 | % |
| Great      Lakes Region Total          |   |                             | 35,474 |   |   |   | 36,639 |   |   |   | (829 | ) |   |   | 1,044 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                   |   |                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Midwest      Region                    |   |                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Adams      Dairy Bank(2)               |   |                             | 282    |   |   |   |   |   |   |   | (459 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Bank      of Belleville                |   |                             | 850    |   |   |   | 421 |   |   |   | (22 | ) |   |   | (157 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Community      Bank of Lincoln         |   |                             | 296    |   |   |   |   |   |   |   | (181 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Summit      Bank of Kansas City        |   |                             | 760    |   |   |   | 512 |   |   |   | 21 |   |   |   | (129 | ) |   |   | 1.20 | % |   |   |   |   |   |   | 0.19 | % |   |   |   |   |
| Midwest      Region Total              |   |                             | 2,188  |   |   |   | 933 |   |   |   | (641 | ) |   |   | (286 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

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|                               |   | Three      months ended March 31 |   |
|------------------------------------|--------|----------------------------------|--------|
|                               |   | Total      Revenues              |   |   | Net      Income |   |   | Return      onAverage      Equity(1) |   |   | Return      onAverage      Assets(1) |   |
|                               |   | 2008                             |   |   | 2007 |   |   | 2008 |   |   | 2007 |   |   | 2008 |   |   | 2007 |   |   | 2008 |   |   | 2007 |   |
| Nevada      Region:                |   |                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 1st      Commerce Bank             |   | $                                | 568    |   |   | $ | 331 |   |   | $ | (97 | ) |   | $ | (116 | ) |   |   |   |   |   |   |   |   |   |   |   |   |
| Bank      of Las Vegas             |   |                             | 1,239  |   |   |   | 1,445 |   |   |   | 19 |   |   |   | 130 |   |   |   | 0.86 | % |   |   | 5.81 | % |   |   | 0.11 | % |   |   | 0.74 | % |
| Black      Mountain Community Bank |   |                             | 2,799  |   |   |   | 3,097 |   |   |   | 398 |   |   |   | 643 |   |   |   | 10.83 | % |   |   | 19.17 | % |   |   | 1.05 | % |   |   | 1.82 | % |
| Desert      Community Bank         |   |                             | 1,889  |   |   |   | 1,941 |   |   |   | 136 |   |   |   | 252 |   |   |   | 5.39 | % |   |   | 11.04 | % |   |   | 0.55 | % |   |   | 1.11 | % |
| Red      Rock Community Bank       |   |                             | 2,006  |   |   |   | 2,256 |   |   |   | 195 |   |   |   | 438 |   |   |   | 5.73 | % |   |   | 13.54 | % |   |   | 0.67 | % |   |   | 1.65 | % |
| Nevada      Region Total           |   |                             | 8,501  |   |   |   | 9,070 |   |   |   | 651 |   |   |   | 1,347 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                               |   |                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Northeast      Region:             |   |                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| USNY      Bank                     |   |                             | 292    |   |   |   |   |   |   |   | (215 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                               |   |                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Northwest      Region:             |   |                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Bank      of Bellevue              |   |                             | 750    |   |   |   | 707 |   |   |   | (94 | ) |   |   | (89 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Bank      of Everett               |   |                             | 491    |   |   |   | 444 |   |   |   | (201 | ) |   |   | (191 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Bank      of Tacoma                |   |                             | 476    |   |   |   | 184 |   |   |   | (187 | ) |   |   | (473 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| High      Desert Bank              |   |                             | 227    |   |   |   |   |   |   |   | (195 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Issaquah      Community Bank       |   |                             | 230    |   |   |   |   |   |   |   | (174 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Northwest      Region Total        |   |                             | 2,174  |   |   |   | 1,335 |   |   |   | (851 | ) |   |   | (753 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                               |   |                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Southeast      Region:             |   |                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Bank      of Valdosta              |   |                             | 872    |   |   |   | 469 |   |   |   | (12 | ) |   |   | (123 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Community      Bank of Rowan       |   |                             | 1,941  |   |   |   | 1,131 |   |   |   | 250 |   |   |   | (87 | ) |   |   | 10.42 | % |   |   |   |   |   |   | 0.87 | % |   |   |   |   |
| First      Carolina State Bank     |   |                             | 1,783  |   |   |   | 1,728 |   |   |   | 112 |   |   |   | 157 |   |   |   | 3.60 | % |   |   | 5.40 | % |   |   | 0.39 | % |   |   | 0.68 | % |
| Peoples      State Bank            |   |                             | 515    |   |   |   | 584 |   |   |   | 50 |   |   |   | 70 |   |   |   | 3.93 | % |   |   | 5.89 | % |   |   | 0.84 | % |   |   | 1.00 | % |
| Sunrise      Bank of Atlanta       |   |                             | 1,126  |   |   |   | 774 |   |   |   | (119 | ) |   |   | (64 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Southeast      Region Total        |   |                             | 6,237  |   |   |   | 4,686 |   |   |   | 281 |   |   |   | (47 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                               |   |                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Texas      Region:                 |   |                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Bank      of Fort Bend             |   |                             | 136    |   |   |   |   |   |   |   | (261 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Bank      of Las Colinas           |   |                             | 221    |   |   |   |   |   |   |   | (179 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Texas      Region Total            |   |                             | 357    |   |   |   |   |   |   |   | (440 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                               |   |                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other,      net                    |   |                             | 734    |   |   |   | 349 |   |   |   | 2,170 |   |   |   | 1,271 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                               |   |                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Consolidated      totals           |   | $                                | 86,068 |   |   | $ | 83,424 |   |   | $ | 2,191 |   |   | $ | 6,271 |   |   |   | 2.25 | % |   |   | 6.74 | % |   |   | 0.18 | % |   |   | 0.61 | % |

| (1) | Annualized      for periods presented.                                                                                                               |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------|
| (2) | Commenced      operations in January 2008 and is 51%-owned by Capitol Development Bancorp      Limited V,a      controlled subsidiary of Capitol.    |
| (3) | Commenced      operations in February 2008 and is 51%-owned by Capitol Development      Bancorp Limited VII,a      controlled subsidiary of Capitol. |

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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. There were no material changes      from the risk factors set forth in Part I, Item 1A, "Risk      Factors," of Capitol's Form 10-K for the year ended December 31,      2007, during the three months ended March 31, 2008.  Refer to that section      of Capitol's Form 10-K for disclosures regarding the risks and      uncertainties related to Capitol's business.  |
| 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.  | Submission      of Matters to a Vote of Security Holders. None.                                                                                                                                                                                                                                                                                                                                                   |
| Item      5.  | Other      Information. None.                                                                                                                                                                                                                                                                                                                                                                                     |
| Item      6.  | Exhibits:                                                                                                                                                                                                                                                                                                                                                                                                                   |

| (a)              | (b)                                                                                                                                              |
|------------------|--------------------------------------------------------------------------------------------------------------------------------------------------|
| Exhibit      No. | Description of      Exhibit                                                                                                                      |
| 31.1             | Certification      of Chief Executive Officer, Joseph D. Reid,pursuant      to Section 302 of the Sarbanes-Oxley Act of 2002.               |
| 31.2             | Certification      of Chief Financial Officer,Lee      W. Hendrickson, pursuant to Section 302 of      theSarbanes-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 Chief Financial Officer,Lee      W. Hendrickson, pursuant to Section 906 of      theSarbanes-Oxley      Act of 2002.  |

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| CAPITOL      BANCORP LTD.(Registrant)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| /s/ Joseph D.      Reid                                                                                                           Joseph      D. ReidChairman      and CEO(duly      authorized to sign on behalf of the   registrant)   |
| /s/ Lee W.      Hendrickson                                                                                                       Lee      W. HendricksonChief      Financial Officer                                                                   |

----

| 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 Chief Financial Officer, Lee W. Hendrickson, pursuant to Section 302      ofthe      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 Chief Financial Officer, Lee W. Hendrickson, pursuant to Section 906      ofthe      Sarbanes-Oxley Act of 2002.       |

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