----

----

| T      | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE             |
|--------|---------------------------------------------------------------------|
|   | SECURITIES EXCHANGE ACT OF 1934                                     |
|   | For the quarterly period ended September 30, 2010                   |
|   | 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                   |   |                              |
| Fourth Floor                             |   |                              |
| 200 N. Washington Square                 |   |                              |
| Lansing, Michigan                        |   | 48933                             |
| (Address of principal executive offices) |   | (Zip Code)                        |

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

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

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

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

| Class                      |   | Outstanding at October 31, 2010 |
|----------------------------|--------|---------------------------------|
| Common Stock, No par value |   | 21,622,856 shares               |

----

----

----

----

|  Item 1.       |  Financial Statements (unaudited):                                                                                | Page     |
|---------------------|------------------------------------------------------------------------------------------------------------------------|----------|
|                | Condensed consolidated balance sheets – September 30, 2010 and December 31, 2009.                                | 6        |
|                | Condensed consolidated statements of operations – Three months and nine months endedSeptember 30, 2010 and 2009. | 7        |
|                | Condensed consolidated statements of changes in equity – Nine months endedSeptember 30, 2010 and 2009.           | 8        |
|                | Condensed consolidated statements of cash flows – Nine months ended September 30,2010 and 2009.                  | 9        |
|                | Notes to condensed consolidated financial statements.                                                                  | 10       |
| Item 2.             | Management's Discussion and Analysis of Financial Condition and Results of Operations.                                 | 24       |
| Item 3.             | Quantitative and Qualitative Disclosures About Market Risk.                                                            | 48       |
| Item 4.             | Controls and Procedures.                                                                                               | 48       |
|  PART II.      |  OTHER INFORMATION                                                                                                |     |
|  Item 1.       |  Legal Proceedings.                                                                                               |  49 |
| Item 1A.            | Risk Factors.                                                                                                          | 49       |
| Item 2.             | Unregistered Sales of Equity Securities and Use of Proceeds.                                                           | 49       |
| Item 3.             | Defaults Upon Senior Securities.                                                                                       | 49       |
| Item 4.             | [Removed and Reserved.]                                                                                                | 49       |
| Item 5.             | Other Information.                                                                                                     | 49       |
| Item 6.             | Exhibits.                                                                                                              | 51       |
|  SIGNATURES    |                                                                                                                   |  52 |
|  EXHIBIT INDEX |                                                                                                                   |  53 |

----

| PART I, ITEM 1                                                                                                                                                                                                                                                                                                             |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                                                                                                                                                                                                       |   |   |   |   |   |   |
| CAPITOL BANCORP LIMITED                                                                                                                                                                                                                                                                                                    |   |
| Condensed Consolidated Balance Sheets                                                                                                                                                                                                                                                                                      |   |
| As of September 30, 2010 and December 31, 2009                                                                                                                                                                                                                                                                             |   |
| (in $1,000s, except share and per-share data)                                                                                                                                                                                                                                                                              |   |
|                                                                                                                                                                                                                                                                                                                       |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                       |   | (Unaudited) |   |   |   |
|                                                                                                                                                                                                                                                                                                                       |   | September 30, |   | December 31, |   |
|                                                                                                                                                                                                                                                                                                                       |   | 2010 |   | 2009 |   |
| ASSETS                                                                                                                                                                                                                                                                                                                     |   |   |   |   |   |   |
| Cash and due from banks                                                                                                                                                                                                                                                                                                    |   |   | $ | 86,917 |   | $ | 69,190 |   |
| Money market and interest-bearing deposits                                                                                                                                                                                                                                                                                 |   |   |   | 725,141 |   |   | 657,846 |   |
| Federal funds sold                                                                                                                                                                                                                                                                                                         |   |   |   | 1,455 |   |   | 4,863 |   |
|                          Cash and cash equivalents                                                                                                                                            |   |   | 813,513 |   |   | 731,899 |   |
| Loans held for sale                                                                                                                                                                                                                                                                                                        |   |   |   | 7,736 |   |   | 11,119 |   |
| Investment securities -- Note C:                                                                                                                                                                                                                                                                                           |   |   |   |   |   |   |   |   |
|    Available for sale, carried at fair value                                                                                                                                                                                                                                                                |   |   |   | 27,253 |   |   | 39,776 |   |
|    Held for long-term investment, carried at                                                                                                                                                                                                                                                                |   |   |   |   |   |   |   |   |
|      amortized cost which approximates fair value                                                                                                                                                                                                                                                 |   |   | 3,422 |   |   | 5,791 |   |
|                          Total investment securities                                                                                                                                          |   |   | 30,675 |   |   | 45,567 |   |
| Federal Home Loan Bank and Federal Reserve                                                                                                                                                                                                                                                                                 |   |   |   |   |   |   |   |
|   Bank stock (carried on the basis of cost) -- Note C                                                                                                                                                                                                                                                            |   |   | 22,020 |   |   | 21,646 |   |
| Portfolio loans:                                                                                                                                                                                                                                                                                                           |   |   |   |   |   |   |   |   |
|    Loans secured by real estate:                                                                                                                                                                                                                                                                            |   |   |   |   |   |   |   |   |
|     Commercial                                                                                                                                                                                                                                                                                         |   |   |   | 1,699,958 |   |   | 1,812,387 |   |
|     Residential (including multi-family)                                                                                                                                                                                                                                                               |   |   |   | 648,507 |   |   | 679,847 |   |
|     Construction, land development and other land                                                                                                                                                                                                                                                      |   |   | 357,587 |   |   | 444,420 |   |
|                          Total loans secured by real estate                                                                                                                                   |   |   | 2,706,052 |   |   | 2,936,654 |   |
|    Commercial and other business-purpose loans                                                                                                                                                                                                                                                              |   |   | 488,300 |   |   | 580,524 |   |
|    Consumer                                                                                                                                                                                                                                                                                                 |   |   |   | 32,308 |   |   | 37,336 |   |
|    Other                                                                                                                                                                                                                                                                                                    |   |   |   | 25,282 |   |   | 24,486 |   |
|                          Total portfolio loans                                                                                                                                                |   |   | 3,251,942 |   |   | 3,579,000 |   |
|    Less allowance for loan losses                                                                                                                                                                                                                                                                           |   |   |   | (148,777 |   |   | (136,184 | ) |
|                          Net portfolio loans                                                                                                                                                  |   |   | 3,103,165 |   |   | 3,442,816 |   |
| Premises and equipment                                                                                                                                                                                                                                                                                                     |   |   |   | 42,281 |   |   | 44,779 |   |
| Accrued interest income                                                                                                                                                                                                                                                                                                    |   |   |   | 11,582 |   |   | 13,893 |   |
| Goodwill                                                                                                                                                                                                                                                                                                                   |   |   |   | 66,105 |   |   | 66,126 |   |
| Other real estate owned                                                                                                                                                                                                                                                                                                    |   |   |   | 108,424 |   |   | 111,102 |   |
| Recoverable income taxes                                                                                                                                                                                                                                                                                                   |   |   |   | 1,825 |   |   | 43,763 |   |
| Other assets                                                                                                                                                                                                                                                                                                               |   |   |   | 30,262 |   |   | 39,099 |   |
| Assets of discontinued operations -- Note D                                                                                                                                                                                                                                                                                |   |   |   | -- |   |   | 560,131 |   |
|                                                                                                                                                                                                                                                                                                                       |   |   |   |   |   |   |   |   |
|             TOTAL ASSETS                                                                                                                                                                                                                                       |   |   | $ | 4,237,588 |   | $ | 5,131,940 |   |
|                                                                                                                                                                                                                                                                                                                       |   |   |   |   |   |   |   |   |
| LIABILITIES AND EQUITY                                                                                                                                                                                                                                                                                                     |   |   |   |   |   |   |   |   |
| LIABILITIES:                                                                                                                                                                                                                                                                                                               |   |   |   |   |   |   |   |   |
| Deposits:                                                                                                                                                                                                                                                                                                                  |   |   |   |   |   |   |   |   |
|    Noninterest-bearing                                                                                                                                                                                                                                                                                      |   |   | $ | 648,416 |   | $ | 577,858 |   |
|    Interest-bearing                                                                                                                                                                                                                                                                                         |   |   |   | 3,148,132 |   |   | 3,364,521 |   |
|                          Total deposits                                                                                                                                                       |   |   | 3,796,548 |   |   | 3,942,379 |   |
| Debt obligations:                                                                                                                                                                                                                                                                                                          |   |   |   |   |   |   |   |   |
|    Notes payable and other borrowings                                                                                                                                                                                                                                                                       |   |   |   | 144,282 |   |   | 243,747 |   |
|    Subordinated debentures -- Note H                                                                                                                                                                                                                                                                        |   |   | 167,550 |   |   | 167,441 |   |
|                          Total debt obligations                                                                                                                                               |   |   | 311,832 |   |   | 411,188 |   |
| Accrued interest on deposits and other liabilities                                                                                                                                                                                                                                                                         |   |   | 51,524 |   |   | 43,162 |   |
| Liabilities of discontinued operations -- Note D                                                                                                                                                                                                                                                                           |   |   | -- |   |   | 501,605 |   |
|                          Total liabilities                                                                                                                                                    |   |   | 4,159,904 |   |   | 4,898,334 |   |
|                                                                                                                                                                                                                                                                                                                       |   |   |   |   |   |   |   |   |
| EQUITY:                                                                                                                                                                                                                                                                                                                    |   |   |   |   |   |   |   |   |
| Capitol Bancorp Limited stockholders' equity -- Notes F and N:                                                                                                                                                                                                                                                             |   |   |   |   |   |   |   |
|   Preferred stock (Series A), 700,000 shares authorized                                                                                                                                                                                                                                                          |   |   |   |   |   |   |   |
|       ($100 per-share liquidation preference); 50,980 shares                                                                                                                                                                                                                                 |   |   |   |   |   |   |   |
|       issued and outstanding in 2010 (none in 2009) -- Note I                                                                                                                                                                                                                                |   |   | 5,098 |   |   | -- |   |
|   Preferred stock (for potential future issuance),                                                                                                                                                                                                                                                               |   |   |   |   |   |   |   |
|     19,300,000 shares authorized (none issued and outstanding)                                                                                                                                                                                                                                         |   |   | -- |   |   | -- |   |
|   Common stock, no par value, 50,000,000 shares authorized;                                                                                                                                                                                                                                                      |   |   |   |   |   |   |   |
|      issued and outstanding: 2010 - 21,623,056 shares                                                                                                                                                                                                                                        |   |   |   |   |   |   |   |
|                                                   2009 - 17,545,631 shares |   |   | 288,031 |   |   | 277,707 |   |
|   Retained-earnings deficit                                                                                                                                                                                                                                                                                      |   |   |   | (245,397 |   |   | (115,751 | ) |
|   Undistributed common stock held by employee-benefit trust                                                                                                                                                                                                                                                      |   |   | (558 |   |   | (558 | ) |
|   Fair value adjustment (net of tax effect) for investment securities                                                                                                                                                                                                                                            |   |   |   |   |   |   |   |
|      available for sale (accumulated other comprehensive income)                                                                                                                                                                                                                                  |   |   | 198 |   |   | (63 | ) |
|           Total Capitol Bancorp Limited stockholders' equity                                                                                                                                                                                                             |   |   | 47,372 |   |   | 161,335 |   |
| Noncontrolling interests in consolidated subsidiaries                                                                                                                                                                                                                                                                      |   |   | 30,312 |   |   | 72,271 |   |
|                          Total equity                                                                                                                                                         |   |   | 77,684 |   |   | 233,606 |   |
|                                                                                                                                                                                                                                                                                                                       |   |   |   |   |   |   |   |   |
|             TOTAL LIABILITIES AND EQUITY                                                                                                                                                                                                                       |   | $ | 4,237,588 |   | $ | 5,131,940 |   |
|                                                                                                                                                                                                                                                                                                                       |   |   |   |   |   |   |   |   |
| See notes to condensed consolidated financial statements.                                                                                                                                                                                                                                                                  |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                       |   |   |   |   |   |   |   |   |

----

| CAPITOL BANCORP LIMITED                                                                                                                                                                                                                |               |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------|
| Condensed Consolidated Statements of Operations (Unaudited)                                                                                                                                                                            |               |
| For the Three and Nine Months Ended September 30, 2010 and 2009                                                                                                                                                                        |               |
| (in $1,000s, except per share data)                                                                                                                                                                                                    |               |
|                                                                                                                                                                                                                                   |               |   |   |   |   |   |
|                                                                                                                                                                                                                                   | Three Month Period |   |   | Nine Month Period |   |
|                                                                                                                                                                                                                                   | 2010               |   |   | 2009 |   |   | 2010 |   |   | 2009 |   |
| Interest income:                                                                                                                                                                                                                       |               |   |   |   |   |   |   |   |   |   |   |   |
|   Portfolio loans (including fees)                                                                                                                                                                                           |               | $ | 47,527 |   |   | $ | 55,640 |   |   | $ | 144,781 |   |   | $ | 170,792 |   |
|   Loans held for sale                                                                                                                                                                                                        |               |   | 72 |   |   |   | 136 |   |   |   | 194 |   |   |   | 515 |   |
|   Taxable investment securities                                                                                                                                                                                              |               |   | 126 |   |   |   | 89 |   |   |   | 437 |   |   |   | 262 |   |
|   Federal funds sold                                                                                                                                                                                                         |               |   | 2 |   |   |   | 16 |   |   |   | 10 |   |   |   | 53 |   |
|   Other                                                                                                                                                                                                                      |               |   | 682 |   |   |   | 439 |   |   |   | 1,856 |   |   |   | 1,144 |   |
| Total interest income                                                                                                                                                                                                                  |               |   | 48,409 |   |   |   | 56,320 |   |   |   | 147,278 |   |   |   | 172,766 |   |
| Interest expense:                                                                                                                                                                                                                      |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Deposits                                                                                                                                                                                                                   |               |   | 13,027 |   |   |   | 18,585 |   |   |   | 41,648 |   |   |   | 60,640 |   |
|   Debt obligations and other                                                                                                                                                                                                 |               |   | 4,098 |   |   |   | 5,756 |   |   |   | 12,931 |   |   |   | 17,317 |   |
| Total interest expense                                                                                                                                                                                                                 |               |   | 17,125 |   |   |   | 24,341 |   |   |   | 54,579 |   |   |   | 77,957 |   |
| Net interest income                                                                                                                                                                                                                    |               |   | 31,284 |   |   |   | 31,979 |   |   |   | 92,699 |   |   |   | 94,809 |   |
| Provision for loan losses                                                                                                                                                                                                              |               |   | 34,160 |   |   |   | 44,482 |   |   |   | 126,918 |   |   |   | 109,402 |   |
| Net interest income deficiency after                                                                                                                                                                                                   |               |   |   |   |   |   |   |   |   |
|                                    provision for loan losses |               |   | (2,876 | ) |   |   | (12,503 | ) |   |   | (34,219 | ) |   |   | (14,593 | ) |
| Noninterest income:                                                                                                                                                                                                                    |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Service charges on deposit accounts                                                                                                                                                                                        |               |   | 1,071 |   |   |   | 1,339 |   |   |   | 3,225 |   |   |   | 3,922 |   |
|   Trust and wealth-management revenue                                                                                                                                                                                        |               |   | 960 |   |   |   | 1,288 |   |   |   | 3,282 |   |   |   | 3,811 |   |
|   Fees from origination of non-portfolio residential                                                                                                                                                                              |               |   |   |   |   |   |   |   |   |   |   |   |   |
|      mortgage loans                                                                                                                                                                                           |               |   | 617 |   |   |   | 624 |   |   |   | 1,427 |   |   |   | 2,402 |   |
|   Gain on sale of government-guaranteed loans                                                                                                                                                                                |               |   | 901 |   |   |   | 643 |   |   |   | 1,508 |   |   |   | 919 |   |
|   Realized gain (loss) on sale of investment securities                                                                                                                                                                           |               |   |   |   |   |   |   |   |   |   |   |   |   |
|      available for sale                                                                                                                                                                                       |               |   | (4 | ) |   |   | 41 |   |   |   | 10 |   |   |   | 42 |   |
|   Gain on debt extinguishment                                                                                                                                                                                                |               |   |   |   |   |   |   |   |   |   | 1,255 |   |   |   |   |   |
|   Other                                                                                                                                                                                                                      |               |   | 3,353 |   |   |   | 939 |   |   |   | 7,951 |   |   |   | 3,959 |   |
| Total noninterest income                                                                                                                                                                                                               |               |   | 6,898 |   |   |   | 4,874 |   |   |   | 18,658 |   |   |   | 15,055 |   |
| Noninterest expense:                                                                                                                                                                                                                   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Salaries and employee benefits                                                                                                                                                                                             |               |   | 18,989 |   |   |   | 20,705 |   |   |   | 57,871 |   |   |   | 68,343 |   |
|   Occupancy                                                                                                                                                                                                                  |               |   | 4,103 |   |   |   | 4,187 |   |   |   | 12,592 |   |   |   | 12,613 |   |
|   Equipment rent, depreciation and maintenance                                                                                                                                                                               |               |   | 2,369 |   |   |   | 2,765 |   |   |   | 7,987 |   |   |   | 8,806 |   |
|   Costs associated with foreclosed properties and other                                                                                                                                                                      |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|      real estate owned                                                                                                                                                                                        |               |   | 14,645 |   |   |   | 9,577 |   |   |   | 35,386 |   |   |   | 17,916 |   |
|   FDIC insurance premiums and other regulatory fees                                                                                                                                                                          |               |   | 3,733 |   |   |   | 3,455 |   |   |   | 12,136 |   |   |   | 9,964 |   |
|   Other                                                                                                                                                                                                                      |               |   | 7,918 |   |   |   | 8,068 |   |   |   | 23,177 |   |   |   | 19,570 |   |
| Total noninterest expense                                                                                                                                                                                                              |               |   | 51,757 |   |   |   | 48,757 |   |   |   | 149,149 |   |   |   | 137,212 |   |
| Loss before income taxes                                                                                                                                                                                                               |               |   | (47,735 | ) |   |   | (56,386 | ) |   |   | (164,710 | ) |   |   | (136,750 | ) |
| Income taxes (benefit)                                                                                                                                                                                                                 |               |   | 56 |   |   |   | 66,436 |   |   |   | (4,258 | ) |   |   | 37,268 |   |
| Loss from continuing operations                                                                                                                                                                                                        |               |   | (47,791 | ) |   |   | (122,822 | ) |   |   | (160,452 | ) |   |   | (174,018 | ) |
| Discontinued operations -- Note D:                                                                                                                                                                                                     |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Income (loss) from operations of bank subsidiaries sold                                                                                                                                                                    |               |   | 268 |   |   |   | (206 | ) |   |   | 854 |   |   |   | 467 |   |
|   Gain on sale of bank subsidiaries                                                                                                                                                                                          |               |   | 3,296 |   |   |   | 1,187 |   |   |   | 13,379 |   |   |   | 1,187 |   |
|   Less income tax expense                                                                                                                                                                                                    |               |   | 1,292 |   |   |   | 6,274 |   |   |   | 5,159 |   |   |   | 6,618 |   |
| Income (loss) from discontinued operations                                                                                                                                                                                             |               |   | 2,272 |   |   |   | (5,293 | ) |   |   | 9,074 |   |   |   | (4,964 | ) |
| NET LOSS                                                                                                                                                                                                                               |               |   | (45,519 | ) |   |   | (128,115 | ) |   |   | (151,378 | ) |   |   | (178,982 | ) |
| Net losses attributable to noncontrolling interests in                                                                                                                                                                                 |               |   |   |   |   |   |   |   |   |   |   |   |   |
|   consolidated subsidiaries                                                                                                                                                                                                  |               |   | 4,758 |   |   |   | 45,426 |   |   |   | 21,732 |   |   |   | 59,315 |   |
|                                                                                                                                                                                                                                   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|       NET LOSS ATTRIBUTABLE TO CAPITOL                                                                                                                                                                   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|          BANCORP LIMITED                                                                                                                                                                       |               | $ | (40,761 | ) |   | $ | (82,689 | ) |   | $ | (129,646 | ) |   | $ | (119,667 | ) |
|                                                                                                                                                                                                                                   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|       NET LOSS PER COMMON SHARE ATTRIBUTABLE                                                                                                                                                                  |               |   |   |   |   |   |   |   |   |   |   |   |   |
|          TO CAPITOL BANCORP LIMITED -- Note G                                                                                                                                                  |               | $ | (1.91 | ) |   | $ | (4.75 | ) |   | $ | (6.54 | ) |   | $ | (6.93 | ) |
|                                                                                                                                                                                                                                   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| See notes to condensed consolidated financial statements.                                                                                                                                                                              |               |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

----

| CAPITOL BANCORP LTD.                                                                                                                             |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| Condensed Consolidated Statements of Cash Flows (Unaudited)                                                                                      |   |
| For the Nine Months Ended September 30, 2010 and 2009                                                                                            |   |
| (in $1,000s)                                                                                                                                     |   |
|                                                                                                                                             |   |   |   |   |   |   |
|                                                                                                                                             |   | 2010 |   |   | 2009 |   |
|                                                                                                                                             |   |   |   |   |   |   |
| OPERATING ACTIVITIES                                                                                                                             |   |   |   |   |   |   |
|   Net loss                                                                                                                             |   | $ | (151,378 | ) |   | $ | (178,982 | ) |
|   Adjustments to reconcile net loss to net cash provided                                                                               |   |   |   |   |   |   |   |   |
|     by operating activities (including discontinued operations):                                                             |   |   |   |   |   |   |   |   |
|       Provision for loan losses                                                                                    |   |   | 129,259 |   |   |   | 114,909 |   |
|       Depreciation of premises and equipment                                                                       |   |   | 6,305 |   |   |   | 7,841 |   |
|       Amortization of intangibles                                                                                  |   |   | 169 |   |   |   | 2,486 |   |
|       Net amortization (accretion) of investment security premiums (discounts)                                     |   |   | 281 |   |   |   | (38 | ) |
|       Loss on sale of premises and equipment                                                                       |   |   | 258 |   |   |   | 107 |   |
|       Gain on sale of government-guaranteed loans                                                                  |   |   | (1,869 | ) |   |   | (1,887 | ) |
|       Gain on sale of bank subsidiaries                                                                            |   |   | (13,379 | ) |   |   | (1,187 | ) |
|       Gain on debt extinguishment                                                                                  |   |   | (1,255 | ) |   |   | -- |   |
|       Realized gain on sale of investment securities available for sale                                            |   |   | (10 | ) |   |   | (42 | ) |
|       Loss on sale of other real estate owned                                                                      |   |   | 1,744 |   |   |   | 1,007 |   |
|       Write-down of other real estate owned                                                                        |   |   | 25,804 |   |   |   | 13,002 |   |
|       Amortization of issuance costs of subordinated debentures                                                    |   |   | 109 |   |   |   | 109 |   |
|       Share-based compensation expense                                                                             |   |   | 435 |   |   |   | 719 |   |
|       Deferred income tax credit                                                                                   |   |   | (47,933 | ) |   |   | (48,907 | ) |
|       Valuation allowance for deferred income tax assets                                                           |   |   | 49,393 |   |   |   | 55,992 |   |
|   Originations and purchases of loans held for sale                                                                                    |   |   | (89,100 | ) |   |   | (261,950 | ) |
|   Proceeds from sales of loans held for sale                                                                                           |   |   | 91,994 |   |   |   | 257,552 |   |
|   Decrease in accrued interest income and other assets                                                                                 |   |   | 62,201 |   |   |   | 59,940 |   |
|   Increase in accrued interest expense on deposits and other liabilities                                                               |   |   | 9,086 |   |   |   | 2,751 |   |
|                                                                                                                                             |   |   |   |   |   |   |   |   |
|                 NET CASH PROVIDED BY OPERATING ACTIVITIES        |   |   | 72,114 |   |   |   | 23,422 |   |
|                                                                                                                                             |   |   |   |   |   |   |   |   |
| INVESTING ACTIVITIES                                                                                                                             |   |   |   |   |   |   |   |   |
|   Cash equivalents of acquired bank affiliate                                                                                          |   |   | 18,949 |   |   |   | -- |   |
|   Proceeds from sales of investment securities available for sale                                                                      |   |   | 22,075 |   |   |   | 916 |   |
|   Proceeds from calls, prepayments and maturities of investment                                                                        |   |   |   |   |   |   |   |   |
|      securities                                                                                                         |   |   | 14,935 |   |   |   | 14,529 |   |
|   Purchases of investment securities                                                                                                   |   |   | (22,298 | ) |   |   | (32,111 | ) |
|   Purchase of Federal Home Loan Bank stock                                                                                             |   |   | (1,411 | ) |   |   | (1,672 | ) |
|   Redemption of Federal Home Loan Bank stock by issuer                                                                                 |   |   | 1,169 |   |   |   | 637 |   |
|   Net decrease in portfolio loans                                                                                                      |   |   | 130,227 |   |   |   | 105,141 |   |
|   Proceeds from sales of government-guaranteed loans                                                                                   |   |   | 15,192 |   |   |   | 25,500 |   |
|   Proceeds from sales of premises and equipment                                                                                        |   |   | 3,742 |   |   |   | 1,974 |   |
|   Purchases of premises and equipment                                                                                                  |   |   | (7,420 | ) |   |   | (3,655 | ) |
|   Proceeds from sales of bank subsidiaries                                                                                             |   |   | 33,084 |   |   |   | 9,506 |   |
|   Proceeds from sales of other real estate owned                                                                                       |   |   | 35,590 |   |   |   | 11,182 |   |
|                                                                                                                                             |   |   |   |   |   |   |   |   |
|                 NET CASH PROVIDED BY INVESTING ACTIVITIES        |   |   | 243,834 |   |   |   | 131,947 |   |
|                                                                                                                                             |   |   |   |   |   |   |   |   |
| FINANCING ACTIVITIES                                                                                                                             |   |   |   |   |   |   |   |   |
|   Net increase in demand deposits, NOW accounts and savings accounts                                                                   |   |   | 76,222 |   |   |   | 295,852 |   |
|   Net decrease in certificates of deposit                                                                                              |   |   | (187,619 | ) |   |   | (27,992 | ) |
|   Net borrowings from (payments on) debt obligations                                                                                   |   |   | (1,548 | ) |   |   | 953 |   |
|   Proceeds from Federal Home Loan Bank borrowings                                                                                      |   |   | 541,480 |   |   |   | 2,768,830 |   |
|   Payments on Federal Home Loan Bank borrowings                                                                                        |   |   | (649,067 | ) |   |   | (2,876,522 | ) |
|   Resources provided by noncontrolling interests                                                                                       |   |   | -- |   |   |   | 134 |   |
|   Net proceeds from issuance of common stock                                                                                           |   |   | 6,870 |   |   |   | -- |   |
|   Tax effect of share-based payments                                                                                                   |   |   | (293 | ) |   |   | (169 | ) |
|   Cash dividends paid                                                                                                                  |   |   | -- |   |   |   | (864 | ) |
|                                                                                                                                             |   |   |   |   |   |   |   |   |
|                 NET CASH PROVIDED (USED) BY FINANCING ACTIVITIES |   |   | (213,955 | ) |   |   | 160,222 |   |
|                                                                                                                                             |   |   |   |   |   |   |   |   |
|                 INCREASE IN CASH AND CASH EQUIVALENTS            |   |   | 101,993 |   |   |   | 315,591 |   |
|                                                                                                                                             |   |   |   |   |   |   |   |   |
| Change in cash and cash equivalents of discontinued operations                                                                                   |   |   | (20,379 | ) |   |   | (10,913 | ) |
|                                                                                                                                             |   |   |   |   |   |   |   |   |
| Cash and cash equivalents at beginning of period                                                                                                 |   |   | 731,899 |   |   |   | 519,436 |   |
|                                                                                                                                             |   |   |   |   |   |   |   |   |
|                 CASH AND CASH EQUIVALENTS AT END OF PERIOD       |   | $ | 813,513 |   |   | $ | 824,114 |   |
|                                                                                                                                             |   |   |   |   |   |   |   |   |
| Supplemental disclosures:                                                                                                                        |   |   |   |   |   |   |   |   |
|   Cash paid during the period for interest on deposits and debt obligations                                                            |   | $ | 58,451 |   |   | $ | 88,356 |   |
|   Transfers of loans to other real estate owned                                                                                        |   |   | 60,239 |   |   |   | 80,991 |   |
|   Surrender of common stock to facilitate exercise of stock options                                                                    |   |   |   |   |   |   |   |   |
|      and vesting of restricted stock                                                                                    |   |   | 13 |   |   |   | 23 |   |
|                                                                                                                                             |   |   |   |   |   |   |   |   |
| See notes to condensed consolidated financial statements.                                                                                        |   |   |   |   |   |   |   |   |
|                                                                                                                                             |   |   |   |   |   |   |   |   |

----

----

----

|                                   |   | September 30, 2010 |      |   | December 31, 2009(1) |
|----------------------------------------|--------|--------------------|-----------|--------|----------------------|
|                                   |   | AmortizedCost      |      |   | EstimatedFairValue   |   |   | AmortizedCost |   |   | EstimatedFairValue |
| Available for sale:                    |   |               |      |   |                 |   |   |   |   |   |   |
| United States treasury                 |   | $                  | 504       |   |                 | $ | 508 |   |   | $ | 1,500 |   |   | $ | 1,500 |
| United States government agency        |   |               | 21,381    |   |                 |   | 21,448 |   |   |   | 12,956 |   |   |   | 12,939 |
| Mortgage-backed                        |   |               | 4,656     |   |                 |   | 4,876 |   |   |   | 24,690 |   |   |   | 24,598 |
| Municipalities                         |   |               | 411       |   |                 |   | 421 |   |   |   | 727 |   |   |   | 739 |
|                                   |   |               | 26,952    |   |                 |   | 27,253 |   |   |   | 39,873 |   |   |   | 39,776 |
| Held for long-term investment:         |   |               |      |   |                 |   |   |   |   |   |   |   |   |   |   |
| Capitol Development BancorpLimited III |   |               |  484 |   |                 |   |  484 |   |   |   |  672 |   |   |   |  672 |
| Corporate                              |   |               | 2,789     |   |                 |   | 2,789 |   |   |   | 5,119 |   |   |   | 5,119 |
| Other                                  |   |               | 149       |   |                 |   | 149 |   |   |   |   |   |   |   |   |
|                                   |   |               | 3,422     |   |                 |   | 3,422 |   |   |   | 5,791 |   |   |   | 5,791 |
|                                   |   |               |      |   |                 |   |   |   |   |   |   |   |   |   |   |
|                                   |   | $                  | 30,374    |   |                 | $ | 30,675 |   |   | $ | 45,664 |   |   | $ | 45,567 |

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

|                            |   | September 30, 2010 |   |   | December 31, 2009(1) |
|---------------------------------|--------|--------------------|--------|--------|----------------------|
|                            |   | Gains              |   |   | Losses               |   |   | Gains |   |   | Losses |
|                            |   |               |   |   |                 |   |   |   |   |   |   |
| United States treasury          |   | $                  | 4      |   |                 | $ | -- |   |   |   |   |   |   |
| United States government agency |   |               | 67     |   |                 |   |   |   |   | $ | 5 |   |   | $ | 22 |
| Mortgage-backed                 |   |               | 219    |   |                 |   |   |   |   |   | 122 |   |   |   | 214 |
| Municipalities                  |   |               | 11     |   |                 |   |   |   |   |   | 12 |   |   |   | -- |
|                            |   |               |   |   |                 |   |   |   |   |   |   |   |   |   |   |
|                            |   | $                  | 301    |   |                 | $ | -- |   |   | $ | 139 |   |   | $ | 236 |

| (1)   |  Excludes gross unrealized gains of $2,000 related to operations discontinued in 2010. |
|-----------------|---------------------------------------------------------------------------------------------|

----

|                            |   | UnrealizedLoss |   |   | CarryingValue |
|---------------------------------|--------|----------------|--------|--------|---------------|
|                            |   |           |   |   |          |
| United States government agency |   | $              | 22     |   |          | $ | 8,979 |
| Mortgage-backed                 |   |           | 214    |   |          |   | 19,879 |
|                            |   |           |   |   |          |   |   |
|                            |   | $              | 236    |   |          | $ | 28,858 |

|                                |   | AmortizedCost |   |   | EstimatedFair Value |
|-------------------------------------|--------|---------------|--------|--------|---------------------|
|                                |   |          |   |   |                |
| Due in one year or less             |   | $             | 5,136  |   |                | $ | 5,138 |
| After one year, through five years  |   |          | 16,548 |   |                |   | 16,615 |
| After five years, through ten years |   |          | 784    |   |                |   | 819 |
| After ten years                     |   |          | 4,484  |   |                |   | 4,681 |
| Securities held for long-term       |   |          |   |   |                |   |   |
| investment without stated           |   |          |   |   |                |   |   |
| maturities                          |   |          | 3,422  |   |                |   | 3,422 |
|                                |   |          |   |   |                |   |   |
|                                |   | $             | 30,374 |   |                | $ | 30,675 |

|                         |               |   | Sale     |   |   |        |   |
|------------------------------|--------------------|--------|----------|--------|--------|-------------|--------|
|                         | Date Sold          |   | Proceeds |   |   | Gain (Loss) |   |
| Bank of Belleville(1)        | April 27, 2010     |   | $        | 4,990  |   |        | $      | 1,233 |   |
| Napa Community Bank(1)(3)    | April 30, 2010     |   |     | 21,574 |   |        |   | 7,372 |   |
| Ohio Commerce Bank(2)        | June 30, 2010      |   |     | 6,520  |   |        |   | 1,478 |   |
| Community Bank of Lincoln(2) | July 30, 2010      |   |     | 3,750  |   |        |   | 1,268 |   |
| USNY Bank(2)                 | August 20, 2010    |   |     | 2,700  |   |        |   | (271 | ) |
| Adams Dairy Bank(2)          | August 30, 2010    |   |     | 4,335  |   |        |   | 559 |   |
| Bank of San Francisco(1)     | September 27, 2010 |   |     | 6,604  |   |        |   | 1,740 |   |
|                         |               |   |     |   |   |        |   |   |   |
|                         |               |   | $        | 50,473 |   |        | $      | 13,379 |   |

----

|                                |   | Three Months EndedSeptember 30 |   |   | Nine Months EndedSeptember 30 |   |
|-------------------------------------|--------|--------------------------------|--------|--------|-------------------------------|--------|
|                                |   | 2010                           |   |   | 2009                          |   |   | 2010 |   |   | 2009 |   |
|                                |   |                           |   |   |                          |   |   |   |   |   |   |   |
| Interest income                     |   | $                              | 2,577  |   |                          | $      | 11,025 |   |   | $ | 14,629 |   |   | $ | 32,767 |   |
| Interest expense                    |   |                           | 479    |   |                          |   | 2,952 |   |   |   | 3,119 |   |   |   | 9,485 |   |
| Net interest income                 |   |                           | 2,098  |   |                          |   | 8,073 |   |   |   | 11,510 |   |   |   | 23,282 |   |
| Provision for loan losses           |   |                           | 235    |   |                          |   | 2,853 |   |   |   | 2,341 |   |   |   | 5,507 |   |
| Net interest income after provision |   |                           |   |   |                          |   |   |   |   |   |   |   |   |   |   |   |
| for loan losses                     |   |                           | 1,863  |   |                          |   | 5,220 |   |   |   | 9,169 |   |   |   | 17,775 |   |
| Noninterest income                  |   |                           | 148    |   |                          |   | 1,101 |   |   |   | 1,319 |   |   |   | 2,871 |   |
| Gain on sale of bank subsidiaries   |   |                           | 3,296  |   |                          |   | 1,187 |   |   |   | 13,379 |   |   |   | 1,187 |   |
| Noninterest expense                 |   |                           | 1,743  |   |                          |   | 6,527 |   |   |   | 9,634 |   |   |   | 20,179 |   |
| Income before income taxes          |   |                           | 3,564  |   |                          |   | 981 |   |   |   | 14,233 |   |   |   | 1,654 |   |
| Less income tax expense             |   |                           | 1,292  |   |                          |   | 6,274 |   |   |   | 5,159 |   |   |   | 6,618 |   |
| Net income (loss) from discontinued |   |                           |   |   |                          |   |   |   |   |   |   |   |   |   |   |   |
| operations                          |   |                           | 2,272  |   |                          |   | (5,293 | ) |   |   | 9,074 |   |   |   | (4,964 | ) |
| Net loss (income) attributable to   |   |                           |   |   |                          |   |   |   |   |   |   |   |   |   |   |   |
| noncontrolling interests in         |   |                           |   |   |                          |   |   |   |   |   |   |   |   |   |   |   |
| consolidated subsidiaries           |   |                           | (53    | )      |                          |   | 5,304 |   |   |   | (183 | ) |   |   | 6,081 |   |
| Net income from discontinued        |   |                           |   |   |                          |   |   |   |   |   |   |   |   |   |   |   |
| operations attributable to Capitol  |   |                           |   |   |                          |   |   |   |   |   |   |   |   |   |   |   |
| Bancorp Limited                     |   | $                              | 2,219  |   |                          | $      | 11 |   |   | $ | 8,891 |   |   | $ | 1,117 |   |
| Net income from discontinued        |   |                           |   |   |                          |   |   |   |   |   |   |   |   |   |   |   |
| operations per common share         |   |                           |   |   |                          |   |   |   |   |   |   |   |   |   |   |   |
| attributable to Capitol Bancorp     |   |                           |   |   |                          |   |   |   |   |   |   |   |   |   |   |   |
| Limited                             |   | $                              | 0.10   |   |                          | $      | -- |   |   | $ | 0.45 |   |   | $ | 0.06 |   |

| Assets:                        |   |   |    | Liabilities: |                      |   |   |
|--------------------------------|--------|--------|---------|--------------|---------------------------|--------|--------|
| Cash and cash equivalents      |   | $      | 77,023  |         | Noninterest-bearing       |   |   |   |
| Loans held for sale            |   |   | 5,014   |         | deposits                  |   | $      | 101,242 |   |
| Portfolio loans                |   |   | 468,101 |         | Interest-bearing deposits |   |   | 367,012 |   |
| Less allowance for loan losses |   |   | (8,480  | )            | Total deposits            |   |   | 468,254 |   |
| Net portfolio loans            |   |   | 459,621 |         | Debt obligations          |   |   | 32,411 |   |
| Premises and equipment         |   |   | 3,607   |         | Other liabilities         |   |   | 940 |   |
| Other assets                   |   |   | 14,866  |         |                      |   |   |   |   |
|                           |   |   |    |         |                      |   | $      | 501,605 |   |
|                           |   | $      | 560,131 |         |                      |   |   |   |   |

----

|   | 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 (Level 1).  If quoted prices are not available, fair values are measured using independent pricing models (Level 2). |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 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.  There were no mortgage loans held for sale written down to fair value at September 30, 2010.  Fair value is based on independent quoted market prices, where applicable, or the prices for other whole mortgage 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 for collateral-dependent loans are recorded to reflect partial write-downs based on the observable market price, current appraised value of the collateral or other estimates of fair value. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Other real estate owned:  At the time of foreclosure, foreclosed properties are adjusted to estimated fair value less estimated costs to sell upon transfer from portfolio loans to other real estate owned, establishing a new accounting basis.  The Corporation subsequently adjusts estimated fair value of other real estate owned on a nonrecurring basis to reflect partial write-downs based on the observable market price or current appraisal data. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                      |   |  Total |      |   | Significant OtherObservable Inputs(Level 2) |
|-------------------------------------------|--------|-------------|-----------|--------|---------------------------------------------|
|                                      |   |        |      |   |                                        |
| Investment securities available for sale: |   |        |      |   |                                        |
| United States treasury                    |   | $           | 508       |   |                                        | $ | 508 |
| United States government agency           |   |        | 21,448    |   |                                        |   | 21,448 |
| Mortgage-backed                           |   |        | 4,876     |   |                                        |   | 4,876 |
| Municipalities                            |   |        |  421 |   |                                        |   |  421 |
|                                      |   |        |      |   |                                        |   |   |
|                                      |   | $           | 27,253    |   |                                        | $ | 27,253 |

----

|                                      |   |  Total(1) |      |   | Significant OtherObservable Inputs(Level 2)(1) |
|-------------------------------------------|--------|----------------|-----------|--------|------------------------------------------------|
|                                      |   |           |      |   |                                           |
| Investment securities available for sale: |   |           |      |   |                                           |
| United States treasury                    |   | $              | 1,500     |   |                                           | $ | 1,500 |
| United States government agency           |   |           | 12,939    |   |                                           |   | 12,939 |
| Mortgage-backed                           |   |           | 24,598    |   |                                           |   | 24,598 |
| Municipalities                            |   |           |  739 |   |                                           |   |  739 |
|                                      |   |           |      |   |                                           |   |   |
|                                      |   | $              | 39,776    |   |                                           | $ | 39,776 |

|                       |   |   Total |    |   | SignificantUnobservableInputs(Level 3) |
|----------------------------|--------|-------------------|---------|--------|----------------------------------------|
|                       |   |              |    |   |                                   |
| Impaired loans(1)          |   | $                 | 341,317 |   |                                   | $ | 341,317 |
|                       |   |              |    |   |                                   |   |   |
| Other real estate owned(1) |   | $                 | 108,424 |   |                                   | $ | 108,424 |

|                       |   |   Total(2) |    |   | SignificantUnobservableInputs(Level 3)(2) |
|----------------------------|--------|----------------------|---------|--------|-------------------------------------------|
|                       |   |                 |    |   |                                      |
| Impaired loans(1)          |   | $                    | 136,506 |   |                                      | $ | 136,506 |
|                       |   |                 |    |   |                                      |   |   |
| Other real estate owned(1) |   | $                    | 111,102 |   |                                      | $ | 111,102 |

----

----

|                                                 |   | September 30, 2010  |          |   | December 31, 2009(2)  |   |
|------------------------------------------------------|--------|--------------------------|---------------|--------|----------------------------|--------|
|                                                 |   | CarryingValue            |          |   | EstimatedFair Value        |   |   | CarryingValue |   |   | EstimatedFair Value |   |
| Financial assets:                                    |   |                     |          |   |                       |   |   |   |   |   |   |   |
| Cash and cash equivalents                            |   | $                        | 813,513       |   |                       | $      | 813,513 |   |   | $ | 731,899 |   |   | $ | 731,899 |   |
| Loans held for sale                                  |   |                     | 7,736         |   |                       |   | 7,736 |   |   |   | 11,119 |   |   |   | 11,119 |   |
| Investment securities:                               |   |                     |          |   |                       |   |   |   |   |   |   |   |   |   |   |   |
| Available for sale                                   |   |                     | 27,253        |   |                       |   | 27,253 |   |   |   | 39,776 |   |   |   | 39,776 |   |
| Held for long-term investment                        |   |                     | 3,422         |   |                       |   | 3,422 |   |   |   | 5,791 |   |   |   | 5,791 |   |
|                                                 |   |                     | 30,675        |   |                       |   | 30,675 |   |   |   | 45,567 |   |   |   | 45,567 |   |
| Federal Home Loan Bank and Federal ReserveBank stock |   |                     | 22,020        |   |                       |   | 22,020 |   |   |   | 21,646 |   |   |   | 21,646 |   |
| Portfolio loans:                                     |   |                     |          |   |                       |   |   |   |   |   |   |   |   |   |   |   |
| Loans secured by real estate:                        |   |                     |          |   |                       |   |   |   |   |   |   |   |   |   |   |   |
| Commercial                                           |   |                     | 1,699,958     |   |                       |   | 1,630,108 |   |   |   | 1,812,387 |   |   |   | 1,732,535 |   |
| Residential (including multi-family)                 |   |                     | 648,507       |   |                       |   | 618,514 |   |   |   | 679,847 |   |   |   | 644,894 |   |
| Construction, land development and otherland         |   |                     |  357,587 |   |                       |   |  320,827 |   |   |   |  444,420 |   |   |   |  371,339 |   |
| Total loans secured by real estate                   |   |                     | 2,706,052     |   |                       |   | 2,569,449 |   |   |   | 2,936,654 |   |   |   | 2,748,768 |   |
| Commercial and other business-purpose loans          |   |                     | 488,300       |   |                       |   | 475,090 |   |   |   | 580,524 |   |   |   | 564,028 |   |
| Consumer                                             |   |                     | 32,308        |   |                       |   | 32,399 |   |   |   | 37,336 |   |   |   | 37,692 |   |
| Other                                                |   |                     | 25,282        |   |                       |   | 23,821 |   |   |   | 24,486 |   |   |   | 22,770 |   |
| Total portfolio loans                                |   |                     | 3,251,942     |   |                       |   | 3,100,759 |   |   |   | 3,579,000 |   |   |   | 3,373,258 |   |
| Less allowance for loan losses                       |   |                     | (148,777      | )      |                       |   | (148,777 | ) |   |   | (136,184 | ) |   |   | (136,184 | ) |
| Net portfolio loans                                  |   |                     | 3,103,165     |   |                       |   | 2,951,982 |   |   |   | 3,442,816 |   |   |   | 3,237,074 |   |
|                                                 |   |                     |          |   |                       |   |   |   |   |   |   |   |   |   |   |   |
| Financial liabilities:                               |   |                     |          |   |                       |   |   |   |   |   |   |   |   |   |   |   |
| Deposits:                                            |   |                     |          |   |                       |   |   |   |   |   |   |   |   |   |   |   |
| Noninterest-bearing                                  |   |                     | 648,416       |   |                       |   | 648,416 |   |   |   | 577,858 |   |   |   | 577,858 |   |
| Interest-bearing:                                    |   |                     |          |   |                       |   |   |   |   |   |   |   |   |   |   |   |
| Demand accounts                                      |   |                     | 1,137,476     |   |                       |   | 1,137,476 |   |   |   | 1,142,961 |   |   |   | 1,142,961 |   |
| Time certificates of less than $100,000              |   |                     | 889,007       |   |                       |   | 894,498 |   |   |   | 858,412 |   |   |   | 860,235 |   |
| Time certificates of $100,000 or more                |   |                     | 1,121,649     |   |                       |   | 1,127,719 |   |   |   | 1,363,148 |   |   |   | 1,365,032 |   |
| Total interest-bearing                               |   |                     | 3,148,132     |   |                       |   | 3,159,693 |   |   |   | 3,364,521 |   |   |   | 3,368,228 |   |
| Total deposits                                       |   |                     | 3,796,548     |   |                       |   | 3,808,109 |   |   |   | 3,942,379 |   |   |   | 3,946,086 |   |
| Notes payable and other borrowings                   |   |                     | 144,282       |   |                       |   | 145,108 |   |   |   | 243,747 |   |   |   | 243,765 |   |
| Subordinated debentures                              |   |                     | 167,550       |   |                       |   | 170,841 | (1) |   |   | 167,441 |   |   |   | 170,841 | (1) |

----

|                              |   |  NumberOutstanding |           |   |  Exercise PriceRange |   |                                               | WeightedAverageExercisePrice |
|-----------------------------------|--------|-------------------------|----------------|--------|---------------------------|--------|----------------------------------------------------|------------------------------|
|                              |   |                    |           |   |                      |   |                                               |                         |
| Outstanding at January 1, 2010    |   |                    | 2,504,483      |   |                      | $      |   2.01  to $ 46.20                  |                         |   | $ | 24.61 |
| Granted                           |   |                    | 206,656        |   |                      |   |   1.78  to      1.96 |                         |   |   | 1.95 |
| Exercised                         |   |                    | (10,000        | )      |                      |   | 2.01                                               |                         |   |   | 2.01 |
| Cancelled or expired              |   |                    |  (779,553 | )      |                      |   | 16.40  to    46.20             |                         |   |   | 25.22 |
|                              |   |                    |           |   |                      |   |                                               |                         |   |   |   |
| Outstanding at September 30, 2010 |   |                    | 1,921,586      |   |                      | $      |   1.78  to $ 46.20                       |                         |   | $ | 22.05 |

|                |                          |   |              |      |          | Weighted Average |
|---------------------|-------------------------------|--------|-------------------|-----------|---------------|------------------|
| Exercise PriceRange |                          |   | NumberOutstanding |      |          | ExercisePrice    |   | RemainingContractualLife |
|                |                          |   |              |      |          |             |   |   |
| $                   | 1.00 to 14.99       |   |              |      | 566,105       |             |   | $ | 2.48 |   | 3.02 years |
| $                   | 15.00 to 19.99      |   |              |      | 66,883        |             |   |   | 16.40 |   | 1.03 years |
| $                   | 20.00 to 24.99      |   |              |      | 205,953       |             |   |   | 22.02 |   | 3.79 years |
| $                   | 25.00 to 29.99      |   |              |      | 252,483       |             |   |   | 26.78 |   | 0.39 years |
| $                   | 30.00 to 34.99      |   |              |      | 472,164       |             |   |   | 31.78 |   | 1.38 years |
| $              |  35.00 or more |   |              |      |  357,998 |             |   |   | 37.89 |   | 2.18 years |
|                |                          |   |              |      |          |             |   |   |   |   |   |
| Total outstanding   |                          |   |              | 1,921,586 |          |             | $ | 22.05 |   |   |

----

|                                                                                                                                                           |   | Three Month Period |                       |   | Nine Month Period |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------|----------------------------|--------|-------------------|--------|
|                                                                                                                                                           |   | 2010               |                       |   | 2009              |   |   | 2010 |   |   | 2009 |   |
|                                                                                                                                                           |   |               |                       |   |              |   |   |   |   |   |   |   |
| Numerator—net loss attributable to Capitol Bancorp    Limited for the period                                                              |   | $                  | (40,761                    | )      |              | $      | (82,689 | ) |   | $ | (129,646 | ) |   | $ | (119,667 | ) |
|                                                                                                                                                           |   |               |                       |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Denominator:                                                                                                                                                   |   |               |                       |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Weighted average number of common sharesoutstanding, excluding unvested restricted sharesof common stock (denominator for basic anddiluted earnings per share) |   |               |      21,300 |   |              |   |      17,398 |   |   |   |      19,810 |   |   |   |      17,269 |   |
|                                                                                                                                                           |   |               |                       |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Number of antidilutive stock options excludedfrom diluted net loss per share computation                                                                       |   |               |  1,922                |   |              |   |  2,375 |   |   |   |  1,922 |   |   |   |  2,375 |   |
|                                                                                                                                                           |   |               |                       |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Number of antidilutive unvested restrictedshares excluded from diluted net lossper share computation                                                           |   |               |    318           |   |              |   |    109 |   |   |   |    318 |   |   |   |    109 |   |
|                                                                                                                                                           |   |               |                       |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Number of antidilutive warrants excludedfrom diluted net loss per share computation                                                                            |   |               |  76                   |   |              |   |  76 |   |   |   |  76 |   |   |   |  76 |   |

----

----

----

|                                                        |   | September 30, |   |    | December 31, |   |
|-------------------------------------------------------------|--------|---------------|--------|---------|--------------|--------|
|                                                        |   | 2010          |   |    | 2009         |   |
| Tier 1 capital to average adjusted total assets:            |   |          |   |    |         |   |   |   |
| Minimum required amount                                     |   |  ≥ | $      | 178,290 |         |   |  ≥ | $ | 210,651 |   |
| Actual amount                                               |   |          | $      | 30,076  |         |   |   | $ | 242,547 |   |
| Ratio                                                       |   |          |   | 0.67    | %            |   |   |   | 4.61 | % |
|                                                        |   |          |   |    |         |   |   |   |   |   |
| Tier 1 capital to risk-weighted assets:                     |   |          |   |    |         |   |   |   |   |   |
| Minimum required amount(1)                                  |   |  ≥ | $      | 127,417 |         |   |  ≥ | $ | 162,089 |   |
| Actual amount                                               |   |          | $      | 30,076  |         |   |   | $ | 242,547 |   |
| Ratio                                                       |   |          |   | 0.94    | %            |   |   |   | 5.99 | % |
|                                                        |   |          |   |    |         |   |   |   |   |   |
| Combined Tier 1 and Tier 2 capital to risk-weighted assets: |   |          |   |    |         |   |   |   |   |   |
| Minimum required amount(2)                                  |   |  ≥ | $      | 254,834 |         |   |  ≥ | $ | 324,177 |   |
| Actual amount                                               |   |          | $      | 60,152  |         |   |   | $ | 383,449 |   |
| Ratio                                                       |   |          |   | 1.89    | %            |   |   |   | 9.46 | % |

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

----

|                            |   | September 30, 2010 |      |   | December 31, 2009 |   |
|---------------------------------|--------|--------------------|-----------|--------|-------------------|--------|
| Arizona Region:                 |   |               |      |   |              |   |
| Bank of Tucson                  |   | $                  | 214,864   |   |              | $      | 204,933 |   |
| Central Arizona Bank            |   |               | 72,636    |   |              |   | 95,303 |   |
| Southern Arizona Community Bank |   |               | 92,645    |   |              |   | 94,585 |   |
| Sunrise Bank of Albuquerque     |   |               | 75,173    |   |              |   | 78,930 |   |
| Sunrise Bank of Arizona         |   |               | 396,559   |   |              |   | 495,168 |   |
| Arizona Region Total            |   |               | 851,877   |   |              |   | 968,919 |   |
|                            |   |               |      |   |              |   |   |   |
| California Region:              |   |               |      |   |              |   |   |   |
| Bank of Feather River           |   |               | 40,878    |   |              |   | 33,693 |   |
| Bank of San Francisco(8)        |   |               |      |   |              |   | 87,740 |   |
| Napa Community Bank(8)          |   |               |      |   |              |   | 166,873 |   |
| Sunrise Bank(4)(9)              |   |               | 262,321   |   |              |   | 296,197 |   |
| California Region Total         |   |               | 303,199   |   |              |   | 584,503 |   |
|                            |   |               |      |   |              |   |   |   |
| Colorado Region:                |   |               |      |   |              |   |   |   |
| Fort Collins Commerce Bank      |   |               | 105,074   |   |              |   | 93,908 |   |
| Larimer Bank of Commerce        |   |               | 98,048    |   |              |   | 89,623 |   |
| Loveland Bank of Commerce       |   |               | 40,462    |   |              |   | 40,032 |   |
| Mountain View Bank of Commerce  |   |               | 55,485    |   |              |   | 50,621 |   |
| Colorado Region Total           |   |               | 299,069   |   |              |   | 274,184 |   |
|                            |   |               |      |   |              |   |   |   |
| Great Lakes Region:             |   |               |      |   |              |   |   |   |
| Bank of Maumee                  |   |               | 42,595    |   |              |   | 46,796 |   |
| Bank of Michigan                |   |               | 86,592    |   |              |   | 99,344 |   |
| Capitol National Bank           |   |               | 170,858   |   |              |   | 200,597 |   |
| Evansville Commerce Bank        |   |               | 52,901    |   |              |   | 56,392 |   |
| Indiana Community Bank(5)(9)    |   |               | 152,078   |   |              |   | 175,407 |   |
| Michigan Commerce Bank(1)(9)    |   |               | 1,029,705 |   |              |   | 1,233,289 |   |
| Ohio Commerce Bank(8)           |   |               |      |   |              |   | 66,175 |   |
| Great Lakes Region Total        |   |               | 1,534,729 |   |              |   | 1,878,000 |   |
|                            |   |               |      |   |              |   |   |   |
| Midwest Region:                 |   |               |      |   |              |   |   |   |
| Adams Dairy Bank(8)             |   |               |      |   |              |   | 44,309 |   |
| Bank of Belleville(8)           |   |               |      |   |              |   | 70,502 |   |
| Community Bank of Lincoln(8)    |   |               |      |   |              |   | 60,356 |   |
| Midwest Region Total            |   |               |      |   |              |   | 175,167 |   |
|                            |   |               |      |   |              |   |   |   |
| Nevada Region:                  |   |               |      |   |              |   |   |   |
| 1st Commerce Bank               |   |               | 43,891    |   |              |   | 38,811 |   |
| Bank of Las Vegas(2)(9)         |   |               | 459,271   |   |              |   | 488,786 |   |
| Nevada Region Total             |   |               | 503,162   |   |              |   | 527,597 |   |
|                            |   |               |      |   |              |   |   |   |
| Northeast Region:               |   |               |      |   |              |   |   |   |
| USNY Bank(8)                    |   |               |      |   |              |   | 64,176 |   |

----

|                          |   | September 30, 2010 |      |   | December 31, 2009 |   |
|-------------------------------|--------|--------------------|-----------|--------|-------------------|--------|
| Northwest Region:             |   |               |      |   |              |   |
| Bank of the Northwest(3)(9)   |   | $                  | 154,110   |   |              | $      | 174,005 |   |
| High Desert Bank              |   |               | 36,970    |   |              |   | 41,849 |   |
| Northwest Region Total        |   |               | 191,080   |   |              |   | 215,854 |   |
|                          |   |               |      |   |              |   |   |   |
| Southeast Region:             |   |               |      |   |              |   |   |   |
| Community Bank of Rowan(6)    |   |               | 149,547   |   |              |   |   |   |
| First Carolina State Bank     |   |               | 114,676   |   |              |   | 115,716 |   |
| Pisgah Community Bank         |   |               | 53,238    |   |              |   | 62,773 |   |
| Sunrise Bank(7)(9)            |   |               | 120,552   |   |              |   | 137,320 |   |
| Southeast Region Total        |   |               | 438,013   |   |              |   | 315,809 |   |
|                          |   |               |      |   |              |   |   |   |
| Texas Region:                 |   |               |      |   |              |   |   |   |
| Bank of Fort Bend             |   |               | 38,041    |   |              |   | 31,548 |   |
| Bank of Las Colinas           |   |               | 45,169    |   |              |   | 43,003 |   |
| Texas Region Total            |   |               | 83,210    |   |              |   | 74,551 |   |
|                          |   |               |      |   |              |   |   |   |
| Parent company and other, net |   |               | 33,249    |   |              |   | 53,180 |   |
|                          |   |               |      |   |              |   |   |   |
| Consolidated Totals           |   | $                  | 4,237,588 |   |              | $      | 5,131,940 |   |

| (1) | Effective March 31, 2010, Bank of Auburn Hills and Paragon Bank & Trust merged with and into Michigan Commerce Bank.  Prior to the merger, Bank of Auburn Hills and Paragon Bank & Trust were wholly-owned subsidiaries of Capitol.                                                                                                                                                                                                                                   |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (2) | Effective January 29, 2010, Black Mountain Community Bank, Desert Community Bank and Red Rock Community Bank merged with and into Bank of Las Vegas.  Prior to the merger, each of the banks was a wholly-owned subsidiary of Capitol.                                                                                                                                                                                                                                        |
| (3) | Effective February 19, 2010, Bank of Bellevue, Bank of Everett and Bank of Tacoma merged with and into Issaquah Community Bank.  Upon completion of the merger, the surviving bank was renamed Bank of the Northwest.  Prior to the merger, each of the banks was either a majority-owned subsidiary of Capitol or majority-owned by a bank-development subsidiary in which Capitol holds a controlling interest.                                                   |
| (4) | Effective March 5, 2010, Bank of Escondido, Sunrise Bank of San Diego and Sunrise Community Bank merged with and into Point Loma Community Bank.  Upon completion of the merger, the surviving bank was renamed Sunrise Bank.  Prior to the merger, each of the banks was either a wholly-owned subsidiary of Capitol or majority-owned by a bank-development subsidiary in which Capitol holds a controlling interest.                                             |
| (5) | Effective March 22, 2010, Elkhart Community Bank merged with and into Goshen Community Bank.  Upon completion of the merger, the surviving bank was renamed Indiana Community Bank.  Prior to the merger, each of the banks was a wholly-owned subsidiary of Capitol.                                                                                                                                                                                               |
| (6) | As of December 31, 2009, Community Bank of Rowan (CBR) was a majority-owned subsidiary of Capitol Development Bancorp Limited III (CDBL III) which, due to a change in control effective September 30, 2009, was an unconsolidated affiliate of Capitol.  Effective June 30, 2010, CDBL III transferred its controlling interest in CBR to Capitol in exchange for preferred stock of Capitol and, accordingly, CBR became a consolidated subsidiary of Capitol on that date. |
| (7) | Effective July 30, 2010, Peoples State Bank and Sunrise Bank of Atlanta merged with and into Bank of Valdosta.  Upon completion of the merger, the surviving bank was renamed Sunrise Bank.  Prior to the merger, each of the banks was either a majority-owned subsidiary of Capitol or majority-owned by a bank-development subsidiary in which Capitol holds a controlling interest.                                                                             |
| (8) | Capitol's interest in this bank subsidiary was sold during the nine months ended September 30, 2010.                                                                                                                                                                                                                                                                                                                                                                                    |
| (9) | For purposes of this presentation, such merger has been reflected as if it occurred on December 31, 2009.                                                                                                                                                                                                                                                                                                                                                                               |

----

|                                                                        |   | Periods Ended September 30 |      |
|-----------------------------------------------------------------------------|--------|----------------------------|-----------|
|                                                                        |   | Three Month Period         |      |   | Nine Month Period |   |
|                                                                        |   | 2010                       |      |   | 2009(1) |   |   | 2010 |   |   | 2009(1) |   |
|                                                                        |   |                       |      |   |   |   |   |   |   |   |   |   |
| Allowance for loan losses at beginning of period                            |   | $                          | 155,468   |   |   | $ | 102,535 |   |   | $ | 136,184 |   |   | $ | 82,666 |   |
|                                                                        |   |                       |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Allowance for loan losses of previously-deconsolidatedbank subsidiary       |   |                       |      |   |   |   |   |   |   |   |  1,769 |   |   |   |   |   |
|                                                                        |   |                       |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans charged-off:                                                          |   |                       |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans secured by real estate:                                               |   |                       |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial                                                                  |   |                       | (21,556   | ) |   |   | (5,757 | ) |   |   | (47,747 | ) |   |   | (11,367 | ) |
| Residential (including multi-family)                                        |   |                       | (9,193    | ) |   |   | (5,026 | ) |   |   | (28,165 | ) |   |   | (19,869 | ) |
| Construction, land development and other land                               |   |                       | (6,268    | ) |   |   | (11,239 | ) |   |   | (28,887 | ) |   |   | (24,586 | ) |
| Total loans secured by real estate                                          |   |                       | (37,017   | ) |   |   | (22,022 | ) |   |   | (104,799 | ) |   |   | (55,822 | ) |
| Commercial and other business-purpose loans                                 |   |                       | (6,950    | ) |   |   | (7,149 | ) |   |   | (20,706 | ) |   |   | (19,164 | ) |
| Consumer                                                                    |   |                       | (875      | ) |   |   | (430 | ) |   |   | (1,295 | ) |   |   | (972 | ) |
| Other                                                                       |   |                       | --        |   |   |   | (34 | ) |   |   | -- |   |   |   | (34 | ) |
| Total charge-offs                                                           |   |                       | (44,842   | ) |   |   | (29,635 | ) |   |   | (126,800 | ) |   |   | (75,992 | ) |
| Recoveries:                                                                 |   |                       |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans secured by real estate:                                               |   |                       |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial                                                                  |   |                       | 754       |   |   |   | 29 |   |   |   | 1,495 |   |   |   | 151 |   |
| Residential (including multi-family)                                        |   |                       | 1,043     |   |   |   | 51 |   |   |   | 1,666 |   |   |   | 252 |   |
| Construction, land development and other land                               |   |                       | 1,743     |   |   |   | 385 |   |   |   | 5,349 |   |   |   | 506 |   |
| Total loans secured by real estate                                          |   |                       | 3,540     |   |   |   | 465 |   |   |   | 8,510 |   |   |   | 909 |   |
| Commercial and other business-purpose loans                                 |   |                       | 423       |   |   |   | 161 |   |   |   | 2,100 |   |   |   | 994 |   |
| Consumer                                                                    |   |                       | 28        |   |   |   | 88 |   |   |   | 96 |   |   |   | 117 |   |
| Total recoveries                                                            |   |                       | 3,991     |   |   |   | 714 |   |   |   | 10,706 |   |   |   | 2,020 |   |
| Net charge-offs                                                             |   |                       | (40,851   | ) |   |   | (28,921 | ) |   |   | (116,094 | ) |   |   | (73,972 | ) |
| Additions to allowance charged to expense (provision for                    |   |                       |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| for loan losses)                                                            |   |                       | 34,160    |   |   |   | 44,482 |   |   |   | 126,918 |   |   |   | 109,402 |   |
|                                                                        |   |                       |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Allowance for loan losses at end of period                                  |   | $                          | 148,777   |   |   | $ | 118,096 |   |   | $ | 148,777 |   |   | $ | 118,096 |   |
|                                                                        |   |                       |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Average total portfolio loans outstanding                                   |   | $                          | 3,338,447 |   |   | $ | 3,797,021 |   |   | $ | 3,439,705 |   |   | $ | 3,911,639 |   |
|                                                                        |   |                       |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Ratio of net charge-offs (annualized) to average portfolioloans outstanding |   |                       | 4.89      | % |   |   | 3.05 | % |   |   | 4.50 | % |   |   | 2.52 | % |

| (1) |    Excludes amounts related to operations discontinued in 2010. |
|-----|---------------------------------------------------------------------------|

----

|                                                            |   | September 30, 2010 |         |   | December 31, 2009(1)             |   |
|-----------------------------------------------------------------|--------|--------------------|--------------|--------|----------------------------------|--------|
|                                                            |   |   Amount |         |   | Percentageof TotalPortfolioLoans |   |   |   Amount |   |   | Percentageof TotalPortfolioLoans |   |
|                                                            |
|                                                            |
|                                                            |
|                                                            |   |               |         |   |                             |   |   |   |   |   |   |   |
| Loans secured by real estate:                                   |   |               |         |   |                             |   |   |   |   |   |   |   |
| Commercial                                                      |   | $                  | 52,219       |   |                             |   | 1.61 | % |   | $ | 54,396 |   |   |   | 1.52 | % |
| Residential (including multi-family)                            |   |               | 38,528       |   |                             |   | 1.18 | % |   |   | 26,754 |   |   |   | 0.75 | % |
| Construction, land development and    other land |   |               |  23,408 |   |                             |   | 0.72 | % |   |   |  21,416 |   |   |   | 0.60 | % |
| Total loans secured by real estate                              |   |               | 114,155      |   |                             |   | 3.51 | % |   |   | 102,566 |   |   |   | 2.87 | % |
| Commercial and other business-purpose loans                     |   |               | 33,242       |   |                             |   | 1.02 | % |   |   | 32,238 |   |   |   | 0.90 | % |
| Consumer                                                        |   |               | 1,195        |   |                             |   | 0.04 | % |   |   | 1,294 |   |   |   | 0.04 | % |
| Other                                                           |   |               | 185          |   |                             |   | 0.01 | % |   |   | 86 |   |   |   |  -- |   |
|                                                            |   |               |         |   |                             |   |   |   |   |   |   |   |   |   |   |   |
| Total allowance for loan losses                                 |   | $                  | 148,777      |   |                             |   | 4.58 | % |   | $ | 136,184 |   |   |   | 3.81 | % |

----

|                                                |   | September 30,2010 |          |   | June 30,2010(1) |   |          | March 31,2010(1) |   |   | December 31,2009(1) |   |
|-----------------------------------------------------|--------|-------------------|---------------|--------|-----------------|--------|---------------|------------------|--------|--------|---------------------|--------|
| Nonaccrual loans:                                   |   |              |          |   |            |   |          |             |   |   |                |   |
| Loans secured by real estate:                       |   |              |          |   |            |   |          |             |   |   |                |   |
| Commercial                                          |   | $                 | 161,371       |   |            | $      | 161,996       |             |   | $      | 151,615             |   |   | $ | 129,401 |   |
| Residential (including multi-family)                |   |              | 65,480        |   |            |   | 57,095        |             |   |   | 63,356              |   |   |   | 55,347 |   |
| Construction, land development and other land       |   |              | 78,697        |   |            |   | 92,053        |             |   |   | 80,161              |   |   |   | 81,261 |   |
| Total loans secured by real estate                  |   |              | 305,548       |   |            |   | 311,144       |             |   |   | 295,132             |   |   |   | 266,009 |   |
| Commercial and other business-purpose loans         |   |              | 30,065        |   |            |   | 30,494        |             |   |   | 27,102              |   |   |   | 23,063 |   |
| Consumer                                            |   |              | 725           |   |            |   | 1,463         |             |   |   | 495                 |   |   |   | 335 |   |
| Total nonaccrual loans                              |   |              | 336,338       |   |            |   | 343,101       |             |   |   | 322,729             |   |   |   | 289,407 |   |
|                                                |   |              |          |   |            |   |          |             |   |   |                |   |   |   |   |   |
| Past due (>90 days) loans and accruing interest: |   |              |          |   |            |   |          |             |   |   |                |   |   |   |   |   |
| Loans secured by real estate:                       |   |              |          |   |            |   |          |             |   |   |                |   |   |   |   |   |
| Commercial                                          |   |              | 2,523         |   |            |   | 5,544         |             |   |   | 5,796               |   |   |   | 6,234 |   |
| Residential (including multi-family)                |   |              | 855           |   |            |   | 2,508         |             |   |   | 768                 |   |   |   | 228 |   |
| Construction, land development and other land       |   |              | 18            |   |            |   | 2,113         |             |   |   | 3,035               |   |   |   | 3,713 |   |
| Total loans secured by real estate                  |   |              | 3,396         |   |            |   | 10,165        |             |   |   | 9,599               |   |   |   | 10,175 |   |
| Commercial and other business-purpose loans         |   |              | 387           |   |            |   | 1,344         |             |   |   | 2,101               |   |   |   | 1,546 |   |
| Consumer                                            |   |              | 38            |   |            |   | 32            |             |   |   | 12                  |   |   |   | 534 |   |
| Total past due loans                                |   |              | 3,821         |   |            |   | 11,541        |             |   |   | 11,712              |   |   |   | 12,255 |   |
|                                                |   |              |          |   |            |   |          |             |   |   |                |   |   |   |   |   |
| Total nonperforming loans                           |   | $                 | 340,159       |   |            | $      | 354,642       |             |   | $      | 334,441             |   |   | $ | 301,662 |   |
|                                                |   |              |          |   |            |   |          |             |   |   |                |   |   |   |   |   |
| Real estate owned and otherrepossessed assets       |   |              |  108,425 |   |            |   |  108,633 |             |   |   |  109,702       |   |   |   |  111,167 |   |
|                                                |   |              |          |   |            |   |          |             |   |   |                |   |   |   |   |   |
| Total nonperforming assets                          |   | $                 | 448,584       |   |            | $      | 463,275       |             |   | $      | 444,143             |   |   | $ | 412,829 |   |

| (1) |    Excludes amounts related to operations discontinued in 2010. |
|-----|---------------------------------------------------------------------------|

----

|                                                |   | September 30,2010 |    |   | December 31,2009(1) |
|-----------------------------------------------------|--------|-------------------|---------|--------|---------------------|
| Impaired loans:                                     |   |              |    |   |                |
| Loans which have an allowance requirement           |   | $                 | 132,961 |   |                | $ | 112,804 |
| Loans which do not have an allowance requirement    |   |              | 263,215 |   |                |   | 212,244 |
|                                                |   |              |    |   |                |   |   |
| Total impaired loans                                |   | $                 | 396,176 |   |                | $ | 325,048 |
|                                                |   |              |    |   |                |   |   |
| Allowance for loan losses related to impaired loans |   | $                 | 24,944  |   |                | $ | 19,609 |

|   | (1) | Excludes impaired loans of $7,683 and allowance for loan losses related to impaired loans of $529 for operations discontinued in 2010. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------|

----

----

|                            |   |                  |      |   | Allowance for |   |      |                |   |   | Allowance as a Percentage |   |
|---------------------------------|--------|-----------------------|-----------|--------|---------------|--------|-----------|---------------------|--------|--------|---------------------------|--------|
|                            |   | Total Portfolio Loans |      |   | Loan Losses   |   |      | Nonperforming Loans |   |   | of Total Portfolio Loans  |   |
|                            |   | Sept 30,2010          |      |   | Dec 31,2009   |   |      | Sept 30,2010        |   |   | Dec 31,2009               |   |   | Sept 30,2010 |   |   | Dec 31,2009 |   |   | Sept 30,2010 |   |   | Dec 31,2009 |   |
| Arizona Region:                 |   |                  |      |   |          |   |      |                |   |   |                      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Bank of Tucson                  |   | $                     | 147,632   |   |          | $      | 168,809   |                |   | $      | 2,326                     |   |   | $ | 1,904 |   |   | $ | 7,842 |   |   | $ | 5,110 |   |   |   | 1.58 | % |   |   | 1.13 | % |
| Central Arizona Bank            |   |                  | 58,570    |   |          |   | 66,058    |                |   |   | 2,535                     |   |   |   | 3,389 |   |   |   | 3,710 |   |   |   | 3,132 |   |   |   | 4.33 | % |   |   | 5.13 | % |
| Southern Arizona Community Bank |   |                  | 76,965    |   |          |   | 79,190    |                |   |   | 1,100                     |   |   |   | 1,150 |   |   |   | 787 |   |   |   | 848 |   |   |   | 1.43 | % |   |   | 1.45 | % |
| Sunrise Bank of Albuquerque     |   |                  | 54,920    |   |          |   | 61,077    |                |   |   | 1,606                     |   |   |   | 1,256 |   |   |   | 4,958 |   |   |   | 3,436 |   |   |   | 2.92 | % |   |   | 2.06 | % |
| Sunrise Bank of Arizona         |   |                  | 284,901   |   |          |   | 346,134   |                |   |   | 18,800                    |   |   |   | 17,382 |   |   |   | 36,064 |   |   |   | 32,929 |   |   |   | 6.60 | % |   |   | 5.02 | % |
| Arizona Region Total            |   |                  | 622,988   |   |          |   | 721,268   |                |   |   | 26,367                    |   |   |   | 25,081 |   |   |   | 53,361 |   |   |   | 45,455 |   |   |   | 4.23 | % |   |   | 3.48 | % |
|                            |   |                  |      |   |          |   |      |                |   |   |                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| California Region:              |   |                  |      |   |          |   |      |                |   |   |                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Bank of Feather River           |   |                  | 33,514    |   |          |   | 26,941    |                |   |   | 445                       |   |   |   | 347 |   |   |   |   |   |   |   |   |   |   |   | 1.33 | % |   |   | 1.29 | % |
| Bank of San Francisco(8)        |   |                  |      |   |          |   | 74,782    |                |   |   |                      |   |   |   | 1,384 |   |   |   |   |   |   |   | 243 |   |   |   |   |   |   |   | 1.85 | % |
| Napa Community Bank(8)          |   |                  |      |   |          |   | 139,497   |                |   |   |                      |   |   |   | 2,493 |   |   |   |   |   |   |   | 3,746 |   |   |   |   |   |   |   | 1.79 | % |
| Sunrise Bank(4)(9)              |   |                  | 194,004   |   |          |   | 214,682   |                |   |   | 7,292                     |   |   |   | 6,731 |   |   |   | 11,200 |   |   |   | 8,692 |   |   |   | 3.76 | % |   |   | 3.14 | % |
| California Region Total         |   |                  | 227,518   |   |          |   | 455,902   |                |   |   | 7,737                     |   |   |   | 10,955 |   |   |   | 11,200 |   |   |   | 12,681 |   |   |   | 3.40 | % |   |   | 2.40 | % |
|                            |   |                  |      |   |          |   |      |                |   |   |                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Colorado Region:                |   |                  |      |   |          |   |      |                |   |   |                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Fort Collins Commerce Bank      |   |                  | 86,839    |   |          |   | 83,047    |                |   |   | 1,644                     |   |   |   | 1,308 |   |   |   | 1,681 |   |   |   | 1,291 |   |   |   | 1.89 | % |   |   | 1.58 | % |
| Larimer Bank of Commerce        |   |                  | 84,316    |   |          |   | 79,239    |                |   |   | 1,820                     |   |   |   | 1,467 |   |   |   | 1,188 |   |   |   |   |   |   |   | 2.16 | % |   |   | 1.85 | % |
| Loveland Bank of Commerce       |   |                  | 35,046    |   |          |   | 33,582    |                |   |   | 672                       |   |   |   | 560 |   |   |   |   |   |   |   | 156 |   |   |   | 1.92 | % |   |   | 1.67 | % |
| Mountain View Bank of Commerce  |   |                  | 44,168    |   |          |   | 40,201    |                |   |   | 789                       |   |   |   | 621 |   |   |   | 889 |   |   |   |   |   |   |   | 1.79 | % |   |   | 1.54 | % |
| Colorado Region Total           |   |                  | 250,369   |   |          |   | 236,069   |                |   |   | 4,925                     |   |   |   | 3,956 |   |   |   | 3,758 |   |   |   | 1,447 |   |   |   | 1.97 | % |   |   | 1.68 | % |
|                            |   |                  |      |   |          |   |      |                |   |   |                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Great Lakes Region:             |   |                  |      |   |          |   |      |                |   |   |                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Bank of Maumee                  |   |                  | 35,292    |   |          |   | 40,269    |                |   |   | 1,745                     |   |   |   | 918 |   |   |   | 60 |   |   |   | 810 |   |   |   | 4.94 | % |   |   | 2.28 | % |
| Bank of Michigan                |   |                  | 62,432    |   |          |   | 64,374    |                |   |   | 1,308                     |   |   |   | 1,172 |   |   |   | 2,722 |   |   |   | 844 |   |   |   | 2.10 | % |   |   | 1.82 | % |
| Capitol National Bank           |   |                  | 146,657   |   |          |   | 173,338   |                |   |   | 6,574                     |   |   |   | 7,920 |   |   |   | 19,665 |   |   |   | 21,346 |   |   |   | 4.48 | % |   |   | 4.57 | % |
| Evansville Commerce Bank        |   |                  | 39,468    |   |          |   | 44,179    |                |   |   | 1,139                     |   |   |   | 1,338 |   |   |   | 1,990 |   |   |   | 1,244 |   |   |   | 2.89 | % |   |   | 3.03 | % |
| Indiana Community Bank(5)(9)    |   |                  | 117,426   |   |          |   | 133,051   |                |   |   | 4,716                     |   |   |   | 4,130 |   |   |   | 8,026 |   |   |   | 9,278 |   |   |   | 4.05 | % |   |   | 3.10 | % |
| Michigan Commerce Bank(1)(9)    |   |                  | 871,115   |   |          |   | 1,045,285 |                |   |   | 53,416                    |   |   |   | 53,953 |   |   |   | 122,428 |   |   |   | 117,806 |   |   |   | 6.13 | % |   |   | 5.16 | % |
| Ohio Commerce Bank(8)           |   |                  |      |   |          |   | 56,739    |                |   |   |                      |   |   |   | 910 |   |   |   |   |   |   |   | 206 |   |   |   |   |   |   |   | 1.60 | % |
| Great Lakes Region Total        |   |                  | 1,272,390 |   |          |   | 1,557,235 |                |   |   | 68,898                    |   |   |   | 70,341 |   |   |   | 154,891 |   |   |   | 151,534 |   |   |   | 5.41 | % |   |   | 4.52 | % |
|                            |   |                  |      |   |          |   |      |                |   |   |                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Midwest Region:                 |   |                  |      |   |          |   |      |                |   |   |                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Adams Dairy Bank(8)             |   |                  |      |   |          |   | 35,860    |                |   |   |                      |   |   |   | 655 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 1.83 | % |
| Bank of Belleville(8)           |   |                  |      |   |          |   | 58,510    |                |   |   |                      |   |   |   | 938 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 1.60 | % |
| Community Bank of Lincoln(8)    |   |                  |      |   |          |   | 44,864    |                |   |   |                      |   |   |   | 1,195 |   |   |   |   |   |   |   | 1,661 |   |   |   |   |   |   |   | 2.66 | % |
| Midwest Region Total            |   |                  |      |   |          |   | 139,234   |                |   |   |                      |   |   |   | 2,788 |   |   |   |   |   |   |   | 1,661 |   |   |   |   |   |   |   | 2.00 | % |
|                            |   |                  |      |   |          |   |      |                |   |   |                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Nevada Region:                  |   |                  |      |   |          |   |      |                |   |   |                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 1st Commerce Bank               |   |                  | 26,612    |   |          |   | 33,482    |                |   |   | 846                       |   |   |   | 1,910 |   |   |   | 5,874 |   |   |   | 7,531 |   |   |   | 3.18 | % |   |   | 5.70 | % |
| Bank of Las Vegas(2)(9)         |   |                  | 324,797   |   |          |   | 370,285   |                |   |   | 20,838                    |   |   |   | 11,952 |   |   |   | 74,472 |   |   |   | 59,219 |   |   |   | 6.42 | % |   |   | 3.23 | % |
| Nevada Region Total             |   |                  | 351,409   |   |          |   | 403,767   |                |   |   | 21,684                    |   |   |   | 13,862 |   |   |   | 80,346 |   |   |   | 66,750 |   |   |   | 6.17 | % |   |   | 3.43 | % |
|                            |   |                  |      |   |          |   |      |                |   |   |                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Northeast Region:               |   |                  |      |   |          |   |      |                |   |   |                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| USNY Bank(8)                    |   |                  |      |   |          |   | 57,849    |                |   |   |                      |   |   |   | 905 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 1.56 | % |

----

|                                                 |   |                  |      |   | Allowance for |   |      |                |   |   | Allowance as a Percentage |   |
|------------------------------------------------------|--------|-----------------------|-----------|--------|---------------|--------|-----------|---------------------|--------|--------|---------------------------|--------|
|                                                 |   | Total Portfolio Loans |      |   | Loan Losses   |   |      | Nonperforming Loans |   |   | of Total Portfolio Loans  |   |
|                                                 |   | Sept 30,2010          |      |   | Dec 31,2009   |   |      | Sept 30,2010        |   |   | Dec 31,2009               |   |   | Sept 30,2010 |   |   | Dec 31,2009 |   |   | Sept 30,2010 |   |   | Dec 31,2009 |   |
| Northwest Region:                                    |   |                  |      |   |          |   |      |                |   |   |                      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Bank of the Northwest(3)(9)                          |   | $                     | 117,040   |   |          | $      | 134,669   |                |   | $      | 3,934                     |   |   | $ | 4,985 |   |   | $ | 6,815 |   |   | $ | 9,614 |   |   |   | 3.36 | % |   |   | 3.70 | % |
| High Desert Bank                                     |   |                  | 30,206    |   |          |   | 34,203    |                |   |   | 1,350                     |   |   |   | 805 |   |   |   | 963 |   |   |   | 644 |   |   |   | 4.47 | % |   |   | 2.35 | % |
| Northwest Region Total                               |   |                  | 147,246   |   |          |   | 168,872   |                |   |   | 5,284                     |   |   |   | 5,790 |   |   |   | 7,778 |   |   |   | 10,258 |   |   |   | 3.59 | % |   |   | 3.43 | % |
|                                                 |   |                  |      |   |          |   |      |                |   |   |                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Southeast Region:                                    |   |                  |      |   |          |   |      |                |   |   |                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Community Bank of Rowan(6)                           |   |                  | 108,912   |   |          |   |      |                |   |   | 1,900                     |   |   |   |   |   |   |   | 3,535 |   |   |   |   |   |   |   | 1.74 | % |   |   |   |   |
| First Carolina State Bank                            |   |                  | 83,721    |   |          |   | 90,919    |                |   |   | 1,867                     |   |   |   | 1,554 |   |   |   | 5,114 |   |   |   | 6,161 |   |   |   | 2.23 | % |   |   | 1.71 | % |
| Pisgah Community Bank                                |   |                  | 30,383    |   |          |   | 45,094    |                |   |   | 1,280                     |   |   |   | 1,168 |   |   |   | 5,251 |   |   |   | 401 |   |   |   | 4.21 | % |   |   | 2.59 | % |
| Sunrise Bank(7)(9)                                   |   |                  | 84,102    |   |          |   | 103,925   |                |   |   | 3,929                     |   |   |   | 4,152 |   |   |   | 10,524 |   |   |   | 7,928 |   |   |   | 4.67 | % |   |   | 4.00 | % |
| Southeast Region Total                               |   |                  | 307,118   |   |          |   | 239,938   |                |   |   | 8,976                     |   |   |   | 6,874 |   |   |   | 24,424 |   |   |   | 14,490 |   |   |   | 2.92 | % |   |   | 2.86 | % |
|                                                 |   |                  |      |   |          |   |      |                |   |   |                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Texas Region:                                        |   |                  |      |   |          |   |      |                |   |   |                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Bank of Fort Bend                                    |   |                  | 30,454    |   |          |   | 29,215    |                |   |   | 570                       |   |   |   | 485 |   |   |   | 292 |   |   |   |   |   |   |   | 1.87 | % |   |   | 1.66 | % |
| Bank of Las Colinas                                  |   |                  | 40,581    |   |          |   | 34,725    |                |   |   | 737                       |   |   |   | 731 |   |   |   | 933 |   |   |   |   |   |   |   | 1.82 | % |   |   | 2.11 | % |
| Texas Region Total                                   |   |                  | 71,035    |   |          |   | 63,940    |                |   |   | 1,307                     |   |   |   | 1,216 |   |   |   | 1,225 |   |   |   |   |   |   |   | 1.84 | % |   |   | 1.90 | % |
|                                                 |   |                  |      |   |          |   |      |                |   |   |                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Parent company and other, net                        |   |                  | 1,869     |   |          |   | 3,027     |                |   |   | 3,599                     |   |   |   | 2,896 |   |   |   | 3,176 |   |   |   | 3,242 |   |   | n.m. |   |   | n.m. |   |
| Less discontinued operations(8)                      |   |                  |      |   |          |   | (468,101  | )                   |   |   |                      |   |   |   | (8,480 | ) |   |   |   |   |   |   | (5,856 | ) |   |   |   |   |   |   | (1.81 | )% |
|                                                 |   |                  |      |   |          |   |      |                |   |   |                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Consolidated totals relating tocontinuing operations |   | $                     | 3,251,942 |   |          | $      | 3,579,000 |                |   | $      | 148,777                   |   |   | $ | 136,184 |   |   | $ | 340,159 |   |   | $ | 301,662 |   |   |   | 4.58 | % |   |   | 3.81 | % |

| (1)  | Effective March 31, 2010, Bank of Auburn Hills and Paragon Bank & Trust merged with and into Michigan Commerce Bank.  Prior to the merger, Bank of Auburn Hills and Paragon Bank & Trust were wholly-owned subsidiaries of Capitol.                                                                                                                                                                                                                                   |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (2)  | Effective January 29, 2010, Black Mountain Community Bank, Desert Community Bank and Red Rock Community Bank merged with and into Bank of Las Vegas.  Prior to the merger, each of the banks was a wholly-owned subsidiary of Capitol.                                                                                                                                                                                                                                        |
| (3)  | Effective February 19, 2010, Bank of Bellevue, Bank of Everett and Bank of Tacoma merged with and into Issaquah Community Bank.  Upon completion of the merger, the surviving bank was renamed Bank of the Northwest.  Prior to the merger, each of the banks was either a majority-owned subsidiary of Capitol or majority-owned by a bank-development subsidiary in which Capitol holds a controlling interest.                                                   |
| (4)  | Effective March 5, 2010, Bank of Escondido, Sunrise Bank of San Diego and Sunrise Community Bank merged with and into Point Loma Community Bank.  Upon completion of the merger, the surviving bank was renamed Sunrise Bank.  Prior to the merger, each of the banks was either a wholly-owned subsidiary of Capitol or majority-owned by a bank-development subsidiary in which Capitol holds a controlling interest.                                             |
| (5)  | Effective March 22, 2010, Elkhart Community Bank merged with and into Goshen Community Bank.  Upon completion of the merger, the surviving bank was renamed Indiana Community Bank.  Prior to the merger, each of the banks was a wholly-owned subsidiary of Capitol.                                                                                                                                                                                               |
| (6)  | As of December 31, 2009, Community Bank of Rowan (CBR) was a majority-owned subsidiary of Capitol Development Bancorp Limited III (CDBL III) which, due to a change in control effective September 30, 2009, was an unconsolidated affiliate of Capitol.  Effective June 30, 2010, CDBL III transferred its controlling interest in CBR to Capitol in exchange for preferred stock of Capitol and, accordingly, CBR became a consolidated subsidiary of Capitol on that date. |
| (7)  | Effective July 30, 2010, Peoples State Bank and Sunrise Bank of Atlanta merged with and into Bank of Valdosta.  Upon completion of the merger, the surviving bank was renamed Sunrise Bank.  Prior to the merger, each of the banks was either a majority-owned subsidiary of Capitol or majority-owned by a bank-development subsidiary in which Capitol holds a controlling interest.                                                                             |
| (8)  | Includes assets of banks sold in 2010.                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| (9)  | For purposes of this presentation, such merger has been reflected as if it occurred on December 31, 2009.                                                                                                                                                                                                                                                                                                                                                                               |
| n.m. | Not meaningful.                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |

----

----

----

|                                                                           |   | Three Month Period |   |   | Nine Month Period |
|--------------------------------------------------------------------------------|--------|--------------------|--------|--------|-------------------|
|                                                                           |   | 2010               |   |   | 2009(1)           |   |   | 2010 |   |   | 2009(1) |
|                                                                           |   |               |   |   |              |   |   |   |   |   |   |
| Legal fees                                                                     |   | $                  | 1,138  |   |              | $ | 962 |   |   | $ | 3,589 |   |   | $ | 1,945 |
| Other professional fees                                                        |   |               | 582    |   |              |   | 729 |   |   |   | 3,462 |   |   |   | 1,344 |
| Loan and collection expense                                                    |   |               | 976    |   |              |   | 742 |   |   |   | 2,583 |   |   |   | 1,868 |
| Directors' fees                                                                |   |               | 427    |   |              |   | 456 |   |   |   | 1,365 |   |   |   | 1,582 |
| Insurance                                                                      |   |               | 592    |   |              |   | 175 |   |   |   | 1,353 |   |   |   | 472 |
| Advertising                                                                    |   |               | 336    |   |              |   | 410 |   |   |   | 1,215 |   |   |   | 1,229 |
| Paper, printing and supplies                                                   |   |               | 346    |   |              |   | 428 |   |   |   | 1,178 |   |   |   | 1,272 |
| Travel, lodging and meals                                                      |   |               | 377    |   |              |   | 393 |   |   |   | 1,051 |   |   |   | 1,150 |
| Bank services (ATMs, telephone    banking and Internet banking) |   |               | 414    |   |              |   | 517 |   |   |   | 1,046 |   |   |   | 1,671 |
| Communications                                                                 |   |               | 326    |   |              |   | 341 |   |   |   | 1,006 |   |   |   | 1,139 |
| Postage                                                                        |   |               | 218    |   |              |   | 267 |   |   |   | 741 |   |   |   | 804 |
| Taxes other than income taxes                                                  |   |               | 161    |   |              |   | 152 |   |   |   | 528 |   |   |   | 537 |
| Dues and memberships                                                           |   |               | 165    |   |              |   | 179 |   |   |   | 509 |   |   |   | 553 |
| Courier service                                                                |   |               | 159    |   |              |   | 165 |   |   |   | 472 |   |   |   | 485 |
| Contracted labor                                                               |   |               | 95     |   |              |   | 101 |   |   |   | 269 |   |   |   | 163 |
| Publications                                                                   |   |               | 49     |   |              |   | 40 |   |   |   | 150 |   |   |   | 146 |
| Other                                                                          |   |               | 1,557  |   |              |   | 2,011 |   |   |   | 2,660 |   |   |   | 3,210 |
|                                                                           |   |               |   |   |              |   |   |   |   |   |   |   |   |   |   |
| Total                                                                          |   | $                  | 7,918  |   |              | $ | 8,068 |   |   | $ | 23,177 |   |   | $ | 19,570 |

| (1)   |  Excludes amounts related to operations discontinued in 2010. |
|-----------------|--------------------------------------------------------------------|

----

|   | MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION |
|--------|-------------------------------------------------------------|

|                            |   | Total Revenues |   |   | Net Income (Loss)(1) |   |   | Return onAverage Equity(2) |   |   | Return onAverage Assets(2) |   |
|---------------------------------|--------|----------------|--------|--------|----------------------|--------|--------|----------------------------|--------|--------|----------------------------|--------|
|                            |   | 2010           |   |   | 2009                 |   |   | 2010                       |   |   | 2009                       |   |   | 2010 |   |   | 2009 |   |   | 2010 |   |   | 2009 |   |
| Arizona Region:                 |   |           |   |   |                 |   |   |                       |   |   |                       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Bank of Tucson                  |   | $              | 9,268  |   |                 | $      | 9,513  |                       |   | $      | 1,369                      |   |   | $ | 1,467 |   |   |   | 9.64 | % |   |   | 11.04 | % |   |   | 0.84 | % |   |   | 0.97 | % |
| Central Arizona Bank            |   |           | 2,730  |   |                 |   | 3,050  |                       |   |   | (3,461                     | )      |   |   | (4,977 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Southern Arizona Community Bank |   |           | 3,977  |   |                 |   | 3,903  |                       |   |   | 262                        |   |   |   | 237 |   |   |   | 3.52 | % |   |   | 3.51 | % |   |   | 0.36 | % |   |   | 0.35 | % |
| Sunrise Bank of Albuquerque     |   |           | 2,769  |   |                 |   | 3,155  |                       |   |   | (3,030                     | )      |   |   | (1,173 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Sunrise Bank of Arizona         |   |           | 14,721 |   |                 |   | 20,892 |                       |   |   | (34,218                    | )      |   |   | (30,196 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Yuma Community Bank(3)(12)      |   |           |   |   |                 |   | 3,225  |                       |   |   |                       |   |   |   | 372 |   |   |   |   |   |   |   | 7.69 | % |   |   |   |   |   |   | 0.78 | % |
| Arizona Region Total            |   |           | 33,465 |   |                 |   | 43,738 |                       |   |   | (39,078                    | )      |   |   | (34,270 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                            |   |           |   |   |                 |   |   |                       |   |   |                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| California Region:              |   |           |   |   |                 |   |   |                       |   |   |                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Bank of Feather River           |   |           | 1,835  |   |                 |   | 1,560  |                       |   |   | 88                         |   |   |   | (716 | ) |   |   | 1.87 | % |   |   |   |   |   |   | 0.32 | % |   |   |   |   |
| Bank of San Francisco(12)       |   |           | 4,119  |   |                 |   | 3,415  |                       |   |   | 559                        |   |   |   | (973 | ) |   |   | 9.55 | % |   |   |   |   |   |   | 0.89 | % |   |   |   |   |
| Bank of Santa Barbara(4)(12)    |   |           |   |   |                 |   | 2,571  |                       |   |   |                       |   |   |   | (1,300 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Napa Community Bank(12)         |   |           | 2,947  |   |                 |   | 6,801  |                       |   |   | (77                        | )      |   |   | 1,224 |   |   |   |   |   |   |   | 10.26 | % |   |   |   |   |   |   | 1.11 | % |
| Sunrise Bank(8)(13)             |   |           | 10,018 |   |                 |   | 11,187 |                       |   |   | (3,884                     | )      |   |   | (6,955 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| California Region Total         |   |           | 18,919 |   |                 |   | 25,534 |                       |   |   | (3,314                     | )      |   |   | (8,720 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                            |   |           |   |   |                 |   |   |                       |   |   |                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Colorado Region:                |   |           |   |   |                 |   |   |                       |   |   |                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Fort Collins Commerce Bank      |   |           | 4,695  |   |                 |   | 3,860  |                       |   |   | 382                        |   |   |   | 262 |   |   |   | 5.25 | % |   |   | 3.63 | % |   |   | 0.52 | % |   |   | 0.42 | % |
| Larimer Bank of Commerce        |   |           | 4,076  |   |                 |   | 4,030  |                       |   |   | 601                        |   |   |   | 326 |   |   |   | 9.88 | % |   |   | 5.40 | % |   |   | 0.86 | % |   |   | 0.49 | % |
| Loveland Bank of Commerce       |   |           | 1,887  |   |                 |   | 1,531  |                       |   |   | 195                        |   |   |   | (900 | ) |   |   | 4.12 | % |   |   |   |   |   |   | 0.65 | % |   |   |   |   |
| Mountain View Bank of Commerce  |   |           | 2,079  |   |                 |   | 1,711  |                       |   |   | 98                         |   |   |   | (608 | ) |   |   | 1.81 | % |   |   |   |   |   |   | 0.25 | % |   |   |   |   |
| Colorado Region Total           |   |           | 12,737 |   |                 |   | 11,132 |                       |   |   | 1,276                      |   |   |   | (920 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                            |   |           |   |   |                 |   |   |                       |   |   |                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Great Lakes Region:             |   |           |   |   |                 |   |   |                       |   |   |                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Bank of Maumee                  |   |           | 1,818  |   |                 |   | 1,973  |                       |   |   | (1,234                     | )      |   |   | (2,336 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Bank of Michigan                |   |           | 3,388  |   |                 |   | 3,556  |                       |   |   | (335                       | )      |   |   | (505 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Capitol National Bank           |   |           | 7,440  |   |                 |   | 9,281  |                       |   |   | (2,722                     | )      |   |   | (4,005 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Evansville Commerce Bank        |   |           | 2,127  |   |                 |   | 2,640  |                       |   |   | (296                       | )      |   |   | (1,509 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Indiana Community Bank(9)(13)   |   |           | 5,886  |   |                 |   | 6,854  |                       |   |   | (2,514                     | )      |   |   | (3,674 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Michigan Commerce Bank(5)(13)   |   |           | 46,460 |   |                 |   | 55,261 |                       |   |   | (52,241                    | )      |   |   | (60,199 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Ohio Commerce Bank(12)          |   |           | 1,934  |   |                 |   | 2,292  |                       |   |   | 226                        |   |   |   | (560 | ) |   |   | 5.68 | % |   |   |   |   |   |   | 0.78 | % |   |   |   |   |
| Great Lakes Region Total        |   |           | 69,053 |   |                 |   | 81,857 |                       |   |   | (59,116                    | )      |   |   | (72,788 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                            |   |           |   |   |                 |   |   |                       |   |   |                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Midwest Region                  |   |           |   |   |                 |   |   |                       |   |   |                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Adams Dairy Bank(12)            |   |           | 1,681  |   |                 |   | 1,704  |                       |   |   | (36                        | )      |   |   | (587 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Bank of Belleville(12)          |   |           | 1,048  |   |                 |   | 2,839  |                       |   |   | 18                         |   |   |   | (808 | ) |   |   | 1.02 | % |   |   |   |   |   |   | 0.10 | % |   |   |   |   |
| Community Bank of Lincoln(12)   |   |           | 1,508  |   |                 |   | 2,694  |                       |   |   | (872                       | )      |   |   | (1,243 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Summit Bank of Kansas City(4)   |   |           |   |   |                 |   | 2,780  |                       |   |   |                       |   |   |   | (978 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Midwest Region Total            |   |           | 4,237  |   |                 |   | 10,017 |                       |   |   | (890                       | )      |   |   | (3,616 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                            |   |           |   |   |                 |   |   |                       |   |   |                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Nevada Region:                  |   |           |   |   |                 |   |   |                       |   |   |                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 1st Commerce Bank               |   |           | 1,255  |   |                 |   | 1,814  |                       |   |   | (2,979                     | )      |   |   | (2,046 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Bank of Las Vegas(6)(13)        |   |           | 14,501 |   |                 |   | 20,010 |                       |   |   | (33,696                    | )      |   |   | (6,953 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Nevada Region Total             |   |           | 15,756 |   |                 |   | 21,824 |                       |   |   | (36,675                    | )      |   |   | (8,999 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                            |   |           |   |   |                 |   |   |                       |   |   |                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Northeast Region:               |   |           |   |   |                 |   |   |                       |   |   |                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| USNY Bank(12)                   |   |           | 2,712  |   |                 |   | 2,316  |                       |   |   | 560                        |   |   |   | (1,340 | ) |   |   | 17.81 | % |   |   |   |   |   |   | 1.44 | % |   |   |   |   |
|                            |   |           |   |   |                 |   |   |                       |   |   |                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Northwest Region:               |   |           |   |   |                 |   |   |                       |   |   |                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Bank of the Northwest(7)(13)    |   |           | 5,962  |   |                 |   | 7,129  |                       |   |   | (1,105                     | )      |   |   | (7,399 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| High Desert Bank                |   |           | 1,702  |   |                 |   | 1,820  |                       |   |   | (827                       | )      |   |   | (2,726 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Northwest Region Total          |   |           | 7,664  |   |                 |   | 8,949  |                       |   |   | (1,932                     | )      |   |   | (10,125 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                            |   |           |   |   |                 |   |   |                       |   |   |                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Southeast Region:               |   |           |   |   |                 |   |   |                       |   |   |                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Community Bank of Rowan(11)     |   |           | 1,666  |   |                 |   | 4,962  |                       |   |   | 59                         |   |   |   | 459 |   |   |   | 0.76 | % |   |   | 5.73 | % |   |   | 0.05 | % |   |   | 0.47 | % |
| First Carolina State Bank       |   |           | 3,547  |   |                 |   | 4,183  |                       |   |   | (2,410                     | )      |   |   | (976 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Pisgah Community Bank           |   |           | 1,502  |   |                 |   | 1,739  |                       |   |   | (8,691                     | )      |   |   | (1,187 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Sunrise Bank(10)(13)            |   |           | 4,847  |   |                 |   | 6,049  |                       |   |   | (6,452                     | )      |   |   | (5,126 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Southeast Region Total          |   |           | 11,562 |   |                 |   | 16,933 |                       |   |   | (17,494                    | )      |   |   | (6,830 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

|                                         |   | Total Revenues |    |   | Net Income (Loss)(1) |   |    |   | Return onAverage Equity(2) |   | Return onAverage Assets(2) |   |
|----------------------------------------------|--------|----------------|---------|--------|----------------------|--------|---------|--------|----------------------------|--------|----------------------------|--------|
|                                         |   | 2010           |    |   | 2009                 |   |    | 2010   |                       |   | 2009                       |   |   |   | 2010 |   | 2009 |   | 2010 |   | 2009 |   |
| Texas Region:                                |   |           |    |   |                 |   |    |   |                       |   |                       |   |   |   |   |   |   |   |   |   |   |   |
| Bank of Fort Bend                            |   | $              | 1,551   |   |                 | $      | 1,122   |   |                       | $      | (14                        | )      |   | $ | (1,278 | ) |   |   |   |   |   |   |   |   |   |   |
| Bank of Las Colinas                          |   |           | 1,672   |   |                 |   | 1,435   |   |                       |   | (13                        | )      |   |   | (1,162 | ) |   |   |   |   |   |   |   |   |   |   |
| Texas Region Total                           |   |           | 3,223   |   |                 |   | 2,557   |   |                       |   | (27                        | )      |   |   | (2,440 | ) |   |   |   |   |   |   |   |   |   |   |
|                                         |   |           |    |   |                 |   |    |   |                       |   |                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Parent company and other, net                |   |           | 2,557   |   |                 |   | 9,179   |   |                       |   | 5,312                      |   |   |   | (28,934 | ) |   |   |   |   |   |   |   |   |   |   |
| Less discontinued operations                 |   |           | (15,949 | )      |                 |   | (27,857 | )      |                       |   | (9,074                     | )      |   |   | 4,964 |   |   |   |   |   |   |   |   |   |   |   |
|                                         |   |           |    |   |                 |   |    |   |                       |   |                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Consolidated totals forcontinuing operations |   | $              | 165,936 |   |                 | $      | 187,821 |   |                       | $      | (160,452                   | )      |   | $ | (174,018 | ) |   |   |          -- |   |          -- |   |         -- |   |         -- |   |

| (1)  | Excludes net losses attributable to noncontrolling interests.                                                                                                                                                                                                                                                                                                                                                                                 |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (2)  | Annualized for periods presented.                                                                                                                                                                                                                                                                                                                                                                                                             |
| (3)  | Capitol sold its ownership in Yuma Community Bank effective September 21, 2009.  The Bank's operations are included in Capitol's consolidated totals through that date.                                                                                                                                                                                                                                                             |
| (4)  | Bank of Santa Barbara and Summit Bank of Kansas City are majority-owned subsidiaries of Capitol Development Bancorp Limited III (CDBL III), of which Capitol ceased to have majority voting control effective September 30, 2009.  Thus, effective September 30, 2009, those banks and CDBL III ceased to be consolidated subsidiaries of Capitol.                                                                                  |
| (5)  | Effective March 31, 2010, Bank of Auburn Hills and Paragon Bank & Trust merged with and into Michigan Commerce Bank.  Prior to the merger, Bank of Auburn Hills and Paragon Bank & Trust were wholly-owned subsidiaries of Capitol.                                                                                                                                                                                         |
| (6)  | Effective January 29, 2010, Black Mountain Community Bank, Desert Community Bank and Red Rock Community Bank merged with and into Bank of Las Vegas.  Prior to the merger, each of the banks was a wholly-owned subsidiary of Capitol.                                                                                                                                                                                              |
| (7)  | Effective February 19, 2010, Bank of Bellevue, Bank of Everett and Bank of Tacoma merged with and into Issaquah Community Bank.  Upon completion of the merger, the surviving bank was renamed Bank of the Northwest.  Prior to the merger, each of the banks was either a majority-owned subsidiary of Capitol or majority-owned by a bank-development subsidiary in which Capitol holds a controlling interest.         |
| (8)  | Effective March 5, 2010, Bank of Escondido, Sunrise Bank of San Diego and Sunrise Community Bank merged with and into Point Loma Community Bank.  Upon completion of the merger, the surviving bank was renamed Sunrise Bank.  Prior to the merger, each of the banks was either a wholly-owned subsidiary of Capitol or majority-owned by a bank-development subsidiary in which Capitol holds a controlling interest.   |
| (9)  | Effective March 22, 2010, Elkhart Community Bank merged with and into Goshen Community Bank.  Upon completion of the merger, the surviving bank was renamed Indiana Community Bank.  Prior to the merger, each of the banks was a wholly-owned subsidiary of Capitol.                                                                                                                                                     |
| (10) | Effective July 30, 2010, Peoples State Bank and Sunrise Bank of Atlanta merged with and into Bank of Valdosta.  Upon completion of the merger, the surviving bank was renamed Sunrise Bank.  Prior to the merger, each of the banks was either a majority-owned subsidiary of Capitol or majority-owned by a bank-development subsidiary in which Capitol holds a controlling interest.                                   |
| (11) | As of December 31, 2009, Community Bank of Rowan (CBR) was a majority-owned subsidiary of CDBL III which, due to a change in control effective September 30, 2009, was an unconsolidated affiliate of Capitol.  Effective June 30, 2010, CDBL III transferred its controlling interest in CBR to Capitol in exchange for preferred stock of Capitol and, accordingly, CBR became a consolidated subsidiary of Capitol on that date. |
| (12) | Total revenues and net income (loss) of these banks are reflected as discontinued operations.                                                                                                                                                                                                                                                                                                                                            |
| (13) | For purposes of this presentation, such merger has been reflected as if it occurred on December 31, 2009.                                                                                                                                                                                                                                                                                                                                     |

----

----

|                                                |   | Tier 1 Leverage |   |   | Tier 1 Risk-Based   |   |   | Total Risk-Based    |   |   |                         |
|-----------------------------------------------------|--------|-----------------|--------|--------|---------------------|--------|--------|---------------------|--------|--------|------------------------------|
|                                                |   | Ratio(1)(5)     |   |   | Capital Ratio(1)(5) |   |   | Capital Ratio(2)(5) |   |   | Regulatory Classification(3) |
|                                                |   | Sept 30,2010    |   |   | Dec 31,2009         |   |   | Sep 30,2010         |   |   | Dec 31,2009                  |   |   | Sept 30,2010 |   |   | Dec 31,2009 |   |   | Sept 30,2010 |   | Dec 31,2009 |
| Arizona Region:                                     |   |            |   |   |                |   |   |                |   |   |                         |   |   |   |   |   |   |   |   |   |   |   |
| Bank of Tucson                                      |   |            | 5.54   | %      |                |   | 9.67   | %                   |   |   | 9.90                         | % |   |   | 10.78 | % |   |   | 11.15 | % |   |   | 11.86 | % |   | well-capitalized |   | well-capitalized |
| Central Arizona Bank                                |   |            | 2.19   | %      |                |   | 5.13   | %                   |   |   | 2.81                         | % |   |   | 7.13 | % |   |   | 4.10 | % |   |   | 8.42 | % |   | significantly-undercapitalized |   | adequately-capitalized |
| Southern Arizona CommunityBank                      |   |            | 9.39   | %      |                |   | 9.47   | %                   |   |   | 11.69                        | % |   |   | 11.03 | % |   |   | 12.94 | % |   |   | 12.28 | % |   |  well-capitalized |   |  well-capitalized |
| Sunrise Bank of Albuquerque                         |   |            | 2.53   | %      |                |   | 6.27   | %                   |   |   | 3.43                         | % |   |   | 8.07 | % |   |   | 4.70 | % |   |   | 9.33 | % |   | significantly-undercapitalized |   | adequately-capitalized(6) |
| Sunrise Bank of Arizona                             |   |            | 2.03   | %      |                |   | 3.62   | %                   |   |   | 2.70                         | % |   |   | 5.01 | % |   |   | 4.01 | % |   |   | 6.30 | % |   | significantly-undercapitalized |   | undercapitalized |
|                                                |   |            |   |   |                |   |   |                |   |   |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| California Region:                                  |   |            |   |   |                |   |   |                |   |   |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Bank of Feather River(4)                            |   |            | 15.18  | %      |                |   | 18.59  | %                   |   |   | 21.71                        | % |   |   | 25.84 | % |   |   | 22.96 | % |   |   | 27.09 | % |   | well-capitalized |   | well-capitalized |
| Sunrise Bank(10)(14)                                |   |            | 7.59   | %      |                |   | 7.97   | %                   |   |   | 10.25                        | % |   |   | 10.57 | % |   |   | 11.53 | % |   |   | 11.83 | % |   | adequately-capitalized(6) |   | well-capitalized |
|                                                |   |            |   |   |                |   |   |                |   |   |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Colorado Region:                                    |   |            |   |   |                |   |   |                |   |   |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Fort Collins Commerce Bank                          |   |            | 9.62   | %      |                |   | 10.35  | %                   |   |   | 11.78                        | % |   |   | 11.77 | % |   |   | 13.04 | % |   |   | 13.03 | % |   | well-capitalized |   | well-capitalized |
| Larimer Bank of Commerce                            |   |            | 8.94   | %      |                |   | 8.70   | %                   |   |   | 11.07                        | % |   |   | 10.96 | % |   |   | 12.33 | % |   |   | 12.22 | % |   | well-capitalized |   | well-capitalized |
| Loveland Bank of Commerce(4)                        |   |            | 15.78  | %      |                |   | 15.48  | %                   |   |   | 19.04                        | % |   |   | 18.01 | % |   |   | 20.30 | % |   |   | 19.26 | % |   | well-capitalized |   | well-capitalized |
| Mountain View Bank of    Commerce(4) |   |            | 13.46  | %      |                |   | 14.20  | %                   |   |   | 17.38                        | % |   |   | 17.99 | % |   |   | 18.64 | % |   |   | 19.24 | % |   |  well-capitalized |   |  well-capitalized |
|                                                |   |            |   |   |                |   |   |                |   |   |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Great Lakes Region:                                 |   |            |   |   |                |   |   |                |   |   |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Bank of Maumee                                      |   |            | 6.60   | %      |                |   | 8.50   | %                   |   |   | 8.94                         | % |   |   | 10.42 | % |   |   | 10.24 | % |   |   | 11.68 | % |   | well-capitalized |   | well-capitalized |
| Bank of Michigan                                    |   |            | 6.88   | %      |                |   | 7.11   | %                   |   |   | 10.73                        | % |   |   | 11.19 | % |   |   | 11.99 | % |   |   | 12.44 | % |   | well-capitalized |   | well-capitalized |
| Capitol National Bank                               |   |            | 5.67   | %      |                |   | 6.45   | %                   |   |   | 7.26                         | % |   |   | 8.15 | % |   |   | 8.55 | % |   |   | 9.44 | % |   | adequately-capitalized |   | adequately-capitalized(6) |
| Evansville Commerce Bank                            |   |            | 8.58   | %      |                |   | 8.01   | %                   |   |   | 11.95                        | % |   |   | 11.28 | % |   |   | 13.22 | % |   |   | 12.55 | % |   | well-capitalized |   | well-capitalized |
| Indiana Community Bank(11)(14)                      |   |            | 5.33   | %      |                |   | 8.11   | %                   |   |   | 7.92                         | % |   |   | 10.81 | % |   |   | 9.21 | % |   |   | 12.08 | % |   | adequately-capitalized |   | adequately-capitalized(6) |
| Michigan Commerce    Bank(7)(13)(14) |   |            | 2.46   | %      |                |   | 4.03   | %                   |   |   | 3.19                         | % |   |   | 5.00 | % |   |   | 4.50 | % |   |   | 6.30 | % |   |  significantly-undercapitalized |   |  undercapitalized |
|                                                |   |            |   |   |                |   |   |                |   |   |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Nevada Region:                                      |   |            |   |   |                |   |   |                |   |   |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 1st Commerce Bank                                   |   |            | 3.06   | %      |                |   | 7.08   | %                   |   |   | 5.00                         | % |   |   | 8.89 | % |   |   | 6.27 | % |   |   | 10.20 | % |   | undercapitalized |   | well-capitalized |
| Bank of Las Vegas(8)(14)                            |   |            | 2.09   | %      |                |   | 5.08   | %                   |   |   | 2.97                         | % |   |   | 6.25 | % |   |   | 4.28 | % |   |   | 7.51 | % |   | significantly-undercapitalized |   | undercapitalized |
|                                                |   |            |   |   |                |   |   |                |   |   |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Northwest Region:                                   |   |            |   |   |                |   |   |                |   |   |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Bank of the Northwest(9)(14)                        |   |            | 9.91   | %      |                |   | 15.16  | %                   |   |   | 13.42                        | % |   |   | 20.75 | % |   |   | 14.70 | % |   |   | 22.01 | % |   | adequately-capitalized(6) |   | well-capitalized |
| High Desert Bank                                    |   |            | 7.68   | %      |                |   | 8.45   | %                   |   |   | 10.12                        | % |   |   | 11.28 | % |   |   | 11.41 | % |   |   | 12.55 | % |   | adequately-capitalized(6) |   | adequately-capitalized(6) |
|                                                |   |            |   |   |                |   |   |                |   |   |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Southeast Region:                                   |   |            |   |   |                |   |   |                |   |   |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Community Bank of Rowan                             |   |            | 7.00   | %      |                |   | 8.17   | %                   |   |   | 9.82                         | % |   |   | 10.52 | % |   |   | 11.07 | % |   |   | 11.77 | % |   | well-capitalized |   | well-capitalized |
| First Carolina State Bank                           |   |            | 5.01   | %      |                |   | 7.08   | %                   |   |   | 6.96                         | % |   |   | 9.18 | % |   |   | 8.22 | % |   |   | 10.44 | % |   | adequately-capitalized |   | well-capitalized |
| Pisgah Community Bank(4)                            |   |            | 2.66   | %      |                |   | 10.17  | %                   |   |   | 4.76                         | % |   |   | 14.39 | % |   |   | 6.04 | % |   |   | 15.66 | % |   | significantly-undercapitalized |   | well-capitalized |
| Sunrise Bank(12)(14)                                |   |            | 3.16   | %      |                |   | 7.12   | %                   |   |   | 4.91                         | % |   |   | 11.19 | % |   |   | 6.21 | % |   |   | 12.46 | % |   | undercapitalized |   | adequately-capitalized(6) |

----

|                   |   | Tier 1 Leverage |   |   | Tier 1 Risk-Based   |   |   | Total Risk-Based    |   |   |                         |
|------------------------|--------|-----------------|--------|--------|---------------------|--------|--------|---------------------|--------|--------|------------------------------|
|                   |   | Ratio(1)(5)     |   |   | Capital Ratio(1)(5) |   |   | Capital Ratio(2)(5) |   |   | Regulatory Classification(3) |
|                   |   | Sept 30,2010    |   |   | Dec 31,2009         |   |   | Sept 30,2010        |   |   | Dec 31,2009                  |   |   | Sept 30,2010 |   |   | Dec 31,2009 |   |   | Sept 30,2010 |   | Dec 31,2009 |
| Texas Region:          |   |            |   |   |                |   |   |                |   |   |                         |   |   |   |   |   |   |   |   |   |   |   |
| Bank of Fort Bend(4)   |   |            | 14.40  | %      |                |   | 16.05  | %                   |   |   | 19.46                        | % |   |   | 19.76 | % |   |   | 20.72 | % |   |   | 21.01 | % |   | well-capitalized |   | well-capitalized |
| Bank of Las Colinas(4) |   |            | 11.97  | %      |                |   | 12.56  | %                   |   |   | 14.38                        | % |   |   | 16.54 | % |   |   | 15.64 | % |   |   | 17.81 | % |   | well-capitalized |   | well-capitalized |
|                   |   |            |   |   |                |   |   |                |   |   |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Consolidated totals    |   |            | 0.67   | %      |                |   | 4.61   | %                   |   |   | 0.94                         | % |   |   | 5.99 | % |   |   | 1.89 | % |   |   | 9.46 | % |   | undercapitalized |   | adequately-capitalized |

| (1)  | The minimum required Tier 1 leverage ratio and Tier 1 risk-based capital ratio is 4% (8% for de novo institutions).                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (2)  | The minimum required total risk-based capital ratio is 8%.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| (3)  | In order to be classified as a 'well-capitalized' institution, the total risk-based capital ratio must be 10% or more.  To be classified as an 'adequately-capitalized' institution, the total risk-based capital ratio must be between 8% and 10%.  Institutions are classified as 'undercapitalized' when the total risk-based ratio is between 6% and 8% and 'significantly-undercapitalized' when such ratio falls below 6%.  Institutions with a Tier 1 leverage ratio below 2% are classified as 'critically-undercapitalized'. |
| (4)  | A de novo institution which is subject to higher minimum ratio requirements as noted in (1) above for up to the first three years of operations.                                                                                                                                                                                                                                                                                                                                                                                                                    |
| (5)  | Ratios are based on the banks' regulatory reports filed on or before October 30, 2010.                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| (6)  | The institution is subject to a regulatory agreement and, accordingly, cannot be classified better than adequately-capitalized even though the risk-based capital ratios would otherwise suggest well-capitalized classification.                                                                                                                                                                                                                                                                                                                                   |
| (7)  | Effective March 31, 2010, Bank of Auburn Hills and Paragon Bank & Trust merged with and into Michigan Commerce Bank.  Prior to the merger, Bank of Auburn Hills and Paragon Bank & Trust were wholly-owned subsidiaries of Capitol.                                                                                                                                                                                                                                                                                                               |
| (8)  | Effective January 29, 2010, Black Mountain Community Bank, Desert Community Bank and Red Rock Community Bank merged with and into Bank of Las Vegas.  Prior to the merger, each of the banks was a wholly-owned subsidiary of Capitol.                                                                                                                                                                                                                                                                                                                    |
| (9)  | Effective February 19, 2010, Bank of Bellevue, Bank of Everett and Bank of Tacoma merged with and into Issaquah Community Bank.  Upon completion of the merger, the surviving bank was renamed Bank of the Northwest.  Prior to the merger, each of the banks was either a majority-owned subsidiary of Capitol or majority-owned by a bank-development subsidiary in which Capitol holds a controlling interest.                                                                                                                               |
| (10) | Effective March 5, 2010, Bank of Escondido, Sunrise Bank of San Diego and Sunrise Community Bank merged with and into Point Loma Community Bank.  Upon completion of the merger, the surviving bank was renamed Sunrise Bank.  Prior to the merger, each of the banks was either a wholly-owned subsidiary of Capitol or majority-owned by a bank-development subsidiary in which Capitol holds a controlling interest.                                                                                                                         |
| (11) | Effective March 22, 2010, Elkhart Community Bank merged with and into Goshen Community Bank.  Upon completion of the merger, the surviving bank was renamed Indiana Community Bank.  Prior to the merger, each of the banks was a wholly-owned subsidiary of Capitol.                                                                                                                                                                                                                                                                           |
| (12) | Effective July 30, 2010, Peoples State Bank and Sunrise Bank of Atlanta merged with and into Bank of Valdosta.  Upon completion of the merger, the surviving bank was renamed Sunrise Bank.  Prior to the merger, each of the banks was either a majority-owned subsidiary of Capitol or majority-owned by a bank-development subsidiary in which Capitol holds a controlling interest.                                                                                                                                                         |
| (13) | On September 30, 2010, Capitol transferred its Operations and Technology Group with an estimated fair value of approximately $8 million to Michigan Commerce Bank (MCB), pursuant to an order from Michigan's Office of Financial and Insurance Regulation which approved the transaction as a non-cash capital contribution to MCB's surplus and Tier 1 capital.  MCB's regulatory capital position at September 30, 2010 reflects this $8 million addition to Tier 1 capital pursuant to that order.                                                    |
| (14) | For purposes of this presentation, such merger has been reflected as if it occurred on December 31, 2009.                                                                                                                                                                                                                                                                                                                                                                                                                                                           |

----

----

----

|                         |               |   | Sale     |   |   |        |   |
|------------------------------|--------------------|--------|----------|--------|--------|-------------|--------|
|                         | Date Sold          |   | Proceeds |   |   | Gain (Loss) |   |
| Bank of Belleville(1)        | April 27, 2010     |   | $        | 4,990  |   |        | $      | 1,233 |   |
| Napa Community Bank(1)(3)    | April 30, 2010     |   |     | 21,574 |   |        |   | 7,372 |   |
| Ohio Commerce Bank(2)        | June 30, 2010      |   |     | 6,520  |   |        |   | 1,478 |   |
| Community Bank of Lincoln(2) | July 30, 2010      |   |     | 3,750  |   |        |   | 1,268 |   |
| USNY Bank(2)                 | August 20, 2010    |   |     | 2,700  |   |        |   | (271 | ) |
| Adams Dairy Bank(2)          | August 30, 2010    |   |     | 4,335  |   |        |   | 559 |   |
| Bank of San Francisco(1)     | September 27, 2010 |   |     | 6,604  |   |        |   | 1,740 |   |
|                         |               |   |     |   |   |        |   |   |   |
|                         |               |   | $        | 50,473 |   |        | $      | 13,379 |   |

----

----

| Unaudited Pro Forma Condensed Consolidated Balance Sheet                                               |   |        |      |   |         |   |     |   |
|--------------------------------------------------------------------------------------------------------|--------|-------------|-----------|--------|--------------|--------|----------|--------|
| Capitol Bancorp Limited and Subsidiaries                                                               |   |        |      |   |         |   |     |   |   |   |
| September 30, 2010                                                                                     |   |        |      |   |         |   |     |   |   |   |
|                                                                                                   |   |        |      |   |         |   |     |   |   |   |
|  (in $1,000s)                                                                                     |   |        |      |   |         |   |     |   |   |   |
|                                                                                                   |   |        |      |   | Pending      |   |     |   |   |   |
|                                                                                                   |   |        |      |   | Future       |   |     |   |   |   |
|                                                                                                   |   | Historical  |      |   | Sale of Bank |   |     |   |   |   |
|                                                                                                   |   | Amounts     |      |   | Subsidiaries |   |     |   | Pro Forma |   |
|                                                                                                   |   | As Reported |      |   | (Note A)     |   |     |   | Consolidated |   |
|                                                                                                   |   |        |      |   |         |   |     |   |   |   |
|  ASSETS                                                                                           |   |        |      |   |         |   |     |   |   |   |
|                                                                                                   |   |        |      |   |         |   |     |   |   |   |
|  Cash and cash equivalents                                                                        |   | $           | 813,513   |   |         | $      | (94,136  | )      |   |   | $ | 719,377 |   |
|  Loans held for sale                                                                              |   |        | 7,736     |   |         |   | (330     | )      |   |   |   | 7,406 |   |
|  Investment securities                                                                            |   |        | 30,675    |   |         |   | (6,224   | )      |   |   |   | 24,451 |   |
|  Portfolio loans                                                                                  |   |        | 3,251,942 |   |         |   | (493,631 | )      |   |   |   | 2,758,311 |   |
|    Less allowance for loan losses                                                       |   |        | (148,777  | )      |         |   | 9,592    |   |   |   |   | (139,185 | ) |
|    Net portfolio loans                                                                  |   |        | 3,103,165 |   |         |   | (484,039 | )      |   |   |   | 2,619,126 |   |
|  Premises and equipment, net                                                                      |   |        | 42,281    |   |         |   | (3,314   | )      |   |   |   | 38,967 |   |
|  Goodwill                                                                                         |   |        | 66,105    |   |         |   | (916     | )      |   |   |   | 65,189 |   |
|  Other real estate owned                                                                          |   |        | 108,424   |   |         |   | (5,039   | )      |   |   |   | 103,385 |   |
|  Other assets                                                                                     |   |        | 65,689    |   |         |   | (10,302  | )      |   |   |   | 55,387 |   |
|                                                                                                   |   |        |      |   |         |   |     |   |   |   |   |   |   |
|  TOTAL ASSETS                                                                                     |   | $           | 4,237,588 |   |         | $      | (604,300 | )      |   |   | $ | 3,633,288 |   |
|                                                                                                   |   |        |      |   |         |   |     |   |   |   |   |   |   |
|  LIABILITIES AND EQUITY                                                                           |   |        |      |   |         |   |     |   |   |   |   |   |   |
|                                                                                                   |   |        |      |   |         |   |     |   |   |   |   |   |   |
|  Liabilities:                                                                                     |   |        |      |   |         |   |     |   |   |   |   |   |   |
|    Deposits                                                                             |   | $           | 3,796,548 |   |         | $      | (576,235 | )      |   |   | $ | 3,220,313 |   |
|    Debt obligations                                                                     |   |        | 311,832   |   |         |   | (16,482  | )      |   |   |   | 295,350 |   |
|    Other liabilities                                                                    |   |        | 51,524    |   |         |   | (1,324   | )      |   |   |   | 50,200 |   |
|      Total liabilities                                                        |   |        | 4,159,904 |   |         |   | (594,041 | )      |   |   |   | 3,565,863 |   |
|                                                                                                   |   |        |      |   |         |   |     |   |   |   |   |   |   |
|  Equity:                                                                                          |   |        |      |   |         |   |     |   |   |   |   |   |   |
|    Capitol Bancorp Limited stockholders' equity:                                        |   |        |      |   |         |   |     |   |   |   |   |   |   |
|      Preferred stock                                                          |   |        | 5,098     |   |         |   |     |   |   |   |   | 5,098 |   |
|      Common stock                                                             |   |        | 288,031   |   |         |   |     |   |   |   |   | 288,031 |   |
|      Retained earnings (deficit)                                              |   |        | (245,397  | )      |         |   | 6,664    |   | B |   |   | (238,733 | ) |
|      Other, net                                                               |   |        | (360      | )      |         |   |     |   |   |   |   | (360 | ) |
|      Total Capitol Bancorp Limited stockholders' equity                       |   |        | 47,372    |   |         |   | 6,664    |   |   |   |   | 54,036 |   |
|    Noncontrolling interests in consolidated subsidiaries                                |   |        | 30,312    |   |         |   | (16,923  | )      |   |   |   | 13,389 |   |
|      Total equity                                                             |   |        | 77,684    |   |         |   | (10,259  | )      |   |   |   | 67,425 |   |
|                                                                                                   |   |        |      |   |         |   |     |   |   |   |   |   |   |
|  TOTAL LIABILITIES AND EQUITY                                                                     |   | $           | 4,237,588 |   |         | $      | (604,300 | )      |   |   | $ | 3,633,288 |   |
|                                                                                                   |   |        |      |   |         |   |     |   |   |   |   |   |   |
|                                                                                                   |   |        |      |   |         |   |     |   |   |   |   |   |   |
|  Nonperforming loans                                                                              |   | $           | 340,159   |   |         | $      | (19,654  | )      |   |   | $ | 320,505 |   |
|  Real estate owned and other repossessed assets                                                   |   |        | 108,425   |   |         |   | (5,039   | )      |   |   |   | 103,386 |   |
|    Total nonperforming assets                                                           |   | $           | 448,584   |   |         | $      | (24,693  | )      |   |   | $ | 423,891 |   |
|                                                                                                   |   |        |      |   |         |   |     |   |   |   |   |   |   |
|  Selected capital ratios:                                                                         |   |        |      |   |         |   |     |   |   |   |   |   |   |
|    Total equity as a percentage of total assets                                         |   |        | 1.83      | %      |         |   |     |   |   |   |   | 1.86 | % |
|    Total capital as a percentage of total assets--Note C                                |   |        | 5.79      | %      |         |   |     |   |   |   |   | 6.47 | % |
|                                                                                                   |   |        |      |   |         |   |     |   |   |   |   |   |   |
| Notes to Unaudited Pro Forma Condensed Consolidated Balance Sheet:                                     |   |        |      |   |         |   |
|                                                                                                   |   |        |      |   |         |   |     |   |   |   |   |   |   |
| A--Pending future sale of 1st Commerce Bank, Bank of Fort Bend, Bank of Tucson-Tucson location,        |   |
|   Evansville Commerce Bank, Fort Collins Commerce Bank, Larimer Bank of Commerce, Loveland        |   |
|   Bank of Commerce and Southern Arizona Community Bank.                                           |   |        |      |   |         |   |     |   |   |   |
|                                                                                                   |   |        |      |   |         |   |     |   |   |   |   |   |   |
| B--Estimated gain on pending sale of banks (see Note A), less transaction expenses. Sale proceeds |   |
|    are estimated to approximate $50.3 million.                                               |   |        |      |   |         |   |     |   |   |   |   |   |   |
|                                                                                                   |   |        |      |   |         |   |     |   |   |   |   |   |   |
| C--Total capital includes trust-preferred securities (subordinated debentures) and total equity.       |   |
|                                                                                                   |   |        |      |   |         |   |     |   |   |   |   |   |   |

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----

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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, 2009 during the nine months ended September 30, 2010.  Refer to that section of Capitol's Form 10-K for disclosures regarding the risks and uncertainties related to Capitol's business. In addition to the foregoing, additional risk factors in the current operating environment exist: During interim periods of 2010, Capitol has incurred significant net losses from operations, primarily resulting from additional loan losses associated with a continuing uncertain economy and operating environment.  Those operating losses have resulted in a significant erosion of capital and regulatory matters which are discussed elsewhere in this document. Capitol's ability to continue to operate as a going concern is contingent upon a number of factors which include, but are not limited to, the following:                  ·  Significant proceeds from pending future bank sales to enable timely deployment to improve capital adequacy at remaining bank                             subsidiaries, in addition to raising additional capital from other sources at the parent-company level;                 ·  Future abatement of loan losses and losses associated with other nonperforming assets;                 ·  Future reduction in operating expenses;                 ·  Future improvement in net interest margin and sources of noninterest income; and                 ·  Future conversion of nonperforming assets into earning assets.  |
| 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.       | [Removed and Reserved.]                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| Item 5.  | Other Information.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|          | On November 15, 2010, following prior approval by the Compensation Committee of the Board of Directors, the employment agreements with the following three named executive officers (the NEOs) of Capitol were amended and restated in substantially the same identical form of amended and restated employment agreements, a copy of which filed hereto as Exhibit 10.1 and incorporated herein by reference:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |

| Name of NEO        |   | Title                        |   | Date              |
|--------------------|--------|------------------------------|--------|-------------------|
|               |   |                         |   |              |
| Cristin K. Reid    |   | Corporate President          |   | November 15, 2010 |
| Lee W. Hendrickson |   | Chief Financial Officer      |   | November 15, 2010 |
| Bruce A. Thomas    |   | President of Bank Operations |   | November 15, 2010 |

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| Item 5. | Other Information. – Continued The NEO's entered into the amended and restated employment agreements at the request of Capitol to provide for greater uniformity concerning the employment agreements for Capitol's executive officers and to update the prior employment agreements to reflect changes in law.  The amended and restated employment agreements with the NEOs maintain substantially all of the same employment terms as prior employment agreements with the NEOs.  Capitol also entered into amended and restated employment agreements with its other executive officers and those agreements are similar in all material respects to those described herein for the NEOs. The amended and restated employment agreements incorporate the current salary level of each NEO and include several additional terms that are beneficial to Capitol when compared to the previous employment agreements including: ·  a 36 month term rather than the 60 month term as set forth in the prior employment agreements; ·  a double trigger provision for any payments made in connection with a change of control (the previous employment agreements with the NEOs could be terminated by the NEO upon a change of control for which the NEO would also be entitled to receive a severance payment); ·  a provision providing for the recoupment of incentive compensation if Capitol's board of directors, or an appropriate committee thereof, determines that any fraud, negligence or intentional misconduct by the NEO is a significant contributing factor to Capitol having to restate all or a portion of its consolidated financial statements, pursuant to which Capitol's board of directors or applicable committee may require reimbursement of any bonus or incentive compensation previously paid to the NEO; and ·  a requirement that the NEO sign a general release of Capitol prior to the payment of any severance amount upon termination of employment. Pursuant to the amended and restated employment agreements, Capitol agreed to employ the NEOs for a term of 36 months beginning on November 15, 2010, each in their current respective positions.  Under those agreements for the NEOs, on each anniversary date of the agreement, the employment period will be automatically extended for an additional year, unless Capitol has provided prior notice to the NEO that the term will not be extended further. The foregoing description of the amended and restated employment agreements for each of the NEOs is not complete and is qualified in its entirety by reference to the agreements, the form of which is filed as Exhibit 10.1 hereto and incorporated herein by reference.  |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| Item 6. | Exhibits: |
|---------|-----------|

| (a)         | (b)                                                                                                                          |
|-------------|------------------------------------------------------------------------------------------------------------------------------|
| Exhibit No. | Description of Exhibit                                                                                                       |
| 10.1        | Form of Employment Agreement                                                                                            |
| 31.1        | Certification of Chief Executive Officer, Joseph D. Reid,pursuant to Section 302 of the Sarbanes-Oxley Act of2002.      |
| 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 of2002.      |
| 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)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Date:  November 15, 2010  | /s/ Joseph D. Reid                                                                        Joseph D. Reid            Chairman and CEO(principal executive officer)   |
| Date:  November 15, 2010  | /s/ Lee W. Hendrickson                                                                              Lee W. Hendrickson(principal financial officer/  principal accounting officer)           |

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| Exhibit No. | Description of Exhibit                                                                                                   |
|-------------|-------------------------------------------------------------------------------------------------------------------------------|
| 10.1        | Form of Employment Agreement.                                                                                            |
| 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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