----

----

| T      | QUARTERLY      REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE                  |
|--------|-------------------------------------------------------------------------------|
|   | SECURITIES      EXCHANGE ACT OF 1934                                          |
|   | For      the quarterly period ended March 31, 2009                            |
|   | OR                                                                            |
| £ | TRANSITION      REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE                 |
|   | SECURITIES      EXCHANGE ACT OF 1934                                          |
|   |                                                                          |
|   | For      the transition period from ________________ to      ________________ |

| Michigan                                      |   | 38-2761672                             |
|-----------------------------------------------|--------|----------------------------------------|
| (State      or other jurisdiction of          |   | (IRS      Employer Identification No.) |
| incorporation      or organization)           |   |                                   |
| Capitol      Bancorp Center                   |   |                                   |
| 200      N. Washington Square                 |   |                                   |
| Lansing,      Michigan                        |   | 48933                                  |
| (Address      of principal executive offices) |   | (Zip      Code)                        |

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

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

| Class                           |   | Outstanding      at April 17, 2009 |
|---------------------------------|--------|------------------------------------|
| Common      Stock, No par value |   | 17,289,974      shares             |

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

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

----

|  Item      1.       |  Financial      Statements (unaudited):                                                                                  | Page     |
|--------------------------|-------------------------------------------------------------------------------------------------------------------------------|----------|
|                     | Condensed      consolidated balance sheets – March 31, 2009 and December 31,      2008.                                 | 3        |
|                     | Condensed      consolidated statements of operations – Three months ended March      31,2009      and 2008.             | 4        |
|                     | Condensed      consolidated statements of changes in equity – Three months      endedMarch      31, 2009 and 2008. | 5        |
|                     | Condensed      consolidated statements of cash flows – Three months ended March      31,2009      and 2008.             | 6        |
|                     | Notes      to condensed consolidated financial statements.                                                                    | 7        |
| Item      2.             | Management's      Discussion and Analysis of Financial Condition and Results of      Operations.                              | 15       |
| Item      3.             | Quantitative      and Qualitative Disclosures About Market Risk.                                                              | 30       |
| Item      4.             | Controls      and Procedures.                                                                                                 | 30       |
|  PART      II.      |  OTHER      INFORMATION                                                                                                  |     |
|  Item      1.       |  Legal      Proceedings.                                                                                                 |  31 |
| Item      1A.            | Risk      Factors.                                                                                                            | 31       |
| Item      2.             | Unregistered      Sales of Equity Securities and Use of Proceeds.                                                             | 31       |
| Item      3.             | Defaults      Upon Senior Securities.                                                                                         | 31       |
| Item      4.             | Submission      of Matters to a Vote of Security Holders.                                                                     | 31       |
| Item      5.             | Other      Information.                                                                                                       | 31       |
| Item      6.             | Exhibits.                                                                                                                     | 31       |
|  SIGNATURES         |                                                                                                                          |  32 |
|  EXHIBIT      INDEX |                                                                                                                          |  33 |

----

| PART      I, ITEM 1                                                                                        |                                    |
|------------------------------------------------------------------------------------------------------------|-----------------------------------------|
|                                                                                                       |                                    |   |   |   |   |   |   |
| CAPITOL      BANCORP LIMITED                                                                               |                                    |
| Condensed      Consolidated Balance Sheets                                                                 |                                    |
| As      of March 31, 2009 and December 31, 2008                                                            |                                    |
| (in      thousands, except share data)                                                                     |                                    |
|                                                                                                       |                                    |   |   |   |   |   |   |
|                                                                                                       |                                    |   | (Unaudited) |   |   |   |   |
|                                                                                                       |                                    |   | March      31, |   |   | December      31, |   |
|                                                                                                       |                                    |   | 2009 |   |   | 2008 |   |
| ASSETS                                                                                                     |                                    |   |   |   |   |   |   |
| Cash      and due from banks                                                                               |                                    |   | $ | 116,212 |   |   | $ | 136,499 |   |
| Money      market and interest-bearing deposits                                                            |                                    |   |   | 601,650 |   |   |   | 391,836 |   |
| Federal      funds sold                                                                                    |                                    |   |   | 43,413 |   |   |   | 96,031 |   |
|                                                                                                       | Cash      and cash equivalents          |   |   | 761,275 |   |   |   | 624,366 |   |
| Loans      held for sale                                                                                   |                                    |   |   | 24,979 |   |   |   | 10,474 |   |
| Investment      securities -- Note C:                                                                      |                                    |   |   |   |   |   |   |   |   |
|    Available      for sale, carried at market value                                         |                                    |   |   | 16,093 |   |   |   | 15,584 |   |
|    Held      for long-term investment, carried at                                           |                                    |   |   |   |   |   |   |   |   |
|      amortized      cost which approximates fair value                            |                                    |   | 32,754 |   |   |   | 32,856 |   |
|                                                                                                       | Total      investment securities        |   |   | 48,847 |   |   |   | 48,440 |   |
| Portfolio      loans:                                                                                      |                                    |   |   |   |   |   |   |   |   |
|    Loans      secured by real estate:                                                       |                                    |   |   |   |   |   |   |   |   |
|    Commercial                                                                               |                                    |   |   | 2,148,650 |   |   |   | 2,115,515 |   |
|    Residential      (including multi-family)                                                |                                    |   |   | 912,692 |   |   |   | 879,754 |   |
|    Construction,      land development and other land                                       |                                    |   | 729,316 |   |   |   | 797,486 |   |
|                                                                                                       | Total      loans secured by real estate |   |   | 3,790,658 |   |   |   | 3,792,755 |   |
|    Commercial      and other business-purpose loans                                         |                                    |   | 815,138 |   |   |   | 845,593 |   |
|    Consumer                                                                                 |                                    |   |   | 56,810 |   |   |   | 61,340 |   |
|    Other                                                                                    |                                    |   |   | 32,711 |   |   |   | 35,541 |   |
|                                                                                                       | Total      portfolio loans              |   |   | 4,695,317 |   |   |   | 4,735,229 |   |
|    Less      allowance for loan losses                                                      |                                    |   |   | (99,629 | ) |   |   | (93,040 | ) |
|                                                                                                       | Net      portfolio loans                |   |   | 4,595,688 |   |   |   | 4,642,189 |   |
| Premises      and equipment                                                                                |                                    |   |   | 56,975 |   |   |   | 59,249 |   |
| Accrued      interest income                                                                               |                                    |   |   | 18,346 |   |   |   | 18,871 |   |
| Goodwill                                                                                                   |                                    |   |   | 72,270 |   |   |   | 72,342 |   |
| Other      real estate owned                                                                               |                                    |   |   | 86,837 |   |   |   | 67,171 |   |
| Other      assets                                                                                          |                                    |   |   | 117,391 |   |   |   | 111,734 |   |
|                                                                                                       |                                    |   |   |   |   |   |   |   |   |
|             TOTAL      ASSETS                  |                                    |   | $ | 5,782,608 |   |   | $ | 5,654,836 |   |
|                                                                                                       |                                    |   |   |   |   |   |   |   |   |
| LIABILITIES AND EQUITY                                                                                     |                                    |   |   |   |   |   |   |   |   |
| LIABILITIES:                                                                                               |                                    |   |   |   |   |   |   |   |   |
| Deposits:                                                                                                  |                                    |   |   |   |   |   |   |   |   |
|    Noninterest-bearing                                                                      |                                    |   | $ | 689,815 |   |   | $ | 700,786 |   |
|    Interest-bearing                                                                         |                                    |   |   | 4,016,747 |   |   |   | 3,796,826 |   |
|                                                                                                       | Total      deposits                     |   |   | 4,706,562 |   |   |   | 4,497,612 |   |
| Debt      obligations:                                                                                     |                                    |   |   |   |   |   |   |   |   |
|    Notes      payable and short-term borrowings                                             |                                    |   | 392,420 |   |   |   | 446,925 |   |
|    Subordinated      debentures -- Note G                                                   |                                    |   |   | 167,330 |   |   |   | 167,293 |   |
|                                                                                                       | Total      debt obligations             |   |   | 559,750 |   |   |   | 614,218 |   |
| Accrued      interest on deposits and other liabilities                                                    |                                    |   | 26,684 |   |   |   | 29,938 |   |
|                                                                                                       | Total      liabilities                  |   |   | 5,292,996 |   |   |   | 5,141,768 |   |
|                                                                                                       |                                    |   |   |   |   |   |   |   |   |
| EQUITY:                                                                                                    |                                    |   |   |   |   |   |   |   |   |
| Capitol      Bancorp Limited stockholders' equity:                                                         |                                    |   |   |   |   |   |   |   |   |
|   Preferred      stock, 20,000,000 shares authorized;                                            |                                    |   |   |   |   |   |   |   |
|     none      issued and outstanding                                                   |                                    |   |   |   |   |   |   |   |   |
|   Common      stock, no par value,  50,000,000 shares    authorized;                   |                                    |   |   |   |   |   |   |   |
|  issued      and outstanding:       2009 - 17,290,623      shares  |                                    |   |   |   |   |   |   |   |
|         2008      - 17,293,908 shares                                                            |                                    |   | 274,178 |   |   |   | 274,018 |   |
|   Retained      earnings                                                                         |                                    |   |   | 63,746 |   |   |   | 80,255 |   |
|   Undistributed      common stock held by employee-benefit trust                                 |                                    |   | (569 | ) |   |   | (569 | ) |
|   Fair      value adjustment (net of tax effect) for investment                                  |                                    |   |   |   |   |   |   |   |
|      securities      available for sale (accumulated other                        |                                    |   |   |   |   |   |   |   |
|      comprehensive      income)                                                   |                                    |   |   | 136 |   |   |   | 144 |   |
| Total      Capitol Bancorp Limited stockholders' equity                                                    |                                    |   | 337,491 |   |   |   | 353,848 |   |
| Noncontrolling      interests                                                                              |                                    |   |   | 152,121 |   |   |   | 159,220 |   |
|                                                                                                       | Total      equity                       |   |   | 489,612 |   |   |   | 513,068 |   |
|                                                                                                       |                                    |   |   |   |   |   |   |   |   |
|             TOTAL      LIABILITIES AND EQUITY  |                                    | $ | 5,782,608 |   |   | $ | 5,654,836 |   |
|                                                                                                       |                                    |   |   |   |   |   |   |   |   |
| See      notes to condensed consolidated financial statements.                                             |                                    |   |   |   |   |   |   |   |

----

| CAPITOL      BANCORP LIMITED                                                                                                                                                                                                                             |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| Condensed      Consolidated Statements of Operations (Unaudited)                                                                                                                                                                                         |   |
| For      the Three Months Ended March 31, 2009 and 2008                                                                                                                                                                                                  |   |
| (in      thousands, except per share data)                                                                                                                                                                                                               |   |
|                                                                                                                                                                                                                                                     |   |   |   |
|                                                                                                                                                                                                                                                     |   | 2009 |   |   | 2008 |   |
| Interest      income:                                                                                                                                                                                                                                    |   |   |   |   |   |   |
|   Portfolio      loans (including fees)                                                                                                                                                                                                        |   | $ | 68,076 |   |   | $ | 77,331 |   |
|   Loans      held for sale                                                                                                                                                                                                                     |   |   | 217 |   |   |   | 300 |   |
|   Taxable      investment securities                                                                                                                                                                                                           |   |   | 152 |   |   |   | 133 |   |
|   Federal      funds sold                                                                                                                                                                                                                      |   |   | 35 |   |   |   | 1,213 |   |
|   Other                                                                                                                                                                                                                                        |   |   | 236 |   |   |   | 526 |   |
|                                 Total      interest income                               |   |   | 68,716 |   |   |   | 79,503 |   |
| Interest      expense:                                                                                                                                                                                                                                   |   |   |   |   |   |   |   |   |
|   Deposits                                                                                                                                                                                                                                     |   |   | 24,872 |   |   |   | 30,688 |   |
|   Debt      obligations and other                                                                                                                                                                                                              |   |   | 6,387 |   |   |   | 6,880 |   |
|                                 Total      interest expense                              |   |   | 31,259 |   |   |   | 37,568 |   |
|                                 Net      interest income                                 |   |   | 37,457 |   |   |   | 41,935 |   |
| Provision      for loan losses                                                                                                                                                                                                                           |   |   | 28,172 |   |   |   | 8,958 |   |
|                                 Net      interest income after provision for loan losses |   |   |  9,285 |   |   |   |  32,977 |   |
| Noninterest      income:                                                                                                                                                                                                                                 |   |   |   |   |   |   |   |   |
|   Service      charges on deposit accounts                                                                                                                                                                                                     |   |   | 1,502 |   |   |   | 1,333 |   |
|   Trust      and wealth-management revenue                                                                                                                                                                                                     |   |   | 1,388 |   |   |   | 1,645 |   |
|   Fees      from origination of non-portfolio residential mortgage    loans                                                                                                                                                                    |   |   | 902 |   |   |   | 921 |   |
|   Gain      on sales of government-guaranteed loans                                                                                                                                                                                            |   |   | 240 |   |   |   | 580 |   |
|   Realized      gains on sale of investment securities available for sale                                                                                                                                                                      |   |   | 1 |   |   |   | 43 |   |
|   Other                                                                                                                                                                                                                                        |   |   | 924 |   |   |   | 2,043 |   |
|                                      Total noninterest income                                 |   |   | 4,957 |   |   |   | 6,565 |   |
| Noninterest      expense:                                                                                                                                                                                                                                |   |   |   |   |   |   |   |   |
|   Salaries      and employee benefits                                                                                                                                                                                                          |   |   | 29,053 |   |   |   | 25,548 |   |
|   Occupancy                                                                                                                                                                                                                                    |   |   | 4,891 |   |   |   | 4,404 |   |
|   Equipment      rent, depreciation and maintenance                                                                                                                                                                                            |   |   | 3,433 |   |   |   | 2,866 |   |
|   Costs      associated with foreclosed properties and other real                                                                                                                                                                              |   |   |   |   |   |   |   |   |
|      estate      owned                                                                                                                                                                                                          |   |   | 2,407 |   |   |   | 911 |   |
|   FDIC      insurance premiums and other regulatory fees                                                                                                                                                                                       |   |   | 2,114 |   |   |   | 937 |   |
|   Other                                                                                                                                                                                                                                        |   |   | 8,097 |   |   |   | 10,139 |   |
|                                      Total noninterest expense                                |   |   | 49,995 |   |   |   | 44,805 |   |
|                                      Loss before income taxes                                 |   |   | (35,753 | ) |   |   | (5,263 | ) |
| Income      taxes benefit                                                                                                                                                                                                                                |   |   | (12,848 | ) |   |   | (1,995 | ) |
|                                 NET      LOSS                                            |   |   | (22,905 | ) |   |   | (3,268 | ) |
| Less      net losses attributable to noncontrolling interests                                                                                                                                                                                            |   |   | 7,233 |   |   |   | 5,459 |   |
|                                                                                                                                                                                                                                                     |   |   |   |   |   |   |   |   |
|       NET      INCOME (LOSS) ATTRIBUTABLE TO                                                                                                                                                                               |   |   |   |   |   |   |   |   |
|       CAPITOL      BANCORP LIMITED                                                                                                                                                                                         |   | $ | (15,672 | ) |   | $ | 2,191 |   |
|                                                                                                                                                                                                                                                     |   |   |   |   |   |   |   |   |
|       NET      INCOME (LOSS) PER SHARE ATTRIBUTABLE                                                                                                                                                                        |   |   |   |   |   |   |   |   |
|       TO      CAPITOL BANCORP LIMITED -- Note F:                                                                                                                                                                           |   |   |   |   |   |   |   |   |
|                                      Basic                                                    |   | $ | (0.91 | ) |   | $ | 0.13 |   |
|                                                                                                                                                                                                                                                     |   |   |   |   |   |   |   |   |
|                                      Diluted                                                  |   | $ | (0.91 | ) |   | $ | 0.13 |   |
|                                                                                                                                                                                                                                                     |   |   |   |   |   |   |   |   |
| See      notes to condensed consolidated financial statements.                                                                                                                                                                                           |   |   |   |   |   |   |   |   |

----

| CAPITOL      BANCORP LIMITED                                                  |                                              |
|-------------------------------------------------------------------------------|---------------------------------------------------|
| Condensed      Consolidated Statements of Changes in Equity (Unaudited)       |                                              |
| For      the Three Months Ended March 31, 2009 and 2008                       |                                              |
| (in      thousands, except share and per share data)                          |                                              |
|                                                                          |                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                          |                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                          | Capitol      Bancorp Limited Stockholders' Equity |   |   |   |   |   |   |
|                                                                          |                                              |   |   |   |   | Undistributed |   | Accumulated |   | Total      Capitol |   |   |   |   |   |
|                                                                          |                                              |   |   |   |   | Common      Stock |   | Other |   | Bancorp      Limited |   |   |   |   |   |
|                                                                          |                                              | Common |   | Retained |   | Held      by Employee- |   | Comprehensive |   | Stockholders' |   | Noncontrolling |   | Total |   |
|                                                                          |                                              | Stock |   | Earnings |   | Benefit      Trust |   | Income |   | Equity |   | Interests |   | Equity |   |
|                                                                          |                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Three      Months Ended March 31, 2008                                        |                                              |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                          |                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balances      at January 1, 2008                                              |                                              | $ | 272,208 |   | $ | 117,520 |   | $ | (586 | ) | $ | 3 |   | $ | 389,145 |   | $ | 156,198 |   | $ | 545,343 |   |
|                                                                          |                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Noncontrolling      investment in formation of subsidiaries                   |                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 13,786 |   |   | 13,786 |   |
|                                                                          |                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Issuance      of 3,174 shares of common stock upon exercise                   |                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    of      stock options                                       |                                              |   | 54 |   |   |   |   |   |   |   |   |   |   |   | 54 |   |   |   |   |   | 54 |   |
|                                                                          |                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Surrender      of 13,489 shares of common stock to facilitate                 |                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    vesting      of restricted stock                            |                                              |   | (271 | ) |   |   |   |   |   |   |   |   |   |   | (271 | ) |   |   |   |   | (271 | ) |
|                                                                          |                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Issuance      of 12,812 unvested shares of restricted common                  |                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|         stock, net of related unearned employee compensation        |                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    and      2,000 forfeited shares                             |                                              |   | -- |   |   |   |   |   |   |   |   |   |   |   | -- |   |   |   |   |   | -- |   |
|                                                                          |                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Recognition      of compensation expense relating to restricted               |                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    common      stock and stock options                         |                                              |   | 589 |   |   |   |   |   |   |   |   |   |   |   | 589 |   |   |   |   |   | 589 |   |
|                                                                          |                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Tax      benefit from share-based payments                                    |                                              |   | (4 | ) |   |   |   |   |   |   |   |   |   |   | (4 | ) |   |   |   |   | (4 | ) |
|                                                                          |                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Transfer      of 205 shares to employee stock ownership plan                  |                                              |   | (2 | ) |   |   |   |   | 6 |   |   |   |   |   | 4 |   |   |   |   |   | 4 |   |
|                                                                          |                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash      dividends paid ($0.25 per share)                                    |                                              |   |   |   |   | (4,330 | ) |   |   |   |   |   |   |   | (4,330 | ) |   |   |   |   | (4,330 | ) |
|                                                                          |                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Components      of comprehensive loss:                                        |                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      income (loss)                                                        |                                              |   |   |   |   | 2,191 |   |   |   |   |   |   |   |   | 2,191 |   |   | (5,459 | ) |   | (3,268 | ) |
| Fair      value adjustment for investment securities                          |                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| available      for sale (net of income tax effect)                            |                                              |   |   |   |   |   |   |   | 55 |   |   | 55 |   |   |   |   |   | 55 |   |
|          Comprehensive      loss |                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (3,213 | ) |
|                                                                          |                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     BALANCES      AT MARCH 31, 2008                       |                                              | $ | 272,574 |   | $ | 115,381 |   | $ | (580 | ) | $ | 58 |   | $  | 387,433 |   | $ | 164,525 |   | $ | 551,958 |   |
|                                                                          |                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Three      Months Ended March 31, 2009                                        |                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                          |                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balances      at January 1, 2009                                              |                                              | $ | 274,018 |   | $ | 80,255 |   | $ | (569 | ) | $ | 144 |   | $ | 353,848 |   | $ | 159,220 |   | $ | 513,068 |   |
|                                                                          |                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Sale      of subsidiary shares to noncontrolling interests                    |                                              |   | 27 |   |   |   |   |   |   |   |   | 27 |   |   | 134 |   |   | 161 |   |
|                                                                          |                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Surrender      of 3,285 shares of common stock to facilitate                  |                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    vesting      of restricted stock                            |                                              |   | (19 | ) |   |   |   |   |   |   |   |   |   |   | (19 | ) |   |   |   |   | (19 | ) |
|                                                                          |                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Recognition      of compensation expense relating to restricted               |                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    common      stock and stock options                         |                                              |   | 283 |   |   |   |   |   |   |   |   |   |   |   | 283 |   |   |   |   |   | 283 |   |
|                                                                          |                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Tax      benefit from share-based payments                                    |                                              |   | (104 | ) |   |   |   |   |   |   |   |   |   |   | (104 | ) |   |   |   |   | (104 | ) |
|                                                                          |                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash      dividends paid ($0.05 per share)                                    |                                              |   |   |   |   | (864 | ) |   |   |   |   |   |   |   | (864 | ) |   |   |   |   | (864 | ) |
|                                                                          |                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Components      of comprehensive loss:                                        |                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      loss                                                                 |                                              |   |   |   |   | (15,672 | ) |   |   |   |   |   |   |   | (15,672 | ) |   | (7,233 | ) |   | (22,905 | ) |
| Fair      value adjustment for investment securities                          |                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| available      for sale (net of income tax effect)                            |                                              |   |   |   |   |   |   |   | (8 | ) |   | (8 | ) |   |   |   |   | (8 | ) |
|          Comprehensive      loss |                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (22,913 | ) |
|                                                                          |                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     BALANCES      AT MARCH 31, 2009                       |                                              | $ | 274,178 |   | $ | 63,746 |   | $ | (569 | ) | $ | 136 |   | $ | 337,491 |   | $ | 152,121 |   | $ | 489,612 |   |
|                                                                          |                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                          |                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| See      notes to condensed consolidated financial statements.                |                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

| CAPITOL      BANCORP LTD.                                                                                                                       |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| Condensed      Consolidated Statements of Cash Flows (Unaudited)                                                                                |   |
| For      the Three Months Ended March 31, 2009 and 2008                                                                                         |   |
| (in      thousands)                                                                                                                             |   |
|                                                                                                                                            |   |   |   |   |   |   |
|                                                                                                                                            |   | 2009 |   |   | 2008 |   |
|                                                                                                                                            |   |   |   |   |   |   |
| OPERATING      ACTIVITIES                                                                                                                       |   |   |   |   |   |   |
|   Net      loss                                                                                                                       |   | $ | (22,905 | ) |   | $ | (3,268 | ) |
|   Adjustments      to reconcile net loss to net cash used                                                                             |   |   |   |   |   |   |   |   |
|     by      operating activities:                                                                                           |   |   |   |   |   |   |   |   |
|       Provision      for loan losses                                                                              |   |   | 28,172 |   |   |   | 8,958 |   |
|       Depreciation      of premises and equipment                                                                 |   |   | 2,965 |   |   |   | 2,450 |   |
|       Amortization      of intangibles                                                                            |   |   | 122 |   |   |   | 113 |   |
|       Net      amortization (accretion) of investment security                                                    |   |   |   |   |   |   |   |   |
|          premiums      (discounts)                                                                 |   |   | (20 | ) |   |   | 10 |   |
|       Loss      on sale of premises and equipment                                                                 |   |   | 16 |   |   |   | 4 |   |
|       Gain      on sales of government-guaranteed loans                                                           |   |   | (240 | ) |   |   | (580 | ) |
|       Realized      gains on sales of investment securities available                                             |   |   |   |   |   |   |   |   |
|          for      sale                                                                             |   |   | (1 | ) |   |   | (43 | ) |
|       Loss      on sale of other real estate owned                                                                |   |   | 500 |   |   |   | 5 |   |
|       Write-downs      of other real estate owned                                                                 |   |   | 1,928 |   |   |   | 714 |   |
|       Amortization      of issuance costs of subordinated debentures                                              |   |   | 37 |   |   |   | 23 |   |
|       Share-based      compensation expense                                                                       |   |   | 283 |   |   |   | 589 |   |
|   Originations      and purchases of loans held for sale                                                                              |   |   | (79,757 | ) |   |   | (51,216 | ) |
|   Proceeds      from sales of loans held for sale                                                                                     |   |   | 65,252 |   |   |   | 50,414 |   |
|   Increase      in accrued interest income and other assets                                                                           |   |   | (4,635 | ) |   |   | (7,764 | ) |
|        Decrease in accrued interest expense on deposits and                                                                                |   |   |   |   |   |
|      other      liabilities                                                                                            |   |   | (3,254 | ) |   |   | (1,387 | ) |
|                                                                                                                                            |   |   |   |   |   |   |   |   |
|                 NET      CASH USED BY OPERATING ACTIVITIES      |   |   | (11,537 | ) |   |   | (978 | ) |
|                                                                                                                                            |   |   |   |   |   |   |   |   |
| INVESTING      ACTIVITIES                                                                                                                       |   |   |   |   |   |   |   |   |
|   Proceeds      from sales of investment securities available for sale                                                                |   |   |   |   |   |   | 883 |   |
|        Proceeds from calls, prepayments and maturities of    investment                                                                    |   |   |   |   |   |
|      securities                                                                                                        |   |   | 5,085 |   |   |   | 7,862 |   |
|   Purchases      of investment securities                                                                                             |   |   | (5,884 | ) |   |   | (7,111 | ) |
|   Net      increase in portfolio loans                                                                                                |   |   | (7,263 | ) |   |   | (166,209 | ) |
|   Proceeds      from sales of premises and equipment                                                                                  |   |   | 29 |   |   |   | 6 |   |
|   Purchases      of premises and equipment                                                                                            |   |   | (736 | ) |   |   | (2,440 | ) |
|   Proceeds      from sale of other real estate owned                                                                                  |   |   | 3,738 |   |   |   | 1,806 |   |
|                                                                                                                                            |   |   |   |   |   |   |   |   |
|                 NET      CASH USED BY INVESTING ACTIVITIES      |   |   | (5,031 | ) |   |   | (165,203 | ) |
|                                                                                                                                            |   |   |   |   |   |   |   |   |
| FINANCING      ACTIVITIES                                                                                                                       |   |   |   |   |   |   |   |   |
|        Net increase in demand deposits, NOW accounts and savings                                                                           |   |   |   |   |   |
|      accounts                                                                                                          |   |   | 30,486 |   |   |   | 21,918 |   |
|   Net      increase in certificates of deposit                                                                                        |   |   | 178,464 |   |   |   | 79,091 |   |
|   Net      borrowings from (payments on) debt obligations                                                                             |   |   | (1,905 | ) |   |   | 5,878 |   |
|   Proceeds      from Federal Home Loan Bank advances                                                                                  |   |   | 892,571 |   |   |   | 623,524 |   |
|   Payments      on Federal Home Loan Bank advances                                                                                    |   |   | (945,171 | ) |   |   | (570,742 | ) |
|   Resources      provided by noncontrolling interests                                                                                 |   |   |   |   |   |   | 13,786 |   |
|   Net      proceeds from issuance of common stock                                                                                     |   |   |   |   |   |   | 54 |   |
|   Tax      benefit from share-based payments                                                                                          |   |   | (104 | ) |   |   | (4 | ) |
|   Cash      dividends paid                                                                                                            |   |   | (864 | ) |   |   | (4,330 | ) |
|                                                                                                                                            |   |   |   |   |   |   |   |   |
|                 NET      CASH PROVIDED BY FINANCING ACTIVITIES  |   |   | 153,477 |   |   |   | 169,175 |   |
|                                                                                                                                            |   |   |   |   |   |   |   |   |
|                 INCREASE      IN CASH AND CASH EQUIVALENTS      |   |   | 136,909 |   |   |   | 2,994 |   |
|                                                                                                                                            |   |   |   |   |   |   |   |   |
| Cash      and cash equivalents at beginning of period                                                                                           |   |   | 624,366 |   |   |   | 352,372 |   |
|                                                                                                                                            |   |   |   |   |   |   |   |   |
|                                                                                                                                            |   |   |   |   |   |   |   |   |
|                 CASH      AND CASH EQUIVALENTS AT END OF PERIOD |   | $ | 761,275 |   |   | $ | 355,366 |   |
|                                                                                                                                            |   |   |   |   |   |   |   |   |
| Supplemental      disclosure of cash flow information:                                                                                          |   |   |   |   |   |   |   |   |
|   Cash      paid during the period for interest                                                                                       |   | $ | 32,798 |   |   | $ | 33,704 |   |
|   Transfers      of loans to other real estate owned                                                                                  |   |   | 25,832 |   |   |   | 8,446 |   |
|   Surrender      of common stock to facilitate exercise of stock                                                                      |   |   |   |   |   |   |   |   |
|      options      and vesting of restricted stock                                                                      |   |   | 19 |   |   |   | 271 |   |
|                                                                                                                                            |   |   |   |   |   |   |   |   |
| See      notes to condensed consolidated financial statements.                                                                                  |   |   |   |   |   |   |   |   |

----

----

----

|                                           |   | March      31, 2009 |   |   | December      31, 2008 |
|------------------------------------------------|--------|---------------------|--------|--------|------------------------|
|                                           |   | AmortizedCost       |   |   | EstimatedFairValue     |   |   | AmortizedCost |   |   | EstimatedFairValue |
| Available      for sale:                       |   |                |   |   |                   |   |   |   |   |   |   |
| United      States government agencysecurities |   | $                   | 8,739  |   |                   | $ | 8,799 |   |   | $ | 9,785 |   |   | $ | 9,913 |
| Mortgage      backed securities                |   |                | 6,380  |   |                   |   | 6,510 |   |   |   | 4,813 |   |   |   | 4,890 |
| Municipals                                     |   |                | 768    |   |                   |   | 784 |   |   |   | 768 |   |   |   | 781 |
|                                           |   |                | 15,887 |   |                   |   | 16,093 |   |   |   | 15,366 |   |   |   | 15,584 |
| Held      for long-term investment:            |   |                |   |   |                   |   |   |   |   |   |   |   |   |   |   |
| Federal      Reserve Bank stock                |   |                | 150    |   |                   |   | 150 |   |   |   | 146 |   |   |   | 146 |
| Federal      Home Loan Bank stock              |   |                | 26,279 |   |                   |   | 26,279 |   |   |   | 26,053 |   |   |   | 26,053 |
| Corporate                                      |   |                | 6,173  |   |                   |   | 6,173 |   |   |   | 6,591 |   |   |   | 6,591 |
| Other                                          |   |                | 152    |   |                   |   | 152 |   |   |   | 66 |   |   |   | 66 |
|                                           |   |                | 32,754 |   |                   |   | 32,754 |   |   |   | 32,856 |   |   |   | 32,856 |
|                                           |   |                |   |   |                   |   |   |   |   |   |   |   |   |   |   |
|                                           |   | $                   | 48,641 |   |                   | $ | 48,847 |   |   | $ | 48,222 |   |   | $ | 48,440 |

|                                           |   | March      31, 2009 |   |   | December      31, 2008 |
|------------------------------------------------|--------|---------------------|--------|--------|------------------------|
|                                           |   | Gains               |   |   | Losses                 |   |   | Gains |   |   | Losses |
| United      States government agencysecurities |   | $                   | 60     |   |                   | $ | -- |   |   | $ | 128 |   |   | $ | -- |
| Mortgage      backed securities                |   |                | 132    |   |                   |   | 2 |   |   |   | 85 |   |   |   | 8 |
| Municipals                                     |   |                | 16     |   |                   |   | -- |   |   |   | 13 |   |   |   | -- |
|                                           |   |                |   |   |                   |   |   |   |   |   |   |   |   |   |   |
|                                           |   | $                   | 208    |   |                   | $ | 2 |   |   | $ | 226 |   |   | $ | 8 |

|                       |   | March      31, 2009 |   |   | December      31, 2008 |
|----------------------------|--------|---------------------|--------|--------|------------------------|
|                       |   | UnrealizedLoss      |   |   | CarryingValue          |   |   | UnrealizedLoss |   |   | CarryingValue |
|                       |   |                |   |   |                   |   |   |   |   |   |   |
| One      year or less      |   | $                   | 1      |   |                   | $ | 249 |   |   | $ | 4 |   |   | $ | 281 |
| In      excess of one year |   |                | 1      |   |                   |   | 480 |   |   |   | 4 |   |   |   | 501 |
|                       |   |                |   |   |                   |   |   |   |   |   |   |   |   |   |   |
|                       |   | $                   | 2      |   |                   | $ | 729 |   |   | $ | 8 |   |   | $ | 782 |

----

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

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

|   | Level      3:  Significant unobservable inputs that reflect the reporting      entity's own assumptions about the assumptions that market participants      would use in pricing an asset orliability. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

|   | 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 March 31, 2009.  Fair value is based on      independent quoted market prices, where applicable, or the prices for      other mortgage whole loans with similar  characteristics. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

|                                          |   |   Total |      |   | SignificantOtherObservable      Inputs(Level      2) |
|-----------------------------------------------|--------|-------------------|-----------|--------|------------------------------------------------------|
|                                          |   |              |      |   |                                                 |
| Securities      available for sale:           |   |              |      |   |                                                 |
| United      State government agencysecurities |   | $                 | 8,799     |   |                                                 | $ | 8,799 |
| Mortgage      backed securities               |   |              | 6,510     |   |                                                 |   | 6,510 |
| Municipals                                    |   |              |  784 |   |                                                 |   |  784 |
|                                          |   | $                 | 16,093    |   |                                                 | $ | 16,093 |

----

|                             |   |   Total |   |   | SignificantOtherObservable      Inputs(Level      3) |   |   |  Total      Gains(Losses) |   |
|----------------------------------|--------|-------------------|--------|--------|------------------------------------------------------|--------|--------|--------------------------------|--------|
|                             |   |              |   |   |                                                 |   |   |                           |   |
| Impaired      loans (1)          |   | $                 | 62,840 |   |                                                 | $      | 62,840 |                           |   | $ | (14,825 | ) |
|                             |   |              |   |   |                                                 |   |   |                           |   |   |   |   |
| Other      real estate owned (1) |   | $                 | 86,837 |   |                                                 | $      | 86,837 |                           |   | $ | (2,084 | ) |

| (1)   | Represents      carrying value and related write-downs for which adjustments are based on      the appraised value of the applicable collateralor      foreclosed property or other estimates of fair  value. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                              |   | March      31, 2009 |          |   | December      31, 2008   |   |
|---------------------------------------------------|--------|---------------------|---------------|--------|--------------------------|--------|
|                                              |   | CarryingValue       |          |   | EstimatedFair      Value |   |   | CarryingValue |   |   | EstimatedFair      Value |   |
| Financial      Assets:                            |   |                |          |   |                     |   |   |   |   |   |   |   |
| Cash      and cash equivalents                    |   | $                   | 761,275       |   |                     | $      | 761,275 |   |   | $ | 624,366 |   |   | $ | 624,366 |   |
| Loans      held for sale                          |   |                | 24,979        |   |                     |   | 24,979 |   |   |   | 10,474 |   |   |   | 10,474 |   |
| Investment      securities:                       |   |                |          |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Available      for sale                           |   |                | 16,093        |   |                     |   | 16,093 |   |   |   | 15,584 |   |   |   | 15,584 |   |
| Held      for long-term investment                |   |                | 32,754        |   |                     |   | 32,754 |   |   |   | 32,856 |   |   |   | 32,856 |   |
|                                              |   |                | 48,847        |   |                     |   | 48,847 |   |   |   | 48,440 |   |   |   | 48,440 |   |
| Portfolio      loans:                             |   |                |          |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Loans      secured by real estate:                |   |                |          |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Commercial                                        |   |                | 2,148,650     |   |                     |   | 2,133,510 |   |   |   | 2,115,515 |   |   |   | 2,105,204 |   |
| Residential      (including multi-family)         |   |                | 912,692       |   |                     |   | 890,469 |   |   |   | 879,754 |   |   |   | 865,406 |   |
| Construction,      land development and otherland |   |                |  729,316 |   |                     |   |  679,911 |   |   |   |  797,486 |   |   |   |  753,028 |   |
| Total      loans secured by real estate           |   |                | 3,790,658     |   |                     |   | 3,703,890 |   |   |   | 3,792,755 |   |   |   | 3,723,638 |   |
| Commercial      and other business-purpose loans  |   |                | 815,138       |   |                     |   | 809,408 |   |   |   | 845,593 |   |   |   | 830,283 |   |
| Consumer                                          |   |                | 56,810        |   |                     |   | 57,516 |   |   |   | 61,340 |   |   |   | 62,313 |   |
| Other                                             |   |                | 32,711        |   |                     |   | 30,789 |   |   |   | 35,541 |   |   |   | 32,504 |   |
| Total      portfolio loans                        |   |                | 4,695,317     |   |                     |   | 4,601,603 |   |   |   | 4,735,229 |   |   |   | 4,648,738 |   |
| Less      allowance for loan losses               |   |                | (99,629       | )      |                     |   | (99,629 | ) |   |   | (93,040 | ) |   |   | (93,040 | ) |
| Net      portfolio loans                          |   |                | 4,595,688     |   |                     |   | 4,501,974 |   |   |   | 4,642,189 |   |   |   | 4,555,698 |   |
|                                              |   |                |          |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Financial      Liabilities:                       |   |                |          |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Deposits:                                         |   |                |          |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Noninterest-bearing                               |   |                | 689,815       |   |                     |   | 689,815 |   |   |   | 700,786 |   |   |   | 700,786 |   |
| Interest-bearing:                                 |   |                |          |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Demand      accounts                              |   |                | 1,272,627     |   |                     |   | 1,272,628 |   |   |   | 1,231,170 |   |   |   | 1,231,172 |   |
| Time      certificates of less than $100,000      |   |                | 986,163       |   |                     |   | 988,528 |   |   |   | 1,160,221 |   |   |   | 1,161,411 |   |
| Time      certificates of $100,000 or more        |   |                | 1,757,957     |   |                     |   | 1,758,201 |   |   |   | 1,405,435 |   |   |   | 1,408,431 |   |
| Total      interest-bearing                       |   |                | 4,016,747     |   |                     |   | 4,019,357 |   |   |   | 3,796,826 |   |   |   | 3,801,014 |   |
| Total      deposits                               |   |                | 4,706,562     |   |                     |   | 4,709,172 |   |   |   | 4,497,612 |   |   |   | 4,501,800 |   |
| Notes      payable and short-term borrowings      |   |                | 392,420       |   |                     |   | 393,357 |   |   |   | 446,925 |   |   |   | 447,490 |   |
| Subordinated      debentures                      |   |                | 167,330       |   |                     |   | 170,841 |   |   |   | 167,293 |   |   |   | 170,841 |   |

----

|                          |   | Number      ofStock      OptionsOutstanding |         |   | ExercisePriceRange |                                                                  |   | WeightedAverageExercisePrice |
|-------------------------------|--------|---------------------------------------------|--------------|--------|--------------------|-----------------------------------------------------------------------|--------|------------------------------|
|                          |   |                                        |         |   |               |                                                                  |   |                         |
| Outstanding      at January 1 |   |                                        | 2,374,159    |   |               | $       13.50   to   $  46.20           |   |                         | $ | 28.28 |
| Granted                       |   |                                        | 69,520       |   |               | 6.04                                                                  |   |                         |   | 6.04 |
| Exercised                     |   |                                        | --           |   |               |                                                                  |   |                         |   |   |
| Cancelled      or expired     |   |                                        |  (5,308 | )      |               |                                                                  |   |                         |   |   |
|                          |   |                                        |         |   |               |                                                                  |   |                         |   |   |
| Outstanding      at March 31  |   |                                        | 2,438,371    |   |               | $   6.04        to   $  46.20 |   |                         | $ | 27.67 |

|                     |                                |   |              |      |          | Weighted      Average |
|--------------------------|-------------------------------------|--------|-------------------|-----------|---------------|-----------------------|
| Exercise      PriceRange |                                |   | NumberOutstanding |      |          | ExercisePrice         |   | RemainingContractualLife |
|                     |                                |   |              |      |          |                  |   |   |
| $                        |        5.00 to 14.99 |   |              |      | 69,520        |                  |   | $ |  6.04 |   |      6.85      years |
| $                        | 15.00 to 19.99            |   |              |      | 135,853       |                  |   |   | 16.67 |   |      1.48      years |
| $                        | 20.00 to 24.99            |   |              |      | 584,956       |                  |   |   | 21.67 |   |      2.54      years |
| $                        | 25.00 to 29.99            |   |              |      | 585,415       |                  |   |   | 27.09 |   |      1.40      years |
| $                        | 30.00 to 34.99            |   |              |      | 695,119       |                  |   |   | 32.10 |   |      2.44      years |
| $                   | 35.00 or more             |   |              |      |  367,508 |                  |   |   | 37.92 |   |      3.67      years |
|                     |                                |   |              |      |          |                  |   |   |   |   |   |
| Total      outstanding   |                                |   |              | 2,438,371 |          |                  |   |   |   |   |

----

|                                                                                                                                        |   | Three      Months EndedMarch      31 |
|---------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------|
|                                                                                                                                        |   | 2009                                 |   |   | 2008 |
|                                                                                                                                        |   |                                 |   |   |   |
| Numerator—net      income (loss) for the period                                                                                       |   | $                                    | (15,672 | ) |   | $ | 2,191 |
|                                                                                                                                        |   |                                 |   |   |   |   |   |
| Denominator:                                                                                                                                |   |                                 |   |   |   |   |   |
| Weighted      average number of shares outstanding,excluding      unvested restricted shares(denominator      for basic earnings per share) |   |                                 |    17,162 |   |   |   |    17,141 |
|                                                                                                                                        |   |                                 |   |   |   |   |   |
| Effect      of dilutive securities:                                                                                                         |   |                                 |   |   |   |   |   |
| Unvested      restricted shares                                                                                                             |   |                                 | -- |   |   |   | 25 |
| Stock      options                                                                                                                          |   |                                 | -- |   |   |   | 23 |
| Total      effect of dilutive securities                                                                                                    |   |                                 | -- |   |   |   | 48 |
|                                                                                                                                        |   |                                 |   |   |   |   |   |
| Denominator      for diluted earnings per share—                                                                                      |   |                                 |   |   |   |   |   |
| Weighted      average number of shares andpotential      dilution                                                                           |   |                                 |  17,162 |   |   |   |  17,189 |
|                                                                                                                                        |   |                                 |   |   |   |   |   |
| Number      of antidilutive stock options excludedfrom      diluted earnings per share computation                                          |   |                                 |  2,438 |   |   |   |  2,271 |

----

|                                 |   | Total      Assets   |
|--------------------------------------|--------|---------------------|
|                                 |   | March      31, 2009 |   |   | December      31, 2008 |
| Arizona      Region:                 |   |                |   |   |   |
| Arrowhead      Community Bank        |   | $                   | 87,625 |   |   | $ | 80,606 |
| Asian      Bank of Arizona           |   |                | 40,640 |   |   |   | 38,127 |
| Bank      of Tucson                  |   |                | 197,010 |   |   |   | 189,869 |
| Camelback      Community Bank        |   |                | 94,200 |   |   |   | 93,754 |
| Central      Arizona Bank            |   |                | 79,697 |   |   |   | 79,775 |
| Colonia      Bank                    |   |                | 12,507 |   |   |   | 12,522 |
| Mesa      Bank                       |   |                | 253,715 |   |   |   | 248,262 |
| Southern      Arizona Community Bank |   |                | 93,283 |   |   |   | 88,146 |
| Sunrise      Bank of Albuquerque     |   |                | 79,273 |   |   |   | 81,977 |
| Sunrise      Bank of Arizona         |   |                | 131,375 |   |   |   | 119,395 |
| Yuma      Community Bank             |   |                | 72,267 |   |   |   | 73,028 |
| Arizona      Region Total            |   |                | 1,141,592 |   |   |   | 1,105,461 |
|                                 |   |                |   |   |   |   |   |
| California      Region:              |   |                |   |   |   |   |   |
| Bank      of Escondido               |   |                | 99,904 |   |   |   | 96,803 |
| Bank      of Feather River           |   |                | 30,614 |   |   |   | 29,218 |
| Bank      of San Francisco           |   |                | 80,822 |   |   |   | 74,670 |
| Bank      of Santa Barbara           |   |                | 63,276 |   |   |   | 72,076 |
| Napa      Community Bank             |   |                | 145,174 |   |   |   | 149,093 |
| Point      Loma Community Bank       |   |                | 69,930 |   |   |   | 61,514 |
| Sunrise      Bank of San Diego       |   |                | 89,063 |   |   |   | 86,322 |
| Sunrise      Community Bank          |   |                | 39,322 |   |   |   | 36,139 |
| California      Region Total         |   |                | 618,105 |   |   |   | 605,835 |
|                                 |   |                |   |   |   |   |   |
| Colorado      Region:                |   |                |   |   |   |   |   |
| Fort      Collins Commerce Bank      |   |                | 84,840 |   |   |   | 80,247 |
| Larimer      Bank of Commerce        |   |                | 87,860 |   |   |   | 88,725 |
| Loveland      Bank of Commerce       |   |                | 37,464 |   |   |   | 32,034 |
| Mountain      View Bank of Commerce  |   |                | 38,486 |   |   |   | 37,740 |
| Colorado      Region Total           |   |                | 248,650 |   |   |   | 238,746 |
|                                 |   |                |   |   |   |   |   |
| Great      Lakes Region:             |   |                |   |   |   |   |   |
| Bank      of Auburn Hills            |   |                | 44,787 |   |   |   | 43,856 |
| Bank      of Maumee                  |   |                | 57,910 |   |   |   | 56,812 |
| Bank      of Michigan                |   |                | 85,285 |   |   |   | 78,716 |
| Capitol      National Bank           |   |                | 240,114 |   |   |   | 245,354 |
| Elkhart      Community Bank          |   |                | 96,052 |   |   |   | 99,917 |
| Evansville      Commerce Bank        |   |                | 60,451 |   |   |   | 63,228 |
| Goshen      Community Bank           |   |                | 82,640 |   |   |   | 87,419 |
| Michigan      Commerce Bank(1)       |   |                | 1,287,705 |   |   |   | 1,271,862 |
| Ohio      Commerce Bank              |   |                | 60,783 |   |   |   | 60,678 |
| Paragon      Bank & Trust        |   |                | 122,997 |   |   |   | 107,491 |
| Great      Lakes Region Total        |   |                | 2,138,724 |   |   |   | 2,115,333 |
|                                 |   |                |   |   |   |   |   |
| Midwest      Region:                 |   |                |   |   |   |   |   |
| Adams      Dairy Bank                |   |                | 37,458 |   |   |   | 33,867 |
| Bank      of Belleville              |   |                | 70,823 |   |   |   | 73,901 |
| Community      Bank of Lincoln       |   |                | 57,367 |   |   |   | 53,222 |
| Summit      Bank of Kansas City      |   |                | 58,181 |   |   |   | 53,429 |
| Midwest      Region Total            |   |                | 223,829 |   |   |   | 214,419 |

----

|                               |   | Total      Assets   |
|------------------------------------|--------|---------------------|
|                               |   | March      31, 2009 |   |   | December      31, 2008 |
| Nevada      Region:                |   |                |   |   |   |
| 1st      Commerce Bank             |   | $                   | 45,379 |   |   | $ | 52,622 |
| Bank      of Las Vegas             |   |                | 72,916 |   |   |   | 73,692 |
| Black      Mountain Community Bank |   |                | 164,355 |   |   |   | 157,545 |
| Desert      Community Bank         |   |                | 94,034 |   |   |   | 100,312 |
| Red      Rock Community Bank       |   |                | 124,071 |   |   |   | 126,993 |
| Nevada      Region Total           |   |                | 500,755 |   |   |   | 511,164 |
|                               |   |                |   |   |   |   |   |
| Northeast      Region:             |   |                |   |   |   |   |   |
| USNY      Bank                     |   |                | 54,062 |   |   |   | 49,620 |
|                               |   |                |   |   |   |   |   |
| Northwest      Region:             |   |                |   |   |   |   |   |
| Bank      of Bellevue              |   |                | 57,324 |   |   |   | 55,841 |
| Bank      of Everett               |   |                | 44,629 |   |   |   | 44,756 |
| Bank      of Tacoma                |   |                | 50,220 |   |   |   | 44,241 |
| High      Desert Bank              |   |                | 52,569 |   |   |   | 41,904 |
| Issaquah      Community Bank       |   |                | 36,135 |   |   |   | 36,942 |
| Northwest      Region Total        |   |                | 240,877 |   |   |   | 223,684 |
|                               |   |                |   |   |   |   |   |
| Southeast      Region:             |   |                |   |   |   |   |   |
| Bank      of Valdosta              |   |                | 57,971 |   |   |   | 58,995 |
| Community      Bank of Rowan       |   |                | 146,629 |   |   |   | 138,341 |
| First      Carolina State Bank     |   |                | 121,503 |   |   |   | 119,774 |
| Peoples      State Bank            |   |                | 29,990 |   |   |   | 29,233 |
| Pisgah      Community Bank         |   |                | 44,708 |   |   |   | 36,897 |
| Sunrise      Bank of Atlanta       |   |                | 60,821 |   |   |   | 62,198 |
| Southeast      Region Total        |   |                | 461,622 |   |   |   | 445,438 |
|                               |   |                |   |   |   |   |   |
| Texas      Region:                 |   |                |   |   |   |   |   |
| Bank      of Fort Bend             |   |                | 25,335 |   |   |   | 26,424 |
| Bank      of Las Colinas           |   |                | 41,578 |   |   |   | 31,354 |
| Texas      Region Total            |   |                | 66,913 |   |   |   | 57,778 |
|                               |   |                |   |   |   |   |   |
| Parent      company and other, net |   |                | 87,479 |   |   |   | 87,358 |
|                               |   |                |   |   |   |   |   |
| Consolidated      Totals           |   | $                   | 5,782,608 |   |   | $ | 5,654,836 |

| (1) | Michigan      Commerce Bank resulted from the merger of Ann Arbor Commerce Bank,      Brighton Commerce Bank, Detroit Commerce Bank, Grand Haven Bank, Kent      Commerce Bank, Macomb Community Bank, Muskegon Commerce Bank, Oakland      Commerce Bank and Portage Commerce Bank effective March 31,      2009. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                                                                  |   | 2009   |         |   | 2008   |   |
|---------------------------------------------------------------------------------------|--------|--------|--------------|--------|--------|--------|
| Allowance      for loan losses at January 1                                           |   | $      | 93,040       |   |   | $      | 58,124 |   |
|                                                                                  |   |   |         |   |   |   |   |   |
| Loans      charged-off:                                                               |   |   |         |   |   |   |   |   |
| Loans      secured by real estate:                                                    |   |   |         |   |   |   |   |   |
| Commercial                                                                            |   |   | (2,284       | )      |   |   | (672 | ) |
| Residential      (including multi-family)                                             |   |   | (5,188       | )      |   |   | (2,150 | ) |
| Construction,      land development and other land                                    |   |   |  (6,714 | )      |   |   |  (1,359 | ) |
| Total      loans secured by real estate                                               |   |   | (14,186      | )      |   |   | (4,181 | ) |
| Commercial      and other business-purpose loans                                      |   |   | (7,933       | )      |   |   | (1,801 | ) |
| Consumer                                                                              |   |   | (292         | )      |   |   | (134 | ) |
| Other                                                                                 |   |   |  --     |   |   |   |  -- |   |
| Total      charge-offs                                                                |   |   | (22,411      | )      |   |   | (6,116 | ) |
| Recoveries:                                                                           |   |   |         |   |   |   |   |   |
| Loans      secured by real estate:                                                    |   |   |         |   |   |   |   |   |
| Commercial                                                                            |   |   | 102          |   |   |   | 118 |   |
| Residential      (including multi-family)                                             |   |   | 47           |   |   |   | 84 |   |
| Construction,      land development and other land                                    |   |   |  119    |   |   |   |  26 |   |
| Total      loans secured by real estate                                               |   |   | 268          |   |   |   | 228 |   |
| Commercial      and other business-purpose loans                                      |   |   | 544          |   |   |   | 430 |   |
| Consumer                                                                              |   |   | 15           |   |   |   | 41 |   |
| Other                                                                                 |   |   |  1      |   |   |   |  1 |   |
| Total      recoveries                                                                 |   |   |  828    |   |   |   |  700 |   |
| Net      charge-offs                                                                  |   |   | (21,583      | )      |   |   | (5,416 | ) |
| Additions      to allowance charged to expense                                        |   |   |  28,172 |   |   |   |  8,958 |   |
|                                                                                  |   |   |         |   |   |   |   |   |
| Allowance      for loan losses at March 31                                            |   | $      | 99,629       |   |   | $      | 61,666 |   |
|                                                                                  |   |   |         |   |   |   |   |   |
| Average      total portfolio loans for the period                                     |   | $      | 4,722,595    |   |   | $      | 4,402,469 |   |
|                                                                                  |   |   |         |   |   |   |   |   |
| Ratio      of net charge-offs (annualized) to average portfolioloans      outstanding |   |   |  1.83   | %      |   |   |  0.49 | % |

----

|                                                   |   | March      31, 2009 |         |   | December      31, 2008                |   |
|--------------------------------------------------------|--------|---------------------|--------------|--------|---------------------------------------|--------|
|                                                   |   |   Amount  |         |   | Percentageof      TotalPortfolioLoans |   |   |   Amount |   |   | Percentageof      TotalPortfolioLoans |   |
|                                                   |
|                                                   |
|                                                   |
|                                                   |   |                |         |   |                                  |   |   |   |   |   |   |   |
| Loans      secured by real estate:                     |   |                |         |   |                                  |   |   |   |   |   |   |   |
| Commercial                                             |   | $                   | 33,484       |   |                                  |   | 0.71 | % |   | $ | 30,007 |   |   |   | 0.63 | % |
| Residential      (including multi-family)              |   |                | 21,423       |   |                                  |   | 0.46 | % |   |   | 21,645 |   |   |   | 0.46 | % |
| Construction,      land development andother      land |   |                |  17,889 |   |                                  |   | 0.38 | % |   |   |  17,496 |   |   |   | 0.37 | % |
| Total      loans secured by real estate                |   |                | 72,796       |   |                                  |   | 1.55 | % |   |   | 69,148 |   |   |   | 1.46 | % |
| Commercial      and other business-purpose loans       |   |                | 25,618       |   |                                  |   | 0.55 | % |   |   | 22,547 |   |   |   | 0.47 | % |
| Consumer                                               |   |                | 973          |   |                                  |   | 0.02 | % |   |   | 1,032 |   |   |   | 0.02 | % |
| Other                                                  |   |                | 242          |   |                                  |   |   |   |   |   | 313 |   |   |   | 0.01 | % |
|                                                   |   |                |         |   |                                  |   |   |   |   |   |   |   |   |   |   |   |
| Total      allowance for loan losses                   |   | $                   | 99,629       |   |                                  |   | 2.12 | % |   | $ | 93,040 |   |   |   | 1.96 | % |

----

|                                                          |   | March      31,2009 |         |   | December      31,2008 |
|---------------------------------------------------------------|--------|--------------------|--------------|--------|-----------------------|
| Nonaccrual      loans:                                        |   |               |         |   |                  |
| Loans      secured by real estate:                            |   |               |         |   |                  |
| Commercial                                                    |   | $                  | 68,537       |   |                  | $ | 39,892 |
| Residential      (including multi-family)                     |   |               | 62,961       |   |                  |   | 35,675 |
| Construction,      land development and other land            |   |               | 77,861       |   |                  |   | 72,996 |
| Total      loans secured by real estate                       |   |               | 209,359      |   |                  |   | 148,563 |
| Commercial      and other business-purpose loans              |   |               | 17,233       |   |                  |   | 16,283 |
| Consumer                                                      |   |               | 356          |   |                  |   | 190 |
| Other                                                         |   |               | --           |   |                  |   | -- |
| Total      nonaccrual loans                                   |   |               | 226,948      |   |                  |   | 165,036 |
|                                                          |   |               |         |   |                  |   |   |
| Past      due (>90 days)      loans and accruing interest: |   |               |         |   |                  |   |   |
| Loans      secured by real estate:                            |   |               |         |   |                  |   |   |
| Commercial                                                    |   |               | 2,345        |   |                  |   | 1,623 |
| Residential      (including multi-family)                     |   |               | 2,371        |   |                  |   | 365 |
| Construction,      land development and other land            |   |               | 109          |   |                  |   | 2,293 |
| Total      loans secured by real estate                       |   |               | 4,825        |   |                  |   | 4,281 |
| Commercial      and other business-purpose loans              |   |               | 636          |   |                  |   | 747 |
| Consumer                                                      |   |               | 50           |   |                  |   | 146 |
| Other                                                         |   |               | --           |   |                  |   | -- |
| Total      past due loans                                     |   |               | 5,511        |   |                  |   | 5,174 |
|                                                          |   |               |         |   |                  |   |   |
| Total      nonperforming loans                                |   | $                  | 232,459      |   |                  | $ | 170,210 |
|                                                          |   |               |         |   |                  |   |   |
| Real      estate owned and otherrepossessed      assets       |   |               |  87,074 |   |                  |   |  67,449 |
|                                                          |   |               |         |   |                  |   |   |
| Total      nonperforming assets                               |   | $                  | 319,533      |   |                  | $ | 237,659 |

----

----

|                                 |   |                       |      |   | Allowance      for |   |      |                     |   |   | Allowance      as a Percentage |   |
|--------------------------------------|--------|----------------------------|-----------|--------|--------------------|--------|-----------|--------------------------|--------|--------|--------------------------------|--------|
|                                 |   | Total      Portfolio Loans |      |   | Loan      Losses   |   |      | Nonperforming      Loans |   |   | of      Total Portfolio Loans  |   |
|                                 |   | March      31,2009         |      |   | Dec      31,2008   |   |      | March      31,2009       |   |   | Dec      31,2008               |   |   | March      31,2009 |   |   | Dec      31,2008 |   |   | March      31,2009 |   |   | Dec      31,2008 |   |
| Arizona      Region:                 |   |                       |      |   |               |   |      |                     |   |   |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Arrowhead      Community Bank        |   | $                          | 62,407    |   |               | $      | 69,487    |                     |   | $      | 4,066                          |   |   | $ | 2,375 |   |   | $ | 5,968 |   |   | $ | 7,430 |   |   |   | 6.52 | % |   |   | 3.42 | % |
| Asian      Bank of Arizona           |   |                       | 35,523    |   |               |   | 33,023    |                     |   |   | 964                            |   |   |   | 694 |   |   |   | 2,625 |   |   |   | 1,898 |   |   |   | 2.71 | % |   |   | 2.10 | % |
| Bank      of Tucson                  |   |                       | 162,747   |   |               |   | 168,390   |                     |   |   | 1,384                          |   |   |   | 1,550 |   |   |   | 3,486 |   |   |   | 2,462 |   |   |   | 0.85 | % |   |   | 0.92 | % |
| Camelback      Community Bank        |   |                       | 84,130    |   |               |   | 84,957    |                     |   |   | 995                            |   |   |   | 789 |   |   |   | 3,549 |   |   |   | 2,030 |   |   |   | 1.18 | % |   |   | 0.93 | % |
| Central      Arizona Bank            |   |                       | 69,210    |   |               |   | 69,372    |                     |   |   | 1,587                          |   |   |   | 1,339 |   |   |   | 4,268 |   |   |   | 1,895 |   |   |   | 2.29 | % |   |   | 1.93 | % |
| Colonia      Bank                    |   |                       | 9,598     |   |               |   | 7,483     |                     |   |   | 223                            |   |   |   | 120 |   |   |   |   |   |   |   |   |   |   |   | 2.32 | % |   |   | 1.60 | % |
| Mesa      Bank                       |   |                       | 133,884   |   |               |   | 147,853   |                     |   |   | 2,832                          |   |   |   | 3,250 |   |   |   | 21,686 |   |   |   | 21,423 |   |   |   | 2.12 | % |   |   | 2.20 | % |
| Southern      Arizona Community Bank |   |                       | 78,684    |   |               |   | 79,434    |                     |   |   | 1,235                          |   |   |   | 875 |   |   |   | 630 |   |   |   |   |   |   |   | 1.57 | % |   |   | 1.10 | % |
| Sunrise      Bank of Albuquerque     |   |                       | 71,351    |   |               |   | 74,115    |                     |   |   | 1,179                          |   |   |   | 933 |   |   |   | 5,328 |   |   |   | 43 |   |   |   | 1.65 | % |   |   | 1.26 | % |
| Sunrise      Bank of Arizona         |   |                       | 108,524   |   |               |   | 110,131   |                     |   |   | 1,492                          |   |   |   | 1,159 |   |   |   | 8,384 |   |   |   | 3,707 |   |   |   | 1.37 | % |   |   | 1.05 | % |
| Yuma      Community Bank             |   |                       | 62,964    |   |               |   | 63,804    |                     |   |   | 714                            |   |   |   | 730 |   |   |   | 2,102 |   |   |   | 1,506 |   |   |   | 1.13 | % |   |   | 1.14 | % |
| Arizona      Region Total            |   |                       | 879,022   |   |               |   | 908,049   |                     |   |   | 16,671                         |   |   |   | 13,814 |   |   |   | 58,026 |   |   |   | 42,394 |   |   |   | 1.90 | % |   |   | 1.52 | % |
|                                 |   |                       |      |   |               |   |      |                     |   |   |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| California      Region:              |   |                       |      |   |               |   |      |                     |   |   |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Bank      of Escondido               |   |                       | 68,355    |   |               |   | 62,608    |                     |   |   | 869                            |   |   |   | 810 |   |   |   | 3,344 |   |   |   | 817 |   |   |   | 1.27 | % |   |   | 1.29 | % |
| Bank      of Feather River           |   |                       | 23,908    |   |               |   | 22,962    |                     |   |   | 309                            |   |   |   | 320 |   |   |   |   |   |   |   |   |   |   |   | 1.29 | % |   |   | 1.39 | % |
| Bank      of San Francisco           |   |                       | 69,425    |   |               |   | 60,772    |                     |   |   | 930                            |   |   |   | 823 |   |   |   | 251 |   |   |   | 299 |   |   |   | 1.34 | % |   |   | 1.35 | % |
| Bank      of Santa Barbara           |   |                       | 54,621    |   |               |   | 60,535    |                     |   |   | 1,184                          |   |   |   | 1,138 |   |   |   | 2,277 |   |   |   | 1,841 |   |   |   | 2.17 | % |   |   | 1.88 | % |
| Napa      Community Bank             |   |                       | 134,577   |   |               |   | 130,150   |                     |   |   | 1,866                          |   |   |   | 1,890 |   |   |   | 1,828 |   |   |   | 1,848 |   |   |   | 1.39 | % |   |   | 1.45 | % |
| Point      Loma Community Bank       |   |                       | 51,854    |   |               |   | 52,497    |                     |   |   | 963                            |   |   |   | 797 |   |   |   | 2,441 |   |   |   | 795 |   |   |   | 1.86 | % |   |   | 1.52 | % |
| Sunrise      Bank of San Diego       |   |                       | 75,860    |   |               |   | 76,282    |                     |   |   | 1,179                          |   |   |   | 1,048 |   |   |   | 2,554 |   |   |   | 1,444 |   |   |   | 1.55 | % |   |   | 1.37 | % |
| Sunrise      Community Bank          |   |                       | 31,248    |   |               |   | 28,355    |                     |   |   | 503                            |   |   |   | 440 |   |   |   | 2,015 |   |   |   |   |   |   |   | 1.66 | % |   |   | 1.55 | % |
| California      Region Total         |   |                       | 509,848   |   |               |   | 494,161   |                     |   |   | 7,803                          |   |   |   | 7,266 |   |   |   | 14,710 |   |   |   | 7,044 |   |   |   | 1.53 | % |   |   | 1.47 | % |
|                                 |   |                       |      |   |               |   |      |                     |   |   |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Colorado      Region:                |   |                       |      |   |               |   |      |                     |   |   |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Fort      Collins Commerce Bank      |   |                       | 78,415    |   |               |   | 74,280    |                     |   |   | 1,244                          |   |   |   | 1,101 |   |   |   | 787 |   |   |   | 48 |   |   |   | 1.59 | % |   |   | 1.48 | % |
| Larimer      Bank of Commerce        |   |                       | 79,766    |   |               |   | 78,638    |                     |   |   | 1,230                          |   |   |   | 1,160 |   |   |   |   |   |   |   |   |   |   |   | 1.54 | % |   |   | 1.48 | % |
| Loveland      Bank of Commerce       |   |                       | 29,073    |   |               |   | 27,251    |                     |   |   | 477                            |   |   |   | 652 |   |   |   | 1,790 |   |   |   | 1,090 |   |   |   | 1.64 | % |   |   | 2.39 | % |
| Mountain      View Bank of Commerce  |   |                       | 33,035    |   |               |   | 32,180    |                     |   |   | 499                            |   |   |   | 474 |   |   |   |   |   |   |   |   |   |   |   | 1.51 | % |   |   | 1.47 | % |
| Colorado      Region Total           |   |                       | 220,289   |   |               |   | 212,349   |                     |   |   | 3,450                          |   |   |   | 3,387 |   |   |   | 2,577 |   |   |   | 1,138 |   |   |   | 1.57 | % |   |   | 1.60 | % |
|                                 |   |                       |      |   |               |   |      |                     |   |   |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Great      Lakes Region:             |   |                       |      |   |               |   |      |                     |   |   |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Bank      of Auburn Hills            |   |                       | 37,501    |   |               |   | 39,914    |                     |   |   | 1,155                          |   |   |   | 988 |   |   |   | 2,921 |   |   |   | 2,895 |   |   |   | 3.08 | % |   |   | 2.48 | % |
| Bank      of Maumee                  |   |                       | 45,013    |   |               |   | 50,094    |                     |   |   | 729                            |   |   |   | 752 |   |   |   | 6 |   |   |   | 37 |   |   |   | 1.62 | % |   |   | 1.50 | % |
| Bank      of Michigan                |   |                       | 67,514    |   |               |   | 67,700    |                     |   |   | 1,000                          |   |   |   | 996 |   |   |   | 464 |   |   |   | 306 |   |   |   | 1.48 | % |   |   | 1.47 | % |
| Capitol      National Bank           |   |                       | 207,410   |   |               |   | 213,392   |                     |   |   | 7,573                          |   |   |   | 8,341 |   |   |   | 16,023 |   |   |   | 12,828 |   |   |   | 3.65 | % |   |   | 3.91 | % |
| Elkhart      Community Bank          |   |                       | 84,685    |   |               |   | 87,971    |                     |   |   | 2,121                          |   |   |   | 1,702 |   |   |   | 3,645 |   |   |   | 3,941 |   |   |   | 2.50 | % |   |   | 1.93 | % |
| Evansville      Commerce Bank        |   |                       | 52,023    |   |               |   | 55,779    |                     |   |   | 937                            |   |   |   | 943 |   |   |   | 238 |   |   |   | 158 |   |   |   | 1.80 | % |   |   | 1.69 | % |
| Goshen      Community Bank           |   |                       | 72,247    |   |               |   | 74,144    |                     |   |   | 1,460                          |   |   |   | 1,501 |   |   |   | 1,563 |   |   |   | 876 |   |   |   | 2.02 | % |   |   | 2.02 | % |
| Michigan      Commerce Bank(1)       |   |                       | 1,090,129 |   |               |   | 1,123,721 |                     |   |   | 32,662                         |   |   |   | 30,258 |   |   |   | 74,009 |   |   |   | 63,090 |   |   |   | 3.00 | % |   |   | 2.69 | % |
| Ohio      Commerce Bank              |   |                       | 52,086    |   |               |   | 48,207    |                     |   |   | 792                            |   |   |   | 723 |   |   |   |   |   |   |   |   |   |   |   | 1.52 | % |   |   | 1.50 | % |
| Paragon      Bank & Trust        |   |                       | 84,012    |   |               |   | 87,651    |                     |   |   | 2,206                          |   |   |   | 2,990 |   |   |   | 6,974 |   |   |   | 6,447 |   |   |   | 2.63 | % |   |   | 3.41 | % |
| Great      Lakes Region Total        |   |                       | 1,792,620 |   |               |   | 1,848,573 |                     |   |   | 50,635                         |   |   |   | 49,194 |   |   |   | 105,843 |   |   |   | 90,578 |   |   |   | 2.82 | % |   |   | 2.66 | % |
|                                 |   |                       |      |   |               |   |      |                     |   |   |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Midwest      Region:                 |   |                       |      |   |               |   |      |                     |   |   |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Adams      Dairy Bank                |   |                       | 31,684    |   |               |   | 28,834    |                     |   |   | 478                            |   |   |   | 450 |   |   |   |   |   |   |   |   |   |   |   | 1.51 | % |   |   | 1.56 | % |
| Bank      of Belleville              |   |                       | 62,887    |   |               |   | 65,150    |                     |   |   | 923                            |   |   |   | 923 |   |   |   |   |   |   |   |   |   |   |   | 1.47 | % |   |   | 1.42 | % |
| Community      Bank of Lincoln       |   |                       | 42,898    |   |               |   | 43,657    |                     |   |   | 720                            |   |   |   | 674 |   |   |   |   |   |   |   |   |   |   |   | 1.68 | % |   |   | 1.54 | % |
| Summit      Bank of Kansas City      |   |                       | 48,536    |   |               |   | 44,068    |                     |   |   | 780                            |   |   |   | 709 |   |   |   | 1,069 |   |   |   | 779 |   |   |   | 1.61 | % |   |   | 1.61 | % |
| Midwest      Region Total            |   |                       | 186,005   |   |               |   | 181,709   |                     |   |   | 2,901                          |   |   |   | 2,756 |   |   |   | 1,069 |   |   |   | 779 |   |   |   | 1.56 | % |   |   | 1.52 | % |

----

|                               |   |                       |      |   | Allowance      for |   |      |                     |   |   | Allowance      as a Percentage |   |
|------------------------------------|--------|----------------------------|-----------|--------|--------------------|--------|-----------|--------------------------|--------|--------|--------------------------------|--------|
|                               |   | Total      Portfolio Loans |      |   | Loan      Losses   |   |      | Nonperforming      Loans |   |   | of      Total Portfolio Loans  |   |
|                               |   | March      31,2009         |      |   | Dec      31,2008   |   |      | March      31,2009       |   |   | Dec      31,2008               |   |   | March      31,2009 |   |   | Dec      31,2008 |   |   | March      31,2009 |   |   | Dec      31,2008 |   |
| Nevada      Region:                |   |                       |      |   |               |   |      |                     |   |   |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 1st      Commerce Bank             |   | $                          | 37,603    |   |               | $      | 30,663    |                     |   | $      | 988                            |   |   | $ | 740 |   |   | $ | 1,545 |   |   | $ | 1,000 |   |   |   | 2.63 | % |   |   | 2.41 | % |
| Bank      of Las Vegas             |   |                       | 64,147    |   |               |   | 64,648    |                     |   |   | 836                            |   |   |   | 901 |   |   |   | 6,003 |   |   |   | 4,399 |   |   |   | 1.30 | % |   |   | 1.39 | % |
| Black      Mountain Community Bank |   |                       | 144,588   |   |               |   | 143,654   |                     |   |   | 1,653                          |   |   |   | 1,765 |   |   |   | 5,671 |   |   |   | 1,722 |   |   |   | 1.14 | % |   |   | 1.23 | % |
| Desert      Community Bank         |   |                       | 86,911    |   |               |   | 87,388    |                     |   |   | 944                            |   |   |   | 943 |   |   |   | 4,899 |   |   |   | 3,671 |   |   |   | 1.09 | % |   |   | 1.08 | % |
| Red      Rock Community Bank       |   |                       | 100,661   |   |               |   | 110,143   |                     |   |   | 1,500                          |   |   |   | 1,200 |   |   |   | 9,688 |   |   |   | 5,488 |   |   |   | 1.49 | % |   |   | 1.09 | % |
| Nevada      Region Total           |   |                       | 433,910   |   |               |   | 436,496   |                     |   |   | 5,921                          |   |   |   | 5,549 |   |   |   | 27,806 |   |   |   | 16,280 |   |   |   | 1.36 | % |   |   | 1.27 | % |
|                               |   |                       |      |   |               |   |      |                     |   |   |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Northeast      Region:             |   |                       |      |   |               |   |      |                     |   |   |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| USNY      Bank                     |   |                       | 47,943    |   |               |   | 43,471    |                     |   |   | 800                            |   |   |   | 680 |   |   |   | 159 |   |   |   |   |   |   |   | 1.67 | % |   |   | 1.56 | % |
|                               |   |                       |      |   |               |   |      |                     |   |   |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Northwest      Region:             |   |                       |      |   |               |   |      |                     |   |   |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Bank      of Bellevue              |   |                       | 48,639    |   |               |   | 48,838    |                     |   |   | 1,190                          |   |   |   | 850 |   |   |   | 142 |   |   |   | 170 |   |   |   | 2.45 | % |   |   | 1.74 | % |
| Bank      of Everett               |   |                       | 34,954    |   |               |   | 32,735    |                     |   |   | 1,000                          |   |   |   | 686 |   |   |   | 59 |   |   |   | 92 |   |   |   | 2.86 | % |   |   | 2.10 | % |
| Bank      of Tacoma                |   |                       | 40,628    |   |               |   | 40,175    |                     |   |   | 1,115                          |   |   |   | 770 |   |   |   | 1,147 |   |   |   | 1,183 |   |   |   | 2.74 | % |   |   | 1.92 | % |
| High      Desert Bank              |   |                       | 36,130    |   |               |   | 35,407    |                     |   |   | 526                            |   |   |   | 624 |   |   |   | 1,489 |   |   |   |   |   |   |   | 1.46 | % |   |   | 1.76 | % |
| Issaquah      Community Bank       |   |                       | 26,077    |   |               |   | 24,238    |                     |   |   | 405                            |   |   |   | 385 |   |   |   |   |   |   |   |   |   |   |   | 1.55 | % |   |   | 1.59 | % |
| Northwest      Region Total        |   |                       | 186,428   |   |               |   | 181,393   |                     |   |   | 4,236                          |   |   |   | 3,315 |   |   |   | 2,837 |   |   |   | 1,445 |   |   |   | 2.27 | % |   |   | 1.83 | % |
|                               |   |                       |      |   |               |   |      |                     |   |   |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Southeast      Region:             |   |                       |      |   |               |   |      |                     |   |   |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Bank      of Valdosta              |   |                       | 49,129    |   |               |   | 51,629    |                     |   |   | 867                            |   |   |   | 835 |   |   |   | 724 |   |   |   |   |   |   |   | 1.76 | % |   |   | 1.62 | % |
| Community      Bank of Rowan       |   |                       | 114,129   |   |               |   | 109,290   |                     |   |   | 1,706                          |   |   |   | 1,634 |   |   |   | 2,245 |   |   |   | 1,688 |   |   |   | 1.49 | % |   |   | 1.50 | % |
| First      Carolina State Bank     |   |                       | 96,453    |   |               |   | 97,670    |                     |   |   | 1,259                          |   |   |   | 1,312 |   |   |   | 2,909 |   |   |   | 2,421 |   |   |   | 1.31 | % |   |   | 1.34 | % |
| Peoples      State Bank            |   |                       | 21,276    |   |               |   | 21,314    |                     |   |   | 384                            |   |   |   | 366 |   |   |   | 1,773 |   |   |   | 937 |   |   |   | 1.80 | % |   |   | 1.72 | % |
| Pisgah      Community Bank         |   |                       | 36,120    |   |               |   | 27,746    |                     |   |   | 570                            |   |   |   | 475 |   |   |   | 116 |   |   |   | 100 |   |   |   | 1.58 | % |   |   | 1.71 | % |
| Sunrise      Bank of Atlanta       |   |                       | 50,584    |   |               |   | 52,763    |                     |   |   | 968                            |   |   |   | 1,063 |   |   |   | 2,911 |   |   |   | 269 |   |   |   | 1.91 | % |   |   | 2.01 | % |
| Southeast      Region Total        |   |                       | 367,691   |   |               |   | 360,412   |                     |   |   | 5,754                          |   |   |   | 5,685 |   |   |   | 10,678 |   |   |   | 5,415 |   |   |   | 1.56 | % |   |   | 1.58 | % |
|                               |   |                       |      |   |               |   |      |                     |   |   |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Texas      Region:                 |   |                       |      |   |               |   |      |                     |   |   |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Bank      of Fort Bend             |   |                       | 20,144    |   |               |   | 19,859    |                     |   |   | 300                            |   |   |   | 305 |   |   |   |   |   |   |   |   |   |   |   | 1.49 | % |   |   | 1.54 | % |
| Bank      of Las Colinas           |   |                       | 33,682    |   |               |   | 29,657    |                     |   |   | 504                            |   |   |   | 435 |   |   |   |   |   |   |   |   |   |   |   | 1.50 | % |   |   | 1.47 | % |
| Texas      Region Total            |   |                       | 53,826    |   |               |   | 49,516    |                     |   |   | 804                            |   |   |   | 740 |   |   |   |   |   |   |   |   |   |   |   | 1.49 | % |   |   | 1.49 | % |
|                               |   |                       |      |   |               |   |      |                     |   |   |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Parent      company and other, net |   |                       | 17,735    |   |               |   | 19,100    |                     |   |   | 654                            |   |   |   | 654 |   |   |   | 8,754 |   |   |   | 5,137 |   |   |   | 3.69 | % |   |   | 3.42 | % |
|                               |   |                       |      |   |               |   |      |                     |   |   |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Consolidated      totals           |   | $                          | 4,695,317 |   |               | $      | 4,735,229 |                     |   | $      | 99,629                         |   |   | $ | 93,040 |   |   | $ | 232,459 |   |   | $ | 170,210 |   |   |   | 2.12 | % |   |   | 1.96 | % |

| (1) | Michigan      Commerce Bank resulted from the merger of Ann Arbor Commerce Bank,      Brighton Commerce Bank, Detroit Commerce Bank, Grand Haven Bank, Kent      Commerce Bank, Macomb Community Bank, Muskegon Commerce Bank, Oakland      Commerce Bank and Portage Commerce Bank effective March 31,      2009. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

|                                                                  |   | Three      months ended March 31 |
|-----------------------------------------------------------------------|--------|----------------------------------|
|                                                                  |   | 2009                             |   |   | 2008 |
|                                                                  |   |                             |   |   |   |
| Professional      fees                                                |   | $                                | 760 |   |   | $ | 488 |
| Bank      services (ATMs, telephonebanking      and Internet banking) |   |                             | 716 |   |   |   | 555 |
| Directors'      fees                                                  |   |                             | 683 |   |   |   | 802 |
| Loan      and collection expense                                      |   |                             | 590 |   |   |   | 546 |
| Advertising                                                           |   |                             | 507 |   |   |   | 776 |
| Paper,      printing and supplies                                     |   |                             | 498 |   |   |   | 770 |
| Communications                                                        |   |                             | 491 |   |   |   | 508 |
| Travel,      lodging and meals                                        |   |                             | 392 |   |   |   | 633 |
| Postage                                                               |   |                             | 317 |   |   |   | 310 |
| Taxes      other than income taxes                                    |   |                             | 225 |   |   |   | 374 |
| Dues      and memberships                                             |   |                             | 207 |   |   |   | 221 |
| Courier      service                                                  |   |                             | 176 |   |   |   | 240 |
| Insurance      expense                                                |   |                             | 173 |   |   |   | 147 |
| Publications                                                          |   |                             | 54 |   |   |   | 45 |
| Contracted      labor                                                 |   |                             | 40 |   |   |   | 120 |
| Preopening      and start-up costs                                    |   |                             |   |   |   |   | 952 |
| Other                                                                 |   |                             | 2,268 |   |   |   | 2,652 |
| Total                                                                 |   | $                                | 8,097 |   |   | $ | 10,139 |

----

|                                 |   | Three      Months Ended March 31 |   |
|--------------------------------------|--------|----------------------------------|--------|
|                                 |   | Total      Revenues              |   |   | Net      Income (Loss)(1) |   |   | Return      onAverage      Equity(2) |   |   | Return      onAverage      Assets(2) |   |
|                                 |   | 2009                             |   |   | 2008 |   |   | 2009 |   |   | 2008 |   |   | 2009 |   |   | 2008 |   |   | 2009 |   |   | 2008 |   |
| Arizona      Region:                 |   |                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Arrowhead      Community Bank        |   | $                                | 1,031  |   |   | $ | 1,732 |   |   | $ | (2,413 | ) |   | $ | 29 |   |   |   |   |   |   | 1.36 | % |   |   |   |   |   | 0.13 | % |
| Asian      Bank of Arizona           |   |                             | 501    |   |   |   | 455 |   |   |   | (304 | ) |   |   | (189 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Bank      of Tucson                  |   |                             | 3,305  |   |   |   | 3,550 |   |   |   | 646 |   |   |   | 1,218 |   |   |   | 15.05 | % |   |   | 27.53 | % |   |   | 1.35 | % |   |   | 2.64 | % |
| Camelback      Community Bank        |   |                             | 1,349  |   |   |   | 1,516 |   |   |   | (79 | ) |   |   | 273 |   |   |   |   |   |   |   | 11.94 | % |   |   |   |   |   |   | 1.26 | % |
| Central      Arizona Bank            |   |                             | 942    |   |   |   | 1,341 |   |   |   | (476 | ) |   |   | (55 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Colonia      Bank                    |   |                             | 137    |   |   |   |   |   |   |   | (335 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Mesa      Bank                       |   |                             | 1,940  |   |   |   | 4,102 |   |   |   | (1,237 | ) |   |   | 472 |   |   |   |   |   |   |   | 9.89 | % |   |   |   |   |   |   | 0.87 | % |
| Southern      Arizona Community Bank |   |                             | 1,313  |   |   |   | 1,578 |   |   |   | (105 | ) |   |   | 302 |   |   |   |   |   |   |   | 13.34 | % |   |   |   |   |   |   | 1.39 | % |
| Sunrise      Bank of Albuquerque     |   |                             | 1,062  |   |   |   | 1,342 |   |   |   | (214 | ) |   |   | 57 |   |   |   |   |   |   |   | 3.16 | % |   |   |   |   |   |   | 0.31 | % |
| Sunrise      Bank of Arizona         |   |                             | 1,732  |   |   |   | 2,170 |   |   |   | (830 | ) |   |   | 4 |   |   |   |   |   |   |   | 0.12 | % |   |   |   |   |   |   | 0.01 | % |
| Yuma      Community Bank             |   |                             | 1,197  |   |   |   | 1,411 |   |   |   | 216 |   |   |   | 208 |   |   |   | 11.28 | % |   |   | 10.66 | % |   |   | 1.21 | % |   |   | 1.08 | % |
| Arizona      Region Total            |   |                             | 14,509 |   |   |   | 19,197 |   |   |   | (5,131 | ) |   |   | 2,319 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                 |   |                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| California      Region:              |   |                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Bank      of Escondido               |   |                             | 1,135  |   |   |   | 1,373 |   |   |   | (154 | ) |   |   | 76 |   |   |   |   |   |   |   | 2.12 | % |   |   |   |   |   |   | 0.32 | % |
| Bank      of Feather River           |   |                             | 458    |   |   |   | 286 |   |   |   | (10 | ) |   |   | (117 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Bank      of San Francisco           |   |                             | 1,014  |   |   |   | 942 |   |   |   | 8 |   |   |   | 1 |   |   |   | 0.39 | % |   |   | 0.04 | % |   |   | 0.04 | % |   |   | 0.01 | % |
| Bank      of Santa Barbara           |   |                             | 929    |   |   |   | 1,027 |   |   |   | (171 | ) |   |   | (113 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Napa      Community Bank             |   |                             | 2,196  |   |   |   | 2,035 |   |   |   | 487 |   |   |   | 146 |   |   |   | 12.76 | % |   |   | 4.15 | % |   |   | 1.38 | % |   |   | 0.48 | % |
| Point      Loma Community Bank       |   |                             | 788    |   |   |   | 960 |   |   |   | (311 | ) |   |   | 70 |   |   |   |   |   |   |   | 3.91 | % |   |   |   |   |   |   | 0.51 | % |
| Sunrise      Bank of San Diego       |   |                             | 1,212  |   |   |   | 1,431 |   |   |   | (324 | ) |   |   | 146 |   |   |   |   |   |   |   | 5.54 | % |   |   |   |   |   |   | 0.67 | % |
| Sunrise      Community Bank          |   |                             | 416    |   |   |   | 376 |   |   |   | (313 | ) |   |   | (189 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| California      Region Total         |   |                             | 8,148  |   |   |   | 8,430 |   |   |   | (788 | ) |   |   | 20 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                 |   |                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Colorado      Region:                |   |                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Fort      Collins Commerce Bank      |   |                             | 1,273  |   |   |   | 1,124 |   |   |   | 100 |   |   |   | 179 |   |   |   | 4.23 | % |   |   | 7.99 | % |   |   | 0.50 | % |   |   | 1.15 | % |
| Larimer      Bank of Commerce        |   |                             | 1,285  |   |   |   | 960 |   |   |   | 132 |   |   |   | 80 |   |   |   | 6.73 | % |   |   | 4.29 | % |   |   | 0.62 | % |   |   | 0.57 | % |
| Loveland      Bank of Commerce       |   |                             | 419    |   |   |   | 306 |   |   |   | 34 |   |   |   | (61 | ) |   |   | 1.97 | % |   |   |   |   |   |   | 0.43 | % |   |   |   |   |
| Mountain      View Bank of Commerce  |   |                             | 516    |   |   |   | 94 |   |   |   | (62 | ) |   |   | (472 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Colorado      Region Total           |   |                             | 3,493  |   |   |   | 2,484 |   |   |   | 204 |   |   |   | (274 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                 |   |                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Great      Lakes Region:             |   |                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Bank      of Auburn Hills            |   |                             | 575    |   |   |   | 740 |   |   |   | (337 | ) |   |   | (281 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Bank      of Maumee                  |   |                             | 671    |   |   |   | 662 |   |   |   | (102 | ) |   |   | (116 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Bank      of Michigan                |   |                             | 1,157  |   |   |   | 1,293 |   |   |   | 17 |   |   |   | 123 |   |   |   | 0.97 | % |   |   | 7.52 | % |   |   | 0.08 | % |   |   | 0.72 | % |
| Capitol      National Bank           |   |                             | 3,143  |   |   |   | 3,967 |   |   |   | (481 | ) |   |   | 599 |   |   |   |   |   |   |   | 12.66 | % |   |   |   |   |   |   | 1.06 | % |
| Elkhart      Community Bank          |   |                             | 1,160  |   |   |   | 1,472 |   |   |   | (415 | ) |   |   | 130 |   |   |   |   |   |   |   | 5.87 | % |   |   |   |   |   |   | 0.57 | % |
| Evansville      Commerce Bank        |   |                             | 911    |   |   |   | 1,005 |   |   |   | (54 | ) |   |   | (28 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Goshen      Community Bank           |   |                             | 1,121  |   |   |   | 1,368 |   |   |   | 32 |   |   |   | 103 |   |   |   | 1.66 | % |   |   | 5.28 | % |   |   | 0.16 | % |   |   | 0.52 | % |
| Michigan      Commerce Bank(3)       |   |                             | 17,051 |   |   |   | 22,273 |   |   |   | (5,231 | ) |   |   | (1,151 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Ohio      Commerce Bank              |   |                             | 667    |   |   |   | 628 |   |   |   | (76 | ) |   |   | (42 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Paragon      Bank & Trust        |   |                             | 1,430  |   |   |   | 2,066 |   |   |   | (602 | ) |   |   | (166 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Great      Lakes Region Total        |   |                             | 27,886 |   |   |   | 35,474 |   |   |   | (7,249 | ) |   |   | (829 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                 |   |                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Midwest      Region                  |   |                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Adams      Dairy Bank                |   |                             | 532    |   |   |   | 282 |   |   |   | (25 | ) |   |   | (459 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Bank      of Belleville              |   |                             | 911    |   |   |   | 850 |   |   |   | (24 | ) |   |   | (22 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Community      Bank of Lincoln       |   |                             | 857    |   |   |   | 296 |   |   |   | (86 | ) |   |   | (181 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Summit      Bank of Kansas City      |   |                             | 793    |   |   |   | 760 |   |   |   | (86 | ) |   |   | 21 |   |   |   |   |   |   |   | 1.20 | % |   |   |   |   |   |   | 0.19 | % |
| Midwest      Region Total            |   |                             | 3,093  |   |   |   | 2,188 |   |   |   | (221 | ) |   |   | (641 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                 |   |                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

| Nevada      Region:                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| 1st      Commerce Bank             |   |   | 590    |   |   |   | 568    |   |   |   | (159   | )      |   |   | (97    | )      |   |   |   |   |   |   |   |   |   |   |   |   |
| Bank      of Las Vegas             |   |   | 1,225  |   |   |   | 1,239  |   |   |   | 131    |   |   |   | 19     |   |   |   | 6.56   | %      |   |   | 0.86   | %      |   |   | 0.74 | % |   |   | 0.11 | % |
| Black      Mountain Community Bank |   |   | 2,411  |   |   |   | 2,799  |   |   |   | 320    |   |   |   | 398    |   |   |   | 8.94   | %      |   |   | 10.83  | %      |   |   | 0.81 | % |   |   | 1.05 | % |
| Desert      Community Bank         |   |   | 1,474  |   |   |   | 1,889  |   |   |   | (435   | )      |   |   | 136    |   |   |   |   |   |   |   | 5.39   | %      |   |   |   |   |   |   | 0.55 | % |
| Red      Rock Community Bank       |   |   | 1,692  |   |   |   | 2,006  |   |   |   | (826   | )      |   |   | 195    |   |   |   |   |   |   |   | 5.73   | %      |   |   |   |   |   |   | 0.67 | % |
| Nevada      Region Total           |   |   | 7,392  |   |   |   | 8,501  |   |   |   | (969   | )      |   |   | 651    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

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|                               |   | Three      Months Ended March 31 |   |
|------------------------------------|--------|----------------------------------|--------|
|                               |   | Total      Revenues              |   |   | Net      Income (Loss)(1) |   |   | Return      onAverage      Equity(2) |   |   | Return      onAverage      Assets(2) |   |
|                               |   | 2009                             |   |   | 2008 |   |   | 2009 |   |   | 2008 |   |   | 2009 |   |   | 2008 |   |   | 2009 |   |   | 2008 |   |
| Northeast      Region:             |   |                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| USNY      Bank                     |   | $                                | 617    |   |   | $ | 292 |   |   | $ | (172 | ) |   | $ | (215 | ) |   |   |   |   |   |   |   |   |   |   |   |   |
|                               |   |                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Northwest      Region:             |   |                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Bank      of Bellevue              |   |                             | 717    |   |   |   | 750 |   |   |   | (267 | ) |   |   | (94 | ) |   |   |   |   |   |   |   |   |   |   |   |   |
| Bank      of Everett               |   |                             | 581    |   |   |   | 491 |   |   |   | (281 | ) |   |   | (201 | ) |   |   |   |   |   |   |   |   |   |   |   |   |
| Bank      of Tacoma                |   |                             | 573    |   |   |   | 476 |   |   |   | (533 | ) |   |   | (187 | ) |   |   |   |   |   |   |   |   |   |   |   |   |
| High      Desert Bank              |   |                             | 575    |   |   |   | 227 |   |   |   | (210 | ) |   |   | (195 | ) |   |   |   |   |   |   |   |   |   |   |   |   |
| Issaquah      Community Bank       |   |                             | 497    |   |   |   | 230 |   |   |   | (111 | ) |   |   | (174 | ) |   |   |   |   |   |   |   |   |   |   |   |   |
| Northwest      Region Total        |   |                             | 2,943  |   |   |   | 2,174 |   |   |   | (1,402 | ) |   |   | (851 | ) |   |   |   |   |   |   |   |   |   |   |   |   |
|                               |   |                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Southeast      Region:             |   |                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Bank      of Valdosta              |   |                             | 736    |   |   |   | 872 |   |   |   | (158 | ) |   |   | (12 | ) |   |   |   |   |   |   |   |   |   |   |   |   |
| Community      Bank of Rowan       |   |                             | 1,546  |   |   |   | 1,941 |   |   |   | 123 |   |   |   | 250 |   |   |   | 4.69 | % |   |   | 10.42 | % |   |   | 0.38 | % |   |   | 0.87 | % |
| First      Carolina State Bank     |   |                             | 1,369  |   |   |   | 1,783 |   |   |   | (299 | ) |   |   | 112 |   |   |   |   |   |   |   | 3.60 | % |   |   |   |   |   |   | 0.39 | % |
| Peoples      State Bank            |   |                             | 334    |   |   |   | 515 |   |   |   | (62 | ) |   |   | 50 |   |   |   |   |   |   |   | 3.93 | % |   |   |   |   |   |   | 0.84 | % |
| Pisgah      Community Bank         |   |                             | 444    |   |   |   |   |   |   |   | (163 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Sunrise      Bank of Atlanta       |   |                             | 969    |   |   |   | 1,126 |   |   |   | (147 | ) |   |   | (119 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Southeast      Region Total        |   |                             | 5,398  |   |   |   | 6,237 |   |   |   | (706 | ) |   |   | 281 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                               |   |                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Texas      Region:                 |   |                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Bank      of Fort Bend             |   |                             | 298    |   |   |   | 136 |   |   |   | (151 | ) |   |   | (261 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Bank      of Las Colinas           |   |                             | 442    |   |   |   | 221 |   |   |   | (118 | ) |   |   | (179 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Texas      Region Total            |   |                             | 740    |   |   |   | 357 |   |   |   | (269 | ) |   |   | (440 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                               |   |                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Parent      company and other, net |   |                             | (546   | ) |   |   | 734 |   |   |   | 1,031 |   |   |   | 2,170 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                               |   |                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Consolidated      totals           |   | $                                | 73,673 |   |   | $ | 86,068 |   |   | $ | (15,672 | ) |   | $ | 2,191 |   |   |   |   |   |   |   | 2.25 | % |   |   |   |   |   |   | 0.18 | % |

| (1) | Excludes      net losses attributable to noncontrolling interests.                                                                                                                                                                                                                                                 |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (2) | Annualized      for periods presented.                                                                                                                                                                                                                                                                             |
| (3) | Michigan      Commerce Bank resulted from the merger of Ann Arbor Commerce Bank,      Brighton Commerce Bank, Detroit Commerce Bank, Grand Haven Bank, Kent      Commerce Bank, Macomb Community Bank, Muskegon Commerce Bank, Oakland      Commerce Bank and Portage Commerce Bank effective March 31,      2009. |

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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, 2008, during the three months ended March 31,      2009.  Refer to that section of Capitol's Form 10-K for      disclosures regarding the risks and uncertainties related to Capitol's      business.  |
| Item      2.  | Unregistered      Sales of Equity Securities and Use of Proceeds.                                                                                                                                                                                                                                                                                                                                                           |
|          | (a)          None.(b)          Not      applicable.(c)          None.                                                                                                                                                                                                 |
| Item      3.  | Defaults      Upon Senior Securities. None.                                                                                                                                                                                                                                                                                                                                                                            |
| Item      4.  | Submission      of Matters to a Vote of Security Holders. None.                                                                                                                                                                                                                                                                                                                                                        |
| Item      5.  | Other      Information. None.                                                                                                                                                                                                                                                                                                                                                                                          |
| Item      6.  | Exhibits:                                                                                                                                                                                                                                                                                                                                                                                                                        |

| (a)         | (b)                                                                                                                                           |
|-------------|-----------------------------------------------------------------------------------------------------------------------------------------------|
| Exhibit No. | Description of Exhibit                                                                                                                        |
| 31.1        | Certification      of Chief Executive Officer, Joseph D. Reid, pursuant to Section 302 of the      Sarbanes-Oxley Act of 2002.           |
| 31.2        | Certification      of Chief Financial Officer, Lee      W. Hendrickson, pursuant to Section      302 of the Sarbanes-Oxley Act of 2002.  |
| 32.1        | Certification      of Chief Executive Officer, Joseph D. Reid, pursuant to Section 906 of the      Sarbanes-Oxley Act of 2002.           |
| 32.2        | Certification      of Chief Financial Officer, Lee      W. Hendrickson, pursuant to Section 906 of the Sarbanes-Oxley Act of      2002.  |

----

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

----

| Exhibit No. | Description of Exhibit                                                                                                              |
|-------------|------------------------------------------------------------------------------------------------------------------------------------------|
| 31.1        | Certification      of Chief Executive Officer, Joseph D. Reid, pursuant to Section 302 of the      Sarbanes-Oxley Act of 2002.      |
| 31.2        | Certification      of Chief Financial Officer, Lee W. Hendrickson, pursuant to Section 302 of      the Sarbanes-Oxley Act of 2002.  |
| 32.1        | Certification      of Chief Executive Officer, Joseph D. Reid, pursuant to Section 906 of the      Sarbanes-Oxley Act of 2002.      |
| 32.2        | Certification      of Chief Financial Officer, Lee W. Hendrickson, pursuant to Section 906 of      the Sarbanes-Oxley Act of2002.        |

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