----

----

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

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

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

| Class                           |   | Outstanding      at October 31, 2009 |
|---------------------------------|--------|--------------------------------------|
| Common      Stock, No par value |   | 17,509,631      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 – September 30, 2009 and December 31,      2008.                                                        | 5        |
|                     |          Condensed consolidated statements of operations – Three months and nine      monthsended      September 30, 2009 and 2008. | 6        |
|                     | Condensed      consolidated statements of changes in equity – Nine months      endedSeptember      30, 2009 and 2008.                              | 7        |
|                     | Condensed      consolidated statements of cash flows – Nine months ended September      30,2009      and 2008.                                     | 8        |
|                     | Notes      to condensed consolidated financial statements.                                                                                               | 9        |
| Item      2.             | Management's      Discussion and Analysis of Financial Condition and Results of      Operations.                                                         | 20       |
| Item      3.             | Quantitative      and Qualitative Disclosures About Market Risk.                                                                                         | 46       |
| Item      4.             | Controls      and Procedures.                                                                                                                            | 46       |
|  PART      II.      |  OTHER      INFORMATION                                                                                                                             |     |
|  Item      1.       |  Legal      Proceedings.                                                                                                                            |  47 |
| Item      1A.            | Risk      Factors.                                                                                                                                       | 47       |
| Item      2.             | Unregistered      Sales of Equity Securities and Use of Proceeds.                                                                                        | 47       |
| Item      3.             | Defaults      Upon Senior Securities.                                                                                                                    | 47       |
| Item      4.             | Submission      of Matters to a Vote of Security Holders.                                                                                                | 47       |
| Item      5.             | Other      Information.                                                                                                                                  | 47       |
| Item      6.             | Exhibits.                                                                                                                                                | 47       |
|  SIGNATURES         |                                                                                                                                                     |  48 |
|  EXHIBIT      INDEX |                                                                                                                                                     |  49 |

----

| PART      I, ITEM 1                                                                                       |                                    |
|-----------------------------------------------------------------------------------------------------------|-----------------------------------------|
|                                                                                                      |                                    |   |   |   |   |   |   |
| CAPITOL      BANCORP LIMITED                                                                              |                                    |
| Condensed      Consolidated Balance Sheets                                                                |                                    |
| As      of September 30, 2009 and December 31, 2008                                                       |                                    |
| (in      thousands, except share data)                                                                    |                                    |
|                                                                                                      |                                    |   |   |   |   |   |   |
|                                                                                                      |                                    |   | (Unaudited) |   |   |   |   |
|                                                                                                      |                                    |   | September      30, |   |   | December      31, |   |
|                                                                                                      |                                    |   | 2009 |   |   | 2008 |   |
| ASSETS                                                                                                    |                                    |   |   |   |   |   |   |
| Cash      and due from banks                                                                              |                                    |   | $ | 95,929 |   |   | $ | 136,499 |   |
| Money      market and interest-bearing deposits                                                           |                                    |   |   | 768,582 |   |   |   | 391,836 |   |
| Federal      funds sold                                                                                   |                                    |   |   | 25,183 |   |   |   | 96,031 |   |
|                                                                                                      | Cash      and cash equivalents          |   |   | 889,694 |   |   |   | 624,366 |   |
| Loans      held for sale                                                                                  |                                    |   |   | 14,432 |   |   |   | 10,474 |   |
| Investment      securities -- Note C:                                                                     |                                    |   |   |   |   |   |   |   |   |
|    Available      for sale, carried at fair value                                          |                                    |   |   | 18,005 |   |   |   | 15,584 |   |
|    Held      for long-term investment, carried at                                          |                                    |   |   |   |   |   |   |   |   |
|      amortized      cost which approximates fair value                           |                                    |   | 30,710 |   |   |   | 32,856 |   |
|                                                                                                      | Total      investment securities        |   |   | 48,715 |   |   |   | 48,440 |   |
| Portfolio      loans:                                                                                     |                                    |   |   |   |   |   |   |   |   |
|    Loans      secured by real estate:                                                      |                                    |   |   |   |   |   |   |   |   |
|     Commercial                                                                        |                                    |   |   | 2,013,473 |   |   |   | 2,115,515 |   |
|     Residential      (including multi-family)                                         |                                    |   |   | 806,027 |   |   |   | 879,754 |   |
|     Construction,      land development and other land                                |                                    |   | 579,752 |   |   |   | 797,486 |   |
|                                                                                                      | Total      loans secured by real estate |   |   | 3,399,252 |   |   |   | 3,792,755 |   |
|    Commercial      and other business-purpose loans                                        |                                    |   | 707,302 |   |   |   | 845,593 |   |
|    Consumer                                                                                |                                    |   |   | 45,866 |   |   |   | 61,340 |   |
|    Other                                                                                   |                                    |   |   | 37,114 |   |   |   | 35,541 |   |
|                                                                                                      | Total      portfolio loans              |   |   | 4,189,534 |   |   |   | 4,735,229 |   |
|    Less      allowance for loan losses                                                     |                                    |   |   | (126,188 | ) |   |   | (93,040 | ) |
|                                                                                                      | Net      portfolio loans                |   |   | 4,063,346 |   |   |   | 4,642,189 |   |
| Premises      and equipment                                                                               |                                    |   |   | 49,353 |   |   |   | 59,249 |   |
| Accrued      interest income                                                                              |                                    |   |   | 16,069 |   |   |   | 18,871 |   |
| Goodwill                                                                                                  |                                    |   |   | 68,078 |   |   |   | 72,342 |   |
| Other      real estate owned                                                                              |                                    |   |   | 119,801 |   |   |   | 67,171 |   |
| Other      assets                                                                                         |                                    |   |   | 54,674 |   |   |   | 111,734 |   |
|                                                                                                      |                                    |   |   |   |   |   |   |   |   |
|             TOTAL      ASSETS                 |                                    |   | $ | 5,324,162 |   |   | $ | 5,654,836 |   |
|                                                                                                      |                                    |   |   |   |   |   |   |   |   |
| LIABILITIES AND EQUITY                                                                                    |                                    |   |   |   |   |   |   |   |   |
| LIABILITIES:                                                                                              |                                    |   |   |   |   |   |   |   |   |
| Deposits:                                                                                                 |                                    |   |   |   |   |   |   |   |   |
|    Noninterest-bearing                                                                     |                                    |   | $ | 651,887 |   |   | $ | 700,786 |   |
|    Interest-bearing                                                                        |                                    |   |   | 3,856,456 |   |   |   | 3,796,826 |   |
|                                                                                                      | Total      deposits                     |   |   | 4,508,343 |   |   |   | 4,497,612 |   |
| Debt      obligations:                                                                                    |                                    |   |   |   |   |   |   |   |   |
|    Notes      payable and short-term borrowings                                            |                                    |   | 300,326 |   |   |   | 446,925 |   |
|    Subordinated      debentures -- Note G                                                  |                                    |   |   | 167,402 |   |   |   | 167,293 |   |
|                                                                                                      | Total      debt obligations             |   |   | 467,728 |   |   |   | 614,218 |   |
| Accrued      interest on deposits and other liabilities                                                   |                                    |   | 31,489 |   |   |   | 29,938 |   |
|                                                                                                      | Total      liabilities                  |   |   | 5,007,560 |   |   |   | 5,141,768 |   |
|                                                                                                      |                                    |   |   |   |   |   |   |   |   |
| EQUITY:                                                                                                   |                                    |   |   |   |   |   |   |   |   |
| Capitol      Bancorp Limited stockholders' equity -- Note E:                                              |                                    |   |   |   |   |   |   |   |
|   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 - 17,509,631      shares                   |                                    |   |   |   |   |   |   |   |
| 2008      - 17,293,908 shares                                                                             |                                    |   | 277,087 |   |   |   | 274,018 |   |
|   Retained      earnings (deficit)                                                              |                                    |   |   | (38,700 | )  |   |   | 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)                                                  |                                    |   |   | 116 |   |   |   | 144 |   |
| Total      Capitol Bancorp Limited stockholders' equity                                                   |                                    |   | 237,934 |   |   |   | 353,848 |   |
| Noncontrolling      interests in consolidated subsidiaries                                                |                                    |   | 78,668 |   |   |   | 159,220 |   |
|                                                                                                      | Total      equity                       |   |   | 316,602 |   |   |   | 513,068 |   |
|                                                                                                      |                                    |   |   |   |   |   |   |   |   |
|             TOTAL      LIABILITIES AND EQUITY |                                    | $ | 5,324,162 |   |   | $ | 5,654,836 |   |
|                                                                                                      |                                    |   |   |   |   |   |   |   |   |
| See      notes to condensed consolidated financial statements.                                            |                                    |   |   |   |   |   |   |   |

----

| CAPITOL      BANCORP LIMITED                                                                                                                                                                                                                |                    |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------|
| Condensed      Consolidated Statements of Operations (Unaudited)                                                                                                                                                                            |                    |
| For      the Three Months and Nine Months Ended September 30, 2009 and      2008                                                                                                                                                            |                    |
| (in      thousands, except per share data)                                                                                                                                                                                                  |                    |
|                                                                                                                                                                                                                                        |                    |   |   |
|                                                                                                                                                                                                                                        | Three-Month      Period |   |   | Nine-Month      Period |   |
|                                                                                                                                                                                                                                        | 2009                    |   | 2008 |   |   | 2009 |   |   | 2008 |   |
| Interest      income:                                                                                                                                                                                                                       |                    |   |   |   |   |   |   |   |   |   |   |   |
|   Portfolio      loans (including fees)                                                                                                                                                                                           |                    | $ | 66,502 |   |   | $ | 73,328 |   |   | $ | 202,937 |   |   | $ | 224,897 |   |
|   Loans      held for sale                                                                                                                                                                                                        |                    |   | 183 |   |   |   | 145 |   |   |   | 744 |   |   |   | 681 |   |
|   Taxable      investment securities                                                                                                                                                                                              |                    |   | 128 |   |   |   | 154 |   |   |   | 432 |   |   |   | 389 |   |
|   Federal      funds sold                                                                                                                                                                                                         |                    |   | 31 |   |   |   | 1,259 |   |   |   | 89 |   |   |   | 3,480 |   |
|   Other                                                                                                                                                                                                                           |                    |   | 501 |   |   |   | 610 |   |   |   | 1,331 |   |   |   | 1,689 |   |
|                                 Total      interest income                  |                    |   | 67,345 |   |   |   | 75,496 |   |   |   | 205,533 |   |   |   | 231,136 |   |
| Interest      expense:                                                                                                                                                                                                                      |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Deposits                                                                                                                                                                                                                        |                    |   | 21,197 |   |   |   | 27,149 |   |   |   | 68,980 |   |   |   | 84,826 |   |
|   Debt      obligations and other                                                                                                                                                                                                 |                    |   | 6,096 |   |   |   | 7,308 |   |   |   | 18,462 |   |   |   | 21,144 |   |
|                                 Total      interest expense                 |                    |   | 27,293 |   |   |   | 34,457 |   |   |   | 87,442 |   |   |   | 105,970 |   |
|                                 Net      interest income                    |                    |   | 40,052 |   |   |   | 41,039 |   |   |   | 118,091 |   |   |   | 125,166 |   |
| Provision      for loan losses                                                                                                                                                                                                              |                    |   | 48,771 |   |   |   | 53,810 |   |   |   | 112,756 |   |   |   | 71,787 |   |
| Net      interest income (deficiency) after                                                                                                                                                                                                 |                    |   |   |   |   |   |   |   |   |
|                                         provision for loan losses |                    |   | (8,719 | ) |   |   | (12,771 | ) |   |   | 5,335 |   |   |   | 53,379 |   |
| Noninterest      income:                                                                                                                                                                                                                    |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Service      charges on deposit accounts                                                                                                                                                                                        |                    |   | 1,562 |   |   |   | 1,526 |   |   |   | 4,569 |   |   |   | 4,316 |   |
|   Trust      and wealth-management revenue                                                                                                                                                                                        |                    |   | 1,288 |   |   |   | 1,791 |   |   |   | 3,811 |   |   |   | 4,999 |   |
|        Fees from origination of non-portfolio residential                                                                                                                                                                              |                    |   |   |   |   |   |   |   |   |   |   |   |   |
|      mortgage      loans                                                                                                                                                                                           |                    |   | 788 |   |   |   | 926 |   |   |   | 3,186 |   |   |   | 2,910 |   |
|   Gain      on sales of government-guaranteed loans                                                                                                                                                                               |                    |   | 1,242 |   |   |   | 608 |   |   |   | 1,887 |   |   |   | 1,831 |   |
|   Gain      on sale of bank subsidiary                                                                                                                                                                                            |                    |   | 1,187 |   |   |   |   |   |   |   | 1,187 |   |   |   |   |   |
|        Realized gain on sale of investment securities available                                                                                                                                                                        |                    |   |   |   |   |   |   |   |   |   |   |   |   |
|      for      sale                                                                                                                                                                                                 |                    |   | 41 |   |   |   | 5 |   |   |   | 42 |   |   |   | 50 |   |
|   Other                                                                                                                                                                                                                           |                    |   | 1,054 |   |   |   | 2,095 |   |   |   | 4,431 |   |   |   | 5,887 |   |
| Total      noninterest income                                                                                                                                                                                                               |                    |   | 7,162 |   |   |   | 6,951 |   |   |   | 19,113 |   |   |   | 19,993 |   |
| Noninterest      expense:                                                                                                                                                                                                                   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Salaries      and employee benefits                                                                                                                                                                                             |                    |   | 23,482 |   |   |   | 29,319 |   |   |   | 76,977 |   |   |   | 82,597 |   |
|   Occupancy                                                                                                                                                                                                                       |                    |   | 4,864 |   |   |   | 4,968 |   |   |   | 14,598 |   |   |   | 13,872 |   |
|   Equipment      rent, depreciation and maintenance                                                                                                                                                                               |                    |   | 3,046 |   |   |   | 3,821 |   |   |   | 9,680 |   |   |   | 9,695 |   |
|   Costs      associated with foreclosed properties and other                                                                                                                                                                      |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|      real      estate owned                                                                                                                                                                                        |                    |   | 9,834 |   |   |   | 2,040 |   |   |   | 17,971 |   |   |   | 4,132 |   |
|   FDIC      insurance premiums and other regulatory fees                                                                                                                                                                          |                    |   | 3,796 |   |   |   | 1,029 |   |   |   | 11,258 |   |   |   | 2,899 |   |
|   Other                                                                                                                                                                                                                           |                    |   | 10,455 |   |   |   | 12,615 |   |   |   | 26,676 |   |   |   | 33,190 |   |
| Total      noninterest expense                                                                                                                                                                                                              |                    |   | 55,477 |   |   |   | 53,792 |   |   |   | 157,160 |   |   |   | 146,385 |   |
| Loss      before income taxes (benefit)                                                                                                                                                                                                     |                    |   | (57,034 | ) |   |   | (59,612 | ) |   |   | (132,712 | ) |   |   | (73,013 | ) |
| Income      taxes (benefit)                                                                                                                                                                                                                 |                    |   | 72,140 |   |   |   | (20,732 | ) |   |   | 44,721 |   |   |   | (25,428 | ) |
| NET      LOSS                                                                                                                                                                                                                               |                    |   | (129,174 | ) |   |   | (38,880 | ) |   |   | (177,433 | ) |   |   | (47,585 | ) |
| Less      net losses attributable to noncontrolling interests                                                                                                                                                                               |                    |   | 45,426 |   |   |   | 6,385 |   |   |   | 59,315 |   |   |   | 17,904 |   |
|                                                                                                                                                                                                                                        |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|       NET      LOSS ATTRIBUTABLE TO CAPITOL                                                                                                                                                                   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|       BANCORP      LIMITED                                                                                                                                                                                    |                    | $ | (83,748 | ) |   | $ | (32,495 | ) |   | $ | (118,118 | ) |   | $ | (29,681 | ) |
|                                                                                                                                                                                                                                        |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|       NET      LOSS PER SHARE ATTRIBUTABLE                                                                                                                                                                    |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|       TO      CAPITOL BANCORP LIMITED -- Note F:                                                                                                                                                              |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic      and Diluted                                                                                                                                                                                                                      |                    | $ | (4.81 | ) |   | $ | (1.90 | ) |   | $ | (6.84 | ) |   | $ | (1.73 | ) |
|                                                                                                                                                                                                                                        |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| See      notes to condensed consolidated financial statements.                                                                                                                                                                              |                    |   |   |   |   |   |   |   |   |   |   |   |   |

----

| CAPITOL      BANCORP LIMITED                                                      |                                              |
|-----------------------------------------------------------------------------------|---------------------------------------------------|
| Condensed      Consolidated Statements of Changes in Equity (Unaudited)           |                                              |
| For      the Nine Months Ended September 30, 2009 and 2008                        |                                              |
| (in      thousands, except share and per share data)                              |                                              |
|                                                                              |                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                              |                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                              | Capitol      Bancorp Limited Stockholders' Equity |   |   |   |   |   |   |   |
|                                                                              |                                              |   |   |   |   |   |   | Undistributed  |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                              |                                              |   |   |   |   |   |   | Common      Stock |   |   | Accumulated |   |   | Total      Capitol |   |   | Noncontrolling |   |   |   |   |
|                                                                              |                                              |   |   | Retained  |   |   | Held      by  |   |   | Other |   |   | Bancorp      Limited |   |   | Interests      in |   |   |   |   |
|                                                                              | Common                                            |   | Earnings |   |   |  Employee- |   |   | Comprehensive |   |   | Stockholders' |   |   | Consolidated |   |   | Total |   |
|                                                                              | Stock                                             |   | (Deficit) |   |   | Benefit      Trust |   |   | Income |   |   | Equity |   |   | Subsidiaries |   |   | Equity |   |
|                                                                              |                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Nine      Months Ended September 30, 2008                                         |                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                              |                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balances      at January 1, 2008                                                  |                                              | $ | 272,208 |   |   | $ | 117,520 |   |   | $ | (586 | ) |   | $ | 3 |   |   | $ | 389,145 |   |   | $ | 156,198 |   |   | $ | 545,343 |   |
|                                                                              |                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Investment      in consolidated subsidiary by noncontrolling                      |                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    interests                                                       |                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 22,410 |   |   |   | 22,410 |   |
|                                                                              |                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Issuance      of 109,435 shares of common stock upon exercise                     |                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    of      stock options                                           |                                              |   | 1,960 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 1,960 |   |   |   |   |   |   |   | 1,960 |   |
|                                                                              |                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Surrender      of 93,964 shares of common stock to facilitate                     |                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    exercise      of stock options                                  |                                              |   | (2,090 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (2,090 | ) |   |   |   |   |   |   | (2,090 | ) |
|                                                                              |                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Surrender      of 14,199 shares of common stock to facilitate                     |                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    vesting      of restricted stock                                |                                              |   | (286 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (286 | ) |   |   |   |   |   |   | (286 | ) |
|                                                                              |                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Issuance      of 31,790 unvested shares of restricted common                      |                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|         stock, net of related unearned employee compensation            |                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    and      12,322 forfeited shares                                |                                              |   | -- |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | -- |   |   |   |   |   |   |   | -- |   |
|                                                                              |                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Recognition      of compensation expense relating to restricted                   |                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    common      stock and stock options                             |                                              |   | 1,693 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 1,693 |   |   |   |   |   |   |   | 1,693 |   |
|                                                                              |                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Tax      benefits from share-based payments                                       |                                              |   | 161 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 161 |   |   |   |   |   |   |   | 161 |   |
|                                                                              |                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Transfer      of 250 shares of common stock to employee stock                     |                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    ownership      plan                                             |                                              |   | (2 | ) |   |   |   |   |   |   | 6 |   |   |   |   |   |   |   | 4 |   |   |   |   |   |   |   | 4 |   |
|                                                                              |                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash      dividends paid ($0.45 per share)                                        |                                              |   |   |   |   |   | (7,792 | ) |   |   |   |   |   |   |   |   |   |   | (7,792 | ) |   |   |   |   |   |   | (7,792 | ) |
|                                                                              |                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Components      of comprehensive loss:                                            |                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Net      loss                                                   |                                              |   |   |   |   |   | (29,681 | ) |   |   |   |   |   |   |   |   |   |   | (29,681 | ) |   |   | (17,904 | ) |   |   | (47,585 | ) |
|         Fair value adjustment for investment securities                 |                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|            available for sale (net of income tax effect) |                                              |   |   |   |   |   |   |   |   |   |   | (6 | ) |   |   | (6 | ) |   |   |   |   |   |   | (6 | ) |
|          Comprehensive      loss     |                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (47,591 | ) |
|                                                                              |                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     BALANCES      AT SEPTEMBER 30, 2008                       |                                              | $ | 273,644 |   |   | $ | 80,047 |   |   | $ | (580 | ) |   | $ | (3 | ) |   | $ | 353,108 |   |   | $ | 160,704 |   |   | $ | 513,812 |   |
|                                                                              |                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                              |                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Nine      Months Ended September 30, 2009                                         |                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                              |                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balances      at January 1, 2009                                                  |                                              | $ | 274,018 |   |   | $ | 80,255 |   |   | $ | (569 | ) |   | $ | 144 |   |   | $ | 353,848 |   |   | $ | 159,220 |   |   | $ | 513,068 |   |
|                                                                              |                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Sale      of subsidiary shares to noncontrolling interest                         |                                              |   |   | 27 |   |   |   |   |   |   |   |   |   |   |   | 27 |   |   |   | 134 |   |   |   | 161 |   |
|                                                                              |                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Reduction      in noncontrolling interests in consolidated                        |                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|         subsidiaries due to deconsolidation -- Note I                   |                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (18,829 | ) |   |   | (18,829 | ) |
|                                                                              |                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Issuance      of 227,357 shares of common stock to acquire                        |                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    noncontrolling      interest in subsidiaries                    |                                              |   | 2,542 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 2,542 |   |   |   | (2,542 | ) |   |   | -- |   |
|                                                                              |                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Surrender      of 3,934 shares of common stock to facilitate                      |                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    vesting      of restricted stock                                |                                              |   | (23 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (23 | ) |   |   |   |   |   |   | (23 | ) |
|                                                                              |                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Recognition      of compensation expense relating to restricted                   |                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    common      stock and stock options -- Note E                   |                                              |   | 719 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 719 |   |   |   |   |   |   |   | 719 |   |
|                                                                              |                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Tax      effect of share-based payments                                           |                                              |   | (169 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (169 | ) |   |   |   |   |   |   | (169 | ) |
|                                                                              |                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash      dividends paid ($0.05 per share)                                        |                                              |   |   |   |   |   | (864 | ) |   |   |   |   |   |   |   |   |   |   | (864 | ) |   |   |   |   |   |   | (864 | ) |
|                                                                              |                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Components      of comprehensive loss:                                            |                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Net      loss                                                   |                                              |   |   |   |   |   | (118,118 | ) |   |   |   |   |   |   |   |   |   |   | (118,118 | ) |   |   | (59,315 | ) |   |   | (177,433 | ) |
|         Fair value adjustment for investment securities                 |                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|            available for sale (net of income tax effect) |                                              |   |   |   |   |   |   |   |   |   |   | (28 | ) |   |   | (28 | ) |   |   |   |   |   |   | (28 | ) |
|          Comprehensive      loss     |                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (118,146 | ) |   |   |   |   |   |   | (177,461 | ) |
|                                                                              |                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     BALANCES      AT SEPTEMBER 30, 2009                       |                                              | $ | 277,087 |   |   | $ | (38,700 | )  |   | $ | (569 | ) |   | $ | 116 |   |   | $ | 237,934 |   |   | $ | 78,668 |   |   | $ | 316,602 |   |
|                                                                              |                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                              |                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| See      notes to condensed consolidated financial statements.                    |                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

| CAPITOL      BANCORP LTD.                                                                                                                       |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| Condensed      Consolidated Statements of Cash Flows (Unaudited)                                                                                |   |
| For      the Nine Months Ended September 30, 2009 and 2008                                                                                      |   |
| (in      thousands)                                                                                                                             |   |
|                                                                                                                                            |   |   |   |   |   |   |
|                                                                                                                                            |   | 2009 |   |   | 2008 |   |
|                                                                                                                                            |   |   |   |   |   |   |
| OPERATING      ACTIVITIES                                                                                                                       |   |   |   |   |   |   |
|   Net      loss                                                                                                                       |   | $ | (177,433 | ) |   | $ | (47,585 | ) |
|        Adjustments to reconcile net loss to net cash provided                                                                              |   |   |   |   |   |
|     by      operating activities:                                                                                           |   |   |   |   |   |   |   |   |
|       Provision      for loan losses                                                                              |   |   | 112,756 |   |   |   | 71,787 |   |
|       Depreciation      of premises and equipment                                                                 |   |   | 7,841 |   |   |   | 8,433 |   |
|       Amortization      of intangibles and goodwill impairment                                                    |   |   | 2,486 |   |   |   | 376 |   |
|       Net      accretion of investment security discounts                                                         |   |   | (38 | ) |   |   | (1 | ) |
|       Loss      on sale of premises and equipment                                                                 |   |   | 107 |   |   |   | 158 |   |
|       Gain      on sales of government-guaranteed loans                                                           |   |   | (1,887 | ) |   |   | (1,831 | ) |
|       Gain      on sale of bank subsidiary                                                                        |   |   | (1,187 | ) |   |   |   |   |
|            Realized gain on sale of investment securities available                                                    |   |   |   |   |   |
|          for      sale                                                                             |   |   | (42 | ) |   |   | (50 | ) |
|       Loss      on sales of other real estate owned                                                               |   |   | 1,007 |   |   |   | 505 |   |
|       Write-down      in other real estate owned                                                                  |   |   | 12,771 |   |   |   | 14,730 |   |
|       Amortization      of issuance costs of subordinated debentures                                              |   |   | 109 |   |   |   | 81 |   |
|       Share-based      compensation expense                                                                       |   |   | 719 |   |   |   | 1,693 |   |
|            Provision to establish valuation allowance for deferred                                                     |   |   |   |   |   |
|          tax      assets                                                                           |   |   | 41,845 |   |   |   | - |   |
|   Originations      and purchases of loans held for sale                                                                              |   |   | (261,951 | ) |   |   | (170,646 | ) |
|   Proceeds      from sales of loans held for sale                                                                                     |   |   | 257,552 |   |   |   | 179,731 |   |
|   Decrease      (increase) in accrued interest income and other assets                                                                |   |   | 24,204 |   |   |   | (36,133 | ) |
|        Increase (decrease) in accrued interest expense on deposits      and                                                                |   |   |   |   |
|      other      liabilities                                                                                            |   |   | 2,751 |   |   |   | (5,065 | ) |
|                                                                                                                                            |   |   |   |   |   |   |   |   |
|                 NET      CASH PROVIDED BY OPERATING             |   |   |   |   |   |   |   |   |
|                    ACTIVITIES                    |   |   | 21,610 |   |   |   | 16,183 |   |
|                                                                                                                                            |   |   |   |   |   |   |   |   |
| INVESTING      ACTIVITIES                                                                                                                       |   |   |   |   |   |   |   |   |
|   Proceeds      from sales of investment securities available for sale                                                                |   |   | 916 |   |   |   | 1,024 |   |
|        Proceeds from calls, prepayments and maturities of    investment                                                                    |   |   |   |   |   |
|      securities                                                                                                        |   |   | 15,166 |   |   |   | 14,435 |   |
|   Purchases      of investment securities                                                                                             |   |   | (33,783 | ) |   |   | (27,171 | ) |
|   Net      decrease (increase) in portfolio loans                                                                                     |   |   | 132,454 |   |   |   | (441,524 | ) |
|   Proceeds      from sales of premises and equipment                                                                                  |   |   | 1,974 |   |   |   | 167 |   |
|   Purchases      of premises and equipment                                                                                            |   |   | (3,655 | ) |   |   | (8,727 | ) |
|   Proceeds      from sale of bank subsidiary                                                                                          |   |   | 9,506 |   |   |   |   |   |
|   Proceeds      from sale of other real estate owned                                                                                  |   |   | 11,182 |   |   |   | 5,746 |   |
|                                                                                                                                            |   |   |   |   |   |   |   |   |
| NET      CASH PROVIDED (USED) BY INVESTING                                                                                                      |   |   |   |   |   |
|                    ACTIVITIES                    |   |   | 133,760 |   |   |   | (456,050 | ) |
|                                                                                                                                            |   |   |   |   |   |   |   |   |
| FINANCING      ACTIVITIES                                                                                                                       |   |   |   |   |   |   |   |   |
|        Net increase (decrease) in demand deposits, NOW accounts                                                                            |   |
|      and      savings accounts                                                                                         |   |   | 295,852 |   |   |   | (79,524 | ) |
|   Net      increase (decrease) in certificates of deposit                                                                             |   |   | (27,992 | ) |   |   | 518,340 |   |
|   Net      proceeds from (payments on) debt obligations                                                                               |   |   | 953 |   |   |   | (3,665 | ) |
|   Proceeds      from Federal Home Loan Bank advances                                                                                  |   |   | 2,768,830 |   |   |   | 1,278,205 |   |
|   Payments      on Federal Home Loan Bank advances                                                                                    |   |   | (2,876,522 | ) |   |   | (1,162,388 | ) |
|   Net      proceeds from issuance of subordinated debentures                                                                          |   |   | - |   |   |   | 11,131 |   |
|   Resources      provided by noncontrolling interests                                                                                 |   |   | 134 |   |   |   | 22,410 |   |
|   Net      proceeds from issuance of common stock                                                                                     |   |   | - |   |   |   | 1,960 |   |
|   Tax      effect of share-based payments                                                                                             |   |   | (169 | ) |   |   | 161 |   |
|   Cash      dividends paid                                                                                                            |   |   | (864 | ) |   |   | (7,792 | ) |
|                                                                                                                                            |   |   |   |   |   |   |   |   |
|                 NET      CASH PROVIDED BY FINANCING ACTIVITIES  |   |   | 160,222 |   |   |   | 578,838 |   |
|                                                                                                                                            |   |   |   |   |   |   |   |   |
|                 INCREASE      IN CASH AND CASH EQUIVALENTS      |   |   | 315,592 |   |   |   | 138,971 |   |
|                                                                                                                                            |   |   |   |   |   |   |   |   |
| Cash      and cash equivalents of deconsolidated subsidiaries                                                                                   |   |   | (50,264 | ) |   |   | - |   |
|                                                                                                                                            |   |   |   |   |   |   |   |   |
| Cash      and cash equivalents at beginning of period                                                                                           |   |   | 624,366 |   |   |   | 352,372 |   |
|                                                                                                                                            |   |   |   |   |   |   |   |   |
|                                                                                                                                            |   |   |   |   |   |   |   |   |
|                 CASH      AND CASH EQUIVALENTS AT END OF PERIOD |   | $ | 889,694 |   |   | $ | 491,343 |   |
|                                                                                                                                            |   |   |   |   |   |   |   |   |
| Supplemental      disclosure of cash flow information:                                                                                          |   |   |   |   |   |   |   |   |
|   Cash      paid during the period for interest on deposits and debt      obligations                                                 |   | $ | 88,356 |   |   | $ | 106,789 |   |
|   Transfers      of loans to other real estate owned                                                                                  |   |   | 80,991 |   |   |   | 63,458 |   |
|        Surrender of common stock to facilitate exercise of stock      options                                                              |   |   |   |   |
|      and      vesting of restricted stock                                                                              |   |   | 23 |   |   |   | 2,376 |   |
|                                                                                                                                            |   |   |   |   |   |   |   |   |
| See      notes to condensed consolidated financial statements.                                                                                  |   |   |   |   |   |   |   |   |

----

----

----

|                                             |   | September      30, 2009 |      |   | December      31, 2008 |
|--------------------------------------------------|--------|-------------------------|-----------|--------|------------------------|
|                                             |   | AmortizedCost           |      |   | EstimatedFairValue     |   |   | AmortizedCost |   |   | EstimatedFairValue |
| Available      for sale:                         |   |                    |      |   |                   |   |   |   |   |   |   |
| United      States government agencysecurities   |   | $                       | 7,150     |   |                   | $ | 7,161 |   |   | $ | 9,785 |   |   | $ | 9,913 |
| Mortgage-backed      securities                  |   |                    | 9,912     |   |                   |   | 10,061 |   |   |   | 4,813 |   |   |   | 4,890 |
| Municipals                                       |   |                    | 767       |   |                   |   | 783 |   |   |   | 768 |   |   |   | 781 |
|                                             |   |                    | 17,829    |   |                   |   | 18,005 |   |   |   | 15,366 |   |   |   | 15,584 |
| Held      for long-term investment:              |   |                    |      |   |                   |   |   |   |   |   |   |   |   |   |   |
| Federal      Reserve Bank stock                  |   |                    | 210       |   |                   |   | 210 |   |   |   | 146 |   |   |   | 146 |
| Federal      Home Loan Bank stock                |   |                    | 24,534    |   |                   |   | 24,534 |   |   |   | 26,053 |   |   |   | 26,053 |
| Capitol      Development BancorpLimited      III |   |                    |  637 |   |                   |   |  637 |   |   |   |   |   |   |   |   |
| Corporate                                        |   |                    | 5,229     |   |                   |   | 5,229 |   |   |   | 6,591 |   |   |   | 6,591 |
| Other                                            |   |                    | 100       |   |                   |   | 100 |   |   |   | 66 |   |   |   | 66 |
|                                             |   |                    | 30,710    |   |                   |   | 30,710 |   |   |   | 32,856 |   |   |   | 32,856 |
|                                             |   |                    |      |   |                   |   |   |   |   |   |   |   |   |   |   |
|                                             |   | $                       | 48,539    |   |                   | $ | 48,715 |   |   | $ | 48,222 |   |   | $ | 48,440 |

|                                           |   | September      30, 2009 |   |   | December      31, 2008 |
|------------------------------------------------|--------|-------------------------|--------|--------|------------------------|
|                                           |   | Gains                   |   |   | Losses                 |   |   | Gains |   |   | Losses |
| United      States government agencysecurities |   | $                       | 13     |   |                   | $ | 2 |   |   | $ | 128 |   |   | $ | -- |
| Mortgage-backed      securities                |   |                    | 149    |   |                   |   | -- |   |   |   | 85 |   |   |   | 8 |
| Municipals                                     |   |                    | 16     |   |                   |   | -- |   |   |   | 13 |   |   |   | -- |
|                                           |   |                    |   |   |                   |   |   |   |   |   |   |   |   |   |   |
|                                           |   | $                       | 178    |   |                   | $ | 2 |   |   | $ | 226 |   |   | $ | 8 |

----

|                                           |   | September      30, 2009 |    |   | December      31, 2008 |
|------------------------------------------------|--------|-------------------------|---------|--------|------------------------|
|                                           |   | UnrealizedLoss          |    |   | CarryingValue          |   |   | UnrealizedLoss |   |   | CarryingValue |
|                                           |   |                    |    |   |                   |   |   |   |   |   |   |
| One      year or less:                         |   |                    |    |   |                   |   |   |   |   |   |   |
| Mortgage-backed      securities                |   | $                       | --      |   |                   | $ | -- |   |   | $ | 4 |   |   | $ | 281 |
| United      States government agencysecurities |   |                    |  2 |   |                   |   |  700 |   |   |   |  -- |   |   |   |  -- |
|                                           |   | $                       | 2       |   |                   | $ | 700 |   |   | $ | 4 |   |   | $ | 281 |
| In      excess of one year:                    |   |                    |    |   |                   |   |   |   |   |   |   |   |   |   |   |
| Mortgage-backed      securities                |   | $                       | --      |   |                   | $ | -- |   |   | $ | 4 |   |   | $ | 501 |

|                                     |   | AmortizedCost |   |   | EstimatedFair      Value |
|------------------------------------------|--------|---------------|--------|--------|--------------------------|
|                                     |   |          |   |   |                     |
| Due      in one year or less             |   | $             | 5,517  |   |                     | $ | 5,523 |
| After      one year, through five years  |   |          | 2,311  |   |                     |   | 2,326 |
| After      five years, through ten years |   |          | 580    |   |                     |   | 591 |
| After      ten years                     |   |          | 9,421  |   |                     |   | 9,565 |
| Securities      held for long-term       |   |          |   |   |                     |   |   |
| investment      without stated           |   |          |   |   |                     |   |   |
| maturities                               |   |          | 30,710 |   |                     |   | 30,710 |
|                                     |   |          |   |   |                     |   |   |
|                                     |   | $             | 48,539 |   |                     | $ | 48,715 |

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

|   | Mortgage loans held for      sale:  Mortgage loans held for sale are carried at the      lower of cost or fair value and are measured on a nonrecurring      basis.  There were no mortgage loans held for sale written down      to fair value at September 30, 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 estimated fair value less estimated costs to sell upon      transfer from portfolio loans to other real estate owned, establishing a      new accounting basis.  The Corporation subsequently adjusts      estimated fair value 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 |      |   | Significant      OtherObservable      Inputs(Level      2) |
|------------------------------------------------|--------|-------------|-----------|--------|------------------------------------------------------------|
|                                           |   |        |      |   |                                                       |
| Investment      securities available for sale: |   |        |      |   |                                                       |
| United      States government agencysecurities |   | $           | 7,161     |   |                                                       | $ | 7,161 |
| Mortgage-backed      securities                |   |        | 10,061    |   |                                                       |   | 10,061 |
| Municipals                                     |   |        |  783 |   |                                                       |   |  783 |
|                                           |   | $           | 18,005    |   |                                                       | $ | 18,005 |

|                                           |   |  Total |      |   | Significant      OtherObservable      Inputs(Level      2) |
|------------------------------------------------|--------|-------------|-----------|--------|------------------------------------------------------------|
|                                           |   |        |      |   |                                                       |
| Investment      securities available for sale: |   |        |      |   |                                                       |
| United      States government agencysecurities |   | $           | 9,913     |   |                                                       | $ | 9,913 |
| Mortgage-backed      securities                |   |        | 4,890     |   |                                                       |   | 4,890 |
| Municipals                                     |   |        |  781 |   |                                                       |   |  781 |
|                                           |   | $           | 15,584    |   |                                                       | $ | 15,584 |

----

|                             |   |  Total |    |   | SignificantUnobservable      Inputs(Level      3) |
|----------------------------------|--------|-------------|---------|--------|---------------------------------------------------|
|                             |   |        |    |   |                                              |
| Impaired      loans (1)          |   | $           | 123,914 |   |                                              | $ | 123,914 |
|                             |   |        |    |   |                                              |   |   |
| Other      real estate owned (1) |   | $           | 119,801 |   |                                              | $ | 119,801 |

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

|                    |   |  Total |    |   | Significant      OtherObservable      Inputs(Level      2) |
|-------------------------|--------|-------------|---------|--------|------------------------------------------------------------|
|                    |   |        |    |   |                                                       |
| Impaired      loans (1) |   | $           | 103,580 |   |                                                       | $ | 103,580 |

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

----

|                                              |   | September      30, 2009  |          |   | December      31, 2008  |   |
|---------------------------------------------------|--------|-------------------------------|---------------|--------|------------------------------|--------|
|                                              |   | CarryingValue                 |          |   | EstimatedFair      Value     |   |   | CarryingValue |   |   | EstimatedFair      Value |   |
| Financial      assets:                            |   |                          |          |   |                         |   |   |   |   |   |   |   |
| Cash      and cash equivalents                    |   | $                             | 889,694       |   |                         | $      | 889,694 |   |   | $ | 624,366 |   |   | $ | 624,366 |   |
| Loans      held for sale                          |   |                          | 14,432        |   |                         |   | 14,432 |   |   |   | 10,474 |   |   |   | 10,474 |   |
| Investment      securities:                       |   |                          |          |   |                         |   |   |   |   |   |   |   |   |   |   |   |
| Available      for sale                           |   |                          | 18,005        |   |                         |   | 18,005 |   |   |   | 15,584 |   |   |   | 15,584 |   |
| Held      for long-term investment                |   |                          | 30,710        |   |                         |   | 30,710 |   |   |   | 32,856 |   |   |   | 32,856 |   |
|                                              |   |                          | 48,715        |   |                         |   | 48,715 |   |   |   | 48,440 |   |   |   | 48,440 |   |
| Portfolio      loans:                             |   |                          |          |   |                         |   |   |   |   |   |   |   |   |   |   |   |
| Loans      secured by real estate:                |   |                          |          |   |                         |   |   |   |   |   |   |   |   |   |   |   |
| Commercial                                        |   |                          | 2,013,473     |   |                         |   | 2,026,975 |   |   |   | 2,115,515 |   |   |   | 2,105,204 |   |
| Residential      (including multi-family)         |   |                          | 806,027       |   |                         |   | 802,209 |   |   |   | 879,754 |   |   |   | 865,406 |   |
| Construction,      land development and otherland |   |                          |  579,752 |   |                         |   |  515,233 |   |   |   |  797,486 |   |   |   |  753,028 |   |
|        Total loans secured by real estate    |   |                          | 3,399,252     |   |                         |   | 3,344,417 |   |   |   | 3,792,755 |   |   |   | 3,723,638 |   |
| Commercial      and other business-purpose loans  |   |                          | 707,302       |   |                         |   | 706,085 |   |   |   | 845,593 |   |   |   | 830,283 |   |
| Consumer                                          |   |                          | 45,866        |   |                         |   | 46,394 |   |   |   | 61,340 |   |   |   | 62,313 |   |
| Other                                             |   |                          | 37,114        |   |                         |   | 36,243 |   |   |   | 35,541 |   |   |   | 32,504 |   |
|        Total portfolio loans                 |   |                          | 4,189,534     |   |                         |   | 4,133,139 |   |   |   | 4,735,229 |   |   |   | 4,648,738 |   |
| Less      allowance for loan losses               |   |                          | (126,188      | )      |                         |   | (126,188 | ) |   |   | (93,040 | ) |   |   | (93,040 | ) |
|        Net portfolio loans                   |   |                          | 4,063,346     |   |                         |   | 4,006,951 |   |   |   | 4,642,189 |   |   |   | 4,555,698 |   |
|                                              |   |                          |          |   |                         |   |   |   |   |   |   |   |   |   |   |   |
| Financial      liabilities:                       |   |                          |          |   |                         |   |   |   |   |   |   |   |   |   |   |   |
| Deposits:                                         |   |                          |          |   |                         |   |   |   |   |   |   |   |   |   |   |   |
| Noninterest-bearing                               |   |                          | 651,887       |   |                         |   | 651,887 |   |   |   | 700,786 |   |   |   | 700,786 |   |
| Interest-bearing:                                 |   |                          |          |   |                         |   |   |   |   |   |   |   |   |   |   |   |
| Demand      accounts                              |   |                          | 1,341,614     |   |                         |   | 1,341,619 |   |   |   | 1,231,170 |   |   |   | 1,231,172 |   |
| Time      certificates of less than $100,000      |   |                          | 909,826       |   |                         |   | 917,813 |   |   |   | 1,160,221 |   |   |   | 1,161,411 |   |
| Time      certificates of $100,000 or more        |   |                          | 1,605,016     |   |                         |   | 1,610,752 |   |   |   | 1,405,435 |   |   |   | 1,408,431 |   |
|        Total interest-bearing                |   |                          | 3,856,456     |   |                         |   | 3,870,184 |   |   |   | 3,796,826 |   |   |   | 3,801,014 |   |
|        Total deposits                        |   |                          | 4,508,343     |   |                         |   | 4,522,071 |   |   |   | 4,497,612 |   |   |   | 4,501,800 |   |
| Notes      payable and short-term borrowings      |   |                          | 300,326       |   |                         |   | 302,051 |   |   |   | 446,925 |   |   |   | 447,490 |   |
| Subordinated      debentures                      |   |                          | 167,402       |   |                         |   | 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        |   |                                        |  (68,699 | )      |               |   |    13.50 to    21.82 |                         |   |   | 20.88 |
|                             |   |                                        |          |   |               |   |                                                         |                         |   |   |   |
| Outstanding      at September 30 |   |                                        | 2,374,980     |   |               | $      | 6.04 to $ 46.20                               |                         |   | $ | 27.84 |

|                     |                     |   |              |      |          | Weighted      Average |
|--------------------------|--------------------------|--------|-------------------|-----------|---------------|-----------------------|
| Exercise      PriceRange |                     |   | NumberOutstanding |      |          | ExercisePrice         |   | RemainingContractualLife |
|                     |                     |   |              |      |          |                  |   |   |
| $                        | 5.00 to 14.99  |   |              |      | 69,520        |                  |   | $ | 6.04 |   | 6.61      years |
| $                        | 15.00 to 19.99 |   |              |      | 135,288       |                  |   |   | 16.67 |   | 1.23      years |
| $                        | 20.00 to 24.99 |   |              |      | 522,130       |                  |   |   | 21.70 |   | 2.30      years |
| $                        | 25.00 to 29.99 |   |              |      | 585,415       |                  |   |   | 27.09 |   | 1.15      years |
| $                        | 30.00 to 34.99 |   |              |      | 695,119       |                  |   |   | 32.10 |   | 2.19      years |
| $                   | 35.00 or more  |   |              |      |  367,508 |                  |   |   | 37.92 |   | 3.42      years |
|                     |                     |   |              |      |          |                  |   |   |   |   |   |
| Total      outstanding   |                     |   |              | 2,374,980 |          |                  |   |   |   |   |

----

|                                                                                                                                    |   | Three      Month Period |                |   | Nine      Month Period |   |
|-----------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------|---------------------|--------|------------------------|--------|
|                                                                                                                                    |   | 2009                    |                |   | 2008                   |   |   | 2009 |   |   | 2008 |   |
|                                                                                                                                    |   |                    |                |   |                   |   |   |   |   |   |   |   |
| Numerator—net      loss attributable to CapitolBancorp      Limited for the period                                                |   | $                       | (83,748             | )      |                   | $      | (32,495 | ) |   | $ | (118,118 | ) |   | $ | (29,681 | ) |
|                                                                                                                                    |   |                    |                |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Denominator:                                                                                                                            |   |                    |                |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Weighted      average number of shares outstanding,excluding      unvested restricted shares(denominator      for basic loss per share) |   |                    |    17,398 |   |                   |   |    17,145 |   |   |   |    17,269 |   |   |   |    17,144 |   |
|                                                                                                                                    |   |                    |                |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Effect      of dilutive securities:                                                                                                     |   |                    |                |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Unvested      restricted shares                                                                                                         |   |                    | --                  |   |                   |   | -- |   |   |   | -- |   |   |   | -- |   |
| Warrants                                                                                                                                |   |                    | --                  |   |                   |   |   |   |   |   | -- |   |   |   |   |   |
| Stock      options                                                                                                                      |   |                    | --                  |   |                   |   | -- |   |   |   | -- |   |   |   | -- |   |
| Total      effect of dilutive securities                                                                                                |   |                    | --                  |   |                   |   | -- |   |   |   | -- |   |   |   | -- |   |
|                                                                                                                                    |   |                    |                |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Denominator      for diluted net loss per share—                                                                                  |   |                    |                |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Weighted      average number of shares andpotential      dilution                                                                       |   |                    |  17,398        |   |                   |   |  17,145 |   |   |   |  17,269 |   |   |   |  17,144 |   |
|                                                                                                                                    |   |                    |                |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Number      of antidilutive stock options excludedfrom      diluted net loss per share computation(see      Note E)                     |   |                    |    2,375  |   |                   |   |    2,389 |   |   |   |    2,375 |   |   |   |    2,389 |   |
|                                                                                                                                    |   |                    |                |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Number      of antidilutive unvested restricted sharesexcluded      from diluted net loss per sharecomputation                          |   |                    |    109    |   |                   |   |    61 |   |   |   |    109 |   |   |   |    61 |   |
|                                                                                                                                    |   |                    |                |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Number      of antidilutive warrants excluded fromdiluted      net loss per share computation                                           |   |                    |  76            |   |                   |   |   |   |   |   |  76 |   |   |   |   |   |

----

----

----

|                                 |   | Total      Assets       |
|--------------------------------------|--------|-------------------------|
|                                 |   | September      30, 2009 |   |   | December      31, 2008 |
| Arizona      Region:                 |   |                    |   |   |   |
| Arrowhead      Community Bank        |   | $                       | 77,223 |   |   | $ | 80,606 |
| Asian      Bank of Arizona           |   |                    | 40,202 |   |   |   | 38,127 |
| Bank      of Tucson                  |   |                    | 206,996 |   |   |   | 189,869 |
| Camelback      Community Bank        |   |                    | 89,859 |   |   |   | 93,754 |
| Central      Arizona Bank            |   |                    | 88,347 |   |   |   | 79,775 |
| Colonia      Bank                    |   |                    | 12,786 |   |   |   | 12,522 |
| Mesa      Bank                       |   |                    | 206,423 |   |   |   | 248,262 |
| Southern      Arizona Community Bank |   |                    | 89,568 |   |   |   | 88,146 |
| Sunrise      Bank of Albuquerque     |   |                    | 79,724 |   |   |   | 81,977 |
| Sunrise      Bank of Arizona         |   |                    | 112,318 |   |   |   | 119,395 |
| Yuma      Community Bank(3)          |   |                    |   |   |   |   | 73,028 |
| Arizona      Region Total            |   |                    | 1,003,446 |   |   |   | 1,105,461 |
|                                 |   |                    |   |   |   |   |   |
| California      Region:              |   |                    |   |   |   |   |   |
| Bank      of Escondido               |   |                    | 106,147 |   |   |   | 96,803 |
| Bank      of Feather River           |   |                    | 34,014 |   |   |   | 29,218 |
| Bank      of San Francisco           |   |                    | 81,270 |   |   |   | 74,670 |
| Bank      of Santa Barbara(2)        |   |                    |   |   |   |   | 72,076 |
| Napa      Community Bank             |   |                    | 163,014 |   |   |   | 149,093 |
| Point      Loma Community Bank       |   |                    | 75,167 |   |   |   | 61,514 |
| Sunrise      Bank of San Diego       |   |                    | 84,048 |   |   |   | 86,322 |
| Sunrise      Community Bank          |   |                    | 42,323 |   |   |   | 36,139 |
| California      Region Total         |   |                    | 585,983 |   |   |   | 605,835 |
|                                 |   |                    |   |   |   |   |   |
| Colorado      Region:                |   |                    |   |   |   |   |   |
| Fort      Collins Commerce Bank      |   |                    | 88,504 |   |   |   | 80,247 |
| Larimer      Bank of Commerce        |   |                    | 90,146 |   |   |   | 88,725 |
| Loveland      Bank of Commerce       |   |                    | 38,944 |   |   |   | 32,034 |
| Mountain      View Bank of Commerce  |   |                    | 46,226 |   |   |   | 37,740 |
| Colorado      Region Total           |   |                    | 263,820 |   |   |   | 238,746 |
|                                 |   |                    |   |   |   |   |   |
| Great      Lakes Region:             |   |                    |   |   |   |   |   |
| Bank      of Auburn Hills            |   |                    | 36,124 |   |   |   | 43,856 |
| Bank      of Maumee                  |   |                    | 50,048 |   |   |   | 56,812 |
| Bank      of Michigan                |   |                    | 107,384 |   |   |   | 78,716 |
| Capitol      National Bank           |   |                    | 227,743 |   |   |   | 245,354 |
| Elkhart      Community Bank          |   |                    | 96,550 |   |   |   | 99,917 |
| Evansville      Commerce Bank        |   |                    | 56,601 |   |   |   | 63,228 |
| Goshen      Community Bank           |   |                    | 80,393 |   |   |   | 87,419 |
| Michigan      Commerce Bank(1)       |   |                    | 1,187,487 |   |   |   | 1,275,125 |
| Ohio      Commerce Bank              |   |                    | 63,716 |   |   |   | 60,678 |
| Paragon      Bank & Trust        |   |                    | 102,479 |   |   |   | 107,491 |
| Great      Lakes Region Total        |   |                    | 2,008,525 |   |   |   | 2,118,596 |

----

|                               |   | Total      Assets       |
|------------------------------------|--------|-------------------------|
|                               |   | September      30, 2009 |   |   | December      31, 2008 |
| Midwest      Region:               |   |                    |   |   |   |
| Adams      Dairy Bank              |   | $                       | 42,248 |   |   | $ | 33,867 |
| Bank      of Belleville            |   |                    | 73,017 |   |   |   | 73,901 |
| Community      Bank of Lincoln     |   |                    | 56,535 |   |   |   | 53,222 |
| Summit      Bank of Kansas City(2) |   |                    |   |   |   |   | 53,429 |
| Midwest      Region Total          |   |                    | 171,800 |   |   |   | 214,419 |
|                               |   |                    |   |   |   |   |   |
| Nevada      Region:                |   |                    |   |   |   |   |   |
| 1st      Commerce Bank             |   |                    | 41,184 |   |   |   | 52,622 |
| Bank      of Las Vegas             |   |                    | 74,365 |   |   |   | 73,692 |
| Black      Mountain Community Bank |   |                    | 173,101 |   |   |   | 157,545 |
| Desert      Community Bank         |   |                    | 107,244 |   |   |   | 100,312 |
| Red      Rock Community Bank       |   |                    | 138,547 |   |   |   | 126,993 |
| Nevada      Region Total           |   |                    | 534,441 |   |   |   | 511,164 |
|                               |   |                    |   |   |   |   |   |
| Northeast      Region:             |   |                    |   |   |   |   |   |
| USNY      Bank                     |   |                    | 61,163 |   |   |   | 49,620 |
|                               |   |                    |   |   |   |   |   |
| Northwest      Region:             |   |                    |   |   |   |   |   |
| Bank      of Bellevue              |   |                    | 57,091 |   |   |   | 55,841 |
| Bank      of Everett               |   |                    | 44,232 |   |   |   | 44,756 |
| Bank      of Tacoma                |   |                    | 43,932 |   |   |   | 44,241 |
| High      Desert Bank              |   |                    | 44,803 |   |   |   | 41,904 |
| Issaquah      Community Bank       |   |                    | 35,034 |   |   |   | 36,942 |
| Northwest      Region Total        |   |                    | 225,092 |   |   |   | 223,684 |
|                               |   |                    |   |   |   |   |   |
| Southeast      Region:             |   |                    |   |   |   |   |   |
| Bank      of Valdosta              |   |                    | 52,662 |   |   |   | 58,995 |
| Community      Bank of Rowan(2)    |   |                    |   |   |   |   | 138,341 |
| First      Carolina State Bank     |   |                    | 114,011 |   |   |   | 119,774 |
| Peoples      State Bank            |   |                    | 26,837 |   |   |   | 29,233 |
| Pisgah      Community Bank         |   |                    | 58,705 |   |   |   | 36,897 |
| Sunrise      Bank of Atlanta       |   |                    | 57,521 |   |   |   | 62,198 |
| Southeast      Region Total        |   |                    | 309,736 |   |   |   | 445,438 |
|                               |   |                    |   |   |   |   |   |
| Texas      Region:                 |   |                    |   |   |   |   |   |
| Bank      of Fort Bend             |   |                    | 34,831 |   |   |   | 26,424 |
| Bank      of Las Colinas           |   |                    | 43,810 |   |   |   | 31,354 |
| Texas      Region Total            |   |                    | 78,641 |   |   |   | 57,778 |
|                               |   |                    |   |   |   |   |   |
| Parent      company and other, net |   |                    | 81,515 |   |   |   | 84,095 |
|                               |   |                    |   |   |   |   |   |
| Consolidated      Totals           |   | $                       | 5,324,162 |   |   | $ | 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.  For comparative purposes, the merger of those banks is      presented as if such merger occurred December 31, 2008. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (2) | Bank      of Santa Barbara, Community Bank of Rowan and Summit Bank of Kansas City      are majority-owned subsidiaries of Capitol Development Bancorp Limited      (CDBL) III of which Capitol ceased to have majority voting control      effective September 30, 2009.  Thus, effective September 30,      2009, those banks and CDBL III ceased to be consolidated subsidiaries of      Capitol.                                    |
| (3) | Capitol      sold its ownership in Yuma Community Bank effective September 21,      2009.                                                                                                                                                                                                                                                                                                                                                         |

----

----

|                                                                                  |   | Periods      Ended September 30 |          |
|---------------------------------------------------------------------------------------|--------|---------------------------------|---------------|
|                                                                                  |   | Three      Month Period         |          |   | Nine      Month Period |   |
|                                                                                  |   | 2009                            |          |   | 2008 |   |   | 2009 |   |   | 2008 |   |
|                                                                                  |   |                            |          |   |   |   |   |   |   |   |   |   |
| Allowance      for loan losses at beginning of period                                 |   | $                               | 114,215       |   |   | $ | 63,904 |   |   | $ | 93,040 |   |   | $ | 58,124 |   |
|                                                                                  |   |                            |          |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans      charged-off:                                                               |   |                            |          |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans      secured by real estate:                                                    |   |                            |          |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial                                                                            |   |                            | (5,593        | ) |   |   | (2,186 | ) |   |   | (11,218 | ) |   |   | (5,630 | ) |
| Residential      (including multi-family)                                             |   |                            | (6,845        | ) |   |   | (2,428 | ) |   |   | (18,213 | ) |   |   | (5,590 | ) |
| Construction,      land development and other land                                    |   |                            |  (11,862 | ) |   |   |  (12,128 | ) |   |   |  (25,729 | ) |   |   |  (15,248 | ) |
| Total      loans secured by realestate                                                |   |                            | (24,300       | ) |   |   | (16,742 | ) |   |   | (55,160 | ) |   |   | (26,468 | ) |
| Commercial      and other business-purpose loans                                      |   |                            | (8,582        | ) |   |   | (3,753 | ) |   |   | (21,340 | ) |   |   | (8,051 | ) |
| Consumer                                                                              |   |                            | (485          | ) |   |   | (73 | ) |   |   | (1,029 | ) |   |   | (262 | ) |
| Other                                                                                 |   |                            |  (34     | ) |   |   |   -- |   |   |   |  (35 | ) |   |   |   (34 | ) |
| Total      charge-offs                                                                |   |                            | (33,401       | ) |   |   | (20,568 | ) |   |   | (77,564 | ) |   |   | (34,815 | ) |
| Recoveries:                                                                           |   |                            |          |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans      secured by real estate:                                                    |   |                            |          |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial                                                                            |   |                            | 29            |   |   |   | 181 |   |   |   | 151 |   |   |   | 899 |   |
| Residential      (including multi-family)                                             |   |                            | 51            |   |   |   | 130 |   |   |   | 252 |   |   |   | 590 |   |
| Construction,      land development and other land                                    |   |                            |  385     |   |   |   |   17 |   |   |   |  506 |   |   |   |  240 |   |
| Total      loans secured by realestate                                                |   |                            |  465     |   |   |   |  328 |   |   |   |  909 |   |   |   |  1,729 |   |
| Commercial      and other business-purpose loans                                      |   |                            | 163           |   |   |   | 102 |   |   |   | 1,042 |   |   |   | 686 |   |
| Consumer                                                                              |   |                            | 88            |   |   |   | 9 |   |   |   | 117 |   |   |   | 74 |   |
| Other                                                                                 |   |                            |  1       |   |   |   |  -- |   |   |   |  2 |   |   |   |  -- |   |
| Total      recoveries                                                                 |   |                            |  717     |   |   |   |   439 |   |   |   |  2,070 |   |   |   |  2,489 |   |
| Net      charge-offs                                                                  |   |                            | (32,684       | ) |   |   | (20,129 | ) |   |   | (75,494 | ) |   |   | (32,326 | ) |
| Additions      to allowance charged to expense                                        |   |                            | 48,771        |   |   |   | 53,810 |   |   |   | 112,756 |   |   |   | 71,787 |   |
| Less      allowance for loan losses of subsidiaries nolonger      consolidated        |   |                            |  (4,114  | ) |   |   |   |   |   |   |  (4,114 | ) |   |   |   |   |
|                                                                                  |   |                            |          |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Allowance      for loan losses at September 30                                        |   | $                               | 126,188       |   |   | $ | 97,585 |   |   | $ | 126,188 |   |   | $ | 97,585 |   |
|                                                                                  |   |                            |          |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Average      total portfolio loans for the period                                     |   | $                               | 4,505,447     |   |   | $ | 4,617,153 |   |   | $ | 4,623,317 |   |   | $ | 4,521,165 |   |
|                                                                                  |   |                            |          |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Ratio      of net charge-offs (annualized) to averageportfolio      loans outstanding |   |                            |  2.90    | % |   |   |  1.74 | % |   |   |  2.18 | % |   |   |  0.95 | % |

----

|                                                   |   | September      30, 2009 |         |   | December      31, 2008                |   |
|--------------------------------------------------------|--------|-------------------------|--------------|--------|---------------------------------------|--------|
|                                                   |   |   Amount      |         |   | Percentageof      TotalPortfolioLoans |   |   |   Amount |   |   | Percentageof      TotalPortfolioLoans |   |
|                                                   |
|                                                   |
|                                                   |
|                                                   |   |                    |         |   |                                  |   |   |   |   |   |   |   |
| Loans      secured by real estate:                     |   |                    |         |   |                                  |   |   |   |   |   |   |   |
| Commercial                                             |   | $                       | 39,794       |   |                                  |   | 0.95 | % |   | $ | 30,007 |   |   |   | 0.63 | % |
| Residential      (including multi-family)              |   |                    | 28,445       |   |                                  |   | 0.68 | % |   |   | 21,645 |   |   |   | 0.46 | % |
| Construction,      land development andother      land |   |                    |  23,764 |   |                                  |   | 0.57 | % |   |   |  17,496 |   |   |   | 0.37 | % |
| Total      loans secured by real estate                |   |                    | 92,003       |   |                                  |   | 2.20 | % |   |   | 69,148 |   |   |   | 1.46 | % |
| Commercial      and other business-purpose loans       |   |                    | 32,717       |   |                                  |   | 0.78 | % |   |   | 22,547 |   |   |   | 0.47 | % |
| Consumer                                               |   |                    | 1,255        |   |                                  |   | 0.03 | % |   |   | 1,032 |   |   |   | 0.02 | % |
| Other                                                  |   |                    | 213          |   |                                  |   |   |   |   |   | 313 |   |   |   | 0.01 | % |
|                                                   |   |                    |         |   |                                  |   |   |   |   |   |   |   |   |   |   |   |
| Total      allowance for loan losses                   |   | $                       | 126,188      |   |                                  |   | 3.01 | % |   | $ | 93,040 |   |   |   | 1.96 | % |

----

|                                                          |   | September      30,2009 |          |   | June      30,2009 |   |          | March      31,2009 |   |   | December      31,2008 |   |
|---------------------------------------------------------------|--------|------------------------|---------------|--------|-------------------|--------|---------------|--------------------|--------|--------|-----------------------|--------|
| Nonaccrual      loans:                                        |   |                   |          |   |              |   |          |               |   |   |                  |   |
| Loans      secured by real estate:                            |   |                   |          |   |              |   |          |               |   |   |                  |   |
| Commercial                                                    |   | $                      | 101,704       |   |              | $      | 84,879        |               |   | $      | 68,537                |   |   | $ | 39,892 |   |
| Residential      (including multi-family)                     |   |                   | 54,226        |   |              |   | 57,764        |               |   |   | 62,961                |   |   |   | 35,675 |   |
| Construction,      land development and other land            |   |                   | 86,720        |   |              |   | 87,055        |               |   |   | 77,861                |   |   |   | 72,996 |   |
| Total      loans secured by real estate                       |   |                   | 242,650       |   |              |   | 229,698       |               |   |   | 209,359               |   |   |   | 148,563 |   |
| Commercial      and other business-purpose loans              |   |                   | 25,002        |   |              |   | 24,767        |               |   |   | 17,233                |   |   |   | 16,283 |   |
| Consumer                                                      |   |                   | 513           |   |              |   | 586           |               |   |   | 356                   |   |   |   | 190 |   |
| Total      nonaccrual loans                                   |   |                   | 268,165       |   |              |   | 255,051       |               |   |   | 226,948               |   |   |   | 165,036 |   |
|                                                          |   |                   |          |   |              |   |          |               |   |   |                  |   |   |   |   |   |
| Past      due (>90 days)      loans and accruing interest: |   |                   |          |   |              |   |          |               |   |   |                  |   |   |   |   |   |
| Loans      secured by real estate:                            |   |                   |          |   |              |   |          |               |   |   |                  |   |   |   |   |   |
| Commercial                                                    |   |                   | 4,520         |   |              |   | 2,706         |               |   |   | 2,345                 |   |   |   | 1,623 |   |
| Residential      (including multi-family)                     |   |                   | 1,787         |   |              |   | 1,318         |               |   |   | 2,371                 |   |   |   | 365 |   |
| Construction,      land development and other land            |   |                   | 2,990         |   |              |   | 4,284         |               |   |   | 109                   |   |   |   | 2,293 |   |
| Total      loans secured by real estate                       |   |                   | 9,297         |   |              |   | 8,308         |               |   |   | 4,825                 |   |   |   | 4,281 |   |
| Commercial      and other business-purpose loans              |   |                   | 4,223         |   |              |   | 1,152         |               |   |   | 636                   |   |   |   | 747 |   |
| Consumer                                                      |   |                   | 29            |   |              |   | 42            |               |   |   | 50                    |   |   |   | 146 |   |
| Total      past due loans                                     |   |                   | 13,549        |   |              |   | 9,502         |               |   |   | 5,511                 |   |   |   | 5,174 |   |
|                                                          |   |                   |          |   |              |   |          |               |   |   |                  |   |   |   |   |   |
| Total      nonperforming loans                                |   | $                      | 281,714       |   |              | $      | 264,553       |               |   | $      | 232,459               |   |   | $ | 170,210 |   |
|                                                          |   |                   |          |   |              |   |          |               |   |   |                  |   |   |   |   |   |
| Real      estate owned and otherrepossessed      assets       |   |                   |  120,107 |   |              |   |  103,953 |               |   |   |  87,074          |   |   |   |  67,449 |   |
|                                                          |   |                   |          |   |              |   |          |               |   |   |                  |   |   |   |   |   |
| Total      nonperforming assets                               |   | $                      | 401,821       |   |              | $      | 368,506       |               |   | $      | 319,533               |   |   | $ | 237,659 |   |

|                                                     |   | September      30,2009 |    |   | December      31,2008 |   |
|----------------------------------------------------------|--------|------------------------|---------|--------|-----------------------|--------|
| Impaired      loans:                                     |   |                   |    |   |                  |   |
| Loans      which have an allowance requirement           |   | $                      | 126,053 |   |                  | $      | 82,387 |   |
| Loans      which do not have an allowance requirement    |   |                   | 142,112 |   |                  |   | 82,649 |   |
| Total      impaired loans                                |   | $                      | 268,165 |   |                  | $      | 165,036 |   |
|                                                     |   |                   |    |   |                  |   |   |   |
| Allowance      for loan losses related to impaired loans |   | $                      | 30,781  |   |                  | $      | 16,769 |   |

----

----

----

|                                 |   |                       |      |   | Allowance      for |   |      |                     |   |   | Allowance      as a Percentage |   |
|--------------------------------------|--------|----------------------------|-----------|--------|--------------------|--------|-----------|--------------------------|--------|--------|--------------------------------|--------|
|                                 |   | Total      Portfolio Loans |      |   | Loan      Losses   |   |      | Nonperforming      Loans |   |   | of      Total Portfolio Loans  |   |
|                                 |   | Sept      30,2009          |      |   | Dec      31,2008   |   |      | Sept      30,2009        |   |   | Dec      31,2008               |   |   | Sept      30,2009 |   |   | Dec      31,2008 |   |   | Sept      30,2009 |   |   | Dec      31,2008 |   |
| Arizona      Region:                 |   |                       |      |   |               |   |      |                     |   |   |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Arrowhead      Community Bank        |   | $                          | 53,759    |   |               | $      | 69,487    |                     |   | $      | 4,561                          |   |   | $ | 2,375 |   |   | $ | 5,964 |   |   | $ | 7,430 |   |   |   | 8.48 | % |   |   | 3.42 | % |
| Asian      Bank of Arizona           |   |                       | 31,257    |   |               |   | 33,023    |                     |   |   | 1,000                          |   |   |   | 694 |   |   |   | 461 |   |   |   | 1,898 |   |   |   | 3.20 | % |   |   | 2.10 | % |
| Bank      of Tucson                  |   |                       | 153,793   |   |               |   | 168,390   |                     |   |   | 1,936                          |   |   |   | 1,550 |   |   |   | 4,375 |   |   |   | 2,462 |   |   |   | 1.26 | % |   |   | 0.92 | % |
| Camelback      Community Bank        |   |                       | 79,206    |   |               |   | 84,957    |                     |   |   | 1,320                          |   |   |   | 789 |   |   |   | 3,835 |   |   |   | 2,030 |   |   |   | 1.67 | % |   |   | 0.93 | % |
| Central      Arizona Bank            |   |                       | 68,203    |   |               |   | 69,372    |                     |   |   | 2,917                          |   |   |   | 1,339 |   |   |   | 2,388 |   |   |   | 1,895 |   |   |   | 4.28 | % |   |   | 1.93 | % |
| Colonia      Bank                    |   |                       | 10,429    |   |               |   | 7,483     |                     |   |   | 216                            |   |   |   | 120 |   |   |   |   |   |   |   |   |   |   |   | 2.07 | % |   |   | 1.60 | % |
| Mesa      Bank                       |   |                       | 107,965   |   |               |   | 147,853   |                     |   |   | 2,459                          |   |   |   | 3,250 |   |   |   | 14,492 |   |   |   | 21,423 |   |   |   | 2.28 | % |   |   | 2.20 | % |
| Southern      Arizona Community Bank |   |                       | 79,338    |   |               |   | 79,434    |                     |   |   | 1,110                          |   |   |   | 875 |   |   |   | 164 |   |   |   |   |   |   |   | 1.40 | % |   |   | 1.10 | % |
| Sunrise      Bank of Albuquerque     |   |                       | 65,561    |   |               |   | 74,115    |                     |   |   | 1,269                          |   |   |   | 933 |   |   |   | 6,296 |   |   |   | 43 |   |   |   | 1.94 | % |   |   | 1.26 | % |
| Sunrise      Bank of Arizona         |   |                       | 88,607    |   |               |   | 110,131   |                     |   |   | 1,676                          |   |   |   | 1,159 |   |   |   | 11,976 |   |   |   | 3,707 |   |   |   | 1.89 | % |   |   | 1.05 | % |
| Yuma      Community Bank(3)          |   |                       |      |   |               |   | 63,804    |                     |   |   |                           |   |   |   | 730 |   |   |   |   |   |   |   | 1,506 |   |   |   |   |   |   |   | 1.14 | % |
| Arizona      Region Total            |   |                       | 738,118   |   |               |   | 908,049   |                     |   |   | 18,464                         |   |   |   | 13,814 |   |   |   | 49,951 |   |   |   | 42,394 |   |   |   | 2.50 | % |   |   | 1.52 | % |
|                                 |   |                       |      |   |               |   |      |                     |   |   |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| California      Region:              |   |                       |      |   |               |   |      |                     |   |   |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Bank      of Escondido               |   |                       | 69,420    |   |               |   | 62,608    |                     |   |   | 1,784                          |   |   |   | 810 |   |   |   | 2,838 |   |   |   | 817 |   |   |   | 2.57 | % |   |   | 1.29 | % |
| Bank      of Feather River           |   |                       | 27,178    |   |               |   | 22,962    |                     |   |   | 347                            |   |   |   | 320 |   |   |   |   |   |   |   |   |   |   |   | 1.28 | % |   |   | 1.39 | % |
| Bank      of San Francisco           |   |                       | 72,473    |   |               |   | 60,772    |                     |   |   | 1,352                          |   |   |   | 823 |   |   |   | 597 |   |   |   | 299 |   |   |   | 1.87 | % |   |   | 1.35 | % |
| Bank      of Santa Barbara(2)        |   |                       |      |   |               |   | 60,535    |                     |   |   |                           |   |   |   | 1,138 |   |   |   |   |   |   |   | 1,841 |   |   |   |   |   |   |   | 1.88 | % |
| Napa      Community Bank             |   |                       | 141,984   |   |               |   | 130,150   |                     |   |   | 2,550                          |   |   |   | 1,890 |   |   |   | 2,849 |   |   |   | 1,848 |   |   |   | 1.80 | % |   |   | 1.45 | % |
| Point      Loma Community Bank       |   |                       | 51,498    |   |               |   | 52,497    |                     |   |   | 1,100                          |   |   |   | 797 |   |   |   | 2,172 |   |   |   | 795 |   |   |   | 2.14 | % |   |   | 1.52 | % |
| Sunrise      Bank of San Diego       |   |                       | 66,748    |   |               |   | 76,282    |                     |   |   | 2,620                          |   |   |   | 1,048 |   |   |   | 3,609 |   |   |   | 1,444 |   |   |   | 3.93 | % |   |   | 1.37 | % |
| Sunrise      Community Bank          |   |                       | 33,210    |   |               |   | 28,355    |                     |   |   | 995                            |   |   |   | 440 |   |   |   | 1,107 |   |   |   |   |   |   |   | 3.00 | % |   |   | 1.55 | % |
| California      Region Total         |   |                       | 462,511   |   |               |   | 494,161   |                     |   |   | 10,748                         |   |   |   | 7,266 |   |   |   | 13,172 |   |   |   | 7,044 |   |   |   | 2.32 | % |   |   | 1.47 | % |
|                                 |   |                       |      |   |               |   |      |                     |   |   |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Colorado      Region:                |   |                       |      |   |               |   |      |                     |   |   |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Fort      Collins Commerce Bank      |   |                       | 80,945    |   |               |   | 74,280    |                     |   |   | 1,630                          |   |   |   | 1,101 |   |   |   | 1,829 |   |   |   | 48 |   |   |   | 2.01 | % |   |   | 1.48 | % |
| Larimer      Bank of Commerce        |   |                       | 79,377    |   |               |   | 78,638    |                     |   |   | 1,620                          |   |   |   | 1,160 |   |   |   |   |   |   |   |   |   |   |   | 2.04 | % |   |   | 1.48 | % |
| Loveland      Bank of Commerce       |   |                       | 33,174    |   |               |   | 27,251    |                     |   |   | 590                            |   |   |   | 652 |   |   |   | 1,386 |   |   |   | 1,090 |   |   |   | 1.78 | % |   |   | 2.39 | % |
| Mountain      View Bank of Commerce  |   |                       | 39,037    |   |               |   | 32,180    |                     |   |   | 601                            |   |   |   | 474 |   |   |   |   |   |   |   |   |   |   |   | 1.54 | % |   |   | 1.47 | % |
| Colorado      Region Total           |   |                       | 232,533   |   |               |   | 212,349   |                     |   |   | 4,441                          |   |   |   | 3,387 |   |   |   | 3,215 |   |   |   | 1,138 |   |   |   | 1.91 | % |   |   | 1.60 | % |
|                                 |   |                       |      |   |               |   |      |                     |   |   |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Great      Lakes Region:             |   |                       |      |   |               |   |      |                     |   |   |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Bank      of Auburn Hills            |   |                       | 31,346    |   |               |   | 39,914    |                     |   |   | 1,625                          |   |   |   | 988 |   |   |   | 1,536 |   |   |   | 2,895 |   |   |   | 5.18 | % |   |   | 2.48 | % |
| Bank      of Maumee                  |   |                       | 40,521    |   |               |   | 50,094    |                     |   |   | 1,100                          |   |   |   | 752 |   |   |   | 542 |   |   |   | 37 |   |   |   | 2.71 | % |   |   | 1.50 | % |
| Bank      of Michigan                |   |                       | 66,123    |   |               |   | 67,700    |                     |   |   | 1,191                          |   |   |   | 996 |   |   |   | 1,498 |   |   |   | 306 |   |   |   | 1.80 | % |   |   | 1.47 | % |
| Capitol      National Bank           |   |                       | 182,751   |   |               |   | 213,392   |                     |   |   | 7,456                          |   |   |   | 8,341 |   |   |   | 19,021 |   |   |   | 12,828 |   |   |   | 4.08 | % |   |   | 3.91 | % |
| Elkhart      Community Bank          |   |                       | 77,470    |   |               |   | 87,971    |                     |   |   | 2,748                          |   |   |   | 1,702 |   |   |   | 7,188 |   |   |   | 3,941 |   |   |   | 3.55 | % |   |   | 1.93 | % |
| Evansville      Commerce Bank        |   |                       | 46,971    |   |               |   | 55,779    |                     |   |   | 1,160                          |   |   |   | 943 |   |   |   | 1,055 |   |   |   | 158 |   |   |   | 2.47 | % |   |   | 1.69 | % |
| Goshen      Community Bank           |   |                       | 63,799    |   |               |   | 74,144    |                     |   |   | 1,706                          |   |   |   | 1,501 |   |   |   | 1,839 |   |   |   | 876 |   |   |   | 2.67 | % |   |   | 2.02 | % |
| Michigan      Commerce Bank(1)       |   |                       | 1,001,207 |   |               |   | 1,127,348 |                     |   |   | 44,061                         |   |   |   | 30,258 |   |   |   | 107,467 |   |   |   | 63,092 |   |   |   | 4.40 | % |   |   | 2.68 | % |
| Ohio      Commerce Bank              |   |                       | 52,956    |   |               |   | 48,207    |                     |   |   | 814                            |   |   |   | 723 |   |   |   |   |   |   |   |   |   |   |   | 1.54 | % |   |   | 1.50 | % |
| Paragon      Bank & Trust        |   |                       | 70,214    |   |               |   | 87,651    |                     |   |   | 3,655                          |   |   |   | 2,990 |   |   |   | 6,820 |   |   |   | 6,447 |   |   |   | 5.21 | % |   |   | 3.41 | % |
| Great      Lakes Region Total        |   |                       | 1,633,358 |   |               |   | 1,852,200 |                     |   |   | 65,516                         |   |   |   | 49,194 |   |   |   | 146,966 |   |   |   | 90,580 |   |   |   | 4.01 | % |   |   | 2.66 | % |
|                                 |   |                       |      |   |               |   |      |                     |   |   |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Midwest      Region:                 |   |                       |      |   |               |   |      |                     |   |   |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Adams      Dairy Bank                |   |                       | 35,330    |   |               |   | 28,834    |                     |   |   | 645                            |   |   |   | 450 |   |   |   | 207 |   |   |   |   |   |   |   | 1.83 | % |   |   | 1.56 | % |
| Bank      of Belleville              |   |                       | 63,371    |   |               |   | 65,150    |                     |   |   | 938                            |   |   |   | 923 |   |   |   |   |   |   |   |   |   |   |   | 1.48 | % |   |   | 1.42 | % |
| Community      Bank of Lincoln       |   |                       | 45,232    |   |               |   | 43,657    |                     |   |   | 960                            |   |   |   | 674 |   |   |   | 263 |   |   |   |   |   |   |   | 2.12 | % |   |   | 1.54 | % |
| Summit      Bank of Kansas City(2)   |   |                       |      |   |               |   | 44,068    |                     |   |   |                           |   |   |   | 709 |   |   |   |   |   |   |   | 779 |   |   |   |   |   |   |   | 1.61 | % |
| Midwest      Region Total            |   |                       | 143,933   |   |               |   | 181,709   |                     |   |   | 2,543                          |   |   |   | 2,756 |   |   |   | 470 |   |   |   | 779 |   |   |   | 1.77 | % |   |   | 1.52 | % |

----

|                               |   |                       |      |   | Allowance      for |   |      |                     |   |   | Allowance      as a Percentage |   |
|------------------------------------|--------|----------------------------|-----------|--------|--------------------|--------|-----------|--------------------------|--------|--------|--------------------------------|--------|
|                               |   | Total      Portfolio Loans |      |   | Loan      Losses   |   |      | Nonperforming      Loans |   |   | of      Total Portfolio Loans  |   |
|                               |   | Sept      30,2009          |      |   | Dec      31,2008   |   |      | Sept      30,2009        |   |   | Dec      31,2008               |   |   | Sept      30,2009 |   |   | Dec      31,2008 |   |   | Sept      30,2009 |   |   | Dec      31,2008 |   |
| Nevada      Region:                |   |                       |      |   |               |   |      |                     |   |   |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 1st      Commerce Bank             |   | $                          | 34,264    |   |               | $      | 30,663    |                     |   | $      | 1,207                          |   |   | $ | 740 |   |   | $ | 6,332 |   |   | $ | 1,000 |   |   |   | 3.52 | % |   |   | 2.41 | % |
| Bank      of Las Vegas             |   |                       | 63,021    |   |               |   | 64,648    |                     |   |   | 2,092                          |   |   |   | 901 |   |   |   | 7,982 |   |   |   | 4,399 |   |   |   | 3.32 | % |   |   | 1.39 | % |
| Black      Mountain Community Bank |   |                       | 143,494   |   |               |   | 143,654   |                     |   |   | 2,452                          |   |   |   | 1,765 |   |   |   | 9,760 |   |   |   | 1,722 |   |   |   | 1.71 | % |   |   | 1.23 | % |
| Desert      Community Bank         |   |                       | 84,814    |   |               |   | 87,388    |                     |   |   | 2,625                          |   |   |   | 943 |   |   |   | 5,539 |   |   |   | 3,671 |   |   |   | 3.10 | % |   |   | 1.08 | % |
| Red      Rock Community Bank       |   |                       | 95,377    |   |               |   | 110,143   |                     |   |   | 2,985                          |   |   |   | 1,200 |   |   |   | 14,101 |   |   |   | 5,488 |   |   |   | 3.13 | % |   |   | 1.09 | % |
| Nevada      Region Total           |   |                       | 420,970   |   |               |   | 436,496   |                     |   |   | 11,361                         |   |   |   | 5,549 |   |   |   | 43,714 |   |   |   | 16,280 |   |   |   | 2.70 | % |   |   | 1.27 | % |
|                               |   |                       |      |   |               |   |      |                     |   |   |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Northeast      Region:             |   |                       |      |   |               |   |      |                     |   |   |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| USNY      Bank                     |   |                       | 54,889    |   |               |   | 43,471    |                     |   |   | 833                            |   |   |   | 680 |   |   |   |   |   |   |   |   |   |   |   | 1.52 | % |   |   | 1.56 | % |
|                               |   |                       |      |   |               |   |      |                     |   |   |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Northwest      Region:             |   |                       |      |   |               |   |      |                     |   |   |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Bank      of Bellevue              |   |                       | 40,846    |   |               |   | 48,838    |                     |   |   | 1,030                          |   |   |   | 850 |   |   |   | 2,674 |   |   |   | 170 |   |   |   | 2.52 | % |   |   | 1.74 | % |
| Bank      of Everett               |   |                       | 36,665    |   |               |   | 32,735    |                     |   |   | 1,190                          |   |   |   | 686 |   |   |   | 3,344 |   |   |   | 92 |   |   |   | 3.25 | % |   |   | 2.10 | % |
| Bank      of Tacoma                |   |                       | 34,784    |   |               |   | 40,175    |                     |   |   | 1,115                          |   |   |   | 770 |   |   |   | 1,627 |   |   |   | 1,183 |   |   |   | 3.21 | % |   |   | 1.92 | % |
| High      Desert Bank              |   |                       | 36,419    |   |               |   | 35,407    |                     |   |   | 900                            |   |   |   | 624 |   |   |   | 841 |   |   |   |   |   |   |   | 2.47 | % |   |   | 1.76 | % |
| Issaquah      Community Bank       |   |                       | 28,641    |   |               |   | 24,238    |                     |   |   | 700                            |   |   |   | 385 |   |   |   | 734 |   |   |   |   |   |   |   | 2.44 | % |   |   | 1.59 | % |
| Northwest      Region Total        |   |                       | 177,355   |   |               |   | 181,393   |                     |   |   | 4,935                          |   |   |   | 3,315 |   |   |   | 9,220 |   |   |   | 1,445 |   |   |   | 2.78 | % |   |   | 1.83 | % |
|                               |   |                       |      |   |               |   |      |                     |   |   |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Southeast      Region:             |   |                       |      |   |               |   |      |                     |   |   |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Bank      of Valdosta              |   |                       | 44,331    |   |               |   | 51,629    |                     |   |   | 843                            |   |   |   | 835 |   |   |   | 972 |   |   |   |   |   |   |   | 1.90 | % |   |   | 1.62 | % |
| Community      Bank of Rowan(2)    |   |                       |      |   |               |   | 109,290   |                     |   |   |                           |   |   |   | 1,634 |   |   |   |   |   |   |   | 1,688 |   |   |   |   |   |   |   | 1.50 | % |
| First      Carolina State Bank     |   |                       | 93,979    |   |               |   | 97,670    |                     |   |   | 1,710                          |   |   |   | 1,312 |   |   |   | 2,877 |   |   |   | 2,421 |   |   |   | 1.82 | % |   |   | 1.34 | % |
| Peoples      State Bank            |   |                       | 19,438    |   |               |   | 21,314    |                     |   |   | 399                            |   |   |   | 366 |   |   |   | 1,158 |   |   |   | 937 |   |   |   | 2.05 | % |   |   | 1.72 | % |
| Pisgah      Community Bank         |   |                       | 45,729    |   |               |   | 27,746    |                     |   |   | 918                            |   |   |   | 475 |   |   |   | 419 |   |   |   | 100 |   |   |   | 2.01 | % |   |   | 1.71 | % |
| Sunrise      Bank of Atlanta       |   |                       | 45,657    |   |               |   | 52,763    |                     |   |   | 1,465                          |   |   |   | 1,063 |   |   |   | 3,150 |   |   |   | 269 |   |   |   | 3.21 | % |   |   | 2.01 | % |
| Southeast      Region Total        |   |                       | 249,134   |   |               |   | 360,412   |                     |   |   | 5,335                          |   |   |   | 5,685 |   |   |   | 8,576 |   |   |   | 5,415 |   |   |   | 2.14 | % |   |   | 1.58 | % |
|                               |   |                       |      |   |               |   |      |                     |   |   |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Texas      Region:                 |   |                       |      |   |               |   |      |                     |   |   |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Bank      of Fort Bend             |   |                       | 29,403    |   |               |   | 19,859    |                     |   |   | 465                            |   |   |   | 305 |   |   |   |   |   |   |   |   |   |   |   | 1.58 | % |   |   | 1.54 | % |
| Bank      of Las Colinas           |   |                       | 34,772    |   |               |   | 29,657    |                     |   |   | 705                            |   |   |   | 435 |   |   |   |   |   |   |   |   |   |   |   | 2.03 | % |   |   | 1.47 | % |
| Texas      Region Total            |   |                       | 64,175    |   |               |   | 49,516    |                     |   |   | 1,170                          |   |   |   | 740 |   |   |   |   |   |   |   |   |   |   |   | 1.82 | % |   |   | 1.49 | % |
|                               |   |                       |      |   |               |   |      |                     |   |   |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Parent      company and other, net |   |                       | 12,558    |   |               |   | 15,473    |                     |   |   | 842                            |   |   |   | 654 |   |   |   | 6,430 |   |   |   | 5,135 |   |   |   | 6.71 | % |   |   | 4.23 | % |
|                               |   |                       |      |   |               |   |      |                     |   |   |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Consolidated      totals           |   | $                          | 4,189,534 |   |               | $      | 4,735,229 |                     |   | $      | 126,188                        |   |   | $ | 93,040 |   |   | $ | 281,714 |   |   | $ | 170,210 |   |   |   | 3.01 | % |   |   | 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.  For comparative purposes, the merger of those banks is      presented as if such merger occurred December 31, 2008. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (2) | Bank      of Santa Barbara, Community Bank of Rowan and Summit Bank of Kansas City      are majority-owned subsidiaries of Capitol Development Bancorp Limited      (CDBL) III of which Capitol ceased to have majority voting control      effective September 30, 2009.  Thus, effective September 30,      2009, those banks and CDBL III ceased to be consolidated subsidiaries of      Capitol.                                    |
| (3) | Capitol      sold its ownership in Yuma Community Bank effective September 21,      2009.                                                                                                                                                                                                                                                                                                                                                         |

----

----

| Entity                               |   | RecordedGoodwill      as ofAugust      31,2009 |   |   | Estimated      EntityFair      Valueas      Percentage ofBook      Value |   | Did      Entity PassStep      One ofImpairmentTest? |
|--------------------------------------|--------|------------------------------------------------|--------|--------|--------------------------------------------------------------------------|--------|-----------------------------------------------------|
|                                 |   | (in      $1,000s)                              |   |   |                                                                     |   |                                                |
|                                 |   |                                           |   |   |                                                                     |   |                                                |
| Paragon      Bank & Trust        |   | $                                              | 1,321  |   |                                                                     |   | 105.13                                              | % | Yes |
| Michigan      Commerce Bank          |   |                                           | 2,875  |   |                                                                     |   | 93.35                                               | % | No |
| Elkhart      Community Bank          |   |                                           | 1,228  |   |                                                                     |   | 135.72                                              | % | Yes |
| Goshen      Community Bank           |   |                                           | 1,407  |   |                                                                     |   | 115.92                                              | % | Yes |
| Central      Arizona Bank            |   |                                           | 947    |   |                                                                     |   | 86.95                                               | % | No |
| Camelback      Community Bank        |   |                                           | 894    |   |                                                                     |   | 130.91                                              | % | Yes |
| Southern      Arizona Community Bank |   |                                           | 916    |   |                                                                     |   | 154.09                                              | % | Yes |
| Mesa      Bank                       |   |                                           | 1,552  |   |                                                                     |   | 120.34                                              | % | Yes |
| Arrowhead      Community Bank        |   |                                           | 644    |   |                                                                     |   | 83.94                                               | % | No |
| Sunrise      Bank of Albuquerque     |   |                                           | 671    |   |                                                                     |   | 97.26                                               | % | No |
| Sunrise      Bank of San Diego       |   |                                           | 1,965  |   |                                                                     |   | 96.11                                               | % | No |
| Desert      Community Bank           |   |                                           | 1,213  |   |                                                                     |   | 156.93                                              | % | Yes |
| Red      Rock Community Bank         |   |                                           | 2,582  |   |                                                                     |   | 148.15                                              | % | Yes |
| Black      Mountain Community Bank   |   |                                           | 1,263  |   |                                                                     |   | 212.44                                              | % | Yes |
| First      Carolina State Bank       |   |                                           | 3,926  |   |                                                                     |   | 62.26                                               | % | No |
| Peoples      State Bank              |   |                                           | 2,125  |   |                                                                     |   | 28.83                                               | % | No |
| Bank      of Las Vegas               |   |                                           | 1,800  |   |                                                                     |   | 85.85                                               | % | No |
| Bank      of Escondido               |   |                                           | 2,806  |   |                                                                     |   | 86.21                                               | % | No |
|                                 |   |                                           |   |   |                                                                     |   |                                                |   |   |
| Capitol      Bancorp Limited         |   | $                                              | 70,596 |   |                                                                     |   | 133.83                                              | % | Yes |

----

----

|                                                                  |   | Three      Month Period |   |   | Nine      Month Period |   |
|-----------------------------------------------------------------------|--------|-------------------------|--------|--------|------------------------|--------|
|                                                                  |   | 2009                    |   |   | 2008                   |   |   | 2009 |   |   | 2008 |   |
|                                                                  |   |                    |   |   |                   |   |   |   |   |   |   |   |
| Bank      services (ATMs, telephonebanking      and Internet banking) |   | $                       | 649    |   |                   | $      | 687 |   |   | $ | 2,102 |   |   | $ | 1,868 |   |
| Loan      and collection expense                                      |   |                    | 834    |   |                   |   | 410 |   |   |   | 2,097 |   |   |   | 1,443 |   |
| Legal      fees                                                       |   |                    | 1,012  |   |                   |   | 373 |   |   |   | 2,052 |   |   |   | 946 |   |
| Directors'      fees                                                  |   |                    | 507    |   |                   |   | 616 |   |   |   | 1,768 |   |   |   | 2,174 |   |
| Advertising                                                           |   |                    | 513    |   |                   |   | 838 |   |   |   | 1,533 |   |   |   | 2,471 |   |
| Paper,      printing and supplies                                     |   |                    | 517    |   |                   |   | 648 |   |   |   | 1,526 |   |   |   | 2,200 |   |
| Professional      fees                                                |   |                    | 767    |   |                   |   | 485 |   |   |   | 1,442 |   |   |   | 1,184 |   |
| Travel,      lodging and meals                                        |   |                    | 463    |   |                   |   | 707 |   |   |   | 1,349 |   |   |   | 2,193 |   |
| Communications                                                        |   |                    | 394    |   |                   |   | 585 |   |   |   | 1,308 |   |   |   | 1,634 |   |
| Postage                                                               |   |                    | 318    |   |                   |   | 335 |   |   |   | 949 |   |   |   | 993 |   |
| Taxes      other than income taxes                                    |   |                    | 197    |   |                   |   | 147 |   |   |   | 690 |   |   |   | 658 |   |
| Dues      and memberships                                             |   |                    | 207    |   |                   |   | 245 |   |   |   | 634 |   |   |   | 704 |   |
| Insurance      expense                                                |   |                    | 204    |   |                   |   | 158 |   |   |   | 549 |   |   |   | 451 |   |
| Courier      service                                                  |   |                    | 185    |   |                   |   | 220 |   |   |   | 542 |   |   |   | 692 |   |
| Contracted      labor                                                 |   |                    | 114    |   |                   |   | 101 |   |   |   | 189 |   |   |   | 345 |   |
| Preopening      and start-up costs                                    |   |                    |   |   |                   |   |   |   |   |   |   |   |   |   | 2,038 |   |
| Goodwill      impairment                                              |   |                    | 1,500  |   |                   |   |   |   |   |   | 1,500 |   |   |   |   |   |
| Restructuring      charge (1)                                         |   |                    |   |   |                   |   | 2,500 |   |   |   |   |   |   |   | 2,500 |   |
| Other                                                                 |   |                    | 2,074  |   |                   |   | 3,560 |   |   |   | 6,446 |   |   |   | 8,696 |   |
| Total                                                                 |   | $                       | 10,455 |   |                   | $      | 12,615 |   |   | $ | 26,676 |   |   | $ | 33,190 |   |

|  | (1) | A      restructuring charge was accrued during the 2008 period related to plans      to reduce staffing in conjunction with consolidation of certain back      office functions and mergers of bankcharters. |
|--|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                 |   | Nine      Months Ended September 30 |   |
|--------------------------------------|--------|-------------------------------------|--------|
|                                 |   | 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        |   | $                                   | 3,443  |   |   | $ | 4,784 |   |   | $ | (8,415 | ) |   | $ | (720 | ) |   |   |   |   |   |   |   |   |   |   |   |   |
| Asian      Bank of Arizona           |   |                                | 1,662  |   |   |   | 1,467 |   |   |   | (3,618 | ) |   |   | (685 | ) |   |   |   |   |   |   |   |   |   |   |   |   |
| Bank      of Tucson                  |   |                                | 9,513  |   |   |   | 10,006 |   |   |   | 1,467 |   |   |   | 2,897 |   |   |   | 11.04 | % |   |   | 21.43 | % |   |   | 0.97 | % |   |   | 2.13 | % |
| Camelback      Community Bank        |   |                                | 4,003  |   |   |   | 4,536 |   |   |   | (768 | ) |   |   | 764 |   |   |   |   |   |   |   | 11.00 | % |   |   |   |   |   |   | 1.12 | % |
| Central      Arizona Bank            |   |                                | 3,050  |   |   |   | 3,628 |   |   |   | (4,977 | ) |   |   | (587 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Colonia      Bank                    |   |                                | 435    |   |   |   | 80 |   |   |   | (1,618 | ) |   |   | (551 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Mesa      Bank                       |   |                                | 6,261  |   |   |   | 11,058 |   |   |   | (9,131 | ) |   |   | (8,211 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Southern      Arizona Community Bank |   |                                | 3,903  |   |   |   | 4,482 |   |   |   | 237 |   |   |   | 411 |   |   |   | 3.51 | % |   |   | 6.05 | % |   |   | 0.35 | % |   |   | 0.62 | % |
| Sunrise      Bank of Albuquerque     |   |                                | 3,155  |   |   |   | 3,955 |   |   |   | (1,173 | ) |   |   | 199 |   |   |   |   |   |   |   | 3.62 | % |   |   |   |   |   |   | 0.35 | % |
| Sunrise      Bank of Arizona         |   |                                | 5,088  |   |   |   | 6,201 |   |   |   | (5,479 | ) |   |   | (322 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Yuma      Community Bank(5)          |   |                                | 3,225  |   |   |   | 4,043 |   |   |   | 372 |   |   |   | 468 |   |   |   | 7.69 | % |   |   | 7.96 | % |   |   | 0.78 | % |   |   | 0.82 | % |
| Arizona      Region Total            |   |                                | 43,738 |   |   |   | 54,240 |   |   |   | (33,103 | ) |   |   | (6,337 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                 |   |                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| California      Region:              |   |                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Bank      of Escondido               |   |                                | 3,559  |   |   |   | 3,789 |   |   |   | (1,443 | ) |   |   | 241 |   |   |   |   |   |   |   | 2.22 | % |   |   |   |   |   |   | 0.34 | % |
| Bank      of Feather River           |   |                                | 1,560  |   |   |   | 955 |   |   |   | (716 | ) |   |   | (463 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Bank      of San Francisco           |   |                                | 3,415  |   |   |   | 2,807 |   |   |   | (973 | ) |   |   | 39 |   |   |   |   |   |   |   | 0.61 | % |   |   |   |   |   |   | 0.08 | % |
| Bank      of Santa Barbara(4)        |   |                                | 2,571  |   |   |   | 3,083 |   |   |   | (1,300 | ) |   |   | (198 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Napa      Community Bank             |   |                                | 6,801  |   |   |   | 6,551 |   |   |   | 1,224 |   |   |   | 914 |   |   |   | 10.26 | % |   |   | 8.47 | % |   |   | 1.11 | % |   |   | 0.94 | % |
| Point      Loma Community Bank       |   |                                | 2,521  |   |   |   | 2,828 |   |   |   | (1,396 | ) |   |   | 244 |   |   |   |   |   |   |   | 4.46 | % |   |   |   |   |   |   | 0.57 | % |
| Sunrise      Bank of San Diego       |   |                                | 3,565  |   |   |   | 4,174 |   |   |   | (1,586 | ) |   |   | 166 |   |   |   |   |   |   |   | 2.07 | % |   |   |   |   |   |   | 0.25 | % |
| Sunrise      Community Bank          |   |                                | 1,542  |   |   |   | 1,182 |   |   |   | (2,530 | ) |   |   | (522 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| California      Region Total         |   |                                | 25,534 |   |   |   | 25,369 |   |   |   | (8,720 | ) |   |   | 421 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                 |   |                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Colorado      Region:                |   |                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Fort      Collins Commerce Bank      |   |                                | 3,860  |   |   |   | 3,424 |   |   |   | 262 |   |   |   | 536 |   |   |   | 3.63 | % |   |   | 7.81 | % |   |   | 0.42 | % |   |   | 1.06 | % |
| Larimer      Bank of Commerce        |   |                                | 4,030  |   |   |   | 3,279 |   |   |   | 326 |   |   |   | 299 |   |   |   | 5.40 | % |   |   | 5.27 | % |   |   | 0.49 | % |   |   | 0.60 | % |
| Loveland      Bank of Commerce       |   |                                | 1,531  |   |   |   | 1,035 |   |   |   | (900 | ) |   |   | (371 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Mountain      View Bank of Commerce  |   |                                | 1,711  |   |   |   | 746 |   |   |   | (608 | ) |   |   | (711 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Colorado      Region Total           |   |                                | 11,132 |   |   |   | 8,484 |   |   |   | (920 | ) |   |   | (247 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                 |   |                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Great      Lakes Region:             |   |                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Bank      of Auburn Hills            |   |                                | 1,683  |   |   |   | 2,123 |   |   |   | (3,344 | ) |   |   | (599 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Bank      of Maumee                  |   |                                | 1,973  |   |   |   | 2,119 |   |   |   | (2,336 | ) |   |   | (604 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Bank      of Michigan                |   |                                | 3,556  |   |   |   | 3,707 |   |   |   | (505 | ) |   |   | 426 |   |   |   |   |   |   |   | 8.41 | % |   |   |   |   |   |   | 0.81 | % |
| Capitol      National Bank           |   |                                | 9,281  |   |   |   | 11,214 |   |   |   | (4,005 | ) |   |   | 233 |   |   |   |   |   |   |   | 1.61 | % |   |   |   |   |   |   | 0.14 | % |
| Elkhart      Community Bank          |   |                                | 3,550  |   |   |   | 4,354 |   |   |   | (2,998 | ) |   |   | 210 |   |   |   |   |   |   |   | 3.18 | % |   |   |   |   |   |   | 0.30 | % |
| Evansville      Commerce Bank        |   |                                | 2,640  |   |   |   | 3,020 |   |   |   | (1,509 | ) |   |   | (201 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Goshen      Community Bank           |   |                                | 3,304  |   |   |   | 3,946 |   |   |   | (676 | ) |   |   | 252 |   |   |   |   |   |   |   | 4.23 | % |   |   |   |   |   |   | 0.42 | % |
| Michigan      Commerce Bank(3)       |   |                                | 49,397 |   |   |   | 62,027 |   |   |   | (50,985 | ) |   |   | (6,428 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Ohio      Commerce Bank              |   |                                | 2,292  |   |   |   | 1,991 |   |   |   | (560 | ) |   |   | (117 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Paragon      Bank & Trust        |   |                                | 4,181  |   |   |   | 5,370 |   |   |   | (5,520 | ) |   |   | (725 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Great      Lakes Region Total        |   |                                | 81,857 |   |   |   | 99,871 |   |   |   | (72,438 | ) |   |   | (7,553 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                 |   |                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Midwest      Region                  |   |                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Adams      Dairy Bank                |   |                                | 1,704  |   |   |   | 1,121 |   |   |   | (587 | ) |   |   | (569 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Bank      of Belleville              |   |                                | 2,839  |   |   |   | 2,706 |   |   |   | (808 | ) |   |   | 23 |   |   |   |   |   |   |   | 0.45 | % |   |   |   |   |   |   | 0.05 | % |
| Community      Bank of Lincoln       |   |                                | 2,694  |   |   |   | 1,402 |   |   |   | (1,243 | ) |   |   | (511 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Summit      Bank of Kansas City(4)   |   |                                | 2,780  |   |   |   | 2,333 |   |   |   | (978 | ) |   |   | (10 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Midwest      Region Total            |   |                                | 10,017 |   |   |   | 7,562 |   |   |   | (3,616 | ) |   |   | (1,067 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                 |   |                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Nevada      Region:                  |   |                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 1st      Commerce Bank               |   |                                | 1,814  |   |   |   | 1,776 |   |   |   | (2,046 | ) |   |   | (660 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Bank      of Las Vegas               |   |                                | 3,557  |   |   |   | 3,710 |   |   |   | (1,328 | ) |   |   | 112 |   |   |   |   |   |   |   | 1.71 | % |   |   |   |   |   |   | 0.21 | % |
| Black      Mountain Community Bank   |   |                                | 7,404  |   |   |   | 8,093 |   |   |   | (859 | ) |   |   | 1,390 |   |   |   |   |   |   |   | 12.49 | % |   |   |   |   |   |   | 1.22 | % |
| Desert      Community Bank           |   |                                | 4,449  |   |   |   | 5,622 |   |   |   | (1,510 | ) |   |   | 485 |   |   |   |   |   |   |   | 6.37 | % |   |   |   |   |   |   | 0.63 | % |
| Red      Rock Community Bank         |   |                                | 4,600  |   |   |   | 5,891 |   |   |   | (3,224 | ) |   |   | 672 |   |   |   |   |   |   |   | 6.56 | % |   |   |   |   |   |   | 0.75 | % |
| Nevada      Region Total             |   |                                | 21,824 |   |   |   | 25,092 |   |   |   | (8,967 | ) |   |   | 1,999 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

|                               |   | Nine      Months Ended September 30 |    |
|------------------------------------|--------|-------------------------------------|---------|
|                               |   | 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                     |   | $                                   | 2,316   |   |   | $ | 1,249 |   |   | $ | (1,340 | ) |   | $ | (583 | ) |   |   |   |   |   |   |   |   |   |   |   |   |
|                               |   |                                |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Northwest      Region:             |   |                                |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Bank      of Bellevue              |   |                                | 1,981   |   |   |   | 2,181 |   |   |   | (1,537 | ) |   |   | (179 | ) |   |   |   |   |   |   |   |   |   |   |   |   |
| Bank      of Everett               |   |                                | 1,789   |   |   |   | 1,541 |   |   |   | (2,048 | ) |   |   | (779 | ) |   |   |   |   |   |   |   |   |   |   |   |   |
| Bank      of Tacoma                |   |                                | 1,805   |   |   |   | 1,485 |   |   |   | (2,530 | ) |   |   | (629 | ) |   |   |   |   |   |   |   |   |   |   |   |   |
| High      Desert Bank              |   |                                | 1,820   |   |   |   | 955 |   |   |   | (2,726 | ) |   |   | (581 | ) |   |   |   |   |   |   |   |   |   |   |   |   |
| Issaquah      Community Bank       |   |                                | 1,554   |   |   |   | 857 |   |   |   | (1,284 | ) |   |   | (494 | ) |   |   |   |   |   |   |   |   |   |   |   |   |
| Northwest      Region Total        |   |                                | 8,949   |   |   |   | 7,019 |   |   |   | (10,125 | ) |   |   | (2,662 | ) |   |   |   |   |   |   |   |   |   |   |   |   |
|                               |   |                                |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Southeast      Region:             |   |                                |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Bank      of Valdosta              |   |                                | 2,165   |   |   |   | 2,413 |   |   |   | (1,261 | ) |   |   | (55 | ) |   |   |   |   |   |   |   |   |   |   |   |   |
| Community      Bank of Rowan(4)    |   |                                | 4,962   |   |   |   | 5,553 |   |   |   | 459 |   |   |   | 698 |   |   |   | 5.73 | % |   |   | 9.38 | % |   |   | 0.47 | % |   |   | 0.76 | % |
| First      Carolina State Bank     |   |                                | 4,183   |   |   |   | 4,785 |   |   |   | (976 | ) |   |   | 31 |   |   |   |   |   |   |   | 0.37 | % |   |   |   |   |   |   | 0.04 | % |
| Peoples      State Bank            |   |                                | 1,017   |   |   |   | 1,326 |   |   |   | (1,739 | ) |   |   | 5 |   |   |   |   |   |   |   | 0.13 | % |   |   |   |   |   |   | 0.03 | % |
| Pisgah      Community Bank         |   |                                | 1,739   |   |   |   | 357 |   |   |   | (1,187 | ) |   |   | (700 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Sunrise      Bank of Atlanta       |   |                                | 2,867   |   |   |   | 3,462 |   |   |   | (2,126 | ) |   |   | (310 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Southeast      Region Total        |   |                                | 16,933  |   |   |   | 17,896 |   |   |   | (6,830 | ) |   |   | (331 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                               |   |                                |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Texas      Region:                 |   |                                |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Bank      of Fort Bend             |   |                                | 1,122   |   |   |   | 629 |   |   |   | (1,278 | ) |   |   | (669 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Bank      of Las Colinas           |   |                                | 1,435   |   |   |   | 887 |   |   |   | (1,162 | ) |   |   | (470 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Texas      Region Total            |   |                                | 2,557   |   |   |   | 1,516 |   |   |   | (2,440 | ) |   |   | (1,139 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                               |   |                                |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Parent      company and other, net |   |                                | (211    | ) |   |   | 2,831 |   |   |   | 30,381 |   |   |   | (12,182 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                               |   |                                |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Consolidated      totals           |   | $                                   | 224,646 |   |   | $ | 251,129 |   |   | $ | (118,118 | ) |   | $ | (29,681 | ) |   |   |  -- |   |   |   |  -- |   |   |   |  -- |   |   |   |  -- |   |

| (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.  For comparative purposes, the merger of those banks is      presented as if such merger occurred December 31, 2008. |
| (4) | Bank      of Santa Barbara, Community Bank of Rowan and Summit Bank of Kansas City      are majority-owned subsidiaries of Capitol Development Bancorp Limited      (CDBL) III of which Capitol ceased to have majority voting control      effective September 30, 2009.  Thus, effective September 30,      2009, those banks and CDBL III ceased to be consolidated subsidiaries of      Capitol.                                    |
| (5) | Capitol      sold its ownership in Yuma Community Bank effective September 21,      2009.  The Bank's operations are included in Capitol's      consolidated totals through thatdate.                                                                                                                                                                                                                                                   |

----

----

|                                  |   |                             |   |   | Tier      1 Risk-Based   |   |   | Total      Risk-Based    |   |                              |
|---------------------------------------|--------|----------------------------------|--------|--------|--------------------------|--------|--------|--------------------------|--------|-----------------------------------|
|                                  |   | Tier      1 Leverage Ratio(1)(5) |   |   | Capital      Ratio(1)(5) |   |   | Capital      Ratio(2)(5) |   | Regulatory      Classification(3) |
|                                  |   | Sept      30,2009                |   |   | Dec      31,2008         |   |   | Sept      30,2009        |   |                              | Dec      31,2008 |   |   | Sept      30,2009 |   |   | Dec      31,2008 |   | Sept      30,2009 | Dec      31,2008 |
| Arizona      Region:                  |   |                             |   |   |                     |   |   |                     |   |                              |   |   |   |   |   |   |   |   |   |   |
| Arrowhead      Community Bank         |   |                             | 4.55   | %      |                     |   | 7.77   | %                        |   |                              | 6.69 | % |   |   | 8.74 | % |   |   | 8.03 | % |   |   | 10.02 | % | adequately-capitalized | well-capitalized |
| Asian      Bank of Arizona(4)         |   |                             | 6.38   | %      |                     |   | 13.27  | %                        |   |                              | 8.03 | % |   |   | 15.06 | % |   |   | 9.30 | % |   |   | 16.32 | % | adequately-capitalized | well-capitalized |
| Bank      of Tucson                   |   |                             | 8.90   | %      |                     |   | 9.53   | %                        |   |                              | 11.41 | % |   |   | 9.41 | % |   |   | 12.59 | % |   |   | 10.26 | % | well-capitalized | well-capitalized |
| Camelback      Community Bank         |   |                             | 8.62   | %      |                     |   | 9.02   | %                        |   |                              | 9.76 | % |   |   | 9.64 | % |   |   | 11.02 | % |   |   | 10.53 | % | well-capitalized | well-capitalized |
| Central      Arizona Bank             |   |                             | 5.49   | %      |                     |   | 13.38  | %                        |   |                              | 6.86 | % |   |   | 13.02 | % |   |   | 8.15 | % |   |   | 14.27 | % | adequately-capitalized | well-capitalized |
| Colonia      Bank(4)                  |   |                             | 40.91  | %      |                     |   | 65.50  | %                        |   |                              | 59.24 | % |   |   | 79.66 | % |   |   | 60.51 | % |   |   | 80.91 | % | well-capitalized | well-capitalized |
| Mesa      Bank                        |   |                             | 4.93   | %      |                     |   | 6.74   | %                        |   |                              | 6.99 | % |   |   | 8.85 | % |   |   | 8.24 | % |   |   | 10.10 | % | adequately-capitalized(8) | well-capitalized |
| Southern      Arizona CommunityBank   |   |                             | 9.53   | %      |                     |   | 9.14   | %                        |   |                              | 10.66 | % |   |   | 10.15 | % |   |   | 11.91 | % |   |   | 11.22 | % |  well-capitalized |  well-capitalized |
| Sunrise      Bank of Albuquerque      |   |                             | 7.11   | %      |                     |   | 8.50   | %                        |   |                              | 8.87 | % |   |   | 9.08 | % |   |   | 10.14 | % |   |   | 10.33 | % | adequately-capitalized(8) | well-capitalized |
| Sunrise      Bank of Arizona          |   |                             | 5.73   | %      |                     |   | 8.73   | %                        |   |                              | 7.61 | % |   |   | 9.38 | % |   |   | 8.87 | % |   |   | 10.41 | % | adequately-capitalized | well-capitalized |
| Yuma      Community Bank(6)           |   |                             |   |   |                     |   | 8.94   | %                        |   |                              |   |   |   |   | 10.26 | % |   |   |   |   |   |   | 11.40 | % |   | well-capitalized |
|                                  |   |                             |   |   |                     |   |   |                     |   |                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| California      Region:               |   |                             |   |   |                     |   |   |                     |   |                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Bank      of Escondido                |   |                             | 9.24   | %      |                     |   | 11.29  | %                        |   |                              | 13.42 | % |   |   | 15.50 | % |   |   | 14.70 | % |   |   | 16.66 | % | well-capitalized | well-capitalized |
| Bank      of Feather River(4)         |   |                             | 18.35  | %      |                     |   | 25.72  | %                        |   |                              | 27.07 | % |   |   | 27.12 | % |   |   | 28.32 | % |   |   | 28.37 | % | well-capitalized | well-capitalized |
| Bank      of San Francisco            |   |                             | 8.37   | %      |                     |   | 11.04  | %                        |   |                              | 9.76 | % |   |   | 11.53 | % |   |   | 11.02 | % |   |   | 12.78 | % | well-capitalized | well-capitalized |
| Bank      of Santa Barbara(9)         |   |                             | 6.93   | %      |                     |   | 8.00   | %                        |   |                              | 7.80 | % |   |   | 8.77 | % |   |   | 9.07 | % |   |   | 10.03 | % | adequately-capitalized | well-capitalized |
| Napa      Community Bank              |   |                             | 10.77  | %      |                     |   | 11.06  | %                        |   |                              | 11.03 | % |   |   | 10.79 | % |   |   | 12.28 | % |   |   | 12.04 | % | well-capitalized | well-capitalized |
| Point      Loma Community Bank        |   |                             | 8.43   | %      |                     |   | 11.11  | %                        |   |                              | 11.20 | % |   |   | 12.78 | % |   |   | 12.46 | % |   |   | 14.04 | % | well-capitalized | well-capitalized |
| Sunrise      Bank of San Diego        |   |                             | 8.36   | %      |                     |   | 10.27  | %                        |   |                              | 10.95 | % |   |   | 11.12 | % |   |   | 12.24 | % |   |   | 12.38 | % | well-capitalized | well-capitalized |
| Sunrise      Community Bank(4)        |   |                             | 8.96   | %      |                     |   | 14.39  | %                        |   |                              | 12.08 | % |   |   | 18.07 | % |   |   | 13.35 | % |   |   | 19.32 | % | well-capitalized | well-capitalized |
|                                  |   |                             |   |   |                     |   |   |                     |   |                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Colorado      Region:                 |   |                             |   |   |                     |   |   |                     |   |                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Fort      Collins Commerce Bank       |   |                             | 11.23  | %      |                     |   | 12.48  | %                        |   |                              | 12.70 | % |   |   | 12.98 | % |   |   | 13.96 | % |   |   | 14.23 | % | well-capitalized | well-capitalized |
| Larimer      Bank of Commerce(4)      |   |                             | 9.11   | %      |                     |   | 8.95   | %                        |   |                              | 11.46 | % |   |   | 9.83 | % |   |   | 12.73 | % |   |   | 11.08 | % | well-capitalized | well-capitalized |
| Loveland      Bank of Commerce(4)     |   |                             | 15.93  | %      |                     |   | 21.48  | %                        |   |                              | 18.81 | % |   |   | 24.66 | % |   |   | 20.07 | % |   |   | 25.92 | % | well-capitalized | well-capitalized |
| Mountain      View Bank ofCommerce(4) |   |                             | 14.69  | %      |                     |   | 20.81  | %                        |   |                              | 17.30 | % |   |   | 20.53 | % |   |   | 18.55 | % |   |   | 21.78 | % |  well-capitalized |  well-capitalized |
|                                  |   |                             |   |   |                     |   |   |                     |   |                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Great      Lakes Region:              |   |                             |   |   |                     |   |   |                     |   |                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Bank      of Auburn Hills             |   |                             | 6.37   | %      |                     |   | 11.05  | %                        |   |                              | 8.31 | % |   |   | 12.64 | % |   |   | 9.61 | % |   |   | 13.90 | % | adequately-capitalized | well-capitalized |
| Bank      of Maumee(4)                |   |                             | 8.99   | %      |                     |   | 10.47  | %                        |   |                              | 11.94 | % |   |   | 11.54 | % |   |   | 13.21 | % |   |   | 12.79 | % | well-capitalized | well-capitalized |
| Bank      of Michigan                 |   |                             | 6.66   | %      |                     |   | 9.15   | %                        |   |                              | 9.96 | % |   |   | 9.76 | % |   |   | 11.22 | % |   |   | 11.01 | % | well-capitalized | well-capitalized |
| Capitol      National Bank            |   |                             | 7.29   | %      |                     |   | 7.95   | %                        |   |                              | 9.48 | % |   |   | 8.96 | % |   |   | 10.76 | % |   |   | 10.24 | % | adequately-capitalized(8) | well-capitalized |
| Elkhart      Community Bank           |   |                             | 5.02   | %      |                     |   | 7.71   | %                        |   |                              | 6.89 | % |   |   | 8.82 | % |   |   | 8.17 | % |   |   | 10.08 | % | adequately-capitalized(8) | well-capitalized |
| Evansville      Commerce Bank(4)      |   |                             | 8.01   | %      |                     |   | 8.13   | %                        |   |                              | 10.68 | % |   |   | 9.81 | % |   |   | 11.94 | % |   |   | 11.07 | % | well-capitalized | well-capitalized |
| Goshen      Community Bank            |   |                             | 7.28   | %      |                     |   | 7.96   | %                        |   |                              | 9.64 | % |   |   | 8.96 | % |   |   | 10.92 | % |   |   | 10.21 | % | adequately-capitalized(8) | well-capitalized |
| Michigan      Commerce Bank           |   |                             | 4.64   | %      |                     |   | 10.75  | %                        |   |                              | 5.86 | % |   |   | 10.70 | % |   |   | 7.15 | % |   |   | 12.19 | % | under-capitalized(7)(8) | well-capitalized |
| Ohio      Commerce Bank(4)            |   |                             | 14.23  | %      |                     |   | 15.29  | %                        |   |                              | 16.82 | % |   |   | 17.14 | % |   |   | 18.07 | % |   |   | 18.39 | % | well-capitalized | well-capitalized |
| Paragon      Bank & Trust         |   |                             | 4.76   | %      |                     |   | 8.09   | %                        |   |                              | 6.92 | % |   |   | 8.99 | % |   |   | 8.22 | % |   |   | 10.27 | % | adequately-capitalized | well-capitalized |
|                                  |   |                             |   |   |                     |   |   |                     |   |                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Midwest      Region:                  |   |                             |   |   |                     |   |   |                     |   |                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Adams      Dairy Bank(4)              |   |                             | 16.37  | %      |                     |   | 22.19  | %                        |   |                              | 20.76 | % |   |   | 25.01 | % |   |   | 21.71 | % |   |   | 26.27 | % | well-capitalized | well-capitalized |
| Bank      of Belleville               |   |                             | 8.30   | %      |                     |   | 8.68   | %                        |   |                              | 10.28 | % |   |   | 9.51 | % |   |   | 11.53 | % |   |   | 10.76 | % | well-capitalized | well-capitalized |
| Community      Bank of Lincoln(4)     |   |                             | 10.12  | %      |                     |   | 13.68  | %                        |   |                              | 12.60 | % |   |   | 15.14 | % |   |   | 13.86 | % |   |   | 16.39 | % | well-capitalized | well-capitalized |
| Summit      Bank of Kansas City(9)    |   |                             | 9.25   | %      |                     |   | 11.64  | %                        |   |                              | 12.51 | % |   |   | 13.57 | % |   |   | 13.76 | % |   |   | 14.82 | % | well-capitalized | well-capitalized |
|                                  |   |                             |   |   |                     |   |   |                     |   |                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Nevada      Region:                   |   |                             |   |   |                     |   |   |                     |   |                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 1st      Commerce Bank(4)             |   |                             | 8.41   | %      |                     |   | 10.03  | %                        |   |                              | 11.40 | % |   |   | 16.02 | % |   |   | 12.67 | % |   |   | 17.28 | % | well-capitalized | well-capitalized |
| Bank      of Las Vegas                |   |                             | 6.90   | %      |                     |   | 8.78   | %                        |   |                              | 7.75 | % |   |   | 9.47 | % |   |   | 9.03 | % |   |   | 10.72 | % | adequately-capitalized | well-capitalized |
| Black      Mountain CommunityBank     |   |                             | 7.55   | %      |                     |   | 8.45   | %                        |   |                              | 8.78 | % |   |   | 9.10 | % |   |   | 10.04 | % |   |   | 10.31 | % |  well-capitalized |  well-capitalized |
| Desert      Community Bank            |   |                             | 6.93   | %      |                     |   | 8.21   | %                        |   |                              | 8.12 | % |   |   | 9.58 | % |   |   | 9.39 | % |   |   | 10.65 | % | adequately-capitalized | well-capitalized |
| Red      Rock Community Bank          |   |                             | 5.76   | %      |                     |   | 8.52   | %                        |   |                              | 7.92 | % |   |   | 9.39 | % |   |   | 9.18 | % |   |   | 10.45 | % | adequately-capitalized | well-capitalized |
|                                  |   |                             |   |   |                     |   |   |                     |   |                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Northeast      Region:                |   |                             |   |   |                     |   |   |                     |   |                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| USNY      Bank(4)                     |   |                             | 8.12   | %      |                     |   | 11.72  | %                        |   |                              | 9.76 | % |   |   | 12.45 | % |   |   | 11.01 | % |   |   | 13.70 | % | well-capitalized | well-capitalized |

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|                               |   |                             |   |   | Tier      1 Risk-Based   |   |   | Total      Risk-Based    |   |                              |             |
|------------------------------------|--------|----------------------------------|--------|--------|--------------------------|--------|--------|--------------------------|--------|-----------------------------------|------------------|
|                               |   | Tier      1 Leverage Ratio(1)(5) |   |   | Capital      Ratio(1)(5) |   |   | Capital      Ratio(2)(5) |   | Regulatory      Classification(3) |
|                               |   | Sept      30,2009                |   |   | Dec      31,2008         |   |   | Sept      30,2009        |   |                              | Dec      31,2008 |   |   | Sept      30,2009 |   |   | Dec      31,2008 |   | Sept      30,2009 | Dec      31,2008 |
| Northwest      Region:             |   |                             |   |   |                     |   |   |                     |   |                              |             |   |   |   |   |   |   |   |   |   |
| Bank      of Bellevue              |   |                             | 8.79   | %      |                     |   | 10.93  | %                        |   |                              | 13.15            | % |   |   | 11.99 | % |   |   | 14.42 | % |   |   | 13.25 | % | well-capitalized | well-capitalized |
| Bank      of Everett(4)            |   |                             | 9.14   | %      |                     |   | 11.98  | %                        |   |                              | 11.34            | % |   |   | 14.30 | % |   |   | 12.61 | % |   |   | 15.56 | % | well-capitalized | well-capitalized |
| Bank      of Tacoma(4)             |   |                             | 8.06   | %      |                     |   | 13.54  | %                        |   |                              | 11.10            | % |   |   | 12.86 | % |   |   | 12.37 | % |   |   | 14.12 | % | adequately-capitalized(8) | well-capitalized |
| High      Desert Bank(4)           |   |                             | 8.34   | %      |                     |   | 15.86  | %                        |   |                              | 10.94            | % |   |   | 17.29 | % |   |   | 12.21 | % |   |   | 18.54 | % | well-capitalized | well-capitalized |
| Issaquah      Community Bank(4)    |   |                             | 15.77  | %      |                     |   | 23.27  | %                        |   |                              | 21.69            | % |   |   | 26.08 | % |   |   | 22.96 | % |   |   | 27.33 | % | well-capitalized | well-capitalized |
|                               |   |                             |   |   |                     |   |   |                     |   |                              |             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Southeast      Region:             |   |                             |   |   |                     |   |   |                     |   |                              |             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Bank      of Valdosta(4)           |   |                             | 7.94   | %      |                     |   | 8.01   | %                        |   |                              | 11.70            | % |   |   | 10.32 | % |   |   | 12.96 | % |   |   | 11.58 | % | well-capitalized | well-capitalized |
| Community      Bank of Rowan(4)(9) |   |                             | 8.42   | %      |                     |   | 8.04   | %                        |   |                              | 10.41            | % |   |   | 9.59 | % |   |   | 11.67 | % |   |   | 10.84 | % | well-capitalized | well-capitalized |
| First      Carolina State Bank     |   |                             | 7.91   | %      |                     |   | 8.61   | %                        |   |                              | 9.87             | % |   |   | 9.69 | % |   |   | 11.13 | % |   |   | 10.94 | % | well-capitalized | well-capitalized |
| Peoples      State Bank            |   |                             | 9.11   | %      |                     |   | 8.15   | %                        |   |                              | 13.53            | % |   |   | 10.40 | % |   |   | 14.79 | % |   |   | 11.65 | % | well-capitalized | well-capitalized |
| Pisgah      Community Bank(4)      |   |                             | 11.73  | %      |                     |   | 22.86  | %                        |   |                              | 14.56            | % |   |   | 25.11 | % |   |   | 15.82 | % |   |   | 26.37 | % | well-capitalized | well-capitalized |
| Sunrise      Bank of Atlanta(4)    |   |                             | 7.21   | %      |                     |   | 8.19   | %                        |   |                              | 9.05             | % |   |   | 9.78 | % |   |   | 10.32 | % |   |   | 11.04 | % | well-capitalized | well-capitalized |
|                               |   |                             |   |   |                     |   |   |                     |   |                              |             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Texas      Region:                 |   |                             |   |   |                     |   |   |                     |   |                              |             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Bank      of Fort Bend(4)          |   |                             | 15.61  | %      |                     |   | 23.19  | %                        |   |                              | 20.25            | % |   |   | 28.46 | % |   |   | 21.50 | % |   |   | 29.71 | % | well-capitalized | well-capitalized |
| Bank      of Las Colinas(4)        |   |                             | 12.08  | %      |                     |   | 19.54  | %                        |   |                              | 16.26            | % |   |   | 22.08 | % |   |   | 17.53 | % |   |   | 23.33 | % | well-capitalized | well-capitalized |
|                               |   |                             |   |   |                     |   |   |                     |   |                              |             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Consolidated      totals           |   |                             | 6.26   | %      |                     |   | 10.72  | %                        |   |                              | 8.43             | % |   |   | 12.07 | % |   |   | 11.17 | % |   |   | 13.75 | % | well-capitalized | well-capitalized |

| (1) | The      minimum required Tier 1 leverage ratio and Tier 1 risk-based capital ratio      is 4% (8% for de      novo institutions).                                                                                                                                                                                                                                                                             |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (2) | The      minimum required total risk-based capital ratio is 8%.                                                                                                                                                                                                                                                                                                                                                |
| (3) | In      order to be classified as a 'well-capitalized' institution, the total      risk-based capital ratio must be 10% or more.  To be classified      as an 'adequately-capitalized' institution, the total risk-based capital      ratio must be between 8% and 10%.                                                                                                                              |
| (4) | De novo institution      which is subject to higher minimum ratio requirements as noted in (1)      above for the first three years of operations.                                                                                                                                                                                                                                                             |
| (5) | Ratios      are per the regulatory call reports and Y9-C filed at original due date      which is generally within 30 days after quarter-end.                                                                                                                                                                                                                                                                  |
| (6) | Capitol      sold its ownership in Yuma Community Bank effective September 21,      2009.                                                                                                                                                                                                                                                                                                                      |
| (7) | Effective      November 9, 2009, Capitol transferred $8.3 million as additional capital      to Michigan Commerce Bank, increasing its regulatory classification to      adequately-capitalized.                                                                                                                                                                                                               |
| (8) | Institution      is subject to a regulatory agreement and, accordingly, cannot be      classified better than adequately-capitalized.                                                                                                                                                                                                                                                                          |
| (9) | Bank      of Santa Barbara, Community Bank of Rowan and Summit Bank of Kansas City      are majority-owned subsidiaries of Capitol Development Bancorp Limited      (CDBL) III of which Capitol ceased to have majority voting control      effective September 30, 2009.  Thus, effective September 30,      2009, those banks and CDBL III ceased to be consolidated subsidiaries of      Capitol. |

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| Item      1.  | Legal      Proceedings. Capitol      and its subsidiaries are parties to certain ordinary, routine litigation      incidental to their business.  In the opinion of management,      liabilities arising from such litigation would not have a material effect      on Capitol's consolidated financial position or results of      operations.                                                                 |
|---------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Item      1A. | Risk      Factors. There      were no material changes from the risk factors set forth in Part I,      Item 1A, "Risk Factors," of Capitol's Form 10-K for the year ended      December 31, 2008, during the nine months ended September 30,      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.  |

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

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| 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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