----

----

| T      | QUARTERLY      REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE  |
|--------|---------------------------------------------------------------|
|   | SECURITIES      EXCHANGE ACT OF 1934                          |
|   | For      the quarterly period ended September 30, 2008        |
|   | OR                                                            |
| £ | TRANSITION      REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE |
|   | SECURITIES      EXCHANGE ACT OF 1934                          |

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

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

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

| Class                           |   | Outstanding      at October 15, 2008 |
|---------------------------------|--------|--------------------------------------|
| Common      Stock, No par value |   | 17,337,308      shares               |

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

----

|  Item      1.       |  Financial      Statements (unaudited):                                                                                              | Page     |
|--------------------------|-------------------------------------------------------------------------------------------------------------------------------------------|----------|
|                     | Condensed      consolidated balance sheets – September 30, 2008 and December 31,      2007.                                         | 3        |
|                     | Condensed      consolidated statements of operations – Three months and nine      monthsended      September 30, 2008 and 2007.     | 4        |
|                     | Condensed      consolidated statements of changes in stockholders' equity – Nine      monthsended      September 30, 2008 and 2007. | 5        |
|                     | Condensed      consolidated statements of cash flows – Nine months ended September      30,2008      and 2007.                      | 6        |
|                     | Notes      to condensed consolidated financial statements.                                                                                | 7        |
| Item      2.             | Management's      Discussion and Analysis of Financial Condition and Results of      Operations.                                          | 12       |
| Item      3.             | Quantitative      and Qualitative Disclosures About Market Risk.                                                                          | 27       |
| Item      4.             | Controls      and Procedures.                                                                                                             | 27       |
|  PART      II.      |  OTHER      INFORMATION                                                                                                              |     |
|  Item      1.       |  Legal      Proceedings.                                                                                                             |  28 |
| Item      1A.            | Risk      Factors.                                                                                                                        | 28       |
| Item      2.             | Unregistered      Sales of Equity Securities and Use of Proceeds.                                                                         | 28       |
| Item      3.             | Defaults      Upon Senior Securities.                                                                                                     | 28       |
| Item      4.             | Submission      of Matters to a Vote of Security Holders.                                                                                 | 28       |
| Item      5.             | Other      Information.                                                                                                                   | 28       |
| Item      6.             | Exhibits.                                                                                                                                 | 28       |
|  SIGNATURES         |                                                                                                                                      |  29 |
|  EXHIBIT      INDEX |                                                                                                                                      |  30 |

----

| PART      I, ITEM 1                                                                                                     |
|-------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                    |   |   |   |   |   |   |   |
| CAPITOL      BANCORP LIMITED                                                                                            |
| Condensed      Consolidated Balance Sheets                                                                              |
| As      of September 30, 2008 and December 31, 2007                                                                     |
| (in      thousands, except share data)                                                                                  |
|                                                                                                                    |   |   |   |   |   |   |   |
|                                                                                                                    |   |   | (Unaudited) |   |   |   |   |
|                                                                                                                    |   |   | September      30, |   |   | December      31, |   |
|                                                                                                                    |   |   | 2008 |   |   | 2007 |   |
| ASSETS                                                                                                                  |   |   |   |   |   |   |   |
| Cash      and due from banks                                                                                            |   |   | $ | 216,245 |   |   | $ | 196,083 |   |
| Money      market and interest-bearing deposits                                                                         |   |   | 41,338 |   |   |   | 26,924 |   |
| Federal      funds sold                                                                                                 |   |   |   | 233,760 |   |   |   | 129,365 |   |
| Cash      and cash equivalents                                                                                          |   |   | 491,343 |   |   |   | 352,372 |   |
| Loans      held for sale                                                                                                |   |   |   | 7,334 |   |   |   | 16,419 |   |
| Investment      securities:                                                                                             |   |   |   |   |   |   |   |   |   |
|    Available      for sale, carried at market value                                                      |   |   | 18,085 |   |   |   | 14,119 |   |
|    Held      for long-term investment, carried at                                                        |   |   |   |   |   |   |   |   |
|      amortized      cost which approximates market value                                       |   |   | 32,091 |   |   |   | 25,478 |   |
| Total      investment securities                                                                                        |   |   | 50,176 |   |   |   | 39,597 |   |
| Portfolio      loans:                                                                                                   |   |   |   |   |   |   |   |   |   |
|    Loans      secured by real estate:                                                                    |   |   |   |   |   |   |   |   |   |
|     Commercial                                                                                      |   |   |   | 2,074,254 |   |   |   | 1,917,113 |   |
|     Residential      (including multi-family)                                                       |   |   |   | 851,509 |   |   |   | 698,960 |   |
|     Construction,      land development and other land                                              |   |   | 813,420 |   |   |   | 852,595 |   |
| Total      loans secured by real estate                                                                                 |   |   | 3,739,183 |   |   |   | 3,468,668 |   |
|    Commercial      and other business-purpose loans                                                      |   |   | 832,669 |   |   |   | 768,473 |   |
|    Consumer                                                                                              |   |   |   | 58,122 |   |   |   | 48,041 |   |
|    Other                                                                                                 |   |   |   | 32,298 |   |   |   | 29,519 |   |
| Total      portfolio loans                                                                                              |   |   | 4,662,272 |   |   |   | 4,314,701 |   |
|    Less      allowance for loan losses                                                                   |   |   |   | (97,585 | ) |   |   | (58,124 | ) |
| Net      portfolio loans                                                                                                |   |   | 4,564,687 |   |   |   | 4,256,577 |   |
| Premises      and equipment                                                                                             |   |   |   | 60,000 |   |   |   | 60,031 |   |
| Accrued      interest income                                                                                            |   |   |   | 18,387 |   |   |   | 19,417 |   |
| Goodwill      and other intangibles                                                                                     |   |   |   | 73,428 |   |   |   | 72,722 |   |
| Other      assets                                                                                                       |   |   |   | 161,992 |   |   |   | 84,628 |   |
|                                                                                                                    |   |   |   |   |   |   |   |   |   |
|             TOTAL      ASSETS                               |   |   | $ | 5,427,347 |   |   | $ | 4,901,763 |   |
|                                                                                                                    |   |   |   |   |   |   |   |   |   |
| LIABILITIES AND      STOCKHOLDERS' EQUITY                                                                               |   |   |   |   |   |   |   |   |
| LIABILITIES:                                                                                                            |   |   |   |   |   |   |   |   |   |
| Deposits:                                                                                                               |   |   |   |   |   |   |   |   |   |
|    Noninterest-bearing                                                                                   |   |   | $ | 647,994 |   |   | $ | 671,688 |   |
|    Interest-bearing                                                                                      |   |   |   | 3,635,567 |   |   |   | 3,173,057 |   |
| Total      deposits                                                                                                     |   |   | 4,283,561 |   |   |   | 3,844,745 |   |
| Debt      obligations:                                                                                                  |   |   |   |   |   |   |   |   |   |
|    Notes      payable and short-term borrowings                                                          |   |   | 432,536 |   |   |   | 320,384 |   |
|    Subordinated      debentures                                                                          |   |   |   | 167,342 |   |   |   | 156,130 |   |
| Total      debt obligations                                                                                             |   |   | 599,878 |   |   |   | 476,514 |   |
| Accrued      interest on deposits and other liabilities                                                                 |   |   | 30,096 |   |   |   | 35,161 |   |
| Total      liabilities                                                                                                  |   |   | 4,913,535 |   |   |   | 4,356,420 |   |
|                                                                                                                    |   |   |   |   |   |   |   |   |   |
| MINORITY      INTERESTS IN CONSOLIDATED SUBSIDIARIES                                                                    |   |   | 160,704 |   |   |   | 156,198 |   |
|                                                                                                                    |   |   |   |   |   |   |   |   |   |
| STOCKHOLDERS'      EQUITY:                                                                                              |   |   |   |   |   |   |   |   |   |
| Common      stock, no par value,  50,000,000 shares    authorized;                                            |   |   |   |   |   |   |   |   |
|    issued      and outstanding: 2008      - 17,337,308 shares                                       |   |   |   |   |   |   |   |   |
| 2007      - 17,316,568 shares                                                                                           |   |   | 273,644 |   |   |   | 272,208 |   |
| Retained      earnings                                                                                                  |   |   |   | 80,047 |   |   |   | 117,520 |   |
| Undistributed      common stock held by employee-benefit trust                                                          |   |   | (580 | ) |   |   | (586 | ) |
| Market      value adjustment (net of tax effect) for                                                                    |   |   |   |   |   |   |   |   |
|    investment      securities available for sale (accumulated                                            |   |   |   |   |   |   |   |   |
|    other      comprehensive income)                                                                      |   |   |   | (3 | ) |   |   | 3 |   |
| Total      stockholders' equity                                                                                         |   |   | 353,108 |   |   |   | 389,145 |   |
|                                                                                                                    |   |   |   |   |   |   |   |   |   |
|             TOTAL      LIABILITIES AND STOCKHOLDERS' EQUITY |   | $ | 5,427,347 |   |   | $ | 4,901,763 |   |
|                                                                                                                    |   |   |   |   |   |   |   |   |   |
| 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, 2008 and      2007                                                                                                                                                                  |
| (in      thousands, except per share data)                                                                                                                                                                                                        |
|                                                                                                                                                                                                                                              |   |   |
|                                                                                                                                                                                                                                              | Three      Month Period |   |   | Nine      Month Period |
|                                                                                                                                                                                                                                              | 2008 |   |   | 2007 |   |   | 2008 |   |   | 2007 |
| Interest      income:                                                                                                                                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |
|         Portfolio loans (including fees)                                                                                                                                                                                                |   | $ | 73,328 |   |   | $ | 81,117 |   |   | $ | 224,897 |   |   | $ | 231,819 |
|         Loans held for sale                                                                                                                                                                                                             |   |   | 145 |   |   |   | 429 |   |   |   | 681 |   |   |   | 1,765 |
|         Taxable investment securities                                                                                                                                                                                                   |   |   | 154 |   |   |   | 188 |   |   |   | 389 |   |   |   | 589 |
|         Federal funds sold                                                                                                                                                                                                              |   |   | 1,259 |   |   |   | 2,916 |   |   |   | 3,480 |   |   |   | 8,569 |
|         Other                                                                                                                                                                                                                           |   |   | 610 |   |   |   | 386 |   |   |   | 1,689 |   |   |   | 1,387 |
| Total      interest income                                                                                                                                                                                                                        |   |   | 75,496 |   |   |   | 85,036 |   |   |   | 231,136 |   |   |   | 244,129 |
| Interest      expense:                                                                                                                                                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|         Deposits                                                                                                                                                                                                                        |   |   | 27,149 |   |   |   | 32,359 |   |   |   | 84,826 |   |   |   | 90,955 |
|         Debt obligations and other                                                                                                                                                                                                      |   |   | 7,308 |   |   |   | 6,009 |   |   |   | 21,144 |   |   |   | 16,283 |
| Total      interest expense                                                                                                                                                                                                                       |   |   | 34,457 |   |   |   | 38,368 |   |   |   | 105,970 |   |   |   | 107,238 |
| Net      interest income                                                                                                                                                                                                                          |   |   | 41,039 |   |   |   | 46,668 |   |   |   | 125,166 |   |   |   | 136,891 |
| Provision      for loan losses                                                                                                                                                                                                                    |   |   | 53,810 |   |   |   | 7,890 |   |   |   | 71,787 |   |   |   | 15,812 |
| Net      interest income (deficiency) after                                                                                                                                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |
|                                         provision for loan losses       |   |   | (12,771 | ) |   |   | 38,778 |   |   |   | 53,379 |   |   |   | 121,079 |
| Noninterest      income:                                                                                                                                                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|         Service charges on deposit accounts                                                                                                                                                                                             |   |   | 1,526 |   |   |   | 1,232 |   |   |   | 4,316 |   |   |   | 3,524 |
|         Trust and wealth-management revenue                                                                                                                                                                                             |   |   | 1,791 |   |   |   | 1,371 |   |   |   | 4,999 |   |   |   | 3,525 |
|         Fees from origination of non-portfolio residential                                                                                                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|           mortgage loans                                                                                                                                                                                                      |   |   | 926 |   |   |   | 1,142 |   |   |   | 2,910 |   |   |   | 3,754 |
|         Gain on sales of government-guaranteed loans                                                                                                                                                                                    |   |   | 608 |   |   |   | 946 |   |   |   | 1,831 |   |   |   | 2,296 |
|         Gain on sales of other non-portfolio commercial loans                                                                                                                                                                           |   |   | 207 |   |   |   | 371 |   |   |   | 867 |   |   |   | 1,000 |
|         Realized gains on sale of investment securities                                                                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|           available for sale                                                                                                                                                                                                  |   |   | 5 |   |   |   | - |   |   |   | 50 |   |   |   | - |
|         Other                                                                                                                                                                                                                           |   |   | 1,888 |   |   |   | 2,049 |   |   |   | 5,020 |   |   |   | 4,440 |
| Total      noninterest income                                                                                                                                                                                                                     |   |   | 6,951 |   |   |   | 7,111 |   |   |   | 19,993 |   |   |   | 18,539 |
| Noninterest      expense:                                                                                                                                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|         Salaries and employee benefits                                                                                                                                                                                                  |   |   | 29,319 |   |   |   | 27,816 |   |   |   | 82,597 |   |   |   | 80,325 |
|         Occupancy                                                                                                                                                                                                                       |   |   | 4,968 |   |   |   | 3,831 |   |   |   | 13,872 |   |   |   | 10,880 |
|         Equipment rent, depreciation and maintenance                                                                                                                                                                                    |   |   | 3,821 |   |   |   | 2,239 |   |   |   | 9,695 |   |   |   | 7,471 |
|         Other                                                                                                                                                                                                                           |   |   | 15,684 |   |   |   | 10,588 |   |   |   | 40,221 |   |   |   | 29,835 |
| Total      noninterest expense                                                                                                                                                                                                                    |   |   | 53,792 |   |   |   | 44,474 |   |   |   | 146,385 |   |   |   | 128,511 |
| Income      (loss) before income taxes                                                                                                                                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |
|                                         (benefit) and minority interest |   |   | (59,612 | ) |   |   | 1,415 |   |   |   | (73,013 | ) |   |   | 11,107 |
| Income      taxes (benefit)                                                                                                                                                                                                                       |   |   | (20,732 | ) |   |   | 586 |   |   |   | (25,428 | ) |   |   | 4,696 |
| Income      (loss) before minority interest                                                                                                                                                                                                       |   |   | (38,880 | ) |   |   | 829 |   |   |   | (47,585 | ) |   |   | 6,411 |
| Minority      interest in net losses of consolidated subsidiaries                                                                                                                                                                                 |   |   | 6,385 |   |   |   | 5,145 |   |   |   | 17,904 |   |   |   | 12,132 |
|                                                                                                                                                                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|       NET      INCOME (LOSS)                                                                                                                                                                                        |   | $ | (32,495 | ) |   | $ | 5,974 |   |   | $ | (29,681 | ) |   | $ | 18,543 |
|                                                                                                                                                                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|       NET      INCOME (LOSS) PER SHARE -- Note E:                                                                                                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                                                                                                                                                                                                                             |   | $ | (1.90 | ) |   | $ | 0.35 |   |   | $ | (1.73 | ) |   | $ | 1.10 |
|                                                                                                                                                                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Diluted                                                                                                                                                                                                                                           |   | $ | (1.90 | ) |   | $ | 0.35 |   |   | $ | (1.73 | ) |   | $ | 1.08 |
|                                                                                                                                                                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| See      notes to condensed consolidated financial statements.                                                                                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |

----

| CAPITOL      BANCORP LIMITED                                                                                                                                                                                                                         |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Condensed      Consolidated Statements of Changes in Stockholders' Equity      (Unaudited)                                                                                                                                                           |
| For      the Nine Months Ended September 30, 2008 and 2007                                                                                                                                                                                           |
| (in      thousands, except share data)                                                                                                                                                                                                               |
|                                                                                                                                                                                                                                                 |   |   |   |   |   |   |   | Undistributed |   |   | Accumulated |   |   |   |   |
|                                                                                                                                                                                                                                                 |   |   |   |   |   |   |   | Common      Stock |   |   | Other |   |   |   |   |
|                                                                                                                                                                                                                                                 | Common |   |   | Retained |   |   | Held      by Employee- |   |   | Comprehensive |   |   |   |   |
|                                                                                                                                                                                                                                                 | Stock |   |   | Earnings |   |   | Benefit      Trust |   |   | Income      (Loss) |   |   | Total |   |
|                                                                                                                                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Nine      Months Ended September 30,      2007                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balances      at January 1, 2007                                                                                                                                                                                                                     |   | $ | 249,244 |   |   | $ | 112,779 |   |   |   |   |   | $ | (144 | ) |   | $ | 361,879 |   |
|                                                                                                                                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Issuance      of 371,314 shares of common stock to acquire                                                                                                                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    minority      interest in subsidiaries                                                                                                                                                                                             |   |   | 15,927 |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 15,927 |   |
|                                                                                                                                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Issuance      of 276,842 shares of common stock upon                                                                                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    exercise      of stock options                                                                                                                                                                                                     |   |   | 4,757 |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 4,757 |   |
|                                                                                                                                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Surrender      of 37,392 shares of common stock to facilitate                                                                                                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    exercise      of stock options                                                                                                                                                                                                     |   |   | (1,098 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   | (1,098 | ) |
|                                                                                                                                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Surrender      of 18,814 shares of common stock to facilitate                                                                                                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    vesting      of  restricted stock                                                                                                                                                                                        |   |   | (845 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   | (845 | ) |
|                                                                                                                                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Issuance      of 37,472 unvested shares of restricted common                                                                                                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    stock,      net of related unearned employee compensation                                                                                                                                                                          |   |   | -- |   |   |   |   |   |   |   |   |   |   |   |   |   |   | -- |   |
|                                                                                                                                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Recognition      of compensation expense relating to restricted                                                                                                                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    common      stock and stock options                                                                                                                                                                                                |   |   | 1,290 |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 1,290 |   |
|                                                                                                                                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Tax      benefits from share-based payments                                                                                                                                                                                                          |   |   | 1,671 |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 1,671 |   |
|                                                                                                                                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Issuance      of 24,506 shares to employee stock ownership plan                                                                                                                                                                                      |   |   | 1,132 |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 1,132 |   |
|                                                                                                                                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash      dividends paid ($0.75 per share)                                                                                                                                                                                                           |   |   |   |   |   |   | (12,867 | ) |   |   |   |   |   |   |   |   |   | (12,867 | ) |
|                                                                                                                                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Components      of comprehensive income:                                                                                                                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Net      income                                                                                                                                                                                                                    |   |   |   |   |   |   | 18,543 |   |   |   |   |   |   |   |   |   |   | 18,543 |   |
|    Market      value adjustment for investment securities                                                                                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|       available      for sale (net of income tax effect)                                                                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   | 77 |   |   |   | 77 |   |
|          Comprehensive      income                                                                                                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 18,620 |   |
|                                                                                                                                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     BALANCES      AT SEPTEMBER 30, 2007                                                                                                                                                                                          |   | $ | 272,078 |   |   | $ | 118,455 |   |   |   |   |   | $ | (67 | ) |   | $ | 390,466 |   |
|                                                                                                                                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Nine      Months Ended September 30,      2008                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balances      at January 1, 2008                                                                                                                                                                                                                     |   | $ | 272,208 |   |   | $ | 117,520 |   |   | $ | (586 | ) |   | $ | 3 |   |   | $ | 389,145 |   |
|                                                                                                                                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Issuance      of 109,435 shares of common stock upon                                                                                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    exercise      of stock options                                                                                                                                                                                                     |   |   | 1,960 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 1,960 |   |
|                                                                                                                                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Surrender      of 93,964 shares of common stock to facilitate                                                                                                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    exercise      of stock options                                                                                                                                                                                                     |   |   | (2,090 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (2,090 | ) |
|                                                                                                                                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Surrender      of 14,199 shares of common stock to facilitate                                                                                                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    vesting      of restricted stock                                                                                                                                                                                                   |   |   | (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 |   |
|                                                                                                                                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Tax      benefits from share-based payments                                                                                                                                                                                                          |   |   | 161 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 161 |   |
|                                                                                                                                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Transfer      of 250 shares to employee stock ownership plan                                                                                                                                                                                         |   |   | (2 | ) |   |   |   |   |   |   | 6 |   |   |   |   |   |   |   | 4 |   |
|                                                                                                                                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash      dividends paid ($0.45 per share)                                                                                                                                                                                                           |   |   |   |   |   |   | (7,792 | ) |   |   |   |   |   |   |   |   |   |   | (7,792 | ) |
|                                                                                                                                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Components      of comprehensive loss:                                                                                                                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Net      loss                                                                                                                                                                                                                      |   |   |   |   |   |   | (29,681 | ) |   |   |   |   |   |   |   |   |   |   | (29,681 | ) |
|         Market value adjustment for investment securities                                                                                                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|       available      for sale (net of income tax effect)                                                                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (6 | ) |   |   | (6 | ) |
|          Comprehensive      loss                                                                                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (29,687 | ) |
|                                                                                                                                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     BALANCES      AT SEPTEMBER 30, 2008                                                                                                                                                                                          |   | $ | 273,644 |   |   | $ | 80,047 |   |   | $ | (580 | ) |   | $ | (3 | ) |   | $ | 353,108 |   |
|                                                                                                                                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| See      notes to condensed consolidated financial statements.                                                                                                                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

| CAPITOL      BANCORP LTD.                                                                                                                       |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| Condensed      Consolidated Statements of Cash Flows (Unaudited)                                                                                |   |
| For      the Nine Months Ended September 30, 2008 and 2007                                                                                      |   |
| (in      thousands)                                                                                                                             |   |
|                                                                                                                                            |   |   |   |   |   |   |
|                                                                                                                                            |   | 2008 |   |   | 2007 |   |
|                                                                                                                                            |   |   |   |   |   |   |
| OPERATING      ACTIVITIES                                                                                                                       |   |   |   |   |   |   |
|   Net      income (loss)                                                                                                              |   | $ | (29,681 | ) |   | $ | 18,543 |   |
|   Adjustments      to reconcile net income (loss) to net                                                                              |   |   |   |   |   |   |   |   |
|     cash      provided (used) by operating activities:                                                                      |   |   |   |   |   |   |   |   |
|       Provision      for loan losses                                                                              |   |   | 71,787 |   |   |   | 15,812 |   |
|       Depreciation      of premises and equipment                                                                 |   |   | 8,433 |   |   |   | 6,641 |   |
|       Amortization      of intangibles                                                                            |   |   | 376 |   |   |   | 201 |   |
|       Net      amortization (accretion) of investment security                                                    |   |   |   |   |   |   |   |   |
|  premiums      (discounts)                                                                                                                 |   |   | (1 | ) |   |   | 4 |   |
|       Loss      (gain) on sale of premises and equipment                                                          |   |   | 158 |   |   |   | (118 | ) |
|       Minority      interest in net losses of consolidated subsidiaries                                           |   |   | (17,904 | ) |   |   | (12,132 | ) |
|       Share-based      compensation expense                                                                       |   |   | 1,693 |   |   |   | 1,290 |   |
|   Originations      and purchases of loans held for sale                                                                              |   |   | (170,646 | ) |   |   | (418,857 | ) |
|   Proceeds      from sales of loans held for sale                                                                                     |   |   | 179,731 |   |   |   | 427,470 |   |
|   Increase      in accrued interest income and other assets                                                                           |   |   | (76,153 | ) |   |   | (16,631 | ) |
|        Increase (decrease) in accrued interest expense ondeposits                                                                          |   |   |   |   |   |
|      and      other liabilities                                                                                        |   |   | (5,065 | ) |   |   | 3,783 |   |
|                                                                                                                                            |   |   |   |   |   |   |   |   |
| NET      CASH PROVIDED (USED) BY OPERATING                                                                                                      |   |   |   |   |   |
|                    ACTIVITIES                    |   |   | (37,272 | ) |   |   | 26,006 |   |
|                                                                                                                                            |   |   |   |   |   |   |   |   |
|                                                                                                                                            |   |   |   |   |   |   |   |   |
| INVESTING      ACTIVITIES                                                                                                                       |   |   |   |   |   |   |   |   |
|   Proceeds      from sales of investment securities available for sale                                                                |   |   | 974 |   |   |   | 287 |   |
|        Proceeds from calls, prepayments and maturities of    investment                                                                    |   |   |   |   |   |
|      securities                                                                                                        |   |   | 14,435 |   |   |   | 7,731 |   |
|   Purchases      of investment securities                                                                                             |   |   | (27,171 | ) |   |   | (6,797 | ) |
|   Net      increase in portfolio loans                                                                                                |   |   | (379,897 | ) |   |   | (550,081 | ) |
|   Proceeds      from sales of premises and equipment                                                                                  |   |   | 167 |   |   |   | 396 |   |
|   Purchases      of premises and equipment                                                                                            |   |   | (8,727 | ) |   |   | (10,426 | ) |
|                                                                                                                                            |   |   |   |   |   |   |   |   |
|                 NET      CASH USED BY INVESTING ACTIVITIES      |   |   | (400,219 | ) |   |   | (558,890 | ) |
|                                                                                                                                            |   |   |   |   |   |   |   |   |
|                                                                                                                                            |   |   |   |   |   |   |   |   |
| FINANCING      ACTIVITIES                                                                                                                       |   |   |   |   |   |   |   |   |
|   Net      increase (decrease) in demand deposits, NOW accounts                                                                       |   |   |   |   |   |   |   |   |
|      and      savings accounts                                                                                         |   |   | (79,524 | ) |   |   | 184,655 |   |
|   Net      increase in certificates of deposit                                                                                        |   |   | 518,340 |   |   |   | 230,810 |   |
|   Net      borrowings from debt obligations                                                                                           |   |   | 112,152 |   |   |   | 68,731 |   |
|   Net      proceeds from issuance of subordinated debentures                                                                          |   |   | 11,131 |   |   |   | 55,000 |   |
|   Resources      provided by minority interest                                                                                        |   |   | 22,410 |   |   |   | 36,115 |   |
|   Net      proceeds from issuance of common stock                                                                                     |   |   | 1,960 |   |   |   | 4,757 |   |
|   Surrender      of common stock to facilitate exercise of                                                                            |   |   |   |   |   |   |   |   |
|      stock      options                                                                                                |   |   | (2,090 | ) |   |   | (1,098 | ) |
|   Surrender      of common stock to facilitate vesting of                                                                             |   |   |   |   |   |   |   |   |
|      restricted      stock                                                                                             |   |   | (286 | ) |   |   | (845 | ) |
|   Tax      benefit from share-based payments                                                                                          |   |   | 161 |   |   |   | 1,671 |   |
|   Cash      dividends paid                                                                                                            |   |   | (7,792 | ) |   |   | (12,867 | ) |
|                                                                                                                                            |   |   |   |   |   |   |   |   |
|                 NET      CASH PROVIDED BY FINANCING ACTIVITIES  |   |   | 576,462 |   |   |   | 566,929 |   |
|                                                                                                                                            |   |   |   |   |   |   |   |   |
|                 INCREASE      IN CASH AND CASH EQUIVALENTS      |   |   | 138,971 |   |   |   | 34,045 |   |
|                                                                                                                                            |   |   |   |   |   |   |   |   |
| Cash      and cash equivalents at beginning of period                                                                                           |   |   | 352,372 |   |   |   | 348,870 |   |
|                                                                                                                                            |   |   |   |   |   |   |   |   |
|                                                                                                                                            |   |   |   |   |   |   |   |   |
|                 CASH      AND CASH EQUIVALENTS AT END OF PERIOD |   | $ | 491,343 |   |   | $ | 382,915 |   |
|                                                                                                                                            |   |   |   |   |   |   |   |   |
|                                                                                                                                            |   |   |   |   |   |   |   |   |
| See      notes to condensed consolidated financial statements.                                                                                  |   |   |   |   |   |   |   |   |

----

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

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

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

----

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

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

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

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

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

|   | Mortgage loans held for      sale:  Mortgage loans held for sale are carried at the      lower of cost or fair value and are measured on a nonrecurring      basis.  Mortgage loansheld      for sale written down to fair value are included in the table below (none      at September 30, 2008).  Fair value is based on independent      quoted market prices, whereapplicable,      or the prices for other mortgage whole loans with similar      characteristics. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

|                               |   |   Total |   |   | Quoted      Prices inActive      Markets forIdentical      Assets(Level      1) |   |   | SignificantOtherObservable      Inputs(Level      2) |   |
|------------------------------------|--------|-------------------|--------|--------|---------------------------------------------------------------------------------|--------|--------|------------------------------------------------------|--------|
|                               |   |              |   |   |                                                                            |   |   |                                                 |   |
| Securities      available for sale |   | $                 | 18,085 |   |                                                                            | $      | 17,306 |                                                 |   | $ | 779 |   |

|                    |   |   Total |   |   | SignificantOtherObservable      Inputs(Level      2) |   |   |  Total      Gains(Losses) |   |
|-------------------------|--------|-------------------|--------|--------|------------------------------------------------------|--------|--------|--------------------------------|--------|
|                    |   |              |   |   |                                                 |   |   |                           |   |
| Impaired      loans (1) |   | $                 | 98,916 |   |                                                 | $      | 98,916 |                           |   | $ | (7,574 | ) |

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

----

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

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

|                             |   | Number      ofStock      OptionsOutstanding |          |   | ExercisePriceRange |   |                                              | WeightedAverageExercisePrice |
|----------------------------------|--------|---------------------------------------------|---------------|--------|--------------------|--------|---------------------------------------------------|------------------------------|
|                             |   |                                        |          |   |               |   |                                              |                         |
| Outstanding      at January 1    |   |                                        | 2,460,082     |   |               | $      | 13.50       to $  46.20            |                         |   | $ | 27.85 |
| Granted                          |   |                                        | 52,360        |   |               |   | 20.12       to     20.12 |                         |   |   | 20.12 |
| Exercised                        |   |                                        | (108,935      | )      |               |   | 15.52       to     20.90 |                         |   |   | 17.94 |
| Cancelled      or expired        |   |                                        |  (14,413 | )      |               |   |                                              |                         |   |   |   |
|                             |   |                                        |          |   |               |   |                                              |                         |   |   |   |
| Outstanding      at September 30 |   |                                        | 2,389,094     |   |               | $      | 13.50       to $  46.20            |                         |   | $ | 28.20 |

|                     |                     |              |      | Weighted      Average |   |                     |
|--------------------------|--------------------------|-------------------|-----------|-----------------------|--------|--------------------------|
| Exercise      PriceRange |                     | NumberOutstanding |      | ExercisePrice         |   | RemainingContractualLife |   | AggregateIntrinsicValue |
|                     |                     |              |      |                  |   |                     |   |   |
| $                        | 10.00 to 14.99 |              |      | 2,866                 |   | $                        | 13.50 |   |      0.25      years |   | $ | 17,167 |
| $                        | 15.00 to 19.99 |              |      | 153,235               |   |                     | 16.66 |   |      1.78      years |   |   | 433,655 |
| $                        | 20.00 to 24.99 |              |      | 584,956               |   |                     | 21.67 |   |      3.04      years |   |   | 0 |
| $                        | 25.00 to 29.99 |              |      | 585,415               |   |                     | 27.09 |   |      1.90      years |   |   | 0 |
| $                        | 30.00 to 34.99 |              |      | 695,115               |   |                     | 32.10 |   |      2.94      years |   |   | 0 |
| $                   | 35.00 or more  |              |      |  367,507         |   |                     | 37.92 |   |      4.17      years |   |   | 0 |
|                     |                     |              |      |                  |   |                     |   |   |   |   |   |   |
| Total      outstanding   |                     |              | 2,389,094 |                  |   |                     |   |   |   | $ | 450,822 |

----

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

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

|                                                                                                                                            |   | Three      Month Period |                       |   | Nine      Month Period |
|-------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------|----------------------------|--------|------------------------|
|                                                                                                                                            |   | 2008                    |                       |   | 2007                   |   |   | 2008 |   |   | 2007 |
|                                                                                                                                            |   |                    |                       |   |                   |   |   |   |   |   |   |
| Numerator—net      income (loss) for the period                                                                                           |   | $                       | (32,495                    | )      |                   | $ | 5,974 |   |   | $ | (29,681 | ) |   | $ | 18,543 |
|                                                                                                                                            |   |                    |                       |   |                   |   |   |   |   |   |   |   |   |   |   |
| Denominator:                                                                                                                                    |   |                    |                       |   |                   |   |   |   |   |   |   |   |   |   |   |
| Weighted      average number of sharesoutstanding,      excluding unvestedrestricted      shares (denominator for basicearnings      per share) |   |                    |      17,145 |   |                   |   |      17,096 |   |   |   |      17,144 |   |   |   |      16,919 |
|                                                                                                                                            |   |                    |                       |   |                   |   |   |   |   |   |   |   |   |   |   |
| Effect      of dilutive securities:                                                                                                             |   |                    |                       |   |                   |   |   |   |   |   |   |   |   |   |   |
| Unvested      restricted shares                                                                                                                 |   |                    | --                         |   |                   |   | -- |   |   |   | -- |   |   |   | 11 |
| Stock      options                                                                                                                              |   |                    | --                         |   |                   |   | 102 |   |   |   | -- |   |   |   | 266 |
| Total      effect of dilutive securities                                                                                                        |   |                    | --                         |   |                   |   | 102 |   |   |   | -- |   |   |   | 277 |
|                                                                                                                                            |   |                    |                       |   |                   |   |   |   |   |   |   |   |   |   |   |
| Denominator      for diluted earnings per share—                                                                                          |   |                    |                       |   |                   |   |   |   |   |   |   |   |   |   |   |
| Weighted      average number of shares andpotential      dilution                                                                               |   |                    |  17,145               |   |                   |   |  17,198 |   |   |   |  17,144 |   |   |   |  17,196 |
|                                                                                                                                            |   |                    |                       |   |                   |   |   |   |   |   |   |   |   |   |   |
| Number      of antidilutive stock options excludedfrom      diluted earnings per share computation                                              |   |                    |  2,389                |   |                   |   |  1,650 |   |   |   |  2,389 |   |   |   |  368 |

----

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

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

----

|                                   |   | Total      Assets       |
|----------------------------------------|--------|-------------------------|
|                                   |   | September      30, 2008 |   |   | December      31, 2007 |
| Arizona      Region:                   |   |                    |   |   |   |
| Arrowhead      Community Bank          |   | $                       | 84,613 |   |   | $ | 89,060 |
| Asian      Bank of Arizona             |   |                    | 37,040 |   |   |   | 25,017 |
| Bank      of Tucson                    |   |                    | 176,684 |   |   |   | 187,468 |
| Camelback      Community Bank          |   |                    | 97,816 |   |   |   | 84,671 |
| Colonia      Bank(3)                   |   |                    | 9,268 |   |   |   |   |
| Mesa      Bank                         |   |                    | 226,343 |   |   |   | 217,861 |
| Southern      Arizona Community Bank   |   |                    | 90,419 |   |   |   | 85,158 |
| Sunrise      Bank of Albuquerque       |   |                    | 78,857 |   |   |   | 71,726 |
| Sunrise      Bank of Arizona           |   |                    | 120,671 |   |   |   | 116,245 |
| Valley      First Community Bank       |   |                    | 72,371 |   |   |   | 77,306 |
| Yuma      Community Bank               |   |                    | 74,458 |   |   |   | 78,489 |
| Arizona      Region Total              |   |                    | 1,068,540 |   |   |   | 1,033,001 |
|                                   |   |                    |   |   |   |   |   |
| California      Region:                |   |                    |   |   |   |   |   |
| Bank      of Escondido                 |   |                    | 99,031 |   |   |   | 89,557 |
| Bank      of Feather River             |   |                    | 24,509 |   |   |   | 17,283 |
| Bank      of San Francisco             |   |                    | 59,887 |   |   |   | 68,902 |
| Bank      of Santa Barbara             |   |                    | 66,253 |   |   |   | 58,738 |
| Napa      Community Bank               |   |                    | 144,472 |   |   |   | 131,457 |
| Point      Loma Community Bank         |   |                    | 62,231 |   |   |   | 56,428 |
| Sunrise      Bank of San Diego         |   |                    | 87,344 |   |   |   | 81,905 |
| Sunrise      Community Bank            |   |                    | 34,245 |   |   |   | 21,113 |
| California      Region Total           |   |                    | 577,972 |   |   |   | 525,383 |
|                                   |   |                    |   |   |   |   |   |
| Colorado      Region:                  |   |                    |   |   |   |   |   |
| Fort      Collins Commerce Bank        |   |                    | 75,501 |   |   |   | 61,083 |
| Larimer      Bank of Commerce          |   |                    | 79,613 |   |   |   | 51,906 |
| Loveland      Bank of Commerce         |   |                    | 31,994 |   |   |   | 15,941 |
| Mountain      View Bank of Commerce(2) |   |                    | 30,339 |   |   |   |   |
| Colorado      Region Total             |   |                    | 217,447 |   |   |   | 128,930 |
|                                   |   |                    |   |   |   |   |   |
| Great      Lakes Region:               |   |                    |   |   |   |   |   |
| Ann      Arbor Commerce Bank           |   |                    | 366,383 |   |   |   | 362,429 |
| Bank      of Auburn Hills              |   |                    | 45,127 |   |   |   | 44,767 |
| Bank      of Maumee                    |   |                    | 55,059 |   |   |   | 35,576 |
| Bank      of Michigan                  |   |                    | 73,297 |   |   |   | 69,909 |
| Brighton      Commerce Bank            |   |                    | 119,393 |   |   |   | 108,664 |
| Capitol      National Bank             |   |                    | 226,243 |   |   |   | 228,556 |
| Detroit      Commerce Bank             |   |                    | 102,734 |   |   |   | 113,243 |
| Elkhart      Community Bank            |   |                    | 96,661 |   |   |   | 89,064 |
| Evansville      Commerce Bank          |   |                    | 66,625 |   |   |   | 50,819 |
| Goshen      Community Bank             |   |                    | 79,552 |   |   |   | 93,173 |
| Grand      Haven Bank                  |   |                    | 118,443 |   |   |   | 130,492 |
| Kent      Commerce Bank                |   |                    | 83,712 |   |   |   | 87,060 |
| Macomb      Community Bank             |   |                    | 94,020 |   |   |   | 93,045 |
| Muskegon      Commerce Bank            |   |                    | 87,468 |   |   |   | 98,975 |
| Oakland      Commerce Bank             |   |                    | 96,217 |   |   |   | 109,370 |
| Ohio      Commerce Bank                |   |                    | 55,076 |   |   |   | 35,690 |
| Paragon      Bank & Trust          |   |                    | 102,352 |   |   |   | 103,711 |
| Portage      Commerce Bank             |   |                    | 222,579 |   |   |   | 189,944 |
| Great      Lakes Region Total          |   |                    | 2,090,941 |   |   |   | 2,044,487 |
|                                   |   |                    |   |   |   |   |   |
| Midwest      Region:                   |   |                    |   |   |   |   |   |
| Adams      Dairy Bank(1)               |   |                    | 29,556 |   |   |   |   |
| Bank      of Belleville                |   |                    | 68,472 |   |   |   | 50,485 |
| Community      Bank of Lincoln         |   |                    | 42,362 |   |   |   | 12,960 |
| Summit      Bank of Kansas City        |   |                    | 51,412 |   |   |   | 50,142 |
| Midwest      Region Total              |   |                    | 191,802 |   |   |   | 113,587 |

----

|                               |   | Total      Assets       |
|------------------------------------|--------|-------------------------|
|                               |   | September      30, 2008 |   |   |  December      31, 2007 |
| Nevada      Region:                |   |                    |   |   |   |
| 1st      Commerce Bank             |   | $                       | 39,120 |   |   | $ | 32,091 |
| Bank      of Las Vegas             |   |                    | 71,776 |   |   |   | 72,768 |
| Black      Mountain Community Bank |   |                    | 152,579 |   |   |   | 147,433 |
| Desert      Community Bank         |   |                    | 104,384 |   |   |   | 101,840 |
| Red      Rock Community Bank       |   |                    | 126,733 |   |   |   | 120,750 |
| Nevada      Region Total           |   |                    | 494,592 |   |   |   | 474,882 |
|                               |   |                    |   |   |   |   |   |
| Northeast      Region:             |   |                    |   |   |   |   |   |
| USNY      Bank                     |   |                    | 43,851 |   |   |   | 17,171 |
|                               |   |                    |   |   |   |   |   |
| Northwest      Region:             |   |                    |   |   |   |   |   |
| Bank      of Bellevue              |   |                    | 53,723 |   |   |   | 45,122 |
| Bank      of Everett               |   |                    | 39,412 |   |   |   | 28,946 |
| Bank      of Tacoma                |   |                    | 39,711 |   |   |   | 24,325 |
| High      Desert Bank              |   |                    | 33,632 |   |   |   | 11,501 |
| Issaquah      Community Bank       |   |                    | 23,568 |   |   |   | 13,696 |
| Northwest      Region Total        |   |                    | 190,046 |   |   |   | 123,590 |
|                               |   |                    |   |   |   |   |   |
| Southeast      Region:             |   |                    |   |   |   |   |   |
| Bank      of Valdosta              |   |                    | 58,679 |   |   |   | 43,842 |
| Community      Bank of Rowan       |   |                    | 146,276 |   |   |   | 117,495 |
| First      Carolina State Bank     |   |                    | 111,151 |   |   |   | 115,243 |
| Peoples      State Bank            |   |                    | 29,130 |   |   |   | 26,159 |
| Pisgah      Community Bank(4)      |   |                    | 28,728 |   |   |   |   |
| Sunrise      Bank of Atlanta       |   |                    | 63,980 |   |   |   | 48,664 |
| Southeast      Region Total        |   |                    | 437,944 |   |   |   | 351,403 |
|                               |   |                    |   |   |   |   |   |
| Texas      Region:                 |   |                    |   |   |   |   |   |
| Bank      of Fort Bend             |   |                    | 24,067 |   |   |   | 9,551 |
| Bank      of Las Colinas           |   |                    | 32,389 |   |   |   | 11,383 |
| Texas      Region Total            |   |                    | 56,456 |   |   |   | 20,934 |
|                               |   |                    |   |   |   |   |   |
| Parent      company and other, net |   |                    | 57,756 |   |   |   | 68,395 |
|                               |   |                    |   |   |   |   |   |
| Consolidated      Totals           |   | $                       | 5,427,347 |   |   | $ | 4,901,763 |

| (1) | Commenced      operations in January 2008 and is 51%-owned by Capitol Development      BancorpLimited      V, a controlled subsidiary of Capitol.    |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------|
| (2) | Commenced      operations in February 2008 and is 51%-owned by Capitol Development      BancorpLimited      VII, a controlled subsidiary of Capitol. |
| (3) | Commenced      operations in April 2008 and is 51%-owned by Capitol Development      BancorpLimited      VII, a controlled subsidiary of Capitol.    |
| (4) | Commenced      operations in May 2008 and is 51%-owned by Capitol Development      BancorpLimited      VII, a controlled subsidiary ofCapitol.       |

----

|                                                                                  |   | Periods      Ended September 30 |      |
|---------------------------------------------------------------------------------------|--------|---------------------------------|-----------|
|                                                                                  |   | Three      Month Period         |      |   | Nine      Month Period |   |
|                                                                                  |   | 2008                            |      |   | 2007 |   |   | 2008 |   |   | 2007 |   |
| Allowance      for loan losses at beginning of period                                 |   | $                               | 63,904    |   |   | $ | 49,349 |   |   | $ | 58,124 |   |   | $ | 45,414 |   |
|                                                                                  |   |                            |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans      charged-off:                                                               |   |                            |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans      secured by real estate:                                                    |   |                            |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial                                                                            |   |                            | (2,186    | ) |   |   | (843 | ) |   |   | (5,630 | ) |   |   | (1,139 | ) |
| Residential      (including multi-family)                                             |   |                            | (2,428    | ) |   |   | (1,496 | ) |   |   | (5,590 | ) |   |   | (2,189 | ) |
| Construction,      land development and other land                                    |   |                            | (12,128   | ) |   |   | (329 | ) |   |   | (15,248 | ) |   |   | (645 | ) |
| Total      loans secured by real estate                                               |   |                            | (16,742   | ) |   |   | (2,668 | ) |   |   | (26,468 | ) |   |   | (3,973 | ) |
| Commercial      and other business-purpose loans                                      |   |                            | (3,753    | ) |   |   | (1,849 | ) |   |   | (8,051 | ) |   |   | (5,038 | ) |
| Consumer                                                                              |   |                            | (73       | ) |   |   | (105 | ) |   |   | (262 | ) |   |   | (316 | ) |
| Other                                                                                 |   |                            |      |   |   |   |   |   |   |   | (34 | ) |   |   |   |   |
| Total      charge-offs                                                                |   |                            | (20,568   | ) |   |   | (4,622 | ) |   |   | (34,815 | ) |   |   | (9,327 | ) |
| Recoveries:                                                                           |   |                            |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans      secured by real estate:                                                    |   |                            |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial                                                                            |   |                            | 181       |   |   |   | 2 |   |   |   | 899 |   |   |   | 68 |   |
| Residential      (including multi-family)                                             |   |                            | 130       |   |   |   | 35 |   |   |   | 590 |   |   |   | 163 |   |
| Construction,      land development and other land                                    |   |                            | 17        |   |   |   | 2 |   |   |   | 240 |   |   |   | 16 |   |
| Total      loans secured by real estate                                               |   |                            | 328       |   |   |   | 39 |   |   |   | 1,729 |   |   |   | 247 |   |
| Commercial      and other business-purpose loans                                      |   |                            | 102       |   |   |   | 119 |   |   |   | 686 |   |   |   | 550 |   |
| Consumer                                                                              |   |                            | 9         |   |   |   | 76 |   |   |   | 74 |   |   |   | 148 |   |
| Other                                                                                 |   |                            |      |   |   |   |   |   |   |   |   |   |   |   | 7 |   |
| Total      recoveries                                                                 |   |                            | 439       |   |   |   | 234 |   |   |   | 2,489 |   |   |   | 952 |   |
| Net      charge-offs                                                                  |   |                            | (20,129   | ) |   |   | (4,388 | ) |   |   | (32,326 | ) |   |   | (8,375 | ) |
| Additions      to allowance charged to expense                                        |   |                            | 53,810    |   |   |   | 7,890 |   |   |   | 71,787 |   |   |   | 15,812 |   |
|                                                                                  |   |                            |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Allowance      for loan losses at September 30                                        |   | $                               | 97,585    |   |   | $ | 52,851 |   |   | $ | 97,585 |   |   | $ | 52,851 |   |
|                                                                                  |   |                            |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Average      total portfolio loans for the period                                     |   | $                               | 4,617,153 |   |   | $ | 3,908,625 |   |   | $ | 4,521,165 |   |   | $ | 3,726,654 |   |
|                                                                                  |   |                            |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Ratio      of net charge-offs (annualized) to average portfolioloans      outstanding |   |                            | 1.74      | % |   |   | 0.45 | % |   |   | 0.95 | % |   |   | 0.30 | % |

----

|                                                   |   | September      30, 2008 |         |   | December      31, 2007                |   |
|--------------------------------------------------------|--------|-------------------------|--------------|--------|---------------------------------------|--------|
|                                                   |   |   Amount      |         |   | Percentageof      TotalPortfolioLoans |   |   |   Amount |   |   | Percentageof      TotalPortfolioLoans |   |
|                                                   |
|                                                   |
|                                                   |
|                                                   |   |                    |         |   |                                  |   |   |   |   |   |   |   |
| Loans      secured by real estate:                     |   |                    |         |   |                                  |   |   |   |   |   |   |   |
| Commercial                                             |   | $                       | 32,992       |   |                                  |   | 0.71 | % |   | $ | 21,918 |   |   |   | 0.51 | % |
| Residential      (including multi-family)              |   |                    | 22,083       |   |                                  |   | 0.47 | % |   |   | 10,235 |   |   |   | 0.24 | % |
| Construction,      land development andother      land |   |                    |  17,553 |   |                                  |   | 0.38 | % |   |   |  11,278 |   |   |   | 0.26 | % |
| Total      loans secured by real estate                |   |                    | 72,628       |   |                                  |   | 1.56 | % |   |   | 43,431 |   |   |   | 1.01 | % |
| Commercial      and other business-purpose loans       |   |                    | 23,594       |   |                                  |   | 0.50 | % |   |   | 13,727 |   |   |   | 0.32 | % |
| Consumer                                               |   |                    | 1,056        |   |                                  |   | 0.02 | % |   |   | 667 |   |   |   | 0.01 | % |
| Other                                                  |   |                    | 307          |   |                                  |   | 0.01 | % |   |   | 299 |   |   |   | 0.01 | % |
|                                                   |   |                    |         |   |                                  |   |   |   |   |   |   |   |   |   |   |   |
| Total      allowance for loan losses                   |   | $                       | 97,585       |   |                                  |   | 2.09 | % |   | $ | 58,124 |   |   |   | 1.35 | % |

----

|                                                          |   | September      30,2008 |         |   | December      31,2007 |
|---------------------------------------------------------------|--------|------------------------|--------------|--------|-----------------------|
| Nonaccrual      loans:                                        |   |                   |         |   |                  |
| Loans      secured by real estate:                            |   |                   |         |   |                  |
| Commercial                                                    |   | $                      | 26,954       |   |                  | $ | 19,016 |
| Residential      (including multi-family)                     |   |                   | 27,543       |   |                  |   | 13,381 |
| Construction,      land development and other land            |   |                   | 57,864       |   |                  |   | 29,756 |
| Total      loans secured by real estate                       |   |                   | 112,361      |   |                  |   | 62,153 |
| Commercial      and other business-purpose loans              |   |                   | 10,144       |   |                  |   | 5,782 |
| Consumer                                                      |   |                   | 296          |   |                  |   | 66 |
| Other                                                         |   |                   | 17           |   |                  |   | 84 |
| Total      nonaccrual loans                                   |   |                   | 122,818      |   |                  |   | 68,085 |
|                                                          |   |                   |         |   |                  |   |   |
| Past      due (>90 days)      loans and accruing interest: |   |                   |         |   |                  |   |   |
| Loans      secured by real estate:                            |   |                   |         |   |                  |   |   |
| Commercial                                                    |   |                   | 1,434        |   |                  |   | 113 |
| Residential      (including multi-family)                     |   |                   | 931          |   |                  |   | 1,116 |
| Construction,      land development and other land            |   |                   | 211          |   |                  |   | 2,531 |
| Total      loans secured by real estate                       |   |                   | 2,576        |   |                  |   | 3,760 |
| Commercial      and other business-purpose loans              |   |                   | 1,560        |   |                  |   | 714 |
| Consumer                                                      |   |                   | 144          |   |                  |   | 66 |
| Other                                                         |   |                   | --           |   |                  |   | 5 |
| Total      past due loans                                     |   |                   | 4,280        |   |                  |   | 4,545 |
|                                                          |   |                   |         |   |                  |   |   |
| Total      nonperforming loans                                |   | $                      | 127,098      |   |                  | $ | 72,630 |
|                                                          |   |                   |         |   |                  |   |   |
| Real      estate owned and otherrepossessed      assets       |   |                   |  59,090 |   |                  |   |  16,680 |
|                                                          |   |                   |         |   |                  |   |   |
| Total      nonperforming assets                               |   | $                      | 186,188      |   |                  | $ | 89,310 |

----

----

|                                   |   |                       |      |   | Allowance      for |   |      |                     |   |   | Allowance      as a Percentage |   |
|----------------------------------------|--------|----------------------------|-----------|--------|--------------------|--------|-----------|--------------------------|--------|--------|--------------------------------|--------|
|                                   |   | Total      Portfolio Loans |      |   | Loan      Losses   |   |      | Nonperforming      Loans |   |   | of      Total Portfolio Loans  |   |
|                                   |   | Sept      30,2008          |      |   | Dec      31,2007   |   |      | Sept      30,2008        |   |   | Dec      31,2007               |   |   | Sept      30,2008 |   |   | Dec      31,2007 |   |   | Sept      30,2008 |   |   | Dec      31,2007 |   |
| Arizona      Region:                   |   |                       |      |   |               |   |      |                     |   |   |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Arrowhead      Community Bank          |   | $                          | 76,404    |   |               | $      | 81,836    |                     |   | $      | 1,505                          |   |   | $ | 818 |   |   | $ | 2,686 |   |   | $ | 361 |   |   |   | 1.97 | % |   |   | 1.00 | % |
| Asian      Bank of Arizona             |   |                       | 32,396    |   |               |   | 21,514    |                     |   |   | 720                            |   |   |   | 405 |   |   |   | 689 |   |   |   | 314 |   |   |   | 2.22 | % |   |   | 1.88 | % |
| Bank      of Tucson                    |   |                       | 155,899   |   |               |   | 168,427   |                     |   |   | 1,350                          |   |   |   | 1,385 |   |   |   | 2,993 |   |   |   | 752 |   |   |   | 0.87 | % |   |   | 0.82 | % |
| Camelback      Community Bank          |   |                       | 83,344    |   |               |   | 79,869    |                     |   |   | 660                            |   |   |   | 800 |   |   |   | 92 |   |   |   | 451 |   |   |   | 0.79 | % |   |   | 1.00 | % |
| Colonia      Bank(3)                   |   |                       | 5,291     |   |               |   |      |                     |   |   | 79                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 1.49 | % |   |   |   |   |
| Mesa      Bank                         |   |                       | 156,197   |   |               |   | 202,511   |                     |   |   | 2,834                          |   |   |   | 1,760 |   |   |   | 19,736 |   |   |   | 3,699 |   |   |   | 1.81 | % |   |   | 0.87 | % |
| Southern      Arizona Community Bank   |   |                       | 81,186    |   |               |   | 78,467    |                     |   |   | 751                            |   |   |   | 792 |   |   |   |   |   |   |   | 600 |   |   |   | 0.93 | % |   |   | 1.01 | % |
| Sunrise      Bank of Albuquerque       |   |                       | 71,880    |   |               |   | 67,192    |                     |   |   | 826                            |   |   |   | 866 |   |   |   | 237 |   |   |   | 183 |   |   |   | 1.15 | % |   |   | 1.29 | % |
| Sunrise      Bank of Arizona           |   |                       | 111,156   |   |               |   | 112,211   |                     |   |   | 1,075                          |   |   |   | 1,125 |   |   |   | 1,933 |   |   |   | 4,250 |   |   |   | 0.97 | % |   |   | 1.00 | % |
| Valley      First Community Bank       |   |                       | 63,427    |   |               |   | 71,689    |                     |   |   | 1,002                          |   |   |   | 653 |   |   |   | 1,490 |   |   |   |   |   |   |   | 1.58 | % |   |   | 0.91 | % |
| Yuma      Community Bank               |   |                       | 63,482    |   |               |   | 66,092    |                     |   |   | 650                            |   |   |   | 525 |   |   |   | 582 |   |   |   | 600 |   |   |   | 1.02 | % |   |   | 0.79 | % |
| Arizona      Region Total              |   |                       | 900,662   |   |               |   | 949,808   |                     |   |   | 11,452                         |   |   |   | 9,129 |   |   |   | 30,438 |   |   |   | 11,210 |   |   |   | 1.27 | % |   |   | 0.96 | % |
|                                   |   |                       |      |   |               |   |      |                     |   |   |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| California      Region:                |   |                       |      |   |               |   |      |                     |   |   |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Bank      of Escondido                 |   |                       | 61,054    |   |               |   | 54,707    |                     |   |   | 648                            |   |   |   | 560 |   |   |   | 848 |   |   |   | 311 |   |   |   | 1.06 | % |   |   | 1.02 | % |
| Bank      of Feather River             |   |                       | 20,769    |   |               |   | 13,345    |                     |   |   | 291                            |   |   |   | 187 |   |   |   |   |   |   |   |   |   |   |   | 1.40 | % |   |   | 1.40 | % |
| Bank      of San Francisco             |   |                       | 54,490    |   |               |   | 44,989    |                     |   |   | 780                            |   |   |   | 695 |   |   |   | 339 |   |   |   | 392 |   |   |   | 1.43 | % |   |   | 1.54 | % |
| Bank      of Santa Barbara             |   |                       | 59,812    |   |               |   | 52,340    |                     |   |   | 1,042                          |   |   |   | 741 |   |   |   | 1,306 |   |   |   |   |   |   |   | 1.74 | % |   |   | 1.42 | % |
| Napa      Community Bank               |   |                       | 126,096   |   |               |   | 100,253   |                     |   |   | 1,750                          |   |   |   | 1,069 |   |   |   |   |   |   |   | 1,459 |   |   |   | 1.39 | % |   |   | 1.07 | % |
| Point      Loma Community Bank         |   |                       | 50,663    |   |               |   | 49,607    |                     |   |   | 750                            |   |   |   | 695 |   |   |   | 795 |   |   |   |   |   |   |   | 1.48 | % |   |   | 1.40 | % |
| Sunrise      Bank of San Diego         |   |                       | 74,092    |   |               |   | 74,526    |                     |   |   | 932                            |   |   |   | 908 |   |   |   | 1,497 |   |   |   | 2,386 |   |   |   | 1.26 | % |   |   | 1.22 | % |
| Sunrise      Community Bank            |   |                       | 25,594    |   |               |   | 17,624    |                     |   |   | 385                            |   |   |   | 255 |   |   |   |   |   |   |   |   |   |   |   | 1.50 | % |   |   | 1.45 | % |
| California      Region Total           |   |                       | 472,570   |   |               |   | 407,391   |                     |   |   | 6,578                          |   |   |   | 5,110 |   |   |   | 4,785 |   |   |   | 4,548 |   |   |   | 1.39 | % |   |   | 1.25 | % |
|                                   |   |                       |      |   |               |   |      |                     |   |   |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Colorado      Region:                  |   |                       |      |   |               |   |      |                     |   |   |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Fort      Collins Commerce Bank        |   |                       | 67,908    |   |               |   | 59,388    |                     |   |   | 947                            |   |   |   | 889 |   |   |   | 48 |   |   |   |   |   |   |   | 1.39 | % |   |   | 1.50 | % |
| Larimer      Bank of Commerce          |   |                       | 72,824    |   |               |   | 50,927    |                     |   |   | 1,065                          |   |   |   | 765 |   |   |   |   |   |   |   |   |   |   |   | 1.46 | % |   |   | 1.50 | % |
| Loveland      Bank of Commerce         |   |                       | 26,089    |   |               |   | 15,253    |                     |   |   | 627                            |   |   |   | 229 |   |   |   | 1,266 |   |   |   |   |   |   |   | 2.40 | % |   |   | 1.50 | % |
| Mountain      View Bank of Commerce(2) |   |                       | 24,632    |   |               |   |      |                     |   |   | 358                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 1.45 | % |   |   |   |   |
| Colorado      Region Total             |   |                       | 191,453   |   |               |   | 125,568   |                     |   |   | 2,997                          |   |   |   | 1,883 |   |   |   | 1,314 |   |   |   |   |   |   |   | 1.57 | % |   |   | 1.50 | % |
|                                   |   |                       |      |   |               |   |      |                     |   |   |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Great      Lakes Region:               |   |                       |      |   |               |   |      |                     |   |   |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Ann      Arbor Commerce Bank           |   |                       | 328,154   |   |               |   | 332,624   |                     |   |   | 4,113                          |   |   |   | 4,504 |   |   |   | 3,473 |   |   |   | 5,161 |   |   |   | 1.25 | % |   |   | 1.35 | % |
| Bank      of Auburn Hills              |   |                       | 40,509    |   |               |   | 36,586    |                     |   |   | 933                            |   |   |   | 820 |   |   |   | 2,818 |   |   |   | 1,293 |   |   |   | 2.30 | % |   |   | 2.24 | % |
| Bank      of Maumee                    |   |                       | 46,747    |   |               |   | 32,102    |                     |   |   | 738                            |   |   |   | 482 |   |   |   | 75 |   |   |   |   |   |   |   | 1.58 | % |   |   | 1.50 | % |
| Bank      of Michigan                  |   |                       | 66,650    |   |               |   | 63,448    |                     |   |   | 988                            |   |   |   | 952 |   |   |   |   |   |   |   | 370 |   |   |   | 1.48 | % |   |   | 1.50 | % |
| Brighton      Commerce Bank            |   |                       | 100,026   |   |               |   | 99,627    |                     |   |   | 1,250                          |   |   |   | 1,018 |   |   |   | 1,277 |   |   |   | 18 |   |   |   | 1.25 | % |   |   | 1.02 | % |
| Capitol      National Bank             |   |                       | 212,419   |   |               |   | 206,449   |                     |   |   | 6,231                          |   |   |   | 3,421 |   |   |   | 9,269 |   |   |   | 3,449 |   |   |   | 2.93 | % |   |   | 1.66 | % |
| Detroit      Commerce Bank             |   |                       | 97,481    |   |               |   | 108,992   |                     |   |   | 1,683                          |   |   |   | 1,355 |   |   |   | 4,204 |   |   |   | 3,948 |   |   |   | 1.73 | % |   |   | 1.24 | % |
| Elkhart      Community Bank            |   |                       | 90,410    |   |               |   | 83,754    |                     |   |   | 1,888                          |   |   |   | 1,282 |   |   |   | 4,043 |   |   |   | 2,677 |   |   |   | 2.09 | % |   |   | 1.53 | % |
| Evansville      Commerce Bank          |   |                       | 58,493    |   |               |   | 48,113    |                     |   |   | 883                            |   |   |   | 720 |   |   |   | 276 |   |   |   | 80 |   |   |   | 1.51 | % |   |   | 1.50 | % |
| Goshen      Community Bank             |   |                       | 74,779    |   |               |   | 70,799    |                     |   |   | 1,215                          |   |   |   | 874 |   |   |   | 148 |   |   |   | 491 |   |   |   | 1.62 | % |   |   | 1.23 | % |
| Grand      Haven Bank                  |   |                       | 106,493   |   |               |   | 122,208   |                     |   |   | 3,346                          |   |   |   | 2,644 |   |   |   | 5,675 |   |   |   | 6,970 |   |   |   | 3.14 | % |   |   | 2.16 | % |
| Kent      Commerce Bank                |   |                       | 74,972    |   |               |   | 83,357    |                     |   |   | 2,042                          |   |   |   | 1,527 |   |   |   | 1,778 |   |   |   | 2,456 |   |   |   | 2.72 | % |   |   | 1.83 | % |
| Macomb      Community Bank             |   |                       | 87,183    |   |               |   | 87,670    |                     |   |   | 3,992                          |   |   |   | 2,283 |   |   |   | 11,406 |   |   |   | 11,846 |   |   |   | 4.58 | % |   |   | 2.60 | % |
| Muskegon      Commerce Bank            |   |                       | 77,276    |   |               |   | 90,031    |                     |   |   | 2,353                          |   |   |   | 1,762 |   |   |   | 4,295 |   |   |   | 2,362 |   |   |   | 3.04 | % |   |   | 1.96 | % |
| Oakland      Commerce Bank             |   |                       | 84,293    |   |               |   | 99,770    |                     |   |   | 2,561                          |   |   |   | 1,816 |   |   |   | 14,956 |   |   |   | 3,803 |   |   |   | 3.04 | % |   |   | 1.82 | % |
| Ohio      Commerce Bank                |   |                       | 44,883    |   |               |   | 29,110    |                     |   |   | 673                            |   |   |   | 437 |   |   |   |   |   |   |   |   |   |   |   | 1.50 | % |   |   | 1.50 | % |
| Paragon      Bank & Trust          |   |                       | 90,133    |   |               |   | 91,481    |                     |   |   | 2,067                          |   |   |   | 1,431 |   |   |   | 4,910 |   |   |   | 2,220 |   |   |   | 2.29 | % |   |   | 1.56 | % |
| Portage      Commerce Bank             |   |                       | 192,272   |   |               |   | 179,219   |                     |   |   | 2,172                          |   |   |   | 1,812 |   |   |   | 929 |   |   |   | 1,127 |   |   |   | 1.13 | % |   |   | 1.01 | % |
| Great      Lakes Region Total          |   |                       | 1,873,173 |   |               |   | 1,865,340 |                     |   |   | 39,128                         |   |   |   | 29,140 |   |   |   | 69,532 |   |   |   | 48,271 |   |   |   | 2.09 | % |   |   | 1.56 | % |
|                                   |   |                       |      |   |               |   |      |                     |   |   |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Midwest      Region:                   |   |                       |      |   |               |   |      |                     |   |   |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Adams      Dairy Bank(1)               |   |                       | 26,853    |   |               |   |      |                     |   |   | 403                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 1.50 | % |   |   |   |   |
| Bank      of Belleville                |   |                       | 62,156    |   |               |   | 46,951    |                     |   |   | 892                            |   |   |   | 700 |   |   |   |   |   |   |   |   |   |   |   | 1.44 | % |   |   | 1.49 | % |
| Community      Bank of Lincoln         |   |                       | 37,805    |   |               |   | 10,501    |                     |   |   | 574                            |   |   |   | 168 |   |   |   |   |   |   |   |   |   |   |   | 1.52 | % |   |   | 1.60 | % |
| Summit      Bank of Kansas City        |   |                       | 42,495    |   |               |   | 45,165    |                     |   |   | 624                            |   |   |   | 641 |   |   |   |   |   |   |   |   |   |   |   | 1.47 | % |   |   | 1.42 | % |
| Midwest      Region Total              |   |                       | 169,309   |   |               |   | 102,617   |                     |   |   | 2,493                          |   |   |   | 1,509 |   |   |   |   |   |   |   |   |   |   |   | 1.47 | % |   |   | 1.47 | % |

----

|                               |   |                       |      |   | Allowance      for |   |      |                     |   |   | Allowance      as a Percentage |   |
|------------------------------------|--------|----------------------------|-----------|--------|--------------------|--------|-----------|--------------------------|--------|--------|--------------------------------|--------|
|                               |   | Total      Portfolio Loans |      |   | Loan      Losses   |   |      | Nonperforming      Loans |   |   | of      Total Portfolio Loans  |   |
|                               |   | Sept      30,2008          |      |   | Dec      31,2007   |   |      | Sept      30,2008        |   |   | Dec      31,2007               |   |   | Sept      30,2008 |   |   | Dec      31,2007 |   |   | Sept      30,2008 |   |   | Dec      31,2007 |   |
| Nevada      Region:                |   |                       |      |   |               |   |      |                     |   |   |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 1st      Commerce Bank             |   | $                          | 31,078    |   |               | $      | 27,030    |                     |   | $      | 885                            |   |   | $ | 393 |   |   | $ | 2,631 |   |   |   |   |   |   | 2.85 | % |   |   | 1.45 | % |
| Bank      of Las Vegas             |   |                       | 63,665    |   |               |   | 61,662    |                     |   |   | 905                            |   |   |   | 751 |   |   |   | 2,315 |   |   |   |   |   |   | 1.42 | % |   |   | 1.22 | % |
| Black      Mountain Community Bank |   |                       | 145,772   |   |               |   | 137,308   |                     |   |   | 1,816                          |   |   |   | 1,415 |   |   |   | 1,582 |   |   | $ | 659 |   |   |   | 1.25 | % |   |   | 1.03 | % |
| Desert      Community Bank         |   |                       | 90,983    |   |               |   | 90,050    |                     |   |   | 1,190                          |   |   |   | 837 |   |   |   | 1,642 |   |   |   | 356 |   |   |   | 1.31 | % |   |   | 0.93 | % |
| Red      Rock Community Bank       |   |                       | 110,202   |   |               |   | 106,559   |                     |   |   | 1,188                          |   |   |   | 977 |   |   |   | 3,380 |   |   |   | 64 |   |   |   | 1.08 | % |   |   | 0.92 | % |
| Nevada      Region Total           |   |                       | 441,700   |   |               |   | 422,609   |                     |   |   | 5,984                          |   |   |   | 4,373 |   |   |   | 11,550 |   |   |   | 1,079 |   |   |   | 1.35 | % |   |   | 1.03 | % |
|                               |   |                       |      |   |               |   |      |                     |   |   |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Northeast      Region:             |   |                       |      |   |               |   |      |                     |   |   |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| USNY      Bank                     |   |                       | 35,977    |   |               |   | 12,421    |                     |   |   | 540                            |   |   |   | 187 |   |   |   |   |   |   |   |   |   |   |   | 1.50 | % |   |   | 1.51 | % |
|                               |   |                       |      |   |               |   |      |                     |   |   |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Northwest      Region:             |   |                       |      |   |               |   |      |                     |   |   |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Bank      of Bellevue              |   |                       | 47,297    |   |               |   | 37,364    |                     |   |   | 970                            |   |   |   | 665 |   |   |   | 192 |   |   |   | 222 |   |   |   | 2.05 | % |   |   | 1.78 | % |
| Bank      of Everett               |   |                       | 31,605    |   |               |   | 24,170    |                     |   |   | 510                            |   |   |   | 418 |   |   |   |   |   |   |   |   |   |   |   | 1.61 | % |   |   | 1.73 | % |
| Bank      of Tacoma                |   |                       | 36,691    |   |               |   | 19,639    |                     |   |   | 645                            |   |   |   | 285 |   |   |   |   |   |   |   |   |   |   |   | 1.76 | % |   |   | 1.45 | % |
| High      Desert Bank              |   |                       | 28,424    |   |               |   | 9,080     |                     |   |   | 392                            |   |   |   | 126 |   |   |   |   |   |   |   |   |   |   |   | 1.38 | % |   |   | 1.39 | % |
| Issaquah      Community Bank       |   |                       | 19,732    |   |               |   | 6,598     |                     |   |   | 293                            |   |   |   | 93 |   |   |   |   |   |   |   |   |   |   |   | 1.48 | % |   |   | 1.41 | % |
| Northwest      Region Total        |   |                       | 163,749   |   |               |   | 96,851    |                     |   |   | 2,810                          |   |   |   | 1,587 |   |   |   | 192 |   |   |   | 222 |   |   |   | 1.72 | % |   |   | 1.64 | % |
|                               |   |                       |      |   |               |   |      |                     |   |   |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Southeast      Region:             |   |                       |      |   |               |   |      |                     |   |   |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Bank      of Valdosta              |   |                       | 50,663    |   |               |   | 41,629    |                     |   |   | 761                            |   |   |   | 619 |   |   |   |   |   |   |   |   |   |   |   | 1.50 | % |   |   | 1.49 | % |
| Community      Bank of Rowan       |   |                       | 112,388   |   |               |   | 96,271    |                     |   |   | 1,686                          |   |   |   | 1,444 |   |   |   | 675 |   |   |   |   |   |   |   | 1.50 | % |   |   | 1.50 | % |
| First      Carolina State Bank     |   |                       | 88,799    |   |               |   | 94,047    |                     |   |   | 1,300                          |   |   |   | 1,157 |   |   |   | 1,188 |   |   |   | 829 |   |   |   | 1.46 | % |   |   | 1.23 | % |
| Peoples      State Bank            |   |                       | 21,138    |   |               |   | 13,609    |                     |   |   | 320                            |   |   |   | 247 |   |   |   | 815 |   |   |   | 86 |   |   |   | 1.51 | % |   |   | 1.81 | % |
| Pisgah      Community Bank(4)      |   |                       | 18,949    |   |               |   |      |                     |   |   | 284                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 1.50 | % |   |   |   |   |
| Sunrise      Bank of Atlanta       |   |                       | 55,079    |   |               |   | 45,024    |                     |   |   | 1,018                          |   |   |   | 760 |   |   |   | 308 |   |   |   |   |   |   |   | 1.85 | % |   |   | 1.69 | % |
| Southeast      Region Total        |   |                       | 347,016   |   |               |   | 290,580   |                     |   |   | 5,369                          |   |   |   | 4,227 |   |   |   | 2,986 |   |   |   | 915 |   |   |   | 1.55 | % |   |   | 1.45 | % |
|                               |   |                       |      |   |               |   |      |                     |   |   |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Texas      Region:                 |   |                       |      |   |               |   |      |                     |   |   |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Bank      of Fort Bend             |   |                       | 19,292    |   |               |   | 3,140     |                     |   |   | 298                            |   |   |   | 46 |   |   |   |   |   |   |   |   |   |   |   | 1.54 | % |   |   | 1.47 | % |
| Bank      of Las Colinas           |   |                       | 25,960    |   |               |   | 9,830     |                     |   |   | 375                            |   |   |   | 144 |   |   |   |   |   |   |   |   |   |   |   | 1.44 | % |   |   | 1.46 | % |
| Texas      Region Total            |   |                       | 45,252    |   |               |   | 12,970    |                     |   |   | 673                            |   |   |   | 190 |   |   |   |   |   |   |   |   |   |   |   | 1.49 | % |   |   | 1.46 | % |
|                               |   |                       |      |   |               |   |      |                     |   |   |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Parent      company and other, net |   |                       | 21,411    |   |               |   | 28,546    |                     |   |   | 19,561                         |   |   |   | 789 |   |   |   | 6,301 |   |   |   | 6,385 |   |   |   |   |   |   |   |   |   |
|                               |   |                       |      |   |               |   |      |                     |   |   |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Consolidated      totals           |   | $                          | 4,662,272 |   |               | $      | 4,314,701 |                     |   | $      | 97,585                         |   |   | $ | 58,124 |   |   | $ | 127,098 |   |   | $ | 72,630 |   |   |   | 2.09 | % |   |   | 1.35 | % |

| (1) | Commenced      operations in January 2008 and is 51%-owned by Capitol Development Bancorp      Limited V,a      controlled subsidiary of Capitol.    |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------|
| (2) | Commenced      operations in February 2008 and is 51%-owned by Capitol Development      Bancorp Limited VII,a      controlled subsidiary of Capitol. |
| (3) | Commenced      operations in April 2008 and is 51%-owned by Capitol Development Bancorp      Limited VII,a      controlled subsidiary of Capitol.    |
| (4) | Commenced      operations in May 2008 and is 51%-owned by Capitol Development Bancorp      Limited VII,a      controlled subsidiary of Capitol.      |

----

----

|                                                                             |   | Three      Month Period |        |   | Nine      Month Period |
|----------------------------------------------------------------------------------|--------|-------------------------|-------------|--------|------------------------|
|                                                                             |   | 2008                    |        |   | 2007                   |   |   | 2008 |   |   | 2007 |
|                                                                             |   |                    |        |   |                   |   |   |   |   |   |   |
| Costs      associated with foreclosedproperties      and other real estate owned |   | $                       | 2,040       |   |                   | $ | 206 |   |   | $ | 4,132 |   |   | $ | 449 |
| FDIC      insurance premiums and otherregulatory      fees                       |   |                    |  1,029 |   |                   |   |  696 |   |   |   |  2,899 |   |   |   |  1,917 |
| Restructuring      accrual for Michigan bankregionalization                      |   |                    |  2,500 |   |                   |   |   |   |   |   |  2,500 |   |   |   |   |
| Advertising                                                                      |   |                    | 838         |   |                   |   | 792 |   |   |   | 2,471 |   |   |   | 2,454 |
| Paper,      printing and supplies                                                |   |                    | 648         |   |                   |   | 643 |   |   |   | 2,200 |   |   |   | 2,010 |
| Travel,      lodging and meals                                                   |   |                    | 707         |   |                   |   | 706 |   |   |   | 2,193 |   |   |   | 2,049 |
| Directors'      fees                                                             |   |                    | 616         |   |                   |   | 725 |   |   |   | 2,174 |   |   |   | 2,084 |
| Professional      fees                                                           |   |                    | 858         |   |                   |   | 551 |   |   |   | 2,130 |   |   |   | 1,671 |
| Preopening      and start-up costs                                               |   |                    |        |   |                   |   | 1,602 |   |   |   | 2,038 |   |   |   | 2,898 |
| Bank      services (ATMs, telephonebanking      and Internet banking)            |   |                    |  687   |   |                   |   |  517 |   |   |   |  1,868 |   |   |   |  1,578 |
| Communications                                                                   |   |                    | 585         |   |                   |   | 432 |   |   |   | 1,634 |   |   |   | 1,265 |
| Loan      and collection expense                                                 |   |                    | 410         |   |                   |   | 392 |   |   |   | 1,443 |   |   |   | 1,436 |
| Postage                                                                          |   |                    | 335         |   |                   |   | 283 |   |   |   | 993 |   |   |   | 825 |
| Dues      and memberships                                                        |   |                    | 245         |   |                   |   | 203 |   |   |   | 704 |   |   |   | 649 |
| Courier      service                                                             |   |                    | 220         |   |                   |   | 253 |   |   |   | 692 |   |   |   | 729 |
| Taxes      other than income taxes                                               |   |                    | 147         |   |                   |   | 448 |   |   |   | 658 |   |   |   | 1,376 |
| Insurance      expense                                                           |   |                    | 158         |   |                   |   | 119 |   |   |   | 451 |   |   |   | 333 |
| Contracted      labor                                                            |   |                    | 101         |   |                   |   | 98 |   |   |   | 345 |   |   |   | 364 |
| Publications                                                                     |   |                    | 43          |   |                   |   | 32 |   |   |   | 133 |   |   |   | 101 |
| Other                                                                            |   |                    | 3,517       |   |                   |   | 1,890 |   |   |   | 8,563 |   |   |   | 5,647 |
| Total                                                                            |   | $                       | 15,684      |   |                   | $ | 10,588 |   |   | $ | 40,221 |   |   | $ | 29,835 |

----

|                                   |   | Nine      Months Ended September 30 |   |
|----------------------------------------|--------|-------------------------------------|--------|
|                                   |   | Total      Revenues                 |   |   | Net      Income (Loss) |   |   | Return      onAverage      Equity(1) |   |   | Return      onAverage      Assets(1) |   |
|                                   |   | 2008                                |   |   | 2007 |   |   | 2008 |   |   | 2007 |   |   | 2008 |   |   | 2007 |   |   | 2008 |   |   | 2007 |   |
| Arizona      Region:                   |   |                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Arrowhead      Community Bank          |   | $                                   | 4,784  |   |   | $ | 6,231 |   |   | $ | (720 | ) |   | $ | 774 |   |   |   |   |   |   | 12.48 | % |   |   |   |   |   | 1.22 | % |
| Asian      Bank of Arizona             |   |                                | 1,467  |   |   |   | 1,301 |   |   |   | (685 | ) |   |   | (404 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Bank      of Tucson                    |   |                                | 10,006 |   |   |   | 11,972 |   |   |   | 2,897 |   |   |   | 3,496 |   |   |   | 21.43 | % |   |   | 27.52 | % |   |   | 2.13 | % |   |   | 2.60 | % |
| Camelback      Community Bank          |   |                                | 4,536  |   |   |   | 5,129 |   |   |   | 764 |   |   |   | 722 |   |   |   | 11.00 | % |   |   | 10.90 | % |   |   | 1.12 | % |   |   | 1.09 | % |
| Colonia      Bank(4)                   |   |                                | 80     |   |   |   |   |   |   |   | (551 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Mesa      Bank                         |   |                                | 11,058 |   |   |   | 14,979 |   |   |   | (8,211 | ) |   |   | 3,109 |   |   |   |   |   |   |   | 22.60 | % |   |   |   |   |   |   | 1.99 | % |
| Southern      Arizona Community Bank   |   |                                | 4,482  |   |   |   | 5,197 |   |   |   | 411 |   |   |   | 823 |   |   |   | 6.05 | % |   |   | 12.25 | % |   |   | 0.62 | % |   |   | 1.23 | % |
| Sunrise      Bank of Albuquerque       |   |                                | 3,955  |   |   |   | 4,605 |   |   |   | 199 |   |   |   | 470 |   |   |   | 3.62 | % |   |   | 9.61 | % |   |   | 0.35 | % |   |   | 0.92 | % |
| Sunrise      Bank of Arizona           |   |                                | 6,201  |   |   |   | 7,111 |   |   |   | (322 | ) |   |   | 444 |   |   |   |   |   |   |   | 5.11 | % |   |   |   |   |   |   | 0.52 | % |
| Valley      First Community Bank       |   |                                | 3,628  |   |   |   | 4,006 |   |   |   | (587 | ) |   |   | 259 |   |   |   |   |   |   |   | 4.36 | % |   |   |   |   |   |   | 0.50 | % |
| Yuma      Community Bank               |   |                                | 4,043  |   |   |   | 4,498 |   |   |   | 468 |   |   |   | 746 |   |   |   | 7.96 | % |   |   | 12.92 | % |   |   | 0.82 | % |   |   | 1.38 | % |
| Arizona      Region Total              |   |                                | 54,240 |   |   |   | 65,029 |   |   |   | (6,337 | ) |   |   | 10,439 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                   |   |                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| California      Region:                |   |                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Bank      of Escondido                 |   |                                | 3,789  |   |   |   | 4,326 |   |   |   | 241 |   |   |   | 369 |   |   |   | 2.22 | % |   |   | 3.48 | % |   |   | 0.34 | % |   |   | 0.58 | % |
| Bank      of Feather River             |   |                                | 955    |   |   |   |   |   |   |   | (463 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Bank      of San Francisco             |   |                                | 2,807  |   |   |   | 2,195 |   |   |   | 39 |   |   |   | (358 | ) |   |   | 0.61 | % |   |   |   |   |   |   | 0.08 | % |   |   |   |   |
| Bank      of Santa Barbara             |   |                                | 3,083  |   |   |   | 3,090 |   |   |   | (198 | ) |   |   | (205 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Napa      Community Bank               |   |                                | 6,551  |   |   |   | 7,032 |   |   |   | 914 |   |   |   | 1,066 |   |   |   | 8.47 | % |   |   | 11.02 | % |   |   | 0.94 | % |   |   | 1.21 | % |
| Point      Loma Community Bank         |   |                                | 2,828  |   |   |   | 3,071 |   |   |   | 244 |   |   |   | 69 |   |   |   | 4.46 | % |   |   | 1.30 | % |   |   | 0.57 | % |   |   | 0.18 | % |
| Sunrise      Bank of San Diego         |   |                                | 4,174  |   |   |   | 5,358 |   |   |   | 166 |   |   |   | 372 |   |   |   | 2.07 | % |   |   | 4.68 | % |   |   | 0.25 | % |   |   | 0.59 | % |
| Sunrise      Community Bank            |   |                                | 1,182  |   |   |   | 726 |   |   |   | (522 | ) |   |   | (805 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| California      Region Total           |   |                                | 25,369 |   |   |   | 25,798 |   |   |   | 421 |   |   |   | 508 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                   |   |                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Colorado      Region:                  |   |                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Fort      Collins Commerce Bank        |   |                                | 3,424  |   |   |   | 3,517 |   |   |   | 536 |   |   |   | 495 |   |   |   | 7.81 | % |   |   | 7.74 | % |   |   | 1.06 | % |   |   | 1.23 | % |
| Larimer      Bank of Commerce          |   |                                | 3,279  |   |   |   | 1,201 |   |   |   | 299 |   |   |   | (586 | ) |   |   | 5.27 | % |   |   |   |   |   |   | 0.60 | % |   |   |   |   |
| Loveland      Bank of Commerce         |   |                                | 1,035  |   |   |   |   |   |   |   | (371 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Mountain      View Bank of Commerce(3) |   |                                | 746    |   |   |   |   |   |   |   | (711 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Colorado      Region Total             |   |                                | 8,484  |   |   |   | 4,718 |   |   |   | (247 | ) |   |   | (91 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                   |   |                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Great      Lakes Region:               |   |                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Ann      Arbor Commerce Bank           |   |                                | 17,657 |   |   |   | 19,058 |   |   |   | 2,382 |   |   |   | 2,790 |   |   |   | 11.03 | % |   |   | 14.25 | % |   |   | 0.89 | % |   |   | 1.13 | % |
| Bank      of Auburn Hills              |   |                                | 2,123  |   |   |   | 2,418 |   |   |   | (599 | ) |   |   | (215 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Bank      of Maumee                    |   |                                | 2,119  |   |   |   | 946 |   |   |   | (604 | ) |   |   | (856 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Bank      of Michigan                  |   |                                | 3,707  |   |   |   | 3,603 |   |   |   | 426 |   |   |   | (38 | ) |   |   | 8.41 | % |   |   |   |   |   |   | 0.81 | % |   |   |   |   |
| Brighton      Commerce Bank            |   |                                | 5,582  |   |   |   | 6,166 |   |   |   | 348 |   |   |   | 455 |   |   |   | 4.72 | % |   |   | 6.60 | % |   |   | 0.42 | % |   |   | 0.57 | % |
| Capitol      National Bank             |   |                                | 11,214 |   |   |   | 13,499 |   |   |   | 233 |   |   |   | 1,587 |   |   |   | 1.61 | % |   |   | 11.20 | % |   |   | 0.14 | % |   |   | 0.89 | % |
| Detroit      Commerce Bank             |   |                                | 5,401  |   |   |   | 6,786 |   |   |   | (1,162 | ) |   |   | 413 |   |   |   |   |   |   |   | 5.96 | % |   |   |   |   |   |   | 0.51 | % |
| Elkhart      Community Bank            |   |                                | 4,354  |   |   |   | 5,149 |   |   |   | 210 |   |   |   | 650 |   |   |   | 3.18 | % |   |   | 9.88 | % |   |   | 0.30 | % |   |   | 1.03 | % |
| Evansville      Commerce Bank          |   |                                | 3,020  |   |   |   | 1,851 |   |   |   | (201 | ) |   |   | (540 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Goshen      Community Bank             |   |                                | 3,946  |   |   |   | 4,490 |   |   |   | 252 |   |   |   | 330 |   |   |   | 4.23 | % |   |   | 5.90 | % |   |   | 0.42 | % |   |   | 0.58 | % |
| Grand      Haven Bank                  |   |                                | 5,597  |   |   |   | 7,248 |   |   |   | (2,302 | ) |   |   | 500 |   |   |   |   |   |   |   | 6.10 | % |   |   |   |   |   |   | 0.52 | % |
| Kent      Commerce Bank                |   |                                | 4,235  |   |   |   | 5,045 |   |   |   | (1,241 | ) |   |   | 100 |   |   |   |   |   |   |   | 2.27 | % |   |   |   |   |   |   | 0.16 | % |
| Macomb      Community Bank             |   |                                | 3,926  |   |   |   | 5,088 |   |   |   | (3,412 | ) |   |   | (842 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Muskegon      Commerce Bank            |   |                                | 4,175  |   |   |   | 5,427 |   |   |   | (1,598 | ) |   |   | (746 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Oakland      Commerce Bank             |   |                                | 4,501  |   |   |   | 7,234 |   |   |   | (1,230 | ) |   |   | (102 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Ohio      Commerce Bank                |   |                                | 1,991  |   |   |   | 1,031 |   |   |   | (117 | ) |   |   | (568 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Paragon      Bank & Trust          |   |                                | 5,370  |   |   |   | 6,157 |   |   |   | (725 | ) |   |   | (25 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Portage      Commerce Bank             |   |                                | 10,953 |   |   |   | 11,580 |   |   |   | 1,787 |   |   |   | 1,740 |   |   |   | 13.62 | % |   |   | 14.36 | % |   |   | 1.16 | % |   |   | 1.26 | % |
| Great      Lakes Region Total          |   |                                | 99,871 |   |   |   | 112,776 |   |   |   | (7,553 | ) |   |   | 4,633 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                   |   |                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Midwest      Region                    |   |                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Adams      Dairy Bank(2)               |   |                                | 1,121  |   |   |   |   |   |   |   | (569 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Bank      of Belleville                |   |                                | 2,706  |   |   |   | 1,648 |   |   |   | 23 |   |   |   | (434 | ) |   |   | 0.45 | % |   |   |   |   |   |   | 0.05 | % |   |   |   |   |
| Community      Bank of Lincoln         |   |                                | 1,402  |   |   |   |   |   |   |   | (511 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Summit      Bank of Kansas City        |   |                                | 2,333  |   |   |   | 2,408 |   |   |   | (10 | ) |   |   | (352 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Midwest      Region Total              |   |                                | 7,562  |   |   |   | 4,056 |   |   |   | (1,067 | ) |   |   | (786 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

|                               |   | Nine      Months Ended September 30 |    |
|------------------------------------|--------|-------------------------------------|---------|
|                               |   | Total      Revenues                 |    |   | Net      Income (Loss) |   |   | Return      onAverage      Equity(1) |   |   | Return      onAverage      Assets(1) |   |
|                               |   | 2008                                |    |   | 2007 |   |   | 2008 |   |   | 2007 |   |   | 2008 |   |   | 2007 |   |   | 2008 |   |   | 2007 |   |
| Nevada      Region:                |   |                                |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 1st      Commerce Bank             |   | $                                   | 1,776   |   |   | $ | 1,188 |   |   | $ | (660 | ) |   | $ | (423 | ) |   |   |   |   |   |   |   |   |   |   |   |   |
| Bank      of Las Vegas             |   |                                | 3,710   |   |   |   | 4,542 |   |   |   | 112 |   |   |   | 493 |   |   |   | 1.71 | % |   |   | 7.30 | % |   |   | 0.21 | % |   |   | 0.90 | % |
| Black      Mountain Community Bank |   |                                | 8,093   |   |   |   | 9,233 |   |   |   | 1,390 |   |   |   | 1,976 |   |   |   | 12.49 | % |   |   | 18.83 | % |   |   | 1.22 | % |   |   | 1.85 | % |
| Desert      Community Bank         |   |                                | 5,622   |   |   |   | 6,076 |   |   |   | 485 |   |   |   | 891 |   |   |   | 6.37 | % |   |   | 12.60 | % |   |   | 0.63 | % |   |   | 1.25 | % |
| Red      Rock Community Bank       |   |                                | 5,891   |   |   |   | 6,990 |   |   |   | 672 |   |   |   | 1,266 |   |   |   | 6.56 | % |   |   | 12.72 | % |   |   | 0.75 | % |   |   | 1.51 | % |
| Nevada      Region Total           |   |                                | 25,092  |   |   |   | 28,029 |   |   |   | 1,999 |   |   |   | 4,203 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                               |   |                                |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Northeast      Region:             |   |                                |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| USNY      Bank                     |   |                                | 1,249   |   |   |   | 149 |   |   |   | (583 | ) |   |   | (743 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                               |   |                                |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Northwest      Region:             |   |                                |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Bank      of Bellevue              |   |                                | 2,181   |   |   |   | 2,410 |   |   |   | (179 | ) |   |   | (66 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Bank      of Everett               |   |                                | 1,541   |   |   |   | 1,403 |   |   |   | (779 | ) |   |   | (433 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Bank      of Tacoma                |   |                                | 1,485   |   |   |   | 868 |   |   |   | (629 | ) |   |   | (884 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| High      Desert Bank              |   |                                | 955     |   |   |   | 4 |   |   |   | (581 | ) |   |   | (330 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Issaquah      Community Bank       |   |                                | 857     |   |   |   | 125 |   |   |   | (494 | ) |   |   | (394 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Northwest      Region Total        |   |                                | 7,019   |   |   |   | 4,810 |   |   |   | (2,662 | ) |   |   | (2,107 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                               |   |                                |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Southeast      Region:             |   |                                |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Bank      of Valdosta              |   |                                | 2,413   |   |   |   | 1,802 |   |   |   | (55 | ) |   |   | (326 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Community      Bank of Rowan       |   |                                | 5,553   |   |   |   | 4,228 |   |   |   | 698 |   |   |   | (229 | ) |   |   | 9.38 | % |   |   |   |   |   |   | 0.76 | % |   |   |   |   |
| First      Carolina State Bank     |   |                                | 4,785   |   |   |   | 5,517 |   |   |   | 31 |   |   |   | 404 |   |   |   | 0.37 | % |   |   | 4.57 | % |   |   | 0.04 | % |   |   | 0.55 | % |
| Peoples      State Bank            |   |                                | 1,326   |   |   |   | 1,705 |   |   |   | 5 |   |   |   | 226 |   |   |   | 0.13 | % |   |   | 6.15 | % |   |   | 0.03 | % |   |   | 1.08 | % |
| Pisgah      Community Bank(5)      |   |                                | 357     |   |   |   |   |   |   |   | (700 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Sunrise      Bank of Atlanta       |   |                                | 3,462   |   |   |   | 2,757 |   |   |   | (310 | ) |   |   | (260 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Southeast      Region Total        |   |                                | 17,896  |   |   |   | 16,009 |   |   |   | (331 | ) |   |   | (185 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                               |   |                                |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Texas      Region:                 |   |                                |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Bank      of Fort Bend             |   |                                | 629     |   |   |   |   |   |   |   | (669 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Bank      of Las Colinas           |   |                                | 887     |   |   |   |   |   |   |   | (470 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Texas      Region Total            |   |                                | 1,516   |   |   |   |   |   |   |   | (1,139 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                               |   |                                |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Parent      company and other, net |   |                                | 2,831   |   |   |   | 1,294 |   |   |   | (12,182 | ) |   |   | 2,672 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                               |   |                                |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Consolidated      totals           |   | $                                   | 251,129 |   |   | $ | 262,668 |   |   | $ | (29,681 | ) |   | $ | 18,543 |   |   |   |  -- |   |   |   | 6.48 | % |   |   |  -- |   |   |   | 0.57 | % |

| (1) | Annualized      for periods presented.                                                                                                               |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------|
| (2) | Commenced      operations in January 2008 and is 51%-owned by Capitol Development Bancorp      Limited V,a      controlled subsidiary of Capitol.    |
| (3) | Commenced      operations in February 2008 and is 51%-owned by Capitol Development      Bancorp Limited VII,a      controlled subsidiary of Capitol. |
| (4) | Commenced      operations in April 2008 and is 51%-owned by Capitol Development Bancorp      Limited VII,a      controlled subsidiary of Capitol.    |
| (5) | Commenced      operations in May 2008 and is 51%-owned by Capitol Development Bancorp      Limited VII,a      controlled subsidiary of Capitol.      |

----

----

----

----

----

| Item      1.  | Legal      Proceedings. Capitol      and its subsidiaries are parties to certain ordinary, routine litigation      incidental to their business.  In the opinion of management,      liabilities arising from such litigation would not have a material effect      on Capitol's consolidated financial position or results of      operations.                                                                 |
|---------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Item      1A. | Risk      Factors. There      were no material changes from the risk factors set forth in Part I,      Item 1A, "Risk Factors," of Capitol's Form 10-K for the year ended      December 31, 2007, during the nine months ended September 30,      2008.  Refer to that section of Capitol's Form 10-K for      disclosures regarding the risks and uncertainties related to Capitol's      business.  |
| Item      2.  | Unregistered      Sales of Equity Securities and Use of Proceeds.                                                                                                                                                                                                                                                                                                                                                              |
|          | (a)               None.(b)          Not      applicable.(c)          None.                                                                                                                                                                                                    |
| Item      3.  | Defaults      Upon Senior Securities. None.                                                                                                                                                                                                                                                                                                                                                                               |
| Item      4.  | Submission      of Matters to a Vote of Security Holders. None.                                                                                                                                                                                                                                                                                                                                                           |
| Item      5.  | Other      Information. None.                                                                                                                                                                                                                                                                                                                                                                                             |
| Item      6.  | Exhibits:                                                                                                                                                                                                                                                                                                                                                                                                                           |

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

----

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

----

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

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