8-K

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): July 27, 2006

CAPITOL BANCORP LTD.

(Exact name of registrant as specified in its charter)

Michigan (State or other jurisdiction of  incorporation)   001-31708 (Commission File No.)   38-2761672 (IRS Employer Identification No.)  

Capitol Bancorp Center

200 Washington Square North, Lansing, Michigan 48933

(Address of Principal Executive Offices)  (Zip Code)

(517) 487-6555

(Registrant’s Telephone Number, Including Area Code)

Not Applicable

(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 7.01. Regulation FD Disclosure.

On July 27, 2006, Capitol Bancorp Ltd. announced a quarterly dividend of $0.25 per share, payable September 1, 2006 to shareholders of record as of August 8, 2006. This represents a 39 percent increase over the $0.18 dividend per share paid in the same period in 2005. This is Capitol’s third quarterly dividend of 2006. The press release is attached as Exhibit 99.1 to this Item 7.01.

SIGNATURES

 Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

            Date:  July 27, 2006 CAPITOL BANCORP LTD. (Registrant)    /s/ Joseph D. Reid  Joseph D. Reid Chief Executive Officer

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INDEX TO EXHIBITS

Exhibit No.	Description of Exhibit
99.1	Press Release dated July 27, 2006.

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EX-99.1 CHARTER

EXHIBIT 99.1

        Capitol Bancorp Center 200 Washington Square North Lansing, MI 48933   2777 East Camelback Road Suite 375 Phoenix, AZ 85016 www.capitolbancorp.com                                            

  Contact:           Michael M. Moran Chief of Capital Markets 877-884-5662   Joal Redmond Corporate Communications 602-977-3797

 

For Immediate Release

Capitol Bancorp Declares 56^th Consecutive Quarterly Cash Dividend

LANSING, Mich., and PHOENIX: July 27, 2006: The Board of Directors of Capitol Bancorp Limited (NYSE:CBC) today announced the Corporation’s 56th consecutive quarterly cash dividend at $0.25 per common share, consistent with last quarter’s dividend and a 39 percent increase over the $0.18 dividend paid in the same period in 2005. The dividend is payable September 1, 2006, to shareholders of record as of August 8, 2006.

Capitol Bancorp’s Chairman and CEO, Joseph D. Reid, said the Corporation experienced record growth during the second quarter and that bank development opportunities are underway in several states. “We have articulated a unique business strategy and through disciplined management of the balance sheet, strong capital levels and a dedicated focus on the community banking model, we have been able to consistently grow the company and reward our shareholders.”

The dividend declaration follows Capitol Bancorp’s recent announcement of record second quarter 2006 earnings, approximating $10.3 million, an increase of 24 percent over earnings reported for the same period in 2005. Earnings per share of $0.65 and $0.63 on a basic and diluted basis reflect 16 and 17 percent increases when compared to 2005’s second quarter figures of $0.56 and $0.54, respectively.

During the first half of the year, the Corporation added six new community banks to its network, with five of those banks opening in the second quarter. Development efforts currently are underway in several states including California, Nevada, Ohio and Washington.

About Capitol Bancorp Limited

Capitol Bancorp Limited (NYSE: CBC) is a $3.7 billion national community bank development company, with a network of 47 separately chartered banks and bank operations in 13 states. It is the holder of the most individual bank charters in the country. Capitol Bancorp Limited identifies opportunities for the development of new community banks, raises capital for and mentors new community banks through their formative stages, and provides efficient services to its growing

network of community banks. Each community bank has full local decision-making authority and is managed by an on-site president under the direction of a local board of directors, composed of business leaders from the bank’s community. Founded in 1988, Capitol Bancorp Limited has executive offices in Lansing, Michigan, and Phoenix, Arizona.

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