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):  January 31, 2008

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.)

CapitolBancorpCenter

200 Washington Square North, Lansing, Michigan48933

(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))

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Item 2.02.  Results of Operations and Financial Condition.

On January 31, 2008, Capitol Bancorp Ltd. issued a press release announcing fourth quarter 2007 earnings.  A copy of this press release is attached as Exhibit 99.1 to this Item 2.02.

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:  January 31, 2008 CAPITOL BANCORP LTD. (Registrant)   /s/ Joseph D. Reid                                                       Joseph D. Reid Chief Executive Officer

2

INDEX TO EXHIBITS

Exhibit No.	Description of Exhibit
99.1	Press Release dated January 31, 2008

3

EX-99.1

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                                              

Analyst Contact:     Media Contact: Michael M. Moran Chief of Capital Markets 877-884-5662 Stephanie Swan Director of Shareholder Services 517-372-7402

CAPITOL BANCORP REPORTS FOURTH QUARTER RESULTS

YEAR-END 2007 HIGHLIGHTS

·   Assets Increase 21% Year-over-Year

·   Total Deposits Increase 18%

·   Eleven De Novo Bank Openings During 2007

·   Seven De Novo Applications Pending

·   Wealth Management Initiatives Launched in 35 Affiliate Banks

4TH QUARTER 2007 HIGHLIGHTS

·   Assets Reach Record $4.9 Billion

·   Strong Annualized Linked Quarter Growth in Assets (21%),

        Loans (28%) and Deposits (19%)

·   Five De Novo Bank Openings During the Quarter

LANSING, Mich. and PHOENIX, Ariz.: January 31, 2008: Corporate earnings for 2007 were $21.9 million, down 48% from reported earnings for 2006 of nearly $42.4 million.  Earnings per share for the year of $1.27 decreased about 50% from the $2.57 reported in 2006.  Fourth quarter net income approximated $3.4 million ($0.20 per diluted share) compared to $11.4 million ($0.68 per diluted share) in the fourth quarter of 2006.

Solid growth brought consolidated assets to approximately $4.9 billion at December 31, 2007, a 21 percent increase over the $4.1 billion reported a year ago, due largely to the continued implementation of Capitol Bancorp’s strategic growth plan.  A 24 percent increase year-over-year, and more than 28 percent on an annualized linked-quarter basis, brought total portfolio loans to approximately $4.3 billion, when compared to the $3.5 billion reported at December 31, 2006.  Similarly, total deposits increased by 18 percent to approximately $3.8 billion, over the approximate $3.3 billion reported in 2006, a nearly 19 percent increase on an annualized linked-quarter basis.

Capitol Bancorp’s Chairman and CEO Joseph D. Reid said, “A record year in bank development brought eleven new banks into the Capitol Bancorp family.  Challenges facing all financial institutions, most acutely felt in the state of Michigan, resulted in disappointing earnings for the

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Corporation.  Plans to develop a national community bank network were initiated more than ten years ago to better position the Corporation to weather future regional economic weakness, enhancing our ability to report consistent, stable core earnings for our shareholders.”

In the fourth quarter of 2007, five de novo banks located in new markets joined the Capitol Bancorp network.  Loveland Bank of Commerce opened in Loveland, Colorado, in October.  In November, Bank of Feather River, located in Yuba City, California, commenced operations.  Capitol’s entry into the state of Nebraska was signaled by the December opening of Community Bank of Lincoln.  Also in December, the first affiliate bank in Texas, Bank of Fort Bend, opened in Sugar Land (just outside of Houston), and the second, Bank of Las Colinas, opened in Irving (just outside of Dallas).  Additionally, six affiliates were added during the first nine months of 2007 in the states of California, Colorado, New York, Oregon and Washington, helping to expand Capitol Bancorp’s national network currently consisting of 61 community banks to 17 states across the country.  Seven applications are currently pending to establish community banks in the states of Arizona, Colorado, North Carolina, Ohio and Oklahoma.  Capitol Bancorp opened its first bank of 2008, Missouri-based Adams Dairy Bank, in early January.  Support for this current network of affiliate banks, as well as the substantial growth expected in the future, is provided by the Corporation’s strong capital foundation.  At December 31, 2007, Capitol Bancorp’s total capital stood in excess of $700 million, or more than 14% of the Corporation’s $4.9 billion of total assets.

Quarterly Performance

Consolidated net operating revenues increased 4 percent to $52.2 million for the fourth quarter of 2007 compared with $50.1 million for the fourth quarter of 2006.  The net interest margin was 4.17 percent, compared to 4.42 percent reported in the third quarter of 2007.  While the Corporation’s average earning assets expanded approximately 22 percent from a year ago, to more than $4.4 billion, Capitol Bancorp’s traditionally strong margin was impacted by many factors: a flat-to-inverted yield curve, intense pricing competition at a time when robust loan growth outpaced the generation of traditional core funding sources, slightly lower levels of noninterest-bearing deposit accounts, increases in nonperforming assets, and the issuance of approximately $55 million of trust preferred financing earlier in the year to support bank development.

Net income for the quarter approximated $3.4 million, a decrease from $11.4 million reported in the fourth quarter of 2006.  Weakened bank performance and related earnings contribution of the Corporation’s mature banks in its Great Lakes Region were the major reasons for the earnings decrease.  Operating expenses increased 35 percent year-over-year, a result of the addition of 11 banks during the past twelve months, and the continued support and reinforcement of business development efforts at Capitol’s existing banks and nonbank affiliates.  Historically, it is not uncommon for Capitol Bancorp to report negative operating leverage in the early stages of vibrant de novo development.  When coupled with the current margin pressures and asset quality-related demands, this dynamic can be exaggerated.  Diluted earnings per share of $0.20 decreased from $0.68 reported in the fourth quarter of 2006.  The fourth quarter provision for loan losses, which stood at $9.5 million, represents a 177% increase from 2006’s comparable period (and are more than two-times net charge-offs both for the fourth quarter and all of 2007), coupled with a 4 percent increase in the Corporation’s outstanding share count year-over-year, were also contributing factors to the decline in earnings per share.

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Operating Results for 2007

Comparable to the challenges noted in the quarterly performance discussed above, modest net operating revenue growth (an increase of 6 percent to nearly $208 million when compared to the year-ago period) was offset by the costs attributable to the Corporation’s expansion initiatives.  Diluted earnings per share of $1.27 for the year decreased from the $2.57 reported for 2006.  Loan loss provisioning, which exceeded $25 million during 2007, was more than double the $12.2 million recorded in 2006 as Capitol Bancorp sought to ensure that an appropriate and conservative stance was taken with regard to reserves during these challenging and uncertain times.

Balance Sheet

The Corporation’s capital position remains strong.  At December 31, 2007, the equity-to-asset ratio was nearly 8 percent, as total assets have expanded 21 percent year-over-year.  The total capital-to-asset ratio was 14.31 percent at December 31, 2007, in line with the 14.50 percent reported a year ago as total capital resources exceeded $700 million.

Net charge-offs at 0.41 percent of average portfolio loans outstanding for the fourth quarter of 2007 decreased from the third quarter’s 0.45 percent and were up slightly from 0.38 percent in the corresponding period of 2006.  The ratio of nonperforming assets to total assets was 1.82 percent at December 31, 2007 compared to the 1.42 percent reported at the end of the third quarter and the allowance coverage ratio of nonperforming loans was 80 percent at year-end 2007.  Responding to this difficult environment, Capitol Bancorp reported a modest increase in its allowance level, which now stands at 1.35 percent of total loans.  With commercial real estate often serving as the primary source of collateral and security for most affiliate bank loans, resolution timetables for nonperforming loans can be extended due to state-specific redemption laws as well as market conditions for sale of real estate.  Our ongoing analysis of the loan portfolio resulted in increases in the allowance for loan losses and charge-offs at December 31, 2007.

“A little more than ten years ago, the Corporation’s asset base was composed entirely of Michigan-based affiliates,” said Reid.  “At year-end 2007, only 36% of the total asset base of the Corporation was domiciled in Michigan-based affiliates.  In the past year, all de novo growth has occurred outside of the state of Michigan, and four of the eleven banks launched in 2007 were in states where we previously did not have an affiliate.  Each state or new region that we enter further diversifies Capitol Bancorp’s asset base and reduces exposure to the effect of any one future regional slowdown.  The opportunities for growth through new affiliates are many; we continue to see tremendous potential in the west, particularly in Texas and the surrounding regions.  We remain committed to our strategy of national geographic diversity.  In addition, attention has been paid to increasing fee income through various revenue generation efforts, including the growth of our wealth management affiliate, Capitol Wealth, which will increasingly contribute to the enhancement of the Corporation’s consolidated earnings profile by offering a select group of products and services to the customer base at each of Capitol Bancorp’s affiliate banks.  Revenue for Capitol Wealth increased 74% from 2006 ($2.3 million) to 2007 ($4.0 million).”

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About Capitol Bancorp Limited

Capitol Bancorp Limited (NYSE: CBC) is a $4.9 billion national community bank development company, with a network of 61 separately chartered banks and bank operations in 17 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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CAPITOL BANCORP LIMITED
SUMMARY OF SELECTED FINANCIAL DATA
(in thousands, except share and per share data)
	Three Months Ended									Year Ended
	December 31									December 31
	2007			2006						2007			2006
Condensed statements of operations:
Interest income	$	86,310		$	74,978					$	330,439		$	279,353
Interest expense		39,924			30,896						147,162			105,586
Net interest income		46,386			44,082						183,277			173,767
Provision for loan losses		9,528			3,444						25,340			12,156
Noninterest income		5,842			6,060						24,381			21,532
Noninterest expense		47,649			35,248						176,160			137,804
Income before income taxes		1,522			14,716						24,761			57,854
Net income	$	3,394		$	11,382					$	21,937		$	42,391
Per share data:
Net income - basic	$	0.20		$	0.71					$	1.29		$	2.69
Net income - diluted		0.20			0.68						1.27			2.57
Book value at end of period		22.47			21.73						22.47			21.73
Common stock closing price at end of period	$	20.12		$	46.20					$	20.12		$	46.20
Common shares outstanding at end of period		17,317,000			16,656,000						17,317,000			16,656,000
Number of shares used to compute:
Basic earnings per share		17,109,000			15,979,000						16,967,000			15,772,000
Diluted earnings per share		17,201,000			16,768,000						17,216,000			16,481,000
	4th Quarter			3rd Quarter			2nd Quarter			1st Quarter			4th Quarter
	2007			2007			2007			2007			2006
Condensed statements of financial position:
Total assets	$	4,901,763		$	4,654,012		$	4,439,279		$	4,254,526		$	4,065,816
Portfolio loans		4,314,701			4,030,384			3,801,773			3,620,981			3,488,678
Deposits		3,844,745			3,673,950			3,523,346			3,392,035			3,258,485
Stockholders' equity		389,145			390,466			387,917			381,992			361,879
Total capital	$	701,473		$	689,643		$	668,067		$	661,650		$	589,426
Key performance ratios:
Return on average assets		0.28	%		0.53	%		0.58	%		0.61	%		1.16	%
Return on average equity		3.48	%		6.15	%		6.54	%		6.74	%		13.30	%
Net interest margin		4.17	%		4.42	%		4.53	%		4.67	%		4.82	%
Efficiency ratio		91.23	%		82.70	%		82.15	%		83.20	%		70.30	%
Asset quality ratios:
Allowance for loan losses / portfolio loans		1.35	%		1.31	%		1.30	%		1.30	%		1.30	%
Total nonperforming loans / portfolio loans		1.68	%		1.31	%		1.10	%		1.02	%		0.98	%
Total nonperforming assets / total assets		1.82	%		1.42	%		1.17	%		1.08	%		1.08	%
Net charge-offs (annualized) / average portfolio loans		0.41	%		0.45	%		0.18	%		0.26	%		0.38	%
Allowance for loan losses / nonperforming loans		80.03	%		100.21	%		118.28	%		128.00	%		132.50	%
Capital ratios:
Stockholders' equity / total assets		7.94	%		8.39	%		8.74	%		8.98	%		8.90	%
Total capital / total assets		14.31	%		14.82	%		15.05	%		15.55	%		14.50	%

Forward-Looking Statements

  This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act

  of 1995.  Forward-looking statements include expressions such as "expects", "intends", "believes" and "should" which are not

  necessarily statements of belief as to the expected outcomes of future events.  Actual results could materially differ from those

  presented due to a variety of internal and external factors.  Actual results could materially differ from those contained in, or implied

  by, such statements.  Capitol Bancorp Limited undertakes no obligation to release revisions to these forward-looking statements or

  reflect events or circumstances after the date of this release.

 Supplemental analyses follow providing additional detail regarding Capitol's results of operations, financial position, asset quality

              and other supplemental data.

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CAPITOL BANCORP LIMITED
Condensed Consolidated Statements of Income (Unaudited)
(in thousands, except per share data)
	Three Months Ended December 31					Year Ended December 31
	2007			2006		2007			2006
INTEREST INCOME:
Portfolio loans (including fees)	$	82,981		$	70,822	$	314,800		$	264,701
Loans held for sale		368			730		2,133			2,740
Taxable investment securities		184			226		773			956
Federal funds sold		2,118			2,534		10,687			8,703
Other		659			666		2,046			2,253
Total interest income		86,310			74,978		330,439			279,353
INTEREST EXPENSE:
Deposits		33,205			26,504		124,160			88,629
Debt obligations and other		6,719			4,392		23,002			16,957
Total interest expense		39,924			30,896		147,162			105,586
Net interest income		46,386			44,082		183,277			173,767
PROVISION FOR LOAN LOSSES		9,528			3,444		25,340			12,156
Net interest income after provision
for loan losses		36,858			40,638		157,937			161,611
NONINTEREST INCOME:
Service charges on deposit accounts		1,263			1,101		4,787			4,318
Trust and wealth-management revenue		1,624			1,012		5,149			3,336
Fees from origination of non-portfolio
residential mortgage loans		728			1,348		4,482			5,439
Gain on sales of government-guaranteed loans		437			1,240		2,733			2,434
Realized losses on sale of investment securities
available for sale		(2	)		-		(2	)		-
Other		1,792			1,359		7,232			6,005
Total noninterest income		5,842			6,060		24,381			21,532
NONINTEREST EXPENSE:
Salaries and employee benefits		26,238			20,356		106,563			85,196
Occupancy		4,199			3,348		15,079			12,116
Equipment rent, depreciation and maintenance		2,551			2,233		10,022			8,389
Other		14,661			9,311		44,496			32,103
Total noninterest expense		47,649			35,248		176,160			137,804
Income (loss) before income taxes (benefit) and
minority interest		(4,949	)		11,450		6,158			45,339
Income taxes (benefit)		(1,872	)		3,334		2,824			15,463
Income (loss) before minority interest		(3,077	)		8,116		3,334			29,876
Minority interest in net losses
of consolidated subsidiaries		6,471			3,266		18,603			12,515
NET INCOME	$	3,394		$	11,382	$	21,937		$	42,391
NET INCOME PER SHARE:
Basic	$	0.20		$	0.71	$	1.29		$	2.69
Diluted	$	0.20		$	0.68	$	1.27		$	2.57

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CAPITOL BANCORP LIMITED
Condensed Consolidated Balance Sheets
(in thousands, except share data)
	December 31
	(Unaudited)
	2007			2006
ASSETS
Cash and due from banks	$	196,083		$	169,753
Money market and interest-bearing deposits		26,924			37,204
Federal funds sold		129,365			141,913
Cash and cash equivalents		352,372			348,870
Loans held for sale		16,419			34,593
Investment securities:
Available for sale, carried at market value		14,119			18,904
Held for long-term investment, carried at
amortized cost which approximates market value		25,478			21,749
Total investment securities		39,597			40,653
Portfolio loans:
Loans secured by real estate:
Commercial		1,917,113			1,602,743
Residential (including multi-family)		698,960			529,357
Construction, land development and other land		852,595			705,255
Total loans secured by real estate		3,468,668			2,837,355
Commercial and other business-purpose loans		768,473			602,294
Consumer		48,041			39,957
Other		29,519			9,072
Total portfolio loans		4,314,701			3,488,678
Less allowance for loan losses		(58,124	)		(45,414	)
Net portfolio loans		4,256,577			3,443,264
Premises and equipment		60,031			54,295
Accrued interest income		19,417			17,524
Goodwill and other intangibles		72,722			62,215
Other assets		84,628			64,402
TOTAL ASSETS	$	4,901,763		$	4,065,816
LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES:
Deposits:
Noninterest-bearing	$	671,688		$	651,253
Interest-bearing		3,173,057			2,607,232
Total deposits		3,844,745			3,258,485
Debt obligations:
Notes payable and short-term borrowings		320,384			191,154
Subordinated debentures		156,130			101,035
Total debt obligations		476,514			292,189
Accrued interest on deposits and other liabilities		35,161			26,751
Total liabilities		4,356,420			3,577,425
MINORITY INTERESTS IN CONSOLIDATED SUBSIDIARIES		156,198			126,512
STOCKHOLDERS' EQUITY:
Common stock, no par value,  50,000,000 shares authorized;
issued and outstanding:    2007 - 17,316,568 shares
2006 - 16,656,481 shares		272,208			249,244
Retained earnings		117,520			112,779
Undistributed common stock held by employee-
benefit trust		(586	)
Market value adjustment (net of tax effect) for
investment securities available for sale (accumulated
other comprehensive income/loss)		3			(144	)
Total stockholders' equity		389,145			361,879
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	4,901,763		$	4,065,816

 

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CAPITOL BANCORP LIMITED

Allowance for Loan Losses and Asset Quality Data

ALLOWANCE FOR LOAN LOSSES ACTIVITY (in thousands):

	Periods Ended December 31
	Three Month Period						Year Ended
	2007			2006			2007			2006
Allowance for loan losses at beginning of period	$	52,851		$	45,174		$	45,414		$	40,559
Loans charged-off:
Loans secured by real estate:
Commercial		(1,963	)		(1,179	)		(3,102	)		(2,737	)
Residential (including multi-family)		(1,076	)		(756	)		(3,265	)		(1,831	)
Construction, land development and other   land		(547	)		(381	)		(1,192	)		(812	)
Total loans secured by real estate		(3,586	)		(2,316	)		(7,559	)		(5,380	)
Commercial and other business-purpose loans		(1,219	)		(985	)		(6,257	)		(2,943	)
Consumer		(87	)		(58	)		(403	)		(255	)
Other		--			(73	)		--			(122	)
Total charge-offs		(4,892	)		(3,432	)		(14,219	)		(8,700	)
Recoveries:
Loans secured by real estate:
Commercial		2			54			70			66
Residential (including multi-family)		62			33			226			213
Construction, land development and other   land		4			--			20			8
Total loans secured by real estate		68			87			316			287
Commercial and other business-purpose loans		551			109			1,101			896
Consumer		17			32			165			216
Other		1			--			7			--
Total recoveries		637			228			1,589			1,399
Net charge-offs		(4,255	)		(3,204	)		(12,630	)		(7,301	)
Additions to allowance charged to expense		9,528			3,444			25,340			12,156
Allowance for loan losses at December 31	$	58,124		$	45,414		$	58,124		$	45,414
Average total portfolio loans for period ended     December 31	$	4,172,669		$	3,381,488		$	3,840,526		$	3,251,538
Ratio of net charge-offs (annualized) to average portfolio loans outstanding		0.41	%		0.38	%		0.33	%		0.22	%

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CAPITOL BANCORP LIMITED

Selected Supplemental Data

ASSET QUALITY (in thousands):

	December 31
	2007		2006
Nonaccrual loans:
Loans secured by real estate:
Commercial	$	19,016	$	8,771
Residential (including multi-family)		13,381		6,808
Construction, land development and other land		29,756		8,583
Total loans secured by real estate		62,153		24,162
Commercial and other business-purpose loans		5,782		5,349
Consumer		66		215
Other		84		--
Total nonaccrual loans		68,085		29,726
Past due (>90 days) loans:
Loans secured by real estate:
Commercial		113		1,380
Residential (including multi-family)		1,116		526
Construction, land development and other land		2,531		1,116
Total loans secured by real estate		3,760		3,022
Commercial and other business-purpose loans		714		1,375
Consumer		66		151
Other		5		--
Total past due loans		4,545		4,548
Total nonperforming loans	$	72,630	$	34,274
Real estate owned and other repossessed assets		16,680		9,478
Total nonperforming assets	$	89,310	$	43,752

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CAPITOL BANCORP LIMITED

Selected Supplemental Data

EPS COMPUTATION COMPONENTS (in thousands):

	Periods Ended December 31
	Three Month Period				Year Ended
	2007		2006		2007		2006
Numerator—net income for the period	$	3,394	$	11,382	$	21,937	$	42,391
Denominator:
Weighted average number of shares outstanding, excluding unvested restricted shares (denominator for basic earnings per share)		17,109		15,979		16,967		15,772
Effect of dilutive securities:
Unvested restricted shares		57		95		70		86
Stock options		35		694		179		623
Total effect of dilutive securities		92		789		249		709
Denominator for diluted earnings per share—
Weighted average number of shares and potential dilution		17,201		16,768		17,216		16,481
Number of antidilutive stock options excluded from diluted earnings per share computation		2,120		--		1,063		--

AVERAGE BALANCES (in thousands):

	Periods Ended December 31
	Three Month Period				Year Ended
	2007		2006		2007		2006
Portfolio loans	$	4,172,669	$	3,381,488	$	3,840,526	$	3,251,538
Earning assets		4,445,084		3,654,472		4,133,488		3,519,689
Total assets		4,786,463		3,939,730		4,452,995		3,797,114
Deposits		3,774,592		3,172,965		3,540,241		3,059,500
Stockholders’ equity		390,475		342,360		383,558		327,531

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Capitol Bancorp’s National Network of Community Banks

Arizona Region:
Arrowhead Community Bank	Glendale, Arizona
Asian Bank of Arizona	Phoenix, Arizona
Bank of Tucson	Tucson, Arizona
Camelback Community Bank	Phoenix, Arizona
Mesa Bank	Mesa, Arizona
Southern Arizona Community Bank	Tucson, Arizona
Sunrise Bank of Albuquerque	Albuquerque, New Mexico
Sunrise Bank of Arizona	Phoenix, Arizona
Valley First Community Bank	Scottsdale, Arizona
Yuma Community Bank	Yuma, Arizona
California Region:
Bank of Escondido	Escondido, California
Bank of Feather River	Yuba City, California
Bank of San Francisco	San Francisco, California
Bank of Santa Barbara	Santa Barbara, California
Napa Community Bank	Napa, California
Point Loma Community Bank	Point Loma, California
Sunrise Bank of San Diego	San Diego, California
Sunrise Community Bank	Palm Desert, California
Colorado Region:
Fort Collins Commerce Bank	Fort Collins, Colorado
Larimer Bank of Commerce	Fort Collins, Colorado
Loveland Bank of Commerce	Loveland, Colorado
Great Lakes Region:
Ann Arbor Commerce Bank	Ann Arbor, Michigan
Bank of Auburn Hills	Auburn Hills, Michigan
Bank of Maumee	Maumee, Ohio
Bank of Michigan	Farmington Hills, Michigan
Brighton Commerce Bank	Brighton, Michigan
Capitol National Bank	Lansing, Michigan
Detroit Commerce Bank	Detroit, Michigan
Elkhart Community Bank	Elkhart, Indiana
Evansville Commerce Bank	Evansville, Indiana
Goshen Community Bank	Goshen, Indiana
Grand Haven Bank	Grand Haven, Michigan
Kent Commerce Bank	Grand Rapids, Michigan
Macomb Community Bank	Clinton Township, Michigan
Muskegon Commerce Bank	Muskegon, Michigan
Oakland Commerce Bank	Farmington Hills, Michigan
Ohio Commerce Bank	Beachwood, Ohio
Paragon Bank & Trust	Holland, Michigan
Portage Commerce Bank	Portage, Michigan
Midwest Region:
Adams Dairy Bank	Blue Springs, Missouri
Bank of Belleville	Belleville, Illinois
Community Bank of Lincoln	Lincoln, Nebraska
Summit Bank of Kansas City	Lee’s Summit, Missouri
Nevada Region:
1st Commerce Bank	Las Vegas, Nevada
Bank of Las Vegas	Las Vegas, Nevada
Black Mountain Community Bank	Henderson, Nevada
Desert Community Bank	Las Vegas, Nevada
Red Rock Community Bank	Las Vegas, Nevada
Northeast Region:
USNY Bank	Geneva, New York
Northwest Region:
Bank of Bellevue	Bellevue, Washington
Bank of Everett	Everett, Washington
Bank of Tacoma	Tacoma, Washington
High Desert Bank	Bend, Oregon
Issaquah Community Bank	Issaquah, Washington

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Capitol Bancorp’s National Network of Community Banks – Continued
Southeast Region:
Bank of Valdosta	Valdosta, Georgia
Community Bank of Rowan	Salisbury, North Carolina
First Carolina State Bank	Rocky Mount, North Carolina
Peoples State Bank	Jeffersonville, Georgia
Sunrise Bank of Atlanta	Atlanta, Georgia
Texas Region:
Bank of Fort Bend	Sugar Land, Texas
Bank of Las Colinas	Irving, Texas

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