CBC Capitol Bancorp Ltd. Common Stock

2009 SUMMARY - Sale of Two Affiliate Banks Completed - Bank Divestiture Activities Continue with Seven Transactions Pending - Regional Consolidation of Banks in Process - Capitol Remains Well-Capitalized - Total Assets Approximate $5.2 Billion LANSING, Mich. and PHOENIX, Jan. 28 /PRNewswire-FirstCall/ -- A net loss attributable to Capitol Bancorp was reported for the fourth quarter of 2009 of $50.2 million or $2.88 per share, compared to earnings of approximately $1.1 million or $0.06 per share reported for the fourth quarter of 2008. Adverse operating results in 2009 resulted from significantly increased levels of loan losses and costs associated with other real estate owned. Consolidated assets decreased nearly nine percent to approximately $5.2 billion at December 31, 2009 from the approximate $5.7 billion reported at year-end 2008 (and nearly 19 percent on an annualized linked-quarter basis), as a result of the implementation of the Corporation's capital preservation and balance sheet deleveraging strategies. Consistent with these efforts, total portfolio loans approximated $4.0 billion at December 31, 2009, a 14 percent decline for the year. Total deposits reflected a modest two percent decline to $4.4 billion from the approximate $4.5 billion reported at December 31, 2008, as the Corporation continues to focus on core funding sources. Capitol's Chairman and CEO Joseph D. Reid said, "To mitigate the economic challenges that Capitol continues to face, we have implemented a strategy to deleverage the consolidated balance sheet and preserve core capital through regional consolidations and selective bank divestitures. These transactions support our objective to redeploy capital and resources to those markets currently facing challenges. We remain focused on enhancing balance sheet strength, improving corporate-wide liquidity and strengthening core capital ratios." Income taxes, which are subject to significant accounting policies, notably impacted quarterly and year-end operating results. For the year, income tax expense approximated $19 million, despite an operating loss, including an approximate $91 million adjustment reflected at September 30, 2009 to record a valuation allowance to reduce deferred income tax assets to zero. In 2009's fourth quarter, an income tax benefit of nearly $25 million was realized, as changes in federal tax laws permitted the "carryback" of current year losses to the preceding five years, representing amounts anticipated to be refunded in 2010. Affiliate Bank Divestitures and Regional Bank Consolidations Capitol previously announced intentions to sell certain affiliate banks. In the fourth quarter, Capitol announced that it had entered into definitive agreements to sell Ohio Commerce Bank, in Beachwood, Ohio and Mountain View Bank of Commerce, in Westminster, Colorado. Additionally, in January 2010 Capitol announced agreements to sell Adams Dairy Bank, in Blue Springs, Missouri, Bank of Las Colinas, in Irving, Texas and Community Bank of Lincoln in Nebraska. These, coupled with two other pending transactions involving affiliates in North Carolina and Illinois, reflect seven divestitures awaiting regulatory approvals and represent more than $450 million of total assets and projected cash proceeds approximating $37 million. The seven pending divestitures, with transaction book value multiples in a range of 1.3x to 1.6x of tangible equity, are expected to be completed in 2010. Sales of Yuma Community Bank and Bank of Santa Barbara were completed in the second half of 2009. Additionally, Capitol has announced its plans to consolidate affiliate banks in several regions. During the first quarter of 2009, nine Michigan bank affiliates were consolidated into what is today Michigan Commerce Bank, with applications to merge two additional Michigan-based affiliates into this entity currently pending regulatory approval. In the fourth quarter of 2009, six Phoenix, Arizona-based affiliate banks were consolidated and now operate as Sunrise Bank of Arizona. In Nevada, regulatory approval has been received to consolidate four affiliate banks into one charter, effective January 29, 2010 as Bank of Las Vegas. In Washington, the Corporation intends to consolidate four affiliate banks into one charter in 2010, subject to the approval of the banks' shareholders, to operate as Bank of the Northwest. Mr. Reid further stated, "These selective divestitures and consolidations will allow us to redeploy capital resources into those communities experiencing growth, as well as those markets currently challenged due to the volatile economy. Additionally, these initiatives will improve operational efficiencies within our network and help to strengthen our risk-management oversight nationwide." Quarterly Performance In the fourth quarter of 2009, consolidated net operating revenues approximated $44.6 million, a one percent decrease compared to the $45.1 million reported for the same period in 2008, reflecting the impact of a lower earning asset profile over the past twelve months, combined with elevated levels of nonperforming assets causing pressure on net interest income. A concerted effort to focus on core deposit funding sources, as referenced earlier, helped mitigate some of the margin pressure, but elevated levels of nonearning assets coupled with ongoing efforts to build system-wide liquidity yielded modest linked-quarter expansion in the net interest margin, to 3.04 percent from 3.00 percent and reflects slight improvement from 2008's fourth quarter margin of 2.98 percent. Cash and cash equivalents totaled $809 million, or nearly 16 percent of the Corporation's consolidated total assets at December 31, 2009. The Corporation continues to emphasize the reduction of operating expenses through salary and staffing reductions, operational efficiencies and tight controls on corporate overhead. Salaries and employee benefit costs declined 13.5 percent year-over-year and reflect an annualized 15.4 percent decrease on a linked-quarter basis. Noninterest, or operating, expenses increased year-over-year to $77.7 million in the quarter ended December 31, 2009. Both costs associated with foreclosed properties and other real estate owned (which approximated $26.2 million in the recent quarter versus $2.7 million in the 2008 period) and FDIC insurance premiums and other regulatory fees (which jumped from approximately $1.2 million in 2008's fourth quarter to approximately $4.2 million in the most recent three-month period) increased dramatically. Combined, these two expense areas increased to $30.4 million in the current quarter, representing a more than seven-fold increase from the combined $3.9 million figure posted in 2008. Other noninterest expense increased approximately $5 million year-over-year, primarily attributable to costs associated with restructuring activities. Concerted cost control efforts are reflected in the Corporation's core operating expense components, highlighted by the reduction in compensation-related costs, but were more than offset as total operating expenses increased approximately $33.7 million year-over-year due to increases in aforementioned nonperforming asset administration costs (+$23.5 million), regulatory fees (+ $3 million), goodwill impairment (+ $2.5 million) and nonrecurring equipment-related costs (+ $7 million) as the Corporation continues to delever its operations. The fourth quarter 2009 provision for loan losses increased to nearly $48.7 million versus $10.7 million for the corresponding period of 2008, but decreased somewhat from $48.8 million recorded in the third quarter of 2009. During the fourth quarter of 2009, net loan charge-offs approximated $57.3 million as the Corporation continued to aggressively manage its nonperforming loans. Results for the Year Net operating revenues approximated $185.0 million for 2009, a 2.8 percent decrease compared to the approximate $190.3 million in 2008, due to a lower earning-asset base and general softness across all major revenue components. Noninterest, or operating, expenses expanded 25 percent year-over-year to approximately $238.1 million, due to dramatic increases in costs associated with foreclosed properties and other real estate owned coupled with FDIC insurance premiums and other regulatory fees. For 2009, costs associated with foreclosed properties and other real estate owned increased to $45.7 million from $6.9 million reported in 2008, while FDIC insurance premiums and other regulatory fees increased from approximately $4.1 million in 2008 to $15.4 million in 2009. Combining both expense categories reflects $61.1 million for 2009, or more than five times greater than the combined $10.9 million total in 2008. A significant increase in the provision for loan losses, which totaled $161.4 million in 2009 versus approximately $82.5 million in 2008 was a primary contributor to Capitol's loss for the period. The net loss per share attributable to Capitol Bancorp for the year ended December 31, 2009 was $9.73, compared to a net loss of $1.67 per share in 2008. Bank performance, reserve building and related operating losses of the Corporation's banks in its Great Lakes Region and Arizona were major reasons for the net loss, coupled with an adverse income tax expense for the year, as discussed previously. Chairman Reid stated, "We expect to reduce, and ultimately eliminate, the deferred tax asset valuation allowance in future periods when we return to profitability." Balance Sheet With total capital resources approximating $432.1 million at December 31, 2009, the total capital-to-asset ratio was 8.37 percent, providing continued support for the Corporation's $5.2 billion balance sheet. Net charge-offs of 5.48 percent of average loans (annualized) for the quarter ended December 31, 2009 increased from the 2.90 percent reported for the third quarter and 1.30 percent reported for the corresponding period of 2008. The ratio of nonperforming loans to total portfolio loans was 7.59 percent at December 31, 2009 compared to 6.72 percent reported at September 30, 2009 and 3.59 percent at the beginning of the year. The continued increase in nonperforming assets is attributable to borrower stress and nonperformance, coupled with a virtually nonexistent market, especially in the state of Michigan, for the sale of real estate, which hinders the disposition of such assets. The allowance coverage ratio of nonperforming loans decreased to approximately 38 percent at December 31, 2009, while the allowance for loan losses increased nearly 100 basis points year-over-year, from 1.96 percent to 2.90 percent at year-end 2009, as annual provisioning exceeded the significant level of net charge-off activity during 2009. During the course of the year, Capitol experienced moderating rates of increase in total nonperforming assets, slowing from an approximate increase of 34 percent in the first quarter, to roughly 15 percent in the second quarter, nine percent in the third quarter and a more modest four percent increase in the final quarter of 2009. The Michigan market, struggling with significant secular change versus what had historically been cyclical challenges, continues to be the source of a dominant portion of nonperforming loans, representing approximately 47 percent of consolidated nonperforming loans although total Michigan-based loans compose only 32 percent of the Corporation's consolidated loan portfolio. Capitol's loan management practices continue to reflect a disciplined approach to review, analysis and proper identification of portfolio issues with a long-term view to value preservation. Subsequent Events A new accounting standard became effective for 2009 financial reporting which requires the consideration of subsequent events occurring after the balance-sheet date for matters which may require adjustment to, or disclosure in, financial statements. The review period for subsequent events extends up to and including the filing date of a public company's financial statements when filed with the Securities and Exchange Commission. Accordingly, the financial information in this announcement is subject to change. About Capitol Bancorp Limited Capitol Bancorp Limited (NYSE:CBC) is a national community banking company, with a network of separately chartered banks with operations in 17 states. Founded in 1988, the Corporation has executive offices in Lansing, Michigan, and Phoenix, Arizona. 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 ------------------ ------------------ 2009 2008 2009 2008 ---- ---- ---- ---- Condensed results of operations: Interest income $61,366 $73,179 $266,899 $304,315 Interest expense 23,075 34,496 110,517 140,466 ------ ------ ------- ------- Net interest income 38,291 38,683 156,382 163,849 Provision for loan losses 48,669 10,705 161,425 82,492 Noninterest income 6,269 6,439 28,641 26,432 Noninterest expense 77,716 44,003 238,135 190,388 Loss before income taxes (benefit) (81,825) (9,586) (214,537) (82,599) Net income (loss) attributable to Capitol Bancorp Limited $(50,150) $1,074 $(168,268) $(28,607) ======== ====== ========= ======== Net income (loss) per share attributable to Capitol Bancorp Limited: Basic $(2.88) $0.06 $(9.73) $(1.67) Diluted (2.88) 0.06 (9.73) (1.67) Book value per share at end of period 10.73 20.46 10.73 20.46 Common stock closing price at end of period $1.96 $7.80 $1.96 $7.80 Common shares outstanding at end of period 17,546,000 17,294,000 17,546,000 17,294,000 Number of shares used to compute: Basic loss per share 17,401,000 17,157,000 17,302,000 17,147,000 Diluted loss per share 17,401,000 17,194,000 17,302,000 17,147,000 4th Qtr. 3rd Qtr. 2nd Qtr. 1st Qtr. 4th Qtr. 2009 2009 2009 2009 2008 ---- ---- ---- ---- ---- Condensed summary of financial position: Total assets $5,163,491 $5,324,162 $5,726,148 $5,782,608 $5,654,836 Portfolio loans 4,049,211 4,189,534 4,580,428 4,695,317 4,735,229 Deposits 4,410,633 4,508,343 4,695,019 4,706,562 4,497,612 Capitol Bancorp Limited stockholders' equity 188,236 237,934 321,585 337,491 353,848 Total capital $432,116 $484,004 $631,874 $656,942 $680,361 Key performance ratios: Return on average assets -- -- -- -- 0.08% Return on average Capitol Bancorp Limited stockholders' equity -- -- -- -- 1.23% Net interest margin 3.04% 3.00% 3.02% 2.81% 2.98% Efficiency ratio 174.41% 117.50% 108.64% 117.87% 97.52% Asset quality ratios: Allowance for loan losses / portfolio loans 2.90% 3.01% 2.49% 2.12% 1.96% Total nonperforming loans / portfolio loans 7.59% 6.72% 5.78% 4.95% 3.59% Total nonperforming assets / total assets 8.12% 7.55% 6.44% 5.53% 4.20% Net charge-offs (annualized) / average portfolio loans 5.48% 2.90% 1.83% 1.83% 1.30% Allowance for loan losses / nonperforming loans 38.22% 44.79% 43.17% 42.86% 54.66% Capital ratios: Capitol Bancorp Limited stockholders' equity / total assets 3.65% 4.47% 5.62% 5.84% 6.26% Total capital / total assets 8.37% 9.09% 11.03% 11.36% 12.03% ------------------------------------------------------------------------- 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 "expect," "intend," "believe," "estimate," "may," "will," "anticipate" and "should" and similar expressions also identify forward-looking statements 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. CAPITOL BANCORP LIMITED Condensed Consolidated Statements of Operations (Unaudited) (in thousands, except per share data) Three Months Ended Year Ended December 31 December 31 ------------------ ------------------ 2009 2008 2009 2008 ---- ---- ---- ---- INTEREST INCOME: Portfolio loans (including fees) $60,065 $71,792 $263,002 $296,689 Loans held for sale 158 93 902 774 Taxable investment securities 241 182 673 571 Federal funds sold 10 342 99 3,822 Other 892 770 2,223 2,459 --- --- ----- ----- Total interest income 61,366 73,179 266,899 304,315 INTEREST EXPENSE: Deposits 18,332 27,544 87,312 112,370 Debt obligations and other 4,743 6,952 23,205 28,096 ----- ----- ------ ------ Total interest expense 23,075 34,496 110,517 140,466 ------ ------ ------- ------- Net interest income 38,291 38,683 156,382 163,849 PROVISION FOR LOAN LOSSES 48,669 10,705 161,425 82,492 ------ ------ ------- ------ Net interest income (deficiency) after provision for loan losses (10,378) 27,978 (5,043) 81,357 NONINTEREST INCOME: Service charges on deposit accounts 1,345 1,565 5,914 5,881 Trust and wealth-management revenue 1,146 1,183 4,957 6,182 Fees from origination of non-portfolio residential mortgage loans 739 732 3,925 3,642 Gain on sales of government-guaranteed loans 924 229 2,811 2,060 Realized gains (losses) on sale of investment securities available for sale (35) - 7 50 Gain on sale of bank subsidiary - - 1,187 - Other 2,150 2,730 9,840 8,617 ----- ----- ----- ----- Total noninterest income 6,269 6,439 28,641 26,432 NONINTEREST EXPENSE: Salaries and employee benefits 22,577 26,105 99,554 108,702 Occupancy 4,691 4,776 19,289 18,648 Equipment rent, depreciation and maintenance 9,555 2,666 19,235 12,361 Costs associated with foreclosed properties and other real estate owned 26,244 2,746 45,674 6,878 FDIC insurance premiums and other regulatory fees 4,154 1,161 15,412 4,060 Other 10,495 6,549 38,971 39,739 ------ ----- ------ ------ Total noninterest expense 77,716 44,003 238,135 190,388 ------ ------ ------- ------- Loss before income taxes (benefit) (81,825) (9,586) (214,537) (82,599) Income taxes (benefit) (25,786) (4,720) 18,935 (30,148) ------- ------ ------ ------- NET LOSS (56,039) (4,866) (233,472) (52,451) Less interest in net losses attributable to noncontrolling interests 5,889 5,940 65,204 23,844 ----- ----- ------ ------ NET INCOME (LOSS) ATTRIBUTABLE TO CAPITOL BANCORP LIMITED $(50,150) $1,074 $(168,268) $(28,607) ======== ====== ========= ======== NET INCOME (LOSS) PER SHARE ATTRIBUTABLE TO CAPITOL BANCORP LIMITED: Basic $(2.88) $0.06 $(9.73) $(1.67) ====== ===== ====== ====== Diluted $(2.88) $0.06 $(9.73) $(1.67) ====== ===== ====== ====== CAPITOL BANCORP LIMITED Condensed Consolidated Balance Sheets (in thousands, except share data) December 31 -------------------- (Unaudited) 2009 2008 ---- ---- ASSETS ------ Cash and due from banks $88,188 $136,499 Money market and interest-bearing deposits 698,882 391,836 Federal funds sold 21,851 96,031 ------ ------ Cash and cash equivalents 808,921 624,366 Loans held for sale 16,132 10,474 Investment securities: Available for sale, carried at fair value 40,778 15,584 Held for long-term investment, carried at amortized cost which approximates fair value 30,586 32,856 ------ ------ Total investment securities 71,364 48,440 Portfolio loans: Loans secured by real estate: Commercial 1,996,032 2,115,515 Residential (including multi-family) 781,772 879,754 Construction, land development and other land 509,474 797,486 ------- ------- Total loans secured by real estate 3,287,278 3,792,755 Commercial and other business-purpose loans 684,253 845,593 Consumer 44,168 61,340 Other 33,512 35,541 ------ ------ Total portfolio loans 4,049,211 4,735,229 Less allowance for loan losses (117,519) (93,040) -------- ------- Net portfolio loans 3,931,692 4,642,189 Premises and equipment 48,386 59,249 Accrued interest income 15,585 18,871 Goodwill 67,678 72,342 Other real estate owned 111,820 67,171 Other assets 91,913 111,734 ------ ------- TOTAL ASSETS $5,163,491 $5,654,836 ========== ========== LIABILITIES AND EQUITY ---------------------- LIABILITIES: Deposits: Noninterest-bearing $679,100 $700,786 Interest-bearing 3,731,533 3,796,826 --------- --------- Total deposits 4,410,633 4,497,612 Debt obligations: Notes payable and short-term borrowings 276,159 446,925 Subordinated debentures 167,441 167,293 ------- ------- Total debt obligations 443,600 614,218 Accrued interest on deposits and other liabilities 44,583 29,938 ------ ------ Total liabilities 4,898,816 5,141,768 EQUITY: Capitol Bancorp Limited stockholders' equity: Preferred stock, 20,000,000 shares authorized; none issued and outstanding Common stock, no par value, 50,000,000 shares authorized; issued and outstanding: 2009 - 17,545,631 shares 2008 - 17,293,908 shares 277,718 274,018 Retained earnings (88,850) 80,255 Undistributed common stock held by employee-benefit trust (569) (569) Fair value adjustment (net of tax effect) for investment securities available for sale (accumulated other comprehensive income) (63) 144 --- --- Total Capitol Bancorp Limited stockholders' equity 188,236 353,848 Noncontrolling interests in consolidated subsidiaries 76,439 159,220 ------ ------- Total equity 264,675 513,068 ------- ------- TOTAL LIABILITIES AND EQUITY $5,163,491 $5,654,836 ========== ========== CAPITOL BANCORP LIMITED Allowance for Loan Losses Activity ALLOWANCE FOR LOAN LOSSES ACTIVITY (in thousands): Periods Ended December 31 ------------------------------------------- Three Month Period Year Ended ------------------ ------------------- 2009 2008 2009 2008 ---- ---- ---- ---- Allowance for loan losses at beginning of period $126,188 $97,585 $93,040 $58,124 Loans charged-off: Loans secured by real estate: Commercial (14,695) (3,794) (25,913) (9,217) Residential (including multi-family) (17,907) (3,350) (36,120) (8,942) Construction, land development and other land (13,262) (5,214) (38,990) (20,668) ------- ------ ------- ------- Total loans secured by real estate (45,864) (12,358) (101,023) (38,827) Commercial and other business-purpose loans (12,763) (3,066) (34,102) (11,116) Consumer (371) (199) (1,402) (461) Other -- (10) (35) (43) --- --- --- --- Total charge-offs (58,998) (15,633) (136,562) (50,447) Recoveries: Loans secured by real estate: Commercial 255 87 406 986 Residential (including multi-family) 90 59 343 648 Construction, land development and other land 1,142 102 1,647 342 ----- --- ----- --- Total loans secured by real estate 1,487 248 2,396 1,976 Commercial and other business-purpose loans 155 112 1,197 798 Consumer 18 23 135 97 Other -- -- 2 -- --- --- --- --- Total recoveries 1,660 383 3,730 2,871 ----- --- ----- ----- Net charge-offs (57,338) (15,250) (132,832) (47,576) Additions to allowance charged to expense 48,669 10,705 161,425 82,492 ------ ------ ------- ------ Less allowance for loan losses of subsidiaries no longer consolidated -- -- (4,114) -- --- --- ------ --- Allowance for loan losses at December 31 $117,519 $93,040 $117,519 $93,040 ======== ======= ======== ======= Average total portfolio loans for period ended December 31 $4,188,542 $4,701,336 $4,507,293 $4,621,247 ========== ========== ========== ========== Ratio of net charge-offs (annualized) to average portfolio loans outstanding 5.48% 1.30% 2.95% 1.03% ==== ==== ==== ==== CAPITOL BANCORP LIMITED Asset Quality Data ASSET QUALITY (in thousands): Dec. 31 Sept. 30 June 30 March 31 ---------- ---------- ---------- ---------- 2009 2009 2009 2009 ---- ---- ---- ---- Nonaccrual loans: Loans secured by real estate: Commercial $131,990 $101,704 $84,879 $68,537 Residential (including multi-family) 55,553 54,226 57,764 62,961 Construction, land development and other land 84,276 86,720 87,055 77,861 ------ ------ ------ ------ Total loans secured by real estate 271,819 242,650 229,698 209,359 Commercial and other business-purpose loans 23,063 25,002 24,767 17,233 Consumer 380 513 586 356 --- --- --- --- Total nonaccrual loans 295,262 268,165 255,051 226,948 Past due (>/=90 days) loans and accruing interest: Loans secured by real estate: Commercial 6,234 4,520 2,706 2,345 Residential (including multi-family) 228 1,787 1,318 2,371 Construction, land development and other land 3,713 2,990 4,284 109 ----- ----- ----- --- Total loans secured by real estate 10,175 9,297 8,308 4,825 Commercial and other business-purpose loans 1,546 4,223 1,152 636 Consumer 534 29 42 50 --- --- --- --- Total past due loans 12,255 13,549 9,502 5,511 ------ ------ ----- ----- Total nonperforming loans $307,517 $281,714 $264,553 $232,459 ======== ======== ======== ======== Real estate owned and other repossessed assets 111,885 120,107 103,953 87,074 ------- ------- ------- ------ Total nonperforming assets $419,402 $401,821 $368,506 $319,533 ======== ======== ======== ======== CAPITOL BANCORP LIMITED Selected Supplemental Data EPS COMPUTATION COMPONENTS (in thousands): Periods Ended December 31 ------------------------------------------ Three Month Period Year Ended ------------------ ------------------ 2009 2008 2009 2008 ---- ---- ---- ---- Numerator-net loss attributable to Capitol Bancorp Limited for the period $(50,150) $1,074 $(168,268) $(28,607) ======== ====== ========= ======== Denominator: Weighted average number of shares outstanding, excluding unvested restricted shares (denominator for basic earnings per share) 17,401 17,157 17,302 17,147 Effect of dilutive securities: Unvested restricted shares -- 37 -- -- Stock options -- -- -- -- --- --- --- --- Total effect of dilutive securities -- 37 -- -- --- --- --- --- Denominator for diluted net loss per share- Weighted average number of shares and potential dilution 17,401 17,194 17,302 17,147 ====== ====== ====== ====== Number of antidilutive stock options excluded from diluted net loss per share computation 2,504 2,374 2,100 2,371 ===== ===== ===== ===== Number of antidilutive unvested restricted shares excluded from diluted net loss per share computation 145 93 145 136 === === === === AVERAGE BALANCES (in thousands): Periods Ended December 31 -------------------------------------------- Three Month Period Year Ended ------------------ ------------------ 2009 2008 2009 2008 ---- ---- ---- ---- Portfolio loans $4,188,542 $4,701,336 $4,507,293 $4,621,247 Earning assets 5,043,815 5,198,807 5,258,680 5,024,152 Total assets 5,335,720 5,551,803 5,607,375 5,372,138 Deposits 4,534,616 4,414,295 4,619,198 4,217,345 Capitol Bancorp Limited stockholders' equity 225,033 349,728 299,551 371,025 Capitol Bancorp's National Network of Community Banks Arizona Region: Bank of Tucson Tucson, Arizona Central Arizona Bank Casa Grande, Arizona Southern Arizona Community Bank Tucson, Arizona Sunrise Bank of Albuquerque Albuquerque, New Mexico Sunrise Bank of Arizona Phoenix, Arizona California Region: Bank of Escondido Escondido, California Bank of Feather River Yuba City, California Bank of San Francisco San Francisco, California Napa Community Bank Napa, California Point Loma Community Bank San Diego, 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 Mountain View Bank of Commerce Westminster, Colorado Great Lakes Region: Bank of Auburn Hills Auburn Hills, Michigan Bank of Maumee Maumee, Ohio Bank of Michigan Farmington Hills, Michigan Capitol National Bank Lansing, Michigan Elkhart Community Bank Elkhart, Indiana Evansville Commerce Bank Evansville, Indiana Goshen Community Bank Goshen, Indiana Michigan Commerce Bank Ann Arbor, Michigan Ohio Commerce Bank Beachwood, Ohio Paragon Bank & Trust Holland, 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 North 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 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 Pisgah Community Bank Asheville, North Carolina Sunrise Bank of Atlanta Atlanta, Georgia Texas Region: Bank of Fort Bend Sugar Land, Texas Bank of Las Colinas Irving, Texas DATASOURCE: Capitol Bancorp Limited CONTACT: Analysts: Michael M. Moran, Chief of Capital Markets, +1-877-884-5662, or Media Contact: Stephanie Swan, Director of Shareholder Services, +1-517-372-7402 Web Site: http://www.capitolbancorp.com/

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