Item 2.02. Results of Operations and Financial Condition.

On November 12, 2009, Capitol Bancorp Ltd. ("Capitol") issued a press release announcing it has established a valuation allowance of $91 million to reduce the deferred tax asset to approximately $17.6 million, which represents the amount of the asset estimated to be currently recoverable via carryback of current net operating losses. A copy of this press release is attached as Exhibit 99.1 to this Item 2.02.