CAPITOL WEALTH

Robert R. Hogan, President & CEO

At Capitol Wealth, we provide our customers wealth advisory solutions through a trusted advisor at many of our Capitol Bancorp banks. Besides growing noninterest income for the Corporation, our efforts are directed at assisting customers in preparing today, so they can be financially secure tomorrow.

Throughout 2007, I have had the opportunity to visit most of our affiliate banks, receiving a warm welcome and enthusiastic support from both bank presidents and their boards of directors. These personal visits have provided tremendous feedback that has enabled us to improve our customer service. Furthermore, board members have provided many introductions to qualified candidates who have joined our team as the wealth advisor expert, providing positive financial results to the customers of our local banks as well as the Corporation overall.

With that said, I am proud to report that we more than doubled our business in 2007. Here are our other achievements:

• Launched an acquisition strategy, purchasing an investment advisory firm and a commercial insurance agency, which added substantial assets under management with a healthy boost to our projected revenue;
• Grew total assets under management considerably;
• Added 15 new bank wealth programs, bringing the total number of financial advisors on our platform to 40;
• Deployed tools to our advisors assisting them in delivering financial planning advice to our customers; and,
• Implemented a branding strategy (“Prepare Today, Secure Tomorrow”) that can be found in our brochures, web site and electronic kiosks.

In 2008, we will continue to accelerate our growth, broaden our financial network, and improve our services to our clients through the following, multi-faceted plan:

• Expanding our acquisition pipeline;
• Obtaining a national trust charter; and,
• Recruiting additional talented financial advisors.

Finally, I would like to thank our employees for their contribution, our customers for their confidence and each of our bank presidents and their board members for their support. We look forward to serving your needs and exceeding your expectations.

— Robert R. Hogan, President & CEO