1 EXHIBIT 12 CAPITOL BANCORP LTD. COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES (DOLLARS IN THOUSANDS) As of and for the Nine Months ended September 30 As of and for the years ended December 31 -------------------------- -------------------------------------------------------- 1997 1996 1996 1995 1994 1993 1992 Earnings: Income before income taxes $ 6,163 $ 5,144 $ 6,881 $ 4,808 $ 3,236 $1,487 $2,335 Interest expense 17,633 12,996 17,800 15,079 9,397 8,072 7,356 ------- ------- ------- ------- ------- ------ ------ Earnings for purposes of ratio $23,796 $18,140 $24,680 $19,887 $12,632 $9,558 $9,692 ======= ======= ======= ======= ======= ====== ====== Fixed Charges: Interest expense: Interest on deposits $17,165 $12,525 $17,292 $14,561 $ 8,784 $7,553 $7,269 Debt obligations and other 468 471 508 518 613 518 87 ------- ------- ------- ------- ------- ------ ------ Total interest expense 17,633 12,996 17,800 15,079 9,397 8,072 7,356 Amortization of debt issuance costs 0 0 0 0 0 0 0 Interest component of rent expense 0 0 0 0 0 0 0 ------- ------- ------- ------- ------- ------ ------ Total fixed charges for purposes of ratio $17,633 $12,996 $17,800 $15,079 $ 9,397 $8,072 $7,356 ======= ======= ======= ======= ======= ====== ====== Fixed charges excluding interest on deposits $468 $471 $508 $518 $613 $518 $87 ======= ======= ======= ======= ======= ====== ====== Ratio of earnings to fixed charges: Including interest on deposits 1.35 1.40 1.39 1.32 1.34 1.18 1.32 ======= ======= ======= ======= ======= ====== ====== Excluding interest on deposits 13.17 10.92 13.54 9.29 5.28 2.87 26.81 ======= ======= ======= ======= ======= ====== ======