Capital Crossing Bank Announces Quarterly Results

Capital Crossing Bank (NASDAQ:CAPX) (the "Bank")
reported consolidated net income of $3.0 million, or $0.46 per diluted
share, for the first quarter of 2006, compared to consolidated net
income of $4.7 million, or $0.65 per diluted share, for the same
period in 2005.
   Nicholas W. Lazares, the Bank's Chairman and Co-Chief Executive
Officer, stated, "We are pleased to report another solid quarter at
Capital Crossing Bank." Mr. Lazares further stated, "A significant
portion of the Bank's earnings arises from the recognition of
"transactional" income. In the first quarter of 2006, the Bank
recognized $7.8 million of transactional income, including $5.3
million of accelerated interest income associated with loan and lease
payoffs, $1.3 million on gain on sales of loans and $1.2 million in
net gain on sales of other real estate owned and property in
possession. By contrast, in the first quarter of 2005, the Bank
recognized $9.8 million of transactional income, including $6.3
million of accelerated interest income associated with loan and lease
payoffs and $3.5 million in net gain on sales of other real estate
owned and property in possession. Since the level of transactional
income, including loan and lease payoffs, is unpredictable from
quarter to quarter, the Bank's earnings may fluctuate significantly in
the future."
   Richard Wayne, the Bank's President and Co-Chief Executive
Officer, explained that, "The volume of our loan acquisitions can also
be unpredictable from quarter-to-quarter. For example, in the first
quarter of 2006, we purchased loans with outstanding principal
balances of $34.8 million for a purchase price of $29.4 million,
compared to the same period in 2005, when we purchased loans with
outstanding principal balances of $50.9 million for a purchase price
of $44.4 million." Mr. Wayne continued, "During the course of our
review of available loan portfolios, we will, in some cases, decline
to bid on a portfolio after analyzing the results of our due diligence
review, or, in other instances, be outbid by other purchasers. We
simply cannot predict how often we will successfully acquire a loan
portfolio."
   Mr. Wayne further stated, "Our total non-performing assets
increased $4.3 million from $42.5 million at December 31, 2005 to
$46.7 million at March 31, 2006. While a substantial majority of the
loan and leases we have acquired in recent years have been performing,
we have also acquired appropriately priced non-performing loans and
leases. At March 31, 2006, we held loans and leases with net
investment balances of $11.8 million which were acquired as
non-performing, compared to $14.1 million at December 31, 2005.
Additionally, the balance of other real estate owned increased from
$14.0 million at December 31, 2005 to $17.3 million at March 31, 2006.
The primary source of other real estate owned is purchased loans that
are or become non-performing. In the past, our pricing strategy and
the level of discount we obtain on such loans and leases has enabled
us to, over time, realize significant levels of transactional income
from these assets."
   During the first quarter of 2006, the Bank's leasing subsidiary,
Dolphin Capital Corp., originated leases with an aggregate investment
balance of $19.2 million, compared to the same period in 2005 when it
originated leases with an aggregate investment balance of $14.5
million. Dolphin Capital Corp.'s net income was $409,000 for the
quarter ended March 31, 2006 compared to $870,000 for the same period
in 2005.
   Since December 31, 2005, the Bank's book value per share has
increased $0.32 from $14.52 to $14.84 at March 31, 2006. Additionally,
the return on stockholders' equity was 15.46% for the first quarter of
2006 compared to 21.01% for the same period in 2005.
   The Bank continued to repurchase shares of its common stock under
its common stock repurchase program during the first quarter of 2006.
As of March 31, 2006, the Bank had repurchased 7,020,678 shares under
its current repurchase program and previous repurchase programs at an
average purchase price of $13.11 per share, and had an additional $5.0
million to invest under its current repurchase program. The Bank
initiated its first repurchase program in August 2000.
   Investors and interested parties will have the opportunity to
listen to management's discussion of the Bank's quarterly results in a
conference call to be held on Thursday, April 20th at 10:00 a.m.,
Eastern Time. The conference call will be broadcast over the investor
relations page of the Bank's website at www.capitalcrossing.com. For
those who cannot listen to the live broadcast, an audio replay of the
call will be available on the website or via telephone at
888-203-1112, access code #8633294. A replay of the call will be
available beginning at approximately 1:00 P.M. on April 20, 2006
through midnight on April 25, 2006.
   This press release contains a number of forward-looking statements
concerning the Bank's current expectations as to future growth and its
results of operations. Any statements that are not statements of
historical fact (including statements containing the words "believes,"
"plans," "anticipates," "expects," "estimates," "intends," "may,"
"projects," "will," "would," and similar expressions) should also be
considered to be forward-looking statements. There are a number of
important factors that could cause actual results or events to differ
materially from those indicated by such forward-looking statements,
including: the Bank's ability to successfully acquire loans at the
same volume and the same yields as it has historically, changes in
interest rates that adversely affect its business, the level of
transactional income realized by the Bank as a result of loan payoffs
and the sale of real estate and loans, the Bank's ability to
successfully diversify its asset base, the level of the Bank's
non-performing assets, the Bank's ability to successfully conduct its
leasing business, general economic conditions in the Bank's markets,
as well as those other factors detailed under Item 1A "Risk Factors"
in the Bank's Annual Report on Form 10-K for the year ended December
31, 2005, which important factors are incorporated herein by this
reference. The Bank disclaims any intention or obligation to update
any forward-looking statements as a result of developments occurring
after the date of this press release.
   Capital Crossing Bank is a Massachusetts-chartered, FDIC-insured
trust company with $1.0 billion in assets as of March 31, 2006. The
Bank operates as a commercial bank, providing financial products and
services to customers through its executive and main offices in
Boston, its website at www.capitalcrossing.com, and through its
leasing subsidiary Dolphin Capital Corp. located in Moberly, Missouri.
The Bank is a value oriented investor in whole loans and loan
portfolios generally secured by commercial, multi-family and
one-to-four family residential real estate and other business assets.

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                Capital Crossing Bank and Subsidiaries
                   Consolidated Financial Highlights
                              (Unaudited)

                                            March 31,    December 31,
                                                 2006         2005
                                          -------------  -----------
                                          (dollars in thousands, 
                                            except per share data)
Total assets                                $1,026,047   $1,106,158

Loans and leases:                              990,673    1,004,120
     Non-accretable discount                   (51,789)     (53,407)
     Accretable discount                       (84,257)     (84,894)
     Allowance for loan and lease losses       (14,558)     (15,585)
     Net deferred loan and lease income        (19,533)     (18,396)
                                            -----------  -----------

          Loans and leases, net                820,536      831,838
                                            -----------  -----------

Short-term investments                          30,884      120,807

Securities available for sale                   97,914       84,645

Deposits                                       670,994      723,388

Borrowed funds                                 198,070      218,849

REIT preferred stock                            64,758       64,758

Stockholders' equity                            77,212       76,499

Non-performing assets:
     Other real estate owned, net               17,324       14,003
     Other assets in possession                    407          506
     Non-performing loans and leases, net:
          Loans and leases acquired as non-
           performing                           11,811       14,078
          Loans and leases that became non-
           performing subsequent to
           acquisition                          17,197       13,880
                                            -----------  -----------

           Total non-performing assets, net     46,739       42,467
                                            -----------  -----------

Total non-performing assets, net as a
 percent to total assets                          4.56 %       3.84 %
Allowance for loan and lease losses as a
 percent of loans and leases, net of
     discount and deferred income                 1.74         1.84
Allowance for loan and lease losses as a
 percent of net non-performing
     loans and leases                            50.19        55.74


Book value per common share                     $14.84       $14.52
Tangible book value per common share             14.00        13.69

Shares outstanding, net                      5,203,189    5,269,184




                Capital Crossing Bank and Subsidiaries
       Consolidated Operating Results and Related Financial Data
                              (Unaudited)
                                                       Three Months 
                                                          Ended
                                                          March 31,
                                                     -----------------
                                                        2006     2005
                                                     -------- --------
                                                    (in thousands, 
                                                    except per share 
                                                    data)

Interest income - regularly scheduled                $19,045  $18,059
Interest income - transactional                        5,317    6,314
                                                     -------- --------

     Total interest income                            24,362   24,373
Interest expense                                      (9,753)  (8,200)
                                                     -------- --------

Net interest income                                   14,609   16,173
Credit for loan and lease losses, net                    549    1,040
                                                     -------- --------

Net interest income, after credit for loan and lease
 losses                                               15,158   17,213

Gain on sales of loans, net                            1,329        -
Other income                                             460      402

Operating expenses:
     Other real estate owned and assets in possession
      income, net                                        802    3,414
     Other operating expenses                        (10,621) (11,023)
                                                     -------- --------

          Total operating expenses                    (9,819)  (7,609)
                                                     -------- --------

Income before income taxes, minority interest and
 dividends on REIT preferred stock                     7,128   10,006
Provision for income taxes                            (3,185)  (4,391)
Minority interest, net of taxes                          (55)     (32)
Dividends on REIT preferred stock, net of taxes         (927)    (927)
                                                     -------- --------

     Net income                                       $2,961   $4,656
                                                     ======== ========


Weighted average shares outstanding:
     Basic                                             5,255    6,025
     Diluted                                           6,399    7,207

Earnings per share:
     Basic                                             $0.56    $0.77
     Diluted                                            0.46     0.65

Financial ratios (annualized):
     Return on average assets                           1.17%    1.81%
     Return on average stockholders' equity            15.46%   21.01%


Transactional income:
    Interest and fee income on loan and 
    lease pay-offs
          Non-accretable discount                       $684   $3,617
          Accretable discount                          2,926    2,204
          Other interest income                        1,707      493
                                                     -------- --------

               Total interest and fee income on loan
                and lease pay-offs                     5,317    6,314
          Gain on sale of loans, net                   1,329        -
          Gain on sale of other real estate owned and
           assets in possession, net                   1,202    3,473
                                                     -------- --------

                    Total transactional income        $7,848   $9,787
                                                     ======== ========

                Capital Crossing Bank and Subsidiaries
           Interest Rate and Loan and Lease Volume Analysis
                              (Unaudited)

                                                   Three Months Ended
                                                          March 31,
                                                   -------------------
                                                      2006      2005
                                                   ---------  --------
                                                       (dollars in 
                                                        thousands)
Weighted average yield/rate (annualized):
     Short-term investments                           4.40 %    2.42 %
     Securities available for sale                    4.71      4.68
     Loan and lease portfolio, net                   11.48     11.28

          Total interest-earning assets              10.36 %   10.09 %

     Interest bearing liabilities                     4.62 %    3.85 %

Interest rate spread                                  5.74 %    6.24 %

Net interest margin                                   6.21 %    6.69 %


Loan and lease volume:

     Loan originations                              $2,175      $508
     Loan acquisitions
          Loan balances                             34,796    50,908
          (Discount) premium, net                   (5,430)   (6,485)
                                                   --------  --------

               Loan acquisitions, net               29,366    44,423
                                                   --------  --------

                    Total loan volume               31,541    44,931
                                                   --------  --------

     Lease originations                             19,156    14,526
     Lease acquisitions, net                             -         -
                                                   --------  --------

          Total lease volume                        19,156    14,526
                                                   --------  --------

               Total loan and lease volume, net    $50,697   $59,457
                                                   ========  ========
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