Exhibit 13
 
 
   December 31, 2009




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##### 



Report of Independent Registered Public Accounting Firm




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##### 



Community Central Bank Corporation
Consolidated Balance Sheet
 December 31,2009
    
    
    2008(In thousands)
    
    
    (In thousands)AssetsCash and Cash EquivalentsCash and due from banks (Note 2)
    
    $
    33,115
    
    
    $
    9,162Federal funds sold
    
    
    1,048
    
    
    
    7,000Total Cash and Cash Equivalents
    
    
    34,163
    
    
    
    16,162Trading securities at fair value option (Note 3)
    
    
    
    
    
    
    17,463Securities available for sale, at fair value (Note 3)
    
    
    65,903
    
    
    
    76,552Securities held to maturity, at amortized cost (Note 3)
    
    
    3,467
    
    
    
    1,515FHLB stock
    
    
    5,877
    
    
    
    5,877Residential mortgage loans held for sale
    
    
    3,497
    
    
    
    3,302Loans (Note 4)Commercial real estate
    
    
    273,578
    
    
    
    284,811Commercial and industrial
    
    
    48,782
    
    
    
    38,714Residential real estate
    
    
    51,101
    
    
    
    54,409Home equity lines of credit
    
    
    21,889
    
    
    
    21,230Consumer loans
    
    
    6,961
    
    
    
    7,107Credit card loans
    
    
    856
    
    
    
    846Total Loans
    
    
    403,167
    
    
    
    407,117Allowance for Credit Losses (Note 5)
    
    
    (12,957
    )
    
    
    (7,315
    )Net Loans
    
    
    390,210
    
    
    
    399,802Net property and equipment (Note 6)
    
    
    9,106
    
    
    
    9,361Accrued interest receivable
    
    
    1,878
    
    
    
    2,479Other real estate
    
    
    9,300
    
    
    
    2,913Goodwill (Note 1)
    
    
    638
    
    
    
    638Intangible assets, net of amortization (Note 1)
    
    
    57
    
    
    
    80Cash surrender value of Bank Owned Life Insurance (Note 13)
    
    
    11,285
    
    
    
    10,975Other assets (Note 16)
    
    
    8,465
    
    
    
    9,831Total Assets
    
    $
    543,846
    
    
    $
    556,950
 The accompanying notes are an integral part of the financial statements.
 1




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##### 



Community Central Bank Corporation
Consolidated Balance Sheet
 December 31,2009
    
    
    2008(In thousands, except share data)LiabilitiesDepositsNoninterest bearing demand deposits
    
    $
    45,716
    
    
    $
    34,169NOW and money market accounts
    
    
    41,872
    
    
    
    38,154Savings deposits
    
    
    8,800
    
    
    
    8,585Time deposits (Note 7)
    
    
    304,743
    
    
    
    276,468Total Deposits
    
    
    401,131
    
    
    
    357,376Repurchase agreements (Note 8)
    
    
    41,106
    
    
    
    39,394Federal Home Loan Bank advances (Note 9)
    
    
    65,700
    
    
    
    108,200Accrued interest payable
    
    
    618
    
    
    
    1,050Other liabilities (Note 13)
    
    
    2,937
    
    
    
    3,779Subordinated debentures (at fair value option) (Note 11)
    
    
    8,366
    
    
    
    12,757Total Liabilities
    
    
    519,858
    
    
    
    522,556Stockholders Equity (Note 12)Preferred stock (1,000,000 shares authorized and 7,265 shares
and 3,050 shares issued and outstanding at December 31, 2009
and December 31, 2008, respectively)
    
    
    7,146
    
    
    
    3,050Common stock (No par value; 9,000,000 shares
authorized, and 3,737,181 and 3,734,781 issued and
outstanding at December 31, 2009 and December 31, 2008,
respectively)
    
    
    32,214
    
    
    
    32,125Retained deficit
    
    
    (15,536
    )
    
    
    (516
    )Accumulated other comprehensive gain (loss)
    
    
    164
    
    
    
    (265
    )Total Stockholders Equity
    
    
    23,988
    
    
    
    34,394Total Liabilities and Stockholders Equity
    
    $
    543,846
    
    
    $
    556,950
 The accompanying notes are an integral part of the financial statements.
 2




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##### 



Community Central Bank Corporation
Consolidated Statement of Operations
 Year Ended December 31,2009
    
    
    2008
    
    
    2007(In thousands, except per share data)Interest IncomeLoans (including fees)
    
    $
    25,570
    
    
    $
    25,640
    
    
    $
    27,904Taxable securities
    
    
    2,871
    
    
    
    3,743
    
    
    
    3,018Tax exempt securities
    
    
    326
    
    
    
    653
    
    
    
    1,402Federal funds sold
    
    
    30
    
    
    
    386
    
    
    
    601Total Interest Income
    
    
    28,797
    
    
    
    30,422
    
    
    
    32,925Interest ExpenseNOW and money market accounts
    
    
    263
    
    
    
    745
    
    
    
    2,335Savings deposits
    
    
    57
    
    
    
    226
    
    
    
    308Time deposits
    
    
    9,753
    
    
    
    11,141
    
    
    
    11,495Repurchase agreements and fed funds purchased
    
    
    1,278
    
    
    
    1,144
    
    
    
    912Federal Home Loan Bank advances
    
    
    4,205
    
    
    
    4,884
    
    
    
    4,059ESOP loan interest expense
    
    
    
    
    
    
    1
    
    
    
    6Subordinated debentures
    
    
    1,235
    
    
    
    906
    
    
    
    1,620Total Interest Expense
    
    
    16,791
    
    
    
    19,047
    
    
    
    20,735Net Interest Income
    
    
    12,006
    
    
    
    11,375
    
    
    
    12,190Provision for Credit Losses (Note 5)
    
    
    14,850
    
    
    
    9,502
    
    
    
    3,600Net Interest Income (Loss) after Provision for Credit Losses
    
    
    (2,844
    )
    
    
    1,873
    
    
    
    8,590Noninterest IncomeFiduciary income
    
    
    319
    
    
    
    370
    
    
    
    437Deposit service charges
    
    
    411
    
    
    
    488
    
    
    
    419Net realized security (loss) gain (Note 3)
    
    
    726
    
    
    
    214
    
    
    
    (74
    )Change in fair value of assets/liabilities carried at
fair value (Note 21)
    
    
    3,859
    
    
    
    7,541
    
    
    
    1,392Mortgage banking income
    
    
    3,311
    
    
    
    1,562
    
    
    
    2,365Other income
    
    
    944
    
    
    
    1,276
    
    
    
    1,153Total Noninterest Income
    
    
    9,570
    
    
    
    11,451
    
    
    
    5,692Noninterest ExpenseSalaries, benefits and payroll taxes (Note 13)
    
    
    8,613
    
    
    
    7,572
    
    
    
    7,898Net occupancy expense (Note 14)
    
    
    1,716
    
    
    
    1,822
    
    
    
    1,806Other operating expense (Note 15)
    
    
    9,828
    
    
    
    7,324
    
    
    
    4,149Total Noninterest Expense
    
    
    20,157
    
    
    
    16,718
    
    
    
    13,853Income (Loss) Before Taxes
    
    
    (13,431
    )
    
    
    (3,394
    )
    
    
    429Provision for Income Tax (Benefit) Expense (Note 16)
    
    
    1,207
    
    
    
    (1,432
    )
    
    
    (295
    )Net Income (Loss)
    
    $
    (14,638
    )
    
    $
    (1,962
    )
    
    $
    724Dividends declared on preferrred shares
    
    
    (382
    )
    
    
    
    
    
    
    Net Income (Loss) available on common shares
    
    $
    (15,020
    )
    
    $
    (1,962
    )
    
    $
    724
 The accompanying notes are an integral part of the financial statements.
 3




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##### 



Community Central Bank Corporation
Consolidated Statement of Operations
 Year Ended December 31,2009
    
    2008
    
    2007(In thousands, except per share data)Per share data:*Basic earnings
    
    $
    (4.02
    )
    
    $
    (0.53
    )
    
    $
    0.19Diluted earnings
    
    $
    (4.02
    )
    
    $
    (0.53
    )
    
    $
    0.19Cash dividend per common share
    
    $
    
    
    
    $
    0.10
    
    
    $
    0.24
 
 *
    
    Per share data has been retroactively adjusted to reflect the issuance of stock dividends. The accompanying notes are an integral part of the financial statements.
 4




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##### 



Community Central Bank Corporation
Consolidated Statement of Comprehensive Income
 Year Ended December 31,2009
    
    
    2008
    
    
    2007(In thousands)Net Income (Loss) as Reported
    
    
    ($14,638
    )
    
    
    ($1,962
    )
    
    $
    724Other Comprehensive Income (Loss)Change in unrealized net gain (loss) on securities
available for sale, net of tax of $221 in 2009, $175 in 2008,
and $(70) in 2007
    
    $
    429
    
    
    $
    339
    
    
    
    ($136
    )Comprehensive Income (Loss)
    
    
    ($14,209
    )
    
    
    ($1,623
    )
    
    $
    588
 The accompanying notes are an integral part of the financial statements.
 5




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##### 



Community Central Bank Corporation
Consolidated Statement of Changes in Stockholders Equity
 AccumulatedRetained
    
    
    Unearned
    
    
    OtherPreferred
    
    
    Common
    
    
    Earnings
    
    
    Employee
    
    
    Comprehensive
    
    
    TotalStock
    
    
    Stock
    
    
    (Deficit)
    
    
    Benefits
    
    
    Income (Loss)
    
    
    Equity(In thousands)Balance January 1, 2007
    
    $
    
    
    
    $
    33,220
    
    
    $
    4,303
    
    
    $
    (95
    )
    
    $
    (763
    )
    
    $
    36,665Cumulative effect of adoption
of the fair value option
    
    
    
    
    
    
    
    
    
    
    (420
    )
    
    
    
    
    
    
    
    
    
    
    (420
    )Cash dividend
    
    
    
    
    
    
    
    
    
    
    (931
    )
    
    
    
    
    
    
    
    
    
    
    (931
    )Stock awards
    
    
    
    
    
    
    21
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    21Stock options exercised
    
    
    
    
    
    
    320
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    320Share based compensation
    
    
    
    
    
    
    31
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    31Stock dividend (Note 12)
    
    
    
    
    
    
    1,879
    
    
    
    (1,879
    )
    
    
    
    
    
    
    
    
    
    
    Net income for 2007
    
    
    
    
    
    
    
    
    
    
    724
    
    
    
    
    
    
    
    
    
    
    
    724Release of ESOP shares
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    59
    
    
    
    
    
    
    
    59Repurchase of common stock
    
    
    
    
    
    
    (3,400
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (3,400
    )Other comprehensive income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    159
    
    
    
    159Balance December 31, 2007
    
    $
    
    
    
    $
    32,071
    
    
    $
    1,797
    
    
    $
    (36
    )
    
    $
    (604
    )
    
    $
    33,228Issuance of Preferred Stock
    
    
    3,050
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    3,050Cash dividend
    
    
    
    
    
    
    
    
    
    
    (351
    )
    
    
    
    
    
    
    
    
    
    
    (351
    )Stock awards
    
    
    
    
    
    
    17
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    17Share based compensation
    
    
    
    
    
    
    57
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    57Stock dividend (Note 12)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Net loss for 2008
    
    
    
    
    
    
    
    
    
    
    (1,962
    )
    
    
    
    
    
    
    
    
    
    
    (1,962
    )Release of ESOP shares
    
    
    
    
    
    
    (13
    )
    
    
    
    
    
    
    36
    
    
    
    
    
    
    
    23Repurchase of common stock
    
    
    
    
    
    
    (7
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (7
    )Other comprehensive income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    339
    
    
    
    339Balance December 31, 2008
    
    $
    3,050
    
    
    $
    32,125
    
    
    $
    (516
    )
    
    $
    
    
    
    $
    (265
    )
    
    $
    34,394Issuance of Preferred Stock
    
    
    4,096
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    4,096Cash dividend
    
    
    
    
    
    
    
    
    
    
    (382
    )
    
    
    
    
    
    
    
    
    
    
    (382
    )Stock awards
    
    
    
    
    
    
    5
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    5Share based compensation
    
    
    
    
    
    
    84
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    84Net loss for 2009
    
    
    
    
    
    
    
    
    
    
    (14,638
    )
    
    
    
    
    
    
    
    
    
    
    (14,638
    )Other comprehensive income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    429
    
    
    
    429Balance December 31, 2009
    
    $
    7,146
    
    
    $
    32,214
    
    
    $
    (15,536
    )
    
    $
    
    
    
    $
    164
    
    
    $
    23,988
 The accompanying notes are an integral part of the financial statements.
 6




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##### 



Community Central Bank Corporation
Consolidated Statement of Cash Flow
 Year Ended December 31,2009
    
    
    2008
    
    
    2007(In thousands, except per share data)Operating ActivitiesNet income (loss)
    
    $
    (14,638
    )
    
    $
    (1,962
    )
    
    $
    724Adjustments to reconcile net income to net cash flow
from operating activities:Net amortization of security premium
    
    
    577
    
    
    
    67
    
    
    
    207Net (gain) loss on available for sale securities
    
    
    (726
    )
    
    
    (214
    )
    
    
    74Net gain on instruments at fair value
    
    
    (3,859
    )
    
    
    (7,541
    )
    
    
    (1,392
    )Provision for credit losses
    
    
    14,850
    
    
    
    9,502
    
    
    
    3,600Depreciation expense
    
    
    640
    
    
    
    667
    
    
    
    705Deferred income tax (benefit)
    
    
    (2,934
    )
    
    
    (943
    )
    
    
    (561
    )ESOP compensation expense
    
    
    
    
    
    
    36
    
    
    
    59Fair value of employee stock option expense
    
    
    84
    
    
    
    57
    
    
    
    31Stock awards
    
    
    5
    
    
    
    17
    
    
    
    21Decrease in accrued interest receivable
    
    
    601
    
    
    
    56
    
    
    
    64Decrease (increase) in other assets
    
    
    3,991
    
    
    
    9,541
    
    
    
    (2,040
    )(Decrease) increase in accrued interest payable
    
    
    (432
    )
    
    
    32
    
    
    
    (239
    )(Decrease) increase in other liabilities
    
    
    (1,123
    )
    
    
    1,142
    
    
    
    1,008Loans originated held for sale
    
    
    (136,175
    )
    
    
    (70,967
    )
    
    
    (109,956
    )Loans sold held for sale
    
    
    135,980
    
    
    
    72,513
    
    
    
    108,548(Increase) in other real estate
    
    
    (6,837
    )
    
    
    (2,059
    )
    
    
    (746
    )Impairment of goodwill
    
    
    
    
    
    
    743
    
    
    
    Net Cash (Used in) Provided By Operating Activities
    
    
    (9,996
    )
    
    
    10,687
    
    
    
    107Investing ActivitiesSales, maturities, calls and prepayments of securities available for sale
    
    
    96,643
    
    
    
    70,241
    
    
    
    55,952Purchases of securities available for sale
    
    
    (84,723
    )
    
    
    (84,380
    )
    
    
    (41,999
    )Maturities, calls, sales and prepayments of trading securities
    
    
    17,463
    
    
    
    2,646
    
    
    
    13,606Transfer and purchase of trading securities
    
    
    
    
    
    
    
    
    
    
    (33,402
    )Maturities, calls, and prepayments of held to maturity securities
    
    
    132
    
    
    
    124
    
    
    
    36Purchases of held to maturity securities
    
    
    (2,556
    )
    
    
    (1,265
    )
    
    
    (987
    )Increase in loans
    
    
    (5,258
    )
    
    
    (31,572
    )
    
    
    (23,641
    )Purchases of property and equipment
    
    
    (385
    )
    
    
    (1,324
    )
    
    
    (184
    )Proceeds from sale of property and equipment
    
    
    
    
    
    
    
    
    
    
    60Net Cash Provided by (Used in) Investing Activities
    
    
    21,316
    
    
    
    (45,530
    )
    
    
    (30,559
    )Financing ActivitiesNet (decrease) increase in demand and savings deposits
    
    
    15,480
    
    
    
    (13,532
    )
    
    
    (8,799
    )Net (decrease) increase in time deposits
    
    
    28,275
    
    
    
    42,273
    
    
    
    (18,422
    )Net increase in short term borrowings
    
    
    1,712
    
    
    
    6,735
    
    
    
    16,971Issuance of subordinate debentures
    
    
    
    
    
    
    
    
    
    
    18,557Redemption of subordinate debentures
    
    
    
    
    
    
    
    
    
    
    (10,310
    )FHLB advances
    
    
    
    
    
    
    48,500
    
    
    
    43,000FHLB advance repayments
    
    
    (42,500
    )
    
    
    (44,810
    )
    
    
    (22,018
    )Payment of ESOP debt
    
    
    
    
    
    
    (36
    )
    
    
    (59
    )Stock options exercised
    
    
    
    
    
    
    
    
    
    
    320Preferred stock issuance
    
    
    4,096
    
    
    
    3,050
    
    
    
    Cash dividends paid
    
    
    (382
    )
    
    
    (351
    )
    
    
    (931
    )Repurchase of stock
    
    
    
    
    
    
    (7
    )
    
    
    (3,400
    )Net Cash Provided by Financing Activities
    
    
    6,681
    
    
    
    41,822
    
    
    
    14,909Increase (decrease) in Cash and Cash Equivalents
    
    
    18,001
    
    
    
    6,979
    
    
    
    (15,543
    )Cash and Cash Equivalents at the Beginning of the Period
    
    
    16,162
    
    
    
    9,183
    
    
    
    24,726Cash and Cash Equivalents at the End of the Period
    
    $
    34,163
    
    
    $
    16,162
    
    
    $
    9,183Supplemental Disclosure of Cash Flow InformationInterest paid
    
    $
    17,223
    
    
    $
    19,015
    
    
    $
    20,974Federal Taxes Paid
    
    
    
    
    
    
    
    
    
    
    300Supplemental noncash disclosure:Loans transferred to other real estate owned
    
    
    9,883
    
    
    
    5,777
    
    
    
    878
 7




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##### 



Community Central Bank Corporation
Notes to Consolidated Financial Statements
  (1) Summary of Significant Accounting Policies
  Principles of Consolidation:
 Nature of Operations:
 Trading Securities:
 Fair Value Option for Financial Assets and Financial Liabilities: Financial Instruments, Fair Value
Measurements and Disclosures.
  Fair Value Hierarchy
 Fair Value Measurements,
 Level 1
    
    Valuation is based upon quoted prices for identical instruments traded
in active markets.Level 2
    
    Valuation is based upon quoted prices for similar instruments in
active markets, quoted prices for identical or similar instruments in markets
that are not active, and model-based valuation techniques for which all
significant assumptions are observable in the market.
 8




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##### 



Community Central Bank Corporation
Notes to Consolidated Financial Statements
 Level 3
    
    Valuation contains unobservable input(s) and is used to the extent
observable inputs are not available, thereby allowing for situations in which
there is little, if any, market activity. Level 3 instruments typically
include, in addition to unobservable or Level 3 components, observable
components.
 Securities:
 Federal Home Loan Bank Stock:
 Loans:
 Loans Held for Sale:
 Allowance for Credit Losses:
 Foreclosed Assets:
 Property and Equipment:
 Goodwill:
  9




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##### 



Community Central Bank Corporation
Notes to Consolidated Financial Statements
  Intangible Assets:
 Stock Option Plan:
 Earnings Per Share:
 Year Ended December 31,2009
    
    
    2008
    
    
    2007(In thousands of shares)Weighted average shares reconcilation is as follows:Basic
    
    
    3,736
    
    
    
    3,731
    
    
    
    3,833Effect of stock options
    
    
    
    
    
    
    
    
    
    
    42Diluted
    
    
    3,736
    
    
    
    3,731
    
    
    
    3,875
 Comprehensive Income:
 New Accounting Pronouncements: Fair Value Measurements and Disclosures Determining Fair Value When the Volume and Level of Activity for the
Asset and Liability Have Significantly Decreased and Identifying Transactions That
Are Not Orderly
 Financial
Instruments Interim
Disclosures about Fair Value of Financial Instruments) Disclosures about Fair Value of Financial Instruments
 10




---



##### 



Community Central Bank Corporation
Notes to Consolidated Financial Statements
 Subsequent
Events Subsequent Events)
 The FASB Accounting Standards
Codification and the Hierarchy of Generally Accepted Accounting Principles  a
replacement of FASB Statement No. 162 The FASB Accounting Standards Codification
 Fair Value Measurements and
Disclosures Fair Value Measurements and
Disclosures
 (2) Cash and Due from Banks
  11




---



##### 



Community Central Bank Corporation  Notes to Consolidated Financial Statements
 (3) Securities
  December 31, 2009Amortized
    
    
    Unrealized
    
    
    
    
    
    
    FairCost
    
    
    Gains
    
    
    Losses
    
    
    Value(In thousands)Securities Available for SaleUnited States government agencies
    
    $
    
    
    
    $
    
    
    
    $
    
    
    
    $
    U.S. agency mortgage backed securities
    
    
    41,847
    
    
    
    237
    
    
    
    (168
    )
    
    
    41,916U.S. agency collateralized mortgage obligations
    
    
    18,541
    
    
    
    321
    
    
    
    (23
    )
    
    
    18,839Municipal securities
    
    
    4,515
    
    
    
    24
    
    
    
    (105
    )
    
    
    4,434Mutual fund and Trust preferred securities
    
    
    750
    
    
    
    
    
    
    
    (36
    )
    
    
    714Total Securities Available for Sale
    
    
    65,653
    
    
    
    582
    
    
    
    (332
    )
    
    
    65,903Held to Maturity SecuritiesMunicipal securities
    
    
    560
    
    
    
    4
    
    
    
    (15
    )
    
    
    549Trust preferred securities
    
    
    250
    
    
    
    
    
    
    
    
    
    
    
    250U.S. agency mortgage backed securities
    
    
    2,657
    
    
    
    21
    
    
    
    (8
    )
    
    
    2,670Total Held to Maturity Securities
    
    
    3,467
    
    
    
    25
    
    
    
    (23
    )
    
    
    3,469Total Securities
    
    $
    69,120
    
    
    $
    607
    
    
    $
    (355
    )
    
    $
    69,372
  December 31, 2009
    
    
    December 31, 2008Fair Value
    
    
    Fair ValueTrading SecuritiesUnited States government agencies
    
    $
    
    
    
    $
    11,594U.S. agency collaterized mortgage obligations
    
    
    
    
    
    
    5,869Total Trading Securities Held at Fair Value
    
    $
    
    
    
    $
    17,463
 12




---



##### 



Community Central Bank Corporation  Notes to Consolidated Financial Statements
 December 31, 2008Amortized
    
    
    Unrealized
    
    
    FairCost
    
    
    Gains
    
    
    Losses
    
    
    Value(In thousands)Securities Available for SaleUnited States government agencies
    
    $
    12,029
    
    
    $
    15
    
    
    $
    (28
    )
    
    $
    12,016U.S. agency mortgage backed securities
    
    
    26,460
    
    
    
    311
    
    
    
    (70
    )
    
    
    26,701U.S. agency collateralized mortgage obligations
    
    
    25,682
    
    
    
    191
    
    
    
    (237
    )
    
    
    25,636Municipal securities
    
    
    12,032
    
    
    
    11
    
    
    
    (484
    )
    
    
    11,559Mutual fund and trust preferred securities
    
    
    750
    
    
    
    
    
    
    
    (110
    )
    
    
    640Total Securities Available for Sale
    
    
    76,953
    
    
    
    528
    
    
    
    (929
    )
    
    
    76,552Held to Maturity SecuritiesMunicipal securities
    
    
    610
    
    
    
    
    
    
    
    (18
    )
    
    
    592Trust preferred securities
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    U.S. agency mortgage backed securities
    
    
    905
    
    
    
    
    
    
    
    (3
    )
    
    
    902Total Held to Maturity Securities
    
    
    1,515
    
    
    
    
    
    
    
    (21
    )
    
    
    1,494Total Securities
    
    $
    78,468
    
    
    $
    528
    
    
    $
    (950
    )
    
    $
    78,046
   December 31, 2009Less than 12 Months
    
    
    Over 12 MonthsGross
    
    
    
    
    
    
    GrossUnrealized
    
    
    Fair
    
    
    Unrealized
    
    
    FairLosses
    
    
    Value
    
    
    Losses
    
    
    Value(In thousands)Securities Available for SaleUnited States government agencies
    
    $
    
    
    
    $
    
    
    
    $
    
    
    
    $
    U.S. agency mortgage backed securities
    
    
    (166
    )
    
    
    19,707
    
    
    
    (2
    )
    
    
    76U.S. agency collateralized mortgage obligations
    
    
    (15
    )
    
    
    3,265
    
    
    
    (8
    )
    
    
    662Municipal securities
    
    
    (20
    )
    
    
    1,026
    
    
    
    (85
    )
    
    
    2,115Mutual fund and other
    
    
    (5
    )
    
    
    495
    
    
    
    (31
    )
    
    
    219Total Securities Available for Sale
    
    $
    (206
    )
    
    $
    24,493
    
    
    $
    (126
    )
    
    $
    3,072
  13




---



##### 



Community Central Bank Corporation  Notes to Consolidated Financial Statements
 December 31, 2008Less than 12 Months
    
    
    Over 12 MonthsGross
    
    
    
    
    
    
    GrossUnrealized
    
    
    Fair
    
    
    Unrealized
    
    
    FairLosses
    
    
    Value
    
    
    Losses
    
    
    Value(In thousands)Securities Available for SaleUnited States government agencies
    
    $
    (28
    )
    
    $
    10,002
    
    
    $
    
    
    
    $
    U.S. agency mortgage backed securities
    
    
    (64
    )
    
    
    3,602
    
    
    
    (6
    )
    
    
    237U.S. agency collateralized mortgage obligations
    
    
    (234
    )
    
    
    10,407
    
    
    
    (3
    )
    
    
    59Municipal securities
    
    
    (484
    )
    
    
    9,890
    
    
    
    
    
    
    
    Mutual fund
    
    
    (110
    )
    
    
    640
    
    
    
    
    
    
    
    Total Securities Available for Sale
    
    $
    (920
    )
    
    $
    34,541
    
    
    $
    (9
    )
    
    $
    296
  14




---



##### 



Community Central Bank Corporation
Notes to Consolidated Financial Statements
  2009
    
    
    2008
    
    
    2007Amortized
    
    
    Fair
    
    
    Yield
    
    
    Amortized
    
    
    Fair
    
    
    Yield
    
    
    Amortized
    
    
    Fair
    
    
    YieldCost
    
    
    Value
    
    
    (%)
    
    
    Cost
    
    
    Value
    
    
    (%)
    
    
    Cost
    
    
    Value
    
    
    (%)(In thousands)U.S. Government debenturesOne year or less
    
    $
    
    
    
    $
    
    
    
    
    0.00
    %
    
    $
    12,029
    
    
    $
    12,016
    
    
    
    5.80
    %
    
    $
    2,102
    
    
    $
    2,123
    
    
    
    5.40
    %Over 1 year through five years
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    2,606
    
    
    
    2,643
    
    
    
    4.88
    %Over 5 years through 10 years
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    961
    
    
    
    988
    
    
    
    5.32
    %Over ten years
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    0.00
    %
    
    
    12,029
    
    
    
    12,016
    
    
    
    5.80
    %
    
    
    5,669
    
    
    
    5,754
    
    
    
    5.15
    %State and political subdivisions *One year or less
    
    
    30
    
    
    
    30
    
    
    
    4.32
    %
    
    
    30
    
    
    
    30
    
    
    
    5.85
    %
    
    
    697
    
    
    
    696
    
    
    
    4.60
    %Over 1 year through five years
    
    
    762
    
    
    
    755
    
    
    
    3.93
    %
    
    
    633
    
    
    
    636
    
    
    
    5.82
    %
    
    
    2,964
    
    
    
    2,952
    
    
    
    4.54
    %Over 5 years through 10 years
    
    
    730
    
    
    
    727
    
    
    
    4.17
    %
    
    
    3,523
    
    
    
    3,493
    
    
    
    6.07
    %
    
    
    4,323
    
    
    
    4,292
    
    
    
    5.79
    %Over ten years
    
    
    3,553
    
    
    
    3,471
    
    
    
    4.46
    %
    
    
    8,456
    
    
    
    7,992
    
    
    
    6.12
    %
    
    
    21,743
    
    
    
    20,955
    
    
    
    6.26
    %5,075
    
    
    
    4,983
    
    
    
    4.33
    %
    
    
    12,642
    
    
    
    12,151
    
    
    
    6.09
    %
    
    
    29,727
    
    
    
    28,895
    
    
    
    5.98
    %U.S. government mortgage-backed
and collateralized mortgage
obligations
    
    
    63,045
    
    
    
    63,425
    
    
    
    3.56
    %
    
    
    52,797
    
    
    
    52,989
    
    
    
    4.76
    %
    
    
    32,555
    
    
    
    32,393
    
    
    
    5.12
    %Mutual fund (CRA qualified)
    
    
    500
    
    
    
    495
    
    
    
    3.67
    %
    
    
    500
    
    
    
    490
    
    
    
    5.50
    %
    
    
    500
    
    
    
    491
    
    
    
    4.20
    %Trust preferred securities
    
    
    500
    
    
    
    469
    
    
    
    6.38
    %
    
    
    500
    
    
    
    400
    
    
    
    6.25
    %
    
    
    250
    
    
    
    250
    
    
    
    8.50
    %Total securities
    
    $
    69,120
    
    
    $
    69,372
    
    
    
    3.58
    %
    
    $
    78,468
    
    
    $
    78,046
    
    
    
    5.15
    %
    
    $
    68,701
    
    
    $
    67,783
    
    
    
    5.50
    %Memo:Securities with variable interest rates
included above. This includes U.S. government mortgage-backed
and collateralized mortgage
obligations, with all others fixed.
    
    
    4,002
    
    
    
    4,057
    
    
    
    
    
    
    
    10,437
    
    
    
    10,219
    
    
    
    
    
    
    
    8,687
    
    
    
    8,671
 
 *
    
    weighted yield on state and political subdivisions is calculated on a taxable equivalent basis and
is based on yield to maturity of the instruments.   (4) Loans
  15




---



##### 



Community Central Bank Corporation
Notes to Consolidated Financial Statements
    2009
    
    
    2008
    
    
    2007
    
    
    2006
    
    
    2005(In thousands)Commercial real estate (1)
    
    $
    273,578
    
    
    $
    284,811
    
    
    $
    264,685
    
    
    $
    236,399
    
    
    $
    201,348Commercial and industrial
    
    
    48,782
    
    
    
    38,714
    
    
    
    33,039
    
    
    
    28,393
    
    
    
    26,753Residential real estate
    
    
    51,101
    
    
    
    54,409
    
    
    
    60,799
    
    
    
    72,517
    
    
    
    74,601Home equity lines
    
    
    21,889
    
    
    
    21,230
    
    
    
    20,906
    
    
    
    17,614
    
    
    
    18,545Consumer loans
    
    
    6,961
    
    
    
    7,107
    
    
    
    9,754
    
    
    
    11,666
    
    
    
    13,054Credit cards
    
    
    856
    
    
    
    846
    
    
    
    729
    
    
    
    693
    
    
    
    650Total loans
    
    $
    403,167
    
    
    $
    407,117
    
    
    $
    389,912
    
    
    $
    367,282
    
    
    $
    334,951
 
 (1)
    
    Included in the category of commercial real estate in the above table are
real estate construction loans totaling $11.2 million, $22.9 million, $47.8
million, $42.4 million and $18.2 million for the years ended 2009, 2008, 2007,
2006 and 2005, respectively.    16




---



##### 



Community Central Bank Corporation
Notes to Consolidated Financial Statements
  (In thousands)2010
    
    $
    37,0642011 to 2014
    
    
    8,6602015 and thereafter
    
    
    3,058Total loans
    
    $
    48,782
   (In thousands)2010
    
    $
    10,8652011 to 2014
    
    
    2992015 and thereafter
    
    
    Total loans
    
    $
    11,164
  17




---



##### 



Community Central Bank Corporation
Notes to Consolidated Financial Statements
 (5) Allowance for Credit Losses
  December 31,2009
    
    
    2008
    
    
    2007
    
    
    2006
    
    
    2005(Dollars in thousands)Balance at beginning of the period
    
    $
    7,315
    
    
    $
    6,403
    
    
    $
    3,815
    
    
    $
    3,580
    
    
    $
    3,377Charge-offs:Commercial real estate
    
    
    7,257
    
    
    
    6,895
    
    
    
    338
    
    
    
    
    
    
    
    181Commercial and industrial
    
    
    1,205
    
    
    
    270
    
    
    
    110
    
    
    
    248
    
    
    
    57Residential real estate
    
    
    486
    
    
    
    426
    
    
    
    106
    
    
    
    21
    
    
    
    103Home equity lines
    
    
    538
    
    
    
    577
    
    
    
    131
    
    
    
    21
    
    
    
    Consumer loans
    
    
    237
    
    
    
    669
    
    
    
    382
    
    
    
    40
    
    
    
    171Credit cards
    
    
    54
    
    
    
    33
    
    
    
    33
    
    
    
    13
    
    
    
    12Total charge-offs
    
    
    9,777
    
    
    
    8,870
    
    
    
    1,100
    
    
    
    343
    
    
    
    524Recoveries:Commercial real estate
    
    
    72
    
    
    
    52
    
    
    
    
    
    
    
    
    
    
    
    1Commercial and industrial
    
    
    400
    
    
    
    218
    
    
    
    12
    
    
    
    14
    
    
    
    606Residential real estate
    
    
    23
    
    
    
    
    
    
    
    
    
    
    
    8
    
    
    
    Home equity lines
    
    
    3
    
    
    
    1
    
    
    
    
    
    
    
    
    
    
    
    Consumer loans
    
    
    71
    
    
    
    7
    
    
    
    69
    
    
    
    5
    
    
    
    18Credit cards
    
    
    
    
    
    
    2
    
    
    
    7
    
    
    
    1
    
    
    
    2Total recoveries
    
    
    569
    
    
    
    280
    
    
    
    88
    
    
    
    28
    
    
    
    627Net charge-offs
    
    
    9,208
    
    
    
    8,590
    
    
    
    1,012
    
    
    
    315
    
    
    
    (103
    )Provision charged to earnings
    
    
    14,850
    
    
    
    9,502
    
    
    
    3,600
    
    
    
    550
    
    
    
    100Balance at the end of the period
    
    $
    12,957
    
    
    $
    7,315
    
    
    $
    6,403
    
    
    $
    3,815
    
    
    $
    3,580As a percentage of total portfolio loans
    
    
    3.21
    %
    
    
    1.80
    %
    
    
    1.64
    %
    
    
    1.04
    %
    
    
    1.07
    %Ratio of net charge-offs (net recoveries)
during the period to average
loans during the period
    
    
    2.22
    %
    
    
    2.17
    %
    
    
    0.27
    %
    
    
    0.09
    %
    
    
    (0.03
    %)
   18




---



##### 



Community Central Bank Corporation
Notes to Consolidated Financial Statements
 Analysis of Allowance for Credit Losses
  Commercial
    
    Commercial
    
    Residential
    
    Home Equity
    
    Consumer
    
    CreditReal Estate
    
    and Industrial
    
    Real Estate
    
    Lines
    
    Loans
    
    Cards
    
    Unallocated
    
    Total(Dollars in thousands)Balances:December 31, 2009
    
    $
    8,537
    
    
    $
    1,195
    
    
    $
    1,736
    
    
    $
    682
    
    
    $
    616
    
    
    $
    66
    
    
    $
    125
    
    
    $
    12,957% of loans in category
    
    
    67.87
    %
    
    
    12.09
    %
    
    
    12.67
    %
    
    
    5.43
    %
    
    
    1.73
    %
    
    
    0.21
    %
    
    
    
    
    
    
    100.00
    %December 31, 2008
    
    $
    4,221
    
    
    $
    936
    
    
    $
    869
    
    
    $
    669
    
    
    $
    502
    
    
    $
    85
    
    
    $
    33
    
    
    $
    7,315% of loans in category
    
    
    70.00
    %
    
    
    9.50
    %
    
    
    13.40
    %
    
    
    5.20
    %
    
    
    1.70
    %
    
    
    0.20
    %
    
    
    
    
    
    
    100.00
    %December 31, 2007
    
    $
    4,360
    
    
    $
    302
    
    
    $
    824
    
    
    $
    396
    
    
    $
    314
    
    
    $
    50
    
    
    $
    157
    
    
    $
    6,403% of loans in category
    
    
    67.80
    %
    
    
    8.50
    %
    
    
    15.60
    %
    
    
    5.40
    %
    
    
    2.50
    %
    
    
    0.20
    %
    
    
    
    
    
    
    100.00
    %December 31, 2006
    
    $
    1,741
    
    
    $
    499
    
    
    $
    931
    
    
    $
    436
    
    
    $
    155
    
    
    $
    26
    
    
    $
    27
    
    
    $
    3,815% of loans in category
    
    
    64.40
    %
    
    
    7.70
    %
    
    
    19.70
    %
    
    
    4.80
    %
    
    
    3.20
    %
    
    
    0.20
    %
    
    
    
    
    
    
    100.00
    %December 31, 2005
    
    $
    1,526
    
    
    $
    594
    
    
    $
    993
    
    
    $
    138
    
    
    $
    154
    
    
    $
    24
    
    
    $
    151
    
    
    $
    3,580% of loans in category
    
    
    60.10
    %
    
    
    8.00
    %
    
    
    22.30
    %
    
    
    5.50
    %
    
    
    3.90
    %
    
    
    0.20
    %
    
    
    
    
    
    
    100.00
    %
   19




---



##### 



Community Central Bank Corporation
Notes to Consolidated Financial Statements
 Nonperforming Assets
  December 31,2009
    
    2008
    
    2007
    
    2006
    
    2005(In thousands)Nonaccrual loans:Commercial real estate
    
    $
    16,020
    
    
    $
    12,579
    
    
    $
    14,379
    
    
    $
    2,711
    
    
    $
    1,637Commercial and industrial
    
    
    584
    
    
    
    96
    
    
    
    146
    
    
    
    646
    
    
    
    985Residential real estate
    
    
    5,673
    
    
    
    3,578
    
    
    
    2,053
    
    
    
    
    
    
    
    67Home equity lines
    
    
    219
    
    
    
    760
    
    
    
    354
    
    
    
    
    
    
    
    Consumer loans
    
    
    378
    
    
    
    571
    
    
    
    30
    
    
    
    
    
    
    
    Credit cards
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Total
    
    
    22,874
    
    
    
    17,584
    
    
    
    16,962
    
    
    
    3,357
    
    
    
    2,689Accruing loans delinquent more
than 90 days:Commercial real estate
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Commercial and industrial
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Residential real estate
    
    
    
    
    
    
    
    
    
    
    654
    
    
    
    876
    
    
    
    621Home equity lines
    
    
    
    
    
    
    
    
    
    
    44
    
    
    
    336
    
    
    
    Consumer loans
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    160
    
    
    
    1Credit cards
    
    
    7
    
    
    
    44
    
    
    
    25
    
    
    
    1
    
    
    
    1Total
    
    
    7
    
    
    
    44
    
    
    
    723
    
    
    
    1,373
    
    
    
    623Total nonperforming loans
    
    $
    22,881
    
    
    $
    17,628
    
    
    $
    17,685
    
    
    $
    4,730
    
    
    $
    3,312Troubled debt restructured loans:Commercial real estate
    
    
    20,341
    
    
    
    6,078
    
    
    
    
    
    
    
    
    
    
    
    Commercial and industrial
    
    
    83
    
    
    
    1,589
    
    
    
    
    
    
    
    
    
    
    
    Residential real estate
    
    
    
    
    
    
    495
    
    
    
    253
    
    
    
    
    
    
    
    Total
    
    
    20,424
    
    
    
    8,162
    
    
    
    253
    
    
    
    
    
    
    
    Other real estate owned:Commercial real estate
    
    
    8,881
    
    
    
    2,493
    
    
    
    319
    
    
    
    
    
    
    
    Residential real estate
    
    
    419
    
    
    
    420
    
    
    
    535
    
    
    
    108
    
    
    
    112Total
    
    
    9,300
    
    
    
    2,913
    
    
    
    854
    
    
    
    108
    
    
    
    112Other repossessed assets:Boats
    
    
    494
    
    
    
    976
    
    
    
    
    
    
    
    
    
    
    
    Total nonperforming loans as a
percentage of total loans
    
    
    5.68
    %
    
    
    4.33
    %
    
    
    4.54
    %
    
    
    1.29
    %
    
    
    0.99
    %Allowance for loan losses to
nonperforming loans
    
    
    56.62
    %
    
    
    41.50
    %
    
    
    21.57
    %
    
    
    75.69
    %
    
    
    101.96
    %
 Accounting by
Debtors and Creditors for Troubled Debt Restructurings
 20




---



##### 



Community Central Bank Corporation
Notes to Consolidated Financial Statements
   (6) Property and Equipment
  2009
    
    
    2008(In thousands)Land
    
    $
    1,340
    
    
    $
    1,340Buildings and improvements
    
    
    5,984
    
    
    
    5,941Building construction in process
    
    
    
    
    
    
    182Leasehold improvements
    
    
    1,653
    
    
    
    1,650Furniture and equipment
    
    
    5,183
    
    
    
    4,709Vehicles
    
    
    32
    
    
    
    4214,192
    
    
    
    13,864Less: accumulated depreciation and amortization
    
    
    5,086
    
    
    
    4,503Net property and equipment
    
    $
    9,106
    
    
    $
    9,361
 (7) Time Deposits
  Year Ending December 31,
    
    (In thousands)2010
    
    $
    185,0752011
    
    
    56,8352012
    
    
    51,1692013
    
    
    3602014
    
    
    11,304Subsequent years
    
    
    Total Time Deposits
    
    $
    304,743
  (In thousands)Three months or less
    
    $
    51,651Over three months to twelve months
    
    
    94,395Over one year to three years
    
    
    76,758Over three years
    
    
    4,170Total time deposits of $100,000 or more
    
    $
    226,974
 21




---



##### 



Community Central Bank Corporation
Notes to Consolidated Financial Statements
 (8) Short-term Borrowings
   Year Ended December 31,2009
    
    2008
    
    2007(Dollars in thousands)Amount outstanding at end of year:Short-term repurchase agreements
    
    $
    22,106
    
    
    $
    20,394
    
    
    $
    13,659Short-term FHLB advances
    
    $
    22,000
    
    
    $
    25,500
    
    
    $
    23,795Weighted average interest rate on ending balance:Short-term repurchase agreements
    
    
    1.49
    %
    
    
    1.62
    %
    
    
    3.00
    %Short-term FHLB advances
    
    
    4.56
    %
    
    
    3.50
    %
    
    
    4.14
    %Maximum amount outstanding at any month end
during the year:Short-term repurchase agreements
    
    $
    25,771
    
    
    $
    20,394
    
    
    $
    14,932Short-term FHLB advances
    
    $
    29,000
    
    
    $
    25,500
    
    
    $
    23,795Average amount outstanding during the year:Short-term repurchase agreements
    
    $
    20,863
    
    
    $
    13,589
    
    
    $
    13,330Short-term FHLB advances
    
    $
    31,000
    
    
    $
    17,484
    
    
    $
    19,831Weighted average interest rate:Short-term repurchase agreements
    
    
    1.55
    %
    
    
    1.97
    %
    
    
    3.10
    %Short-term FHLB advances
    
    
    4.03
    %
    
    
    4.05
    %
    
    
    4.16
    %
 (9) FHLB Advances
   December 31, 2009
    
    
    December 31, 2008Ending
    
    
    Average rate
    
    
    Ending
    
    
    Average rateBalance
    
    
    at end of period
    
    
    Balance
    
    
    at end of period(Dollars in thousands)Short-term FHLB advances
    
    $
    22,000
    
    
    
    4.56
    %
    
    $
    25,500
    
    
    
    3.50
    %Long-term FHLB advances
    
    
    43,700
    
    
    
    4.77
    %
    
    
    82,700
    
    
    
    4.43
    %$
    65,700
    
    
    
    4.70
    %
    
    $
    108,200
    
    
    
    4.21
    %
 22




---



##### 



Community Central Bank Corporation
Notes to Consolidated Financial Statements
   Year Ending December 31,
    
    (In thousands)2010
    
    $
    22,0002011
    
    
    10,5002012
    
    
    7,0002013
    
    
    2014
    
    
    Subsequent years
    
    
    26,200Total
    
    $
    65,700
 (10) ESOP Note Payable
  (11) Subordinated Debentures
    (12) Stockholders Equity
   23




---



##### 



Community Central Bank Corporation
Notes to Consolidated Financial Statements
 
  
 Preferred Stock Issuance
   24




---



##### 



Community Central Bank Corporation
Notes to Consolidated Financial Statements
  2009
    
    2008


    
    Minimum Ratio forCapital Adequacy
    
    Ratio to beCapital
    
    Ratio
    
    Capital
    
    Ratio
    
    Purposes
    
    Well Capitalized(Dollars in thousands)Tier I capital to risk-weighted assetsConsolidated
    
    $
    24,584
    
    
    
    6.31
    %
    
    $
    45,054
    
    
    
    10.41
    %
    
    
    4
    %
    
    NABank only
    
    
    31,133
    
    
    
    7.99
    %
    
    
    39,928
    
    
    
    9.28
    %
    
    
    4
    %
    
    
    6
    %Total capital to risk-weighted assetsConsolidated
    
    $
    44,619
    
    
    
    11.44
    %
    
    $
    57,199
    
    
    
    13.22
    %
    
    
    8
    %
    
    NABank only
    
    
    36,102
    
    
    
    9.27
    %
    
    
    45,338
    
    
    
    10.54
    %
    
    
    8
    %
    
    
    10
    %Tier I capital to average assetsConsolidated
    
    $
    24,584
    
    
    
    4.47
    %
    
    $
    45,054
    
    
    
    8.21
    %
    
    
    4
    %
    
    NABank only
    
    
    31,133
    
    
    
    5.67
    %
    
    
    39,928
    
    
    
    7.30
    %
    
    
    4
    %
    
    
    5
    %
  (13) Benefit Plans
 Defined Contribution Plan
 Employee Stock Ownership Plan
  25




---



##### 



Community Central Bank Corporation
Notes to Consolidated Financial Statements
  2009
    
    2008
    
    2007Amounts paid by the ESOP for:
    
    (In thousands)Debt repayment *
    
    $
    
    
    
    $
    36
    
    
    $
    59Interest
    
    $
    
    
    
    $
    1
    
    
    $
    6Other
    
    $
    
    
    
    $
    5
    
    
    $
    4Amounts received from the Corporation as:Contributions to the ESOP
    
    $
    
    
    
    $
    42
    
    
    $
    69
 
 *
    
    Includes debt repayment in 2008 and 2007 from cash contained in the ESOP from
accumulated dividends. Supplemental Executive Retirement Plan
 2009
    
    
    2008(In thousands)Plan assets at fair value
    
    $
    
    
    
    $
    Benefit obligation
    
    
    2,512
    
    
    
    2,072Overfunded (underfunded) status
    
    $
    (2,512
    )
    
    $
    (2,072
    )Pension liability
    
    $
    (2,512
    )
    
    $
    (2,072
    )Net pension costs
    
    $
    540
    
    
    $
    396Actuarial comparisons:Weighted average discount rate
    
    
    6.15
    %
    
    
    7.00
    %Increase in future compensation levels
    
    
    3.00
    %
    
    
    3.00
    %
  Stock Option Plans 
 26




---



##### 



Community Central Bank Corporation
Notes to Consolidated Financial Statements
   Year Ended December 31,2009
    
    
    2008
    
    
    2007(In thousands)Stock-based employee compensation expense,
net of related tax effects, included in reported net income
    
    
    84
    
    
    
    57
    
    
    
    31
  2009
    
    
    2008
    
    
    2007Dividend yield or expected dividends
    
    
    
    
    
    
    
    
    
    
    3.24
    %Risk free interest rate
    
    
    3.84
    %
    
    
    2.50
    %
    
    
    4.20
    %Expected life
    
    10 years
    
    10 years
    
    10 yearsExpected volatility
    
    
    88.08
    %
    
    
    50.27
    %
    
    
    34.50
    %
 27




---



##### 



Community Central Bank Corporation
Notes to Consolidated Financial Statements
  Year Ended December 31,2009
    
    
    2008
    
    
    2007Weighted
    
    
    
    
    
    
    Weighted
    
    
    
    
    
    
    WeightedNumber of
    
    
    Average
    
    
    Number of
    
    
    Average
    
    
    Number of
    
    
    AverageShares
    
    
    Exercise Price
    
    
    Shares
    
    
    Exercise Price
    
    
    Shares
    
    
    Exercise PriceOutstanding, beginning
of period
    
    
    303,475
    
    
    $
    7.91
    
    
    
    286,993
    
    
    $
    9.10
    
    
    
    330,272
    
    
    $
    8.93Granted
    
    
    50,000
    
    
    
    1.55
    
    
    
    49,750
    
    
    
    1.89
    
    
    
    47,500
    
    
    
    7.59Exercised
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (56,638
    )
    
    
    5.57Forfeited
    
    
    (1,988
    )
    
    
    10.66
    
    
    
    (33,268
    )
    
    
    9.21
    
    
    
    (34,141
    )
    
    
    11.19Outstanding, end of year
    
    
    351,487
    
    (a)
    $
    6.99
    
    
    
    303,475
    
    
    $
    7.91
    
    
    
    286,993
    
    
    $
    9.10
  Stock Options Outstanding
    
    
    Stock Options ExercisableWeighted Average
    
    
    Weighted
    
    
    
    
    
    
    WeightedRange of
    
    Number
    
    
    Remaining
    
    
    Average Exercise
    
    
    Number of
    
    
    Average ExerciseExercise Prices
    
    of Shares
    
    
    Contractual Life
    
    
    Price
    
    
    Shares
    
    
    Price$4.30
    
    
    4,534
    
    
    .1 years
    
    $
    4.30
    
    
    
    4,534
    
    
    $
    4.304.52
    
    
    5,331
    
    
    .8 years
    
    
    4.52
    
    
    
    5,331
    
    
    
    4.524.98
    
    
    8,794
    
    
    1.3 years
    
    
    4.98
    
    
    
    8,794
    
    
    
    4.984.71
    
    
    15,516
    
    
    1.4 years
    
    
    4.71
    
    
    
    15,516
    
    
    
    4.716.99  7.34
    
    
    27,439
    
    
    2.4 years
    
    
    6.96
    
    
    
    27,439
    
    
    
    6.968.28
    
    
    6,078
    
    
    3.5 years
    
    
    8.28
    
    
    
    6,078
    
    
    
    8.289.82  10.31
    
    
    21,882
    
    
    3.9 years
    
    
    9.84
    
    
    
    21,882
    
    
    
    9.8211.15
    
    
    37,982
    
    
    4.9 years
    
    
    11.15
    
    
    
    37,982
    
    
    
    11.1513.15
    
    
    3,583
    
    
    5.6 years
    
    
    13.15
    
    
    
    3,583
    
    
    
    13.1511.98  13.15
    
    
    41,348
    
    
    7.9 years
    
    
    11.98
    
    
    
    41,348
    
    
    
    11.9810.76
    
    
    32,000
    
    
    7.0 years
    
    
    10.76
    
    
    
    12,800
    
    
    
    10.767.59
    
    
    47,500
    
    
    7.9 years
    
    
    7.59
    
    
    
    19,000
    
    
    
    7.591.89
    
    
    49,500
    
    
    9.0 years
    
    
    1.89
    
    
    
    16,583
    
    
    
    1.891.55
    
    
    50,000
    
    
    10.0 years
    
    
    1.55
    
    
    
    
    
    
    
    351,487
    
    
    
    
    
    
    $
    6.99
    
    
    
    220,870
    
    
    $
    8.58
 All share number and exercise price data have been adjusted to reflect the issuance
of stock dividends.
 
 (a)
    
    The aggregate intrinsic value of the options outstanding and exercisable as of
December 31, 2009, based on the share price of $1.40 for CCBC common stock at
December 31, 2009, was $0. No stock options were exercised in 2009. The total
intrinsic value of options exercised during the years ended December 31, 2008 and
2007 was $0 and $152,000, respectively. 28




---



##### 



Community Central Bank Corporation
Notes to Consolidated Financial Statements
 (14) Leases
  Year ending December 31,
    
    (In thousands)2010
    
    $
    2562011
    
    
    2122012
    
    
    2102013
    
    
    2112014
    
    
    174Subsequent years
    
    
    255Total minimum rental payments
    
    $
    1,318
 (15) Other Operating Expense
  2009
    
    
    2008
    
    
    2007Year Ended December 31,
    
    (In thousands)Advertising, business development and
public relations
    
    $
    426
    
    
    $
    536
    
    
    $
    528Data processing
    
    
    773
    
    
    
    728
    
    
    
    625Professional and regulatory fees
    
    
    577
    
    
    
    600
    
    
    
    417Legal fees
    
    
    743
    
    
    
    465
    
    
    
    288Director fees
    
    
    262
    
    
    
    281
    
    
    
    283Printing and supplies
    
    
    187
    
    
    
    206
    
    
    
    172Telephone
    
    
    157
    
    
    
    174
    
    
    
    177Other real estate owned
    
    
    3,403
    
    
    
    2,056
    
    
    
    68Loan closing
    
    
    39
    
    
    
    105
    
    
    
    113Impairment loss
    
    
    
    
    
    
    743
    
    
    
    Other insurance
    
    
    114
    
    
    
    117
    
    
    
    127Deposit insurance
    
    
    1,367
    
    
    
    410
    
    
    
    283Michigan business tax
    
    
    64
    
    
    
    12
    
    
    
    128Repossessed asset expense
    
    
    486
    
    
    
    31
    
    
    
    Other
    
    
    1,230
    
    
    
    860
    
    
    
    940Total other operating expense
    
    $
    9,828
    
    
    $
    7,324
    
    
    $
    4,149
 (16) Taxes on Income
  2009
    
    
    2008
    
    
    2007(In thousands)Current tax (benefit) expense
    
    $
    (1,770
    )
    
    $
    (489
    )
    
    $
    266Deferred tax (benefit) expense
    
    
    (2,934
    )
    
    
    (943
    )
    
    
    (561
    )Change in valuation allowance
    
    
    5,911
    
    
    
    
    
    
    
    Total income tax (benefit) expense
    
    $
    1,207
    
    
    $
    (1,432
    )
    
    $
    (295
    )
 29




---



##### 



Community Central Bank Corporation
Notes to Consolidated Financial Statements
  2009
    
    
    2008(In thousands)Deferred tax assetsProvision for loan losses
    
    $
    4,310
    
    
    $
    2,321Depreciation
    
    
    85
    
    
    
    91SERP Expense
    
    
    854
    
    
    
    705Net operating loss
    
    
    3,377
    
    
    
    1,990Intangible asset amortization
    
    
    72
    
    
    
    74Other real estate owned
    
    
    738
    
    
    
    540AMT carryforward
    
    
    
    
    
    
    73Other
    
    
    481
    
    
    
    4089,917
    
    
    
    6,202Valuation allowance for deferred tax assets
    
    
    (5,911
    )
    
    
    Total net deferred tax assets
    
    $
    4,006
    
    
    $
    6,202Deferred tax liabilitiesFinancial instruments at fair value option
    
    
    (3,465
    )
    
    
    (2,820
    )Original issue discount
    
    
    (18
    )
    
    
    (63
    )Accretion
    
    
    (6
    )
    
    
    (27
    )FHLB dividends
    
    
    (104
    )
    
    
    (104
    )Net deferred loan fees
    
    
    (40
    )
    
    
    (32
    )Goodwill amortization
    
    
    (65
    )
    
    
    (51
    )Other
    
    
    (308
    )
    
    
    (127
    )Gross deferred liablilites
    
    
    (4,006
    )
    
    
    (3,224
    )Net deferred tax asset
    
    $
    
    
    
    $
    2,978
   Year Ended December 31,2009
    
    
    2008
    
    
    2007(In thousands)Provision (benefit) at statutory federal income tax rate
    
    $
    (4,567
    )
    
    $
    (1,135
    )
    
    $
    146Nondeductible expenditures
    
    
    64
    
    
    
    45
    
    
    
    62Tax exempt municipal interest
    
    
    (96
    )
    
    
    (186
    )
    
    
    (384
    )Increase in cash surrender value of bank owned
life insurance
    
    
    (105
    )
    
    
    (156
    )
    
    
    (119
    )Valuation adjustment
    
    
    5,911
    
    
    
    
    
    
    
    Provision (benefit) at effective federal income tax rate
    
    $
    1,207
    
    
    $
    (1,432
    )
    
    $
    (295
    )
 30




---



##### 



Community Central Bank Corporation
Notes to Consolidated Financial Statements
 (17) Estimated Fair Value of Financial Instruments
  Cash and cash equivalents:
 Securities, Federal Home Loan Bank stock:
 Loans:
 Residential mortgages held for sale:
 Deposits:
 Federal Home Loan Bank advances:
 Repurchase agreements:
 Accrued interest:
 Subordinated debentures:
 Commitments:
 31




---



##### 



Community Central Bank Corporation
Notes to Consolidated Financial Statements
  2009
    
    
    2008Carrying
    
    
    Estimated
    
    
    Carrying
    
    
    EstimatedAmount
    
    
    Fair Value
    
    
    Amount
    
    
    Fair Value(In thousands)Financial Assets:Cash and cash equivalents
    
    $
    34,163
    
    
    $
    34,163
    
    
    $
    16,162
    
    
    $
    16,162Trading securities (a)
    
    
    
    
    
    
    
    
    
    
    17,463
    
    
    
    17,463Securities available for sale
    
    
    65,903
    
    
    
    65,903
    
    
    
    78,067
    
    
    
    78,046Securities held to maturity
    
    
    3,467
    
    
    
    3,469
    
    
    
    1,515
    
    
    
    1,494FHLB stock
    
    
    5,877
    
    
    
    5,877
    
    
    
    5,877
    
    
    
    5,877Residential mortgages held for sale
    
    
    3,497
    
    
    
    3,497
    
    
    
    3,302
    
    
    
    3,302Loans, net of allowance
    
    
    392,210
    
    
    
    402,500
    
    
    
    399,802
    
    
    
    416,903Accrued interest receivable
    
    
    1,878
    
    
    
    1,878
    
    
    
    2,479
    
    
    
    2,479Interest rate swap
    
    
    
    
    
    
    
    
    
    
    3,538
    
    
    
    3,538Financial Liabilities:Demand and savings deposits
    
    
    96,388
    
    
    
    96,388
    
    
    
    80,908
    
    
    
    80,908Time deposits
    
    
    304,743
    
    
    
    311,102
    
    
    
    276,468
    
    
    
    286,145Repurchase agreements
    
    
    41,106
    
    
    
    41,106
    
    
    
    39,394
    
    
    
    39,394FHLB advances
    
    
    65,700
    
    
    
    66,883
    
    
    
    108,200
    
    
    
    111,738Accrued interest payable
    
    
    618
    
    
    
    618
    
    
    
    1,050
    
    
    
    1,050Subordinated debentures (a)
    
    
    8,366
    
    
    
    8,366
    
    
    
    12,757
    
    
    
    12,757
 
 (a)
    
    Carried under the fair value option under ASC 825, Financial Instruments,
the Fair Value Option (18) Off-Balance Sheet Risk
    32




---



##### 



Community Central Bank Corporation
Notes to Consolidated Financial Statements
  2009
    
    
    2008(In thousands)Unused home equity lines of credit
    
    $
    8,390
    
    
    $
    9,819Unused credit card lines
    
    
    2,386
    
    
    
    1,890Unused portion of construction lines of credit
    
    
    4,906
    
    
    
    7,756Unused portion of all other credit lines
    
    
    50,916
    
    
    
    49,652Standby letters of credit
    
    
    650
    
    
    
    1,015Total outstanding commitments
    
    $
    67,248
    
    
    $
    70,132
 (19) Restrictions on Dividends, Loans and Advances
  (20) Parent-only Financial Statements
  33




---



##### 



Community Central Bank Corporation
Notes to Consolidated Financial Statements
 Parent-only Balance Sheet
 December 31,2009
    
    
    2008(In thousands)AssetsCash
    
    $
    813
    
    
    $
    3,523Accrued interest receivable
    
    
    
    
    
    
    32Investment in subsidiary
    
    
    34,941
    
    
    
    41,773Investment in unconsolidated subsidiary
    
    
    557
    
    
    
    557Other assets
    
    
    
    
    
    
    3,595Total Assets
    
    $
    36,311
    
    
    $
    49,480Liabilities and Stockholders EquityDue to subsidiary/Other liabilities
    
    $
    959
    
    
    $
    738Net deferred tax liability
    
    
    2,998
    
    
    
    1,591Subordinated debentures
    
    
    8,366
    
    
    
    12,757Total Liabilities
    
    
    12,323
    
    
    
    15,086Preferred stock
    
    
    7,146
    
    
    
    3,050Common stock
    
    
    32,214
    
    
    
    32,125Retained deficit
    
    
    (15,536
    )
    
    
    (516
    )Accumulated other comprehensive income
    
    
    164
    
    
    
    (265
    )Total Stockholders Equity
    
    
    23,988
    
    
    
    34,394Total Liabilities and Stockholders Equity
    
    $
    36,311
    
    
    $
    49,480
 34




---



##### 



Community Central Bank Corporation
Notes to Consolidated Financial Statements
 Parent-only Statement of Operations
 December 31,2009
    
    
    2008
    
    
    2007(In thousands)Operating IncomeInterest income
    
    $
    34
    
    
    $
    84
    
    
    $
    391Other income
    
    
    
    
    
    
    10
    
    
    
    Dividend from subsidiary
    
    
    
    
    
    
    250
    
    
    
    1,400Total Interest and Dividend Income
    
    
    34
    
    
    
    344
    
    
    
    1,791Interest ExpenseSubordinated debentures
    
    
    1,235
    
    
    
    905
    
    
    
    929Net interest (loss) income
    
    
    (1,201
    )
    
    
    (561
    )
    
    
    862Change in fair value of assets/liabilities
    
    
    4,066
    
    
    
    7,710
    
    
    
    Other expense
    
    
    790
    
    
    
    721
    
    
    
    932Total Operating Expense
    
    
    790
    
    
    
    721
    
    
    
    932Income (Loss) Before Taxes and Undistributed
Income of Subsidiary
    
    
    2,075
    
    
    
    6,428
    
    
    
    (70
    )Income tax expense (benefit)
    
    
    803
    
    
    
    2,123
    
    
    
    (597
    )Income Before Share in Undistributed
Income (loss) of Subsidiary
    
    
    1,272
    
    
    
    4,305
    
    
    
    527Share of undistributed (loss) income of subsidiary
    
    
    (15,910
    )
    
    
    (6,267
    )
    
    
    1,884Net Income (Loss)
    
    $
    (14,638
    )
    
    $
    (1,962
    )
    
    $
    2,411Dividends declared on preferred shares
    
    
    (382
    )
    
    
    
    
    
    
    Net Income (Loss) available on common shares
    
    $
    (15,020
    )
    
    $
    (1,962
    )
    
    $
    2,411
 35




---



##### 



Community Central Bank Corporation
Notes to Consolidated Financial Statements
 Parent-only Statement of Cash Flow
 Year Ended December 31,2009
    
    
    2008
    
    
    2007(In thousands)Operating ActivitiesNet income (loss)
    
    $
    (14,638
    )
    
    $
    (1,962
    )
    
    $
    724Adjustments to reconcile net income to
net cash flow from operating activitiesNet gain on instruments at fair value
    
    
    (4,066
    )
    
    
    (7,710
    )
    
    
    (1,811
    )Undistributed income of subsidiary
    
    
    15,910
    
    
    
    6,267
    
    
    
    475Decrease (increase) in other assets
    
    
    3,627
    
    
    
    (779
    )
    
    
    (456
    )Increase (decrease) in other liabilities
    
    
    221
    
    
    
    58
    
    
    
    125Other operating adjustments
    
    
    1,167
    
    
    
    2,926
    
    
    
    612Net Cash (Used in) Provided by Operating Activities
    
    
    2,221
    
    
    
    (1,200
    )
    
    
    (331
    )Investing ActivitiesCapital contribution to subsidiaries
    
    
    (8,650
    )
    
    
    (3,750
    )
    
    
    (133
    )Net Cash Used in Investing Activities
    
    
    (8,650
    )
    
    
    (3,750
    )
    
    
    (133
    )Financing ActivitiesStock options exercised/awards
    
    
    5
    
    
    
    17
    
    
    
    341Issuance of preferred shares
    
    
    4,096
    
    
    
    3,050
    
    
    
    Issuance and redemption of subordinated debentures
    
    
    
    
    
    
    
    
    
    
    8,247Cash dividend paid
    
    
    (382
    )
    
    
    (351
    )
    
    
    (932
    )Repurchase of stock
    
    
    
    
    
    
    (7
    )
    
    
    (3,400
    )Net Cash Provided by Financing Activities
    
    
    3,719
    
    
    
    2,709
    
    
    
    4,256(Decrease) Increase in Cash
    
    
    (2,710
    )
    
    
    (2,241
    )
    
    
    3,792Cash at the Beginning of the Period
    
    
    3,523
    
    
    
    5,764
    
    
    
    1,972Cash at the End of the Period
    
    $
    813
    
    
    $
    3,523
    
    
    $
    5,764
 (21) Fair Value Option for Financial Assets and Financial Liabilities
  Fair Value Hierarchy
 Fair Value Measurements,
 Level 1
    
    Valuation is based upon quoted prices for identical instruments traded
in active markets.Level 2
    
    Valuation is based upon quoted prices for similar instruments in
active markets, quoted prices for identical or similar instruments in markets
that are not active, and model-based valuation techniques for which all
significant assumptions are observable in the market.Level 3
    
    Valuation contains unobservable input(s) and is used to the extent
observable inputs are not available, thereby allowing for situations in which
there is little, if any, market activity. Level 3 instruments typically
include, in addition to unobservable or Level 3 components, observable
components.
 36




---



##### 



Community Central Bank Corporation
Notes to Consolidated Financial Statements
   Financial Instruments, the Fair Value Option.
  Financial Instruments, the
Fair Value Option.
  Fair Value Measurements, Financial Instruments, Fair Value Option Fair Value Measurements and Disclosures, Fair Value
Measurements and Disclosures Fair Value Measurements and Disclosures
 37




---



##### 



Community Central Bank Corporation
Notes to Consolidated Financial Statements
 Financial Instruments, Fair Value Option,
    Changes in fairvalue for twelvemonths endedDecember 31, 2009measured at fairFair Value Measurement at
    
    
    
    
    
    
    value pursuant toDecember 31, 2009
    
    
    
    
    
    
    election of the fair value optionSignificant Other
    
    
    Significant
    
    
    Other Gains or Losses inFair Value
    
    
    Observable
    
    
    Unobservable
    
    
    noninterest incomeMeasurements
    
    
    Inputs
    
    
    Inputs
    
    
    pretax incomeDescription
    
    12/31/2009
    
    
    (Level 2)
    
    
    (Level 3)(In thousands of dollars)Trading Securities
    
    $
    
    
    
    $
    
    
    
    $
    
    
    
    $
    (132
    )Securities available for sale
    
    
    65,903
    
    
    
    65,903
    
    
    
    
    
    
    
    Interest rate swap hedging securities
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (75
    )Subordinated Debentures
    
    
    8,366
    
    
    
    
    
    
    
    8,366
    
    
    
    4,391Interest rate swap hedging
subordinated debentures
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (325
    )$
    3,859
 38




---



##### 



Community Central Bank Corporation
Notes to Consolidated Financial Statements
 Changes in fairvalue for twelvemonths endedDecember 31, 2008measured at fairFair Value Measurement at
    
    
    
    
    
    
    value pursuant toDecember 31, 2008
    
    
    
    
    
    
    election of the fair value optionsSignificant Other
    
    
    Significant
    
    
    Other Gains or Losses inFair Value
    
    
    Observable
    
    
    Unobservable
    
    
    noninterest incomeMeasurements
    
    
    Inputs
    
    
    Inputs
    
    
    pretax incomeDescription
    
    12/31/2008
    
    
    (Level 2)
    
    
    (Level 3)(In thousands of dollars)Trading Securities
    
    $
    17,463
    
    
    $
    17,463
    
    
    $
    
    
    
    $
    262Securities available for sale
    
    
    76,552
    
    
    
    76,552
    
    
    
    
    
    
    
    Interest rate swap hedging securities
    
    
    (958
    )
    
    
    (958
    )
    
    
    
    
    
    
    (417
    )Federal Home Loan Bank Advances
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (14
    )Subordinated Debentures
    
    
    12,757
    
    
    
    
    
    
    
    12,757
    
    
    
    4,840Interest rate swap hedging
subordinated debentures
    
    
    3,538
    
    
    
    3,538
    
    
    
    
    
    
    
    2,870$
    7,541
  Changes in level 3 recurring fair value measurements
  39




---



##### 



Community Central Bank Corporation
Notes to Consolidated Financial Statements
 Fair value measurements using significant unobservable inputs(In thousands)Changes in unrealizedgains / (losses)Total realized /
    
    Purchases
    
    Transfers
    
    
    
    
    
    related to financialFor the year ended
    
    Fair Value
    
    unrealized
    
    issuances
    
    in and / or
    
    Fair Value
    
    instruments held atDecember 31, 2009
    
    January 1, 2009
    
    gains / (losses)
    
    settlements, net
    
    out of Level 3
    
    December 31, 2009
    
    December 31, 2009Subordinated
Debentures
    
    $
    12,757
    
    
    $
    4,391
    
    
    $
    
    
    
    $
    
    
    
    $
    8,366
    
    
    $
    4,391
 Changes in unrealizedgains / (losses)Total realized /
    
    Purchases
    
    Transfers
    
    
    
    
    
    related to financialFor the year ended
    
    Fair Value
    
    unrealized
    
    issuances
    
    in and / or
    
    Fair Value
    
    instruments held atDecember 31, 2008
    
    January 1, 2008
    
    gains / (losses)
    
    settlements, net
    
    out of Level 3
    
    December 31, 2008
    
    December 31, 2008Subordinated
Debentures
    
    $
    17,597
    
    
    $
    4,840
    
    
    $
    
    
    
    $
    
    
    
    $
    12,757
    
    
    $
    4,840
 Assets Measured at Fair Value on a Nonrecurring Basis
 Impaired Loans
 Accounting by Creditors for
Impairment of a Loan.
 Other Real Estate Owned
  40




---



##### 



Community Central Bank Corporation
Notes to Consolidated Financial Statements
  Quoted Prices inActive Markets
    
    Significant Other
    
    Significantfor Identical
    
    Observable
    
    Unobservable
    
    Total Losses forBalance at
    
    Assets
    
    Inputs
    
    Inputs
    
    the year endedAssets
    
    December 31, 2009
    
    (Level 1)
    
    (Level 2)
    
    (Level 3)
    
    December 31, 2009(In thousands)December 31, 2009
Impaired loans
    
    $
    11,722
    
    
    $
    
    
    
    $
    
    
    
    $
    11,722
    
    
    $
    5,481Other real estate owned
    
    
    9,300
    
    
    
    
    
    
    
    
    
    
    
    9,300
    
    
    
    1,271
 Total Losses forthe year endedDecember 31, 2008December 31, 2008

Impaired loans
    
    $
    17,936
    
    
    $
    
    
    
    $
    
    
    
    $
    17,936
    
    
    $
    4,509Other real estate owned
    
    
    2,913
    
    
    
    
    
    
    
    
    
    
    
    2,913
    
    
    
    1,075
 41




---



##### 



Community Central Bank Corporation
Managements Discussion and Analysis of Financial Condition and Results of Operations
 FORWARD LOOKING STATEMENTS
   42




---



##### 



Community Central Bank Corporation
Managements Discussion and Analysis of Financial Condition and Results of Operations
 EXECUTIVE SUMMARY
       43




---



##### 



Community Central Bank Corporation
Managements Discussion and Analysis of Financial Condition and Results of Operations
    Selected Financial Information
   For the Year Ended December 31,2009
    
    
    2008
    
    
    2007
    
    
    2006
    
    
    2005(In thousands)Total assets
    
    $
    543,846
    
    
    $
    556,950
    
    
    $
    520,305
    
    
    $
    505,028
    
    
    $
    462,012Trading securities at fair value option
    
    
    
    
    
    
    17,463
    
    
    
    20,115
    
    
    
    
    
    
    
    Securities available for sale
    
    
    65,903
    
    
    
    76,552
    
    
    
    66,809
    
    
    
    80,916
    
    
    
    84,177Securities held to maturity
    
    
    3,467
    
    
    
    1,515
    
    
    
    977
    
    
    
    1,017
    
    
    
    1,094Gross loans
    
    
    403,167
    
    
    
    407,117
    
    
    
    389,912
    
    
    
    367,282
    
    
    
    334,951Allowance for credit losses
    
    
    12,957
    
    
    
    7,315
    
    
    
    6,403
    
    
    
    3,815
    
    
    
    3,580Total deposits
    
    
    401,131
    
    
    
    357,376
    
    
    
    328,635
    
    
    
    355,856
    
    
    
    314,373FHLB advances
    
    
    65,700
    
    
    
    108,200
    
    
    
    104,495
    
    
    
    83,528
    
    
    
    86,545Repurchase agreements
    
    
    41,106
    
    
    
    39,394
    
    
    
    32,659
    
    
    
    15,688
    
    
    
    13,184Subordinated debentures
    
    
    8,366
    
    
    
    12,757
    
    
    
    17,597
    
    
    
    10,310
    
    
    
    10,310Total stockholders equity
    
    
    23,988
    
    
    
    34,394
    
    
    
    33,228
    
    
    
    36,665
    
    
    
    35,532
 44




---



##### 



Community Central Bank Corporation
Managements Discussion and Analysis of Financial Condition and Results of Operations
  For the Year Ended December 31,2009
    
    
    2008
    
    
    2007
    
    
    2006
    
    
    2005(In thousands, except per share data)Interest income
    
    $
    28,797
    
    
    $
    30,422
    
    
    $
    32,925
    
    
    $
    31,475
    
    
    $
    24,230Interest expense
    
    
    16,791
    
    
    
    19,047
    
    
    
    20,735
    
    
    
    18,892
    
    
    
    11,555Net interest income
    
    
    12,006
    
    
    
    11,375
    
    
    
    12,190
    
    
    
    12,583
    
    
    
    12,675Provision for credit losses
    
    
    14,850
    
    
    
    9,502
    
    
    
    3,600
    
    
    
    550
    
    
    
    100Non-interest income
    
    
    9,570
    
    
    
    11,451
    
    
    
    5,692
    
    
    
    4,935
    
    
    
    4,809Non-interest expense
    
    
    20,157
    
    
    
    16,718
    
    
    
    13,853
    
    
    
    14,509
    
    
    
    13,132Income (loss) before taxes
    
    
    (13,431
    )
    
    
    (3,394
    )
    
    
    429
    
    
    
    2,459
    
    
    
    4,252Provision for income tax
(benefit) expense
    
    
    1,207
    
    
    
    (1,432
    )
    
    
    (295
    )
    
    
    363
    
    
    
    1,179Net income (loss)
    
    $
    (14,638
    )
    
    $
    (1,962
    )
    
    $
    724
    
    
    $
    2,096
    
    
    $
    3,073Dividends declared on preferred shares
    
    
    (382
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Net income (loss) available to common shares
    
    $
    (15,020
    )
    
    $
    (1,962
    )
    
    $
    724
    
    
    $
    2,096
    
    
    $
    3,073Per share data:*Basic earnings
    
    $
    (4.02
    )
    
    $
    (0.53
    )
    
    $
    0.19
    
    
    $
    0.52
    
    
    $
    0.80Diluted earnings
    
    $
    (4.02
    )
    
    $
    (0.53
    )
    
    $
    0.19
    
    
    $
    0.51
    
    
    $
    0.78Dividend declared
    
    $
    
    
    
    $
    0.10
    
    
    $
    0.24
    
    
    $
    0.24
    
    
    $
    0.21
 
 *
    
    Per share data has been retroactively adjusted to reflect the issuance of stock
dividends.  For the Year Ended December 31,2009
    
    
    2008
    
    
    2007
    
    
    2006
    
    
    2005Nonperforming loans as a
percentage of total loans
    
    
    5.68
    %
    
    
    4.33
    %
    
    
    4.40
    %
    
    
    1.29
    %
    
    
    0.99
    %Allowance for credit losses as a
percentage of total loans
    
    
    3.21
    %
    
    
    1.80
    %
    
    
    1.64
    %
    
    
    1.04
    %
    
    
    1.07
    %Allowance for credit losses as a
percentage of nonperforming loans
    
    
    56.62
    %
    
    
    41.50
    %
    
    
    21.57
    %
    
    
    75.69
    %
    
    
    101.96
    %Return on average assets
    
    
    (2.63
    %)
    
    
    (0.36
    %)
    
    
    0.14
    %
    
    
    0.42
    %
    
    
    0.72
    %Return on average equity
    
    
    (43.95
    %)
    
    
    (5.85
    %)
    
    
    2.06
    %
    
    
    5.82
    %
    
    
    9.43
    %Net interest margin
    
    
    2.35
    %
    
    
    2.30
    %
    
    
    2.68
    %
    
    
    2.83
    %
    
    
    3.23
    %Dividend payout ratio
    
    
    0.00
    %
    
    
    (17.89
    %)
    
    
    128.59
    %
    
    
    43.80
    %
    
    
    24.15
    %Average equity to average assets
    
    
    6.01
    %
    
    
    6.18
    %
    
    
    6.86
    %
    
    
    7.25
    %
    
    
    7.61
    %
 pplication of Critical Accounting Policies
 Allowance for Credit Losses:
 45




---



##### 



Community Central Bank Corporation
Managements Discussion and Analysis of Financial Condition and Results of Operations
   Assets
     46




---



##### 



Community Central Bank Corporation
Managements Discussion and Analysis of Financial Condition and Results of Operations
     Financial Instruments, the Fair Value Option.
  47




---



##### 



Community Central Bank Corporation
Managements Discussion and Analysis of Financial Condition and Results of Operations
 Discussion and Analysis of Financial Condition and Results of Operations
      48




---



##### 



Community Central Bank Corporation
Managements Discussion and Analysis of Financial Condition and Results of Operations
     Liabilities
  49




---



##### 



Community Central Bank Corporation
Managements Discussion and Analysis of Financial Condition and Results of Operations
  December 31, 2009
    
    
    December 31, 2008Balance

    
    
    Percentage
    
    
    Balance
    
    
    Percentage(Dollars in thousands)Noninterest bearing demand
    
    $
    45,716
    
    
    
    11.40
    %
    
    $
    34,169
    
    
    
    9.56
    %NOW accounts-interest bearing checking
    
    
    17,059
    
    
    
    4.25
    %
    
    
    13,670
    
    
    
    3.83
    %Money Market
    
    
    24,813
    
    
    
    6.19
    %
    
    
    24,484
    
    
    
    6.85
    %Savings
    
    
    8,800
    
    
    
    2.19
    %
    
    
    8,585
    
    
    
    2.40
    %Time deposits under $100,000
    
    
    77,769
    
    
    
    19.39
    %
    
    
    43,685
    
    
    
    12.22
    %Time deposits $100,000 and over
    
    
    226,974
    
    
    
    56.58
    %
    
    
    232,783
    
    
    
    65.14
    %Total deposits
    
    $
    401,131
    
    
    
    100.00
    %
    
    $
    357,376
    
    
    
    100.00
    %
   Stockholders Equity
  Net Interest Income
  50




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##### 



Community Central Bank Corporation
Managements Discussion and Analysis of Financial Condition and Results of Operations
 Year Ended
    
    
    Year EndedDecember 31, 2009 vs. 2008
    
    
    December 31, 2008 vs. 2007Increase (Decrease)
    
    
    Increase (Decrease)Due to Changes In
    
    
    Due to Changes InVolume
    
    
    
    
    
    
    
    
    
    
    VolumeTotal
    
    
    and Both
    
    
    Rate
    
    
    Total
    
    
    and Both
    
    
    Rate(In thousands)Earning Assets  Interest IncomeLoans
    
    $
    (70
    )
    
    $
    1,469
    
    
    $
    (1,539
    )
    
    $
    (2,264
    )
    
    $
    1,486
    
    
    $
    (3,750
    )Securities
    
    
    (1,199
    )
    
    
    (668
    )
    
    
    (531
    )
    
    
    (24
    )
    
    
    72
    
    
    
    (96
    )Federal funds sold
    
    
    (356
    )
    
    
    2
    
    
    
    (358
    )
    
    
    (215
    )
    
    
    93
    
    
    
    (308
    )Total
    
    
    (1,625
    )
    
    
    803
    
    
    
    (2,428
    )
    
    
    (2,503
    )
    
    
    1,651
    
    
    
    (4,154
    )Deposits and Borrowed Funds  Interest ExpenseNOW and money market accounts
    
    
    (482
    )
    
    
    (67
    )
    
    
    (415
    )
    
    
    (1,590
    )
    
    
    (249
    )
    
    
    (1,341
    )Savings deposits
    
    
    (169
    )
    
    
    (29
    )
    
    
    (140
    )
    
    
    (82
    )
    
    
    25
    
    
    
    (107
    )Time deposits
    
    
    (1,388
    )
    
    
    984
    
    
    
    (2,372
    )
    
    
    (354
    )
    
    
    1,009
    
    
    
    (1,363
    )FHLB advances and repurchase agreements
    
    
    (545
    )
    
    
    (331
    )
    
    
    (214
    )
    
    
    1,057
    
    
    
    1,127
    
    
    
    (70
    )Capitalized lease obligation
and ESOP loan
    
    
    (1
    )
    
    
    (1
    )
    
    
    
    
    
    
    (5
    )
    
    
    (3
    )
    
    
    (2
    )Subordinated debentures
    
    
    329
    
    
    
    201
    
    
    
    128
    
    
    
    (714
    )
    
    
    (113
    )
    
    
    (601
    )Total
    
    
    (2,256
    )
    
    
    757
    
    
    
    (3,013
    )
    
    
    (1,688
    )
    
    
    1,796
    
    
    
    (3,484
    )Net Interest Income
    
    $
    631
    
    
    $
    46
    
    
    $
    585
    
    
    $
    (815
    )
    
    $
    (145
    )
    
    $
    (670
    )
     51




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##### 



Community Central Bank Corporation
Managements Discussion and Analysis of Financial Condition and Results of Operations
      52




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##### 



Community Central Bank Corporation
Managements Discussion and Analysis of Financial Condition and Results of Operations
   2009
    
    
    2008
    
    
    2007Average
    
    
    
    
    
    
    
    
    
    
    Average
    
    
    
    
    
    
    
    
    
    
    AverageInterest
    
    
    Rate
    
    
    
    
    
    
    Interest
    
    
    Rate
    
    
    
    
    
    
    Interest
    
    
    RateAverage
    
    
    Income/
    
    
    Earned/
    
    
    Average
    
    
    Income/
    
    
    Earned/
    
    
    Average
    
    
    Income/
    
    
    Earned/Balance
    
    
    Expense
    
    
    Paid
    
    
    Balance
    
    
    Expense
    
    
    Paid
    
    
    Balance
    
    
    Expense
    
    
    Paid(In thousands)AssetsLoans
    
    $
    421,747
    
    
    $
    25,570
    
    
    
    6.06
    %
    
    $
    397,600
    
    
    $
    25,640
    
    
    
    6.45
    %
    
    $
    374,502
    
    
    $
    27,904
    
    
    
    7.45
    %Securities
    
    
    79,570
    
    
    
    3,197
    
    
    
    4.02
    %
    
    
    96,226
    
    
    
    4,396
    
    
    
    4.57
    %
    
    
    94,669
    
    
    
    4,420
    
    
    
    4.67
    %Federal funds sold
    
    
    17,219
    
    
    
    30
    
    
    
    0.17
    %
    
    
    16,597
    
    
    
    386
    
    
    
    2.44
    %
    
    
    12,003
    
    
    
    601
    
    
    
    5.01
    %Total Earning Assets /
Total Interest Income /
Average Yield
    
    
    518,536
    
    
    
    28,797
    
    
    
    5.55
    %
    
    
    510,423
    
    
    
    30,422
    
    
    
    5.97
    %
    
    
    481,174
    
    
    
    32,925
    
    
    
    6.84
    %Cash and due from banks
    
    
    9,663
    
    
    
    
    
    
    
    
    
    
    
    7,822
    
    
    
    
    
    
    
    
    
    
    
    7,173All other assets
    
    
    26,293
    
    
    
    
    
    
    
    
    
    
    
    24,986
    
    
    
    
    
    
    
    
    
    
    
    23,523Total Assets
    
    $
    554,492
    
    
    
    
    
    
    
    
    
    
    $
    543,231
    
    
    
    
    
    
    
    
    
    
    $
    511,870Liabilities & Stockholders EquityNOW and money market accounts
    
    $
    38,007
    
    
    
    263
    
    
    
    0.69
    %
    
    $
    47,852
    
    
    
    745
    
    
    
    1.56
    %
    
    $
    63,773
    
    
    
    2,335
    
    
    
    3.66
    %Savings deposits
    
    
    9,092
    
    
    
    57
    
    
    
    0.63
    %
    
    
    13,804
    
    
    
    226
    
    
    
    1.64
    %
    
    
    12,321
    
    
    
    308
    
    
    
    2.50
    %Time deposits
    
    
    275,904
    
    
    
    9,753
    
    
    
    3.53
    %
    
    
    248,314
    
    
    
    11,141
    
    
    
    4.49
    %
    
    
    225,934
    
    
    
    11,495
    
    
    
    5.09
    %FHLB advances and repurchase
agreements
    
    
    134,394
    
    
    
    5,483
    
    
    
    4.08
    %
    
    
    142,512
    
    
    
    6,028
    
    
    
    4.23
    %
    
    
    115,962
    
    
    
    4,971
    
    
    
    4.29
    %ESOP Loan
    
    
    
    
    
    
    
    
    
    
    0.00
    %
    
    
    15
    
    
    
    1
    
    
    
    5.33
    %
    
    
    67
    
    
    
    6
    
    
    
    8.96
    %Subordinated debentures
    
    
    11,266
    
    
    
    1,235
    
    
    
    6.66
    %
    
    
    15,528
    
    
    
    906
    
    
    
    5.83
    %
    
    
    20,880
    
    
    
    1,620
    
    
    
    7.76
    %Total Interest Bearing Liabilities/
Total Interest Expense / Average
Interest Rate Spread
    
    
    468,663
    
    
    
    16,791
    
    
    
    3.58
    %
    
    
    468,025
    
    
    
    19,047
    
    
    
    4.07
    %
    
    
    438,937
    
    
    
    20,735
    
    
    
    4.72
    %Noninterest bearing deposits
    
    
    49,051
    
    
    
    
    
    
    
    
    
    
    
    37,470
    
    
    
    
    
    
    
    
    
    
    
    34,594All other liabilities
    
    
    3,477
    
    
    
    
    
    
    
    
    
    
    
    4,176
    
    
    
    
    
    
    
    
    
    
    
    3,234Stockholders equity
    
    
    33,301
    
    
    
    
    
    
    
    
    
    
    
    33,560
    
    
    
    
    
    
    
    
    
    
    
    35,105Total Liabilities & Equity
    
    $
    554,492
    
    
    
    
    
    
    
    
    
    
    $
    543,231
    
    
    
    
    
    
    
    
    
    
    $
    511,870Net Interest Income
    
    
    
    
    
    $
    12,006
    
    
    
    
    
    
    
    
    
    
    $
    11,375
    
    
    
    
    
    
    
    
    
    
    $
    12,190Net Interest Rate Spread
    
    
    
    
    
    
    
    
    
    
    1.97
    %
    
    
    
    
    
    
    
    
    
    
    1.90
    %
    
    
    
    
    
    
    
    
    
    
    2.12
    %Net Interest Margin (Net Interest Income /
Total Earning Assets)
    
    
    
    
    
    
    
    
    
    
    2.32
    %
    
    
    
    
    
    
    
    
    
    
    2.23
    %
    
    
    
    
    
    
    
    
    
    
    2.53
    %Taxable equivalent
    
    
    
    
    
    
    
    
    
    
    2.35
    %
    
    
    
    
    
    
    
    
    
    
    2.30
    %
    
    
    
    
    
    
    
    
    
    
    2.68
    %
 53




---



##### 



Community Central Bank Corporation
Managements Discussion and Analysis of Financial Condition and Results of Operations
 Provision for Credit Losses
  Noninterest Income
    54




---



##### 



Community Central Bank Corporation
Managements Discussion and Analysis of Financial Condition and Results of Operations
 Noninterest Expense
   Income Taxes
   55




---



##### 



Community Central Bank Corporation
Managements Discussion and Analysis of Financial Condition and Results of Operations
 Liquidity and Capital Resources; Asset/Liability Management
    Off-Balance Sheet Arrangements and Contractual Obligations
 Off-Balance Sheet Arrangements:
 56




---



##### 



Community Central Bank Corporation
Managements Discussion and Analysis of Financial Condition and Results of Operations
 Contractual Obligations:
 Payments Due by PeriodLess than
    
    1-3
    
    3-5
    
    More thanTotal
    
    1 Year
    
    Years
    
    Years
    
    5 Years(In thousands)Long term debt at face value (1)
    
    $
    18,557
    
    
    $
    
    
    
    $
    
    
    
    $
    
    
    
    $
    18,557Capital lease obligations
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Operating leases (2)
    
    
    1,318
    
    
    
    256
    
    
    
    222
    
    
    
    385
    
    
    
    255Other contractual obligations (3)
    
    
    2,160
    
    
    
    480
    
    
    
    960
    
    
    
    720
    
    
    
    
 
 (1)
    
    $18.6 million of subordinated debentures (see Note 11 to the Consolidated Financial Statements)(2)
    
    See Note 14 to the Consolidated Financial Statements(3)
    
    Remaining contract with core processing provider for IT services Quantitative and Qualitative Disclosure about Market Risk
     57




---



##### 



Community Central Bank Corporation
Managements Discussion and Analysis of Financial Condition and Results of Operations
  After Three
    
    
    After OneWithin
    
    
    Months But
    
    
    Year But
    
    
    AfterThree
    
    
    Within
    
    
    Within
    
    
    FiveMonths
    
    
    One Year
    
    
    Five Years
    
    
    Years
    
    
    Total(In thousands)Interest-earning assetsExcess cash and federal funds sold
    
    $
    26,163
    
    
    $
    
    
    
    $
    
    
    
    $
    
    
    
    $
    26,163Securities, at amortized cost
    
    
    4,220
    
    
    
    19,105
    
    
    
    41,558
    
    
    
    4,237
    
    
    
    69,120FHLB stock
    
    
    
    
    
    
    5,877
    
    
    
    
    
    
    
    
    
    
    
    5,877Loans (including held for sale)
    
    
    105,962
    
    
    
    69,782
    
    
    
    194,889
    
    
    
    36,031
    
    
    
    406,664Total
    
    
    136,345
    
    
    
    94,764
    
    
    
    236,447
    
    
    
    40,268
    
    
    $
    507,824Interest bearing liabilitiesNOW and money market accounts
    
    
    20,874
    
    
    
    6,917
    
    
    
    12,841
    
    
    
    1,240
    
    
    
    41,872Savings deposits
    
    
    528
    
    
    
    2,288
    
    
    
    5,984
    
    
    
    
    
    
    
    8,800Jumbo time deposits
    
    
    51,651
    
    
    
    94,395
    
    
    
    80,928
    
    
    
    
    
    
    
    226,974Time deposits < $100,000
    
    
    7,598
    
    
    
    31,439
    
    
    
    38,731
    
    
    
    
    
    
    
    77,768Repurchase agreements
    
    
    22,106
    
    
    
    
    
    
    
    19,000
    
    
    
    
    
    
    
    41,106FHLB
    
    
    
    
    
    
    22,000
    
    
    
    18,500
    
    
    
    25,200
    
    
    
    65,700Subordinated debentures
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    18,557
    
    
    
    18,557Total
    
    
    102,757
    
    
    
    157,039
    
    
    
    175,984
    
    
    
    44,997
    
    
    $
    480,777Rate sensitivity gap
    
    $
    33,588
    
    
    $
    (62,275
    )
    
    $
    60,463
    
    
    $
    (4,729
    )Cumulative rate sensitivity gap
    
    
    
    
    
    $
    (28,687
    )
    
    $
    31,776
    
    
    $
    27,047Rate sensitivity gap ratio
    
    
    1.33x
    
    
    
    0.60x
    
    
    
    1.34x
    
    
    
    .89xCumulative rate sensitivity gap ratio
    
    
    
    
    
    
    0.89x
    
    
    
    1.07x
    
    
    
    1.06x
   58




---



##### 



Community Central Bank Corporation
Managements Discussion and Analysis of Financial Condition and Results of Operations
  Percentage ChangeInterest Rate Scenario
    
    In Net Interest IncomeInterest rates up 300 basis points
    
    
    (15.69
    %)Interest rates up 200 basis points
    
    
    (9.59
    %)Interest rates up 100 basis points
    
    
    (4.45
    %)Base Case
    
    
    Interest rates down 100 basis points
    
    
    2.97
    %Interest rates down 200 basis points
    
    
    4.08
    %Interest rates down 300 basis points
    
    
    (0.58
    %)
 59




---



##### 



Community Central Bank Corporation
Stockholder Information
 SEC Form 10-K
 Copies of the Corporations annual report on Form 10-K, as filed with the Securities
and Exchange Commission are available to stockholders without charge, upon written
request. Please mail your request to Ray T. Colonius; Corporate Treasurer, Community
Central Bank Corporation, 120 North Main Street, Mount Clemens, MI 48043.
 Stock Information
   2009CashDividendsQuarter
    
    High
    
    
    Low
    
    
    DeclaredFourth
    
    $
    2.15
    
    
    $
    1.35
    
    
    $
    Third
    
    
    1.92
    
    
    
    1.02
    
    
    
    Second
    
    
    2.70
    
    
    
    1.15
    
    
    
    First
    
    
    2.50
    
    
    
    1.09
    
    
    
    
 2008CashDividendsQuarter
    
    High
    
    
    Low
    
    
    DeclaredFourth
    
    $
    4.50
    
    
    $
    1.38
    
    
    $
    Third
    
    
    4.50
    
    
    
    2.50
    
    
    
    0.02Second
    
    
    7.18
    
    
    
    2.74
    
    
    
    0.02First
    
    
    7.94
    
    
    
    4.56
    
    
    
    0.06
 60




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##### 



Community Central Bank Corporation
Stockholder Information
 Primary Market Makers
 
 th
   Stock Registrar and Transfer Agent
 
 Independent Auditor
 
 Legal Counsel
 
 Information
  Annual Meeting
  61




---



##### 



002CS-1A680