Exhibit 13
 
 
   December 31, 2008




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##### 



(PLANTE & MORAN LOGO)PLANTE & MORAN, PLLC
Suite 500
2601 Cambridge CourtAuburn Hills, MI 48326Tel: 248.375.7100Fax: 248.375.7101Plantemoran.com




























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##### 



Community Central Bank Corporation  Consolidated Balance Sheet
 December 31,2008
    
    
    2007(In thousands)AssetsCash and Cash EquivalentsCash and due from banks (Note 2)
    
    $
    9,162
    
    
    $
    6,183Federal funds sold
    
    
    7,000
    
    
    
    3,000Total Cash and Cash Equivalents
    
    
    16,162
    
    
    
    9,183Trading securities at fair value option (Note 3)
    
    
    17,463
    
    
    
    20,115Securities available for sale, at fair value (Note 3)
    
    
    76,552
    
    
    
    66,809Securities held to maturity, at amortized cost (Note 3)
    
    
    1,515
    
    
    
    977FHLB stock
    
    
    5,877
    
    
    
    5,527Residential mortgage loans held for sale
    
    
    3,302
    
    
    
    4,848Loans (Note 4)Commercial real estate
    
    
    284,811
    
    
    
    264,685Commercial and industrial
    
    
    38,714
    
    
    
    33,039Residential real estate
    
    
    54,409
    
    
    
    60,799Home equity lines of credit
    
    
    21,230
    
    
    
    20,906Consumer loans
    
    
    7,107
    
    
    
    9,754Credit card loans
    
    
    846
    
    
    
    729Total Loans
    
    
    407,117
    
    
    
    389,912Allowance for Credit Losses (Note 5)
    
    
    (7,315
    )
    
    
    (6,403
    )Net Loans
    
    
    399,802
    
    
    
    383,509Net property and equipment (Note 6)
    
    
    9,361
    
    
    
    8,704Accrued interest receivable
    
    
    2,479
    
    
    
    2,535Other real estate
    
    
    2,913
    
    
    
    854Goodwill (Note 1)
    
    
    638
    
    
    
    1,381Intangible assets, net of amortization (Note 1)
    
    
    80
    
    
    
    107Cash surrender value of Bank Owned Life Insurance (Note 13)
    
    
    10,975
    
    
    
    10,514Other assets (Note 16)
    
    
    9,831
    
    
    
    5,242Total Assets
    
    $
    556,950
    
    
    $
    520,305
 The accompanying notes are an integral part of the financial statements.




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##### 



Community Central Bank Corporation
Consolidated Balance Sheet
 December 31,2008
    
    
    2007(In thousands, except share data)LiabilitiesDepositsNoninterest bearing demand deposits
    
    $
    34,169
    
    
    $
    31,647NOW and money market accounts
    
    
    38,154
    
    
    
    53,467Savings deposits
    
    
    8,585
    
    
    
    9,326Time deposits (Note 7)
    
    
    276,468
    
    
    
    234,195Total Deposits
    
    
    357,376
    
    
    
    328,635Repurchase agreements (Note 8)
    
    
    39,394
    
    
    
    32,659Federal Home Loan Bank advances ($5.0 million at
fair value option at 12-31-2007) (Note 9)
    
    
    108,200
    
    
    
    104,495Accrued interest payable
    
    
    1,050
    
    
    
    1,018Other liabilities (Note 13)
    
    
    3,779
    
    
    
    2,637ESOP note payable (Note 10)
    
    
    
    
    
    
    36Subordinated debenture (at fair value option) (Note 11)
    
    
    12,757
    
    
    
    17,597Total Liabilities
    
    
    522,556
    
    
    
    487,077Stockholders Equity (Note 12)Preferred stock (7,000 shares authorized and 3,050 shares
issued and outstanding at December 31, 2008)
    
    
    3,050
    
    
    
    Common stock (No par value; 9,000,000 shares
authorized, and 3,734,781 and 3,733,081 issued and
outstanding at December 31, 2008 and December 31, 2007,
respectively)
    
    
    32,125
    
    
    
    32,071Retained earnings
    
    
    (516
    )
    
    
    1,797Unearned employee benefit (Note 13)
    
    
    
    
    
    
    (36
    )Accumulated other comprehensive loss
    
    
    (265
    )
    
    
    (604
    )Total Stockholders Equity
    
    
    34,394
    
    
    
    33,228Total Liabilities and Stockholders Equity
    
    $
    556,950
    
    
    $
    520,305
 The accompanying notes are an integral part of the financial statements.
 2




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##### 



Community Central Bank Corporation  Consolidated Statement of Income
 Year Ended December 31,2008
    
    
    2007
    
    
    2006(In thousands, except per share data)Interest IncomeLoans (including fees)
    
    $
    25,640
    
    
    $
    27,904
    
    
    $
    26,732Taxable securities
    
    
    3,743
    
    
    
    3,018
    
    
    
    3,203Tax exempt securities
    
    
    653
    
    
    
    1,402
    
    
    
    1,241Federal funds sold
    
    
    386
    
    
    
    601
    
    
    
    299Total Interest Income
    
    
    30,422
    
    
    
    32,925
    
    
    
    31,475Interest ExpenseNOW and money market accounts
    
    
    745
    
    
    
    2,335
    
    
    
    1,176Savings deposits
    
    
    226
    
    
    
    308
    
    
    
    299Time deposits
    
    
    11,141
    
    
    
    11,495
    
    
    
    12,111Repurchase agreements and fed funds purchased
    
    
    1,144
    
    
    
    912
    
    
    
    432Federal Home Loan Bank advances
    
    
    4,884
    
    
    
    4,059
    
    
    
    3,936ESOP loan interest expense
    
    
    1
    
    
    
    6
    
    
    
    10Subordinated debentures
    
    
    906
    
    
    
    1,620
    
    
    
    928Total Interest Expense
    
    
    19,047
    
    
    
    20,735
    
    
    
    18,892Net Interest Income
    
    
    11,375
    
    
    
    12,190
    
    
    
    12,583Provision for Credit Losses (Note 5)
    
    
    9,502
    
    
    
    3,600
    
    
    
    550Net Interest Income after Provision for Credit Losses
    
    
    1,873
    
    
    
    8,590
    
    
    
    12,033Noninterest IncomeFiduciary income
    
    
    370
    
    
    
    437
    
    
    
    289Deposit service charges
    
    
    488
    
    
    
    419
    
    
    
    357Net realized security (loss) gain (Note 3)
    
    
    214
    
    
    
    (74
    )
    
    
    8Change in fair value of assets/liabilities carried at
fair value under SFAS 159 (Note 21)
    
    
    7,541
    
    
    
    1,392
    
    
    
    Mortgage banking income
    
    
    1,562
    
    
    
    2,365
    
    
    
    3,376Other income
    
    
    1,276
    
    
    
    1,153
    
    
    
    905Total Noninterest Income
    
    
    11,451
    
    
    
    5,692
    
    
    
    4,935Noninterest ExpenseSalaries, benefits and payroll taxes (Note 13)
    
    
    7,572
    
    
    
    7,898
    
    
    
    8,768Net occupancy expense (Note 14)
    
    
    1,822
    
    
    
    1,806
    
    
    
    1,865Other operating expense (Note 15)
    
    
    7,324
    
    
    
    4,149
    
    
    
    3,876Total Noninterest Expense
    
    
    16,718
    
    
    
    13,853
    
    
    
    14,509Income (Loss) Before Taxes
    
    
    (3,394
    )
    
    
    429
    
    
    
    2,459Provision for Income Tax (Benefit) Expense (Note 16)
    
    
    (1,432
    )
    
    
    (295
    )
    
    
    363Net Income (Loss)
    
    $
    (1,962
    )
    
    $
    724
    
    
    $
    2,096
 The accompanying notes are an integral part of the financial statements.
 3




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##### 



Community Central Bank Corporation
Consolidated Statement of Income
 Year Ended December 31,2008
    
    2007
    
    2006(In thousands, except per share data)Per share data:*Basic earnings
    
    $
    (0.53
    )
    
    $
    0.19
    
    
    $
    0.52Diluted earnings
    
    $
    (0.53
    )
    
    $
    0.19
    
    
    $
    0.51Cash dividends
    
    $
    0.10
    
    
    $
    0.24
    
    
    $
    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 31,2008
    
    
    2007
    
    
    2006(In thousands)Net Income
(loss) as Reported
    
    
    ($1,962
    )
    
    $
    724
    
    
    $
    2,096Other
Comprehensive IncomeChange in unrealized net gain (loss) on securities
available for sale, net of tax of $175 in 2008, $(70) in 2007,
and $(7) in 2006.
    
    $
    339
    
    
    
    ($136
    )
    
    
    ($44
    )Comprehensive
Income (loss)
    
    
    ($1,623
    )
    
    $
    588
    
    
    $
    2,052
 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
 AccumulatedUnearned
    
    
    OtherPreferred
    
    
    Common
    
    
    Retained
    
    
    Employee
    
    
    Comprehensive
    
    
    TotalStock
    
    
    Stock
    
    
    Earnings
    
    
    Benefits
    
    
    Income (Loss)
    
    
    Equity(In thousands)Balance January 1, 2006
    
    $
    
    
    
    $
    31,154
    
    
    $
    5,245
    
    
    $
    (148
    )
    
    $
    (719
    )
    
    $
    35,532Cash dividend
    
    
    
    
    
    
    
    
    
    
    (918
    )
    
    
    
    
    
    
    
    
    
    
    (918
    )Stock awards
    
    
    
    
    
    
    31
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    31Stock options exercised
    
    
    
    
    
    
    221
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    221SFAS 123R
    
    
    
    
    
    
    23
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    23Stock dividend (Note 12)
    
    
    
    
    
    
    2,120
    
    
    
    (2,120
    )
    
    
    
    
    
    
    
    
    
    
    Net income for 2006
    
    
    
    
    
    
    
    
    
    
    2,096
    
    
    
    
    
    
    
    
    
    
    
    2,096Release of ESOP shares
    
    
    
    
    
    
    22
    
    
    
    
    
    
    
    53
    
    
    
    
    
    
    
    75Repurchase of common stock
    
    
    
    
    
    
    (351
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (351
    )Other comprehensive income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (44
    )
    
    
    (44
    )Balance December 31, 2006
    
    $
    
    
    
    $
    33,220
    
    
    $
    4,303
    
    
    $
    (95
    )
    
    $
    (763
    )
    
    $
    36,665Cumulative effect of adoption
of 
SFAS 159
    
    
    
    
    
    
    
    
    
    
    (420
    )
    
    
    
    
    
    
    
    
    
    
    (420
    )Cash dividend
    
    
    
    
    
    
    
    
    
    
    (931
    )
    
    
    
    
    
    
    
    
    
    
    (931
    )Stock awards
    
    
    
    
    
    
    21
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    21Stock options exercised
    
    
    
    
    
    
    320
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    320SFAS 123R
    
    
    
    
    
    
    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
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    17SFAS 123R
    
    
    
    
    
    
    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
    )
    
    $
    34,394
 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 31,2008
    
    
    2007
    
    
    2006(In thousands, except per share data)Operating ActivitiesNet income (loss)
    
    
    ($1,962
    )
    
    $
    724
    
    
    $
    2,096Adjustments to reconcile net income to net cash flow from operating activities:Net amortization of security premium
    
    
    67
    
    
    
    207
    
    
    
    187Net (gain) loss on available for sale securities
    
    
    (214
    )
    
    
    74
    
    
    
    (8
    )Net gain on instruments at fair value
    
    
    (7,541
    )
    
    
    (1,392
    )
    
    
    Provision for credit losses
    
    
    9,502
    
    
    
    3,600
    
    
    
    550Depreciation expense
    
    
    667
    
    
    
    705
    
    
    
    718Deferred income tax (benefit) expense
    
    
    (943
    )
    
    
    (561
    )
    
    
    (24
    )ESOP compensation expense
    
    
    36
    
    
    
    59
    
    
    
    75SFAS 123R option expense
    
    
    57
    
    
    
    31
    
    
    
    23Stock awards
    
    
    17
    
    
    
    21
    
    
    
    31Decrease (increase) in accrued interest receivable
    
    
    56
    
    
    
    64
    
    
    
    (477
    )(Increase) decrease in other assets
    
    
    9,541
    
    
    
    (2,040
    )
    
    
    (187
    )(Decrease) increase in accrued interest payable
    
    
    32
    
    
    
    (239
    )
    
    
    319Increase in other liabilities
    
    
    1,142
    
    
    
    1,008
    
    
    
    647Loans originated held for sale
    
    
    (70,967
    )
    
    
    (109,956
    )
    
    
    (119,934
    )Loans sold held for sale
    
    
    72,513
    
    
    
    108,548
    
    
    
    120,779(Increase) decrease in other real estate
    
    
    (2,059
    )
    
    
    (746
    )
    
    
    4Impairment of goodwill
    
    
    743
    
    
    
    
    
    
    
    Net Cash Provided By Operating Activities
    
    
    10,687
    
    
    
    107
    
    
    
    4,799Investing ActivitiesSales, maturities, calls and prepayments of securities available for sale
    
    
    70,241
    
    
    
    55,952
    
    
    
    33,537Purchases of securities available for sale
    
    
    (84,380
    )
    
    
    (41,999
    )
    
    
    (30,506
    )Maturities, calls, sales and prepayments of trading securities
    
    
    2,646
    
    
    
    13,606
    
    
    
    Transfer and purchase of trading securities
    
    
    
    
    
    
    (33,402
    )
    
    
    Maturities, calls, and prepayments of held to maturity securities
    
    
    124
    
    
    
    36
    
    
    
    158Purchases of held to maturity securities
    
    
    (1,265
    )
    
    
    (987
    )
    
    
    (295
    )Increase in loans
    
    
    (31,572
    )
    
    
    (23,641
    )
    
    
    (32,646
    )Purchases of property and equipment
    
    
    (1,324
    )
    
    
    (184
    )
    
    
    (1,190
    )Proceeds from sale of property and equipment
    
    
    
    
    
    
    60
    
    
    
    Net Cash Used in Investing Activities
    
    
    (45,530
    )
    
    
    (30,559
    )
    
    
    (30,942
    )Financing ActivitiesNet (decrease) increase in demand and savings deposits
    
    
    (13,532
    )
    
    
    (8,799
    )
    
    
    17,261Net (decrease) increase in time deposits
    
    
    42,273
    
    
    
    (18,422
    )
    
    
    24,222Net increase in short term borrowings
    
    
    6,735
    
    
    
    16,971
    
    
    
    2,504Issuance of subordinate debentures
    
    
    
    
    
    
    18,557
    
    
    
    Redemption of subordinate debentures
    
    
    
    
    
    
    (10,310
    )
    
    
    FHLB advances
    
    
    48,500
    
    
    
    43,000
    
    
    
    38,700FHLB advance repayments
    
    
    (44,810
    )
    
    
    (22,018
    )
    
    
    (41,717
    )Payment of ESOP debt
    
    
    (36
    )
    
    
    (59
    )
    
    
    (53
    )Stock options exercised
    
    
    
    
    
    
    320
    
    
    
    221Preferred stock issuance
    
    
    3,050
    
    
    
    
    
    
    
    Cash dividends paid
    
    
    (351
    )
    
    
    (931
    )
    
    
    (918
    )Repurchase of stock
    
    
    (7
    )
    
    
    (3,400
    )
    
    
    (351
    )Net Cash Provided by Financing Activities
    
    
    41,822
    
    
    
    14,909
    
    
    
    39,869Increase (decrease) in Cash and Cash Equivalents
    
    
    6,979
    
    
    
    (15,543
    )
    
    
    13,726Cash and Cash Equivalents at the Beginning of the Period
    
    
    9,183
    
    
    
    24,726
    
    
    
    11,000Cash and Cash Equivalents at the End of the Period
    
    $
    16,162
    
    
    $
    9,183
    
    
    $
    24,726Supplemental Disclosure of Cash Flow InformationInterest paid
    
    $
    19,015
    
    
    $
    20,974
    
    
    $
    18,892Federal Taxes Paid
    
    
    
    
    
    $
    300
    
    
    $
    175Loans transferred to other real estate owned
    
    $
    5,777
    
    
    $
    878
    
    
    $
    263
 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:
  Securities:
 Federal Home Loan Bank Stock:
 8




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##### 



Community Central Bank Corporation  Notes to Consolidated Financial Statements
 Loans:
 Loans Held for Sale:
 Allowance for Credit Losses:
 Foreclosed Assets:
 Property and Equipment:
 Goodwill:
 Intangible Assets:
 Stock Option Plan and Adoption of SFAS 123R:
 9




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##### 



Community Central Bank Corporation  Notes to Consolidated Financial Statements
 Earnings Per Share:
 Year Ended December 31,2008
    
    2007
    
    2006(In thousands of shares)Weighted average shares reconcilation is as follows:Basic
    
    
    3,731
    
    
    
    3,833
    
    
    
    4,014Effect of stock options
    
    
    6
    
    
    
    42
    
    
    
    67Diluted
    
    
    3,737
    
    
    
    3,875
    
    
    
    4,081
 Comprehensive Income:
 (2) Cash and Due from Banks
  (3) Securities
  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
    )
    
    
    11,559Other
    
    
    750
    
    
    
    
    
    
    
    (110
    )
    
    
    640Total Securities Available for Sale
    
    
    76,953
    
    
    
    528
    
    
    
    (929
    )
    
    
    76,552Held to Maturity SecuritiesMunicipal securities
    
    
    610
    
    
    
    
    
    
    
    (18
    )
    
    
    592U.S. Agency Mortgage backed securities
    
    
    905
    
    
    
    
    
    
    
    (3
    )
    
    
    902Total Held to Maturity Securities
    
    
    1,515
    
    
    
    
    
    
    
    (21
    )
    
    
    1,494Total Securities
    
    $
    78,468
    
    
    $
    528
    
    
    $
    (950
    )
    
    $
    78,046
 10




---



##### 



Community Central Bank Corporation  Notes to Consolidated Financial Statements
  December 31, 2008
    
    
    December 31, 2007Fair Value
    
    
    Fair ValueTrading SecuritiesUnited States Government agencies
    
    $
    11,594
    
    
    $
    13,396U.S. Agency Collaterized mortgage obligations
    
    
    5,869
    
    
    
    6,719Total Trading Securities Held at Fair Value
    
    $
    17,463
    
    
    $
    20,115
 December 31, 2007Amortized
    
    
    Unrealized
    
    
    FairCost
    
    
    Gains
    
    
    Losses
    
    
    Value(In thousands)Securities Available for SaleUnited States Government agencies
    
    $
    5,669
    
    
    $
    85
    
    
    $
    
    
    
    $
    5,754U.S. Agency Mortgage backed securities
    
    
    25,150
    
    
    
    81
    
    
    
    (143
    )
    
    
    25,088U.S. Agency Collateralized mortgage obligations
    
    
    6,773
    
    
    
    12
    
    
    
    (106
    )
    
    
    6,679Municipal securities
    
    
    29,632
    
    
    
    26
    
    
    
    (861
    )
    
    
    28,797Mutual fund
    
    
    500
    
    
    
    
    
    
    
    (9
    )
    
    
    491Total Securities Available for Sale
    
    
    67,724
    
    
    
    204
    
    
    
    (1,119
    )
    
    
    66,809Held to Maturity SecuritiesMunicipal securities
    
    
    95
    
    
    
    3
    
    
    
    
    
    
    
    98Trust Preferred securities
    
    
    250
    
    
    
    
    
    
    
    
    
    
    
    250U.S. Agency Mortgage backed securities
    
    
    632
    
    
    
    1
    
    
    
    (7
    )
    
    
    626Total Held to Maturity Securities
    
    
    977
    
    
    
    4
    
    
    
    (7
    )
    
    
    974Total Securities
    
    $
    68,701
    
    
    $
    208
    
    
    $
    (1,126
    )
    
    $
    67,783
  11




---



##### 



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 and other
    
    
    (110
    )
    
    
    640
    
    
    
    
    
    
    
    Total Securities Available for Sale
    
    $
    (920
    )
    
    $
    34,541
    
    
    $
    (9
    )
    
    $
    296
  December 31, 2007Less than 12 Months
    
    
    Over 12 MonthsGross
    
    
    
    
    
    
    GrossUnrealized
    
    
    Fair
    
    
    Unrealized
    
    
    FairLosses
    
    
    Value
    
    
    Losses
    
    
    Value(In thousands)Securities Available for Sale
United States Government agencies
    
    $
    
    
    
    $
    
    
    
    $
    
    
    
    $
    U.S. Agency Mortgage backed securities
    
    
    (56
    )
    
    
    8,297
    
    
    
    (87
    )
    
    
    8,589U.S. Agency Collateralized mortgage obligations
    
    
    (5
    )
    
    
    1,965
    
    
    
    (101
    )
    
    
    2,509Municipal securities
    
    
    (465
    )
    
    
    9,213
    
    
    
    (396
    )
    
    
    14,781Mutual fund
    
    
    
    
    
    
    
    
    
    
    (9
    )
    
    
    491Total Securities Available for Sale
    
    $
    (526
    )
    
    $
    19,475
    
    
    $
    (593
    )
    
    $
    26,370
  12




---



##### 



Community Central Bank Corporation  Notes to Consolidated Financial Statements
  2008
    
    
    2007
    
    
    2006Amortized
    
    
    Fair
    
    
    Yield
    
    
    Amortized
    
    
    Fair
    
    
    Yield
    
    
    Amortized
    
    
    Fair
    
    
    YieldCost
    
    
    Value
    
    
    (%)
    
    
    Cost
    
    
    Value
    
    
    (%)
    
    
    Cost
    
    
    Value
    
    
    (%)(In thousands)U.S. Government debenturesOne year or less
    
    $
    12,029
    
    
    $
    12,016
    
    
    
    5.80
    %
    
    $
    2,102
    
    
    $
    2,123
    
    
    
    5.40
    %
    
    $
    4,099
    
    
    $
    4,067
    
    
    
    4.14
    %Over 1 year through five years
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    2,606
    
    
    
    2,643
    
    
    
    4.88
    %
    
    
    12,122
    
    
    
    11,958
    
    
    
    4.64
    %Over 5 years through 10 years
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    961
    
    
    
    988
    
    
    
    5.32
    %
    
    
    3,232
    
    
    
    3,185
    
    
    
    5.32
    %Over ten years
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    12,029
    
    
    
    12,016
    
    
    
    5.80
    %
    
    
    5,669
    
    
    
    5,754
    
    
    
    5.15
    %
    
    
    19,453
    
    
    
    19,210
    
    
    
    4.65
    %State and political subdivisions *One year or less
    
    
    30
    
    
    
    30
    
    
    
    5.85
    %
    
    
    697
    
    
    
    696
    
    
    
    4.60
    %
    
    
    753
    
    
    
    743
    
    
    
    4.55
    %Over 1 year through five years
    
    
    633
    
    
    
    636
    
    
    
    5.82
    %
    
    
    2,964
    
    
    
    2,952
    
    
    
    4.54
    %
    
    
    3,700
    
    
    
    3,632
    
    
    
    4.78
    %Over 5 years through 10 years
    
    
    3,523
    
    
    
    3,493
    
    
    
    6.07
    %
    
    
    4,323
    
    
    
    4,292
    
    
    
    5.79
    %
    
    
    4,871
    
    
    
    4,849
    
    
    
    5.87
    %Over ten years
    
    
    8,456
    
    
    
    7,992
    
    
    
    6.12
    %
    
    
    21,743
    
    
    
    20,955
    
    
    
    6.26
    %
    
    
    22,296
    
    
    
    21,938
    
    
    
    6.66
    %12,642
    
    
    
    12,151
    
    
    
    6.09
    %
    
    
    29,727
    
    
    
    28,895
    
    
    
    5.98
    %
    
    
    31,620
    
    
    
    31,162
    
    
    
    6.27
    %U.S. government mortgage-backed
and collateralized mortgage
obligations
    
    
    52,797
    
    
    
    52,989
    
    
    
    4.76
    %
    
    
    32,555
    
    
    
    32,393
    
    
    
    5.12
    %
    
    
    31,266
    
    
    
    30,812
    
    
    
    4.92
    %Mutual Fund (CRA Qualified)
    
    
    500
    
    
    
    490
    
    
    
    5.50
    %
    
    
    500
    
    
    
    491
    
    
    
    4.20
    %
    
    
    500
    
    
    
    485
    
    
    
    3.98
    %Trust Preferred securities
    
    
    500
    
    
    
    400
    
    
    
    6.25
    %
    
    
    250
    
    
    
    250
    
    
    
    8.50
    %
    
    
    250
    
    
    
    240
    
    
    
    8.50
    %Total securities
    
    $
    78,468
    
    
    $
    78,046
    
    
    
    5.15
    %
    
    $
    68,701
    
    
    $
    67,783
    
    
    
    5.50
    %
    
    $
    83,089
    
    
    $
    81,909
    
    
    
    5.38
    %Memo:Securities with variable interest rates
included above. This includes
U.S. government mortgage-backed
and collateralized mortgage
obligations, with all others fixed.
    
    
    10,437
    
    
    
    10,219
    
    
    
    
    
    
    
    8,687
    
    
    
    8,671
    
    
    
    
    
    
    
    9,918
    
    
    
    9,797
 
 *
    
    weighted yield on state and political subdivisions is calculated on a taxable equivalent basis
and is based on yield to maturity of the instruments.   13




---



##### 



Community Central Bank Corporation  Notes to Consolidated Financial Statements
 (4) Loans
     2008
    
    
    2007
    
    
    2006
    
    
    2005
    
    
    
    
    
    
    2004(In thousands)Commercial real estate
    
    
    (1
    )
    
    $
    284,811
    
    
    $
    264,685
    
    
    $
    236,399
    
    
    $
    201,348
    
    
    
    (2
    )
    
    $
    166,686Commercial and industrial
    
    
    
    
    
    
    38,714
    
    
    
    33,039
    
    
    
    28,393
    
    
    
    26,753
    
    
    
    (2
    )
    
    
    40,614Residential real estate
    
    
    
    
    
    
    54,409
    
    
    
    60,799
    
    
    
    72,517
    
    
    
    74,601
    
    
    
    
    
    
    
    64,240Home equity lines
    
    
    
    
    
    
    21,230
    
    
    
    20,906
    
    
    
    17,614
    
    
    
    18,545
    
    
    
    
    
    
    
    18,864Consumer loans
    
    
    
    
    
    
    7,107
    
    
    
    9,754
    
    
    
    11,666
    
    
    
    13,054
    
    
    
    
    
    
    
    14,377Credit cards
    
    
    
    
    
    
    846
    
    
    
    729
    
    
    
    693
    
    
    
    650
    
    
    
    
    
    
    
    658Total loans
    
    
    
    
    
    $
    407,117
    
    
    $
    389,912
    
    
    $
    367,282
    
    
    $
    334,951
    
    
    
    
    
    
    $
    305,439
 
 (1)
    
    Included in the category of commercial real estate in the above table are
real estate construction loans totaling $22.9 million, $47.8 million, $42.4
million, $40.6 million and $18.2 million for the years ended 2008, 2007, 2006,
2005 and 2004, respectively.(2)
    
    Approximately $12.0 million of the commercial and industrial loan portfolio
was reclassified during the first quarter of 2005 as commercial real estate
loans.   14




---



##### 



Community Central Bank Corporation  Notes to Consolidated Financial Statements
   (In thousands)2009
    
    $
    21,0312010 to 2013
    
    
    15,0172014 and thereafter
    
    
    2,666Total loans
    
    $
    38,714
   (In thousands)2009
    
    $
    22,5432010 to 2013
    
    
    3242014 and thereafter
    
    
    Total loans
    
    $
    22,867
  15




---



##### 



Community Central Bank Corporation  Notes to Consolidated Financial Statements
 (5) Allowance for Credit Losses
  2008
    
    
    2007
    
    
    2006
    
    
    2005
    
    
    2004(Dollars in thousands)Balance at beginning of the period
    
    $
    6,403
    
    
    $
    3,815
    
    
    $
    3,580
    
    
    $
    3,377
    
    
    $
    3,573Charge-offs:Commercial real estate
    
    
    6,895
    
    
    
    338
    
    
    
    
    
    
    
    181
    
    
    
    Commercial and industrial
    
    
    270
    
    
    
    110
    
    
    
    248
    
    
    
    57
    
    
    
    2,040Residential real estate
    
    
    426
    
    
    
    106
    
    
    
    21
    
    
    
    103
    
    
    
    61Home equity lines
    
    
    577
    
    
    
    131
    
    
    
    21
    
    
    
    
    
    
    
    Consumer loans
    
    
    669
    
    
    
    382
    
    
    
    40
    
    
    
    171
    
    
    
    71Credit cards
    
    
    33
    
    
    
    33
    
    
    
    13
    
    
    
    12
    
    
    
    44Total charge-offs
    
    
    8,870
    
    
    
    1,100
    
    
    
    343
    
    
    
    524
    
    
    
    2,216Recoveries:Commercial real estate
    
    
    52
    
    
    
    
    
    
    
    
    
    
    
    1
    
    
    
    Commercial and industrial
    
    
    218
    
    
    
    12
    
    
    
    14
    
    
    
    606
    
    
    
    1Residential real estate
    
    
    
    
    
    
    
    
    
    
    8
    
    
    
    
    
    
    
    Home equity lines
    
    
    1
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Consumer loans
    
    
    7
    
    
    
    69
    
    
    
    5
    
    
    
    18
    
    
    
    18Credit cards
    
    
    2
    
    
    
    7
    
    
    
    1
    
    
    
    2
    
    
    
    1Total recoveries
    
    
    280
    
    
    
    88
    
    
    
    28
    
    
    
    627
    
    
    
    20Net charge-offs
    
    
    8,590
    
    
    
    1,012
    
    
    
    315
    
    
    
    (103
    )
    
    
    2,196Provision charged to earnings
    
    
    9,502
    
    
    
    3,600
    
    
    
    550
    
    
    
    100
    
    
    
    2,000Balance at the end of the period
    
    $
    7,315
    
    
    $
    6,403
    
    
    $
    3,815
    
    
    $
    3,580
    
    
    $
    3,377As a percentage of total portfolio loans
    
    
    1.80
    %
    
    
    1.64
    %
    
    
    1.04
    %
    
    
    1.07
    %
    
    
    1.11
    %Ratio of net charge-offs (net recoveries)
during the period to average
loans during the period
    
    
    2.17
    %
    
    
    0.27
    %
    
    
    0.09
    %
    
    
    (0.03
    %)
    
    
    0.74
    %
  16




---



##### 



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, 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
    %December 31, 2004
    
    $
    805
    
    
    $
    1,673
    
    
    $
    441
    
    
    $
    94
    
    
    $
    205
    
    
    $
    30
    
    
    $
    129
    
    
    $
    3,377% of loans in category
    
    
    54.60
    %
    
    
    13.30
    %
    
    
    21.00
    %
    
    
    6.20
    %
    
    
    4.70
    %
    
    
    0.20
    %
    
    
    
    
    
    
    100.00
    %
     17




---



##### 



Community Central Bank Corporation  Notes to Consolidated Financial Statements
 Nonperforming Assets
  December 31,2008
    
    2007
    
    2006
    
    2005
    
    2004(In thousands)Nonaccrual loans:Commercial real estate
    
    $
    12,579
    
    
    $
    14,379
    
    
    $
    2,711
    
    
    $
    1,637
    
    
    $
    220Commercial and industrial
    
    
    96
    
    
    
    146
    
    
    
    646
    
    
    
    985
    
    
    
    305Residential real estate
    
    
    3,578
    
    
    
    2,053
    
    
    
    
    
    
    
    67
    
    
    
    16Home equity lines
    
    
    760
    
    
    
    354
    
    
    
    
    
    
    
    
    
    
    
    Consumer loans
    
    
    571
    
    
    
    30
    
    
    
    
    
    
    
    
    
    
    
    Credit cards
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Total
    
    
    17,584
    
    
    
    16,962
    
    
    
    3,357
    
    
    
    2,689
    
    
    
    541Accruing loans delinquent more
than 90 days:Commercial real estate
    
    $
    
    
    
    $
    
    
    
    $
    
    
    
    $
    
    
    
    $
    Commercial and industrial
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Residential real estate
    
    
    
    
    
    
    654
    
    
    
    876
    
    
    
    621
    
    
    
    100Home equity lines
    
    
    
    
    
    
    44
    
    
    
    336
    
    
    
    
    
    
    
    Consumer loans
    
    
    
    
    
    
    
    
    
    
    160
    
    
    
    1
    
    
    
    124Credit cards
    
    
    44
    
    
    
    25
    
    
    
    1
    
    
    
    1
    
    
    
    10Total
    
    
    44
    
    
    
    723
    
    
    
    1,373
    
    
    
    623
    
    
    
    234Troubled debt restructured loans:Commercial real estate
    
    
    6,078
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Commercial and industrial
    
    
    1,589
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Residential real estate
    
    
    495
    
    
    
    253
    
    
    
    
    
    
    
    
    
    
    
    Total
    
    
    8,162
    
    
    
    253
    
    
    
    
    
    
    
    
    
    
    
    Total nonperforming loans
    
    
    25,790
    
    
    
    17,938
    
    
    
    4,730
    
    
    
    3,312
    
    
    
    775Other real estate owned:Commercial real estate
    
    
    2,493
    
    
    
    319
    
    
    
    
    
    
    
    
    
    
    
    681Residential real estate
    
    
    420
    
    
    
    535
    
    
    
    108
    
    
    
    112
    
    
    
    Total
    
    
    2,913
    
    
    
    854
    
    
    
    108
    
    
    
    112
    
    
    
    681Other repossessed assets-boats
    
    
    976
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Total nonperforming assets
    
    $
    29,679
    
    
    $
    18,792
    
    
    $
    4,838
    
    
    $
    3,424
    
    
    $
    1,456Total nonperforming loans as a
percentage of total loans
    
    
    6.33
    %
    
    
    4.54
    %
    
    
    1.29
    %
    
    
    0.99
    %
    
    
    0.25
    %Total nonperforming assets as a
percentage of total assets
    
    
    5.33
    %
    
    
    3.61
    %
    
    
    0.96
    %
    
    
    0.74
    %
    
    
    0.37
    %
  18




---



##### 



Community Central Bank Corporation
Notes to Consolidated Financial Statements
  (6) Property and Equipment
  2008
    
    
    2007(In thousands)Land
    
    $
    1,340
    
    
    $
    1,340Buildings and improvements
    
    
    5,941
    
    
    
    5,883Building construction in process
    
    
    182
    
    
    
    93Leasehold improvements
    
    
    1,650
    
    
    
    746Furniture and equipment
    
    
    4,709
    
    
    
    4,435Vehicles
    
    
    42
    
    
    
    4213,864
    
    
    
    12,539Less accumulated depreciation and amortization
    
    
    4,503
    
    
    
    3,835Net property and equipment
    
    $
    9,361
    
    
    $
    8,704
 (7) Time Deposits
  Year Ending December 31,
    
    (In thousands)2009
    
    $
    172,5812010
    
    
    102,4832011
    
    
    1,4042012
    
    
    2013
    
    
    Subsequent years
    
    
    Total Time Deposits
    
    $
    276,468
  (In thousands)Three months or less
    
    $
    41,378Over three months to twelve months
    
    
    108,075Over one year to three years
    
    
    83,330Over three years
    
    
    Total time deposits of $100,000 or more
    
    $
    232,783
 19




---



##### 



Community Central Bank Corporation
Notes to Consolidated Financial Statements
 (8) Short-term Borrowings
   Year Ended December 31,2008
    
    2007
    
    2006(Dollars in thousands)Amount outstanding at end of year:Short-term Repurchase agreements
    
    $
    20,394
    
    
    $
    13,659
    
    
    $
    15,688Short-term FHLB advances
    
    $
    25,500
    
    
    $
    23,795
    
    
    $
    14,000Weighted average interest rate on ending balance:Short-term Repurchase agreements
    
    
    1.62
    %
    
    
    3.00
    %
    
    
    3.15
    %Short-term FHLB advances
    
    
    3.50
    %
    
    
    4.14
    %
    
    
    3.92
    %Maximum amount outstanding at any month end
during the year:Short-term Repurchase agreements
    
    $
    20,394
    
    
    $
    14,932
    
    
    $
    21,832Short-term FHLB advances
    
    $
    25,500
    
    
    $
    23,795
    
    
    $
    26,700Average amount outstanding during the year:Short-term Repurchase agreements
    
    $
    13,589
    
    
    $
    13,330
    
    
    $
    13,443Short-term FHLB advances
    
    $
    17,484
    
    
    $
    19,831
    
    
    $
    11,500Weighted average interest rate:Short-term Repurchase agreements
    
    
    1.97
    %
    
    
    3.10
    %
    
    
    2.91
    %Short-term FHLB advances
    
    
    4.05
    %
    
    
    4.16
    %
    
    
    3.76
    %
 20




---



##### 



Community Central Bank Corporation
Notes to Consolidated Financial Statements
 (9) FHLB Advances
   December 31, 2008
    
    
    December 31, 2007Ending
    
    
    Average rate
    
    
    Ending
    
    
    Average rateBalance
    
    
    at end of period
    
    
    Balance
    
    
    at end of period(Dollars in thousands)Short-term FHLB advances
    
    $
    25,500
    
    
    
    3.50
    %
    
    $
    23,795
    
    
    
    4.14
    %Long-term FHLB advances
    
    
    82,700
    
    
    
    4.43
    %
    
    
    80,700
    
    
    
    4.70
    %$
    108,200
    
    
    
    4.21
    %
    
    $
    104,495
    
    
    
    4.57
    %
   Year Ending December 31,
    
    (In thousands)2010
    
    $
    39,0002011
    
    
    10,5002012
    
    
    7,0002013
    
    
    Subsequent years
    
    
    26,200Total
    
    $
    82,700
  21




---



##### 



Community Central Bank Corporation
Notes to Consolidated Financial Statements
 (10) ESOP Note Payable
  (11) Subordinated Debentures
    (12) Stockholders Equity
   Preferred Stock Issuance
  22




---



##### 



Community Central Bank Corporation
Notes to Consolidated Financial Statements
       23




---



##### 



Community Central Bank Corporation
Notes to Consolidated Financial Statements
  Minimum Ratiofor Capital2008
    
    2007
    
    Adequacy
    
    Ratio to beCapital
    
    Ratio
    
    Capital
    
    Ratio
    
    Purposes
    
    Well Capitalized(Dollars in thousands)Tier I capital to risk-weighted assetsConsolidated
    
    $
    45,054
    
    
    
    10.41
    %
    
    $
    42,932
    
    
    
    10.29
    %
    
    
    4
    %
    
    NABank only
    
    
    39,928
    
    
    
    9.28
    %
    
    
    42,889
    
    
    
    10.32
    %
    
    
    4
    %
    
    
    6
    %Total capital to risk-weighted assetsConsolidated
    
    $
    57,199
    
    
    
    13.22
    %
    
    $
    55,430
    
    
    
    13.28
    %
    
    
    8
    %
    
    NABank only
    
    
    45,338
    
    
    
    10.54
    %
    
    
    48,199
    
    
    
    11.57
    %
    
    
    8
    %
    
    
    10
    %Tier I capital to average assetsConsolidated
    
    $
    45,054
    
    
    
    8.21
    %
    
    $
    42,932
    
    
    
    8.37
    %
    
    
    4
    %
    
    NABank only
    
    
    39,928
    
    
    
    7.30
    %
    
    
    42,889
    
    
    
    8.39
    %
    
    
    4
    %
    
    
    5
    %
 (13) Benefit Plans
 Defined Contribution Plan
 Employee Stock Ownership Plan
  24




---



##### 



Community Central Bank Corporation
Notes to Consolidated Financial Statements
  2008
    
    2007
    
    2006(In thousands)Amounts paid by the ESOP for:Debt repayment *
    
    $
    36
    
    
    $
    59
    
    
    $
    53Interest
    
    $
    1
    
    
    $
    6
    
    
    $
    10Other
    
    $
    5
    
    
    $
    4
    
    
    $
    12Amounts received from the Corporation as:Contributions to the ESOP
    
    $
    42
    
    
    $
    69
    
    
    $
    72
 
 *
    
    Includes debt repayment in 2008, 2007 and 2006 from cash contained in the ESOP from
accumulated dividends. Supplemental Executive Retirement Plan
 2008
    
    
    2007(In thousands)Plan assets at fair value
    
    $
    
    
    
    $
    Benefit obligation
    
    
    2,072
    
    
    
    1,676Overfunded (underfunded) status
    
    $
    (2,072
    )
    
    $
    (1,676
    )Pension liability
    
    $
    (2,072
    )
    
    $
    (1,676
    )Net pension costs
    
    $
    396
    
    
    $
    356Actuarial comparisons:Weighted average discount rate
    
    
    7.0
    %
    
    
    7.0
    %Increase in future compensation levels
    
    
    3.0
    %
    
    
    5.0
    %
  25




---



##### 



Community Central Bank Corporation
Notes to Consolidated Financial Statements
 Stock Option Plans 
  Year Ended December 31,2008
    
    2007
    
    2006(In thousands)Stock-based employee compensation expense,
net of related tax effects, included in reported net income
    
    
    57
    
    
    
    31
    
    
    
    23
  2008
    
    2007
    
    2006Dividend yield or expected dividends
    
    
    
    
    
    
    3.24
    %
    
    
    2.06
    %Risk free interest rate
    
    
    2.50
    %
    
    
    4.20
    %
    
    
    4.80
    %Expected life
    
    10 years
    
    10 years
    
    10 yearsExpected volatility
    
    
    50.27
    %
    
    
    34.50
    %
    
    
    19.19
    %
 26




---



##### 



Community Central Bank Corporation
Notes to Consolidated Financial Statements
  2008
    
    
    2007
    
    
    2006Weighted
    
    
    
    
    
    
    Weighted
    
    
    
    
    
    
    WeightedNumber of
    
    
    Average
    
    
    Number of
    
    
    Average
    
    
    Number of
    
    
    AverageShares
    
    
    Exercise Price
    
    
    Shares
    
    
    Exercise Price
    
    
    Shares
    
    
    Exercise PriceOutstanding, beginning
of period
    
    
    286,993
    
    
    $
    9.10
    
    
    
    330,272
    
    
    $
    8.93
    
    
    
    315,510
    
    
    $
    8.56Granted
    
    
    49,750
    
    
    
    1.89
    
    
    
    47,500
    
    
    
    7.59
    
    
    
    48,300
    
    
    
    10.76Exercised
    
    
    
    
    
    
    
    
    
    
    (56,638
    )
    
    
    5.57
    
    
    
    (26,647
    )
    
    
    6.82Forfeited
    
    
    (33,268
    )
    
    
    9.21
    
    
    
    (34,141
    )
    
    
    11.19
    
    
    
    (6,891
    )
    
    
    13.01Outstanding, end of year
    
    
    303,475
    (a)
    
    $
    7.91
    
    
    
    286,993
    
    
    $
    9.10
    
    
    
    330,272
    
    
    $
    8.93
  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
    
    
    1.0 years
    
    $
    4.30
    
    
    
    4,534
    
    
    $
    4.304.52
    
    
    
    
    5,331
    
    
    1.8 years
    
    
    4.52
    
    
    
    5,331
    
    
    
    4.524.98
    
    
    
    
    8,794
    
    
    2.3 years
    
    
    4.98
    
    
    
    8,794
    
    
    
    4.984.71
    
    
    
    
    15,516
    
    
    2.4 years
    
    
    4.71
    
    
    
    15,516
    
    
    
    4.716.99  7.34
    
    
    
    
    27,439
    
    
    3.4 years
    
    
    7.00
    
    
    
    27,439
    
    
    
    7.008.28
    
    
    
    
    6,078
    
    
    4.5 years
    
    
    8.28
    
    
    
    6,078
    
    
    
    8.289.82  10.31
    
    
    
    
    22,490
    
    
    4.9 years
    
    
    9.84
    
    
    
    22,490
    
    
    
    9.8211.15
    
    
    
    
    38,561
    
    
    5.9 years
    
    
    11.15
    
    
    
    38,561
    
    
    
    11.1513.15
    
    
    
    
    3,583
    
    
    6.6 years
    
    
    13.15
    
    
    
    3,583
    
    
    
    13.1511.98- 13.15
    
    
    
    
    41,899
    
    
    6.9 years
    
    
    11.98
    
    
    
    41,899
    
    
    
    11.9810.76
    
    
    
    
    32,000
    
    
    8.0 years
    
    
    10.76
    
    
    
    6,400
    
    
    
    10.767.59
    
    
    
    
    47,500
    
    
    8.9 years
    
    
    7.59
    
    
    
    9,500
    
    
    
    7.591.89
    
    
    
    
    49,750
    
    
    10.0 years
    
    
    1.89
    
    
    
    
    
    
    
    303,475
    
    
    
    
    
    
    $
    7.91
    
    
    
    190,125
    
    
    $
    9.17
 All share number and exercise price data have been adjusted to reflect the issuance
of stock dividends.
 
 
 27




---



##### 



Community Central Bank Corporation
Notes to Consolidated Financial Statements
 (14) Leases
  Year ending December 31,
    
    (In thousands)2009
    
    $
    2542010
    
    
    2482011
    
    
    2042012
    
    
    2062013
    
    
    211Subsequent years
    
    
    430Total minimum rental payments
    
    $
    1,553
 (15) Other Operating Expense
  2008
    
    
    2007
    
    
    2006Year Ended December 31,
    
    
    
    
    
    (In thousands)Advertising, business development and
public relations
    
    $
    536
    
    
    $
    528
    
    
    $
    645Data processing
    
    
    728
    
    
    
    625
    
    
    
    549Professional and regulatory fees
    
    
    600
    
    
    
    417
    
    
    
    425Legal fees
    
    
    465
    
    
    
    288
    
    
    
    316Director fees
    
    
    281
    
    
    
    283
    
    
    
    316Printing and supplies
    
    
    206
    
    
    
    172
    
    
    
    165Telephone
    
    
    174
    
    
    
    177
    
    
    
    214Other real estate owned
    
    
    2,056
    
    
    
    68
    
    
    
    13Loan closing
    
    
    105
    
    
    
    113
    
    
    
    171Impairment loss
    
    
    743
    
    
    
    
    
    
    
    Other insurance
    
    
    117
    
    
    
    127
    
    
    
    131Deposit insurance
    
    
    410
    
    
    
    283
    
    
    
    41Michigan business tax
    
    
    12
    
    
    
    128
    
    
    
    87Other
    
    
    891
    
    
    
    940
    
    
    
    803Total other operating expense
    
    $
    7,324
    
    
    $
    4,149
    
    
    $
    3,876
 28




---



##### 



Community Central Bank Corporation
Notes to Consolidated Financial Statements
 (16) Taxes on Income
  2008
    
    
    2007
    
    
    2006(In thousands)Current tax (benefit) expense
    
    $
    (489
    )
    
    $
    266
    
    
    $
    387Deferred tax (benefit) expense
    
    
    (943
    )
    
    
    (561
    )
    
    
    (24
    )Total income tax (benefit) expense
    
    $
    (1,432
    )
    
    $
    (295
    )
    
    $
    363
  2008
    
    
    2007(In thousands)Deferred tax assetsProvision for loan losses
    
    $
    2,321
    
    
    $
    1,626Depreciation
    
    
    91
    
    
    
    82SERP Expense
    
    
    705
    
    
    
    570Unrealized net loss on securities available for sale
    
    
    136
    
    
    
    311NOL
    
    
    1,990
    
    
    
    24Intangible asset amortization
    
    
    74
    
    
    
    74Other real estate owned timing difference
    
    
    540
    
    
    
    AMT carryforward
    
    
    73
    
    
    
    150Other
    
    
    291
    
    
    
    270$
    6,221
    
    
    $
    3,107Valuation allowance for deferred tax assets
    
    
    
    
    
    
    Deferred tax liabilitiesFinancial instruments at fair value option
    
    
    (2,820
    )
    
    
    (411
    )Original issue discount
    
    
    (63
    )
    
    
    (70
    )Accretion
    
    
    (27
    )
    
    
    (35
    )FHLB dividends
    
    
    (104
    )
    
    
    (104
    )Net deferred loan fees
    
    
    (32
    )
    
    
    (6
    )Goodwill amortization
    
    
    (51
    )
    
    
    (105
    )Other
    
    
    (127
    )
    
    
    (147
    )(3,224
    )
    
    
    (878
    )Net deferred tax asset
    
    $
    2,997
    
    
    $
    2,229
  29




---



##### 



Community Central Bank Corporation
Notes to Consolidated Financial Statements
  Year Ended December 31,2008
    
    
    2007
    
    
    2006(In thousands)Provision at statutory federal income tax rate
    
    $
    (1,135
    )
    
    $
    146
    
    
    $
    836Nondeductible expenditures
    
    
    45
    
    
    
    62
    
    
    
    43Tax exempt municipal interest
    
    
    (186
    )
    
    
    (384
    )
    
    
    (399
    )Increase in cash surrender value of bank owned
life insurance
    
    
    (156
    )
    
    
    (119
    )
    
    
    (117
    )Provision at effective federal income tax rate
    
    $
    (1,432
    )
    
    $
    (295
    )
    
    $
    363
 (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:
 30




---



##### 



Community Central Bank Corporation
Notes to Consolidated Financial Statements
 Repurchase agreements:
 Accrued interest:
 ESOP loan
 Subordinated debentures:
 Commitments:
  2008
    
    2007Carrying
    
    Estimated
    
    Carrying
    
    EstimatedAmount
    
    Fair Value
    
    Amount
    
    Fair Value(In thousands)Financial Assets:Cash and cash equivalents
    
    $
    16,162
    
    
    $
    16,162
    
    
    $
    9,183
    
    
    $
    9,183Trading securities (a)
    
    
    17,463
    
    
    
    17,463
    
    
    
    20,115
    
    
    
    20,115Securities
    
    
    78,067
    
    
    
    78,046
    
    
    
    67,786
    
    
    
    67,783FHLB stock
    
    
    5,877
    
    
    
    5,877
    
    
    
    5,527
    
    
    
    5,527Residential mortgages held for sale
    
    
    3,302
    
    
    
    3,302
    
    
    
    4,848
    
    
    
    4,848Loans, net of allowance
    
    
    399,802
    
    
    
    416,903
    
    
    
    383,509
    
    
    
    394,431Accrued interest receivable
    
    
    2,479
    
    
    
    2,479
    
    
    
    2,535
    
    
    
    2,535Interest rate swap
    
    
    3,538
    
    
    
    3,538
    
    
    
    668
    
    
    
    668Financial Liabilities:Demand and savings deposits
    
    
    80,908
    
    
    
    80,908
    
    
    
    94,440
    
    
    
    94,440Time deposits
    
    
    276,468
    
    
    
    286,145
    
    
    
    234,195
    
    
    
    237,614Repurchase agreements
    
    
    39,394
    
    
    
    39,394
    
    
    
    32,659
    
    
    
    32,659Federal Home Loan Bank advances
    
    
    108,200
    
    
    
    111,738
    
    
    
    104,495
    
    
    
    102,558Accrued interest payable
    
    
    1,050
    
    
    
    1,050
    
    
    
    1,018
    
    
    
    1,018ESOP loan
    
    
    
    
    
    
    
    
    
    
    36
    
    
    
    36Subordinated debentures (a)
    
    
    12,757
    
    
    
    12,757
    
    
    
    17,597
    
    
    
    17,597Interest rate swap
    
    
    958
    
    
    
    958
    
    
    
    541
    
    
    
    541
 
 (a)
    
    Carried at fair value under SFAS 159, The Fair Value Option for
Financial Assets and Liabilities for the entire category. 31




---



##### 



Community Central Bank Corporation
Notes to Consolidated Financial Statements
 (18) Off-Balance Sheet Risk
     2008
    
    
    2007(In thousands)Unused home equity lines of credit
    
    $
    9,819
    
    
    $
    9,293Unused credit card lines
    
    
    1,890
    
    
    
    1,701Unused portion of construction lines of credit
    
    
    7,756
    
    
    
    16,463Unused portion of all other credit lines
    
    
    49,652
    
    
    
    52,950Standby letters of credit
    
    
    1,015
    
    
    
    1,047Total outstanding commitments
    
    $
    70,132
    
    
    $
    81,454
 (19) Restrictions on Dividends, Loans and Advances
  32




---



##### 



Community Central Bank Corporation
Notes to Consolidated Financial Statements
 (20) Parent-only Financial Statements
  Parent-only Balance Sheet
 December 31,2008
    
    
    2007(In thousands)AssetsCash
    
    $
    3,523
    
    
    $
    5,764Accrued interest receivable
    
    
    32
    
    
    
    Investment in subsidiary
    
    
    41,773
    
    
    
    43,929Investment in unconsolidated subsidiary
    
    
    557
    
    
    
    557Other assets
    
    
    2,004
    
    
    
    1,257Total Assets
    
    $
    47,889
    
    
    $
    51,507Liabilities and Stockholders EquityDue to subsidiary/Other liabilities
    
    $
    738
    
    
    $
    682Subordinated debentures
    
    
    12,757
    
    
    
    17,597Total Liabilities
    
    
    13,495
    
    
    
    18,279Preferred stock
    
    
    3,050
    
    
    
    Common stock
    
    
    32,125
    
    
    
    32,071Retained earnings
    
    
    (516
    )
    
    
    1,797Unearned employee benefit
    
    
    
    
    
    
    (36
    )Accumulated other comprehensive income
    
    
    (265
    )
    
    
    (604
    )Total Stockholders Equity
    
    
    34,394
    
    
    
    33,228Total Liabilities and Stockholders Equity
    
    $
    47,889
    
    
    $
    51,507
 33




---



##### 



Community Central Bank Corporation
Notes to Consolidated Financial Statements
 Parent-only Statement of Operations
 Year Ended December 31,2008
    
    
    2007
    
    
    2006(In thousands)Operating IncomeInterest income
    
    $
    84
    
    
    $
    391
    
    
    $
    76Other income
    
    
    10
    
    
    
    
    
    
    
    Dividend from subsidiary
    
    
    250
    
    
    
    1,400
    
    
    
    1,400Total Interest and Dividend Income
    
    
    344
    
    
    
    1,791
    
    
    
    1,476Interest ExpenseSubordinated debentures
    
    
    905
    
    
    
    1,621
    
    
    
    929Net interest (loss) income
    
    
    (561
    )
    
    
    170
    
    
    
    547Change in fair value under SFAS 159
    
    
    7,710
    
    
    
    1,811
    
    
    
    Other expense
    
    
    721
    
    
    
    865
    
    
    
    932Total Operating Expense
    
    
    721
    
    
    
    865
    
    
    
    932Income (Loss) Before Taxes and Undistributed
Income of Subsidiary
    
    
    6,428
    
    
    
    1,116
    
    
    
    (385
    )Income tax expense (benefit)
    
    
    2,123
    
    
    
    (83
    )
    
    
    (597
    )Income Before Share in Undistributed
Income of Subsidiary
        
    
    4,305
    
    
    
    1,199
    
    
    
    212Share of undistributed (loss) income of subsidiary
    
    
    (6,267
    )
    
    
    (475
    )
    
    
    1,884Net Income (Loss)
    
    $
    (1,962
    )
    
    $
    724
    
    
    $
    2,096
 34




---



##### 



Community Central Bank Corporation
Notes to Consolidated Financial Statements
 Parent-only Statement of Cash Flow
 Year Ended December 31,2008
    
    
    2007
    
    
    2006(In thousands)Operating ActivitiesNet income (loss)
    
    $
    (1,962
    )
    
    $
    724
    
    
    $
    2,096Adjustments to reconcile net income to
net cash flow from operating activitiesNet gain on instruments at fair value
    
    
    (7,710
    )
    
    
    (1,811
    )
    
    
    Undistributed income of subsidiary
    
    
    6,267
    
    
    
    475
    
    
    
    (1,884
    )Decrease (increase) in other assets
    
    
    (779
    )
    
    
    (456
    )
    
    
    (18
    )Increase (decrease) in other liabilities
    
    
    58
    
    
    
    125
    
    
    
    239Other operating adjustments
    
    
    2,926
    
    
    
    612
    
    
    
    Net Cash (Used in) Provided by Operating Activities
    
    
    (1,200
    )
    
    
    (331
    )
    
    
    433Investing ActivitiesCapital contribution to subsidiaries
    
    
    (3,750
    )
    
    
    (133
    )
    
    
    63Net Cash Provided by (Used in) Investing Activities
    
    
    (3,750
    )
    
    
    (133
    )
    
    
    63Financing ActivitiesStock options exercised/awards
    
    
    17
    
    
    
    341
    
    
    
    252Issuance of preferred shares
    
    
    3,050
    
    
    
    
    
    
    
    Issuance and redemption of subordinated debentures
    
    
    
    
    
    
    8,247
    
    
    
    Cash dividend paid
    
    
    (351
    )
    
    
    (932
    )
    
    
    (918
    )Repurchase of stock
    
    
    (7
    )
    
    
    (3,400
    )
    
    
    (351
    )Net Cash (Used in) Provided by Financing Activities
    
    
    2,709
    
    
    
    4,256
    
    
    
    (1,017
    )(Decrease) Increase in Cash
    
    
    (2,241
    )
    
    
    3,792
    
    
    
    (521
    )Cash at the Beginning of the Period
    
    
    5,764
    
    
    
    1,972
    
    
    
    2,493Cash at the End of the Period
    
    $
    3,523
    
    
    $
    5,764
    
    
    $
    1,972
 35




---



##### 



Community Central Bank Corporation
Notes to Consolidated Financial Statements
 (21) Fair Value Option for Financial Assets and Financial Liabilities
   Fair Value Hierarchy
  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
      37




---



##### 



Community Central Bank Corporation
Notes to Consolidated Financial Statements
   Changes in fair valuefor twelve monthsended December 31,2008 measured at fairvalue pursuant toFair Value Measurement at
    
    
    
    
    
    
    election of the fairDecember 31, 2008
    
    
    
    
    
    
    value optionsFair Value
    
    
    Significant Other
    
    
    Significant
    
    
    Other Gains or LossesMeasurements
    
    
    Observable
    
    
    Unobservable
    
    
    in noninterest incomeInputs
    
    
    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
  38




---



##### 



Community Central Bank Corporation
Notes to Consolidated Financial Statements
 Changes in level 3 recurring fair value measurements
  Fair value measurements using significant unobservable inputs(In thousands)Changes inunrealizedgains / (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
  Other Real Estate Owned
  39




---



##### 



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, 2008
    
    (Level 1)
    
    (Level 2)
    
    (Level 3)
    
    December 31, 2008(In thousands)Impaired loans accounted
for under FAS 114
    
    $
    17,936
    
    
    
    
    
    
    
    
    
    
    $
    17,936
    
    
    $
    4,509Other real estate owned
    
    
    2,913
    
    
    
    
    
    
    
    
    
    
    
    2,913
    
    
    
    1,075
 40




---



##### 



Community Central Bank Corporation
Managements Discussion and Analysis of Financial Condition and Results of Operations
 FORWARD LOOKING STATEMENTS
   41




---



##### 



Community Central Bank Corporation
Managements Discussion and Analysis of Financial Condition and Results of Operations
 EXECUTIVE SUMMARY
      42




---



##### 



Community Central Bank Corporation
Managements Discussion and Analysis of Financial Condition and Results of Operations
      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 31,2008
    
    2007
    
    2006
    
    2005
    
    2004(In thousands)Total assets
    
    $
    556,950
    
    
    $
    520,305
    
    
    $
    505,028
    
    
    $
    462,012
    
    
    $
    391,538Trading securities at fair value option
    
    
    17,463
    
    
    
    20,115
    
    
    
    
    
    
    
    
    
    
    
    Securities available for sale
    
    
    76,552
    
    
    
    66,809
    
    
    
    80,916
    
    
    
    84,177
    
    
    
    51,425Securities held to maturity
    
    
    1,515
    
    
    
    977
    
    
    
    1,017
    
    
    
    1,094
    
    
    
    1,161Gross loans
    
    
    407,117
    
    
    
    389,912
    
    
    
    367,282
    
    
    
    334,951
    
    
    
    305,439Allowance for credit losses
    
    
    7,315
    
    
    
    6,403
    
    
    
    3,815
    
    
    
    3,580
    
    
    
    3,377Total deposits
    
    
    357,376
    
    
    
    328,635
    
    
    
    355,856
    
    
    
    314,373
    
    
    
    278,856FHLB advances
    
    
    108,200
    
    
    
    104,495
    
    
    
    83,528
    
    
    
    86,545
    
    
    
    63,360Repurchase agreements
    
    
    39,394
    
    
    
    32,659
    
    
    
    15,688
    
    
    
    13,184
    
    
    
    11,492Subordinated debentures
    
    
    12,757
    
    
    
    17,597
    
    
    
    10,310
    
    
    
    10,310
    
    
    
    10,310Total stockholders equity
    
    
    34,394
    
    
    
    33,228
    
    
    
    36,665
    
    
    
    35,532
    
    
    
    25,591
  For the Year Ended December 31,2008
    
    
    2007
    
    
    2006
    
    
    2005
    
    
    2004(In thousands, except per share data)Interest income
    
    $
    30,422
    
    
    $
    32,925
    
    
    $
    31,475
    
    
    $
    24,230
    
    
    $
    19,725Interest expense
    
    
    19,047
    
    
    
    20,735
    
    
    
    18,892
    
    
    
    11,555
    
    
    
    7,936Net interest income
    
    
    11,375
    
    
    
    12,190
    
    
    
    12,583
    
    
    
    12,675
    
    
    
    11,789Provision for credit losses
    
    
    9,502
    
    
    
    3,600
    
    
    
    550
    
    
    
    100
    
    
    
    2,000Non-interest income
    
    
    11,451
    
    
    
    5,692
    
    
    
    4,935
    
    
    
    4,809
    
    
    
    6,546Non-interest expense
    
    
    16,718
    
    
    
    13,853
    
    
    
    14,509
    
    
    
    13,132
    
    
    
    13,346Income (loss) before taxes
    
    
    (3,394
    )
    
    
    429
    
    
    
    2,459
    
    
    
    4,252
    
    
    
    2,989Provision for income tax
(benefit) expense
    
    
    (1,432
    )
    
    
    (295
    )
    
    
    363
    
    
    
    1,179
    
    
    
    782Net income (loss)
    
    $
    (1,962
    )
    
    $
    724
    
    
    $
    2,096
    
    
    $
    3,073
    
    
    $
    2,207Per share data:*Basic earnings
    
    $
    (0.53
    )
    
    $
    0.19
    
    
    $
    0.52
    
    
    $
    0.80
    
    
    $
    0.68Diluted earnings
    
    $
    (0.53
    )
    
    $
    0.19
    
    
    $
    0.51
    
    
    $
    0.78
    
    
    $
    0.66Dividend declared
    
    $
    0.10
    
    
    $
    0.24
    
    
    $
    0.24
    
    
    $
    0.21
    
    
    $
    0.20
 
 *
    
    Per share data has been retroactively adjusted to reflect the issuance of stock
dividends. 44




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##### 



Community Central Bank Corporation
Managements Discussion and Analysis of Financial Condition and Results of Operations
  For the Year Ended December 31,2008
    
    2007
    
    2006
    
    2005
    
    2004Nonperforming assets as a
percentage of total assets
    
    
    5.33
    %
    
    
    3.61
    %
    
    
    0.96
    %
    
    
    0.74
    %
    
    
    0.37
    %Nonperforming loans as a
percentage of total loans
    
    
    6.33
    %
    
    
    4.60
    %
    
    
    1.29
    %
    
    
    0.99
    %
    
    
    0.25
    %Allowance for credit losses as a
percentage of total loans
    
    
    1.80
    %
    
    
    1.64
    %
    
    
    1.04
    %
    
    
    1.07
    %
    
    
    1.11
    %Allowance for credit losses as a
percentage of nonperforming loans
    
    
    28.36
    %
    
    
    35.70
    %
    
    
    80.66
    %
    
    
    108.09
    %
    
    
    435.74
    %Return on average assets
    
    
    (0.36
    %)
    
    
    0.14
    %
    
    
    0.42
    %
    
    
    0.72
    %
    
    
    0.57
    %Return on average equity
    
    
    (5.85
    %)
    
    
    2.06
    %
    
    
    5.82
    %
    
    
    9.43
    %
    
    
    8.98
    %Net interest margin
    
    
    2.30
    %
    
    
    2.68
    %
    
    
    2.83
    %
    
    
    3.23
    %
    
    
    3.31
    %Dividend payout ratio
    
    
    (17.89
    %)
    
    
    128.59
    %
    
    
    43.80
    %
    
    
    24.15
    %
    
    
    25.87
    %Average equity to average assets
    
    
    6.18
    %
    
    
    6.86
    %
    
    
    7.25
    %
    
    
    7.61
    %
    
    
    6.34
    %
 Application 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
      47




---



##### 



Community Central Bank Corporation
Managements 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
       49




---



##### 



Community Central Bank Corporation
Managements Discussion and Analysis of Financial Condition and Results of Operations
 Liabilities
   December 31, 2008
    
    
    December 31, 2007Balance
    
    
    Percentage
    
    
    Balance
    
    
    Percentage(Dollars in thousands)Noninterest bearing demand
    
    $
    34,169
    
    
    
    9.56
    %
    
    $
    31,647
    
    
    
    9.60
    %NOW accounts-interest bearing checking
    
    
    13,670
    
    
    
    3.83
    %
    
    
    14,907
    
    
    
    4.50
    %Money Market
    
    
    24,484
    
    
    
    6.85
    %
    
    
    38,560
    
    
    
    11.70
    %Savings
    
    
    8,585
    
    
    
    2.40
    %
    
    
    9,326
    
    
    
    2.80
    %Time deposits under $100,000
    
    
    43,685
    
    
    
    12.22
    %
    
    
    39,395
    
    
    
    12.00
    %Time deposits $100,000 and over
    
    
    232,783
    
    
    
    65.14
    %
    
    
    194,800
    
    
    
    59.40
    %Total deposits
    
    $
    357,376
    
    
    
    100.00
    %
    
    $
    328,635
    
    
    
    100.00
    %
  50




---



##### 



Community Central Bank Corporation
Managements Discussion and Analysis of Financial Condition and Results of Operations
  Stockholders Equity
  51




---



##### 



Community Central Bank Corporation
Managements Discussion and Analysis of Financial Condition and Results of Operations
 Net Interest Income
  Year Ended
    
    
    Year EndedDecember 31, 2008 vs. 2007
    
    
    December 31, 2007 vs. 2006Increase (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
    
    $
    (2,264
    )
    
    $
    1,486
    
    
    $
    (3,750
    )
    
    $
    1,172
    
    
    $
    731
    
    
    $
    441Securities
    
    
    (24
    )
    
    
    72
    
    
    
    (96
    )
    
    
    (24
    )
    
    
    (100
    )
    
    
    76Federal funds sold
    
    
    (215
    )
    
    
    93
    
    
    
    (308
    )
    
    
    302
    
    
    
    305
    
    
    
    (3
    )Total
    
    
    (2,503
    )
    
    
    1,651
    
    
    
    (4,154
    )
    
    
    1,450
    
    
    
    936
    
    
    
    514Deposits and Borrowed Funds  Interest ExpenseNOW and money market accounts
    
    
    (1,590
    )
    
    
    (249
    )
    
    
    (1,341
    )
    
    
    1,159
    
    
    
    791
    
    
    
    368Savings deposits
    
    
    (82
    )
    
    
    25
    
    
    
    (107
    )
    
    
    9
    
    
    
    (11
    )
    
    
    20Time deposits
    
    
    (354
    )
    
    
    1,009
    
    
    
    (1,363
    )
    
    
    (616
    )
    
    
    (1,671
    )
    
    
    1,055FHLB advances and repurchase
agreements
    
    
    1,057
    
    
    
    1,127
    
    
    
    (70
    )
    
    
    603
    
    
    
    667
    
    
    
    (64
    )Capitalized lease obligation
and ESOP loan
    
    
    (5
    )
    
    
    (3
    )
    
    
    (2
    )
    
    
    (4
    )
    
    
    (5
    )
    
    
    1Subordinated debentures
    
    
    (714
    )
    
    
    (113
    )
    
    
    (601
    )
    
    
    692
    
    
    
    820
    
    
    
    (128
    )Total
    
    
    (1,688
    )
    
    
    1,796
    
    
    
    (3,484
    )
    
    
    1,843
    
    
    
    591
    
    
    
    1,252Net Interest Income
    
    $
    (815
    )
    
    $
    (145
    )
    
    $
    (670
    )
    
    $
    (393
    )
    
    $
    345
    
    
    $
    (738
    )
   52




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##### 



Community Central Bank Corporation
Managements Discussion and Analysis of Financial Condition and Results of Operations
       53




---



##### 



54




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##### 



Community Central Bank Corporation
Managements Discussion and Analysis of Financial Condition and Results of Operations
  Year Ended December 31,2008
    
    
    2007
    
    
    2006Average
    
    
    
    
    
    
    
    
    
    
    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
    
    $
    397,600
    
    
    $
    25,640
    
    
    
    6.45
    %
    
    $
    374,502
    
    
    $
    27,904
    
    
    
    7.45
    %
    
    $
    364,593
    
    
    $
    26,732
    
    
    
    7.33
    %Securities
    
    
    96,226
    
    
    
    4,396
    
    
    
    4.57
    %
    
    
    94,669
    
    
    
    4,420
    
    
    
    4.67
    %
    
    
    96,720
    
    
    
    4,444
    
    
    
    4.59
    %Federal funds sold
    
    
    16,597
    
    
    
    386
    
    
    
    2.44
    %
    
    
    12,003
    
    
    
    601
    
    
    
    5.01
    %
    
    
    5,906
    
    
    
    299
    
    
    
    5.06
    %Total Earning Assets /Total Interest Income /Average Yield
    
    
    510,423
    
    
    
    30,422
    
    
    
    5.97
    %
    
    
    481,174
    
    
    
    32,925
    
    
    
    6.84
    %
    
    
    467,219
    
    
    
    31,475
    
    
    
    6.74
    %Cash and due from banks
    
    
    7,822
    
    
    
    
    
    
    
    
    
    
    
    7,173
    
    
    
    
    
    
    
    
    
    
    
    7,308All other assets
    
    
    24,986
    
    
    
    
    
    
    
    
    
    
    
    23,523
    
    
    
    
    
    
    
    
    
    
    
    22,661Total Assets
    
    $
    543,231
    
    
    
    
    
    
    
    
    
    
    $
    511,870
    
    
    
    
    
    
    
    
    
    
    $
    497,188Liabilities & Stockholders EquityNOW and money market accounts
    
    $
    47,852
    
    
    
    745
    
    
    
    1.56
    %
    
    $
    63,773
    
    
    
    2,335
    
    
    
    3.66
    %
    
    $
    42,210
    
    
    
    1,176
    
    
    
    2.79
    %Savings deposits
    
    
    13,804
    
    
    
    226
    
    
    
    1.64
    %
    
    
    12,321
    
    
    
    308
    
    
    
    2.50
    %
    
    
    12,761
    
    
    
    299
    
    
    
    2.34
    %Time deposits
    
    
    248,314
    
    
    
    11,141
    
    
    
    4.49
    %
    
    
    225,934
    
    
    
    11,495
    
    
    
    5.09
    %
    
    
    258,664
    
    
    
    12,111
    
    
    
    4.68
    %FHLB advances and repurchase
agreements
    
    
    142,512
    
    
    
    6,028
    
    
    
    4.23
    %
    
    
    115,962
    
    
    
    4,971
    
    
    
    4.29
    %
    
    
    100,494
    
    
    
    4,368
    
    
    
    4.35
    %ESOP Loan
    
    
    15
    
    
    
    1
    
    
    
    5.33
    %
    
    
    67
    
    
    
    6
    
    
    
    8.96
    %
    
    
    121
    
    
    
    10
    
    
    
    8.26
    %Subordinated debentures
    
    
    15,528
    
    
    
    906
    
    
    
    5.83
    %
    
    
    20,880
    
    
    
    1,620
    
    
    
    7.76
    %
    
    
    10,310
    
    
    
    928
    
    
    
    9.00
    %Total Interest Bearing Liabilities/Total Interest Expense / AverageInterest Rate Spread
    
    
    468,025
    
    
    
    19,047
    
    
    
    4.07
    %
    
    
    438,937
    
    
    
    20,735
    
    
    
    4.72
    %
    
    
    424,560
    
    
    
    18,892
    
    
    
    4.45
    %Noninterest bearing deposits
    
    
    37,470
    
    
    
    
    
    
    
    
    
    
    
    34,594
    
    
    
    
    
    
    
    
    
    
    
    34,064All other liabilities
    
    
    4,176
    
    
    
    
    
    
    
    
    
    
    
    3,234
    
    
    
    
    
    
    
    
    
    
    
    2,540Stockholders equity
    
    
    33,560
    
    
    
    
    
    
    
    
    
    
    
    35,105
    
    
    
    
    
    
    
    
    
    
    
    36,024Total Liabilities & Equity
    
    $
    543,231
    
    
    
    
    
    
    
    
    
    
    $
    511,870
    
    
    
    
    
    
    
    
    
    
    $
    497,188Net Interest Income
    
    
    
    
    
    $
    11,375
    
    
    
    
    
    
    
    
    
    
    $
    12,190
    
    
    
    
    
    
    
    
    
    
    $
    12,583Net Interest Rate Spread
    
    
    
    
    
    
    
    
    
    
    1.90
    %
    
    
    
    
    
    
    
    
    
    
    2.12
    %
    
    
    
    
    
    
    
    
    
    
    2.29
    %Net Interest Margin (Net Interest Income /Total Earning Assets)
    
    
    
    
    
    
    
    
    
    
    2.23
    %
    
    
    
    
    
    
    
    
    
    
    2.53
    %
    
    
    
    
    
    
    
    
    
    
    2.69
    %Taxable equivalent
    
    
    
    
    
    
    
    
    
    
    2.30
    %
    
    
    
    
    
    
    
    
    
    
    2.68
    %
    
    
    
    
    
    
    
    
    
    
    2.83
    %
 55




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##### 



Community Central Bank Corporation
Managements Discussion and Analysis of Financial Condition and Results of Operations
 Provision for Credit Losses
  Noninterest Income
    56




---



##### 



Community Central Bank Corporation
Managements Discussion and Analysis of Financial Condition and Results of Operations
  Noninterest Expense
   Income Taxes
  57




---



##### 



Community Central Bank Corporation
Managements Discussion and Analysis of Financial Condition and Results of Operations
  Liquidity and Capital Resources; Asset/Liability Management
   58




---



##### 



Community Central Bank Corporation
Managements Discussion and Analysis of Financial Condition and Results of Operations
 Off-Balance Sheet Arrangements and Contractual Obligations
 Off-Balance Sheet Arrangements:
 Contractual Obligations:
 Payments Due by PeriodLess than
    
    1-3
    
    3-5
    
    More thanTotal
    
    1 Year
    
    Years
    
    Years
    
    5 Years(In thousands)Long term debt
    
    
    (1
    )
    
    $
    18,557
    
    
    $
    
    
    
    $
    
    
    
    $
    
    
    
    $
    18,557Capital lease obligations
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Operating leases
    
    
    (2
    )
    
    
    1,333
    
    
    
    250
    
    
    
    383
    
    
    
    289
    
    
    
    411Other contractual obligations
    
    
    (3
    )
    
    
    2,640
    
    
    
    480
    
    
    
    960
    
    
    
    960
    
    
    
    240
 
 (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
     59




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##### 



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 assetsFederal funds sold
    
    $
    7,000
    
    
    $
    
    
    
    $
    
    
    
    $
    
    
    
    $
    7,000Securities, at amortized cost
    
    
    32,040
    
    
    
    12,474
    
    
    
    26,033
    
    
    
    25,384
    
    
    
    95,931FHLB stock
    
    
    
    
    
    
    5,877
    
    
    
    
    
    
    
    
    
    
    
    5,877Loans (including held for sale)
    
    
    133,477
    
    
    
    51,236
    
    
    
    176,920
    
    
    
    48,786
    
    
    
    410,419Total
    
    
    172,517
    
    
    
    69,587
    
    
    
    202,953
    
    
    
    74,170
    
    
    $
    519,227Interest bearing liabilitiesNOW and money market accounts
    
    
    20,407
    
    
    
    6,003
    
    
    
    10,520
    
    
    
    1,224
    
    
    
    38,154Savings deposits
    
    
    515
    
    
    
    2,232
    
    
    
    5,838
    
    
    
    
    
    
    
    8,585Jumbo time deposits
    
    
    41,378
    
    
    
    108,075
    
    
    
    83,330
    
    
    
    
    
    
    
    232,783Time deposits < $100,000
    
    
    8,564
    
    
    
    14,564
    
    
    
    20,557
    
    
    
    
    
    
    
    43,685Repurchase agreements
    
    
    20,394
    
    
    
    19,000
    
    
    
    
    
    
    
    
    
    
    
    39,394FHLB
    
    
    5,500
    
    
    
    20,000
    
    
    
    56,500
    
    
    
    26,200
    
    
    
    108,200Subordinated debentures
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    18,557
    
    
    
    18,557Total
    
    
    96,758
    
    
    
    169,874
    
    
    
    176,745
    
    
    
    45,981
    
    
    $
    489,358Rate sensitivity gap
    
    $
    75,759
    
    
    $
    (100,287
    )
    
    $
    26,208
    
    
    $
    28,189Cumulative rate sensitivity gap
    
    
    
    
    
    $
    (24,528
    )
    
    $
    1,680
    
    
    $
    29,869Rate sensitivity gap ratio
    
    
    1.78x
    
    
    
    0.41x
    
    
    
    1.15x
    
    
    
    1.61xCumulative rate sensitivity gap ratio
    
    
    
    
    
    
    0.91x
    
    
    
    1.00x
    
    
    
    1.06x
  60




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##### 



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
    
    
    (10.76
    %)Interest rates up 200 basis points
    
    
    (6.08
    %)Interest rates up 100 basis points
    
    
    (2.68
    %)Base Case
    
    Interest rates down 100 basis points
    
    
    4.47
    %Interest rates down 200 basis points
    
    
    7.08
    %Interest rates down 300 basis points
    
    
    (2.05
    %)
 61




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##### 



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
   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
 2007CashDividendsQuarter
    
    High
    
    
    Low
    
    
    DeclaredFourth
    
    $
    8.99
    
    
    $
    6.10
    
    
    $
    0.06Third
    
    
    9.57
    
    
    
    7.30
    
    
    
    0.06Second
    
    
    11.35
    
    
    
    9.00
    
    
    
    0.06First
    
    
    12.25
    
    
    
    10.25
    
    
    
    0.06
 Price information has been retroactively adjusted to reflect the issuance of stock dividends.
 62




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##### 



Community Central Bank Corporation
Stockholder Information
 Primary Market Makers
 Hill, Thompson, Magid & Co., Inc.
    
    Howe Barnes Hoefer and Arnett Investment, Inc.15 Exchange Place
    
    222 South Riverside Plaza, 7th FloorJersey City, NJ 07302-3912
    
    Chicago, IL 60606Knight Securities, L.P.
    
    UBS Capital Markets, L.P.545 Washington Blvd.
    
    677 Washington Blvd.Jersey City, NJ 07310
    
    Stamford, CT 06902RBC Capital Markets, L.P.655 Metro Place SouthMetro Center V  Suite 580Dublin, OH 43017Stock Registrar and Transfer AgentComputershare Trust Company, N.A.PO Box 43010Providence, RI 02940-3010Shareholder Inquiries 1-800-426-5523www.computershare.comIndependent AuditorPlante & Moran, PLLC2601 Cambridge Ct., Suite 500Auburn Hills, MI 48326Legal CounselSilver, Freedman & Taff, LLP3299 K Street, NW, Suite 100Washington D.C. 20007
 Information
  Annual Meeting
  63