##### Table of Contents



UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
 Washington, DC 20549
 FORM 10-Q
 þ
    
    QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
 For the quarterly period ended March 31, 2009
 Commission File No. 000-33373
 COMMUNITY CENTRAL BANK CORPORATION
  Michigan
    
    38-3291744(State or other jurisdiction of incorporation 
or organization)
    
    (IRS Employer Identification No.)
 100 North Main Street, PO Box 7, Mount Clemens, MI 48046-0007
 (586) 783-4500
  þ o
 o o
  Large accelerated filer o
Accelerated filer o
Non-accelerated filer o(Do not check if a smaller reporting company)
Smaller reporting company þ o þ
  Class
    

Outstanding at May 14, 2009Common Stock
    
    3,734,781 Shares




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TABLE OF CONTENTS  PART IItem 1. Financial StatementsItem 2. Managements Discussion and Analysis or Plan of OperationItem 3. Quantitative and Qualitative Disclosures About Market RiskItem 4T. Controls and ProceduresPART IIItem 1. Legal ProceedingsItem 1A. Risk FactorsItem 2. Unregistered Sales of Equity Securities and Use of Proceeds.Item 3. Defaults upon Senior Securities.Item 4. Submission of Matters to a Vote of Security Holders.Item 5. Other Information.Item 6. Exhibits.SIGNATURESEXHIBIT INDEXEX-11EX-31.1EX-31.2EX-32    Table of Contents  
 
 PART I
 
 Item 1. Financial Statements
 Consolidated Balance Sheet
 March 31,
    
    
    December 31,2009
    
    
    2008(Unaudited)(In thousands)AssetsCash and due from banks
    
    $
    17,581
    
    
    $
    9,162Federal funds sold
    
    
    2,145
    
    
    
    7,000Cash and Cash Equivalents
    
    
    19,726
    
    
    
    16,162Trading securities at fair value option
    
    
    1,737
    
    
    
    17,463Securities available for sale, at fair value
    
    
    69,184
    
    
    
    76,552Securities held to maturity, at amortized cost
    
    
    1,851
    
    
    
    1,515FHLB stock
    
    
    5,877
    
    
    
    5,877Residential mortgage loans held for sale
    
    
    10,873
    
    
    
    3,302LoansCommercial real estate
    
    
    291,284
    
    
    
    284,811Commercial and industrial
    
    
    46,818
    
    
    
    38,714Residential real estate
    
    
    54,016
    
    
    
    54,409Home equity lines of credit
    
    
    22,262
    
    
    
    21,230Consumer loans
    
    
    6,537
    
    
    
    7,107Credit card loans
    
    
    666
    
    
    
    846Total Loans
    
    
    421,583
    
    
    
    407,117Allowance for credit losses
    
    
    (8,322
    )
    
    
    (7,315
    )Net Loans
    
    
    413,261
    
    
    
    399,802Net property and equipment
    
    
    9,248
    
    
    
    9,361Accrued interest receivable
    
    
    2,289
    
    
    
    2,479Other real estate
    
    
    3,379
    
    
    
    2,913Goodwill
    
    
    638
    
    
    
    638Intangible assets, net of amortization
    
    
    74
    
    
    
    80Cash surrender value of Bank Owned Life Insurance
    
    
    11,047
    
    
    
    10,975Other assets
    
    
    7,416
    
    
    
    9,831Total Assets
    
    $
    556,600
    
    
    $
    556,950
 (continued)
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##### Table of Contents



Consolidated Balance Sheet
 March 31,
    
    
    December 31,2009
    
    
    2008(Unaudited)(In thousands)LiabilitiesDepositsNoninterest bearing demand deposits
    
    $
    47,837
    
    
    $
    34,169NOW and money market accounts
    
    
    36,021
    
    
    
    38,154Savings deposits
    
    
    8,499
    
    
    
    8,585Time deposits
    
    
    275,343
    
    
    
    276,468Total Deposits
    
    
    367,700
    
    
    
    357,376Repurchase agreements
    
    
    37,300
    
    
    
    39,394Federal Home Loan Bank advances ($5.0 million at
fair value option at 12-31-2008)
    
    
    102,700
    
    
    
    108,200Accrued interest payable
    
    
    627
    
    
    
    1,050Other liabilities
    
    
    2,739
    
    
    
    3,779Subordinated debentures at fair value option
    
    
    12,022
    
    
    
    12,757Total Liabilities
    
    
    523,088
    
    
    
    522,556Stockholders EquityPreferred stock (7,000 shares authorized and 3,550 and 3,050
issued and outstanding at March 31, 2009 and December 31, 2008
respectively)
    
    
    3,550
    
    
    
    3,050Common stock (No par value; 9,000,000 shares,
authorized, and 3,734,781 and 3,734,781 issued and
outstanding at March 31, 2009 and December 31, 2008,
respectively)
    
    
    32,145
    
    
    
    32,125Retained earnings
    
    
    (2,109
    )
    
    
    (516
    )Accumulated other comprehensive (loss) income
    
    
    (74
    )
    
    
    (265
    )Total Stockholders Equity
    
    
    33,512
    
    
    
    34,394Total Liabilities and Stockholders Equity
    
    $
    556,600
    
    
    $
    556,950
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##### Table of Contents



Consolidated Statements of Income
 Three Months EndedMarch 31,2009
    
    
    2008(In thousands, except per share data)Interest IncomeLoans (including fees)
    
    $
    6,260
    
    
    $
    6,491Taxable securities
    
    
    938
    
    
    
    826Tax exempt securities
    
    
    114
    
    
    
    229Federal funds sold
    
    
    6
    
    
    
    255Total Interest Income
    
    
    7,318
    
    
    
    7,801Interest ExpenseNOW and money market accounts
    
    
    84
    
    
    
    294Savings deposits
    
    
    17
    
    
    
    50Time deposits
    
    
    2,652
    
    
    
    3,037Repurchase agreements and fed funds purchased
    
    
    317
    
    
    
    230Federal Home Loan Bank advances
    
    
    1,138
    
    
    
    1,226Subordinated debentures
    
    
    302
    
    
    
    291Total interest expense
    
    
    4,510
    
    
    
    5,128Net Interest Income
    
    
    2,808
    
    
    
    2,673Provision for Credit Losses
    
    
    2,550
    
    
    
    2,100Net Interest Income after Provision for Credit Losses
    
    
    258
    
    
    
    573Noninterest IncomeFiduciary income
    
    
    83
    
    
    
    108Deposit service charges
    
    
    95
    
    
    
    132Net realized security (loss) gain
    
    
    128
    
    
    
    61Change in fair value of assets/liabilities carried at
fair value under SFAS 159
    
    
    232
    
    
    
    2,139Mortgage banking income
    
    
    471
    
    
    
    450Other income
    
    
    205
    
    
    
    310Total noninterest income
    
    
    1,214
    
    
    
    3,200Noninterest ExpenseSalaries, benefits and payroll taxes
    
    
    1,932
    
    
    
    1,832Net occupancy expense
    
    
    463
    
    
    
    461Other operating expense
    
    
    1,479
    
    
    
    1,264Total noninterest expense
    
    
    3,874
    
    
    
    3,557Income (loss) Before Taxes
    
    
    (2,402
    )
    
    
    216Provision for Income Tax (Benefit) Expense
    
    
    (858
    )
    
    
    (24
    )Net income (loss)
    
    $
    (1,544
    )
    
    $
    240Dividends declared on preferred shares
    
    
    50
    
    
    
    Net income (loss) available on common shares
    
    $
    (1,594
    )
    
    $
    240Per share data:Basic earnings (loss)
    
    $
    (0.43
    )
    
    $
    0.06Diluted earnings (loss)
    
    $
    (0.43
    )
    
    $
    0.06Cash dividends
    
    $
    
    
    
    $
    0.24
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Consolidated Statements of Comprehensive Income
 Three Months EndedMarch 31,2009
    
    
    2008(In thousands)Net Income (loss) as Reported
    
    
    ($1,544
    )
    
    $
    240Other Comprehensive Income, Net of Tax
Change in unrealized net gain on securities
available for sale
    
    
    191
    
    
    
    548Comprehensive Income (loss)
    
    
    ($1,353
    )
    
    $
    788
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Consolidated Statements of Cash Flow
 Three Months Ended March 31,2009
    
    
    2008(In thousands)Operating ActivitiesNet income (loss)
    
    
    ($1,544
    )
    
    $
    240Adjustments to reconcile net income to net cash flow from operating activities:Net amortization of security premium
    
    
    33
    
    
    
    24Net gain on available for sale securities
    
    
    (128
    )
    
    
    (61
    )Net gain on instruments at fair value
    
    
    (232
    )
    
    
    (2,139
    )Provision for credit losses
    
    
    2,550
    
    
    
    2,100Depreciation expense
    
    
    163
    
    
    
    174Deferred income tax benefit
    
    
    (769
    )
    
    
    (32
    )ESOP compensation expense
    
    
    
    
    
    
    13SFAS 123R option expense
    
    
    20
    
    
    
    14Decrease (increase) in accrued interest receivable
    
    
    190
    
    
    
    (63
    )(Increase) decrease in other assets
    
    
    3,454
    
    
    
    (322
    )(Decrease) increase in accrued interest payable
    
    
    (423
    )
    
    
    279Increase (decrease) in other liabilities
    
    
    (1,040
    )
    
    
    550Loans originated held for sale
    
    
    
    
    
    
    (Increase) decrease in loans sold held for sale
    
    
    (7,571
    )
    
    
    964Increase in other real estate
    
    
    (606
    )
    
    
    (1,524
    )Net Cash (Used in) Provided By Operating Activities
    
    
    (5,903
    )
    
    
    217Investing ActivitiesSales, maturities, calls and prepayments of securities available for sale
    
    
    30,931
    
    
    
    33,869Purchases of securities available for sale
    
    
    (23,397
    )
    
    
    (42,163
    )Maturities, calls, sales and prepayments of trading securities
    
    
    17,463
    
    
    
    2,455Transfer and purchase of trading securities
    
    
    (1,737
    )
    
    
    Maturities, calls, and prepayments of held to maturity securities
    
    
    27
    
    
    
    5Purchases of held to maturity securities
    
    
    (336
    )
    
    
    (1,115
    )Increase in loans
    
    
    (16,615
    )
    
    
    (3,022
    )Purchases of property and equipment
    
    
    (50
    )
    
    
    (592
    )Proceeds from sale of property and equipment
    
    
    
    
    
    
    Net Cash Used in Investing Activities
    
    
    6,286
    
    
    
    (10,563
    )Financing ActivitiesNet (decrease) increase in demand and savings deposits
    
    
    11,449
    
    
    
    5,085Net (decrease) increase in time deposits
    
    
    (1,125
    )
    
    
    14,106Net (decrease) increase in short term borrowings
    
    
    (2,094
    )
    
    
    (2,753
    )FHLB advances
    
    
    
    
    
    
    10,000FHLB advance repayments
    
    
    (5,500
    )
    
    
    Payment of ESOP debt
    
    
    
    
    
    
    (13
    )Stock options exercised
    
    
    
    
    
    
    Preferred Stock Issuance
    
    
    500
    
    
    
    Preferred Stock dividend paid
    
    
    (49
    )
    
    
    Cash dividends paid
    
    
    
    
    
    
    (225
    )Repurchase of stock
    
    
    
    
    
    
    (7
    )Net Cash Provided by Financing Activities
    
    
    3,181
    
    
    
    26,193Increase (decrease) in Cash and Cash Equivalents
    
    
    3,564
    
    
    
    15,847Cash and Cash Equivalents at the Beginning of the Period
    
    
    16,162
    
    
    
    9,183Cash and Cash Equivalents at the End of the Period
    
    $
    19,726
    
    
    $
    25,030Supplemental Disclosure of Cash Flow InformationInterest paid
    
    $
    4,933
    
    
    $
    4,849Federal Taxes Paid
    
    
    
    
    
    
    Loans transferred to other real estate owned
    
    $
    606
    
    
    $
    1,890
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Community Central Bank Corporation
 Notes to Consolidated Financial Statements
(unaudited)
 1.
    
    The financial statements of Community Central Bank Corporation (the Corporation) include
the consolidation of its wholly-owned subsidiaries: Community Central Bank (the Bank) and
Community Central Mortgage Company, LLC (the Mortgage Company).The Corporations Consolidated Balance Sheets are presented as of March 31, 2009 and December
31, 2008, and Consolidated Statements of Income and Comprehensive Income for the three month
periods ended March 31, 2009 and 2008, and Consolidated Statements of Cash Flow for the three
months ended March 31, 2009 and 2008. These unaudited financial statements are for interim
periods and do not include all disclosures normally provided with annual financial statements.
The interim statements should be read in conjunction with the financial statements and
footnotes contained in the Corporations Annual Report on Form 10-K for the fiscal year ended
December 31, 2008.In the opinion of management, the interim statements referred to above contain all adjustments
(consisting of normal, recurring items) necessary for a fair presentation of the financial
statements. The results of operations for interim periods are not necessarily indicative of
the results to be expected for the full year.2.
    
    The accounting and reporting policies of the Corporation conform to accounting principles
generally accepted in the United States of America and general practices within the banking
industry. The following describes the critical accounting policies employed in the
preparation of financial statements.Allowance for Loan Losses: The allowance for loan losses is maintained at a level considered
by management to be adequate to absorb losses inherent in existing loans and loan commitments.
The adequacy of the allowance is based on evaluations that take into consideration such factors
as prior loss experience, changes in the nature and volume of the portfolio, overall portfolio
quality, loan concentrations, specific impaired or problem loans and commitments, current
economic conditions that may affect the borrowers ability to pay and other subjective factors.
The determination of the allowance is also based on regulatory guidance. This guidance
includes, but is not limited to, generally accepted accounting principles and guidance issued
from other regulatory bodies, such as the joint policy statement issued by the Federal
Financial Institutions Examination Council.3.
    
    On February 13, 2007, Community Central Bank Corporation issued $18.0 million aggregate
liquidation amount of cumulative trust preferred securities through Community Central Capital
Trust II, a statutory trust formed by the Corporation for the purpose of issuing the
securities (the Trust II Securities). The Trust II securities bear a fixed distribution
rate of 6.71% per annum through March 6, 2017, and thereafter will bear a floating
distribution rate equal to 90-day LIBOR plus 1.65%. The Trust II Securities are redeemable at
the Corporations option, in whole or in part, at par beginning March 6, 2017, and if not
sooner redeemed mature on March 6, 2037. The Trust II Securities were sold in a private
transaction exempt from registration under the Securities Act of 1933, as amended.4.
    
    In December 2004, the Financial Accounting Standards Board (FASB) issued Statement No. 123R
Share-Based Payment (SFAS 123R), a revision to Statement No. 123, Accounting for
Stock-Based Compensation. This standard requires the Corporation to measure the cost of
employee services received in exchange for equity awards, including stock options, based on
the grant date fair calculated value of the awards. The Corporation adopted the provisions of
SFAS 123R as of January 1, 2006. The standard provides for a modified prospective
application. Under this method, the Corporation began recognizing compensation cost for
equity based compensation for all new or modified grants after the date of adoption. In
addition, the Corporation is recognizing the unvested portion of the grant date fair value of
awards issued prior to adoption based on the fair value previously calculated for disclosure
purposes. Prior periods have not been restated.
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Three Months EndedMarch 31,2009
    
    2008(In thousands)Stock-based employee compensation expense,
net of related tax effects, included in reported net income
    
    $
    20
    
    
    $
    14
 5.
    
    In February 2007, the Financial Accounting Standards Board issued Statement of Financial
Accounting Standards No. 159 The Fair Value Option for Financial Assets and Financial
Liabilities (SFAS 159). The statement permitted an entity to immediately elect the fair
value option for existing eligible items. While not required to adopt the new standard until
2008, the Corporation elected to adopt it in the first quarter of 2007. The Corporation was
also required to simultaneously adopt all the requirements under SFAS 157, Fair Value
Measurements. As a result of the Corporations adoptions, certain financial instruments were
valued at fair value using the fair value option.The Corporation utilizes fair value measurements to record fair value adjustments to certain
assets and liabilities and to determine fair value disclosures. Additionally, from time to
time, the Corporation may be required to record at fair value other assets on a nonrecurring
basis, such as loans held for sale, loans held for investment and certain other assets. These
nonrecurring fair value adjustments typically involve application of lower of cost or market
accounting or write-downs of individual assets.
 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.
  8




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Changes in fair value forthree months ended March31, 2009 measured at fairFair Value Measurement at
    
    
    value pursuant to electionMarch 31, 2009
    
    
    of the fair value optionsSignificant Other
    
    
    Significant
    
    
    Other GainsFair Value
    
    
    Observable
    
    
    Unobservable
    
    
    or Losses inMeasurements
    
    
    Inputs
    
    
    Inputs
    
    
    noninterest incomeDescription
    
    3/31/2009
    
    
    (Level 2)
    
    
    (Level 3)
    
    
    pretax income(In thousands)Securities available for sale
    
    $
    69,184
    
    
    $
    69,184
    
    
    $
    
    
    
    $
    Trading Securities (a)
    
    
    1,737
    
    
    
    1,737
    
    
    
    
    
    
    
    (103
    )Interest rate swap hedging securities (a)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (75
    )Subordinated Debentures
    
    
    12,022
    
    
    
    
    
    
    
    12,022
    
    
    
    735Interest rate swap hedging subordinated (b)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (325
    )debentures
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    $
    232
 
 (a)
    
    In the first quarter of 2009, the Corporation elected to sell substantially all of
the investment securities recorded under SFAS 159 and to unwind the interest rate swap
position with the counterparty.(b)
    
    In the first quarter of 2009, the Corporation elected to unwind the interest rate swap position
with the counterparty.  10




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Changes in level 3 recurring fair value measurements
  Changes inunrealized gainsand (losses) relatedTotal realized /
    
    Purchases
    
    Transfers
    
    
    
    
    
    to financialFor the quarter ended
    
    Fair Value
    
    unrealized
    
    issuances
    
    in and / or
    
    Fair Value
    
    instruments held atMarch 31, 2009
    
    January 1, 2009
    
    gains / losses
    
    settlements, net
    
    out of Level 3
    
    March 31, 2009
    
    March 31, 2009(In thousands)Subordinated
Debentures
    
    $
    12,757
    
    
    $
    735
    
    
    $
    
    
    
    $
    
    
    
    $
    12,022
    
    
    $
    735
 11




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Assets Measured at Fair Value on a Nonrecurring Basis
 Impaired Loans
  Other Real Estate Owned
   Quoted Prices inActive Markets for
    
    Significant Other
    
    Significant
    
    Total Losses for theBalance at
    
    Identical Assets
    
    Observable Inputs
    
    Unobservable Inputs
    
    three months endedAssets
    
    March 31, 2009
    
    (Level 1)
    
    (Level 2)
    
    (Level 3)
    
    March 31, 2009(In thousands)Impaired loans accounted
for under FAS 114
    
    $
    24,266
    
    
    $
    
    
    
    $
    
    
    
    $
    24,266
    
    
    $
    1,756Other real estate owned
    
    $
    3,379
    
    
    $
    
    
    
    $
    
    
    
    $
    3,379
    
    
    $
    253
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Item 2. Managements Discussion and Analysis or Plan of Operation
  SAFE HARBOR REGARDING FORWARD-LOOKING STATEMENTS
   EXECUTIVE SUMMARY
   13




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Assets
     March 31,
    
    
    Percentage
    
    
    December 31,
    
    
    Percentage
    
    
    Net
    
    
    Net2009
    
    
    of total loans
    
    
    2008
    
    
    of total loans
    
    
    Change
    
    
    Change %(In thousands, except percentages)Loans held for sale:Residential real estate
    
    $
    10,873
    
    
    
    
    
    
    $
    3,302
    
    
    
    
    
    
    $
    7,571
    
    
    
    229.29
    %Loans held in the portfolio:Commercial real estate
    
    $
    291,284
    
    
    
    69.1
    %
    
    $
    284,811
    
    
    
    70.0
    %
    
    $
    6,473
    
    
    
    2.27
    %Commercial and industrial
    
    
    46,818
    
    
    
    11.1
    %
    
    
    38,714
    
    
    
    9.5
    %
    
    $
    8,104
    
    
    
    20.93
    %Residential real estate
    
    
    54,016
    
    
    
    12.8
    %
    
    
    54,409
    
    
    
    13.4
    %
    
    $
    (393
    )
    
    
    (0.72
    %)Home equity lines
    
    
    22,262
    
    
    
    5.3
    %
    
    
    21,230
    
    
    
    5.2
    %
    
    $
    1,032
    
    
    
    4.86
    %Consumer loans
    
    
    6,537
    
    
    
    1.6
    %
    
    
    7,107
    
    
    
    1.7
    %
    
    $
    (570
    )
    
    
    (8.02
    %)Credit cards
    
    
    666
    
    
    
    0.1
    %
    
    
    846
    
    
    
    0.2
    %
    
    $
    (180
    )
    
    
    (21.28
    %)Total loans
    
    $
    421,583
    
    
    
    100.0
    %
    
    $
    407,117
    
    
    
    100.0
    %
    
    $
    14,466
    
    
    
    3.6
    %
  15




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March 31,
    
    
    December 31,2009
    
    
    2008(In thousands)Nonaccrual loans:Commercial real estate
    
    $
    24,388
    
    
    $
    12,579Commercial and industrial
    
    
    91
    
    
    
    96Residential real estate
    
    
    4,661
    
    
    
    3,578Home equity lines
    
    
    757
    
    
    
    760Consumer loans
    
    
    469
    
    
    
    571Credit cards
    
    
    
    
    
    
    Total
    
    
    30,366
    
    
    
    17,584Accruing loans delinquent more than 90 days:Commercial real estate
    
    $
    
    
    
    $
    Commercial and industrial
    
    
    
    
    
    
    Residential real estate
    
    
    
    
    
    
    Home equity lines
    
    
    
    
    
    
    Consumer loans
    
    
    
    
    
    
    Credit cards
    
    
    35
    
    
    
    44Total
    
    
    35
    
    
    
    44Total nonperforming loans
    
    $
    30,401
    
    
    $
    17,628Troubled debt restructured loans:Commercial real estate
    
    $
    14,447
    
    
    $
    6,078Commercial and industrial
    
    
    667
    
    
    
    1,589Residential reat estate
    
    
    329
    
    
    
    495Total
    
    
    15,443
    
    
    
    8,162Other real estate owned:Commercial real estate
    
    
    2,920
    
    
    
    2,493Residential real estate
    
    
    391
    
    
    
    420Total
    
    
    3,311
    
    
    
    2,913Other repossessed boats
    
    
    1,136
    
    
    
    976Total nonperforming loans to total loans
    
    
    7.21
    %
    
    
    4.33
    %Allowance for loan losses to nonperforming loans
    
    
    27.37
    %
    
    
    41.00
    %
  17




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##### Table of Contents



Three Months Ended
    
    
    Year EndedMarch 31,
    
    
    December 31,2009
    
    
    2008(In thousands)Balance at beginning of the period
    
    $
    7,315
    
    
    $
    6,403Charge-offs:Commercial real estate
    
    
    993
    
    
    
    6,895Commercial and industrial
    
    
    481
    
    
    
    270Residential real estate
    
    
    26
    
    
    
    426Home equity lines
    
    
    
    
    
    
    577Consumer loans
    
    
    68
    
    
    
    669Credit cards
    
    
    11
    
    
    
    33Total charge-offs
    
    
    1,579
    
    
    
    8,870Recoveries:Commercial real estate
    
    
    17
    
    
    
    52Commercial and industrial
    
    
    3
    
    
    
    218Residential real estate
    
    
    
    
    
    
    Home equity lines
    
    
    
    
    
    
    1Consumer loans
    
    
    16
    
    
    
    7Credit cards
    
    
    
    
    
    
    2Total recoveries
    
    
    36
    
    
    
    280Net charge-offs (recoveries)
    
    
    1,543
    
    
    
    8,590Provision charged to earnings
    
    
    2,550
    
    
    
    9,502Balance at the end of the period
    
    $
    8,322
    
    
    $
    7,315As a percentage of total portfolio loans
    
    
    1.97
    %
    
    
    1.80
    %Ratio of net charge-offs during the
period to average loans during
the period
    
    
    1.50
    %
    
    
    2.17
    %
  18




---



##### Table of Contents



Liabilities
   Percentage
    
    
    
    
    
    
    PercentageMarch 31,
    
    
    of total
    
    
    December 31,
    
    
    of total
    
    
    Net
    
    
    Net2009
    
    
    deposits
    
    
    2008
    
    
    deposits
    
    
    Change
    
    
    Change %(In thousands, except percentages)Noninterest bearing demand
    
    $
    47,837
    
    
    
    13.0
    %
    
    $
    34,169
    
    
    
    9.6
    %
    
    $
    13,668
    
    
    
    40.00
    %NOW accounts
    
    
    11,979
    
    
    
    3.3
    %
    
    
    13,670
    
    
    
    3.8
    %
    
    
    (1,691
    )
    
    
    (12.37
    %)Money market accounts
    
    
    24,042
    
    
    
    6.5
    %
    
    
    24,484
    
    
    
    6.9
    %
    
    
    (442
    )
    
    
    (1.81
    %)Savings deposits
    
    
    8,499
    
    
    
    2.3
    %
    
    
    8,585
    
    
    
    2.4
    %
    
    
    (86
    )
    
    
    (1.00
    %)Time deposits under $100,000
    
    
    48,077
    
    
    
    13.1
    %
    
    
    43,685
    
    
    
    12.2
    %
    
    
    4,392
    
    
    
    10.05
    %Time deposits $100,000 and over
    
    
    227,266
    
    
    
    61.8
    %
    
    
    232,783
    
    
    
    65.1
    %
    
    
    (5,517
    )
    
    
    (2.37
    %)Total deposits
    
    $
    367,700
    
    
    
    100.0
    %
    
    $
    357,376
    
    
    
    100.0
    %
    
    $
    10,324
    
    
    
    2.9
    %
 19




---



##### Table of Contents



March 31,
    
    December 31,2009
    
    2008(Dollars in thousands)Amount outstanding at end of periodShort-term repurchase agreements
    
    $
    18,300
    
    
    $
    20,394Short-term FHLB advances
    
    $
    37,000
    
    
    $
    25,500Weighted average interest rate on ending balanceShort-term Repurchase agreements
    
    
    1.76
    %
    
    
    1.62
    %Short-term FHLB advances
    
    
    3.89
    %
    
    
    3.50
    %Maximum amount outstanding at any month end
during the yearShort-term Repurchase agreements
    
    $
    18,300
    
    
    $
    20,394Short-term FHLB advances
    
    $
    37,000
    
    
    $
    25,500Average amount outstanding during the yearShort-term Repurchase agreements
    
    $
    18,589
    
    
    $
    13,589Short-term FHLB advances
    
    $
    31,250
    
    
    $
    17,484Weighted average interest rateShort-term Repurchase agreements
    
    
    1.73
    %
    
    
    1.97
    %Short-term FHLB advances
    
    
    3.89
    %
    
    
    4.05
    %
    Fair Value
    
    
    Average rateat end of period
    
    
    at end of period(In thousands, except percentages)Short-term FHLB advances
    
    $
    37,000
    
    
    
    3.89
    %Long-term FHLB advances
    
    $
    65,700
    
    
    
    4.70
    %$
    102,700
    
    
    
    4.41
    %
 20




---



##### Table of Contents



Liquidity and Capital Resources
   March 31,
    
    December 31,
    
    Minimum Ratio
    
    Ratio2009
    
    2008
    
    for Capital
    
    to beCapital
    
    Ratio
    
    Capital
    
    Ratio
    
    Adequacy Purposes
    
    Well Capitalized(In thousands, except percentages)Tier I capital to risk-weighted assetsConsolidated
    
    $
    43,616
    
    
    
    10.20
    %
    
    $
    45,054
    
    
    
    10.41
    %
    
    
    4
    %
    
    NABank only
    
    
    42,088
    
    
    
    9.82
    %
    
    
    39,928
    
    
    
    9.28
    %
    
    
    4
    %
    
    
    6
    %Total capital to risk-weighted assetsConsolidated
    
    $
    56,095
    
    
    
    13.11
    %
    
    $
    57,199
    
    
    
    13.22
    %
    
    
    8
    %
    
    NABank only
    
    
    47,484
    
    
    
    11.07
    %
    
    
    45,338
    
    
    
    10.54
    %
    
    
    8
    %
    
    
    10
    %Tier I capital to average assetsConsolidated
    
    $
    43,616
    
    
    
    7.79
    %
    
    $
    45,054
    
    
    
    8.21
    %
    
    
    4
    %
    
    NABank only
    
    
    42,088
    
    
    
    7.55
    %
    
    
    39,928
    
    
    
    7.30
    %
    
    
    4
    %
    
    
    5
    %
  21




---



##### Table of Contents



AccumulatedOtherPreferred
    
    
    Common
    
    
    Retained
    
    
    Comprehensive
    
    
    TotalStock
    
    
    Stock
    
    
    Earnings
    
    
    Income/(Loss)
    
    
    EquityBeginning balance, January 1, 2009
    
    $
    3,050
    
    
    $
    32,125
    
    
    $
    (516
    )
    
    $
    (265
    )
    
    $
    34,394Issuance of preferred stock
    
    
    500
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    500Cash dividend on preferrred shares
    
    
    
    
    
    
    
    
    
    
    (49
    )
    
    
    
    
    
    
    (49
    )SFAS 123R expensing of options
    
    
    
    
    
    
    20
    
    
    
    
    
    
    
    
    
    
    
    20Net income (loss)
    
    
    
    
    
    
    
    
    
    
    (1,544
    )
    
    
    
    
    
    
    (1,544
    )Change in unrealized gain/loss
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    191
    
    
    
    191Ending balance, March 31, 2009
    
    $
    3,550
    
    
    $
    32,145
    
    
    $
    (2,109
    )
    
    $
    (74
    )
    
    $
    33,512
   Net Interest Income
  22




---



##### Table of Contents



Three Months EndedMarch 31, 2009 vs. 2008Increase (Decrease)Due to Changes InVolumeTotal
    
    
    and Both
    
    
    Rate(In thousands)Earning Assets  Interest Income:Loans
    
    $
    (231
    )
    
    $
    376
    
    
    $
    (607
    )Securities, including trading
    
    
    (3
    )
    
    
    43
    
    
    
    (46
    )Federal funds sold
    
    
    (249
    )
    
    
    (24
    )
    
    
    (225
    )Total
    
    
    (483
    )
    
    
    395
    
    
    
    (878
    )Deposits and Borrowed Funds  Interest Expense:NOW and money market accounts
    
    
    (210
    )
    
    
    (39
    )
    
    
    (171
    )Savings deposits
    
    
    (33
    )
    
    
    (3
    )
    
    
    (30
    )Time deposits
    
    
    (385
    )
    
    
    179
    
    
    
    (564
    )FHLB advances and repurchase agreements
    
    
    (1
    )
    
    
    49
    
    
    
    (50
    )Subordinated debentures
    
    
    11
    
    
    
    4
    
    
    
    7Total
    
    
    (618
    )
    
    
    190
    
    
    
    (808
    )Net Interest Income
    
    $
    135
    
    
    $
    205
    
    
    $
    (70
    )
   23




---



##### Table of Contents



Average Balance Sheet
  Three Months Ended March 31,2009
    
    
    2008Average
    
    
    
    
    
    
    
    
    
    
    AverageInterest
    
    
    Rate
    
    
    
    
    
    
    Interest
    
    
    RateAverage
    
    
    Income/
    
    
    Earned/
    
    
    Average
    
    
    Income/
    
    
    Earned/Balance
    
    
    Expense
    
    
    Paid
    
    
    Balance
    
    
    Expense
    
    
    Paid(In thousands)AssetsLoans
    
    $
    422,274
    
    
    
    6,260
    
    
    
    6.01
    %
    
    $
    391,978
    
    
    $
    6,491
    
    
    
    6.64
    %Securities
    
    
    93,430
    
    
    
    1,052
    
    
    
    4.50
    %
    
    
    89,516
    
    
    
    1,055
    
    
    
    4.71
    %Federal funds sold
    
    
    7,023
    
    
    
    6
    
    
    
    0.35
    %
    
    
    31,862
    
    
    
    255
    
    
    
    3.21
    %Total Earning Assets /
Total Interest Income /
Average Yield
    
    
    522,727
    
    
    
    7,318
    
    
    
    5.67
    %
    
    
    513,356
    
    
    
    7,801
    
    
    
    6.09
    %Cash and due from banks
    
    
    11,845
    
    
    
    
    
    
    
    
    
    
    
    8,338All other assets
    
    
    25,803
    
    
    
    
    
    
    
    
    
    
    
    23,908Total Assets
    
    $
    560,375
    
    
    
    
    
    
    
    
    
    
    $
    545,602Liabilities & Stockholders Equity
NOW and money market accounts
    
    $
    37,977
    
    
    
    84
    
    
    
    0.90
    %
    
    $
    54,121
    
    
    
    294
    
    
    
    2.18
    %Savings deposits
    
    
    9,544
    
    
    
    17
    
    
    
    0.72
    %
    
    
    11,022
    
    
    
    50
    
    
    
    1.82
    %Time deposits
    
    
    275,309
    
    
    
    2,652
    
    
    
    3.91
    %
    
    
    253,067
    
    
    
    3,037
    
    
    
    4.81
    %FHLB advances and repurchase agreements
    
    
    144,150
    
    
    
    1,455
    
    
    
    4.09
    %
    
    
    137,844
    
    
    
    1,456
    
    
    
    4.24
    %ESOP Loan
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    32
    
    
    
    0
    
    
    
    6.00
    %Subordinated debentures
    
    
    12,317
    
    
    
    302
    
    
    
    6.71
    %
    
    
    17,819
    
    
    
    291
    
    
    
    6.55
    %Total Interest Bearing Liabilities/
Total Interest Expense / Average
Interest Rate Spread
    
    
    479,297
    
    
    
    4,510
    
    
    
    3.82
    %
    
    
    473,905
    
    
    
    5,128
    
    
    
    4.34
    %Noninterest bearing deposits
    
    
    42,641
    
    
    
    
    
    
    
    
    
    
    
    34,151All other liabilities
    
    
    3,454
    
    
    
    
    
    
    
    
    
    
    
    3,843Stockholders equity
    
    
    34,983
    
    
    
    
    
    
    
    
    
    
    
    33,703Total Liabilities & Equity
    
    $
    560,375
    
    
    
    
    
    
    
    
    
    
    $
    545,602Net Interest Income
    
    
    
    
    
    $
    2,808
    
    
    
    
    
    
    
    
    
    
    $
    2,673Net interest rate spread
    
    
    
    
    
    
    
    
    
    
    1.85
    %
    
    
    
    
    
    
    
    
    
    
    1.75
    %Net Interest Margin (Net Interest Income /
Total Earning Assets)
    
    
    
    
    
    
    
    
    
    
    2.17
    %
    
    
    
    
    
    
    
    
    
    
    2.09
    %Net Interest Margin (fully taxable equivalent)
    
    
    
    
    
    
    
    
    
    
    2.21
    %
    
    
    
    
    
    
    
    
    
    
    2.18
    %
 24




---



##### Table of Contents



Provision for Loan Losses
  Noninterest Income
  Noninterest Expense
  Provision for Income Taxes
  25




---



##### Table of Contents



Asset/Liability Management
     26




---



##### Table of Contents



After Three
    
    
    After OneWithin
    
    
    Months But
    
    
    Year But
    
    
    AfterThree
    
    
    Within
    
    
    Within
    
    
    FiveMonths
    
    
    One Year
    
    
    Five Years
    
    
    Years
    
    
    Total(In thousands)Interest earning assets:Excess Cash and Fed Funds Sold
    
    $
    18,145
    
    
    $
    
    
    
    $
    
    
    
    $
    
    
    
    $
    18,145Securities, at amortized cost
    
    
    9,472
    
    
    
    16,130
    
    
    
    23,101
    
    
    
    24,270
    
    
    
    72,973FHLB stock
    
    
    
    
    
    
    5,877
    
    
    
    
    
    
    
    
    
    
    
    5,877Loans (including held for sale)
    
    
    129,434
    
    
    
    67,766
    
    
    
    194,540
    
    
    
    40,716
    
    
    
    432,456Total
    
    
    157,051
    
    
    
    89,773
    
    
    
    217,641
    
    
    
    64,986
    
    
    $
    529,451Interest bearing liabilitiesNOW and money market accounts
    
    
    19,952
    
    
    
    5,519
    
    
    
    9,348
    
    
    
    1,202
    
    
    
    36,021Savings deposits
    
    
    510
    
    
    
    2,210
    
    
    
    5,779
    
    
    
    
    
    
    
    8,499Jumbo time deposits
    
    
    39,912
    
    
    
    124,971
    
    
    
    62,383
    
    
    
    
    
    
    
    227,266Time deposits < $100,000
    
    
    6,894
    
    
    
    16,157
    
    
    
    25,026
    
    
    
    
    
    
    
    48,077Repurchase agreements
    
    
    18,300
    
    
    
    
    
    
    
    19,000
    
    
    
    
    
    
    
    37,300FHLB
    
    
    4,000
    
    
    
    33,000
    
    
    
    45,000
    
    
    
    26,200
    
    
    
    108,200Subordinated debentures
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    18,557
    
    
    
    18,557Total
    
    
    89,568
    
    
    
    181,857
    
    
    
    166,536
    
    
    
    45,959
    
    
    $
    483,920Rate sensitivity gap
    
    $
    67,483
    
    
    $
    (92,084
    )
    
    $
    51,105
    
    
    $
    19,027Cumulative rate sensitivity gap
    
    
    
    
    
    $
    (24,601
    )
    
    $
    26,504
    
    
    $
    45,531Rate sensitivity gap ratio
    
    
    1.75x
    
    
    
    0.49x
    
    
    
    1.31x
    
    
    
    1.41xCumulative rate sensitivity gap ratio
    
    
    
    
    
    
    .91x
    
    
    
    1.06x
    
    
    
    1.09x
  27




---



##### Table of Contents



Percentage ChangeInterest Rate Scenario
    
    In Net Interest IncomeInterest rates up 300 basis points
    
    
    -12.8
    %Interest rates up 200 basis points
    
    
    -7.4
    %Interest rates up 100 basis points
    
    
    -3.3
    %Base Case
    
    
    Interest rates down 100 basis points
    
    
    3.9
    %Interest rates down 200 basis points
    
    
    8.2
    %Interest rates down 300 basis points
    
    
    2.4
    %
 
 Item 3. Quantitative and Qualitative Disclosures About Market Risk
  
 Item 4T. Controls and Procedures
    28




---



##### Table of Contents



PART II
 
 Item 1. Legal Proceedings
  
 Item 1A. Risk Factors
 An investment in our stock involves a number of risks. Before making an investment decision, you
should carefully consider all of the risks described in this document. If any of the risks
discussed in this document occur, our business, financial condition, liquidity and results of
operations could be materially and adversely affected. Additional risks and uncertainties not
presently known to us also may adversely affect our business, financial condition, liquidity and
results of operations.
 Recent negative developments in the financial industry and credit markets may continue to adversely
impact our financial condition and results of operations.
  Recent legislative and regulatory initiatives to address difficult market and economic conditions
may not stabilize the U.S. banking system.
   29




---



##### Table of Contents



Current levels of market volatility are unprecedented and may adversely affect us.
  Continued deterioration of the economy and real estate market in Michigan could hurt our business.
  Our business is subject to various lending risks depending on the nature of the borrowers
business, its cash flow and our collateral.
 Our commercial real estate loans involve higher principal amounts than other loans, and
repayment of these loans may be dependent on factors outside our control or the control of
our borrowers.
 Repayment of our commercial and industrial loans is often dependent on cash flow of the
borrower, which may be unpredictable, and collateral securing these loans may fluctuate in
value.
 Our construction and land development loans are based upon estimates of costs to
construct and value associated with the completed project.
 30




---



##### Table of Contents



Our consumer loans generally have a higher risk of default than our other loans .
 We may elect, or be required, to make further increases in our provisions for loan losses and to
charge off additional loans in the future, which could adversely affect our results of operations.
  If our allowance for loan losses is not sufficient to cover actual loan losses, or if we are
required to increase our provision for loan losses, our results of operations and financial
condition could be materially adversely affected.
   31




---



##### Table of Contents



Changes in economic conditions or interest rates may negatively affect our earnings, capital and
liquidity.
  Our deposit insurance premiums are expected to increase substantially, which will adversely affect
our profits.
     Our funding sources may prove insufficient to fund our balance sheet activities, replace deposits
at maturity and support our future growth.
  32




---



##### Table of Contents



We may elect or be compelled to seek additional capital in the future, but that capital may not be
available when it is needed.
   We rely heavily on our management and other key personnel, and the loss of any of them may
adversely effect our operations.
  33




---



##### Table of Contents



Our future success in dependent on our ability to compete effectively in the highly competitive
banking industry.
  We are subject to extensive regulation which could adversely affect our business.
  We continually encounter technological changes, and we may have fewer resources than our
competitors to continue to invest in technological improvements.
  Our articles of incorporation and by-laws and Michigan laws contain certain provisions that could
make a takeover more difficult.
   34




---



##### Table of Contents



Our ability to pay dividends is limited by law and contract.
  There is a limited trading market for our common stock.
   
 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.
  
 Item 3. Defaults upon Senior Securities.
  
 Item 4. Submission of Matters to a Vote of Security Holders.
  
 Item 5. Other Information.
  35




---



##### Table of Contents



Item 6. Exhibits.
  
   COMMUNITY CENTRAL BANK CORPORATIONBy:
    S/ DAVID A. WIDLAKDavid A. Widlak;President and CEO
(Principal Executive Officer)By:
    S/ RAY T. COLONIUSRay T. Colonius;Treasurer

(Principal Financial and Accounting Officer) 36




---



##### Table of Contents



EXHIBITNUMBER
    
    EXHIBIT DESCRIPTION3.1
    
    Articles of Incorporation are incorporated by reference to Exhibit 3.1 of
the Corporations Registration Statement on Form SB-2 (SEC File No. 333-04113).3.2
    
    Bylaws, as amended, of the Corporation are incorporated by reference to
Exhibit 3 of the Corporations Current Quarterly Report on Form 8-K filed on
September 19, 2007 (SEC File No. 000-33373).4.1
    
    Specimen of Stock Certificate of Community Central Bank Corporation is
incorporated by reference to Exhibit 4.2 of the Corporations Registration Statement
on Form SB-2 (SEC File No. 333-04113).4.2
    
    Certificate of Designation of Community Central Bank Corporation filed on
December 30, 2008 with the State of Michigan designating the preferences,
limitations, voting powers and relative rights of the Series A Preferred Stock, is
incorporated by reference to Exhibit 4.1 of the Corporations Current Report on Form
8-K filed on January 6, 2009. (SEC File No. 000-33373)10.1
    
    1996 Employee Stock Option Plan is incorporated by reference to Exhibit
10.1 of the Corporations Registration Statement on Form SB-2 (SEC File No.
333-04113).10.2
    
    2000 Employee Stock Option Plan is incorporated by reference to Exhibit
10.6 of the Corporations Annual Report filed with the SEC on Form 10-KSB for the
year ended December 31, 2000 (SEC File No. 000-33373).10.3
    
    2002 Incentive Plan is incorporated by reference to Exhibit 10.7 of the
Corporations Annual Report filed with the SEC on Form 10-KSB for the year ended
December 31, 2001 (SEC File No. 000-33373).10.4
    
    Community Central Bank Supplemental Executive Retirement Plan, as
amended, and Individual Participant Agreements are incorporated by reference to
Exhibit 10.6 of the Corporations Annual Report on Form 10-K filed with the SEC for
the year ended December 31, 2006 (SEC File No. 000-33373).10.5
    
    Community Central Bank Death Benefit Plan, as amended, is incorporated by
reference to Exhibit 10.7 of the Corporations Annual Report on Form 10-K for the
year ended December 31, 2006 (SEC File No. 000-33373).10.6
    
    Form of Incentive Stock Option Agreement incorporated by reference to
Exhibit 99.1 of the Corporations Current Report on Form 8-K filed with the SEC on
March 25, 2005 (SEC File No. 000-33373).10.7
    
    Form of Non-qualified Stock Option Agreement is incorporated by reference
to the Corporations Current Report on Form 8-K filed on January 17, 2006 (SEC File
No. 000-33373).10.8
    
    Summary of Current Director Fee Arrangements is incorporated by reference
to Exhibit 10.10 of the Corporations Annual Report filed with the SEC on Form
10-KSB for the year ended December 31, 2004 (SEC File No. 000-33373).11
    
    Computation of Per Share Earnings31.1
    
    Rule 13a  14(a) Certification (Chief Executive Officer)
 37




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##### Table of Contents



31.2
    
    Rule 13a  14(a) Certification (Chief Financial Officer)32
    
    Rule 1350 Certifications
 38