##### 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, 2010
 Commission File No. 000-33373
 COMMUNITY CENTRAL BANK CORPORATION
  Michigan
(State or other jurisdiction of incorporation or organization)
    
    38-3291744
(IRS Employer Identification No.)
 
 
  o þ
 o o
  Large accelerated filer o
    
    Accelerated filer o
    
    Non-accelerated filer o
    
    Smaller reporting company þ(Do not check if a smaller reporting company)
  o þ
  Class
    
    Outstanding at May 17, 2010Common Stock
    
    3,737,181 Shares




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TABLE OF CONTENTS  PART IItem 1. Financial StatementsItem 2. Managements Discussion and Analysis of Financial Conditions and Results 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 ProceedsItem 3. Defaults upon Senior SecuritiesItem 4. Submission of Matters to a Vote of Security HoldersItem 5. Other InformationItem 6. ExhibitsSIGNATURESEX-11EX-31.1EX-31.2EX-32    Table of Contents  
 
 PART I
 
 Item 1. Financial Statements
 Consolidated Balance Sheet
 March 31,
    
    
    December 31,2010
    
    
    2009(Unaudited)(In thousands)AssetsCash and due from banks
    
    $
    41,765
    
    
    $
    33,115Federal funds sold
    
    
    26,212
    
    
    
    1,048Cash and Cash Equivalents
    
    
    67,977
    
    
    
    34,163Securities available for sale, at fair value
    
    
    49,162
    
    
    
    65,903Securities held to maturity, at amortized cost
    
    
    3,681
    
    
    
    3,467FHLB stock
    
    
    5,877
    
    
    
    5,877Residential mortgage loans held for sale
    
    
    3,801
    
    
    
    3,497LoansCommercial real estate
    
    
    276,857
    
    
    
    273,578Commercial and industrial
    
    
    44,535
    
    
    
    48,782Residential real estate
    
    
    49,792
    
    
    
    51,101Home equity lines of credit
    
    
    21,647
    
    
    
    21,889Consumer loans
    
    
    6,742
    
    
    
    6,961Credit card loans
    
    
    771
    
    
    
    856Total Loans
    
    
    400,344
    
    
    
    403,167Allowance for credit losses
    
    
    (14,508
    )
    
    
    (12,957
    )Net Loans
    
    
    385,836
    
    
    
    390,210Net property and equipment
    
    
    8,962
    
    
    
    9,106Accrued interest receivable
    
    
    1,990
    
    
    
    1,878Other real estate
    
    
    8,597
    
    
    
    9,300Goodwill
    
    
    638
    
    
    
    638Intangible assets, net of amortization
    
    
    51
    
    
    
    57Cash surrender value of Bank Owned Life Insurance
    
    
    11,364
    
    
    
    11,285Other assets
    
    
    7,783
    
    
    
    8,465Total Assets
    
    $
    555,719
    
    
    $
    543,846
 (continued)
 1




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##### Table of Contents



Consolidated Balance Sheet
 March 31,
    
    
    December 31,2010
    
    
    2009(Unaudited)(In thousands)LiabilitiesDepositsNoninterest bearing demand deposits
    
    $
    52,984
    
    
    $
    45,716NOW and money market accounts
    
    
    41,647
    
    
    
    41,872Savings deposits
    
    
    9,138
    
    
    
    8,800Time deposits
    
    
    322,446
    
    
    
    304,743Total Deposits
    
    
    426,215
    
    
    
    401,131Repurchase agreements
    
    
    36,407
    
    
    
    41,106Federal Home Loan Bank advances
    
    
    65,700
    
    
    
    65,700Accrued interest payable
    
    
    514
    
    
    
    618Other liabilities
    
    
    3,263
    
    
    
    2,937Subordinated debentures at fair value option
    
    
    7,865
    
    
    
    8,366Total Liabilities
    
    
    539,964
    
    
    
    519,858Stockholders EquityPreferred stock (1,000,000 $1,000 par value shares authorized
and 7,775 shares and 7,265 shares issued and outstanding
at March 31, 2010 and December 31, 2009, respectively.)
    
    
    7,645
    
    
    
    7,146Common stock (No par value; 9,000,000 shares
authorized, and 3,737,181 outstanding at March 31, 2010
and December 31, 2009)
    
    
    32,242
    
    
    
    32,214Accumulated deficit
    
    
    (24,360
    )
    
    
    (15,536
    )Accumulated other comprehensive income
    
    
    228
    
    
    
    164Total Stockholders Equity
    
    
    15,755
    
    
    
    23,988Total Liabilities and Stockholders Equity
    
    $
    555,719
    
    
    $
    543,846
 2




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##### Table of Contents



Consolidated Statements of Income
 Three Months EndedMarch 31,2010
    
    
    2009(In thousands, except per share data)Interest IncomeLoans (including fees)
    
    $
    5,869
    
    
    $
    6,260Taxable securities
    
    
    498
    
    
    
    938Tax exempt securities
    
    
    15
    
    
    
    114Federal funds sold
    
    
    22
    
    
    
    6Total Interest Income
    
    
    6,404
    
    
    
    7,318Interest ExpenseNOW and money market accounts
    
    
    66
    
    
    
    84Savings deposits
    
    
    14
    
    
    
    17Time deposits
    
    
    2,264
    
    
    
    2,652Repurchase agreements and fed funds purchased
    
    
    296
    
    
    
    317Federal Home Loan Bank advances
    
    
    772
    
    
    
    1,138Subordinated debentures
    
    
    311
    
    
    
    302Total interest expense
    
    
    3,723
    
    
    
    4,510Net Interest Income
    
    
    2,681
    
    
    
    2,808Provision for Credit Losses
    
    
    8,200
    
    
    
    2,550Net Interest Income after Provision for Credit Losses
    
    
    (5,519
    )
    
    
    258Noninterest IncomeFiduciary income
    
    
    66
    
    
    
    83Deposit service charges
    
    
    91
    
    
    
    95Net realized security gain
    
    
    78
    
    
    
    128Change in fair value of assets/liabilities carried at
fair value under SFAS 159
    
    
    501
    
    
    
    232Mortgage banking income
    
    
    704
    
    
    
    471Other income
    
    
    378
    
    
    
    205Total noninterest income
    
    
    1,818
    
    
    
    1,214Noninterest ExpenseSalaries, benefits and payroll taxes
    
    
    2,234
    
    
    
    1,932Net occupancy expense
    
    
    458
    
    
    
    463Other operating expense
    
    
    2,295
    
    
    
    1,479Total noninterest expense
    
    
    4,987
    
    
    
    3,874(Loss) Before Taxes
    
    
    (8,688
    )
    
    
    (2,402
    )Provision for Income Tax (Benefit) Expense
    
    
    
    
    
    
    (858
    )Net (loss)
    
    $
    (8,688
    )
    
    $
    (1,544
    )Dividends declared on preferred shares
    
    
    136
    
    
    
    50Net (loss) available on common shares
    
    $
    (8,824
    )
    
    $
    (1,594
    )Per share data:Basic earnings (loss)
    
    $
    (2.36
    )
    
    $
    (0.43
    )Diluted earnings (loss)
    
    $
    (2.36
    )
    
    $
    (0.43
    )Cash dividends per common share
    
    $
    
    
    
    $
    
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Consolidated Statements of Comprehensive Income
 Three Months EndedMarch 31,2010
    
    
    2009(In thousands)Net Loss as Reported
    
    
    ($8,688
    )
    
    
    ($1,544
    )Other Comprehensive Income, Net of TaxChange in unrealized net gain on securities
available for sale
    
    
    64
    
    
    
    191Comprehensive Loss
    
    
    ($8,624
    )
    
    
    ($1,353
    )
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Consolidated Statements of Cash Flow
 Three Months Ended March 31,2010
    
    
    2009(In thousands)Operating ActivitiesNet Loss
    
    
    ($8,688
    )
    
    
    ($1,544
    )Adjustments to reconcile net loss to net cash flow from operating activities:Net amortization of security premium
    
    
    (235
    )
    
    
    33Net gain on available for sale securities
    
    
    (78
    )
    
    
    (128
    )Net gain on instruments at fair value
    
    
    (501
    )
    
    
    (232
    )Provision for credit losses
    
    
    8,200
    
    
    
    2,550Depreciation expense (benefit)
    
    
    (175
    )
    
    
    163Deferred income tax benefit
    
    
    
    
    
    
    (769
    )Fair value of employee stock option expense
    
    
    28
    
    
    
    20Decrease (increase) in accrued interest receivable
    
    
    (112
    )
    
    
    190(Increase) decrease in other assets
    
    
    (2,874
    )
    
    
    3,454(Decrease) in accrued interest payable
    
    
    (104
    )
    
    
    (423
    )Increase (decrease) in other liabilities
    
    
    326
    
    
    
    (1,040
    )(Increase) in loans sold held for sale
    
    
    (304
    )
    
    
    (7,571
    )(Increase) decrease in other real estate
    
    
    703
    
    
    
    (606
    )Net Cash Used in Operating Activities
    
    
    (3,814
    )
    
    
    (5,903
    )Investing ActivitiesSales, maturities, calls and prepayments of securities available for sale
    
    
    20,889
    
    
    
    30,931Purchases of securities available for sale
    
    
    (3,985
    )
    
    
    (23,397
    )Maturities, calls, sales and prepayments of trading securities
    
    
    
    
    
    
    17,463Transfer and purchase of trading securities
    
    
    
    
    
    
    (1,737
    )Maturities, calls, and prepayments of held to maturity securities
    
    
    33
    
    
    
    27Purchases of held to maturity securities
    
    
    
    
    
    
    (336
    )Increase in loans
    
    
    (26
    )
    
    
    (16,615
    )Purchases of property and equipment
    
    
    (31
    )
    
    
    (50
    )Net Cash Provided by Investing Activities
    
    
    16,880
    
    
    
    6,286Financing ActivitiesNet increase in demand and savings deposits
    
    
    7,381
    
    
    
    11,449Net (decrease) increase in time deposits
    
    
    17,703
    
    
    
    (1,125
    )Net decrease in short term borrowings
    
    
    (4,699
    )
    
    
    (2,094
    )FHLB advance repayments
    
    
    
    
    
    
    (5,500
    )Preferred Stock Issuance
    
    
    499
    
    
    
    500Preferred Stock dividend paid
    
    
    (136
    )
    
    
    (49
    )Net Cash Provided by Financing Activities
    
    
    20,748
    
    
    
    3,181Increase in Cash and Cash Equivalents
    
    
    33,814
    
    
    
    3,564Cash and Cash Equivalents at the Beginning of the Period
    
    
    34,163
    
    
    
    16,162Cash and Cash Equivalents at the End of the Period
    
    $
    67,977
    
    
    $
    19,726Supplemental Disclosure of Cash Flow InformationInterest paid
    
    $
    3,827
    
    
    $
    4,933Federal Taxes Paid
    
    
    
    
    
    
    Loans transferred to other real estate owned
    
    $
    524
    
    
    $
    606
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New Accounting Pronouncements:
       6




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##### Table of Contents



Fair Value Hierarchy
 Fair Value Measurements,
      Financial Instruments, the Fair Value Option.
  Financial Instruments, the Fair Value Option.
  Fair Value Measurements, Financial
Instruments, Fair Value Option
 7




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Fair Value Measurements and Disclosures, Fair Value Measurements and Disclosures Fair Value Measurements and Disclosures Financial Instruments, Fair Value Option,
    8




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Changes in fair value forthree months endedMarch 31, 2010Fair Value Measurement at
    
    
    
    
    
    
    measured at fair valueMarch 31, 2010
    
    
    
    
    
    
    pursuant to election ofSignificant Other
    
    
    Significant
    
    
    the fair value optionFair Value
    
    
    Observable
    
    
    Unobservable
    
    
    Other Gains or Losses inMeasurements
    
    
    Inputs
    
    
    Inputs
    
    
    noninterest incomeDescription
    
    3/31/2010
    
    
    (Level 2)
    
    
    (Level 3)
    
    
    pretax income(In thousands of dollars)Securities available for sale
    
    $
    49,162
    
    
    $
    49,162
    
    
    $
    
    
    
    $
    Subordinated Debentures
    
    
    7,865
    
    
    
    
    
    
    
    7,865
    
    
    
    501$
    501
 Changes in fair value forthree months endedMarch 31, 2009Fair Value Measurement at
    
    
    
    
    
    
    measured at fair valueMarch 31, 2009
    
    
    
    
    
    
    pursuant to election ofSignificant Other
    
    
    Significant
    
    
    the fair value optionsFair Value
    
    
    Observable
    
    
    Unobservable
    
    
    Other Gains or Losses inMeasurements
    
    
    Inputs
    
    
    Inputs
    
    
    noninterest incomeDescription
    
    3/31/2009
    
    
    (Level 2)
    
    
    (Level 3)
    
    
    pretax income(In thousands of dollars)Trading Securities
    
    $
    1,737
    
    
    $
    1,737
    
    
    $
    
    
    
    $
    (103
    )Securities available for sale
    
    
    69,184
    
    
    
    69,184
    
    
    
    
    
    
    
    Interest rate swap hedging securities
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (75
    )Subordinated Debentures
    
    
    12,022
    
    
    
    
    
    
    
    12,022
    
    
    
    735Interest rate swap hedging
subordinated
debentures
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (325
    )$
    232
  9




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Changes in level 3 recurring fair value measurements
  Fair value measurements using significant unobservable inputs (In thousands)
 Changes in fairvalue related toTotal realized /
    
    
    Purchases
    
    
    Transfers
    
    
    
    
    
    
    financialFor the quarter ended
    
    Fair Value
    
    
    unrealized
    
    
    issuances
    
    
    in and / or
    
    
    Fair Value
    
    
    instruments held atMarch 31, 2010
    
    January 1, 2010
    
    
    gains / (losses)
    
    
    settlements, net
    
    
    out of Level 3
    
    
    March 31, 2010
    
    
    March 31, 2010SubordinatedDebentures
    
    $
    8,366
    
    
    $
    501
    
    
    $
    
    
    
    $
    
    
    
    $
    7,865
    
    
    $
    501
 Changes in fairvalue related toTotal realized /
    
    
    Purchases
    
    
    Transfers
    
    
    
    
    
    
    financialFor the year 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, 2009SubordinatedDebentures
    
    $
    12,757
    
    
    $
    735
    
    
    $
    
    
    
    $
    
    
    
    $
    12,022
    
    
    $
    735
 Assets Measured at Fair Value on a Nonrecurring Basis
 Impaired Loans
 Accounting by
Creditors for Impairment of a Loan.
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Other Real Estate Owned
   Active Markets
    
    
    Significant Other
    
    
    Significantfor Identical
    
    
    Observable
    
    
    UnobservableAssets
    
    
    Inputs
    
    
    InputsAssets
    
    Date
    
    
    (Level 1)
    
    
    (Level 2)
    
    
    (Level 3)(In thousands)
    
    
    
    
    
    
    
    
    
    
    Total Losses forthe quarter endedMarch 31, 2010March 31, 2010Impaired loans
    
    $
    36,699
    
    
    $
    
    
    
    $
    
    
    
    $
    36,699
    
    
    $
    4,968Other real estate owned
    
    
    9,300
    
    
    
    
    
    
    
    
    
    
    
    9,300
    
    
    
    401Total Losses forthe quarter endedMarch 31, 2009March 31, 2009Impaired loans
    
    $
    24,266
    
    
    $
    
    
    
    $
    
    
    
    $
    24,266
    
    
    $
    1,756Other real estate owned
    
    
    3,379
    
    
    
    
    
    
    
    
    
    
    
    3,379
    
    
    
    253
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March 31, 2010
    
    
    December 31, 2009Carrying
    
    
    Estimated
    
    
    Carrying
    
    
    EstimatedAmount
    
    
    Fair Value
    
    
    Amount
    
    
    Fair Value(In thousands)Financial AssetsCash and cash equivalents
    
    $
    67,977
    
    
    $
    67,977
    
    
    $
    34,163
    
    
    $
    34,163Securities available for sale, at fair value
    
    
    49,162
    
    
    
    49,162
    
    
    
    76,552
    
    
    
    76,552Securities held to maturity, at amortized cost
    
    
    3,681
    
    
    
    3,708
    
    
    
    3,467
    
    
    
    3,469FHLB stock
    
    
    5,877
    
    
    
    5,877
    
    
    
    5,877
    
    
    
    5,877Residential mortgages held for sale
    
    
    3,801
    
    
    
    3,801
    
    
    
    3,497
    
    
    
    3,497Loans, net of allowance
    
    
    385,837
    
    
    
    396,889
    
    
    
    392,210
    
    
    
    402,500Accrued interest receivable
    
    
    1,990
    
    
    
    1,990
    
    
    
    1,878
    
    
    
    1,878Financial LiabilitiesDemand and savings deposits
    
    
    103,769
    
    
    
    103,469
    
    
    
    96,388
    
    
    
    96,388Time deposits
    
    
    322,446
    
    
    
    328,837
    
    
    
    304,743
    
    
    
    311,102Repurchase agreements
    
    
    36,407
    
    
    
    36,407
    
    
    
    41,106
    
    
    
    41,106Federal Home Loan Bank advances
    
    
    65,700
    
    
    
    66,985
    
    
    
    65,700
    
    
    
    66,883Accrued interest payable
    
    
    514
    
    
    
    514
    
    
    
    618
    
    
    
    618Subordinated debentures (a)
    
    
    7,865
    
    
    
    7,865
    
    
    
    8,366
    
    
    
    8,366
 
 (a)
    
    Carried at fair value ASC 825, Financial Instruments, The Fair Value Option for Financial
Assets and Liabilities, for the entire category.      12




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Financial Instruments, The Fair Value Option
  13




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Item 2. Managements Discussion and Analysis of Financial Conditions and Results of Operation
  SAFE HARBOR REGARDING FORWARD-LOOKING STATEMENTS
   EXECUTIVE SUMMARY
   14




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15




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Assets
     16




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March 31,
    
    
    Percentage
    
    
    December 31,
    
    
    Percentage
    
    
    Net
    
    
    Net2010
    
    
    of total loans
    
    
    2009
    
    
    of total loans
    
    
    Change
    
    
    Change %(In thousands, except percentages)Loans held for sale:Residential real estate
    
    $
    3,801
    
    
    
    
    
    
    $
    3,497
    
    
    
    
    
    
    $
    304
    
    
    
    8.69
    %Loans held in the portfolio:Commercial real estate
    
    $
    276,857
    
    
    
    69.2
    %
    
    $
    273,578
    
    
    
    67.9
    %
    
    $
    3,279
    
    
    
    1.20
    %Commercial and industrial
    
    
    44,535
    
    
    
    11.1
    %
    
    
    48,782
    
    
    
    12.1
    %
    
    $
    (4,247
    )
    
    
    (8.71
    %)Residential real estate
    
    
    49,792
    
    
    
    12.4
    %
    
    
    51,101
    
    
    
    12.7
    %
    
    $
    (1,309
    )
    
    
    (2.56
    %)Home equity lines
    
    
    21,647
    
    
    
    5.4
    %
    
    
    21,889
    
    
    
    5.4
    %
    
    $
    (242
    )
    
    
    (1.11
    %)Consumer loans
    
    
    6,742
    
    
    
    1.7
    %
    
    
    6,961
    
    
    
    1.7
    %
    
    $
    (219
    )
    
    
    (3.15
    %)Credit cards
    
    
    771
    
    
    
    0.2
    %
    
    
    856
    
    
    
    0.2
    %
    
    $
    (85
    )
    
    
    (9.93
    %)Total loans
    
    $
    400,344
    
    
    
    100.0
    %
    
    $
    403,167
    
    
    
    100.0
    %
    
    $
    (2,823
    )
    
    
    -0.7
    %
    17




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March 31,
    
    
    December 31,2010
    
    
    2009(In thousands)Nonaccrual loans:Commercial real estate
    
    $
    14,905
    
    
    $
    16,020Commercial and industrial
    
    
    2,288
    
    
    
    584Residential real estate
    
    
    4,906
    
    
    
    5,673Home equity lines
    
    
    288
    
    
    
    219Consumer loans
    
    
    445
    
    
    
    378Credit cards
    
    
    
    
    
    
    Total
    
    
    22,832
    
    
    
    22,874Accruing loans delinquent more than 90 days:Commercial real estate
    
    $
    
    
    
    $
    Commercial and industrial
    
    
    
    
    
    
    Residential real estate
    
    
    84
    
    
    
    Home equity lines
    
    
    
    
    
    
    Consumer loans
    
    
    
    
    
    
    Credit cards
    
    
    
    
    
    
    7Total
    
    
    84
    
    
    
    7Total nonperforming loans
    
    $
    22,916
    
    
    $
    22,881Troubled debt restructured loans:Commercial real estate
    
    $
    29,603
    
    
    $
    20,341Commercial and industrial
    
    
    83
    
    
    
    83Residential real estate
    
    
    1,483
    
    
    
    Total
    
    
    31,169
    
    
    
    20,424Other real estate owned:Commercial real estate
    
    $
    8,275
    
    
    $
    8,881Residential real estate
    
    
    322
    
    
    
    419Total
    
    
    8,597
    
    
    
    9,300Other repossessed boats
    
    $
    347
    
    
    $
    494Total nonperforming loans to total loans
    
    
    5.72
    %
    
    
    5.68
    %Allowance for loan losses to nonperforming loans
    
    
    63.30
    %
    
    
    56.62
    %
  18




---



##### Table of Contents



Three Months Ended
    
    
    Year EndedMarch 31,
    
    
    December 31,2010
    
    
    2009(In thousands)Balance at beginning of the period
    
    $
    12,957
    
    
    $
    7,315Charge-offs:Commercial real estate
    
    
    5,000
    
    
    
    7,257Commercial and industrial
    
    
    586
    
    
    
    1,205Residential real estate
    
    
    928
    
    
    
    486Home equity lines
    
    
    61
    
    
    
    538Consumer loans
    
    
    195
    
    
    
    237Credit cards
    
    
    39
    
    
    
    54Total charge-offs
    
    
    6,809
    
    
    
    9,777Recoveries:Commercial real estate
    
    
    1
    
    
    
    72Commercial and industrial
    
    
    155
    
    
    
    400Residential real estate
    
    
    2
    
    
    
    23Home equity lines
    
    
    
    
    
    
    3Consumer loans
    
    
    2
    
    
    
    71Credit cards
    
    
    
    
    
    
    Total recoveries
    
    
    160
    
    
    
    569Net charge-offs (recoveries)
    
    
    6,649
    
    
    
    9,208Provision charged to earnings
    
    
    8,200
    
    
    
    14,850Balance at the end of the period
    
    $
    14,508
    
    
    $
    12,957As a percentage of total portfolio loans
    
    
    3.62
    %
    
    
    3.21
    %Ratio of net charge-offs during the
period to average loans during
the period (Annualized)
    
    
    6.70
    %
    
    
    2.22
    %
  Liabilities
  19




---



##### Table of Contents



Percentage
    
    
    
    
    
    
    PercentageMarch 31,
    
    
    of total
    
    
    December 31,
    
    
    of total
    
    
    Net
    
    
    Net2010
    
    
    deposits
    
    
    2010
    
    
    deposits
    
    
    Change
    
    
    Change %(In thousands, except percentages)Noninterest bearing demand
    
    $
    52,984
    
    
    
    12.4
    %
    
    $
    45,716
    
    
    
    11.4
    %
    
    $
    7,268
    
    
    
    15.90
    %NOW accounts
    
    
    19,891
    
    
    
    4.7
    %
    
    
    17,059
    
    
    
    4.3
    %
    
    
    2,832
    
    
    
    16.60
    %Money market accounts
    
    
    21,756
    
    
    
    5.1
    %
    
    
    24,813
    
    
    
    6.2
    %
    
    
    (3,057
    )
    
    
    (12.32
    %)Savings deposits
    
    
    9,138
    
    
    
    2.1
    %
    
    
    8,800
    
    
    
    2.2
    %
    
    
    338
    
    
    
    3.84
    %Time deposits under $100,000
    
    
    96,484
    
    
    
    22.6
    %
    
    
    77,769
    
    
    
    19.4
    %
    
    
    18,715
    
    
    
    24.06
    %Time deposits $100,000 and over
    
    
    225,962
    
    
    
    53.0
    %
    
    
    226,974
    
    
    
    56.6
    %
    
    
    (1,012
    )
    
    
    (0.45
    %)Total deposits
    
    $
    426,215
    
    
    
    100.0
    %
    
    $
    401,131
    
    
    
    100.0
    %
    
    $
    25,084
    
    
    
    6.3
    %
 20




---



##### Table of Contents



March 31,
    
    
    December 31,2010
    
    
    2009(Dollars in thousands)Amount outstanding at end of periodShort-term repurchase agreements
    
    $
    17,407
    
    
    $
    22,106Short-term FHLB advances
    
    $
    32,000
    
    
    $
    22,000Weighted average interest rate on ending balanceShort-term repurchase agreements
    
    
    1.46
    %
    
    
    1.49
    %Short-term FHLB advances
    
    
    4.33
    %
    
    
    4.56
    %Maximum amount outstanding at any month end
during the yearShort-term repurchase agreements
    
    $
    17,407
    
    
    $
    25,771Short-term FHLB advances
    
    $
    32,000
    
    
    $
    29,000Average amount outstanding during the yearShort-term repurchase agreements
    
    $
    18,589
    
    
    $
    20,863Short-term FHLB advances
    
    $
    27,000
    
    
    $
    31,000Weighted average interest rateShort-term repurchase agreements
    
    
    1.23
    %
    
    
    1.55
    %Short-term FHLB advances
    
    
    4.33
    %
    
    
    4.03
    %
    Fair Value
    
    
    Average rateat end of period
    
    
    at end of period(In thousands, except percentages)Short-term FHLB advances
    
    $
    32,000
    
    
    
    4.33
    %Long-term FHLB advances
    
    $
    33,700
    
    
    
    5.04
    %$
    65,700
    
    
    
    4.70
    %
 21




---



##### Table of Contents



Liquidity and Capital Resources
   March 31,
    
    December 31,
    
    Minimum Ratio
    
    Ratio2010
    
    2009
    
    for Capital
    
    to beCapital
    
    Ratio
    
    Capital
    
    Ratio
    
    Adequacy Purposes
    

Well Capitalized(In thousands, except percentages)Tier I capital to risk-weighted assetsConsolidated
    
    $
    13,098
    
    
    
    3.35
    %
    
    $
    24,584
    
    
    
    6.31
    %
    
    
    4
    %
    
    
    NABank only
    
    
    22,510
    
    
    
    5.77
    %
    
    
    31,133
    
    
    
    7.99
    %
    
    
    4
    %
    
    
    6
    %Total capital to risk-weighted assetsConsolidated
    
    $
    26,196
    
    
    
    6.71
    %
    
    $
    44,619
    
    
    
    11.44
    %
    
    
    8
    %
    
    
    NABank only
    
    
    27,507
    
    
    
    7.05
    %
    
    
    36,102
    
    
    
    9.27
    %
    
    
    8
    %
    
    
    10
    %Tier I capital to average assetsConsolidated
    
    $
    13,098
    
    
    
    2.34
    %
    
    $
    24,584
    
    
    
    4.47
    %
    
    
    4
    %
    
    
    NABank only
    
    
    22,510
    
    
    
    4.02
    %
    
    
    31,133
    
    
    
    5.67
    %
    
    
    4
    %
    
    
    5
    %
  22




---



##### Table of Contents



AccumulatedOtherPreferred
    
    
    Common
    
    
    Retained
    
    
    Comprehensive
    
    
    TotalStock
    
    
    Stock
    
    
    Earnings
    
    
    Income/(Loss)
    
    
    EquityBeginning balance, January 1, 2010
    
    $
    7,146
    
    
    $
    32,214
    
    
    $
    (15,536
    )
    
    $
    164
    
    
    $
    23,988Issuance of preferred stock
    
    
    499
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    499Cash dividend on Preferred shares
    
    
    
    
    
    
    
    
    
    
    (136
    )
    
    
    
    
    
    
    (136
    )SFAS 123R expensing of options
    
    
    
    
    
    
    28
    
    
    
    
    
    
    
    
    
    
    
    28Net income (loss)
    
    
    
    
    
    
    
    
    
    
    (8,688
    )
    
    
    
    
    
    
    (8,688
    )Change in unrealized gain/loss
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    64
    
    
    
    64Ending balance, March 31, 2010
    
    $
    7,645
    
    
    $
    32,242
    
    
    $
    (24,360
    )
    
    $
    228
    
    
    $
    15,755
   Preferred Stock Issuance
  23




---



##### Table of Contents



Net Interest Income
  24




---



##### Table of Contents



Three Months EndedMarch 31, 2010 vs. 2009Increase (Decrease)Due to Changes InVolumeTotal
    
    
    and Both
    
    
    Rate(In thousands)Earning Assets  Interest Income:Loans
    
    $
    (391
    )
    
    $
    (242
    )
    
    $
    (149
    )Securities, including trading
    
    
    (539
    )
    
    
    (224
    )
    
    
    (315
    )Federal funds sold
    
    
    16
    
    
    
    16
    
    
    
    Total
    
    
    (914
    )
    
    
    (450
    )
    
    
    (464
    )Deposits and Borrowed
Funds  Interest Expense:NOW and money market accounts
    
    
    (18
    )
    
    
    7
    
    
    
    (25
    )Savings deposits
    
    
    (3
    )
    
    
    (1
    )
    
    
    (2
    )Time deposits
    
    
    (388
    )
    
    
    320
    
    
    
    (708
    )FHLB advances and repurchase agreements
    
    
    (387
    )
    
    
    (401
    )
    
    
    14Subordinated debentures
    
    
    9
    
    
    
    (245
    )
    
    
    254Total
    
    
    (787
    )
    
    
    (320
    )
    
    
    (467
    )Net Interest Income
    
    $
    (127
    )
    
    $
    (130
    )
    
    $
    3
   25




---



##### Table of Contents



Average Balance Sheet
  Three Months Ended March 31,2010
    
    
    2009Average
    
    
    
    
    
    
    
    
    
    
    AverageInterest
    
    
    Rate
    
    
    
    
    
    
    Interest
    
    
    RateAverage
    
    
    Income/
    
    
    Earned/
    
    
    Average
    
    
    Income/
    
    
    Earned/Balance
    
    
    Expense
    
    
    Paid
    
    
    Balance
    
    
    Expense
    
    
    Paid(In thousands)AssetsLoans
    
    $
    405,686
    
    
    
    5,869
    
    
    
    5.87
    %
    
    $
    422,274
    
    
    $
    6,260
    
    
    
    6.01
    %Securities
    
    
    65,132
    
    
    
    513
    
    
    
    3.15
    %
    
    
    93,430
    
    
    
    1,052
    
    
    
    4.50
    %Federal funds sold
    
    
    26,024
    
    
    
    22
    
    
    
    0.34
    %
    
    
    7,023
    
    
    
    6
    
    
    
    0.35
    %Total
Earning Assets / Total Interest Income / Average Yield
    
    
    496,842
    
    
    
    6,404
    
    
    
    5.22
    %
    
    
    522,727
    
    
    
    7,318
    
    
    
    5.67
    %Cash and due from banks
    
    
    37,767
    
    
    
    
    
    
    
    
    
    
    
    11,845All other assets
    
    
    26,250
    
    
    
    
    
    
    
    
    
    
    
    25,803Total Assets
    
    $
    560,859
    
    
    
    
    
    
    
    
    
    
    $
    560,375Liabilities & Stockholders EquityNOW and money market accounts
    
    $
    42,211
    
    
    
    66
    
    
    
    0.63
    %
    
    $
    37,977
    
    
    
    84
    
    
    
    0.90
    %Savings deposits
    
    
    9,095
    
    
    
    14
    
    
    
    0.62
    %
    
    
    9,544
    
    
    
    17
    
    
    
    0.72
    %Time deposits
    
    
    320,191
    
    
    
    2,264
    
    
    
    2.87
    %
    
    
    275,309
    
    
    
    2,652
    
    
    
    3.91
    %FHLB advances and repurchase agreements
    
    
    104,859
    
    
    
    1,068
    
    
    
    4.13
    %
    
    
    144,150
    
    
    
    1,455
    
    
    
    4.09
    %ESOP Loan
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    0
    
    
    
    0
    
    
    
    0.00
    %Subordinated debentures
    
    
    8,360
    
    
    
    311
    
    
    
    15.09
    %
    
    
    12,317
    
    
    
    302
    
    
    
    9.80
    %Total
Interest Bearing Liabilities/ Total Interest Expense / Average Interest Rate Spread
    
    
    484,716
    
    
    
    3,723
    
    
    
    3.11
    %
    
    
    479,297
    
    
    
    4,510
    
    
    
    3.82
    %Noninterest bearing deposits
    
    
    49,230
    
    
    
    
    
    
    
    
    
    
    
    42,641All other liabilities
    
    
    3,288
    
    
    
    
    
    
    
    
    
    
    
    3,454Stockholders equity
    
    
    23,625
    
    
    
    
    
    
    
    
    
    
    
    34,983Total Liabilities & Equity
    
    $
    560,859
    
    
    
    
    
    
    
    
    
    
    $
    560,375Net Interest Income
    
    
    
    
    
    $
    2,681
    
    
    
    
    
    
    
    
    
    
    $
    2,808Net interest rate spread
    
    
    
    
    
    
    
    
    
    
    2.11
    %
    
    
    
    
    
    
    
    
    
    
    1.85
    %Net Interest Margin (Net Interest Income / Total Earning Assets)
    
    
    
    
    
    
    
    
    
    
    2.18
    %
    
    
    
    
    
    
    
    
    
    
    2.17
    %Net Interest Margin
(fully taxable equivalent)
    
    
    
    
    
    
    
    
    
    
    2.19
    %
    
    
    
    
    
    
    
    
    
    
    2.21
    %
 26




---



##### Table of Contents



Provision for Loan Losses
  Noninterest Income
  Noninterest Expense
  Provision for Income Taxes
  27




---



##### Table of Contents



Asset/Liability Management
     28




---



##### 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
    
    $
    60,977
    
    
    $
    
    
    
    $
    
    
    
    $
    
    
    
    $
    60,977Securities, at amortized cost
    
    
    3,498
    
    
    
    13,847
    
    
    
    27,535
    
    
    
    7,963
    
    
    
    52,843FHLB stock
    
    
    
    
    
    
    5,877
    
    
    
    
    
    
    
    
    
    
    
    5,877Loans (including held for sale)
    
    
    114,913
    
    
    
    69,433
    
    
    
    189,310
    
    
    
    30,489
    
    
    
    404,145Total
    
    
    179,388
    
    
    
    89,157
    
    
    
    216,845
    
    
    
    38,452
    
    
    $
    523,842Interest bearing liabilitiesNOW and money market accounts
    
    
    18,598
    
    
    
    5,519
    
    
    
    9,348
    
    
    
    1,202
    
    
    
    34,667Savings deposits
    
    
    548
    
    
    
    2,210
    
    
    
    5,779
    
    
    
    
    
    
    
    8,537Jumbo time deposits
    
    
    26,321
    
    
    
    88,531
    
    
    
    111,110
    
    
    
    
    
    
    
    225,962Time deposits < $100,000
    
    
    5,864
    
    
    
    34,564
    
    
    
    56,056
    
    
    
    
    
    
    
    96,484Repurchase agreements
    
    
    17,407
    
    
    
    
    
    
    
    19,000
    
    
    
    
    
    
    
    36,407FHLB
    
    
    4,000
    
    
    
    28,000
    
    
    
    7,500
    
    
    
    26,200
    
    
    
    65,700Subordinated debentures
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    18,557
    
    
    
    18,557Total
    
    
    72,738
    
    
    
    158,824
    
    
    
    208,793
    
    
    
    45,959
    
    
    $
    486,314Rate sensitivity gap
    
    $
    106,650
    
    
    $
    (69,667
    )
    
    $
    8,052
    
    
    $
    (7,507
    )Cumulative rate sensitivity gap
    
    
    
    
    
    $
    36,983
    
    
    $
    45,035
    
    
    $
    37,528Rate sensitivity gap ratio
    
    
    2.47x
    
    
    
    0.55x
    
    
    
    1.01x
    
    
    
    .84xCumulative rate
sensitivity gap ratio
    
    
    
    
    
    
    1.15x
    
    
    
    1.08x
    
    
    
    1.06x
  29




---



##### Table of Contents



Percentage ChangeInterest Rate Scenario
    
    In Net Interest IncomeInterest rates up 300 basis points
    
    
    0.4
    %Interest rates up 200 basis points
    
    
    1.2
    %Interest rates up 100 basis points
    
    
    0.9
    %Base Case
    
    
    Interest rates down 100 basis points
    
    
    -3.4
    %Interest rates down 200 basis points
    
    
    -9.5
    %Interest rates down 300 basis points
    
    
    -20.0
    %
 
 Item 3. Quantitative and Qualitative Disclosures About Market Risk
  
 Item 4T. Controls and Procedures
    30




---



##### Table of Contents



PART II
 
 Item 1. Legal Proceedings
  
 Item 1A. Risk Factors
 See Item 1A. Risk Factors in our Form 10-K for a discussion of certain risks inherent in our
business. In addition, the following risk factors should also be considered.
 We are subject to additional requirements and restrictions on our operations as a result of the
Banks undercapitalized status.
   We have deferred payment of interest on our subordinated debentures in connection with the issuance
of our trust preferred securities and suspended dividend payments on our Series A and Series B
preferred 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.
  31




---



##### 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) 32




---



##### 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 Report on Form 8-K filed on September 19, 2007 (SEC File
No. 000-33373).4.1
    
    Specimen 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)4.3
    
    Certificate of Designation of Community Central Bank Corporation filed on October 2, 2009
with the State of Michigan designating the
preferences, limitations, voting powers and relative rights of the
Series B Preferred Stock, is incorporated by reference to Exhibit 4.1 of
the Corporations Current Report on Form 8-K filed on October 5, 2009.
(SEC File No. 000-33373)4.4
    
    Form of Warrant Agreement issued in connection with the sale of the Corporation Series B
Preferred Stock, is incorporated by reference to Exhibit 4.4 of the
Corporations Quarterly
Report on Form 10-Q for the quarter ended September 30, 2009 (SEC File No.
000-33373).4.5
    
    Certificate of Designation of Community Central Bank Corporation filed on January 15, 2010
with the State of Michigan designating the
preferences, limitations, voting powers and relative rights of the
Series C Preferred Stock, is incorporated by reference to Exhibit 4.1 of
the Corporations Current Report on Form 8-K filed on October 5, 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).
 33




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##### Table of Contents



EXHIBITNUMBER
    
    EXHIBIT DESCRIPTION11
    
    Computation of Per Share Earnings31.1
    
    Rule 13a  14(a) Certification (Chief Executive Officer)31.2
    
    Rule 13a  14(a) Certification (Chief Financial Officer)32
    
    Rule 1350 Certifications
 34