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

Commission File No. 000-33373

COMMUNITY CENTRAL BANK CORPORATION

(Exact name of small business issuer as specified in its charter)

Michigan		38-3291744
(State or other jurisdiction of incorporation or organization)		(IRS Employer Identification No.)

(Address of principal executive offices and zip code)

(586) 783-4500

Indicate by check mark whether the registrant (1) filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes þ            No o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes o No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer o		Accelerated filer o		Non-accelerated filer o (Do not check if a smaller reporting company)		Smaller reporting company þ

Indicated by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes o No þ

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date:

Class		Outstanding at August 13, 2010
Common Stock		3,739,881 Shares

 

 

COMMUNITY CENTRAL BANK CORPORATION
FORM 10-Q (continued)

PART I

Item 1. Financial Statements

Consolidated Balance Sheet

		June 30,				December 31,
		2010				2009
		(Unaudited)
		(In thousands)
Assets
Cash and due from banks		$	61,852			$	33,115
Federal funds sold			133				1,048
Cash and Cash Equivalents			61,985				34,163
Securities available for sale, at fair value			43,647				65,903
Securities held to maturity, at amortized cost			3,293				3,467
FHLB stock			5,877				5,877
Residential mortgage loans held for sale			8,474				3,497
Loans
Commercial real estate			269,882				273,578
Commercial and industrial			47,652				48,782
Residential real estate			48,288				51,101
Home equity lines of credit			21,370				21,889
Consumer loans			6,540				6,961
Credit card loans			888				856
Total Loans			394,620				403,167
Allowance for credit losses			(16,310	)			(12,957	)
Net Loans			378,310				390,210
Net property and equipment			8,834				9,106
Accrued interest receivable			1,841				1,878
Other real estate			8,337				9,300
Goodwill			638				638
Intangible assets, net of amortization			46				57
Cash surrender value of Bank Owned Life Insurance			11,451				11,285
Other assets			7,572				8,465
Total Assets		$	540,305			$	543,846

(continued)

COMMUNITY CENTRAL BANK CORPORATION
FORM 10-Q (continued)

Consolidated Balance Sheet

		June 30,				December 31,
		2010				2009
		(Unaudited)
		(In thousands)
Liabilities
Deposits
Noninterest bearing demand deposits		$	62,569			$	45,716
NOW and money market accounts			40,844				41,872
Savings deposits			9,545				8,800
Time deposits			315,856				304,743
Total Deposits			428,814				401,131
Repurchase agreements			34,958				41,106
Federal Home Loan Bank advances			53,341				65,700
Accrued interest payable			780				618
Other liabilities			3,309				2,937
Subordinated debentures at fair value option			1,834				8,366
Total Liabilities			523,036				519,858
Stockholders’ Equity
Preferred stock (1,000,000 $1,000 par value shares authorized; 7,775 shares and 7,265 shares issued and outstanding at June 30, 2010 and December 31, 2009, respectively)			7,645				7,146
Common stock (No par value; 9,000,000 shares authorized; 3,739,881 and 3,737,181 issued and outstanding at June 30, 2010 and December 31, 2009, respectively)			32,274				32,214
Retained deficit			(23,154	)			(15,536	)
Accumulated other comprehensive gain			504				164
Total Stockholders’ Equity			17,269				23,988
Total Liabilities and Stockholders’ Equity		$	540,305			$	543,846

COMMUNITY CENTRAL BANK CORPORATION
FORM 10-Q (continued)

Consolidated Statements of Income
(Unaudited)

		Three Months Ended								Six Months Ended
		June 30,								June 30,
		2010				2009				2010				2009
		(In thousands, except per share data)
Interest Income
Loans (including fees)		$	5,988			$	6,653			$	11,857			$	12,913
Taxable securities			414				721				912				1,659
Tax exempt securities			38				84				53				198
Federal funds sold			34				7				56				13
Total Interest Income			6,474				7,465				12,878				14,783
Interest Expense
NOW and money market accounts			64				66				130				151
Savings deposits			12				13				25				30
Time deposits			2,227				2,524				4,491				5,175
Repurchase agreements and fed funds purchased			288				315				584				632
Federal Home Loan Bank advances			664				1,133				1,436				2,271
Subordinated debentures			311				311				623				613
Total interest expense			3,566				4,362				7,289				8,872
Net Interest Income			2,908				3,103				5,589				5,911
Provision for Credit Losses			4,000				2,700				12,200				5,250
Net Interest Income (Loss) after Provision for Credit Losses			(1,092	)			403				(6,611	)			661
Noninterest Income
Fiduciary income			65				82				131				165
Deposit service charges			100				95				191				190
Net realized security gain			131				228				209				356
Change in fair value of assets/liabilities carried at fair value			6,031				838				6,532				1,070
Mortgage banking income			741				1,290				1,445				1,761
Other income			370				259				748				464
Total noninterest income			7,438				2,792				9,256				4,006
Noninterest Expense
Salaries, benefits and payroll taxes			2,270				2,249				4,504				4,181
Net occupancy expense			434				417				892				880
Other operating expense			2,362				1,790				4,657				3,269
Total noninterest expense			5,066				4,456				10,053				8,330
Income (Loss) Before Taxes			1,280				(1,261	)			(7,408	)			(3,663	)
Provision for Income Tax (Benefit) Expense			—				(459	)			—				(1,317	)
Net income (loss)		$	1,280			$	(802	)		$	(7,408	)		$	(2,346	)
Dividends declared / accumulated on preferred shares			64				106				200				156
Net income (loss) available on common shares		$	1,216			$	(908	)		$	(7,608	)		$	(2,502	)
Per share data:
Basic earnings (loss)		$	0.33			$	(0.24	)		$	(2.04	)		$	(0.67	)
Diluted earnings (loss)		$	0.33			$	(0.24	)		$	(2.04	)		$	(0.67	)
Cash dividends		$	—			$	—			$	—			$	—

COMMUNITY CENTRAL BANK CORPORATION
FORM 10-Q (continued)

Consolidated Statements of Comprehensive Income
(Unaudited)

		Three Months Ended								Six Months Ended
		June 30,								June 30,
		2010				2009				2010				2009
		(In thousands)								(In thousands)
Net Income (Loss) as Reported		$	1,280				($802	)			($7,408	)			($2,346	)
Other Comprehensive Income
Change in unrealized net gain (loss) on securities available for sale			276				(132	)			340				59
Comprehensive Income (Loss)		$	1,556				($934	)			($7,068	)			($2,287	)

COMMUNITY CENTRAL BANK CORPORATION
FORM 10-Q (continued)

Consolidated Statements of Cash Flow
(Unaudited)

		Six Months Ended June 30,
		2010				2009
		(In thousands)
Operating Activities
Net loss			($7,408	)			($2,346	)
Adjustments to reconcile net loss to net cash flow from operating activities:
Net amortization of security premium			403				166
Net gain on available for sale securities			(209	)			(356	)
Net gain on instruments at fair value			(6,532	)			(1,070	)
Provision for credit losses			12,200				5,250
Depreciation expense			352				323
Deferred income tax benefit			—				(1,317	)
Stock based compensation			47				40
Decrease in accrued interest receivable			37				454
Decrease in other assets			1,982				2,596
Increase (decrease) in accrued interest payable			162				(365	)
Increase (decrease) in other liabilities			372				(435	)
Increase in loans sold held for sale			(4,977	)			(6,208	)
(Increase) decrease in other real estate			963				(1,983	)
Net Cash Used in Operating Activities			(2,608	)			(5,251	)
Investing Activities
Sales, maturities, calls and prepayments of securities available for sale			36,983				69,638
Purchases of securities available for sale			(15,879	)			(56,386	)
Maturities, calls, sales and prepayments of trading securities			—				24,700
Transfer and purchase of trading securities			—				(7,237	)
Maturities, calls, and prepayments of held to maturity securities			164				143
Purchases of held to maturity securities			—				(2,088	)
Increase in loans			(301	)			(7,693	)
Purchases of property and equipment			(80	)			(55	)
Net Cash Provided by Investing Activities			20,887				21,022
Financing Activities
Net increase in demand and savings deposits			16,570				13,836
Net increase (decrease) in time deposits			11,114				(1,659	)
Net (decrease) increase in short term borrowings			(6,148	)			1,026
FHLB advance repayments			(12,359	)			(10,500	)
Stock awards			3				—
Preferred Stock Issuance			499				500
Preferred Stock dividend paid			(136	)			(156	)
Net Cash Provided by Financing Activities			9,543				3,047
Increase in Cash and Cash Equivalents			27,822				18,818
Cash and Cash Equivalents at the Beginning of the Period			34,163				16,162
Cash and Cash Equivalents at the End of the Period		$	61,985			$	34,980
Supplemental Disclosure of Cash Flow Information
Interest paid		$	7,127			$	9,237
Loans transferred to other real estate owned		$	1,498			$	2,650

COMMUNITY CENTRAL BANK CORPORATION
FORM 10-Q (continued)

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 June 30, 2010 and December 31, 2009, and Consolidated Statements of Income and Comprehensive Income for the six month periods ended June 30, 2010 and 2009, and Consolidated Statements of Cash Flow for the six months ended June 30, 2010 and 2009. 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, 2009.

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.

Critical Accounting Policies:

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.

Fair Value Option for Financial Assets and Financial Liabilities: Under ASC 825, Financial Instruments, an entity is permitted 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. As a result of the Corporation’s adoptions, certain financial instruments were valued at fair value using the fair value option. The Corporation adopted ASC 820, Fair Value Measurements and Disclosures.

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.

Income Taxes: Income tax expense is the sum of the current year income tax due or refundable and the change in deferred tax assets and liabilities. Deferred tax assets and liabilities are the expected future tax consequences of temporary differences between the carrying amounts and tax bases of assets and liabilities, computed using enacted tax rates. A valuation allowance, if needed, reduces deferred tax assets to the amount expected to be realized.

We recognize a tax position as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. We recognize interest and/or penalties related to income tax matters in income tax expense.

COMMUNITY CENTRAL BANK CORPORATION
FORM 10-Q (continued)

The realization of deferred tax assets (net of a recorded valuation allowance) is largely dependent upon future taxable income, future reversals of existing taxable temporary differences and the ability to carry back losses to available tax years. In assessing the need for a valuation allowance, we consider all positive and negative evidence, including taxable income in carry back years, scheduled reversals of deferred tax liabilities, expected future taxable income and tax planning strategies.

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. 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

Under ASC 820, Fair Value Measurements, the Corporation groups assets and liabilities at fair value in three levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value. These levels are:

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.

Management has elected the fair value option for the following reasons for each of the eligible items or group of similar eligible items.

Investment Securities:

In the first quarter of 2009, the Corporation elected to sell substantially all of the investment securities recorded as trading securities, and to unwind the hedging interest rate swap position with the counterparty which resulted in realizing a combined net loss of $400,000 in 2009. This was based on management’s determination that the combination of the securities and interest rate swap would no longer provide a benefit to the Corporation in the current historically low interest rate environment. The Corporation had held the securities and interest rate swap for an extended amount of time under ASC 825, Financial Instruments, the Fair Value Option.

Subordinated Debentures:

Management elected the fair value option for its subordinated debenture. Management considers the subordinated debenture a critical component for future growth and wished to utilize interest rate swaps at that point in time to hedge the risk of this longer term liability. Management elected the fair value option accounting treatment for interest rate swaps because it was less complex than alternative methods and therefore suitable for a community bank with limited resources. Management has elected the fair value option on the subordinated debenture which was issued on February 13, 2007 for $18.6 million. Additionally, an interest rate swap for a like kind notional value was secured, in part, to reduce any volatility associated with the recognition of the fair value option under ASC 825, Financial Instruments, the Fair Value Option. Under the interest rate swap, the Corporation has agreed to receive a fixed rate of 6.71% and pay Libor plus 170

COMMUNITY CENTRAL BANK CORPORATION
FORM 10-Q (continued)

basis points. The debenture carries an interest rate fixed for 10 years at 6.71%, and was originally based on a ten year treasury interest rate swap of 5.06%, plus 165 basis points and was, prior to the settlement of the interest rate swap, hedging market fluctuations. In the first quarter of 2009, the Corporation elected to unwind the interest rate swap position with the counterparty which resulted in realizing $3.3 million, which represented substantially all of the unrealized gains which had been recorded as noninterest income, under the fair value option through December 31, 2008. This was based on management’s determination that the interest rate swap would no longer provide a benefit to the Corporation. Management has the intent to utilize the fair value option on selected financial assets and liabilities on a go forward basis.

The valuations of the instruments measured under ASC 820, Fair Value Measurements, for 2007 were measured under a market approach using matrix pricing for investment securities and the income approach using observable data for the liabilities reported under ASC 825, Financial Instruments, Fair Value Option. The inputs were observable for the asset and liability yields on commonly quoted intervals based on similar assets and liabilities for level 2 instruments. Community Central Bank Corporation does not have a credit rating through any major credit research credit rating facility. The trust preferred market from which a basis for pricing on the subordinated debenture is arrived at is reflective of changes in the commercial banking environment. The determination of fair value of the subordinated debenture is considered by management to be reflective of the current assessments as to the market for fixed rate trust preferred and subordinated debentures of similar duration and characteristics. During several quarterly periods, the trust preferred market reflected only a small base of participants in the market place. The disarray in the credit markets contributed to the lack of market transactions in this financial instrument. Under ASC 820, Fair Value Measurements and Disclosures, management evaluated factors to determine whether there has been a significant decrease in volume of activity for the liability compared to normal market activity. Based on the factors observable to management contained in ASC 820, Fair Value Measurements and Disclosures, management concluded that quoted prices may not be determinative of fair value. Management also evaluated the circumstances to determine whether the issuance of subordinated debentures and trust preferred securities was orderly based on the weight of evidence available. Based on the factors contained in ASC 820, Fair Value Measurements and Disclosures, management concluded the market for bank subordinated debentures and trust preferred securities was not orderly. Management has used all observable data available, including the market data for subordinated debentures and trust preferred securities traded as assets, to obtain additional observable information. The inputs and valuation techniques used by management to determine fair value included pricing models for like type financial instruments priced to a yield to maturity of that instrument. Management uses market surveys for like type instruments in aiding the valuation process. Management also considers market data for the issuance of subordinated debentures in evaluating the appropriate fair value of the instrument. Multiple inputs are used in the valuation process including assumptions on credit spreads, projected yield curves and other modeling techniques used in pricing financial instruments to determine the fair value after incorporating all known factors and adjustments which may be significant. A determination was made, based upon the significance of unobservable parameters as of June 30, 2010 to the overall fair value measurement, to continue to report the subordinated debentures under level 3 significant unobservable inputs. In addition to the unobservable components, or level 3 components, observable components that can be validated to external sources are part of the validation methodology. The net change in fair value associated with all instruments recorded under ASC 825, Financial Instruments, Fair Value Option, totaled $6.5 million for the first six months of 2010, versus $1.1 million for the first six months of 2009. The signifant increase was primarily related to larger gains recorded in the fair market value of the subordinated debenture connected with the issuance of trust preferred securities. Significantly affecting the valuation of the debenture was the worsening financial condition of the Bank and the suspension and deferral of interest payments by the Corporation, which was announced on May 14, 2010. The fair value was based in part on the relative market value ascribed to debt and trust preferred instruments traded within the same geographic area as assets in the marketplace and with financial institutions of similar financial condition. The use of a discounted cash flow analysis was integral in the determination of the fair value of this instrument. An assumption used in the discounted cash flow analysis, in addition to those described above, was the forecasted deferral of interest payments by the Corporation on its subordinated debenture.

Changes in market credit spreads for this instrument impact the relative fair value of this financial liability. Changes in credit spreads are not easily predictable and may cause adverse changes in the fair value of this instrument and a possible loss of income in the future.

COMMUNITY CENTRAL BANK CORPORATION
FORM 10-Q (continued)

Securities Available for Sale, at Fair Value:

The fair values of securities available for sale are determined by matrix pricing, which is a mathematical technique widely used in the industry to value debt securities without relying exclusively on quoted prices for the specific securities but rather by relying on the securities’ relationship to other benchmark quoted securities (level 2 inputs).

The following table presents the fair value measurement at June 30, 2010 using the identified valuations and the changes in fair value for the six month period ended June 30, 2010, and June 30, 2009.

														Changes in fair value for
														six months ended June 30,
														2010 measured at fair
						Fair Value Measurement at								value pursuant to election
						June 30, 2010								of the fair value option
						Significant Other				Significant
		Fair Value				Observable				Unobservable
		Measurements				Inputs				Inputs				Other Gains or Losses in
Description		06/30/10				(Level 2)				(Level 3)				pretax income
		(In thousands)
Securities available for sale
U.S. government agencies		$	1,118			$	1,118			$	—			$	—
U.S. agency mortgage backed securities			27,151				27,151				—				—
U.S. agency collateralized mortgage obligations			11,524				11,524				—				—
Municipal securities			3,101				3,101				—				—
Mutual fund and trust preferred securities			753				753				—				—
Subordinated debentures			1,834				—				1,834				6,532
															6,532

COMMUNITY CENTRAL BANK CORPORATION
FORM 10-Q (continued)

														Changes in fair value for
														six months ended June 30,
														2009 measured at fair
						Fair Value Measurement at								value pursuant to election
						June 30, 2009								of the fair value option
						Significant Other				Significant
		Fair Value				Observable				Unobservable
		Measurements				Inputs				Inputs				Other Gains or Losses in
Description		06/30/10				(Level 2)				(Level 3)				pretax income
		(In thousands)
Assets
Trading securities		$	—			$	—			$	—			$	(150	)
Securities available for sale
U.S. agency mortgage backed securities			29,913				29,913				—				—
U.S. agency collateralized mortgage obligations			26,126				26,126				—				—
Municipal securities			6,780				6,780				—				—
Mutual fund and trust preferred securities			684				684				—				—
Interest rate swap hedging securities			—				—				—				(75	)
Liabilities
Subordinated debentures			11,115				—				11,115				1,620
Interest rate swap hedging subordinated debentures			—				—				—				(325	)
														$	1,070

Interest income and interest expense of the respective financial instruments have been recorded in the consolidated statements of income based on the category of financial instrument.

Changes in level 3 recurring fair value measurements

The table below includes a rollforward of the balance sheet amounts for the three and six month period ended June 30, 2010 and the three and six month period ended June 30, 2009 (including the change in fair value), for financial instruments classified by the Corporation within level 3 of the valuation hierarchy. When a determination is made to classify a financial instrument within level 3, the determination is based upon the significance of the unobservable parameters to the overall fair value measurement. However, level 3 financial instruments typically include, in addition to the unobservable or level 3 components, observable components (that is, components that can be validated to external sources); accordingly, the gains and losses in the table below include changes in fair value due in part to observable factors that are part of the valuation methodology. Also, the Corporation attempts to risk manage the observable components of level 3 financial instruments using derivative positions that are classified within level 2 of the valuation hierarchy; as these level 2 risk management instruments are not included below, the gains or losses in the table do not reflect the effect of the Corporation’s risk management activities related to such level 3 instruments.

COMMUNITY CENTRAL BANK CORPORATION
FORM 10-Q (continued)

Fair value measurements using significant unobservable inputs
(In thousands)

Changes in unrealized gains and

Total realized /

Purchases,

Transfers

(losses) related to financial

For the three months

Fair Value

unrealized

issuances

in and / or

Fair Value

instruments for the three months

ended June 30, 2010

April 1, 2010

gains / losses

settlements, net

out of Level 3

June 30, 2010

ended held at June 30, 2010

(In thousands)

Subordinated Debentures

$

7,865

$

6,031

$

—

$

—

$

1,834

$

6,031

Changes in unrealized gains and

Total realized /

Purchases,

Transfers

(losses) related to financial

For the six months

Fair Value

unrealized

issuances

in and / or

Fair Value

instruments for the six months

ended June 30, 2010

January 1, 2010

gains / losses

settlements, net

out of Level 3

June 30, 2010

ended held at June 30, 2010

(In thousands)

Subordinated Debentures

$

8,366

$

6,532

$

—

$

—

$

1,834

$

6,532

Changes in unrealized gains and

Total realized /

Purchases,

Transfers

(losses) related to financial

For the three months

Fair Value

unrealized

issuances

in and / or

Fair Value

instruments for the three months

ended June 30, 2009

April 1, 2009

gains / losses

settlements, net

out of Level 3

June 30, 2009

ended held at June 30, 2009

(In thousands)

Subordinated Debentures

$

12,022

$

867

$

—

$

—

$

11,155

$

867

Changes in unrealized gains and

Total realized /

Purchases,

Transfers

(losses) related to financial

For the six months

Fair Value

unrealized

issuances

in and / or

Fair Value

instruments for the six months

ended June 30, 2009

January 1, 2009

gains / losses

settlements, net

out of Level 3

June 30, 2009

ended held at June 30, 2009

(In thousands)

Subordinated Debentures

$

12,757

$

1,602

$

—

$

—

$

11,155

$

1,602

Assets Measured at Fair Value on a Nonrecurring Basis

Residential Mortgages Held for Sale

Residential mortgages held for sale are reported at the lower of cost or fair value. The fair value of the residential mortgages held for sale is based on binding quotes from investors.

Impaired Loans

The Corporation does not record loans at fair value on a recurring basis. However, from time to time, a loan is considered impaired and an allowance for loan losses is established. Loans for which it is probable that payment of interest and principal will not be made in accordance with the contractual terms of the loan agreement are considered impaired. Once a loan is identified as individually impaired, management measures impairment in accordance with ASC 310, Accounting for Creditors for Impairment of a Loan. The fair value of impaired loans is estimated primarily using collateral value. Those

COMMUNITY CENTRAL BANK CORPORATION
FORM 10-Q (continued)

impaired loans not requiring an allowance represent loans for which the fair value of the expected repayments or collateral exceed the recorded investments in such loans. The fair value of the collateral is based on an observable market price, current appraised value and management’s estimates of the value of the collateral and other market conditions. Due to the lack of market transactions, volatility in pricing and other factors, some of which may be unobservable, the Corporation recorded the impaired loans as nonrecurring level 3.

Other Real Estate Owned

Other real estate owned assets are adjusted to fair value, less costs of sale, upon transfer of the loans to foreclosed assets. Subsequently, other real estate owned assets are carried at the lower of carrying value or fair value. Fair value is based upon independent market prices, appraised values of the collateral or management’s estimation of the value of the collateral. The fair value of the collateral is based on an observable market price, a current appraised value, or management’s estimates. Due to the lack of transactions, volatility in pricing and other factors, some of which may be unobservable, the Corporation recorded other real estate owned as nonrecurring level 3.

The following table presents assets measured at fair value on a nonrecurring basis for the three and six month period ended June 30, 2010 and the three and six month period ended June 30, 2009.

						Quoted Prices in
						Active Markets				Significant Other				Significant
						for Identical Assets				Observable Inputs				Unobservable Inputs
Assets:		Fair Value				(Level 1)				(Level 2)				(Level 3)
																		Total Losses for the
																		Three months ended
																		June 30, 2010
June 30, 2010
Impaired loans		$	44,544			$	—			$	—			$	44,544			$	3,310
Other real estate owned		$	8,337			$	—			$	—			$	8,337			$	701
																		Total Losses for the
																		Six months ended
																		June 30, 2010
June 30, 2010
Impaired loans		$	44,544			$	—			$	—			$	44,544			$	8,278
Other real estate owned		$	8,337			$	—			$	—			$	8,337			$	1,102

COMMUNITY CENTRAL BANK CORPORATION
FORM 10-Q (continued)

						Quoted Prices in
						Active Markets				Significant Other				Significant
						for Identical Assets				Observable Inputs				Unobservable Inputs
Assets:		Fair Value				(Level 1)				(Level 2)				(Level 3)
																		Total Losses for the
																		Three months ended
																		June 30, 2009
June 30, 2009
Impaired loans		$	30,283			$	—			$	—			$	30,283			$	1,526
Other real estate owned		$	4,896			$	—			$	—			$	4,896			$	183
																		Total Losses for the
																		Six months ended
																		June 30, 2009
June 30, 2009
Impaired loans		$	30,283			$	—			$	—			$	30,283			$	3,282
Other real estate owned		$	4,896			$	—			$	—			$	4,896			$	436

In accordance with ASC 825, Financial Instruments, the carrying amounts and estimated fair values of financial instruments, at June 30, 2010 and December 31, 2009 are as follows:

		June 30, 2010								December 31, 2009
		Carrying				Estimated				Carrying				Estimated
		Amount				Fair Value				Amount				Fair Value
		(In thousands)
Financial Assets
Cash and cash equivalents		$	60,030			$	60,030			$	34,163			$	34,163
Securities available for sale, at fair value			43,647				43,647				65,903				65,903
Securities held to maturity, at amortized cost			3,293				3,356				3,467				3,469
FHLB stock			5,877				5,877				5,877				5,877
Residential mortgages held for sale			8,474				8,474				3,497				3,497
Loans, net of allowance			378,310				392,927				390,210				402,500
Accrued interest receivable			1,841				1,841				1,878				1,878
Financial Liabilities
Demand and savings deposits			112,958				112,958				96,388				96,388
Time deposits			315,856				322,244				304,743				311,102
Repurchase agreements			34,958				34,958				41,106				41,106
Federal Home Loan Bank advances			53,341				54,850				65,700				66,883
Accrued interest payable			780				780				618				618
Subordinated debentures (a)			1,834				1,834				8,366				8,366

Fair values are based on quoted market prices for similar instruments or estimated using discounted cash flow analysis. The discount rates used are estimated using comparable market rates for similar types of instruments adjusted to be commensurate with the credit risk, overhead costs and optionality of such instruments. Considerable judgment is inherently required to interpret market data to develop the estimates of fair value. Accordingly, the estimates presented above do not necessarily represent amounts that the Corporation could realize in a current market exchange. The following methods and assumptions were used to estimate the fair value of financial instruments:

Cash and cash equivalents: For these short-term instruments, the carrying amount is a reasonable estimate of fair value.

COMMUNITY CENTRAL BANK CORPORATION
FORM 10-Q (continued)

Securities, Federal Home Loan Bank stock: The fair value of the securities portfolio is based on matrix pricing where similar securities are used to interpolate fair value of the subject instruments and as such is considered a level 2 valuation. The carrying value of FHLB stock approximates fair value based on their redemption provisions.

Loans: For variable rate loans with no significant change in credit risk since loan origination, the carrying amount is a reasonable estimate of fair value. For all other loans, including fixed rate loans, the fair value is estimated using a discounted cash flow analysis, using interest rates currently offered on similar loans to borrowers with similar credit ratings and for the same remaining maturities. The resulting value is reduced by an estimate of losses inherent in the portfolio.

Residential mortgages held for sale: The estimated fair value of residential mortgages held for sale is the carrying amount. The duration of the portfolio is typically within two weeks or less and a commitment of sale has already occurred when the loans are funded.

Deposits: The estimated fair value of demand deposits, certain money market deposits, and savings deposits is the amount payable on demand at the reporting date. The fair value of fixed maturity time deposits is estimated using the rates currently offered for deposits of similar remaining maturities.

Federal Home Loan Bank advances: The estimated fair value of Federal Home Loan Bank advances is estimated using rates currently offered for funding sources of similar remaining maturities.

Repurchase agreements: The estimated fair value of short-term borrowings is the carrying amount, since they mature the next day.

Accrued interest: Accrued interest receivable and payable are short-term in nature; therefore, their carrying amount approximates fair value.

Subordinated debentures: Subordinated debentures are carried at fair value under ASC 825, Financial Instruments, the Fair Value Option.

Commitments: The fair value of commitments is estimated using the fees currently charged to enter into similar arrangements, taking into account the remaining terms of the agreements and the present creditworthiness of the counterparties. The majority of commitments to extend credit and letters of credit would result in loans with a market rate of interest if funded. The fair value of these commitments is not material.

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following discussion compares the financial condition of the Corporation and its wholly owned subsidiaries at June 30, 2010 and December 31, 2009 and the results of operations for the three months and six months ended June 30, 2010 and 2009. This discussion should be read in conjunction with the financial statements and statistical data presented elsewhere in this report.

SAFE HARBOR REGARDING FORWARD-LOOKING STATEMENTS

This report contains forward-looking statements that are based on management’s beliefs, assumptions, current expectations, estimates and projections about the financial services industry, the economy, and about the Corporation and the Bank. Words such as anticipates, believes, estimates, expects, forecasts, intends, is likely, plans and projects, and variations of such words and similar expressions are intended to identify such forward-looking statements. These forward-looking statements are intended to be covered by the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions that are difficult to predict with regard to timing, extent, likelihood and degree of occurrence. Actual results and outcomes may materially differ from what may be expressed or forecasted in the forward-looking statements. The Corporation undertakes no obligation to update, amend, or clarify forward looking statements, whether as a result of new information, future events (whether anticipated or unanticipated), or otherwise.

Future factors that could cause actual results to differ materially from the results anticipated or projected include, but are not limited to, the following: the credit risks of lending activities, including changes in the level and trend of loan

COMMUNITY CENTRAL BANK CORPORATION
FORM 10-Q (continued)

delinquencies and write-offs; changes in general economic conditions, either nationally or in our market areas; changes in the levels of general interest rates, deposit interest rates, our net interest margin and funding sources; fluctuations in the demand for loans, the number of unsold homes and other properties and fluctuations in real estate values in our market areas; results of examinations of us by the Federal Deposit Insurance Corporation, Michigan Office of Financial and Insurance Services or other regulatory authorities, including the possibility that any such regulatory authority may, among other things, require us to increase our reserve for loan losses or to write-down assets; our ability to control operating costs and expenses; our ability to successfully integrate any assets, liabilities, customers, systems, and management personnel we have acquired or may in the future acquire into our operations and our ability to realize related revenue synergies and cost savings within expected time frames and any goodwill charges related thereto; our ability to manage loan delinquency rates; our ability to retain key members of our senior management team; costs and effects of litigation, including settlements and judgments; increased competitive pressures among financial services companies; changes in consumer spending, borrowing and savings habits; legislative or regulatory changes that adversely affect our business; adverse changes in the securities markets; inability of key third-party providers to perform their obligations to us; changes in accounting policies and practices, as may be adopted by the financial institution regulatory agencies or the Financial Accounting Standards Board; other economic, competitive, governmental, regulatory, and technological factors affecting our operations, pricing, products and services and other risks detailed in the Corporation’s reports filed with the Securities and Exchange Commission.

EXECUTIVE SUMMARY

Community Central Bank Corporation is the holding company for Community Central Bank (the “Bank”) in Mount Clemens, Michigan. The Bank opened for business in October 1996 and serves businesses and consumers across Macomb, Oakland, St. Clair and Wayne counties with a full range of lending, deposit, trust, wealth management and Internet banking services. The Bank operates four full service facilities in Mount Clemens, Rochester Hills, Grosse Pointe Farms and Grosse Pointe Woods, Michigan. Community Central Mortgage Company, LLC, a subsidiary of the Bank, operates locations servicing the Detroit metropolitan area and central and northwest Indiana. River Place Trust and Community Central Wealth Management are divisions of Community Central Bank. Community Central Insurance Agency, LLC is a wholly owned subsidiary of Community Central Bank. The Corporation’s common shares trade on The NASDAQ Capital Market under the symbol “CCBD.”

Our results of operations depend largely on net interest income. Net interest income is the difference in interest income the Corporation earns on interest-earning assets, which comprise primarily commercial and residential real estate loans and, to a lesser extent, commercial business and consumer loans, and the interest the Corporation pays on our interest-bearing liabilities, which are primarily deposits and borrowings. Management strives to match the repricing characteristics of the interest earning assets and interest bearing liabilities to protect net interest income from changes in market interest rates and changes in the shape of the yield curve.

The results of our operations may also be affected by local and general economic conditions. The largest geographic segment of our customer base is in Macomb County, Michigan. The economic base of the County continues to diversify from the automotive service sector, although the impact of the restructuring of the American automobile companies has a direct impact on southeastern Michigan. A slowdown in the local and statewide economy has produced increased financial strain on segments of the Bank’s customer base. The Bank has experienced increased delinquency levels and losses in its loan portfolio, primarily with commercial real estate, residential developer loans within the commercial real estate loan portfolio, with commercial and industrial loans, and with residential real estate loans. Further downturns in the local economy may affect the demand for, and performance of, commercial loans and related small to medium sized business related products. This could have a significant impact on how the Corporation deploys earning assets. The competitive environment among other financial institutions and financial service providers and the Bank in the Macomb, Oakland, St. Clair and Wayne counties of Michigan may affect the pricing levels of various loan and deposit products. The impact of competitive rates on deposit products may increase the relative cost of funds for the Corporation and thus negatively impact net interest income.

The weakness in the economy continues to affect parts of our loan portfolio requiring a higher provision for loan losses. We recorded a $4.0 million provision for loan losses in the second quarter of 2010 and $12.2 million for the first six months of 2010. The provision is based upon management’s review of the risks inherent in the loan portfolio and the level of our allowance for loan losses. In addition, net charge-offs for the first six months of 2010 totaled $8.8 million, or 4.43% of total average loans on an annualized basis. Total nonaccruing loans and loans past due 90 days or more and still

COMMUNITY CENTRAL BANK CORPORATION
FORM 10-Q (continued)

accruing interest totaled $31.4 million, or 7.95% of total loans at June 30, 2010 compared to $22.9 million, or 5.68% at December 31, 2009. The allowance for loan losses at June 30, 2010 was $16.3 million, or 4.13% of total loans, versus $13.0 million, or 3.21% at December 31, 2009. In addition to the nonaccrual loans stated above, as of June 30, 2010, restructured loans increased to $28.9 million from $20.4 million at December 31, 2009.

We continue to focus on strategies to preserve and increase capital, and emphasize segments of operations that are capital efficient, such as our mortgage banking operations, our branch deposit operations as well as our Trust and Wealth divisions. An ongoing effort to increase our core deposits has translated to a reduction in our cost of funds. During the first six months of 2010, our deposits increased $27.7 million, with organic deposits increasing $58.6 million, as wholesale deposits decreased $30.9 million. We also decreased Federal Home Loan Bank advances $12.4 million during the first six months, replacing them with lower cost core deposit funding. Management is planning on reducing the brokered time deposits and Federal Home Loan Bank advances for the foreseeable future. Management plans to reduce total assets to help increase the capital ratios and thereby increase capital availability for potential future provision expense. The total net interest income of the Corporation will be somewhat negatively affected by the planned decrease in earning assets. The decrease in earning assets should not have a negative effect on net interest margin as the reduction in wholesale funds is a relatively high cost of funds producing relatively compressed interest rate spreads at levels smaller than the current net interest margin.

Quantitative measures established by regulation require the Corporation and the Bank to maintain minimum amounts and ratios of Tier I capital and total capital (as defined in the regulations) to risk-weighted assets. The Corporation and the Bank are also subject to a minimum Tier I leverage ratio expressed as a percentage of quarterly average assets (as defined). The Corporation is further subject to leverage ratios consisting of primary capital and total capital as a percentage of assets at period end. The Corporation and the Bank are subject to regulatory capital requirements administered by federal banking agencies. Capital adequacy guidelines and prompt corrective action regulations involve quantitative measures of assets, liabilities, and certain off-balance sheet items. Capital amounts and classifications are also subject to qualitative judgments about components, risk weightings, and other factors in which the regulators can lower classifications in certain cases. Failure to meet various capital requirements can initiate regulatory action that could have a direct material effect on the financial statements. The prompt corrective action regulations provide five classifications, consisting of well capitalized, adequately capitalized, undercapitalized, significantly undercapitalized, and critically undercapitalized, although these terms are not used to represent the overall financial condition of the Corporation or the Bank. As an undercapitalized Bank, regulatory approval is required to accept or renew brokered deposits. In addition, the Bank is subject to significant restrictions on capital distributions, asset growth, acquisitions, new activities, new branches, and management fees. The Bank submitted a written capital restoration plan with the FDIC on June 14, 2010.

In December 2009 the Corporation raised a total of $4.2 million in capital through the sale of Series B cumulative convertible perpetual preferred stock. The Series B preferred stock can be converted into common stock of the Corporation at any time by the holders, or by the Corporation under certain circumstances, at an initial conversion price of $8.00 per share of common stock, subject to adjustment and certain limitations, as described below. A warrant to purchase shares of the Corporation’s common stock is attached to each share of Series B preferred stock. Each warrant represents the right of the holder to purchase 20 shares of the Corporation’s common stock at a purchase price of $5.00 per common share and is exercisable for ten years. Dividends on the Series B preferred stock are payable quarterly in arrears at a rate of 5.00% per annum, if and when declared by the Corporation’s Board of Directors. Dividends on the Series B preferred shares are cumulative. On or after August 1, 2010, the Series B preferred stock will be subject to mandatory conversion into common stock under certain circumstances, including the Corporation’s stock price trading at or above $10.00 per share, subject to adjustment.

In December 2008 and February 2009, the Corporation raised a total of $3.55 million in capital through the sale of Series A noncumulative convertible perpetual preferred stock. The Series A preferred stock can be converted into common stock of the Corporation at any time by the holders, or by the Corporation under certain circumstances, at an initial conversion price of $10.00 per share of common stock, subject to adjustment and certain limitations as described below. Dividends on the Series A preferred stock are payable quarterly in arrears at a rate of 12.00% per annum, if and when declared by the Corporation’s Board of Directors and are not cumulative. The Series A preferred stock is subject to mandatory conversion into common stock under certain circumstances, including the Corporation’s stock price trading at or above $11.00 per share, subject to adjustment.

COMMUNITY CENTRAL BANK CORPORATION
FORM 10-Q (continued)

Assets

At June 30, 2010, the Corporation’s assets totaled $540.3 million, a decrease of $3.5 million or 0.65% from December 31, 2009. Total cash and cash equivalents at June 30, 2010 were $60.0 million or an increase of $25.9 million from December 31, 2009. Management is planning on using the excess liquidity to pay down upcoming maturies of brokered time deposits. This will have the effect of reducing the total assets of the Bank and Corporation. Management plans to reduce total assets to help increase the capital ratios and thereby preserve capital.

Gross loans totaling $394.6 million decreased $8.5 million for the first six months of 2010. The decrease was primarily comprised of commercial real estate loans and residential mortgage loans, which decreased $3.7 million and $2.8 million respectively. At June 30, 2010, commercial and commercial real estate loans comprised 68.4% of the total loan portfolio, which is consistent with our current and historical small business focus. Lending activities during the second quarter of 2010 were limited to servicing existing customers only as the Corporation is pursuing strategies to reduce earning assets that require higher levels of capital. At June 30, 2010, $32.2 million or 66.7% of the total residential portfolio was comprised of adjustable rate mortgages. Residential mortgage loans which the Corporation holds in portfolio comprise primarily those customers who have other banking products with the bank. The HELOC portfolio totaled $21.4 million at June 30, 2010, a decrease of $519,000 or 2.4% from December 31, 2009. This portfolio product is tied to The Wall Street Journal prime interest rate. These loans are secured by real estate and are currently originated with loan to value ratios (including all prior liens) up to 80% of the appraised value of the real estate. The Corporation has significantly curtailed lending in this segment of the loan portfolio due to the dramatic decline in real estate collateral values in southeastern Michigan and nationwide.

Consumer loans (excluding HELOCs and credit card loans) totaled $6.5 million at June 30, 2010, a decrease of $421,000 from December 31, 2009, as management intentionally sought to reduce the Corporation’s exposure in this portfolio. The largest portion of the consumer loan portfolio is comprised of boat loans. The Corporation’s geographic proximity to Lake St. Clair and the lending experience in this area have contributed to this segment of the portfolio. In 2005, the Corporation offered less competitive interest rates on boat loans to reduce potential credit exposure in this area. The current downturn in the local economy has adversely affected the ability of borrowers to repay the outstanding loans. At June 30, 2010, boat loans comprised approximately $5.1 million, or 78.5%, of the consumer loan portfolio and 1.30% of total loans compared to $5.6 million, or 80.0%, of the consumer portfolio and 1.39% of total loans at December 31, 2009.

Mortgage loans held for sale totaled $8.5 million at June 30, 2010 compared to $3.5 million at December 31, 2009. The mortgage loans were originated by the Bank’s mortgage subsidiary. Loans closed generally remain in loans held for sale for less than 30 days. Loans are normally committed for sale before funding takes place.

Additionally, the Corporation had approximately $160 million in outstanding loans at June 30, 2010, to borrowers in the real estate rental and properties management industries. Approximately 63.5% of all commercial real estate loans are owner occupied.

The major components of the loan portfolio are as follows:

		June 30,				Percentage				December 31,				Percentage				Net				Net
		2010				of total loans				2009				of total loans				Change				Change %
										(In thousands, except percentages)
Loans held for sale:
Residential real estate		$	8,474							$	3,497							$	4,977				142.3	%
Loans held in the portfolio:
Commercial real estate		$	269,882				68.4	%		$	273,578				67.9	%		$	(3,696	)			(1.4	%)
Commercial and industrial			47,652				12.1	%			48,782				12.1	%			(1,130	)			(2.3	%)
Residential real estate			48,288				12.2	%			51,101				12.7	%			(2,813	)			(5.5	%)
Home equity lines			21,370				5.4	%			21,889				5.4	%			(519	)			(2.4	%)
Consumer loans			6,540				1.7	%			6,961				1.7	%			(421	)			(6.0	%)
Credit cards			888				0.2	%			856				0.2	%			32				3.7	%
Total loans		$	394,620				100.0	%		$	403,167				100.0	%		$	(8,547	)			-2.1	%

COMMUNITY CENTRAL BANK CORPORATION
FORM 10-Q (continued)

Securities available for sale totaled $43.6 million at June 30, 2010, a decrease of $22.3 million for the first six months of 2010. The Corporation continues to decrease the size of the investment portfolio in an effort to provide liquidity for upcoming maturities of brokered time deposits and reduce the total asset size of the Bank for capital considerations. Mortgage-backed securities (“MBS”) decreased $8.3 million to $27.2 million at June 30, 2010, as a result of pay downs and sales. The majority of the MBS portfolio comprises Government National Mortgage Association (“GNMA”) securities which carry the full faith and credit of the United States Government. Collateralized mortgage obligations (“CMO”) totaled $11.5 million at June 30, 2010, a decrease of $7.3 million from a total of $18.8 million at December 31, 2009. Municipal securities in portfolio totaled $3.1 million at June 30, 2010, a decrease of $1.3 million from December 31, 2009. The portfolio of municipal bonds was reduced for federal income tax considerations through sales, maturities and calls.

At June 30, 2010, our available for sale securities portfolio had net unrealized gains of $763,000 or 177 basis points of the total portfolio. The Corporation continues to invest in U.S. Government Agency securities, primarily mortgage-backed instruments issued by GNMA, to limit credit risk. The net realized gain from the sale of available for sale securities totaled $209,000 for the first six months of 2010 and was the result of portfolio restructuring activity.

The Corporation has less than one percent of the total investment portfolio in non-agency investments.

The following tables show the amortized cost and estimated fair value of the Corporation’s security portfolios as of the dates indicated:

		June 30, 2010
		Amortized				Unrealized								Fair
		Cost				Gains				Losses				Value
						(In thousands)
Securities Available for Sale
United States Government agencies		$	1,113			$	5			$	—			$	1,118
U.S. agency mortgage backed securities			26,538				613				—				27,151
U.S. agency collateralized mortgage obligations			11,319				205				—				11,524
Municipal securities			3,164				23				(86	)			3,101
Mutual fund and Trust preferred securities			750				8				(5	)			753
Total Securities Available for Sale			42,884				854				(91	)			43,647
Held to Maturity Securities
Municipal securities			460				5				(5	)			460
Trust preferred securities			250				—				—				250
U.S. agency mortgage backed securities			2,583				63				—				2,646
Total Held to Maturity Securities			3,293				68				(5	)			3,356
Total Securities			46,177				922				(96	)			47,003

COMMUNITY CENTRAL BANK CORPORATION
FORM 10-Q (continued)

		December 31, 2009
		Amortized				Unrealized								Fair
		Cost				Gains				Losses				Value
						(In thousands)
Securities Available for Sale
United States Government agencies		$	—			$	—			$	—			$	—
U.S. agency mortgage backed securities			41,847				237				(168.00	)			41,916
U.S. agency collateralized mortgage obligations			18,541				321				(23.00	)			18,839
Municipal securities			4,515				24				(105	)			4,434
Mutual fund and Trust preferred securities			750				—				(36	)			714
Total Securities Available for Sale			65,653				582				(332	)			65,903
Held to Maturity Securities
Municipal securities			560				4				(15	)			549
Trust preferred securities			250				—				—				250
U.S. agency mortgage backed securities			2,657				21				(8	)			2,670
Total Held to Maturity Securities			3,467				25				(23	)			3,469
Total Securities			69,120				607				(355	)			69,372

The following tables show information pertaining to securities with gross unrealized losses at June 30, 2010 and 2009, aggregated by investment category and length of time that the individual security has been in continuous loss position. Unrealized losses on securities have not been recognized into income because the issuers’ bonds are of high credit quality. We have the intent and ability to hold the securities for the foreseeable future and changes in fair value are primarily due to changes in market interest rates.

		June 30, 2010
		Less than 12 Months								Over 12 Months
		Gross								Gross
		Unrealized				Fair				Unrealized				Fair
		Losses				Value				Losses				Value
						(In thousands)
Securities Available for Sale
United States Government agencies		$	—			$	—			$	—			$	—
U.S. agency mortgage backed securities			—				—				—				—
U.S. agency collateralized mortgage obligations			—				—				—				—
Municipal securities			—				—				(55	)			1,003
Mutual fund and trust preferred securities			(31	)			831				(5	)			245
Total Securities Available for Sale		$	(31	)		$	831			$	(60	)		$	1,248

As of June 30, 2010, the unrealized loss on held to maturity securities was $5,000. All held to maturity securities have bee in an unrealized loss position for over twelve months.

COMMUNITY CENTRAL BANK CORPORATION
FORM 10-Q (continued)

		December 31, 2009
		Less than 12 Months								Over 12 Months
		Gross								Gross
		Unrealized				Fair				Unrealized				Fair
		Losses				Value				Losses				Value
						(In thousands)
Securities Available for Sale
United States Government agencies		$	—			$	—			$	—			$	—
U.S. agency mortgage backed securities			(166	)			19,707				(2	)			76
U.S. agency collateralized mortgage obligations			(15	)			3,265				(8	)			662
Municipal securities			(20	)			1,026				(85	)			2,115
Mutual fund and trust preferred securities			(5	)			495				(31	)			219
Total Securities Available for Sale		$	(206	)		$	24,493			$	(126	)		$	3,072

COMMUNITY CENTRAL BANK CORPORATION
FORM 10-Q (continued)

The following table is a summary of our nonperforming loans, restructured loans, other real estate owned and repossessed property.

		June 30,				December 31,
		2010				2009
		(In thousands)
Nonaccrual loans:
Commercial real estate		$	25,635			$	16,020
Commercial and industrial			—				584
Residential real estate			5,135				5,673
Home equity lines			335				219
Consumer loans			230				378
Credit cards			—				—
Total			31,335				22,874
Accruing loans delinquent more than 90 days:
Commercial real estate		$	—			$	—
Commercial and industrial			—				—
Residential real estate			—				—
Home equity lines			—				—
Consumer loans			—				—
Credit cards			35				7
Total			35				7
Total nonperforming loans		$	31,370			$	22,881
Troubled debt restructured loans:
Commercial real estate		$	27,570			$	20,341
Commercial and industrial			83				83
Residential real estate			1,273				—
Total			28,926				20,424
Other real estate owned:
Commercial real estate			7,886				8,881
Residential real estate			450				419
Total			8,336				9,300
Other repossessed assets — boats			490				494
Total nonperforming loans to total loans			7.95	%			5.68	%
Allowance for loan losses to nonperforming loans			52.00	%			56.62	%