UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM 10-Q

þ		QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2009

Commission File No. 000-33373

COMMUNITY CENTRAL BANK CORPORATION

(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.)

100 North Main Street, PO Box 7, Mount Clemens, MI 48046-0007
(Address of principal executive offices and zip code)

(586) 783-4500
(Issuer’s telephone number)

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.

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

 

 

COMMUNITY CENTRAL BANK CORPORATION
FORM 10-Q (continued)

PART I

Item 1. Financial Statements

Consolidated Balance Sheet

		March 31,				December 31,
		2009				2008
		(Unaudited)
		(In thousands)
Assets
Cash and due from banks		$	17,581			$	9,162
Federal funds sold			2,145				7,000
Cash and Cash Equivalents			19,726				16,162
Trading securities at fair value option			1,737				17,463
Securities available for sale, at fair value			69,184				76,552
Securities held to maturity, at amortized cost			1,851				1,515
FHLB stock			5,877				5,877
Residential mortgage loans held for sale			10,873				3,302
Loans
Commercial real estate			291,284				284,811
Commercial and industrial			46,818				38,714
Residential real estate			54,016				54,409
Home equity lines of credit			22,262				21,230
Consumer loans			6,537				7,107
Credit card loans			666				846
Total Loans			421,583				407,117
Allowance for credit losses			(8,322	)			(7,315	)
Net Loans			413,261				399,802
Net property and equipment			9,248				9,361
Accrued interest receivable			2,289				2,479
Other real estate			3,379				2,913
Goodwill			638				638
Intangible assets, net of amortization			74				80
Cash surrender value of Bank Owned Life Insurance			11,047				10,975
Other assets			7,416				9,831
Total Assets		$	556,600			$	556,950

(continued)

COMMUNITY CENTRAL BANK CORPORATION
FORM 10-Q (continued)

Consolidated Balance Sheet

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

COMMUNITY CENTRAL BANK CORPORATION
FORM 10-Q (continued)

Consolidated Statements of Income
(Unaudited)

		Three Months Ended
		March 31,
		2009				2008
		(In thousands, except per share data)
Interest Income
Loans (including fees)		$	6,260			$	6,491
Taxable securities			938				826
Tax exempt securities			114				229
Federal funds sold			6				255
Total Interest Income			7,318				7,801
Interest Expense
NOW and money market accounts			84				294
Savings deposits			17				50
Time deposits			2,652				3,037
Repurchase agreements and fed funds purchased			317				230
Federal Home Loan Bank advances			1,138				1,226
Subordinated debentures			302				291
Total interest expense			4,510				5,128
Net Interest Income			2,808				2,673
Provision for Credit Losses			2,550				2,100
Net Interest Income after Provision for Credit Losses			258				573
Noninterest Income
Fiduciary income			83				108
Deposit service charges			95				132
Net realized security (loss) gain			128				61
Change in fair value of assets/liabilities carried at fair value under SFAS 159			232				2,139
Mortgage banking income			471				450
Other income			205				310
Total noninterest income			1,214				3,200
Noninterest Expense
Salaries, benefits and payroll taxes			1,932				1,832
Net occupancy expense			463				461
Other operating expense			1,479				1,264
Total noninterest expense			3,874				3,557
Income (loss) Before Taxes			(2,402	)			216
Provision for Income Tax (Benefit) Expense			(858	)			(24	)
Net income (loss)		$	(1,544	)		$	240
Dividends declared on preferred shares			50				—
Net income (loss) available on common shares		$	(1,594	)		$	240
Per share data:
Basic earnings (loss)		$	(0.43	)		$	0.06
Diluted earnings (loss)		$	(0.43	)		$	0.06
Cash dividends		$	—			$	0.24

COMMUNITY CENTRAL BANK CORPORATION
FORM 10-Q (continued)

Consolidated Statements of Comprehensive Income
(Unaudited)

		Three Months Ended
		March 31,
		2009				2008
		(In thousands)
Net Income (loss) as Reported			($1,544	)		$	240
Other Comprehensive Income, Net of Tax Change in unrealized net gain on securities available for sale			191				548
Comprehensive Income (loss)			($1,353	)		$	788

COMMUNITY CENTRAL BANK CORPORATION
FORM 10-Q (continued)
Consolidated Statements of Cash Flow
(Unaudited)

		Three Months Ended March 31,
		2009				2008
		(In thousands)
Operating Activities
Net income (loss)			($1,544	)		$	240
Adjustments to reconcile net income to net cash flow from operating activities:
Net amortization of security premium			33				24
Net gain on available for sale securities			(128	)			(61	)
Net gain on instruments at fair value			(232	)			(2,139	)
Provision for credit losses			2,550				2,100
Depreciation expense			163				174
Deferred income tax benefit			(769	)			(32	)
ESOP compensation expense			—				13
SFAS 123R option expense			20				14
Decrease (increase) in accrued interest receivable			190				(63	)
(Increase) decrease in other assets			3,454				(322	)
(Decrease) increase in accrued interest payable			(423	)			279
Increase (decrease) in other liabilities			(1,040	)			550
Loans originated held for sale			—				—
(Increase) decrease in loans sold held for sale			(7,571	)			964
Increase in other real estate			(606	)			(1,524	)
Net Cash (Used in) Provided By Operating Activities			(5,903	)			217
Investing Activities
Sales, maturities, calls and prepayments of securities available for sale			30,931				33,869
Purchases of securities available for sale			(23,397	)			(42,163	)
Maturities, calls, sales and prepayments of trading securities			17,463				2,455
Transfer and purchase of trading securities			(1,737	)			—
Maturities, calls, and prepayments of held to maturity securities			27				5
Purchases of held to maturity securities			(336	)			(1,115	)
Increase in loans			(16,615	)			(3,022	)
Purchases of property and equipment			(50	)			(592	)
Proceeds from sale of property and equipment			—				—
Net Cash Used in Investing Activities			6,286				(10,563	)
Financing Activities
Net (decrease) increase in demand and savings deposits			11,449				5,085
Net (decrease) increase in time deposits			(1,125	)			14,106
Net (decrease) increase in short term borrowings			(2,094	)			(2,753	)
FHLB advances			—				10,000
FHLB advance repayments			(5,500	)			—
Payment of ESOP debt			—				(13	)
Stock options exercised			—				—
Preferred Stock Issuance			500				—
Preferred Stock dividend paid			(49	)			—
Cash dividends paid			—				(225	)
Repurchase of stock			—				(7	)
Net Cash Provided by Financing Activities			3,181				26,193
Increase (decrease) in Cash and Cash Equivalents			3,564				15,847
Cash and Cash Equivalents at the Beginning of the Period			16,162				9,183
Cash and Cash Equivalents at the End of the Period		$	19,726			$	25,030
Supplemental Disclosure of Cash Flow Information
Interest paid		$	4,933			$	4,849
Federal Taxes Paid			—				—
Loans transferred to other real estate owned		$	606			$	1,890

COMMUNITY CENTRAL BANK CORPORATION
FORM 10-Q (continued)
Community Central Bank Corporation

Notes to Consolidated Financial Statements
(unaudited)

1.		The financial statements of Community Central Bank Corporation (the “Corporation”) include the consolidation of its wholly-owned subsidiaries: Community Central Bank (the “Bank”) and Community Central Mortgage Company, LLC (the “Mortgage Company”).
		The Corporation’s Consolidated Balance Sheets are presented as of March 31, 2009 and December 31, 2008, and Consolidated Statements of Income and Comprehensive Income for the three month periods ended March 31, 2009 and 2008, and Consolidated Statements of Cash Flow for the three months ended March 31, 2009 and 2008. These unaudited financial statements are for interim periods and do not include all disclosures normally provided with annual financial statements. The interim statements should be read in conjunction with the financial statements and footnotes contained in the Corporation’s Annual Report on Form 10-K for the fiscal year ended December 31, 2008.
		In the opinion of management, the interim statements referred to above contain all adjustments (consisting of normal, recurring items) necessary for a fair presentation of the financial statements. The results of operations for interim periods are not necessarily indicative of the results to be expected for the full year.
2.		The accounting and reporting policies of the Corporation conform to accounting principles generally accepted in the United States of America and general practices within the banking industry. The following describes the critical accounting policies employed in the preparation of financial statements.
		Allowance for Loan Losses: The allowance for loan losses is maintained at a level considered by management to be adequate to absorb losses inherent in existing loans and loan commitments. The adequacy of the allowance is based on evaluations that take into consideration such factors as prior loss experience, changes in the nature and volume of the portfolio, overall portfolio quality, loan concentrations, specific impaired or problem loans and commitments, current economic conditions that may affect the borrower’s ability to pay and other subjective factors. The determination of the allowance is also based on regulatory guidance. This guidance includes, but is not limited to, generally accepted accounting principles and guidance issued from other regulatory bodies, such as the joint policy statement issued by the Federal Financial Institutions Examination Council.
3.		On February 13, 2007, Community Central Bank Corporation issued $18.0 million aggregate liquidation amount of cumulative trust preferred securities through Community Central Capital Trust II, a statutory trust formed by the Corporation for the purpose of issuing the securities (the “Trust II Securities”). The Trust II securities bear a fixed distribution rate of 6.71% per annum through March 6, 2017, and thereafter will bear a floating distribution rate equal to 90-day LIBOR plus 1.65%. The Trust II Securities are redeemable at the Corporation’s option, in whole or in part, at par beginning March 6, 2017, and if not sooner redeemed mature on March 6, 2037. The Trust II Securities were sold in a private transaction exempt from registration under the Securities Act of 1933, as amended.
4.		In December 2004, the Financial Accounting Standards Board (“FASB”) issued Statement No. 123R “Share-Based Payment” (“SFAS 123R”), a revision to Statement No. 123, “Accounting for Stock-Based Compensation.” This standard requires the Corporation to measure the cost of employee services received in exchange for equity awards, including stock options, based on the grant date fair calculated value of the awards. The Corporation adopted the provisions of SFAS 123R as of January 1, 2006. The standard provides for a modified prospective application. Under this method, the Corporation began recognizing compensation cost for equity based compensation for all new or modified grants after the date of adoption. In addition, the Corporation is recognizing the unvested portion of the grant date fair value of awards issued prior to adoption based on the fair value previously calculated for disclosure purposes. Prior periods have not been restated.

COMMUNITY CENTRAL BANK CORPORATION
FORM 10-Q (continued)

The Corporation did not issue options during the first quarter of 2009 or 2008. The total amount of options outstanding at March 31, 2009 was 303,475 shares at a weighted average exercise price of $7.91 per share. During the first quarter of 2009, no options were exercised. During the first quarter of 2009, the Corporation recognized compensation expense for stock options awarded over the vesting period based on the fair value of the options granted. The fair value of each option grant is estimated on the date of grant using the Black Scholes option pricing model. The expense recorded for the first quarter of 2009 and 2008 are disclosed for comparison below.

		Three Months Ended
		March 31,
		2009				2008
		(In thousands)
Stock-based employee compensation expense, net of related tax effects, included in reported net income		$	20			$	14

5.		In February 2007, the Financial Accounting Standards Board issued Statement of Financial Accounting Standards No. 159 “The Fair Value Option for Financial Assets and Financial Liabilities” (SFAS 159). The statement permitted an entity to immediately elect the fair value option for existing eligible items. While not required to adopt the new standard until 2008, the Corporation elected to adopt it in the first quarter of 2007. The Corporation was also required to simultaneously adopt all the requirements under SFAS 157, Fair Value Measurements. As a result of the Corporation’s adoptions, certain financial instruments were valued at fair value using the fair value option.
		The Corporation utilizes fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. Additionally, from time to time, the Corporation may be required to record at fair value other assets on a nonrecurring basis, such as loans held for sale, loans held for investment and certain other assets. These nonrecurring fair value adjustments typically involve application of lower of cost or market accounting or write-downs of individual assets.

Fair Value Hierarchy

Under SFAS 157, 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.

COMMUNITY CENTRAL BANK CORPORATION
FORM 10-Q (continued)

Investment Securities:

In the first quarter of 2009, the Corporation elected to sell substantially all of the investment securities recorded under SFAS 159 and to unwind the hedging interest rate swap position with the counterparty which resulted in realizing a combined net loss of $178,000 in the first quarter of 2009, which represented substantially all of the unrealized net losses which had been recorded as noninterest income, under SFAS 159 through December 31, 2008. 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 SFAS 159.

Subordinated Debentures:

Management elected the fair value option for its subordinated debenture. Management considers the subordinated debentures 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 SFAS 159 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 SFAS 159. Under the interest rate swap the Corporation has agreed to receive a fixed rate of 6.71% and pay Libor plus 170 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 SFAS 159 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 SFAS 157, “Fair Value Measurement,” for 2007 were measured under a market approach using matrix pricing investment for investment securities and the income approach using observable data for the liabilities reported under SFAS 159, “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 facilities. 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 pricing 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. 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. A determination was made, based upon the significance of unobservable parameters as of March 31, 2009 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 SFAS 159 totaled $232,000 for the first quarter of 2009, versus $2.1 million for the first quarter of 2008. The decrease was primarily related to smaller gains recorded in fair market value of assets and liabilities as measured under Statement of Financial Accounting Standards (SFAS 159) recorded in the first quarter of 2009 compared to the first quarter of 2008. The increases recorded during both quarterly periods have been largely attributable to the fair value of the subordinated debenture connected with the issuance of trust preferred securities. The dramatic widening of market credit spreads for trust preferred securities experienced in the fourth quarter of 2007 increased the relative fair value of this financial liability dramatically. 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)

The table below contains the fair value measurement at March 31, 2009 using the identified valuations. Additionally, the changes in fair value for the three months ended March 31, 2009 for items measured at fair value pursuant to election of the fair value option.

														Changes in fair value for
														three months ended March
														31, 2009 measured at fair
		Fair Value Measurement at												value pursuant to election
		March 31, 2009												of the fair value options
						Significant Other				Significant				Other Gains
		Fair Value				Observable				Unobservable				or Losses in
		Measurements				Inputs				Inputs				noninterest income
Description		3/31/2009				(Level 2)				(Level 3)				pretax income
		(In thousands)
Securities available for sale		$	69,184			$	69,184			$	—			$	—
Trading Securities (a)			1,737				1,737				—				(103	)
Interest rate swap hedging securities (a)			—				—				—				(75	)
Subordinated Debentures			12,022				—				12,022				735
Interest rate swap hedging subordinated (b)															(325	)
debentures			—				—				—				—
														$	232

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

COMMUNITY CENTRAL BANK CORPORATION
FORM 10-Q (continued)

Changes in level 3 recurring fair value measurements

The table below includes a rollforward of the balance sheet amounts for the three months ended March 31, 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 tables do not reflect the effect of the Corporation’s risk management activities related to such level 3 instruments.

Changes in

unrealized gains

and (losses) related

Total realized /

Purchases

Transfers

to financial

For the quarter ended

Fair Value

unrealized

issuances

in and / or

Fair Value

instruments held at

March 31, 2009

January 1, 2009

gains / losses

settlements, net

out of Level 3

March 31, 2009

March 31, 2009

(In thousands)

Subordinated Debentures

$

12,757

$

735

$

—

$

—

$

12,022

$

735

COMMUNITY CENTRAL BANK CORPORATION
FORM 10-Q (continued)

Assets Measured at Fair Value on a Nonrecurring Basis

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 SFAS 114, “Accounting by Creditors for Impairment of a Loan.” The fair value of impaired loans is estimated using primarily collateral value. Those 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 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 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 at March 31, 2009.

						Quoted Prices in
						Active Markets for				Significant Other				Significant				Total Losses for the
		Balance at				Identical Assets				Observable Inputs				Unobservable Inputs				three months ended
Assets		March 31, 2009				(Level 1)				(Level 2)				(Level 3)				March 31, 2009
		(In thousands)
Impaired loans accounted for under FAS 114		$	24,266			$	—			$	—			$	24,266			$	1,756
Other real estate owned		$	3,379			$	—			$	—			$	3,379			$	253

COMMUNITY CENTRAL BANK CORPORATION
FORM 10-Q (continued)

Item 2. Management’s Discussion and Analysis or Plan of Operation

The following discussion compares the financial condition of the Corporation and its wholly owned subsidiaries at March 31, 2009 and December 31, 2008 and the results of operations for the three months ended March 31, 2009 and 2008. 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, projects, 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 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 Global 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.

COMMUNITY CENTRAL BANK CORPORATION
FORM 10-Q (continued)

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 residential developer loans, residential real estate loans, and home equity and consumer loans. Further downturns in the local economy may affect the demand for commercial loans and related small to medium 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, Wayne and St. Clair counties of Michigan may affect the pricing levels of various 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.

We recorded a $2.5 million provision for loan losses in the first quarter of 2009, based upon management’s review of the risks inherent in the loan portfolio and the level of our allowance for loan losses. A significant portion of this provision related to collateral impairment, the result of declining property values reflecting Michigan’s economic conditions. In addition, net charge-offs for the first quarter of 2009 totaled $1.5 million, or 1.50% of total average loans on an annualized basis. Total nonaccruing loans and loans past due 90 days or more and still accruing interest totaled $30.4 million, or 7.21%, of total loans at March 31, 2009 compared to $17.6 million, or 4.32%, at December 31, 2008. The allowance for loan losses at March 31, 2009 was $8.3 million, or 1.97%, versus $7.3 million, or 1.80%, at December 31, 2008. In addition to the nonaccrual loans stated above, as of March 31, 2009, restructured loans within the meaning of SFAS No. 15, “Accounting by Debtors and Creditors for Troubled Debt Restructurings,” increased to $15.4 million from $8.2 million at December 31, 2008.

The Corporation continues to see competitive deposit rates offered from local financial institutions within the geographic proximity of the Bank which could have the effect of increasing the costs of funds to a level higher than management projects. The Corporation continues to utilize wholesale forms of funding earning assets through the FHLB and brokered certificates of deposit to balance both interest rate risk and the overall cost of funds. Brokered and internet certificates of deposit are based on a nationwide interest rate structure, typically at what is considered to be a premium interest rate. The local competition for certificates of deposit products has intensified and the Bank has found this type of wholesale funding to often effectively compete with the rates offered for similar term retail certificates of deposit products of local community and regional banks. The downturn in the economy continues to affect parts of our loan portfolio requiring higher provisions for loan losses. Management continues to emphasize segments of operations that are capital efficient, such as Mortgage Banking operations, Trust, Retirement and Wealth Management services, and branch deposit operations. Although the nonperforming loan level continues to pressure earnings, we continue to proactively deal with loan issues. Our total builder/developer loan portfolio has been reduced to $13.0 million, or 3.1% of the total loan portfolio. In December 2008 and the first quarter of 2009, the Corporation completed an issuance of $3.6 million in new capital through a private preferred offering.

COMMUNITY CENTRAL BANK CORPORATION
FORM 10-Q (continued)

Assets

At March 31, 2009, the Corporation’s total assets totaled $556.6 million, a decrease of $350,000 or 0.1% from December 31, 2008. The largest segment of asset growth for the three months ended March 31, 2009, occurred in the loan portfolio which increased $14.5 million. The increase in the loan portfolio was offset by declines in the investment portfolio.

Loan growth for the quarter was comprised of commercial and commercial real estate loans, which increased $14.5 million. At March 31, 2009, commercial and commercial real estate loans comprised 80.2% of the total loan portfolio, which is consistent with our current and historical commercial loan focus. The growth in the loan portfolio for the first quarter of 2009 was due, in part, to the dislocation of credit worthy businesses from regional banks in our market area as these banks continued to tighten their available credit. Our residential real estate and home equity lines of credit (“HELOC”) portfolios remained relatively unchanged for the quarter ended March 31, 2009, while our consumer and credit card portfolios declined for the first three months as the Corporation avoided this segment of lending. At March 31, 2009, $39.4 million or 73.0% of the total residential portfolio held in portfolio was comprised of adjustable rate mortgages. Residential mortgage loans which the Corporation holds in portfolio comprise primarily banking relationships. The HELOC portfolio totaled $22.2 million at March 31, 2009, an increase of $1.0 million or 4.9% from December 31, 2008. The majority of the increase in the HELOC portfolio related to a small group of new HELOC loans made to high net worth customers. As with our residential mortgage loans, the Corporation has not sought to grow this segment of the portfolio given the declining real estate environment in southeastern Michigan New underwriting guidelines for those HELOC loans carried in the portfolio of the Bank limit loan to values, including prior liens to 85% of appraised value of the real estate and was enacted during the first quarter of 2008. This represents a decrease from the prior loan to value levels of 95%. Our consumer loan portfolio, comprised primarily of boat loans, totaled $6.5 million at March 31, 2009, a decrease of $570,000 from December 31, 2008. The Corporation is continuing to seek to decrease its exposure in the retail based loans as it has experienced an increase delinquencies and repossessions. The credit card portfolio totaled $666,000 at March 31, 2009, a decrease of $180,000 from December 31, 2008. The Corporation continues to book credit card loans as a customer accommodation but is not actively marketing this product.

Additionally, the Corporation had approximately $163.3 million in outstanding loans at March 31, 2009, to borrowers in the real estate rental and properties management industries. Approximately 71% of all commercial real estate loans are owner occupied.

The major components of the loan portfolio are as follows:

		March 31,				Percentage				December 31,				Percentage				Net				Net
		2009				of total loans				2008				of total loans				Change				Change %
										(In thousands, except percentages)
Loans held for sale:
Residential real estate		$	10,873							$	3,302							$	7,571				229.29	%
Loans held in the portfolio:
Commercial real estate		$	291,284				69.1	%		$	284,811				70.0	%		$	6,473				2.27	%
Commercial and industrial			46,818				11.1	%			38,714				9.5	%		$	8,104				20.93	%
Residential real estate			54,016				12.8	%			54,409				13.4	%		$	(393	)			(0.72	%)
Home equity lines			22,262				5.3	%			21,230				5.2	%		$	1,032				4.86	%
Consumer loans			6,537				1.6	%			7,107				1.7	%		$	(570	)			(8.02	%)
Credit cards			666				0.1	%			846				0.2	%		$	(180	)			(21.28	%)
Total loans		$	421,583				100.0	%		$	407,117				100.0	%		$	14,466				3.6	%

Securities available for sale totaled $69.2 million at March 31, 2009, a decrease of $7.4 million for the first three months of 2009. The largest changes in the portfolio occurred in the U.S. Agency notes which decreased $12.0 million to zero at March 31, 2009, as a result of calls and sales. Mortgage-backed securities increased $9.5 million to $36.2 million at March 31, 2009, as a result of purchases of Government National Mortgage Association (“GNMA”) securities which carry the full faith and credit of the United States Government.

COMMUNITY CENTRAL BANK CORPORATION
FORM 10-Q (continued)

Collateralized mortgage obligations (“CMO”) totaled $24.0 million at March 31, 2009, a decrease of $1.7 million from December 31, 2008. This decrease resulted from paydowns received on these securities. Municipal securities in portfolio totaled $8.6 million at March 31, 2009, a decrease of $2.9 million from December 31, 2008. The portfolio of municipal bonds was reduced for federal income tax considerations through sales, maturities and calls.

At March 31, 2009, our available for sale securities portfolio had unrealized losses of $121,000 or 17 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 total net realized gain from the sale of available for sale securities totaled $128,000 for the first quarter of 2009 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 securities portfolio designated as trading totaled $1.7 million as of March 31, 2009. In the first quarter of 2009, the Corporation elected to sell substantially all of the investment securities recorded under SFAS 159 and to unwind the interest rate swap position with the counterparty. These actions resulted in the Corporation realizing a combined net loss of $178,000, which represented substantially all of the unrealized net losses which had been recorded as noninterest income under SFAS 159 through December 31, 2008. This was based on management’s determination that the combination of the securities and interest rate swap no longer provided 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 SFAS 159.

COMMUNITY CENTRAL BANK CORPORATION
FORM 10-Q (continued)

The following table is a summary of our nonperforming loans, restructured loans within the meaning of SFAS No. 15, “Accounting by Debtors and Creditors for Troubled Debt Restructurings,” other real estate owned and repossessed property.

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

Nonperforming loans, consisting of nonaccruing loans and loans past due 90 days or more and still accruing interest totaled $30.4 million, or 7.21% of total loans, at March 31, 2009 compared to $17.6 million, or 4.32% of total loans, at December 31, 2008. In addition to the nonperforming loans stated above, as of March 31, 2009, restructured loans, within the meaning of SFAS No. 15, “Accounting by Debtors and Creditors for Troubled Debt Restructurings,” increased to $15.4 million from $8.2 million at December 31, 2008. Of those loans reported as troubled debt restructured loans, $9.2 million or 60% were contractually current. Troubled Debt Restructured loans which were past due 30 to 89 days totaled $6.2 million. The majority of the increase in nonperforming loans for the first quarter of 2009 related to commercial real estate loans which included an industrial building and an apartment complex.

COMMUNITY CENTRAL BANK CORPORATION
FORM 10-Q (continued)

The following table shows an analysis of the allowance for loan losses:

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

The allowance for loan losses as a percentage of total loans increased to 1.97% at March 31, 2009, compared to 1.80% at December 31, 2008. The Corporation performs a detailed quarterly review of the allowance for loan losses. The Corporation evaluates those loans classified as substandard, under its internal risk rating system, on an individual basis for impairment under SFAS 114. The level and allocation of the allowance is determined primarily on management’s evaluation of collateral value, less the cost of disposal, for loans reviewed in this category. The remainder of the total loan portfolio is segmented into homogeneous loan pools with similar risk characteristics for evaluation under SFAS 5. The primary risk element considered by management regarding each consumer and residential real estate loan is lack of timely payment. Management has a reporting system that monitors past due loans and has adopted policies to pursue its creditor’s rights in order to preserve the Bank’s position. The primary risk elements concerning commercial and industrial loans and commercial real estate loans are the financial condition of the borrower, the sufficiency of collateral, and lack of timely payment. Management has a policy of requesting and reviewing annual financial statements from its commercial loan customers and periodically reviews existence of collateral and its value.

COMMUNITY CENTRAL BANK CORPORATION
FORM 10-Q (continued)

In the Annual Report of Form 10-K for the year ended December 31, 2008, the Corporation disclosed a potential loan loss related to one borrower relationship totaling $2.8 million. This loan relationship was largely unsecured and had potential for loss up to the unsecured portion of $2.4 million. This relationship has since been restructured with additional cash escrows. The majority of this loan remains unsecured as before. The specific allowance assigned to this credit under SFAS 114 was $600,000 at March 31, 2009.

Liabilities

Total deposits of $367.7 million at March 31, 2009, increased $10.3 million, or 2.9%, for the first quarter of 2009. Increases in deposits for the quarter were entirely related to organic growth, as brokered time deposits decreased $10.6 million during the quarter. Noninterest bearing demand accounts totaled $47.8 million at March 31, 2009, an increase of $13.7 million during the quarter, due to the expanded branch base and selected lending activities whereby the Bank required significantly higher levels of deposits in the new relationship. At March 31, 2009, NOW, money market and savings accounts remained relatively unchanged from December 31, 2008. Time deposits below $100,000 increased $4.4 million as a result of the new branch location in Grosse Pointe Woods and our continued emphasis on deposit growth through targeted calling programs and increased community involvement. The Corporation continues to see competitive deposit rates offered by local financial institutions within the geographic proximity of the Bank, which has had the affect of increasing the cost of funds. The Corporation continues to focus on the growth in transactional based deposit accounts which have a much lower interest rate than time deposit products and wholesale forms of funding. The Corporation continues to utilize wholesale forms of funding earning assets through the Federal Home Loan Bank and brokered CDs, but expects to utilize this form of funding to a lesser extent moving forward as it focuses on organic deposit growth.

The major components of deposits are as follows:

						Percentage								Percentage
		March 31,				of total				December 31,				of total				Net				Net
		2009				deposits				2008				deposits				Change				Change %
		(In thousands, except percentages)
Noninterest bearing demand		$	47,837				13.0	%		$	34,169				9.6	%		$	13,668				40.00	%
NOW accounts			11,979				3.3	%			13,670				3.8	%			(1,691	)			(12.37	%)
Money market accounts			24,042				6.5	%			24,484				6.9	%			(442	)			(1.81	%)
Savings deposits			8,499				2.3	%			8,585				2.4	%			(86	)			(1.00	%)
Time deposits under $100,000			48,077				13.1	%			43,685				12.2	%			4,392				10.05	%
Time deposits $100,000 and over			227,266				61.8	%			232,783				65.1	%			(5,517	)			(2.37	%)
Total deposits		$	367,700				100.0	%		$	357,376				100.0	%		$	10,324				2.9	%

COMMUNITY CENTRAL BANK CORPORATION
FORM 10-Q (continued)

Short term borrowings at March 31, 2009, consisted of short term FHLB advances of $37.0 million and securities sold with an agreement to repurchase them the following day of $18.3 million. Following are details of our short term borrowings for the dates indicated:

		March 31,				December 31,
		2009				2008
		(Dollars in thousands)
Amount outstanding at end of period
Short-term repurchase agreements		$	18,300			$	20,394
Short-term FHLB advances		$	37,000			$	25,500
Weighted average interest rate on ending balance
Short-term Repurchase agreements			1.76	%			1.62	%
Short-term FHLB advances			3.89	%			3.50	%
Maximum amount outstanding at any month end during the year
Short-term Repurchase agreements		$	18,300			$	20,394
Short-term FHLB advances		$	37,000			$	25,500
Average amount outstanding during the year
Short-term Repurchase agreements		$	18,589			$	13,589
Short-term FHLB advances		$	31,250			$	17,484
Weighted average interest rate
Short-term Repurchase agreements			1.73	%			1.97	%
Short-term FHLB advances			3.89	%			4.05	%

During the first quarter of 2007, the Corporation borrowed $19 million in a wholesale structured repurchase agreement. The interest rate on this borrowing is tied to the three month Libor rate less 250 basis points and adjusts quarterly until March 3, 2008, when the borrowing changes to a fixed interest rate of 4.95% until March 2, 2017. The repurchase agreement became callable quarterly after March 2, 2008.

In June 2001, the Corporation started to borrow long-term advances from the FHLB to fund fixed rate instruments and to attempt to minimize the interest rate risk associated with certain fixed rate commercial mortgage loans and investment securities. The advances are collateralized by residential and commercial mortgage loans under a specific collateral agreement totaling approximately $217.0 million and $230.6 million at March 31, 2009 and 2008, respectively. Long-term advances comprised advances with maturities from May 2010 to June 2016 with an average duration of approximately 3.8 years.

FHLB advances outstanding at March 31, 2009 were as follows:

		Fair Value				Average rate
		at end of period				at end of period
		(In thousands, except percentages)
Short-term FHLB advances		$	37,000				3.89	%
Long-term FHLB advances		$	65,700				4.70	%
		$	102,700				4.41	%

COMMUNITY CENTRAL BANK CORPORATION
FORM 10-Q (continued)

Liquidity and Capital Resources

The liquidity of a bank allows it to provide funds to meet loan requests, to accommodate possible outflows of deposits, and to take advantage of other investment opportunities. Funding of loan requests providing for liability outflows and managing interest rate margins require continuous analysis to attempt to match the maturities and repricing of specific categories of loans and investments with specific types of deposits and borrowings. Bank liquidity depends upon the mix of the banking institution’s potential sources and uses of funds. The major sources of liquidity for the Bank have been deposit growth, federal funds sold, loans and securities which mature within one year, and sales of residential mortgage loans. Additional liquidity is provided a $150.0 million secured line of credit with the FHLB and unpledged securities. Large deposit balances which might fluctuate in response to interest rate changes are closely monitored. These deposits consist mainly of jumbo time certificates of deposit. We anticipate that we will have sufficient funds available to meet our future commitments. As of March 31, 2009, unused commitments comprised $88.1 million. The Bank has $187.9 million in time deposits coming due within the next twelve months from March 31, 2009, which includes brokered, internet and municipal time deposits. At March 31, 2008, the Bank had $156.8 million in brokered certificates of deposit, of which $102.5 million is due within one year or less. Additionally, at March 31, 2008, municipal time deposits and internet time deposits were $6.0 million and $85,000, respectively. Municipal time deposits typically have maturities less than three months. All of the $85,000 of internet certificates of deposit mature in one year or less.

Following are selected capital ratios for the Corporation and the Bank as of the dates indicated, along with the minimum regulatory capital requirement for each item. Capital requirements for bank holding companies are set by the Federal Reserve Board. In many cases, bank holding companies are expected to operate at capital levels higher than the minimum requirement.

		March 31,								December 31,								Minimum Ratio				Ratio
		2009								2008								for Capital				to be
		Capital				Ratio				Capital				Ratio				Adequacy Purposes				“Well Capitalized”
		(In thousands, except percentages)
Tier I capital to risk-weighted assets
Consolidated		$	43,616				10.20	%		$	45,054				10.41	%			4	%		NA
Bank only			42,088				9.82	%			39,928				9.28	%			4	%			6	%
Total capital to risk-weighted assets
Consolidated		$	56,095				13.11	%		$	57,199				13.22	%			8	%		NA
Bank only			47,484				11.07	%			45,338				10.54	%			8	%			10	%
Tier I capital to average assets
Consolidated		$	43,616				7.79	%		$	45,054				8.21	%			4	%		NA
Bank only			42,088				7.55	%			39,928				7.30	%			4	%			5	%

Management believes that the current capital position, as well as net income from operations, loan repayments and other sources of funds, will be adequate to meet our short and long term liquidity needs.

COMMUNITY CENTRAL BANK CORPORATION
FORM 10-Q (continued)

The following table shows the changes in stockholders’ equity for the three months ended March 31, 2008:

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

Total stockholders’ equity of $33.5 million at March 31, 2009, decreased $882,000 from December 31, 2008 primarily as a result of the first quarter loss of $1.5 million, partially offset by a $500,000 increase from the sale of preferred stock and a $191,000 increase in other comprehensive income. Additional items reducing stockholders’ equity included the first dividend payment on the preferred stock and the effect of SFAS 123R expensing of stock options.

In December 2008 and the first quarter of 2009, the Corporation raised a total of approximately $3.6 million in new capital through a private offering of its newly authorized series of preferred stock, designated as Series A Noncumulative Convertible Perpetual Preferred Stock (“Series A Preferred Stock”). The Corporation sold 3,550 shares of Series A Preferred Stock to the investors at a purchase price of $1,000 per share for an aggregate offering price of $3,550,000. The Series A Preferred Stock can be converted into common stock of the Corporation at any time by the holders, or by the Corporation in certain circumstances, at an initial conversion price of $10.00 per share of common stock, subject to adjustment and certain limitations. Dividends on the Series A Preferred Stock are payable quarterly in arrears, if declared by the Corporation’s Board of Directors, at a rate of 12.00% per year on the liquidation preference of $1,000 per share. Dividends on the Series A Preferred Stock are noncumulative.

Net Interest Income

Net interest income before the provision for loan losses for the first quarter of 2009 was $2.8 million, compared to $2.7 million for the first quarter of 2008. Net interest margin increased slightly from 2.18% in the first quarter of 2008 to 2.21% in the first quarter of 2009. Significantly affecting net interest income and net interest margin in the first quarter of 2009 was the reversal and non-recognition of interest income on nonaccrual loans which totaled approximately 51 basis points of total net interest margin.

COMMUNITY CENTRAL BANK CORPORATION
FORM 10-Q (continued)

The following table shows the dollar amount of changes in net interest income for each major category of interest earning asset and interest bearing liability, and the amount of change attributable to changes in average balances (volume) or average rates for the periods shown. Variances that are jointly attributable to both volume and rate changes have been allocated to the volume component.

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

The average yield earned on interest earning assets for the first quarter of 2009 was 5.67% compared to 6.09% for the first quarter of 2008. The average yield earned on the total loan portfolio, which contains both loans held for sale and investment, for 2009 was 6.01% compared to 6.64% during the first quarter of 2008. The overall decrease in the loan portfolio yield was attributable to a substantial and historical drop in market interest rates both short and long-term. The commercial, commercial real estate and home equity line loans that repriced with prime interest rate changes totaled approximately $125 million at March 31, 2009.

The average rate paid on interest bearing liabilities for the first quarter of 2009 was 3.82% compared to 4.34% in the first quarter of 2008. The decrease in average rate was due to the overall decline in the rate paid on interest bearing liabilities, primarily as a result of the historic decrease in market interest rates short and long-term. The decrease in the average rate for NOW and money market accounts for the first quarter of 2009 was primarily attributable to the drop in short term interest rates, with the average rate moving to 0.90% during the first quarter of 2009 from 2.18% in the first quarter of 2008. The average rate paid on savings also decreased, moving to 0.72% for the first quarter of 2009 from 1.82% in the first quarter of 2008. The rate paid on the total time deposit portfolio decreased to 3.91% for the first quarter of 2009, from 4.81% for the same time period in 2008 also due to the decrease in short term interest rates, although the highly competitive interest rates paid amongst local financial institutions has had an effect of keeping these rates higher than would have typically been expected. The rate paid on FHLB advances and repurchase agreements decreased only slightly to 4.09% in the first quarter of 2009 from 4.24% in the first quarter of 2008 and had the least rate movement of interest bearing liabilities as many of FHLB advance instruments have relatively long maturities. The average rate paid on the subordinated debenture increased in the first quarter of 2009 to 6.71% from 6.55%. The yield the subordinated debenture is calculated based on the original face of the obligation versus the fair value of the instrument recorded under SFAS 159. The slight change in yield between the respective quarterly periods was due to the unwinding of an associated interest rate swap as detailed in note 5 of the Notes to Consolidated Financial Statement included in this report .

COMMUNITY CENTRAL BANK CORPORATION
FORM 10-Q (continued)

Average Balance Sheet

The following tables show the Corporation’s consolidated average balances of assets, liabilities, and stockholders’ equity, the amount of interest income or interest expense and the average yield or rate for each major category of interest earning asset and interest bearing liability, and the net interest margin for the three month periods ended March 31, 2009 and 2008. Average loans are presented net of unearned income, gross of the allowance for loan losses. Interest on loans includes loan fees.

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