EX-99.1 2 ex-99.htm

Contacts:
          Community Central Bank Corp. - Ray Colonius - P:586 783-4500
          Marcotte Financial Relations - Mike Marcotte - P:248 656-3873

COMMUNITY CENTRAL BANK CORPORATION
ANNOUNCES Q2 EARNINGS
For Immediate Release

MOUNT CLEMENS, Mich., Aug. 1, 2007 -- Community Central Bank Corporation (NGM:CCBD), the holding company for Community Central Bank, today reported earnings for the second quarter and six months ended June 30, 2007.

Net income for the second quarter of 2007 was $536,000, or $0.14 per diluted share compared to net income of $631,000, or $0.15 per diluted share for the second quarter of 2006. Net income for the first six months of 2007 totaled $1,194,000, or $0.30 per diluted share, compared to net income of $1,334,000, or $0.33 per share, for the six months ended June 30, 2006.

David A. Widlak, President and CEO of both the holding company and the bank, commented, "We continue to focus on our key initiatives, including the diversification of our revenue through the continued growth in our Trust and Wealth Management division, the realignment of our earning asset mix, increased efficiency and continued capital management. Our Trust and Wealth Management division grew to $156.6 million in assets under management as of June 30, 2007, and we are delighted with the ongoing progress. Although total loans have been relatively unchanged from the beginning of the year, the change in loan mix has been consistent with our strategic plan. We have increased total commercial loans $13.5 million during the first six months of 2007, and reduced our residential mortgage loans $14.3 million through runoff and sales. We continue to repurchase shares of common stock at what we believe to be extremely attractive levels and to focus on delivering earnings per share. We have also been carefully monitoring our loan portfolio in the difficult economic environment that has produced a depressed real estate market in our region. Total nonperforming loans, as measured against total loans, was 1.43% as of June 30, 2007, and remained relatively unchanged from the previous quarter's 1.37%. Total nonperforming assets as a percentage of total assets was 1.06% at June 30, 2007 compared to 0.96% at December 31, 2006."

Net interest income for the second quarter of 2007 was $3.0 million, a decrease of 6.2% from the second quarter of 2006. Net interest margin for the second quarter of 2007 was 2.72% compared to 2.91% for the second quarter of 2006. Net interest margin increased 13 basis points over the first quarter of 2007, from the realignment of earning assets and the de-emphasis of time deposit funding. Net interest income for the first six months of 2007 was $5.9 million compared to $6.4 million for the first six months of 2006. Net interest margin was 2.66% for the first six months of 2007 compared to 2.96% for the six months ended 2006.

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Community Central Bank Corp.
Q2 2007 results
Page 2

A $175,000 provision for loan losses was taken in the second quarter of 2007. This was an increase of $125,000 from the first quarter of 2007 and a $50,000 increase from the second quarter of 2006. The increased provision was due in part to estimated declines in real estate collateral values and is based upon management's review of the risks inherent in the loan portfolio and the level of our allowance for loan losses. Net loan charge-offs for the first six months of 2007 totaled 18 basis points on an annualized basis. The allowance for loan losses was $3.7 million at June 30, 2007, or 1.02% of total loans versus $3.8 million or 1.04% at December 31, 2006.

Noninterest income in the second quarter of 2007 was $1.1 million, a decrease of $157,000, or 12.1%, compared to the second quarter of 2006. The decrease was largely due to a decrease in income from gains on the sale of residential mortgages, which decreased $372,000 or 38.5%. Fiduciary income from trust services was $111,000 for the second quarter 2007, which was an increase of $46,000 or 70.8% from the second quarter of 2006. Noninterest income from Wealth Management services was $50,000 for second quarter of 2007, compared to no fee income for the second quarter of 2006, as the division was being organized during this period. Noninterest income for the first six months of 2007 was $2.6 million, an increase of $59,000 or 2.4%, compared to the first six months of 2006.

Noninterest expense was $3.4 million for the second quarter of 2007 and decreased 6.5% or $235,000 from the first quarter of 2006. Salaries, benefits and payroll taxes of $1.9 million, decreased $163,000 or 7.9% primarily from a reduction in mortgage company origination commissions and continued emphasis on efficiency. Other operating expense of $1.0 million decreased $90,000 or 8.0% primarily attributable to decreases in promotional, advertising and business development expense. Noninterest expense was $6.9 million for the first six months of 2007 and decreased 2.7% or $191,000 largely from those items outlined in the second quarter.

At June 30, 2007, the Corporation's total assets were $502.9 million relatively unchanged from $505.0 million at December 31, 2006. Total loans of $366.9 million, while remaining relatively unchanged in total for the first six months of 2007, changed within loan categories during that period. Increases in commercial loans and home equity loans of $13.5 million and $1.4 million, respectively, were offset by decreases in the residential mortgage portfolio of $14.3 million and the consumer portfolio of $1.0 million. The changes coincide with the Corporation's strategic plan to change the relative loan mix by reducing the portion of lower yielding residential mortgages and increasing the relative mix of higher yielding commercial loans. Total deposits of $332.6 million decreased $23.2 million during the first six months of 2007. The decrease was entirely due to a $34.1 million decrease in time deposits. The decrease in time deposits was due to maturities of higher cost brokered time deposits. Partially offsetting the decrease in time deposits was an increase of $10.9 million from December 31, 2006, in core deposits, representing checking, NOW, money market and savings accounts.

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Community Central Bank Corp.
Q2 2007 results
Page 3

On June 29, 2007, the Corporation redeemed $10 million of Trust Preferred Securities (TPS), issued five years ago, with an interest rate of 365 basis points over the 3 month Libor rate or just over 9.00% at the time of retirement. During the first quarter of 2007, the Corporation replaced this redemption with an $18 million TPS issuance at 6.71%, with a fixed rate for ten years. Total stockholders equity of $34.0 million decreased $2.7 million from December 31, 2006 and was attributable to the Corporation common stock repurchase program and mark to market changes in the available for sale security portfolio.

The Corporation recently paid a $0.06 cash dividend, on July 2, 2007, to shareholders of record on June 1, 2007.

Community Central Bank Corporation is the holding company for Community Central Bank in Mount Clemens, Michigan. The Bank opened for business in October 1996 and serves businesses and consumers across Macomb, Oakland, Wayne and St. Clair counties with a full range of lending, deposit, trust, wealth management, and Internet banking services. The Bank operates three full service facilities, in Mount Clemens, Rochester Hills, and Grosse Pointe Farms, Michigan. Community Central Mortgage Company, LLC, a subsidiary of the Corporation and Bank, operates locations servicing the Detroit metropolitan area, Central and Northwest Indiana, Northern Illinois and Raleigh, North Carolina. 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.

Forward-Looking Statements. This news release contains comments or information that constitute forward-looking statements (within the meaning of the Private Securities Litigation Reform Act of 1995), which involve significant risks and uncertainties. Actual results may differ materially from the results discussed in the forward-looking statements. Factors that might cause such a difference include: changes in interest rates and interest-rate relationships; demand for products and services; the degree of competition by traditional and non-traditional competitors; changes in banking regulations; changes in tax laws; changes in prices, levies, and assessments; our ability to successfully integrate acquisitions into our existing operations, and the availability of new acquisitions, joint ventures and alliance opportunities; the impact of technological advances; governmental and regulatory policy changes; the outcomes of contingencies; trends in customer behavior as well as their ability to repay loans; changes in the national and local economy; and other factors included in Community Central Bank Corporation's filings with the Securities and Exchange Commission, available free via EDGAR. The Corporation assumes no responsibility to update forward-looking statements.

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Community Central Bank Corporation (NGM:CCBD)
Summary of Selected Financial Data

Three months ended
June 30,
Six months ended
June 30,
Unaudited
2007
Unaudited
2006
Unaudited
2007
Unaudited
2006
(In thousands) (In thousands)
OPERATIONS
Interest income
    Loans $6,885 $6,710 $13,737 $12,738
    Taxable securities 805 809 1,472 1,580
    Tax-exempt securities 413 321 747 599
    Federal funds sold 131
24
386
61
    Total interest income 8,234 7,864 16,342 14,978

Interest expense
    Deposits 3,434 3,275 7,154 5,975
    Rep Agreement and Fed Funds 233 95 393 188
    FHLB Advances 975 1,029 1,896 1,988
    ESOP loan interest 2 2 4 5
    Subordinated debentures 559
232
953
447
    Total interest expense 5,203 4,633 10,400 8,603

Net Interest Income 3,031 3,231 5,942 6,375

Provision for credit losses 175
125
225
175
Net Interest Income after Provision 2,856 3,106 5,717 6,200

Noninterest income
    Fiduciary income 111 65 198 132
    Deposit service charges 92 88 180 170
    Net realized security gains (13 ) --- (13 ) ---
    Other income 955
1,149
2,198
2,202
    Total noninterest income 1,145 1,302 2,563 2,504

Noninterest expense
    Salaries, benefits and payroll taxes 1,903 2,066 4,046 4,171
    Occupancy expense 465 447 917 913
    Other operating expense 1,038
1,128
1,903
1,973
    Total noninterest expense 3,406 3,641 6,866 7,057

Income before taxes 595 767 1,414 1,647

Provision for income taxes 59
136
220
313
Net Income $536 $631 $1,194 $1,334


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Community Central Bank Corporation (NGM:CCBD)
Summary of Selected Financial Data - continued

Three months ended
June 30,
Six months ended
June 30,
2007 2006 2007 2006
PER SHARE DATA
Basic earnings per share $0.14 $0.16 $0.30 $0.33
Diluted earnings per share $0.14 $0.15 $0.30 $0.33
Book value per share $8.96 $8.84 $8.96 $8.84
Basic average shares outstanding (000's) 3,868 4,020 3,925 4,012
Diluted average shares outstanding (000's) 3,919 4,089 3,981 4,081
Actual shares outstanding (000's) 3,796 4,044 3,796 4,044

Net interest margin (fully tax-equivalent) 2.72 % 2.91 % 2.66 % 2.96 %

Average and outstanding shares have been retroactively adjusted for stock dividends.

Condensed Balance Sheet

Unaudited
June,
2007
Audited
December 31,
2006
(In thousands)
Assets
Cash and equivalents $7,303 $24,726
Investments 76,128 86,473
Trading Securities 25,819 ---
Residential mortgage loans held for sale 2,550 3,441
Loans 366,910 367,282
Allowance for loan losses (3,730 ) (3,815 )
Other Assets 27,963
26,921
Total Assets $520,943 $505,028
Liabilities and stockholders' equity
Deposits $332,619 $355,856
Repurchase agreements 29,672 15,688
Federal Home Loan Bank Advances 85,396 83,528
Other liabilities 3,492 2,981
Subordinated debentures 17,767 10,310
Stockholders' equity 33,997
36,665
Total Liabilities and Stockholders' Equity $502,943 $505,028

Condensed balance sheet data contains adjustments for fair value option SFAS 159

OTHER DATA

Allowance for loan losses to total loans 1.02 % 1.04 %
Nonperforming loans to total loans 1.43 % 1.29 %
Nonperforming assets to total assets 1.06 % 0.96 %
Stockholders' equity to total assets 6.76 % 7.26 %
Tier 1 Leverage Ratio 8.93 % 9.01 %

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