MOUNT CLEMENS, Mich., July 23 /EMWNews/ -- Community

Central Bank Corporation (Nasdaq: CCBD), the holding company for Community

Central Bank, today reported earnings for the quarter ended June 30, 2008.

Net income for the second quarter of 2008 was $275,000, or $0.07 per

diluted share, compared to $536,000, or $0.14 per diluted share, for the

second quarter ended 2007. Net income for the six months ended June 30,

2008 was $515,000, or $0.14 per diluted share, compared to net income of

$1,194,000, or $0.30 per diluted share, for the six months ended June 30,

2007.



    David A. Widlak, President and CEO commented, "We expect that our

continued profitability, coupled with our additional capital availability

from the Bank Holding Company will give us opportunities for growth as we

go forward. Despite the current economic challenges we continue to execute

our business plan, which includes revenue diversification, development of

core deposits and the reduction of nonperforming assets. We are proactively

addressing the weaknesses in our loan portfolio related to the Michigan

economy and our real estate markets. We realize that we cannot rely solely

on an eventual local economic upturn as our solution to increasing returns

for our shareholders. We must continue to focus on those activities which

grow revenue while protecting our valuable capital."



    Mr. Widlak went on to state: "At June 30, 2008, we remained 'Well

Capitalized,' the highest ranking of regulatory capital. We were encouraged

by a decrease in nonperforming assets from the first quarter of this year.

However, we remain cognizant of our economic environment and continue to

expand our efforts to reduce current levels of nonperforming assets and

mitigate any future deterioration in the loan portfolio. While our

provision for loan losses was historically larger than normal, it was less

than half the provision of the first quarter of 2008. Net interest margin

has been affected by the large drop in short term interest rates, which

reduced the yield on our loans, the price competition for deposits in our

markets and the level of nonaccruing loans. We do expect interest margin

improvement in upcoming quarters as time deposits continue to reprice down

from relative higher levels. Our Trust and Wealth Management divisions

continue to grow, producing a larger relative portion of revenue. While

core deposit growth continues to be a challenging task, we were encouraged

by the growth in demand deposits which ended June 30, 2008 at $40.4 million

or 12.2% of total deposits."



    We recorded an $884,000 provision for loan losses in the second quarter

of 2008, based upon management's review of the risks inherent in the loan

portfolio and the level of our allowance for loan losses. Total

nonperforming assets as a percentage of total assets was 4.15% at June 30,

2008, compared to 4.28% at March 31, 2008 and 3.56% at December 31, 2007.

The allowance for loan losses at June 30, 2008 was $7.0 million, or 1.78%

of total loans and 34.97% of nonperforming loans, versus $6.4 million, or

1.64% and 36.21% at December 31, 2007, respectively.



    Noninterest income was $2.2 million for the second quarter of 2008,

increasing $1.0 million, or 88.6%, from the second quarter of 2007. The

increase was primarily related to a net increase in the fair market value

of assets and liabilities as measured under Statement of Financial

Accounting Standards (SFAS 159). The increase was largely attributable to

the fair value of the subordinated debenture connected with the February

2007 Trust Preferred Issuance. The net change in fair value, which was

largely associated with this instrument and the corresponding interest rate

swap, totaled $872,000 in unrealized gains for the second quarter of 2008,

as recorded in other income. The widening of market credit spreads for

trust preferred securities experienced in the second quarter of 2008

increased the relative fair value of this financial liability dramatically.

The Corporation hedges against changes in interest rates with an interest

rate swap, which is also accounted for under SFAS 159. The hedge does not

cover changes in credit spreads, which typically occur over much longer

periods of time than we are currently experiencing. 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.

Noninterest income was $5.4 million for the first six months of 2008,

increasing $2.8 million, or 109.1%, from the first six months of 2007. The

increase was largely attributable to the aforementioned net change in fair

value over the six month period.



    Noninterest expense was $3.8 million for the second quarter of 2008,

increasing $352,000, or 10.3%, from the second quarter of 2007. Decreases

in salaries and benefits of $68,000, or 3.6%, from staffing reductions,

were offset by an increase in other expense of $433,000, or 41.7%. These

other expenses included valuation charges incurred on foreclosed property

and legal expense on loan workouts. Noninterest expense was $7.3 million

for the first six months of 2008, increasing $449,000, or 6.5%, again

resulting from increases in valuation costs incurred on foreclosed property

and other workout related costs, which exceeded cost-savings achieved in

other expense areas.



    At June 30, 2008, the Corporation's total assets were $532.3 million,

an increase of $12.0 million from December 31, 2007. Total loans of $394.2

million increased slightly, up $4.3 million, or 1.1%, from December 31,

2007. Increases in commercial loans were partially offset by decreases in

all other loan categories. Total deposits of $330.1 million increased $1.5

million, or 0.5%, for the first half of 2008. Increases for the first six

months were primarily comprised of noninterest bearing demand deposits of

$8.7 million, offset by decreases in time deposits of $8.5 million, with

other deposit categories posting smaller net changes. Total stockholders'

equity of $33.2 million remained relatively unchanged from December 31,

2007 as increases in retained earnings were offset by decreases in

accumulated other comprehensive income as a result of changes in the market

value of available-for-sale securities.



    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 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 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.



    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; changes in the national and local economy;

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; 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.








    Community Central Bank Corporation (NasdaqGM: CCBD)

    Summary of Selected Financial Data



                                  Three months ended      Six months ended

                                        June 30,               June 30,

                                 Unaudited   Unaudited   Unaudited  Unaudited

                                    2008        2007        2008       2007

                                    (In thousands)          (In thousands)

    OPERATIONS

    Interest income

      Loans                       $6,373      $6,885     $12,864    $13,737

      Taxable securities             942         805       1,768      1,472

      Tax-exempt securities          147         413         376        747

      Federal funds sold              54         131         309        386



      Total interest income        7,516       8,234      15,317     16,342



    Interest expense

      Deposits                     2,965       3,434       6,346      7,154

      Rep Agreement and Fed Funds    289         233         519        393

      FHLB Advances                1,248         975       2,474      1,896

      ESOP loan interest               1           2           1          4

      Subordinated debentures        216         559         507        953



      Total interest expense       4,719       5,203       9,847     10,400



    Net Interest Income            2,797       3,031       5,470      5,942



    Provision for credit losses      884         175       2,984        225



    Net Interest Income after

     Provision                     1,913       2,856       2,486      5,717



    Noninterest income

      Fiduciary income                98         111         206        198

      Deposit service charges        142          92         274        180

      Net realized security gains     49         (13)        110        (13)

      Mortgage banking income        430         594         880      1,348

      Other income                 1,440         361       3,889        850



      Total noninterest income     2,159       1,145       5,359      2,563



    Noninterest expense

      Salaries, benefits and

       payroll taxes               1,835       1,903       3,667      4,046

      Occupancy expense              452         465         913        917

      Other operating expense      1,471       1,038       2,735      1,903



      Total noninterest expense    3,758       3,406       7,315      6,866



    Income before taxes              314         595         530      1,414



    Provision for income taxes        39          59          15        220



    Net Income                      $275        $536        $515     $1,194







    Community Central Bank Corporation (NasdaqGM: CCBD)

    Summary of Selected Financial Data - continued



                                   Three months ended     Six months ended

                                        June 30,                June 30,

                                    2008        2007        2008       2007

    PER SHARE DATA

    Basic earnings per share       $0.07       $0.14       $0.14      $0.30

    Diluted earnings per share     $0.07       $0.14       $0.14      $0.30

    Book value per share           $8.89       $8.96       $8.89      $8.96

    Basic average shares

     outstanding (000's)           3,731       3,868       3,729      3,925

    Diluted average shares

     outstanding (000's)           3,735       3,919       3,731      3,981

    Actual shares outstanding

     (000's)                       3,735       3,796       3,735      3,796



    Net interest margin (fully

     tax-equivalent)                2.28%       2.72%       2.23%      2.66%





    Condensed Balance Sheet

                                                   Unaudited        Audited

                                                    June 30,      December 31,

                                                      2008            2007

                                                         (In thousands)

    Assets

    Cash and equivalents                             $14,171         $9,183

    Investments                                       80,144         73,313

    Trading Securities                                17,442         20,115

    Residential mortgage loans held for sale           1,930          4,848

    Loans                                            394,216        389,912

    Allowance for loan losses                         (7,019)        (6,403)

    Other Assets                                      31,435         29,337



    Total Assets                                    $532,319       $520,305



    Liabilities and Stockholders' Equity

    Deposits                                        $330,116       $328,635

    Repurchase agreements                             32,928         32,659

    Federal Home Loan Bank Advances                  117,510        104,495

    Other liabilities                                  4,015          3,691

    Subordinated debentures                           14,548         17,597

    Stockholders' equity                              33,202         33,228



    Total Liabilities and Stockholders' Equity      $532,319       $520,305



    Condensed balance sheet data contains adjustments for fair value option

SFAS 159






    OTHER DATA

    Allowance for loan losses to total loans            1.78%          1.64%

    Allowance for loan losses to nonperforming loans   34.97%         36.21%

    Nonperforming loans to total loans                  5.09%          4.54%

    Nonperforming assets to total assets                4.15%          3.56%

    Stockholders' equity to total assets                6.24%          6.39%

    Tier 1 Leverage Ratio                               8.09%          8.37%