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 Q1 EARNINGS
For Immediate Release
First Quarter 2007 Highlights
- Assets total $521 million
- Trust and Wealth management continues to expand with $133 million of Assets under Management
- The Corporation completes trust preferred securities issuance
MOUNT CLEMENS, Mich., May 3, 2007 -- Community Central Bank Corporation (Nasdaq:CCBD), the holding company for Community Central Bank, today reported earnings for the quarter ended March 31, 2007. Net income for the first quarter of 2007 was $658,000, or $0.16 per diluted share, down 6.4% from $703,000, or $0.17 per diluted share for the first quarter ended 2006.
David A. Widlak, President and CEO commented, "Despite the challenging banking environment we have faced, we are pleased with our progress in executing our business plan initiatives. The banking industry as a whole continues to be challenged by a difficult interest rate environment and we continue to see signs of economic stress in our marketplace. We are encouraged that one of our key initiatives, diversification of our revenue base, has continued to progress through our continued growth in our trust and wealth management divisions."
In connection with reporting its first quarter earnings, Community Central Bank Corporation announces its early adoption of the financial accounting fair value standards, SFAS 159 and concurrent adoption of SFAS 157. As a result of these adoptions, certain financial instruments were moved to a fair value classification. The adoption of the fair value standards had a net positive after tax impact of approximately $150,000 on first quarter earnings. The cumulative reduction to opening retained earnings from adopting these standards was approximately $420,000. Further information pertaining to the adoption will be disclosed in the Corporation's March 31, 2007 10-Q.
Total revenue, comprised of net interest income and noninterest income, was $4.3 million for the first quarter of 2007, unchanged from the first quarter of 2006. Net interest income for the first quarter of 2007 was $2.9 million, a decrease of 7.4% from the first quarter of 2006. The decrease was reflective of a 41 basis point decline in net interest margin to 2.59% over the same time period and a 7 basis point decrease from the fourth quarter of 2006. The net interest margin in the first quarter 2007 was temporarily affected by excess liquidity, which was due in part to the Corporation's acquisition of the previously announced $18 million trust preferred issuance.
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Community Central Bank Corp.
Q1-2007 results
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Additionally, net interest margin would have remained unchanged from the prior quarter except for the effect of recognition of interest income reversal on nonaccrual loans.
A $50,000 provision was made to the allowance for loan losses in the first quarter of 2007, 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 quarter of 2007 totaled 17 basis points on an annualized basis. Total nonperforming assets as a percentage of total assets was 0.98% at March 31, 2007, compared to 0.96% at December 31, 2006. The allowance for loan losses was $3.7 million at March 31, 2007, or 1.01% of total loans versus $3.8 million or 1.04% at December 31, 2006.
Noninterest income in the first quarter of 2007 was $1.4 million, an increase of $216,000, or 18.0%, compared to the first quarter of 2006. The increase was largely due to noninterest income recognized from net increases in fair value of selected financial asset and liability instruments connected with the adoption of the fair value standards noted above. Fiduciary income from trust services represented $87,000 for the first quarter 2007, which was an increase of $20,000 or 29.9% from the first quarter of 2006. Noninterest income from Wealth Management services was $49,000 for the first three months of 2007, compared to no fee income for the first three months of 2006, as the division was being organized during this period.
Noninterest expense was $3.5 million for the first quarter of 2007 and was relatively unchanged from the first quarter of 2006, increasing $44,000 or 1.29% as the Corporation continues to place emphasis on cost controls.
At March 31, 2007, the Corporation's total assets were $520.9 million, an increase of $15.9 million from December 31, 2006. Total loans of $366.2 million remained stable for the quarter, decreasing $1.1 million or less than one half percent. Commercial loan growth of $3.5 million during the first quarter of 2007 was adversely affected by large loan payoffs. Residential mortgage loans decreased $4.1 million during the quarter, as this coincides 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 $341.4 million decreased $14.4 million during the first quarter. The decrease was entirely due to a $22.2 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 $7.8 million from December 31, 2006 in core deposits, representing checking, NOW, money market and savings accounts. Total stockholders equity of $36.1 million decreased $614,000 from December 31, 2006 and was attributable to the Corporation's common stock repurchase program and the aforementioned early adoption of fair value standards.
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Community Central Bank Corp.
Q1-2007 results
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The Corporation recently announced a 5% stock dividend, payable June 1, 2007, to shareholders of record on May 1, 2007.
About the Company: 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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(financial schedules follow)
Community Central Bank Corporation (NNM:CCBD)
Summary of Selected Financial Data
Three months ended March 31, | ||||
Unaudited 2007 | Unaudited 2006 | |||
(In thousands) | ||||
OPERATIONS | ||||
Interest income | ||||
Loans | $6,852 | $6,028 | ||
Taxable securities | 667 | 771 | ||
Tax-exempt securities | 334 | 278 | ||
Federal funds sold | 255 | 37 | ||
Total interest income | 8,108 | 7,114 | ||
Interest expense | ||||
Deposits | 3,720 | 2,700 | ||
Rep Agreements and Fed Funds | 160 | 93 | ||
FHLB Advances | 921 | 959 | ||
ESOP loan interest | 2 | 3 | ||
Subordinated debentures | 394 | 215 | ||
Total interest expense | 5,197 | 3,970 | ||
Net Interest Income | 2,911 | 3,144 | ||
Provision for loan losses | 50 | 50 | ||
Net Interest Income after Provision | 2,861 | 3,094 | ||
Noninterest income | ||||
Fiduciary income | 87 | 67 | ||
Deposit service charges | 88 | 82 | ||
Net realized security gains | --- | --- | ||
Other income | 1,243 | 1,053 | ||
Total noninterest income | 1,418 | 1,202 | ||
Noninterest expense | ||||
Salaries, benefits and payroll taxes | 2,143 | 2,105 | ||
Occupancy expense | 452 | 466 | ||
Other operating expense | 865 | 845 | ||
Total noninterest expense | 3,460 | 3,416 | ||
Income before taxes | 819 | 880 | ||
Provision for income taxes | 161 | 177 | ||
Net Income | $658 | $703 | ||
Memo: Net interest income (fully tax-equivalent) | 3,084 | 3,288 |
Community Central Bank Corporation (NNM:CCBD)
Summary of Selected Financial Data - continued
Three months ended March 31, | ||||
2007 | 2006 | |||
PER SHARE DATA | ||||
Basic earnings per share | $0.17 | $0.18 | ||
Diluted earnings per share | $0.16 | $0.17 | ||
Book value per share | $9.18 | $8.92 | ||
Basic average shares outstanding (000's) | 3,982 | 4,004 | ||
Diluted average shares outstanding (000's) | 4,043 | 4,078 | ||
Actual shares outstanding (000's) | 3,929 | 4,028 | ||
Net interest margin (fully tax-equivalent) | 2.59% | 3.00% |
Average and outstanding shares have been retroactively adjusted for stock dividends.
Condensed Balance Sheet
Unaudited March 31, 2007 | Unaudited December 31, 2006 | |||
(In thousands) | ||||
Assets | ||||
Cash and equivalents | $31,841 | $24,726 | ||
Investments | 95,445 | 86,473 | ||
Residential mortgage loans held for sale | 3,932 | 3,441 | ||
Loans | 366,187 | 367,282 | ||
Allowance for loan losses | (3,709 | ) | (3,815 | ) |
Other Assets | 27,226 | 26,921 | ||
Total Assets | $520,922 | $505,028 | ||
Liabilities and stockholders' equity | ||||
Deposits | $341,414 | $355,856 | ||
Repurchase agreements | 31,522 | 15,688 | ||
Federal Home Loan Bank Advances | 80,353 | 83,528 | ||
Other liabilities | 2,768 | 2,981 | ||
Subordinated debentures | 28,814 | 10,310 | ||
Stockholders' equity | 36,051 | 36,665 | ||
Total Liabilities and Stockholders' Equity | $520,922 | $505,028 |
Condensed balance sheet data contains adjustments for fair value option SFAS 159
OTHER DATA
Allowance for loan losses to total loans | 1.01% | 1.04% | ||
Nonperforming loans to total loans | 1.37% | 1.29% | ||
Nonperforming assets to total assets | 0.98% | 0.96% | ||
Stockholders' equity to total assets | 6.92% | 7.26% | ||
Tier 1 Leverage Ratio | 9.40% | 9.01% |
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