Contacts:
Community Central Bank Corp. – Ray Colonius - P:586 783-4500
COMMUNITY CENTRAL BANK CORPORATION
ANNOUNCES Q1 EARNINGS
For Immediate Release
MOUNT CLEMENS, Mich., May 6, 2009 -- Community Central Bank Corporation (NasdaqGM:CCBD), the holding company for Community Central Bank, today reported earnings for the quarter ended March 31, 2009. As of March 31, 2009, the Corporation and Bank were considered to be “Well Capitalized,” the highest regulatory capital level.
The Corporation reported a net loss of ($1,544,000) or ($0.43) per diluted common share for the first quarter ended March 31, 2009. This compares to net income of $240,000 or $0.06 per diluted common share for the first quarter ended March 31, 2008.
David A. Widlak, President and CEO commented, “The downturn in the economy continues to affect parts of our loan portfolio requiring higher provisions for loan losses. We continue to focus on strategies to preserve and increase capital, and grow segments of operations that are capital efficient, such as our Mortgage Banking operations, Trust, Retirement and Wealth Management services and our branch deposit operations. Although our nonperforming loan level continues to pressure our 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, we raised approximately $3.6 million in new capital through a private preferred offering. We have been greatly heartened by this showing of community support.”
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.
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. 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.
Noninterest income was $1.2 million for the first quarter of 2009, decreasing $1.9 million, or 62.1%, from 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 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 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. Fiduciary income was $83,000 for the first quarter of 2009, decreasing $25,000 or 23.1%, from the first quarter of 2008 as a result of market declines in assessable assets held under management. Deposit service charge income of $95,000 decreased $37,000, or 28.0%, from the first quarter of 2008 from lower overdraft activity. Mortgage banking income comprised primarily of gains on the sale of residential mortgages was $471,000 for the first quarter of 2009. The increase of $21,000, or 4.7%, from the first quarter of 2008 was reflective of growth in the secondary sales of government FHA and FNMA mortgages. Net realized gains from the sale of securities was $128,000 for the first quarter of 2009 and was attributable to restructuring activities in the available for sale security portfolio.
Noninterest expense was $3.8 million for the first quarter of 2009, increasing $317,000 or 8.9% from the first quarter of 2008. The majority of the increase in total noninterest expense was recorded in other operating expense and was attributable to an increase of $275,000 in write downs on other real estate owned and other repossessed collateral over the respective quarterly periods. Salaries, benefits and payroll taxes totaled $1.9 million for the first quarter of 2009, compared to $1.8 million for the first quarter of 2008, an increase of $100,000 increase or 5.5%. This increase was due to expanded activity and related commissions in the Bank’s mortgage banking subsidiary.
At March 31, 2009, the Corporation’s assets totaled $556.6 million, relatively unchanged from December 31, 2008. Total loans of $421.6 million increased $14.5 million, or 3.6%, from December 31, 2008. The increase in loans was attributable to commercial and commercial real estate loans. Total deposits of $367.7 million 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. Total stockholders’ equity of $33.5 million decreased $882,000 from December 31, 2008 from the first quarter loss of $1.5 million, partially offset by increases of preferred stock of $500,000 and other comprehensive income of $191,000.
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 and central 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 | |
| | | | March 31, | |
| | | | Unaudited | | | Unaudited | |
| | | | 2009 | | | 2008 | |
| | | | (In thousands) | | | | |
| | | | | | | | |
| OPERATIONS | | | | | | |
| Interest income | | | | | | |
| | Loans | | $ | 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 | | | | | | | | |
| | Deposits | | | 2,753 | | | | 3,381 | |
| | Rep Agreements and Fed Funds | | | 317 | | | | 230 | |
| | FHLB 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 loan losses | | | 2,550 | | | | 2,100 | |
| Net Interest Income after Provision | | | 258 | | | | 573 | |
| | | | | | | | | | |
| Noninterest income | | | | | | | | |
| | Fiduciary income | | | 83 | | | | 108 | |
| | Deposit service charges | | | 95 | | | | 132 | |
| | Net realized security gains | | | 128 | | | | 61 | |
| | Mortgage banking income | | | 471 | | | | 450 | |
| | Change in fair value of assets/liabilities | | | 232 | | | | 2,139 | |
| | Other income | | | 205 | | | | 310 | |
| | Total noninterest income | | | 1,214 | | | | 3,200 | |
| | | | | | | | | | |
| Noninterest expense | | | | | | | | |
| | Salaries, benefits and payroll taxes | | | 1,932 | | | | 1,832 | |
| | 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 (benefit) for income taxes | | | (858 | ) | | | (24 | ) |
| Net income (loss) | | | (1,544 | ) | | $ | 240 | |
| Dividends declared on preferred shares | | | 50 | | | | --- | |
| Net income (loss) available to common | | | | | | | | |
| shares | | | $ | (1,594 | ) | | $ | 240 | |
Community Central Bank Corporation (NasdaqGM:CCBD)
Summary of Selected Financial Data - continued
| | | Three months ended | |
| | | March 31, | |
| | | 2009 | | | 2008 | |
| PER SHARE DATA | | | | | | |
| Basic earnings (loss) per common share | | $ | (0.43 | ) | | $ | 0.06 | |
| Diluted earnings (loss) per common share | | $ | (0.43 | ) | | $ | 0.06 | |
| Book value per common share | | $ | 8.02 | | | $ | 9.06 | |
| Basic average shares outstanding (000’s) | | | 3,735 | | | | 3,726 | |
| Diluted average shares outstanding (000’s) | | | 3,735 | | | | 3,730 | |
| Actual shares outstanding (000’s) | | | 3,735 | | | | 3,732 | |
| | | | | | | | | |
| Net interest margin (fully tax-equivalent) | | | 2.21 | % | | | 2.18 | % |
Condensed Balance Sheet
| | | Unaudited | | | Audited | |
| | | March 31, | | | December 31, | |
| | | 2009 | | | 2008 | |
| | | (In thousands) | |
| Assets | | | | | | |
| Cash and equivalents | | $ | 19,726 | | | $ | 16,162 | |
| Investments | | | 78,649 | | | | 101,407 | |
| Residential mortgage loans held for sale | | | 10,873 | | | | 3,302 | |
| Loans | | | 421,583 | | | | 407,117 | |
| Allowance for loan losses | | | (8,322 | ) | | | (7,315 | ) |
| Other assets | | | 34,091 | | | | 36,277 | |
| Total Assets | | $ | 556,600 | | | $ | 556,950 | |
| | | | | | | | | |
| Liabilities and Stockholders’ Equity | | | | | | | | |
| Deposits | | $ | 367,700 | | | $ | 357,376 | |
| Repurchase agreements | | | 37,300 | | | | 39,394 | |
| Federal Home Loan Bank Advances | | | 102,700 | | | | 108,200 | |
| Other liabilities | | | 3,366 | | | | 4,829 | |
| Subordinated debentures | | | 12,022 | | | | 12,757 | |
| Stockholders’ equity | | | 33,512 | | | | 34,394 | |
| Total Liabilities and Stockholders’ Equity | | $ | 556,600 | | | $ | 556,950 | |
Condensed balance sheet data contains adjustments for fair value option SFAS 159
| | | March 31, | | | December 31, | |
| | | 2009 | | | 2008 | |
| | | (In thousands) | |
OTHER DATA- dollars in thousands | | | | | | |
| Capital Adequacy | | | | | | |
| Equity to total assets | | | 6.02 | % | | | 6.18 | % |
| Tier 1 Leverage Ratio | | | 7.79 | % | | | 8.21 | % |
| Tier 1 Capital to Risk-Weighted Assets | | | 10.20 | % | | | 10.41 | % |
| Total Capital to Risk-Weighted Assets | | | 13.11 | % | | | 13.22 | % |
| Total Capital to Risk-Weighted Assets (Bank) | | | 11.07 | % | | | 10.54 | % |
| | | | | | | | | |
| Credit Quality | | | | | | | | |
| Nonaccrual loans | | $ | 30,366 | | | $ | 17,584 | |
| Loans past due 90 days and still accruing | | | 35 | | | | 44 | |
| Total nonperforming loans | | $ | 30,401 | | | $ | 17,628 | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| Troubled debt restructuring- Current | | $ | 9,205 | | | $ | 4,970 | |
| Troubled debt restructuring –Past due 30-89 | | | | | | | | |
| days | | $ | 6,238 | | | $ | 3,192 | |
| | | | | | | | | |
| Other real estate owned | | $ | 3,379 | | | $ | 2,913 | |
| Other repossessed collateral | | $ | 1,136 | | | $ | 976 | |
| | | | | | | | | |
| Allowance for loan losses to total loans | | | 1.97 | % | | | 1.80 | % |
| Allowance for loan losses to nonperforming | | | | | | | | |
| loans | | | 27.37 | % | | | 41.50 | % |
| Nonperforming loans to total loans | | | 7.21 | % | | | 4.33 | % |
