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Community Central Bank Corporation Announces Deferral of Interest Payments on Junior Subordinated Notes and Dividend Suspension on Preferred Stock

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MOUNT CLEMENS, Mich., May 14, 2010 (GLOBE NEWSWIRE) -- Community Central Bank Corporation (Nasdaq: CCBD), the holding company for Community Central Bank, today announced the deferral of regularly scheduled interest payments on its outstanding $18 million of junior subordinated notes relating to its trust preferred securities and the suspension of quarterly cash dividends on its noncumulative Series A and cumulative Series B preferred stock. The terms of the junior subordinated notes and the trust documents allow the Company to defer payments of interest for up to 20 consecutive quarterly periods without default or penalty. During the deferral period, the trust will likewise suspend the declaration and payment of dividends on the trust preferred securities. Also during the deferral period, the Company may not, among other things and with limited exceptions, pay cash dividends on or repurchase its common stock or preferred stock nor make any payment on outstanding debt obligations that rank equally with or junior to the junior subordinated notes. Accordingly, the Company has also suspended the payment of cash dividends on its outstanding preferred stock. 

The Company believes that the deferral of interest payments on the junior subordinated notes and the suspension of cash dividends on the preferred stock will preserve approximately $1.8 million per year.

"Improving our capital ratios is essential for ensuring the health of the Bank and the Company during these difficult economic times and is in the best long-term interest of all of our shareholders," said David A. Widlak, President and Chief Executive Officer of the Company. "We believe the actions we have announced today are the most prudent course for our Company. We would expect to resume paying dividends when such payments would be consistent with our overall financial performance and capital requirements."

The failure to make six quarterly dividend payments, whether or not consecutive, with respect to the Series A preferred stock would trigger the right of the holders of the Series A preferred stock to appoint two persons to the board of directors of 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 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.

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. These forward-looking statements are based on the Company's expectations and are subject to risks and uncertainties that cannot be predicted or quantified and are beyond the Company's control, including the potential that the Company may not ever be able to recommence paying distributions on its junior subordinated notes or its Series A or B preferred stock. Such risks and uncertainties include: 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 sell other real estate owned without suffering unanticipated losses; 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. The Corporation assumes no responsibility to update forward-looking statements. 

CONTACT: Community Central Bank Corp. Ray Colonius (586) 783-4500
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