----

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**UNITED        STATES**

**SECURITIES      AND EXCHANGE COMMISSION**

**Washington,      D.C.  20549**

**FORM      10-Q**

| x | **QUARTERLY                REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE                ACT OF                1934** |
|---|------------------------------------------------------------------------------------------------------------------------------------------|

| o | **TRANSITION                REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE                ACT OF                1934** |
|---|-------------------------------------------------------------------------------------------------------------------------------------------|

**000-23575**

**COMMUNITY      WEST BANCSHARES**

| California                                                                    | 77-0446957                                          |
|-------------------------------------------------------------------------------|-----------------------------------------------------|
| (State                or other jurisdiction of incorporation or organization) | (I.R.S.                Employer Identification No.) |

| 445                Pine Avenue, Goleta, California      | 93117                     |
|---------------------------------------------------------|---------------------------|
| (Address                of principal executive offices) | (Zip                Code) |

| Large                accelerated filer o | Accelerated                filer o | Non-accelerated                filer x |
|------------------------------------------|------------------------------------|----------------------------------------|

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**TABLE      OF CONTENTS**

| **PART                I.**                                                                                                                                                                                                                   | **FINANCIAL                INFORMATION**                                                                                      | **PAGE** |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------|----------|
|                                                                                                                                                                                                                                         |                                                                                                                          |     |   |
| **ITEM                1.**                                                                                                                                                                                                                   | **FINANCIAL                STATEMENTS (UNAUDITED)**                                                                           |     |   |
|                                                                                                                                                                                                                                         | CONSOLIDATED                BALANCE SHEETS                                                                                    |     | 3 |
|                                                                                                                                                                                                                                         | CONSOLIDATED                INCOME STATEMENTS                                                                                 |     | 4 |
|                                                                                                                                                                                                                                         | CONSOLIDATED                STATEMENT OF STOCKHOLDERS’                EQUITY                                            |     | 5 |
|                                                                                                                                                                                                                                         | CONSOLIDATED                STATEMENTS OF CASH FLOWS                                                                          |     | 6 |
|                                                                                                                                                                                                                                         | NOTES                TO UNAUDITED CONSOLIDATED FINANCIAL                STATEMENTS                                            |     | 7 |
|                                                                                                                                                                                                                                         |                                                                                                                          |     |   |
| *The                financial statements included in this Form 10-Q should be read with                reference to Community West Bancshares’ Annual Report on Form 10-K for the                fiscal year ended December 31, 2006.* |                                                                                                                          |     |
|                                                                                                                                                                                                                                         |                                                                                                                          |     |   |
|                                                                                                                                                                                                                                         |                                                                                                                          |     |   |
| **ITEM                2.**                                                                                                                                                                                                                   | **MANAGEMENT’S                DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND                RESULTS OF OPERATIONS** |     | 11 |
|                                                                                                                                                                                                                                         |                                                                                                                          |     |   |
| **ITEM                3**                                                                                                                                                                                                                    | **QUANTITATIVE                AND QUALITATIVE DISCLOSURES ABOUT MARKET                RISK**                                  |     | 21 |
|                                                                                                                                                                                                                                         |                                                                                                                          |     |   |
| **ITEM                4.**                                                                                                                                                                                                                   | **CONTROLS                AND PROCEDURES**                                                                                    |     | 21 |
|                                                                                                                                                                                                                                         |                                                                                                                          |     |   |
| **PART                II.**                                                                                                                                                                                                                  | **OTHER                INFORMATION**                                                                                          |     |   |
|                                                                                                                                                                                                                                         |                                                                                                                          |     |   |
| **ITEM                1.**                                                                                                                                                                                                                   | **LEGAL                PROCEEDINGS**                                                                                          |     | 21 |
|                                                                                                                                                                                                                                         |                                                                                                                          |     |   |
| **ITEM                1A**                                                                                                                                                                                                                   | **RISK                FACTORS**                                                                                               |     | 21 |
|                                                                                                                                                                                                                                         |                                                                                                                          |     |   |
| **ITEM                2.**                                                                                                                                                                                                                   | **UNREGISTERED                SALES OF EQUITY SECURITIES AND **USE                OF PROCEEDS****                             |     |   |
|                                                                                                                                                                                                                                         |                                                                                                                          |     | 21 |
|                                                                                                                                                                                                                                         |                                                                                                                          |     |   |
| **ITEM                3.**                                                                                                                                                                                                                   | **DEFAULTS                UPON SENIOR SECURITIES**                                                                            |     | 21 |
|                                                                                                                                                                                                                                         |                                                                                                                          |     |   |
| **ITEM                4.**                                                                                                                                                                                                                   | **SUBMISSION                OF MATTERS TO A VOTE OF **SECURITY                HOLDERS****                                     |     | 22 |
|                                                                                                                                                                                                                                         |                                                                                                                          |     |   |
| **ITEM                5.**                                                                                                                                                                                                                   | **OTHER                INFORMATION**                                                                                          |     | 22 |
|                                                                                                                                                                                                                                         |                                                                                                                          |     |   |
| **ITEM                6.**                                                                                                                                                                                                                   | **EXHIBITS**                                                                                                                  |     | 22 |
|                                                                                                                                                                                                                                         |                                                                                                                          |     |   |
|                                                                                                                                                                                                                                         |                                                                                                                          |     |   |
| **SIGNATURES**                                                                                                                                                                                                                               |                                                                                                                          |     |   |

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***Table            of Contents***

**PART      I – FINANCIAL INFORMATION**

**ITEM      1.**
**FINANCIAL      STATEMENTS**

**COMMUNITY      WEST BANCSHARES**

**CONSOLIDATED      BALANCE SHEETS**

|                                                                                                                                                                                                                         |   | **June                30,**       |    |   | **December                31,** |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------|---------|--------|---------------------------------|--------|
|                                                                                                                                                                                                                         |   | **2007**                          |    |   | **2006**                        |   |
|                                                                                                                                                                                                                         |   | **(unaudited)**                   |    |   |                            |   |
| **ASSETS**                                                                                                                                                                                                                   |   | **(in                thousands)** |    |
| Cash                and due from banks                                                                                                                                                                                       |   | $                                 | 5,206   |   |                            | $      | 4,190 |   |
| Federal                funds sold                                                                                                                                                                                            |   |                              | 13,344  |   |                            |   | 7,153 |   |
| Cash                and cash equivalents                                                                                                                                                                                     |   |                              | 18,550  |   |                            |   | 11,343 |   |
| Time                deposits in other financial institutions                                                                                                                                                                 |   |                              | 655     |   |                            |   | 536 |   |
| Investment                securities available-for-sale, at fair value; amortized cost of $21,189                at                June 30, 2007 and $22,340 at December 31, 2006                                            |   |                              | 20,987  |   |                            |   | 22,097 |   |
| Investment                securities held-to-maturity, at amortized cost; fair value of $14,674                at                June 30, 2007 and $10,437 at December 31, 2006                                              |   |                              | 14,830  |   |                            |   | 10,535 |   |
| Federal                Home Loan Bank stock, at cost                                                                                                                                                                         |   |                              | 4,700   |   |                            |   | 4,465 |   |
| Federal                Reserve Bank stock, at cost                                                                                                                                                                           |   |                              | 812     |   |                            |   | 812 |   |
| Loans:                                                                                                                                                                                                                       |   |                              |    |   |                            |   |   |   |
| Loans                held for sale, at lower of cost or fair value                                                                                                                                                           |   |                              | 93,391  |   |                            |   | 75,795 |   |
| Loans                held for investment, net of allowance for loan losses of  $4,047                at June 30, 2007 and $3,926 at December 31, 2006                                                              |   |                              | 391,292 |   |                            |   | 375,777 |   |
| Total                loans                                                                                                                                                                                                   |   |                              | 484,683 |   |                            |   | 451,572 |   |
| Servicing                rights                                                                                                                                                                                              |   |                              | 1,538   |   |                            |   | 1,968 |   |
| Other                real estate owned, net                                                                                                                                                                                  |   |                              | 356     |   |                            |   | 356 |   |
| Premises                and equipment, net                                                                                                                                                                                   |   |                              | 3,020   |   |                            |   | 2,802 |   |
| Other                assets                                                                                                                                                                                                  |   |                              | 11,745  |   |                            |   | 10,129 |   |
| **TOTAL                ASSETS**                                                                                                                                                                                              |   | $                                 | 561,876 |   |                            | $      | 516,615 |   |
| **LIABILITIES**                                                                                                                                                                                                              |   |                              |    |   |                            |   |   |   |
| Deposits:                                                                                                                                                                                                                    |   |                              |    |   |                            |   |   |   |
| Non-interest-bearing                demand                                                                                                                                                                                   |   | $                                 | 33,748  |   |                            | $      | 33,033 |   |
| Interest-bearing                demand                                                                                                                                                                                       |   |                              | 67,627  |   |                            |   | 49,975 |   |
| Savings                                                                                                                                                                                                                      |   |                              | 16,138  |   |                            |   | 14,522 |   |
| Time                certificates                                                                                                                                                                                             |   |                              | 293,569 |   |                            |   | 271,217 |   |
| Total                deposits                                                                                                                                                                                                |   |                              | 411,082 |   |                            |   | 368,747 |   |
| Federal                Home Loan Bank advances                                                                                                                                                                               |   |                              | 96,000  |   |                            |   | 95,000 |   |
| Other                liabilities                                                                                                                                                                                             |   |                              | 6,142   |   |                            |   | 6,048 |   |
| Total                liabilities                                                                                                                                                                                             |   |                              | 513,224 |   |                            |   | 469,795 |   |
| **STOCKHOLDERS'                EQUITY**                                                                                                                                                                                      |   |                              |    |   |                            |   |   |   |
| Common                stock, no par value; 10,000,000*** ***shares                authorized; 5,862,585 shares issued and outstanding at June 30, 2007                and                5,814,568 at December 31, 2006 |   |                              | 31,225  |   |                            |   | 30,794 |   |
| Retained                earnings                                                                                                                                                                                             |   |                              | 17,546  |   |                            |   | 16,169 |   |
| Accumulated                other comprehensive loss, net                                                                                                                                                                     |   |                              | (119    | )      |                            |   | (143 | ) |
| Total                stockholders' equity                                                                                                                                                                                    |   |                              | 48,652  |   |                            |   | 46,820 |   |
| **TOTAL                LIABILITIES AND STOCKHOLDERS’ EQUITY**                                                                                                                                                          |   | $                                 | 561,876 |   |                            | $      | 516,615 |   |

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***Table            of Contents***

**COMMUNITY      WEST BANCSHARES**

**CONSOLIDATED      INCOME STATEMENTS (UNAUDITED)**

|                                                                        |   | **Three                Months Ended**                               |   |   | **Six                Months Ended** |   |
|-----------------------------------------------------------------------------|--------|---------------------------------------------------------------------|--------|--------|-------------------------------------|--------|
|                                                                        |   | **June                30,**                                         |   |   | **June30,**                         |   |
|                                                                        |   | **2007**                                                            |   |   | **2006**                            |   |   | **2007** |   |   | **2006** |   |
|                                                                        |   | **(dollars                in thousands, except per share amounts)** |   |
| **INTEREST                INCOME**                                          |   |                                                                |   |   |                                |   |   |   |   |   |   |   |
| Loans                                                                       |   | $                                                                   | 10,930 |   |                                | $      | 8,899 |   |   | $ | 21,365 |   |   | $ | 17,415 |   |
| Investment                securities                                        |   |                                                                | 459    |   |                                |   | 380 |   |   |   | 903 |   |   |   | 729 |   |
| Other                                                                       |   |                                                                | 235    |   |                                |   | 98 |   |   |   | 404 |   |   |   | 282 |   |
| Total                interest income                                        |   |                                                                | 11,624 |   |                                |   | 9,377 |   |   |   | 22,672 |   |   |   | 18,426 |   |
| **INTEREST                EXPENSE**                                         |   |                                                                |   |   |                                |   |   |   |   |   |   |   |   |   |   |   |
| Deposits                                                                    |   |                                                                | 4,431  |   |                                |   | 3,113 |   |   |   | 8,543 |   |   |   | 5,953 |   |
| Other                borrowings                                             |   |                                                                | 1,199  |   |                                |   | 795 |   |   |   | 2,390 |   |   |   | 1,471 |   |
| Total                interest expense                                       |   |                                                                | 5,630  |   |                                |   | 3,908 |   |   |   | 10,933 |   |   |   | 7,424 |   |
| **NET                INTEREST INCOME**                                      |   |                                                                | 5,994  |   |                                |   | 5,469 |   |   |   | 11,739 |   |   |   | 11,002 |   |
| Provision                for loan losses                                    |   |                                                                | (63    | )      |                                |   | 144 |   |   |   | 222 |   |   |   | 325 |   |
| **NET                INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES**      |   |                                                                | 6,057  |   |                                |   | 5,325 |   |   |   | 11,517 |   |   |   | 10,677 |   |
| **NON-INTEREST                INCOME**                                      |   |                                                                |   |   |                                |   |   |   |   |   |   |   |   |   |   |   |
| Gains                from loan sales, net                                   |   |                                                                | 228    |   |                                |   | 502 |   |   |   | 332 |   |   |   | 826 |   |
| Other                loan fees                                              |   |                                                                | 802    |   |                                |   | 612 |   |   |   | 1,545 |   |   |   | 1,256 |   |
| Other                                                                       |   |                                                                | 372    |   |                                |   | 465 |   |   |   | 700 |   |   |   | 824 |   |
| Total                non-interest income                                    |   |                                                                | 1,402  |   |                                |   | 1,579 |   |   |   | 2,577 |   |   |   | 2,906 |   |
| **NON-INTEREST                EXPENSES**                                    |   |                                                                |   |   |                                |   |   |   |   |   |   |   |   |   |   |   |
| Salaries                and employee benefits                               |   |                                                                | 3,641  |   |                                |   | 3,207 |   |   |   | 7,243 |   |   |   | 6,424 |   |
| Occupancy                and equipment expenses                             |   |                                                                | 635    |   |                                |   | 582 |   |   |   | 1,225 |   |   |   | 1,151 |   |
| Other                operating expenses                                     |   |                                                                | 1,027  |   |                                |   | 898 |   |   |   | 2,034 |   |   |   | 1,622 |   |
| Total                non-interest expenses                                  |   |                                                                | 5,303  |   |                                |   | 4,687 |   |   |   | 10,502 |   |   |   | 9,197 |   |
| Income                before provision for income taxes                     |   |                                                                | 2,156  |   |                                |   | 2,217 |   |   |   | 3,592 |   |   |   | 4,386 |   |
| Provision                for income taxes                                   |   |                                                                | 904    |   |                                |   | 928 |   |   |   | 1,514 |   |   |   | 1,838 |   |
|                                                                        |   |                                                                |   |   |                                |   |   |   |   |   |   |   |   |   |   |   |
| **NET                INCOME**                                               |   | $                                                                   | 1,252  |   |                                | $      | 1,289 |   |   | $ | 2,078 |   |   | $ | 2,548 |   |
|                                                                        |   |                                                                |   |   |                                |   |   |   |   |   |   |   |   |   |   |   |
| **INCOME                PER SHARE – BASIC**                           |   | $                                                                   | .21    |   |                                | $      | .22 |   |   | $ | .36 |   |   | $ | .44 |   |
| **INCOME                PER SHARE – DILUTED**                         |   | $                                                                   | .21    |   |                                | $      | .21 |   |   | $ | .34 |   |   | $ | .43 |   |
| Basic                weighted average number of common shares outstanding   |   |                                                                | 5,856  |   |                                |   | 5,781 |   |   |   | 5,840 |   |   |   | 5,774 |   |
| Diluted                weighted average number of common shares outstanding |   |                                                                | 6,038  |   |                                |   | 6,000 |   |   |   | 6,035 |   |   |   | 5,988 |   |

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***Table            of Contents***

**COMMUNITY      WEST BANCSHARES**

**CONSOLIDATED      STATEMENT OF STOCKHOLDERS’ EQUITY**

**(UNAUDITED)**

|                                                                           |   |                              |   |   |         |   |   | **Accumulated**   |   |   |                             |   |
|--------------------------------------------------------------------------------|--------|-----------------------------------|--------|--------|--------------|--------|--------|-------------------|--------|--------|----------------------------------|--------|
|                                                                           |   |                              |   |   |         |   |   | **Other**         |   |   | **Total**                        |   |
|                                                                           |   | **Common                Stock**   |   |   | **Retained** |   |   | **Comprehensive** |   |   | **Stockholders’**          |   |
|                                                                           |   | **Shares**                        |   |   | **Amount**   |   |   | **Earnings**      |   |   | **Income                (Loss)** |   |   | **Equity** |   |
|                                                                           |   |                              |   |   |         |   |   |              |   |   |                             |   |   |   |   |
|                                                                           |   | **(in                thousands)** |   |
| **BALANCES                AT**                                                 |   |                              |   |   |         |   |   |              |   |   |                             |   |   |   |   |
| **JANUARY                1, 2007**                                             |   |                              | 5,815  |   |         | $      | 30,794 |              |   | $      | 16,169                           |   |   | $ | (143 | ) |   | $ | 46,820 |   |
| Exercise                of stock options                                       |   |                              | 48     |   |         |   | 304    |              |   |   |                             |   |   |   |   |   |   |   | 304 |   |
| Stock-based                compensation                                        |   |                              |   |   |         |   | 87     |              |   |   |                             |   |   |   |   |   |   |   | 87 |   |
| Tax                benefit from stock options                                  |   |                              |   |   |         |   | 40     |              |   |   |                             |   |   |   |   |   |   |   | 40 |   |
| Comprehensive                income:                                           |   |                              |   |   |         |   |   |              |   |   |                             |   |   |   |   |   |   |   | 2,078 |   |
| Net                income                                                      |   |                              |   |   |         |   |   |              |   |   | 2,078                            |   |   |   |   |   |   |   |   |   |
| Change                in unrealized loss on securities available-for-sale, net |   |                              |   |   |         |   |   |              |   |   |                             |   |   |   | 24 |   |   |   | 24 |   |
| Comprehensive                income                                            |   |                              |   |   |         |   |   |              |   |   |                             |   |   |   |   |   |   |   | 2,102 |   |
| Cash                dividends paid                                             |   |                              |   |   |         |   |   |              |   |   |                             |   |   |   |   |   |   |   |   |   |
| ($0.12                per share)                                               |   |                              |   |   |         |   |   |              |   |   | (701                             | )      |   |   |   |   |   |   | (701 | ) |
| **BALANCES                AT**                                                 |   |                              |   |   |         |   |   |              |   |   |                             |   |   |   |   |   |   |   |   |   |
| **JUNE                30, 2007**                                               |   |                              | 5,863  |   |         | $      | 31,225 |              |   | $      | 17,546                           |   |   | $ | (119 | ) |   | $ | 48,652 |   |

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***Table            of Contents***

**COMMUNITY      WEST BANCSHARES**

**CONSOLIDATED      STATEMENTS OF CASH FLOWS (UNAUDITED)**

|                                                                                                            |   | **Six                Months Ended June 30,** |    |
|-----------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------|---------|
|                                                                                                            |   | **2007**                                     |    |   | **2006** |   |
|                                                                                                            |   | **(in                thousands)**            |    |
| **CASH                FLOWS FROM OPERATING ACTIVITIES:**                                                        |   |                                         |    |   |   |   |
| Net                income                                                                                       |   | $                                            | 2,078   |   |   | $ | 2,548 |   |
| Adjustments                to reconcile net income to net cash provided by operating                activities: |   |                                         |    |   |   |   |   |   |
| Provision                for loan losses                                                                        |   |                                         | 222     |   |   |   | 325 |   |
| Depreciation                and amortization                                                                    |   |                                         | 231     |   |   |   | 243 |   |
| Stock-based                compensation                                                                         |   |                                         | 87      |   |   |   | 79 |   |
| Net                amortization of discounts and premiums for investment                securities              |   |                                         | 3       |   |   |   | 7 |   |
| Gains                on:                                                                                        |   |                                         |    |   |   |   |   |   |
| Sale                of other real estate owned                                                                  |   |                                         | -       |   |   |   | 17 |   |
| Sale                of loans held for sale                                                                      |   |                                         | (332    | ) |   |   | (448 | ) |
| Loans                originated for sale, net                                                                   |   |                                         | 2,041   |   |   |   | 2,473 |   |
| Changes                in:                                                                                      |   |                                         |    |   |   |   |   |   |
| Servicing                rights, net of amortization and valuation adjustments                                  |   |                                         | 430     |   |   |   | 482 |   |
| Other                assets                                                                                     |   |                                         | (1,657  | ) |   |   | 609 |   |
| Other                liabilities                                                                                |   |                                         | 158     |   |   |   | (27 | ) |
| Net                cash provided by operating activities                                                        |   |                                         | 3,261   |   |   |   | 6,308 |   |
| **CASH                FLOWS FROM INVESTING ACTIVITIES:**                                                        |   |                                         |    |   |   |   |   |   |
| Purchase                of held-to-maturity securities                                                          |   |                                         | (5,930  | ) |   |   | - |   |
| Purchase                of available-for-sale securities                                                        |   |                                         | -       |   |   |   | (3,976 | ) |
| Purchase                of Federal Home Loan Bank stock                                                         |   |                                         | (118    | ) |   |   | (344 | ) |
| Federal                Home Loan Bank stock dividend                                                            |   |                                         | (117    | ) |   |   | (69 | ) |
| Principal                pay downs and maturities of held-to-maturity securities                                |   |                                         | 1,631   |   |   |   | 1,046 |   |
| Principal                pay downs and maturities of available-for-sale securities                              |   |                                         | 1,152   |   |   |   | 2,877 |   |
| Loan                originations and principal collections, net                                                 |   |                                         | (35,042 | ) |   |   | (29,745 | ) |
| Proceeds                from sale of other real estate owned                                                    |   |                                         | -       |   |   |   | 99 |   |
| Net                increase in time deposits in other financial institutions                                    |   |                                         | (119    | ) |   |   | (2 | ) |
| Purchase                of premises and equipment, net                                                          |   |                                         | (449    | ) |   |   | (322 | ) |
| Net                cash used in investing activities                                                            |   |                                         | (38,992 | ) |   |   | (30,436 | ) |
| **CASH                FLOWS FROM FINANCING ACTIVITIES:**                                                        |   |                                         |    |   |   |   |   |   |
| Exercise                of stock options                                                                        |   |                                         | 304     |   |   |   | 219 |   |
| Cash                dividends paid on common stock                                                              |   |                                         | (701    | ) |   |   | (635 | ) |
| Net                increase (decrease)  in demand deposits and savings                accounts        |   |                                         | 19,983  |   |   |   | (15,346 | ) |
| Net                increase in time certificates of deposit                                                     |   |                                         | 22,352  |   |   |   | 29,991 |   |
| Proceeds                from Federal Home Loan Bank advances                                                    |   |                                         | 32,000  |   |   |   | 12,000 |   |
| Repayment                of Federal Home Loan Bank advances                                                     |   |                                         | (31,000 | ) |   |   | (4,000 | ) |
| Net                cash provided by financing activities                                                        |   |                                         | 42,938  |   |   |   | 22,229 |   |
| **NET                INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS**                                         |   |                                         | 7,207   |   |   |   | (1,899 | ) |
| **CASH                AND CASH EQUIVALENTS, BEGINNING OF PERIOD**                                               |   |                                         | 11,343  |   |   |   | 13,732 |   |
| **CASH                AND CASH EQUIVALENTS, END OF PERIOD**                                                     |   | $                                            | 18,550  |   |   | $ | 11,833 |   |
|                                                                                                            |   |                                         |    |   |   |   |   |   |
| Supplemental                Disclosure of Cash Flow Information:                                                |   |                                         |    |   |   |   |   |   |
| Cash                paid for interest                                                                           |   | $                                            | 8,820   |   |   | $ | 6,568 |   |
| Cash                paid for income taxes                                                                       |   |                                         | 3,097   |   |   |   | 2,016 |   |
| Supplemental                Disclosure of Noncash Investing Activity:                                           |   |                                         |    |   |   |   |   |   |
| Transfers                to other real estate owned                                                             |   |                                         | -       |   |   |   | 116 |   |

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***Table            of Contents***

**COMMUNITY      WEST BANCSHARES**

**NOTES      TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS**

| **1.** | **SUMMARY                OF SIGNIFICANT ACCOUNTING                POLICIES** |
|--------|------------------------------------------------------------------------------|

***Provision      and Allowance for Loan Losses***
**– **

|   | · | SBA                – All loans are reviewed and classified loans are assigned a specific                allowance.  Those not classified are assigned a pass                rating.  A migration analysis and various portfolio specific                factors are used to calculate the required allowance on those pass                loans. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Relationship                Banking – Includes commercial, commercial real estate and consumer                loans.  Classified loans are assigned a specific                allowance.  A migration analysis and various portfolio specific                factors are used to calculate the required allowance on the remaining                pass                loans. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Manufactured                Housing – An allowance is calculated on the basis of historical loss                experience, risk rating, which is a combination of delinquency, value                of                collateral on classified loans and perceived risk in the product                line. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Securitized                Loans – The Company considers this a homogeneous portfolio and calculates                the allowance based on statistical information provided by the                servicer.  Charge-off history is calculated based on two                methodologies; a 12-month historical trend analysis and by delinquency                information.  The highest requirement of the two methods is                used. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

***Table            of Contents***

***Servicing      Rights***
* *
* *

***Other      Real Estate Owned***

***Recent      Accounting Pronouncements***

| **2.** | **LOAN                SALES AND SERVICING** |
|--------|---------------------------------------------|

**SBA      Loan Sales - **

----

***Table            of Contents***

***Mortgage      Loan Sales***

| **3.** | **LOANS                HELD FOR INVESTMENT** |
|--------|----------------------------------------------|

|                                                   |   | **June                30,**       |    |   | **December                31,** |   |
|--------------------------------------------------------|--------|-----------------------------------|---------|--------|---------------------------------|--------|
|                                                   |   | **2007**                          |    |   | **2006**                        |   |
|                                                   |   | **(in                thousands)** |    |
| Commercial                                             |   | $                                 | 62,724  |   |                            | $      | 53,725 |   |
| Real                estate                             |   |                              | 129,834 |   |                            |   | 135,902 |   |
| SBA                                                    |   |                              | 30,040  |   |                            |   | 29,712 |   |
| Manufactured                housing                    |   |                              | 156,437 |   |                            |   | 142,804 |   |
| Securitized                                            |   |                              | 8,674   |   |                            |   | 9,950 |   |
| Other                installment                       |   |                              | 8,223   |   |                            |   | 8,301 |   |
|                                                   |   |                              | 395,932 |   |                            |   | 380,394 |   |
| Less:                                                  |   |                              |    |   |                            |   |   |   |
| Allowance                for loan losses               |   |                              | 4,047   |   |                            |   | 3,926 |   |
| Deferred                fees, net of costs             |   |                              | 85      |   |                            |   | 17 |   |
| Purchased                premiums on securitized loans |   |                              | (97     | )      |                            |   | (128 | ) |
| Discount                on SBA loans                   |   |                              | 605     |   |                            |   | 802 |   |
| Loans                held for investment, net          |   | $                                 | 391,292 |   |                            | $      | 375,777 |   |

|                                                      |   | **Three                Months Ended**                               |   |
|-----------------------------------------------------------|--------|---------------------------------------------------------------------|--------|
|                                                      |   |                  **June                30,**    |   |
|                                                      |   | **2007**                                                            |   |   | **2006** |   |
|                                                      |   | **(in                thousands)**                                   |   |
| Balance,                beginning of period               |   | $                                                                   | 4,110  |   |   | $ | 3,908 |   |
| Provision                for loan losses                  |   |                                                                | (63    | ) |   |   | 144 |   |
| Loans                charged off                          |   |                                                                | (37    | ) |   |   | (104 | ) |
| Recoveries                on loans previously charged off |   |                                                                | 37     |   |   |   | 49 |   |
| Balance,                end of period                     |   | $                                                                   | 4,047  |   |   | $ | 3,997 |   |

|                                                      |   | **Six                Months Ended** |   |
|-----------------------------------------------------------|--------|-------------------------------------|--------|
|                                                      |   | **June                30,**    |   |
|                                                      |   | **2007**                            |   |   | **2006** |   |
|                                                      |   | **(in                thousands)**   |   |
| Balance,                beginning of period               |   | $                                   | 3,926  |   |   | $ | 3,954 |   |
| Provision                for loan losses                  |   |                                | 222    |   |   |   | 325 |   |
| Loans                charged off                          |   |                                | (180   | ) |   |   | (336 | ) |
| Recoveries                on loans previously charged off |   |                                | 79     |   |   |   | 54 |   |
| Balance,                end of period                     |   | $                                   | 4,047  |   |   | $ | 3,997 |   |

----

***Table            of Contents***

|                                                                         |   | **June                    30,**       |   |   | **December                    31,** |   |
|------------------------------------------------------------------------------|--------|---------------------------------------|--------|--------|-------------------------------------|--------|
|                                                                         |   | **2007**                              |   |   | **2006**                            |   |
|                                                                         |   | **(in                    thousands)** |   |
| Impaired                    loans without specific valuation allowances      |   | $                                     | 38     |   |                                | $      | 63 |   |
| Impaired                    loans with specific valuation allowances         |   |                                  | 6,271  |   |                                |   | 5,145 |   |
| Specific                    valuation allowances allocated to impaired loans |   |                                  | (871   | )      |                                |   | (641 | ) |
| Impaired                    loans, net                                       |   | $                                     | 5,438  |   |                                | $      | 4,567 |   |
|                                                                         |   |                                  |   |   |                                |   |   |   |
| Average                    investment in impaired loans                      |   | $                                     | 6,128  |   |                                | $      | 4,074 |   |

| **4.** | **EARNINGS                PER SHARE** |
|--------|---------------------------------------|

*Earnings      per share – Basic*
*Earnings per share –Diluted*

|                                                   |   | **Three                Months Ended**                         |   |   | **Six                Months Ended **  |   |
|--------------------------------------------------------|--------|--------------------------------------------------------------------|--------|--------|-------------------------------------------------|--------|
|                                                   |   |    ** June                30,**                |   |   | **June                30,**                     |   |
|                                                   |   | **2007**                                                           |   |   | **2006**                                        |   |   | **2007** |   |   | **2006** |   |
|                                                   |   | **(dollars                in thousands except per share amounts)** |   |
| Weighted                average shares – Basic   |   |                                                               | 5,856  |   |                                            |   | 5,781 |   |   |   | 5,840 |   |   |   | 5,774 |   |
| Dilutive                effect of options              |   |                                                               | 182    |   |                                            |   | 219 |   |   |   | 195 |   |   |   | 214 |   |
| Weighted                average shares – Diluted |   |                                                               | 6,038  |   |                                            |   | 6,000 |   |   |   | 6,035 |   |   |   | 5,988 |   |
|                                                   |   |                                                               |   |   |                                            |   |   |   |   |   |   |   |   |   |   |   |
| Net                income                              |   | $                                                                  | 1,252  |   |                                            | $      | 1,289 |   |   | $ | 2,078 |   |   | $ | 2,548 |   |
| Earnings                per share – Basic        |   |                                                               | .21    |   |                                            |   | .22 |   |   |   | .36 |   |   |   | .44 |   |
| Earnings                per share – Diluted      |   |                                                               | .21    |   |                                            |   | .21 |   |   |   | .34 |   |   |   | .43 |   |

| **5.** | **BORROWINGS** |
|--------|----------------|

***Federal      Home Loan Bank Advances***
*– *

----

***Table            of Contents***

| **ITEM                2.** | **MANAGEMENT'S                DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF                OPERATIONS** |
|----------------------------|-------------------------------------------------------------------------------------------------------------------------|

***Forward      Looking Statements***

***Overview      of Earnings Performance***

|   | · | a                24.0% increase in interest income primarily due to higher average                loan                balances which were $483 million for the second quarter 2007 compared                to                $402 million for the same period of                2006 |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | an                interest rate environment that continues to compress margins, contributing                to a slight decline in net interest margin to 4.45% for the second                quarter  2007 compared to 4.93% for the same period of                2006 |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | decline                in gains on loan sales as less SBA loans were sold in the second                quarter  2007 compared to                2006 |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | stable                overall portfolio credit quality |
|--------|--------|--------------------------------------------------------|

|   | · | an                increase in non-interest expenses primarily the result of the Company’s                focus on growth which included a new branch opened in the fourth                quarter                2006 |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

***Critical      Accounting Policies***

***Recent      Accounting Pronouncements***

----

***Table            of Contents***

***Results      of****Operations –****Second Quarter      Comparison***

|                                                               |   | **Three                Months ****Ended**                      |   |   |               |   |
|--------------------------------------------------------------------|--------|---------------------------------------------------------------------|--------|--------|--------------------|--------|
|                                                               |   |    **June                30,**                       |   |   | **Increase**  |   |
|                                                               |   | **2007**                                                            |   |   | **2006**           |   |   | **(Decrease)** |   |
|                                                               |   | **(dollars                in thousands, except per share amounts)** |   |
| Interest                income                                     |   | $                                                                   | 11,624 |   |               | $      | 9,377 |   |   | $ | 2,247 |   |
| Interest                expense                                    |   |                                                                | 5,630  |   |               |   | 3,908 |   |   |   | 1,722 |   |
| Net                interest income                                 |   |                                                                | 5,994  |   |               |   | 5,469 |   |   |   | 525 |   |
| Provision                for loan losses                           |   |                                                                | (63    | )      |               |   | 144 |   |   |   | (207 | ) |
| Net                interest income after provision for loan losses |   |                                                                | 6,057  |   |               |   | 5,325 |   |   |   | 732 |   |
| Non-interest                income                                 |   |                                                                | 1,402  |   |               |   | 1,579 |   |   |   | (177 | ) |
| Non-interest                expenses                               |   |                                                                | 5,303  |   |               |   | 4,687 |   |   |   | 616 |   |
| Income                before provision for income taxes            |   |                                                                | 2,156  |   |               |   | 2,217 |   |   |   | (61 | ) |
| Provision                for income taxes                          |   |                                                                | 904    |   |               |   | 928 |   |   |   | (24 | ) |
| Net                income                                          |   | $                                                                   | 1,252  |   |               | $      | 1,289 |   |   | $ | (37 | ) |
| Earnings                per share – Basic                    |   | $                                                                   | .21    |   |               | $      | .22 |   |   | $ | (.01 | ) |
| Earnings                per share – Diluted                  |   | $                                                                   | .21    |   |               | $      | .21 |   |   | $ | - |   |
| Comprehensive                income                                |   | $                                                                   | 1,261  |   |               | $      | 1,220 |   |   | $ | 41 |   |

----

***Table            of Contents***

|                                              |   | **Three                Months Ended**  |   |
|---------------------------------------------------|--------|----------------------------------------|--------|
|                                              |   | **June                30,**            |   |
|                                              |   | **2007                versus 2006**    |   |
|                                              |   | **Total**                              |   |   | **Change                  due to**  |   |
|                                              |   |                  **change**  |   |   | **Rate** |   |   |  **Volume** |   |
|                                              |   | **(in                thousands)**      |   |
| Loans,                net                         |   | $                                      | 2,031  |   |   | $ | 231 |   |   | $ | 1,800 |   |
| Investment                securities              |   |                                   | 79     |   |   |   | 33 |   |   |   | 46 |   |
| Other                                             |   |                                   | 137    |   |   |   | 11 |   |   |   | 126 |   |
| Total                interest-earning assets      |   |                                   | 2,247  |   |   |   | 275 |   |   |   | 1,972 |   |
|                                              |   |                                   |   |   |   |   |   |   |   |   |   |   |
| Deposits                                          |   |                                   | 1,318  |   |   |   | 559 |   |   |   | 759 |   |
| Other                borrowings                   |   |                                   | 404    |   |   |   | 39 |   |   |   | 365 |   |
| Total                interest-bearing liabilities |   |                                   | 1,722  |   |   |   | 598 |   |   |   | 1,124 |   |
| Net                interest income                |   | $                                      | 525    |   |   | $ | (323 | ) |   | $ | 848 |   |

*Net      Interest Income*

*Provision      for Loan Losses*

*Non-Interest      Income*

*Non-Interest      Expenses*

----

***Table            of Contents***

***Results      of Operations –Six-Month Comparison***

|                                                               |   | **Six                  Months Ended**                |   |   |         |   |
|--------------------------------------------------------------------|--------|---------------------------------------------------------------------|--------|--------|--------------|--------|
|                                                               |   | **June                30,**                          |   |   | **Increase** |   |
|                                                               |   | **2007**                                                            |   |   | **2006**     |   |   | **(Decrease)** |   |
|                                                               |   | **(dollars                in thousands, except per share amounts)** |   |
| Interest                income                                     |   | $                                                                   | 22,672 |   |         | $      | 18,426 |   |   | $ | 4,246 |   |
| Interest                expense                                    |   |                                                                | 10,933 |   |         |   | 7,424 |   |   |   | 3,509 |   |
| Net                interest income                                 |   |                                                                | 11,739 |   |         |   | 11,002 |   |   |   | 737 |   |
| Provision                for loan losses                           |   |                                                                | 222    |   |         |   | 325 |   |   |   | (103 | ) |
| Net                interest income after provision for loan losses |   |                                                                | 11,517 |   |         |   | 10,677 |   |   |   | 840 |   |
| Non-interest                income                                 |   |                                                                | 2,577  |   |         |   | 2,906 |   |   |   | (329 | ) |
| Non-interest                expenses                               |   |                                                                | 10,502 |   |         |   | 9,197 |   |   |   | 1,305 |   |
| Income                before provision for income taxes            |   |                                                                | 3,592  |   |         |   | 4,386 |   |   |   | (794 | ) |
| Provision                for income taxes                          |   |                                                                | 1,514  |   |         |   | 1,838 |   |   |   | (324 | ) |
| Net                income                                          |   | $                                                                   | 2,078  |   |         | $      | 2,548 |   |   | $ | (470 | ) |
| Earnings                per share – Basic                    |   | $                                                                   | .36    |   |         | $      | .44 |   |   | $ | (.08 | ) |
| Earnings                per share – Diluted                  |   | $                                                                   | .34    |   |         | $      | .43 |   |   | $ | (.09 | ) |
| Comprehensive                income                                |   | $                                                                   | 2,102  |   |         | $      | 2,429 |   |   | $ | (327 | ) |

|                                              |   | **Six                Months Ended** |                                                                                    |
|---------------------------------------------------|--------|-------------------------------------|-----------------------------------------------------------------------------------------|
|                                              |   | **June                30,**         |                                                                                    |
|                                              |   | **2007                versus 2006** |                                                                                    |
|                                              |   | **Total**                           |                                                                                    |   | ****Change                due to** ** |   |
|                                              |   |                                | **change**                                                                         |   |   |   | **Rate ** |   |   |   | **Volume**  |   |
|                                              |   |                                |     **(in                thousands)**      |   |
| Loans,                net                         |   | $                                   | 3,950                                                                                   |   |   | $ | 350 |   |   | $ | 3,600 |   |
| Investment                securities              |   |                                | 174                                                                                     |   |   |   | 79 |   |   |   | 95 |   |
| Other                                             |   |                                | 122                                                                                     |   |   |   | 44 |   |   |   | 78 |   |
| Total                interest-earning assets      |   |                                | 4,246                                                                                   |   |   |   | 473 |   |   |   | 3,773 |   |
|                                              |   |                                |                                                                                    |   |   |   |   |   |   |   |   |   |
| Deposits                                          |   |                                | 2,590                                                                                   |   |   |   | 1,192 |   |   |   | 1,398 |   |
| Other                borrowings                   |   |                                | 919                                                                                     |   |   |   | 141 |   |   |   | 778 |   |
| Total                interest-bearing liabilities |   |                                | 3,509                                                                                   |   |   |   | 1,333 |   |   |   | 2,176 |   |
| Net                interest income                |   | $                                   | 737                                                                                     |   |   | $ | (860 | ) |   | $ | 1,597 |   |

*Net      Interest Income*

----

***Table            of Contents***

*Provision      for Loan Losses*

*Non-Interest      Income*

*Non-Interest      Expenses*

***Interest      Rates and Differentials***

|                                                                      |   | **Three                Months **          |    |   | **Six                Months**  |   |
|---------------------------------------------------------------------------|--------|-----------------------------------------------------|---------|--------|-------------------------------------|--------|
|                                                                      |   |    **Ended                June 30,** |    |   | **Ended                June 30,**   |   |
|                                                                      |   | **2007**                                            |    |   | **2006**                            |   |   | **2007** |   |   | **2006** |   |
| **Interest-earning                assets:**                               |   | **(dollars                in thousands)**           |    |
| Interest-earning                deposits in other financial institutions: |   |                                                |    |   |                                |   |   |   |   |   |   |   |
| Average                balance                                            |   | $                                                   | 839     |   |                                | $      | 510 |   |   | $ | 831 |   |   | $ | 536 |   |
| Interest                income                                            |   |                                                | 9       |   |                                |   | 5 |   |   |   | 19 |   |   |   | 11 |   |
| Average                yield                                              |   |                                                | 4.35    | %      |                                |   | 4.21 | % |   |   | 4.71 | % |   |   | 4.14 | % |
| Federal                funds sold:                                        |   |                                                |    |   |                                |   |   |   |   |   |   |   |   |   |   |   |
| Average                balance                                            |   | $                                                   | 17,126  |   |                                | $      | 7,681 |   |   | $ | 14,770 |   |   | $ | 12,010 |   |
| Interest                income                                            |   |                                                | 226     |   |                                |   | 93 |   |   |   | 385 |   |   |   | 271 |   |
| Average                yield                                              |   |                                                | 5.29    | %      |                                |   | 4.85 | % |   |   | 5.26 | % |   |   | 4.57 | % |
| Investment                securities:                                     |   |                                                |    |   |                                |   |   |   |   |   |   |   |   |   |   |   |
| Average                balance                                            |   | $                                                   | 38,934  |   |                                | $      | 35,030 |   |   | $ | 38,590 |   |   | $ | 34,536 |   |
| Interest                income                                            |   |                                                | 459     |   |                                |   | 380 |   |   |   | 903 |   |   |   | 729 |   |
| Average                yield                                              |   |                                                | 4.73    | %      |                                |   | 4.36 | % |   |   | 4.72 | % |   |   | 4.26 | % |
| Gross                loans, excluding securitized:                        |   |                                                |    |   |                                |   |   |   |   |   |   |   |   |   |   |   |
| Average                balance                                            |   | $                                                   | 473,658 |   |                                | $      | 388,680 |   |   | $ | 466,254 |   |   | $ | 380,025 |   |
| Interest                income                                            |   |                                                | 10,651  |   |                                |   | 8,508 |   |   |   | 20,779 |   |   |   | 16,566 |   |
| Average                yield                                              |   |                                                | 9.02    | %      |                                |   | 8.78 | % |   |   | 8.99 | % |   |   | 8.79 | % |
| Securitized                loans:                                         |   |                                                |    |   |                                |   |   |   |   |   |   |   |   |   |   |   |
| Average                balance                                            |   | $                                                   | 9,100   |   |                                | $      | 13,037 |   |   | $ | 9,431 |   |   | $ | 13,640 |   |
| Interest                income                                            |   |                                                | 279     |   |                                |   | 391 |   |   |   | 586 |   |   |   | 849 |   |
| Average                yield                                              |   |                                                | 12.31   | %      |                                |   | 12.03 | % |   |   | 12.53 | % |   |   | 12.55 | % |
| **Total                interest-earning assets:**                         |   |                                                |    |   |                                |   |   |   |   |   |   |   |   |   |   |   |
| Average                balance                                            |   | $                                                   | 539,657 |   |                                | $      | 444,938 |   |   | $ | 529,876 |   |   | $ | 440,747 |   |
| Interest                income                                            |   |                                                | 11,624  |   |                                |   | 9,377 |   |   |   | 22,672 |   |   |   | 18,426 |   |
| Average                yield                                              |   |                                                | 8.64    | %      |                                |   | 8.45 | % |   |   | 8.63 | % |   |   | 8.43 | % |

----

***Table            of Contents***

|                                                   |   | **Three                Months **          |    |   | **Six                Months**      |   |
|--------------------------------------------------------|--------|-----------------------------------------------------|---------|--------|-----------------------------------------|--------|
|                                                   |   |    **Ended                June 30,** |    |   | ** Ended                June 30,** |   |
|                                                   |   | **2007**                                            |    |   | **2006**                                |   |   | **2007** |   |   | **2006** |   |
| **Interest-bearing                liabilities:**       |   | **(dollars                in thousands)**           |    |
| Interest-bearing                demand deposits:       |   |                                                |    |
| Average                balance                         |   | $                                                   | 60,186  |   |                                    | $      | 57,517 |   |   | $ | 55,187 |   |   | $ | 61,244 |   |
| Interest                expense                        |   |                                                | 551     |   |                                    |   | 448 |   |   |   | 958 |   |   |   | 883 |   |
| Average                cost of funds                   |   |                                                | 3.67    | %      |                                    |   | 3.12 | % |   |   | 3.50 | % |   |   | 2.91 | % |
| Savings                deposits:                       |   |                                                |    |   |                                    |   |   |   |   |   |   |   |   |   |   |   |
| Average                balance                         |   | $                                                   | 15,537  |   |                                    | $      | 15,109 |   |   | $ | 15,429 |   |   | $ | 15,330 |   |
| Interest                expense                        |   |                                                | 137     |   |                                    |   | 109 |   |   |   | 266 |   |   |   | 210 |   |
| Average                cost of funds                   |   |                                                | 3.53    | %      |                                    |   | 2.89 | % |   |   | 3.48 | % |   |   | 2.76 | % |
| Time                certificates of deposit:           |   |                                                |    |   |                                    |   |   |   |   |   |   |   |   |   |   |   |
| Average                balance                         |   | $                                                   | 292,388 |   |                                    | $      | 234,723 |   |   | $ | 289,131 |   |   | $ | 229,821 |   |
| Interest                expense                        |   |                                                | 3,743   |   |                                    |   | 2,556 |   |   |   | 7,319 |   |   |   | 4,860 |   |
| Average                cost of funds                   |   |                                                | 5.13    | %      |                                    |   | 4.37 | % |   |   | 5.10 | % |   |   | 4.26 | % |
| Other                borrowings:                       |   |                                                |    |   |                                    |   |   |   |   |   |   |   |   |   |   |   |
| Average                balance                         |   | $                                                   | 97,581  |   |                                    | $      | 68,783 |   |   | $ | 97,099 |   |   | $ | 65,478 |   |
| Interest                expense                        |   |                                                | 1,199   |   |                                    |   | 795 |   |   |   | 2,390 |   |   |   | 1,471 |   |
| Average                cost of funds                   |   |                                                | 4.93    | %      |                                    |   | 4.64 | % |   |   | 4.96 | % |   |   | 4.53 | % |
| **Total                interest-bearing liabilities:** |   |                                                |    |   |                                    |   |   |   |   |   |   |   |   |   |   |   |
| Average                balance                         |   | $                                                   | 465,692 |   |                                    | $      | 376,132 |   |   | $ | 456,846 |   |   | $ | 371,873 |   |
| Interest                expense                        |   |                                                | 5,630   |   |                                    |   | 3,908 |   |   |   | 10,933 |   |   |   | 7,424 |   |
| Average                cost of funds                   |   |                                                | 4.85    | %      |                                    |   | 4.17 | % |   |   | 4.83 | % |   |   | 4.03 | % |
|                                                   |   |                                                |    |   |                                    |   |   |   |   |   |   |   |   |   |   |   |
| **Net                interest income**                 |   | $                                                   | 5,994   |   |                                    | $      | 5,469 |   |   | $ | 11,739 |   |   | $ | 11,002 |   |
| **Net                interest spread**                 |   |                                                | 3.79    | %      |                                    |   | 4.29 | % |   |   | 3.80 | % |   |   | 4.40 | % |
| **Net                interest margin**                 |   |                                                | 4.45    | %      |                                    |   | 4.93 | % |   |   | 4.47 | % |   |   | 5.03 | % |

**.**

----

***Table            of Contents***

***Financial      Condition***

|                                                         |   |                              |    |   |                                        |   |    |                     |   |   | **Percent                of **  |   |
|--------------------------------------------------------------|--------|-----------------------------------|---------|--------|---------------------------------------------|--------|---------|--------------------------|--------|--------|-------------------------------------------|--------|
| **Selected                balance sheet accounts**           |   | **June                30,**  |    |   | **December                31, **  |   |    | **Increase **  |   |   |  **Increase**                        |   |
| **(** **dollars              in thousands)**            |   |  **2007**                    |    |   | **2006**                                    |   |    | **(Decrease)**           |   |   | **(Decrease)**                            |   |
|                                                         |   |                              |    |   |                                        |   |    |                     |   |   |                                      |   |
| Cash                and cash equivalents                     |   | $                                 | 18,550  |   |                                        | $      | 11,343  |                     |   | $      | 7,207                                     |   |   |   | 63.5 | % |
| Time                deposits in other financial institutions |   |                              | 655     |   |                                        |   | 536     |                     |   |   | 119                                       |   |   |   | 22.2 | % |
| Investment                securities available-for-sale      |   |                              | 20,987  |   |                                        |   | 22,097  |                     |   |   | (1,110                                    | )      |   |   | (5.0 | %) |
| Investment                securities held-to-maturity        |   |                              | 14,830  |   |                                        |   | 10,535  |                     |   |   | 4,295                                     |   |   |   | 40.8 | % |
| Federal                Home Loan Bank stock, at cost         |   |                              | 4,700   |   |                                        |   | 4,465   |                     |   |   | 235                                       |   |   |   | 5.3 | % |
| Federal                Reserve Bank stock, at cost           |   |                              | 812     |   |                                        |   | 812     |                     |   |   | -                                         |   |   |   | - |   |
| Loans-held                for sale                           |   |                              | 93,391  |   |                                        |   | 75,795  |                     |   |   | 17,596                                    |   |   |   | 23.2 | % |
| Loans-held                for investment, net                |   |                              | 391,292 |   |                                        |   | 375,777 |                     |   |   | 15,515                                    |   |   |   | 4.1 | % |
| Total                Assets                                  |   |                              | 561,876 |   |                                        |   | 516,615 |                     |   |   | 45,261                                    |   |   |   | 8.8 | % |
|                                                         |   |                              |    |   |                                        |   |    |                     |   |   |                                      |   |   |   |   |   |
| Total                Deposits                                |   |                              | 411,082 |   |                                        |   | 368,747 |                     |   |   | 42,335                                    |   |   |   | 11.5 | % |
| Federal                Home Loan Bank advances               |   |                              | 96,000  |   |                                        |   | 95,000  |                     |   |   | 1,000                                     |   |   |   | 1.1 | % |
|                                                         |   |                              |    |   |                                        |   |    |                     |   |   |                                      |   |   |   |   |   |
| Total                Stockholders' Equity                    |   |                              | 48,652  |   |                                        |   | 46,820  |                     |   |   | 1,832                                     |   |   |   | 3.9 | % |

|                                                     |   |                                      |    |   |                            |   |    |           |   |   | **Percent                of** |   |   |
|----------------------------------------------------------|--------|-------------------------------------------|---------|--------|---------------------------------|--------|---------|----------------|--------|--------|-------------------------------|--------|--------|
|                                                     |   | **June                30,**               |    |   | **December                31,** |   |    | **Increase**   |   |   | **Increase **       |   |   |
|                                                     |   |  **2007**                            |    |   | **2006**                        |   |    | **(Decrease)** |   |   | **(Decrease)**           |   |   |
|                                                     |   | **(dollars                in thousands)** |    |   |                            |   |    |
| Non-interest-bearing                deposits             |   | $                                         | 33,748  |   |                            | $      | 33,033  |           |   | $      | 715                           |   |   |   | 2.2 | % |
| Interest-bearing                deposits                 |   |                                      | 67,627  |   |                            |   | 49,975  |           |   |   | 17,652                        |   |   |   | 35.3 | % |
| Savings                                                  |   |                                      | 16,138  |   |                            |   | 14,522  |           |   |   | 1,616                         |   |   |   | 11.1 | % |
| Time                certificates of $100,000 or more (1) |   |                                      | 68,388  |   |                            |   | 70,398  |           |   |   | (2,010                        | )      |   |   | (2.9 | %) |
| Other                time certificates (1)               |   |                                      | 225,181 |   |                            |   | 200,819 |           |   |   | 24,362                        |   |   |   | 12.1 | % |
| Total                deposits                            |   | $                                         | 411,082 |   |                            | $      | 368,747 |           |   | $      | 42,335                        |   |   |   | 11.5 | % |

***Nonaccrual,      Past Due and Restructured Loans***

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***Table            of Contents***

|                                                                     |   | **June                30,**       |   |   | **December                31,** |   |
|--------------------------------------------------------------------------|--------|-----------------------------------|--------|--------|---------------------------------|--------|
|                                                                     |   | **2007**                          |   |   | **2006**                        |   |
|                                                                     |   | **(in                thousands)** |   |
| Impaired                loans without specific valuation allowances      |   | $                                 | 38     |   |                            | $      | 63 |   |
| Impaired                loans with specific valuation allowances         |   |                              | 6,271  |   |                            |   | 5,145 |   |
| Specific                valuation allowances allocated to impaired loans |   |                              | (871   | )      |                            |   | (641 | ) |
| Impaired                loans, net                                       |   | $                                 | 5,438  |   |                            | $      | 4,567 |   |
|                                                                     |   |                              |   |   |                            |   |   |   |
| Average                investment in impaired loans                      |   | $                                 | 6,128  |   |                            | $      | 4,074 |   |

|                                                                    |   | **June                30,**               |   |   | **December                31,** |   |
|-------------------------------------------------------------------------|--------|-------------------------------------------|--------|--------|---------------------------------|--------|
|                                                                    |   | **2007**                                  |   |   | **2006**                        |   |
|                                                                    |   | **(dollars                in thousands)** |   |
| Nonaccrual                loans                                         |   | $                                         | 8,034  |   |                            | $      | 7,417 |   |
| SBA                guaranteed portion of loans included above           |   |                                      | (5,085 | )      |                            |   | (4,256 | ) |
| Nonaccrual                loans, net                                    |   | $                                         | 2,949  |   |                            | $      | 3,161 |   |
|                                                                    |   |                                      |   |   |                            |   |   |   |
| Troubled                debt restructured loans, gross                  |   | $                                         | 15     |   |                            | $      | 68 |   |
| Loans                30 through 89 days past due with interest accruing |   | $                                         | 6,007  |   |                            | $      | 2,463 |   |
| Allowance                for loan losses to gross loans                 |   |                                      | .83    | %      |                            |   | .86 | % |

|  **Liquidity                  and Capital                  Resources** |
|-----------------------------------------------------------------------------|

***Liquidity      Management***

----

***Table            of Contents***

***Interest      Rate Risk***

|   | · | *Lag                Risk*– lag risk results from the inherent timing difference between                the repricing of the Company’s adjustable rate assets and                liabilities.  For instance, certain loans tied to the prime rate                index may only reprice on a quarterly basis.  However, at a                community bank such as CWB, when rates are rising, funding sources                tend to                reprice more slowly than the loans.  Therefore, for CWB, the                effect of this timing difference is generally favorable during a                period of                rising interest rates and unfavorable during a period of declining                interest rates.  This lag can produce some short-term                volatility, particularly in times of numerous prime rate                changes. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | *Repricing                Risk*– repricing risk is caused by the mismatch in the maturities /                repricing periods between interest-earning assets and interest-bearing                liabilities.  If CWB was perfectly matched, the net interest                margin would expand during rising rate periods and contract during                falling                rate periods.  This is so since loans tend to reprice more                quickly than do funding sources.  Typically, since CWB is                somewhat asset sensitive, this would also tend to expand the net                interest                margin during times of interest rate                increases. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | *Basis                Risk*– item pricing tied to different indices may tend to react                differently, however, all CWB’s variable products are priced off the prime                rate. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ~~·~~ | *Prepayment                Risk*– prepayment risk results from borrowers paying down / off their                loans prior to maturity.  Prepayments on fixed-rate products                increase in falling interest rate environments and decrease in rising                interest rate environments.  Since a majority of CWB’s loan                originations are adjustable rate and set based on prime, and there                is                little lag time on the reset, CWB does not experience significant                prepayments.  However, CWB does have more prepayment risk on its                securitized and manufactured housing loans and its mortgage-backed                investment securities. |
|--------|------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

*Management      of Interest Rate Risk*

*Loan      sales -*

*Capital      Resources*

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***Table            of Contents***

|  (dollars                  in thousands)  |   | Total                  Capital |   |   | Tier                  1 Capital |   |   | Risk-Weighted                  Assets |   |   | Adjusted                  Average                  Assets |   |   | Total                  Capital Ratio |    |   | Tier                  1 Capital                  Ratio |   |   | Tier                  1 Leverage                  Ratio |   |
|-----------------------------------------------------|--------|--------------------------------|--------|--------|---------------------------------|--------|--------|---------------------------------------|--------|--------|-----------------------------------------------------------|--------|--------|-------------------------------------------|---------|--------|--------------------------------------------------------|--------|--------|---------------------------------------------------------|--------|
| June                  30, 2007                      |   |                           |   |   |                            |   |   |                                  |   |   |                                                      |   |   |                                      |    |   |                                                   |   |   |
| CWBC                  (Consolidated)                |   | $                              | 52,664 |   |                            | $      | 48,617 |                                  |   | $      | 471,667                                                   |   |   | $                                         | 549,285 |   |                                                   |   | 11.17  | %                                                       |   |   | 10.31 | % |   |   | 8.85 | % |
| CWB                                                 |   |                           | 48,555 |   |                            |   | 44,508 |                                  |   |   | 471,678                                                   |   |   |                                      | 545,094 |   |                                                   |   | 10.29  |                                                    |   |   | 9.44 |   |   |   | 8.17 |   |
|                                                |   |                           |   |   |                            |   |   |                                  |   |   |                                                      |   |   |                                      |    |   |                                                   |   |   |                                                    |   |   |   |   |   |   |   |   |
| December                  31, 2006                  |   |                           |   |   |                            |   |   |                                  |   |   |                                                      |   |   |                                      |    |   |                                                   |   |   |                                                    |   |   |   |   |   |   |   |   |
|                                                |   |                           |   |   |                            |   |   |                                  |   |   |                                                      |   |   |                                      |    |   |                                                   |   |   |                                                    |   |   |   |   |   |   |   |   |
| CWBC                  (Consolidated)                |   | $                              | 50,692 |   |                            | $      | 46,766 |                                  |   | $      | 442,571                                                   |   |   | $                                         | 507,718 |   |                                                   |   | 11.45  | %                                                       |   |   | 10.57 | % |   |   | 9.21 | % |
| CWB                                                 |   |                           | 46,842 |   |                            |   | 42,916 |                                  |   |   | 442,624                                                   |   |   |                                      | 503,800 |   |                                                   |   | 10.58  |                                                    |   |   | 9.70 |   |   |   | 8.52 |   |
|                                                |   |                           |   |   |                            |   |   |                                  |   |   |                                                      |   |   |                                      |    |   |                                                   |   |   |                                                    |   |   |   |   |   |   |   |   |
| Well                  capitalized ratios            |   |                           |   |   |                            |   |   |                                  |   |   |                                                      |   |   |                                      |    |   |                                                   |   | 10.00  |                                                    |   |   | 6.00 |   |   |   | 5.00 |   |
| Minimum                  capital ratios             |   |                           |   |   |                            |   |   |                                  |   |   |                                                      |   |   |                                      |    | 8.00   |                                                   |   |   | 4.00                                                    |   |   |   | 4.00 |   |

|  **Supervision                  and Regulation** |
|-------------------------------------------------------|

----

***Table            of Contents***

| **ITEM                3.** | **QUANTITATIVE                AND QUALITATIVE DISCLOSURES ABOUT MARKET                RISK** |
|----------------------------|----------------------------------------------------------------------------------------------|

| **ITEM                4.** | **CONTROLS                AND PROCEDURES** |
|----------------------------|--------------------------------------------|

**PART      II – OTHER INFORMATION**

| **ITEM                1.** | **LEGAL                PROCEEDINGS** |
|----------------------------|--------------------------------------|

| **ITEM                1A.** | **RISK                FACTORS** |
|-----------------------------|---------------------------------|

| **ITEM                2.** | **UNREGISTERED                SALES OF EQUITY SECURITIES AND USE OF                PROCEEDS** |
|----------------------------|-----------------------------------------------------------------------------------------------|

| **ITEM                3.** | **DEFAULTS                UPON SENIOR                SECURITIES** |
|----------------------------|-------------------------------------------------------------------|

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***Table            of Contents***

| **ITEM                4.** | **SUBMISSION                OF MATTERS TO A VOTE OF SECURITY                HOLDERS** |
|----------------------------|---------------------------------------------------------------------------------------|

|                              |   | **Votes                For** |      |   | **Votes                Withheld** |   |
|-----------------------------------|--------|------------------------------|-----------|--------|-----------------------------------|--------|
|                              |   |                         |      |   |                              |   |
| Robert                H. Bartlein |   |                         | 4,371,859 |   |                              |   | 11,894 |   |
| Jean                W. Blois      |   |                         | 4,375,209 |   |                              |   | 8,544 |   |
| John                D. Illgen     |   |                         | 4,376,739 |   |                              |   | 7,014 |   |
| Lynda                J. Nahra     |   |                         | 4,377,509 |   |                              |   | 6,244 |   |
| William                R. Peeples |   |                         | 4,369,862 |   |                              |   | 13,891 |   |
| James                R. Sims, Jr. |   |                         | 4,376,239 |   |                              |   | 7,514 |   |
| Kirk                B. Stovesand  |   |                         | 4,377,239 |   |                              |   | 6,514 |   |
| C.                Richard Whiston |   |                         | 4,377,509 |   |                              |   | 6,244 |   |

| **ITEM                5.** | **OTHER                INFORMATION** |
|----------------------------|--------------------------------------|

| **ITEM                6.** | **EXHIBITS** |
|----------------------------|--------------|

|   | 10.2 | Employment                Agreement date July 1, 2007 between Community West Bancshares and                Charles                G. Baltuskonis (incorporated by reference from the Registrant’s Form 8-K                filed with the Commission on July 1,                2007). |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 31.1 | Certification                of Chief Executive Officer of the Registrant pursuant to Rule 13a-14(a)                or                Rule 15d-14(a), promulgated under the Securities Exchange Act of                1934, as                amended. |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 31.2 | Certification                of Chief Financial Officer of the Registrant pursuant to Rule 13a-14(a)                or                Rule 15d-14(a), promulgated under the Securities Exchange Act of                1934, as                amended. |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | *32.1 | Certification                of Chief Executive Officer and Chief Financial Officer of the Registrant                pursuant to Rule 13a-14(b) or Rule 15d-14(b), promulgated under the                Securities Exchange Act of 1934, as amended, and 18 U.S.C.                1350. |
|--------|-------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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***Table            of Contents***

NATURES

|                                        | COMMUNITY                  WEST BANCSHARES                   |
|---------------------------------------------|-------------------------------------------------------------------|
|                                        | (Registrant)                                                      |
|                                        |                                                         |
|                                        |                                                         |
| Date: August                  13, 2007 | /s/Charles                  G. Baltuskonis                   |
|                                        | Charles                  G. Baltuskonis                      |
|                                        | Executive                  Vice President and                |
|                                        | Chief                  Financial Officer                     |
|                                        |                                                         |
|                                        | On                  Behalf of Registrant and as              |
|                                        | Principal                  Financial and Accounting Officer  |

----

***Table            of Contents***

**EXHIBIT      INDEX**

| **Exhibit                  Number ** |   | **Description                  of Document**                                                                                                                                                                                                                                                              |   |
|-------------------------------------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                      |   |                                                                                                                                                                                                                                                                                                      |
| 10.2                                      |   | Employment                  Agreement date July 1, 2007 between Community West Bancshares and                  Charles                  G. Baltuskonis (incorporated by reference from the Registrant’s Form 8-K                  filed with the Commission on July 1, 2007).                       |
|                                      |   |                                                                                                                                                                                                                                                                                                      |
| 31.1                                      |   | Certification                  of Chief Executive Officer of the Registrant pursuant to Rule 13a-14(a)                  or                  Rule 15d-14(a), promulgated under the Securities and Exchange Act                  of 1934,                  as amended.                                      |
|                                      |   |                                                                                                                                                                                                                                                                                                      |
| 31.2                                      |   | Certification                  of Chief Financial                  Officer of the Registrant pursuant to Rule 13a-14(a) or Rule 15d-                  14(a),                  promulgated under the Securities and Exchange Act of 1934, as                  amended.                                |
|                                      |   |                                                                                                                                                                                                                                                                                                      |
| 32.1*                                     |   | Certification                  of Chief Executive Officer and Chief Financial Officer of the Registrant                  pursuant to  Rule 13a-14(b) or Rule 15d-14(b), promulgated under                  the Securities Exchange Act of 1934, as amended, and 18                  U.S.C.1350. |

| ____________________ |   |
|----------------------|--------|

----