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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** |
|---|------------------------------------------------------------------------------------------------------------------------------------------|

|  ̈ | **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  ̈  | Accelerated                filer  ̈  | 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 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****                               |   |
|                                                                                                                                                                                                                                         |                                           |                                                                                                                          |   |
|                                                                                                                                                                                                                                         | **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**

|                                                                                                                                                                                                                        |   | **September                30,****2007** |    |   | **December                31,****2006** |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------|---------|--------|-----------------------------------------|--------|
|                                                                                                                                                                                                                        |   | **(unaudited)**                          |    |   |                                    |   |
| **ASSETS**                                                                                                                                                                                                                  |   | **(in                thousands)**        |    |
| Cash                and due from banks                                                                                                                                                                                      |   | $                                        | 5,394   |   |                                    | $      | 4,190 |   |
| Federal                funds sold                                                                                                                                                                                           |   |                                     | 10,844  |   |                                    |   | 7,153 |   |
| Cash                and cash equivalents                                                                                                                                                                                    |   |                                     | 16,238  |   |                                    |   | 11,343 |   |
| Time                deposits in other financial institutions                                                                                                                                                                |   |                                     | 654     |   |                                    |   | 536 |   |
| Investment                securities available-for-sale, at fair value; amortized cost of $20,489                at                September 30, 2007 and $22,340 at December 31, 2006                                      |   |                                     | 20,371  |   |                                    |   | 22,097 |   |
| Investment                securities held-to-maturity, at amortized cost; fair value of $16,149                at                September 30, 2007 and $10,437 at December 31, 2006                                        |   |                                     | 16,236  |   |                                    |   | 10,535 |   |
| Federal                Home Loan Bank stock, at cost                                                                                                                                                                        |   |                                     | 5,123   |   |                                    |   | 4,465 |   |
| Federal                Reserve Bank stock, at cost                                                                                                                                                                          |   |                                     | 812     |   |                                    |   | 812 |   |
| Loans:                                                                                                                                                                                                                      |   |                                     |    |   |                                    |   |   |   |
| Loans                held for sale, at lower of cost or fair value                                                                                                                                                          |   |                                     | 96,978  |   |                                    |   | 75,795 |   |
| Loans                held for investment, net of allowance for loan losses of  $4,293                at September 30, 2007 and $3,926 at December 31, 2006                                                        |   |                                     | 408,237 |   |                                    |   | 375,777 |   |
| Total                loans                                                                                                                                                                                                  |   |                                     | 505,215 |   |                                    |   | 451,572 |   |
| Servicing                rights                                                                                                                                                                                             |   |                                     | 1,383   |   |                                    |   | 1,968 |   |
| Other                assets acquired through foreclosure, net                                                                                                                                                               |   |                                     | 558     |   |                                    |   | 582 |   |
| Premises                and equipment, net                                                                                                                                                                                  |   |                                     | 3,114   |   |                                    |   | 2,802 |   |
| Other                assets                                                                                                                                                                                                 |   |                                     | 11,281  |   |                                    |   | 9,903 |   |
| **TOTAL                ASSETS**                                                                                                                                                                                             |   | $                                        | 580,985 |   |                                    | $      | 516,615 |   |
| **LIABILITIES**                                                                                                                                                                                                             |   |                                     |    |   |                                    |   |   |   |
| Deposits:                                                                                                                                                                                                                   |   |                                     |    |   |                                    |   |   |   |
| Non-interest-bearing                demand                                                                                                                                                                                  |   | $                                        | 33,602  |   |                                    | $      | 33,033 |   |
| Interest-bearing                demand                                                                                                                                                                                      |   |                                     | 78,763  |   |                                    |   | 49,975 |   |
| Savings                                                                                                                                                                                                                     |   |                                     | 15,395  |   |                                    |   | 14,522 |   |
| Time                certificates                                                                                                                                                                                            |   |                                     | 287,848 |   |                                    |   | 271,217 |   |
| Total                deposits                                                                                                                                                                                               |   |                                     | 415,608 |   |                                    |   | 368,747 |   |
| Federal                Home Loan Bank advances                                                                                                                                                                              |   |                                     | 109,000 |   |                                    |   | 95,000 |   |
| Other                liabilities                                                                                                                                                                                            |   |                                     | 6,899   |   |                                    |   | 6,048 |   |
| Total                liabilities                                                                                                                                                                                            |   |                                     | 531,507 |   |                                    |   | 469,795 |   |
| **STOCKHOLDERS'                EQUITY**                                                                                                                                                                                     |   |                                     |    |   |                                    |   |   |   |
| Common                stock, no par value; 10,000,000*** ***shares                authorized; issued and outstanding: 5,881,085 at September 30, 2007                and                5,814,568 at December 31, 2006 |   |                                     | 31,391  |   |                                    |   | 30,794 |   |
| Retained                earnings                                                                                                                                                                                            |   |                                     | 18,157  |   |                                    |   | 16,169 |   |
| Accumulated                other comprehensive loss, net                                                                                                                                                                    |   |                                     | (70     | )      |                                    |   | (143 | ) |
| Total                stockholders' equity                                                                                                                                                                                   |   |                                     | 49,478  |   |                                    |   | 46,820 |   |
| **TOTAL                LIABILITIES AND STOCKHOLDERS’ EQUITY**                                                                                                                                                         |   | $                                        | 580,985 |   |                                    | $      | 516,615 |   |

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***Table            of Contents***

**COMMUNITY      WEST BANCSHARES**

**CONSOLIDATED      INCOME STATEMENTS (UNAUDITED)**

|                                                                                                     |   | **Three                    Months Ended**** September                    30,**  |   |   | **Nine                    Months Ended**** September                    30,** |   |
|----------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------------------------------|--------|--------|------------------------------------------------------------------------------------|--------|
|                                                                                                     |   | **2007**                                                                                  |   |   | **2006**                                                                           |   |   | **2007** |   |   | **2006** |   |
|                                                                                                     |   | **(dollars                    in thousands, except per share amounts)**                   |   |
| **INTEREST                    INCOME**                                                                   |   |                                                                                      |   |   |                                                                               |   |   |   |   |   |   |   |
| Loans                                                                                                    |   | $                                                                                         | 11,341 |   |                                                                               | $      | 9,729 |   |   | $ | 32,706 |   |   | $ | 27,144 |   |
| Investment                    securities                                                                 |   |                                                                                      | 504    |   |                                                                               |   | 414 |   |   |   | 1,407 |   |   |   | 1,143 |   |
| Other                                                                                                    |   |                                                                                      | 185    |   |                                                                               |   | 133 |   |   |   | 589 |   |   |   | 415 |   |
| Total                    interest income                                                                 |   |                                                                                      | 12,030 |   |                                                                               |   | 10,276 |   |   |   | 34,702 |   |   |   | 28,702 |   |
| **INTEREST                    EXPENSE**                                                                  |   |                                                                                      |   |   |                                                                               |   |   |   |   |   |   |   |   |   |   |   |
| Deposits                                                                                                 |   |                                                                                      | 4,631  |   |                                                                               |   | 3,517 |   |   |   | 13,174 |   |   |   | 9,470 |   |
| Other                    borrowings                                                                      |   |                                                                                      | 1,246  |   |                                                                               |   | 972 |   |   |   | 3,636 |   |   |   | 2,443 |   |
| Total                    interest expense                                                                |   |                                                                                      | 5,877  |   |                                                                               |   | 4,489 |   |   |   | 16,810 |   |   |   | 11,913 |   |
| **NET                    INTEREST INCOME**                                                               |   |                                                                                      | 6,153  |   |                                                                               |   | 5,787 |   |   |   | 17,892 |   |   |   | 16,789 |   |
| Provision                    for loan losses                                                             |   |                                                                                      | 547    |   |                                                                               |   | 12 |   |   |   | 769 |   |   |   | 337 |   |
| **NET                    INTEREST INCOME AFTER PROVISION FOR                    LOAN  LOSSES** |   |                                                                                      | 5,606  |   |                                                                               |   | 5,775 |   |   |   | 17,123 |   |   |   | 16,452 |   |
| **NON-INTEREST                    INCOME**                                                               |   |                                                                                      |   |   |                                                                               |   |   |   |   |   |   |   |   |   |   |   |
| Gains                    from loan sales, net                                                            |   |                                                                                      | 361    |   |                                                                               |   | 318 |   |   |   | 693 |   |   |   | 1,144 |   |
| Other                    loan fees                                                                       |   |                                                                                      | 587    |   |                                                                               |   | 703 |   |   |   | 2,132 |   |   |   | 1,959 |   |
| Other                                                                                                    |   |                                                                                      | 264    |   |                                                                               |   | 432 |   |   |   | 964 |   |   |   | 1,256 |   |
| Total                    non-interest income                                                             |   |                                                                                      | 1,212  |   |                                                                               |   | 1,453 |   |   |   | 3,789 |   |   |   | 4,359 |   |
| **NON-INTEREST                    EXPENSES**                                                             |   |                                                                                      |   |   |                                                                               |   |   |   |   |   |   |   |   |   |   |   |
| Salaries                    and employee benefits                                                        |   |                                                                                      | 3,383  |   |                                                                               |   | 3,275 |   |   |   | 10,626 |   |   |   | 9,699 |   |
| Occupancy                    and equipment expenses                                                      |   |                                                                                      | 682    |   |                                                                               |   | 573 |   |   |   | 1,907 |   |   |   | 1,724 |   |
| Other                    operating expenses                                                              |   |                                                                                      | 1,089  |   |                                                                               |   | 846 |   |   |   | 3,123 |   |   |   | 2,468 |   |
| Total                    non-interest expenses                                                           |   |                                                                                      | 5,154  |   |                                                                               |   | 4,694 |   |   |   | 15,656 |   |   |   | 13,891 |   |
| Income                    before provision for income taxes                                              |   |                                                                                      | 1,664  |   |                                                                               |   | 2,534 |   |   |   | 5,256 |   |   |   | 6,920 |   |
| Provision                    for income taxes                                                            |   |                                                                                      | 701    |   |                                                                               |   | 1,043 |   |   |   | 2,215 |   |   |   | 2,881 |   |
|                                                                                                     |   |                                                                                      |   |   |                                                                               |   |   |   |   |   |   |   |   |   |   |   |
| **NET                    INCOME**                                                                        |   | $                                                                                         | 963    |   |                                                                               | $      | 1,491 |   |   | $ | 3,041 |   |   | $ | 4,039 |   |
|                                                                                                     |   |                                                                                      |   |   |                                                                               |   |   |   |   |   |   |   |   |   |   |   |
| **INCOME                    PER SHARE – BASIC**                                                    |   | $                                                                                         | .16    |   |                                                                               | $      | .26 |   |   | $ | .52 |   |   | $ | .70 |   |
| **INCOME                    PER SHARE – DILUTED**                                                  |   | $                                                                                         | .16    |   |                                                                               | $      | .25 |   |   | $ | .50 |   |   | $ | .67 |   |
| Basic                    weighted average number of common shares outstanding                            |   |                                                                                      | 5,877  |   |                                                                               |   | 5,787 |   |   |   | 5,852 |   |   |   | 5,778 |   |
| Diluted                    weighted average number of common shares outstanding                          |   |                                                                                      | 6,009  |   |                                                                               |   | 6,008 |   |   |   | 6,027 |   |   |   | 5,995 |   |

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***Table            of Contents***

**COMMUNITY        WEST BANCSHARES**

**CONSOLIDATED        STATEMENT OF STOCKHOLDERS’ EQUITY**

**(UNAUDITED)**

|                                                                           |   | **Common                Stock**   |   |   | **Retained** |   |   | **Accumulated                Other Comprehensive** |   |   | **Total                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                                       |   |                              | 66     |   |         |   | 412    |                                               |   |   |                                         |   |   |   |   |   |   |   | 412 |   |
| Stock-based                compensation                                        |   |                              |   |   |         |   | 125    |                                               |   |   |                                         |   |   |   |   |   |   |   | 125 |   |
| Tax                benefit from stock options                                  |   |                              |   |   |         |   | 60     |                                               |   |   |                                         |   |   |   |   |   |   |   | 60 |   |
| Comprehensive                income:                                           |   |                              |   |   |         |   |   |                                               |   |   |                                         |   |   |   |   |   |   |   |   |   |
| Net                income                                                      |   |                              |   |   |         |   |   |                                               |   |   | 3,041                                        |   |   |   |   |   |   |   | 3,041 |   |
| Change                in unrealized loss on securities available-for-sale, net |   |                              |   |   |         |   |   |                                               |   |   |                                         |   |   |   | 73 |   |   |   | 73 |   |
| Comprehensive                income                                            |   |                              |   |   |         |   |   |                                               |   |   |                                         |   |   |   |   |   |   |   | 3,114 |   |
| Cash                dividends paid                                             |   |                              |   |   |         |   |   |                                               |   |   |                                         |   |   |   |   |   |   |   |   |   |
| ($0.18                per share)                                               |   |                              |   |   |         |   |   |                                               |   |   | (1,053                                       | )      |   |   |   |   |   |   | (1,053 | ) |
| **BALANCES                AT SEPTEMBER 30, 2007**                              |   |                              | 5,881  |   |         | $      | 31,391 |                                               |   | $      | 18,157                                       |   |   | $ | (70 | ) |   | $ | 49,478 |   |

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***Table            of Contents***

**COMMUNITY      WEST BANCSHARES**

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

|                                                                                                            |   | **Nine                Months Ended September 30,** |    |
|-----------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------|---------|
|                                                                                                            |   | **2007**                                           |    |   | **2006** |   |
|                                                                                                            |   | **(in                thousands)**                  |    |
| **CASH                FLOWS FROM OPERATING ACTIVITIES:**                                                        |   |                                               |    |   |   |   |
| Net                income                                                                                       |   | $                                                  | 3,041   |   |   | $ | 4,039 |   |
| Adjustments                to reconcile net income to net cash provided by operating                activities: |   |                                               |    |   |   |   |   |   |
| Provision                for loan losses                                                                        |   |                                               | 769     |   |   |   | 337 |   |
| Write-down                of other assets acquired through foreclosure                                          |   |                                               | 54      |   |   |   | - |   |
| Depreciation                and amortization                                                                    |   |                                               | 370     |   |   |   | 368 |   |
| Stock-based                compensation                                                                         |   |                                               | 125     |   |   |   | 120 |   |
| Net                amortization of discounts and premiums for investment                securities              |   |                                               | (10     | ) |   |   | 1 |   |
| Loss                (gain) on:                                                                                  |   |                                               |    |   |   |   |   |   |
| Sale                of other assets acquired through foreclosure                                                |   |                                               | 13      |   |   |   | 19 |   |
| Sale                of loans held for sale                                                                      |   |                                               | (693    | ) |   |   | (1,144 | ) |
| Loans                originated for sale, net                                                                   |   |                                               | 1,729   |   |   |   | 1,404 |   |
| Changes                in:                                                                                      |   |                                               |    |   |   |   |   |   |
| Servicing                rights, net of amortization and valuation adjustments                                  |   |                                               | 585     |   |   |   | 674 |   |
| Other                assets                                                                                     |   |                                               | (1,502  | ) |   |   | (209 | ) |
| Other                liabilities                                                                                |   |                                               | 984     |   |   |   | 1,296 |   |
| Net                cash provided by operating activities                                                        |   |                                               | 5,465   |   |   |   | 6,905 |   |
| **CASH                FLOWS FROM INVESTING ACTIVITIES:**                                                        |   |                                               |    |   |   |   |   |   |
| Purchase                of held-to-maturity securities                                                          |   |                                               | (7,881  | ) |   |   | (2,479 | ) |
| Purchase                of available-for-sale securities                                                        |   |                                               | -       |   |   |   | (3,976 | ) |
| Purchase                of Federal Home Loan Bank stock                                                         |   |                                               | (481    | ) |   |   | (900 | ) |
| Federal                Home Loan Bank stock dividend                                                            |   |                                               | (177    | ) |   |   | (110 | ) |
| Principal                pay downs and maturities of held-to-maturity securities                                |   |                                               | 2,185   |   |   |   | 1,626 |   |
| Principal                pay downs and maturities of available-for-sale securities                              |   |                                               | 1,855   |   |   |   | 3,674 |   |
| Loan                originations and principal collections, net                                                 |   |                                               | (55,499 | ) |   |   | (46,327 | ) |
| Proceeds                from sale of other assets acquired through foreclosure                                  |   |                                               | 7       |   |   |   | 104 |   |
| Net                increase in time deposits in other financial institutions                                    |   |                                               | (118    | ) |   |   | (98 | ) |
| Purchase                of premises and equipment, net                                                          |   |                                               | (681    | ) |   |   | (498 | ) |
| Net                cash used in investing activities                                                            |   |                                               | (60,790 | ) |   |   | (48,984 | ) |
| **CASH                FLOWS FROM FINANCING ACTIVITIES:**                                                        |   |                                               |    |   |   |   |   |   |
| Exercise                of stock options                                                                        |   |                                               | 412     |   |   |   | 271 |   |
| Cash                dividends paid on common stock                                                              |   |                                               | (1,053  | ) |   |   | (982 | ) |
| Net                increase (decrease)  in demand deposits and savings                accounts        |   |                                               | 30,230  |   |   |   | (15,158 | ) |
| Net                increase in time certificates of deposit                                                     |   |                                               | 16,631  |   |   |   | 42,689 |   |
| Proceeds                from Federal Home Loan Bank advances                                                    |   |                                               | 45,000  |   |   |   | 29,500 |   |
| Repayment                of Federal Home Loan Bank advances                                                     |   |                                               | (31,000 | ) |   |   | (8,000 | ) |
| Net                cash provided by financing activities                                                        |   |                                               | 60,220  |   |   |   | 48,320 |   |
| **NET                INCREASE IN CASH AND CASH EQUIVALENTS**                                                    |   |                                               | 4,895   |   |   |   | 6,241 |   |
| **CASH                AND CASH EQUIVALENTS, BEGINNING OF PERIOD**                                               |   |                                               | 11,343  |   |   |   | 13,732 |   |
| **CASH                AND CASH EQUIVALENTS, END OF PERIOD**                                                     |   | $                                                  | 16,238  |   |   | $ | 19,973 |   |
|                                                                                                            |   |                                               |    |   |   |   |   |   |
| Supplemental                Disclosure of Cash Flow Information:                                                |   |                                               |    |   |   |   |   |   |
| Cash                paid for interest                                                                           |   | $                                                  | 14,844  |   |   | $ | 10,740 |   |
| Cash                paid for income taxes                                                                       |   |                                               | 3,203   |   |   |   | 3,082 |   |
| Supplemental                Disclosure of Noncash Investing Activity:                                           |   |                                               |    |   |   |   |   |   |
| Transfers                to other assets acquired through foreclosure                                           |   |                                               | 51      |   |   |   | 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      Assets Acquired Through Foreclosure***

***Recent      Accounting Pronouncements***

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

***SBA      Loan Sales***
** - **

----

***Table            of Contents***

***Mortgage      Loan Sales***

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

|                                                   |   | **September                30,**  |    |   | **December                31,** |   |
|--------------------------------------------------------|--------|-----------------------------------|---------|--------|---------------------------------|--------|
|                                                   |   | **2007**                          |    |   | **2006**                        |   |
|                                                   |   | **(in                thousands)** |    |
| Commercial                                             |   | $                                 | 66,051  |   |                            | $      | 53,725 |   |
| Real                estate                             |   |                              | 133,916 |   |                            |   | 135,902 |   |
| SBA                                                    |   |                              | 32,087  |   |                            |   | 29,712 |   |
| Manufactured                housing                    |   |                              | 163,328 |   |                            |   | 142,804 |   |
| Securitized                                            |   |                              | 7,977   |   |                            |   | 9,950 |   |
| Other                installment                       |   |                              | 9,809   |   |                            |   | 8,301 |   |
|                                                   |   |                              | 413,168 |   |                            |   | 380,394 |   |
| Less:                                                  |   |                              |    |   |                            |   |   |   |
| Allowance                for loan losses               |   |                              | 4,293   |   |                            |   | 3,926 |   |
| Deferred                fees, net of costs             |   |                              | 51      |   |                            |   | 17 |   |
| Purchased                premiums on securitized loans |   |                              | (84     | )      |                            |   | (128 | ) |
| Discount                on SBA loans                   |   |                              | 671     |   |                            |   | 802 |   |
| Loans                held for investment, net          |   | $                                 | 408,237 |   |                            | $      | 375,777 |   |

|                                                      |   | **Three                Months Ended****September                30,** |   |
|-----------------------------------------------------------|--------|-----------------------------------------------------------------------|--------|
|                                                      |   | **2007**                                                              |   |   | **2006** |   |
|                                                      |   | **(in                thousands)**                                     |   |
| Balance,                beginning of period               |   | $                                                                     | 4,047  |   |   | $ | 3,997 |   |
| Provision                for loan losses                  |   |                                                                  | 547    |   |   |   | 12 |   |
| Loans                charged off                          |   |                                                                  | (319   | ) |   |   | (271 | ) |
| Recoveries                on loans previously charged off |   |                                                                  | 18     |   |   |   | 160 |   |
| Balance,                end of period                     |   | $                                                                     | 4,293  |   |   | $ | 3,898 |   |

----

***Table            of Contents***

|                                                      |   | **Nine                Months Ended****September                30,** |   |
|-----------------------------------------------------------|--------|----------------------------------------------------------------------|--------|
|                                                      |   | **2007**                                                             |   |   | **2006** |   |
|                                                      |   | **(in                thousands)**                                    |   |
| Balance,                beginning of period               |   | $                                                                    | 3,926  |   |   | $ | 3,954 |   |
| Provision                for loan losses                  |   |                                                                 | 769    |   |   |   | 337 |   |
| Loans                charged off                          |   |                                                                 | (499   | ) |   |   | (607 | ) |
| Recoveries                on loans previously charged off |   |                                                                 | 97     |   |   |   | 214 |   |
| Balance,                end of period                     |   | $                                                                    | 4,293  |   |   | $ | 3,898 |   |

|                                                                       |   | **September                  30,**  |   |   | **December                  31,** |   |
|----------------------------------------------------------------------------|--------|-------------------------------------|--------|--------|-----------------------------------|--------|
|                                                                       |   | **2007**                            |   |   | **2006**                          |   |
|                                                                       |   | **(in                  thousands)** |   |
| Impaired                  loans without specific valuation allowances      |   | $                                   | 35     |   |                              | $      | 63 |   |
| Impaired                  loans with specific valuation allowances         |   |                                | 10,345 |   |                              |   | 5,145 |   |
| Specific                  valuation allowances allocated to impaired loans |   |                                | (946   | )      |                              |   | (641 | ) |
| Impaired                  loans, net                                       |   | $                                   | 9,434  |   |                              | $      | 4,567 |   |
|                                                                       |   |                                |   |   |                              |   |   |   |
| Average                  investment in impaired loans                      |   | $                                   | 7,082  |   |                              | $      | 4,074 |   |

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

***Earnings      Per Share***
*– Basic*
*Earnings      per share – Diluted*

|                                                     |   | **Three                  Months Ended****September                  30,**  |   |   | **Nine                  Months Ended****September                  30,** |   |
|----------------------------------------------------------|--------|---------------------------------------------------------------------------------|--------|--------|--------------------------------------------------------------------------|--------|
|                                                     |   | **2007**                                                                        |   |   | **2006**                                                                 |   |   | **2007** |   |   | **2006** |   |
|                                                     |   | **(dollars                  in thousands except per share amounts)**            |   |
| Weighted                  average shares – Basic   |   |                                                                            | 5,877  |   |                                                                     |   | 5,787 |   |   |   | 5,852 |   |   |   | 5,778 |   |
| Dilutive                  effect of options              |   |                                                                            | 132    |   |                                                                     |   | 221 |   |   |   | 175 |   |   |   | 217 |   |
| Weighted                  average shares – Diluted |   |                                                                            | 6,009  |   |                                                                     |   | 6,008 |   |   |   | 6,027 |   |   |   | 5,995 |   |
|                                                     |   |                                                                            |   |   |                                                                     |   |   |   |   |   |   |   |   |   |   |   |
| Net                  income                              |   | $                                                                               | 963    |   |                                                                     | $      | 1,491 |   |   | $ | 3,041 |   |   | $ | 4,039 |   |
| Earnings                  per share – Basic        |   |                                                                            | .16    |   |                                                                     |   | .26 |   |   |   | .52 |   |   |   | .70 |   |
| Earnings                  per share – Diluted      |   |                                                                            | .16    |   |                                                                     |   | .25 |   |   |   | .50 |   |   |   | .67 |   |

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

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

----

***Table            of Contents***

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

***This      discussion is designed to provide insight into management’s assessment of      significant trends related to the Company's consolidated financial condition,      results of operations, liquidity, capital resources and interest rate      sensitivity.  It should be read in conjunction with the unaudited      interim consolidated financial statements and notes thereto and the other      financial information appearing elsewhere in this      report.***

***Forward      Looking Statements***

***Overview      of Earnings Performance***

|   | · | a                17.1% increase in interest income primarily due to higher average                loan                balances which were $500 million for the third quarter 2007 compared                to                $422 million for the same period of                2006 |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | an                interest rate curve that was relatively flat and at times even inverted                contributed to higher deposit costs and compressed margins,                creating  a decline in net interest margin to 4.39% for the                third quarter  2007 compared to 4.90% for the same period of                2006 |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | somewhat                stabilized net interest margin as the decline from the second                quarter  2007 to the third quarter was only 6 basis points,                4.45% to 4.39%, but that may be impacted by the September 50 bp reduction                by the Fed in the target overnight                rate |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | the                provision for loan losses for third quarter 2007 was $547,000 and,                othe                than volume-related provisions, the primary reason was the increase                in                charged-off loans |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | an                increase in non-interest expenses primarily due to an additional                branch                location, increased promotional expenses and FDIC                insurance |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

***Critical      Accounting Policies***

***Recent      Accounting Pronouncements***

----

***Table            of Contents***

***Results      of****Operations –****Third Quarter      Comparison***

|                                                               |   | **Three                Months Ended****September                30,**  |   |   |     |   |
|--------------------------------------------------------------------|--------|-----------------------------------------------------------------------------|--------|--------|----------|--------|
|                                                               |   | **2007**                                                                    |   |   | **2006** |   |   | **Increase****(Decrease)** |   |
|                                                               |   | **(dollars                in thousands, except per share amounts)**         |   |
| Interest                income                                     |   | $                                                                           | 12,030 |   |     | $      | 10,276 |   |   | $ | 1,754 |   |
| Interest                expense                                    |   |                                                                        | 5,877  |   |     |   | 4,489 |   |   |   | 1,388 |   |
| Net                interest income                                 |   |                                                                        | 6,153  |   |     |   | 5,787 |   |   |   | 366 |   |
| Provision                for loan losses                           |   |                                                                        | 547    |   |     |   | 12 |   |   |   | 535 |   |
| Net                interest income after provision for loan losses |   |                                                                        | 5,606  |   |     |   | 5,775 |   |   |   | (169 | ) |
| Non-interest                income                                 |   |                                                                        | 1,212  |   |     |   | 1,453 |   |   |   | (241 | ) |
| Non-interest                expenses                               |   |                                                                        | 5,154  |   |     |   | 4,694 |   |   |   | 460 |   |
| Income                before provision for income taxes            |   |                                                                        | 1,664  |   |     |   | 2,534 |   |   |   | (870 | ) |
| Provision                for income taxes                          |   |                                                                        | 701    |   |     |   | 1,043 |   |   |   | (342 | ) |
| Net                income                                          |   | $                                                                           | 963    |   |     | $      | 1,491 |   |   | $ | (528 | ) |
| Earnings                per share – Basic                    |   | $                                                                           | .16    |   |     | $      | .26 |   |   | $ | (.10 | ) |
| Earnings                per share – Diluted                  |   | $                                                                           | .16    |   |     | $      | .25 |   |   | $ | (.09 | ) |
| Comprehensive                income                                |   | $                                                                           | 1,012  |   |     | $      | 1,525 |   |   | $ | (513 | ) |

----

***Table            of Contents***

|                                                |   | **Three                  Months Ended****September                  30,** |   |
|-----------------------------------------------------|--------|---------------------------------------------------------------------------|--------|
|                                                |   | **2007                  versus 2006**                                     |   |
|                                                |   | **Total                  change**                                         |   |   | **Change                  due to** |   |
|                                                |   |                                                                      |   |   | **Rate** |   |   | **Volume** |   |
|                                                |   | **(in                  thousands)**                                       |   |
| Loans,                  net                         |   | $                                                                         | 1,612  |   |   | $ | (114 | ) |   | $ | 1,726 |   |
| Investment                  securities              |   |                                                                      | 90     |   |   |   | 35 |   |   |   | 55 |   |
| Other                                               |   |                                                                      | 52     |   |   |   | - |   |   |   | 52 |   |
| Total                  interest-earning assets      |   |                                                                      | 1,754  |   |   |   | (79 | ) |   |   | 1,833 |   |
|                                                |   |                                                                      |   |   |   |   |   |   |   |   |   |   |
| Deposits                                            |   |                                                                      | 1,114  |   |   |   | 408 |   |   |   | 706 |   |
| Other                  borrowings                   |   |                                                                      | 274    |   |   |   | (16 | ) |   |   | 290 |   |
| Total                  interest-bearing liabilities |   |                                                                      | 1,388  |   |   |   | 392 |   |   |   | 996 |   |
| Net                  interest income                |   | $                                                                         | 366    |   |   | $ | (471 | ) |   | $ | 837 |   |

*Net      Interest Income*

*Provision      for Loan Losses*

*Non-Interest      Income*

----

***Table            of Contents***

*Non-Interest      Expenses*

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

|                                                               |   | **Nine                Months Ended****September                30,**  |   |   |     |   |
|--------------------------------------------------------------------|--------|----------------------------------------------------------------------------|--------|--------|----------|--------|
|                                                               |   | **2007**                                                                   |   |   | **2006** |   |   | **Increase****(Decrease)** |   |
|                                                               |   | **(dollars                in thousands, except per share amounts)**        |   |
| Interest                income                                     |   | $                                                                          | 34,702 |   |     | $      | 28,702 |   |   | $ | 6,000 |   |
| Interest                expense                                    |   |                                                                       | 16,810 |   |     |   | 11,913 |   |   |   | 4,897 |   |
| Net                interest income                                 |   |                                                                       | 17,892 |   |     |   | 16,789 |   |   |   | 1,103 |   |
| Provision                for loan losses                           |   |                                                                       | 769    |   |     |   | 337 |   |   |   | 432 |   |
| Net                interest income after provision for loan losses |   |                                                                       | 17,123 |   |     |   | 16,452 |   |   |   | 671 |   |
| Non-interest                income                                 |   |                                                                       | 3,789  |   |     |   | 4,359 |   |   |   | (570 | ) |
| Non-interest                expenses                               |   |                                                                       | 15,656 |   |     |   | 13,891 |   |   |   | 1,765 |   |
| Income                before provision for income taxes            |   |                                                                       | 5,256  |   |     |   | 6,920 |   |   |   | (1,664 | ) |
| Provision                for income taxes                          |   |                                                                       | 2,215  |   |     |   | 2,881 |   |   |   | (666 | ) |
| Net                income                                          |   | $                                                                          | 3,041  |   |     | $      | 4,039 |   |   | $ | (998 | ) |
| Earnings                per share – Basic                    |   | $                                                                          | .52    |   |     | $      | .70 |   |   | $ | (.18 | ) |
| Earnings                per share – Diluted                  |   | $                                                                          | .50    |   |     | $      | .67 |   |   | $ | (.17 | ) |
| Comprehensive                income                                |   | $                                                                          | 3,114  |   |     | $      | 3,954 |   |   | $ | (840 | ) |

|                                                |   | **Nine                  Months Ended****September                  30,** |   |
|-----------------------------------------------------|--------|--------------------------------------------------------------------------|--------|
|                                                |   | **2007                  versus 2006**                                    |   |
|                                                |   | **Total                  change**                                        |   |   | **Change                  due to** |   |
|                                                |   |                                                                     |   |   | **Rate** |   |   | **Volume** |   |
|                                                |   | **(in                  thousands)**                                      |   |
| Loans,                  net                         |   | $                                                                        | 5,562  |   |   | $ | 236 |   |   | $ | 5,326 |   |
| Investment                  securities              |   |                                                                     | 264    |   |   |   | 114 |   |   |   | 150 |   |
| Other                                               |   |                                                                     | 174    |   |   |   | 44 |   |   |   | 130 |   |
| Total                  interest-earning assets      |   |                                                                     | 6,000  |   |   |   | 394 |   |   |   | 5,606 |   |
|                                                |   |                                                                     |   |   |   |   |   |   |   |   |   |   |
| Deposits                                            |   |                                                                     | 3,704  |   |   |   | 1,600 |   |   |   | 2,104 |   |
| Other                  borrowings                   |   |                                                                     | 1,193  |   |   |   | 125 |   |   |   | 1,068 |   |
| Total                  interest-bearing liabilities |   |                                                                     | 4,897  |   |   |   | 1,725 |   |   |   | 3,172 |   |
| Net                  interest income                |   | $                                                                        | 1,103  |   |   | $ | (1,331 | ) |   | $ | 2,434 |   |

*Net      Interest Income*

----

***Table            of Contents***

*Provision      for Loan Losses*

*Non-Interest      Income*

*Non-Interest      Expenses*

----

***Table            of Contents***

***Interest      Rates and Differentials***

|                                                                      |   | **Three                Months**** Ended                September 30,**  |    |   | **Nine                Months****Ended                September 30,** |   |
|---------------------------------------------------------------------------|--------|-----------------------------------------------------------------------------------|---------|--------|----------------------------------------------------------------------|--------|
|                                                                      |   | **2007**                                                                          |    |   | **2006**                                                             |   |   | **2007** |   |   | **2006** |   |
| **Interest-earning                assets:**                               |   | **(dollars                in thousands)**                                         |    |
| Interest-earning                deposits in other financial institutions: |   |                                                                              |    |   |                                                                 |   |   |   |   |   |   |   |
| Average                balance                                            |   | $                                                                                 | 1,035   |   |                                                                 | $      | 640 |   |   | $ | 900 |   |   | $ | 571 |   |
| Interest                income                                            |   |                                                                              | 11      |   |                                                                 |   | 7 |   |   |   | 30 |   |   |   | 18 |   |
| Average                yield                                              |   |                                                                              | 4.04    | %      |                                                                 |   | 4.60 | % |   |   | 4.45 | % |   |   | 4.24 | % |
| Federal                funds sold:                                        |   |                                                                              |    |   |                                                                 |   |   |   |   |   |   |   |   |   |   |   |
| Average                balance                                            |   | $                                                                                 | 13,161  |   |                                                                 | $      | 9,665 |   |   | $ | 14,240 |   |   | $ | 11,221 |   |
| Interest                income                                            |   |                                                                              | 174     |   |                                                                 |   | 126 |   |   |   | 559 |   |   |   | 397 |   |
| Average                yield                                              |   |                                                                              | 5.24    | %      |                                                                 |   | 5.15 | % |   |   | 5.25 | % |   |   | 4.73 | % |
| Investment                securities:                                     |   |                                                                              |    |   |                                                                 |   |   |   |   |   |   |   |   |   |   |   |
| Average                balance                                            |   | $                                                                                 | 41,032  |   |                                                                 | $      | 36,555 |   |   | $ | 39,412 |   |   | $ | 35,215 |   |
| Interest                income                                            |   |                                                                              | 504     |   |                                                                 |   | 414 |   |   |   | 1,407 |   |   |   | 1,143 |   |
| Average                yield                                              |   |                                                                              | 4.87    | %      |                                                                 |   | 4.49 | % |   |   | 4.77 | % |   |   | 4.34 | % |
| Gross                loans, excluding securitized:                        |   |                                                                              |    |   |                                                                 |   |   |   |   |   |   |   |   |   |   |   |
| Average                balance                                            |   | $                                                                                 | 491,735 |   |                                                                 | $      | 409,797 |   |   | $ | 474,803 |   |   | $ | 390,022 |   |
| Interest                income                                            |   |                                                                              | 11,038  |   |                                                                 |   | 9,368 |   |   |   | 31,818 |   |   |   | 25,934 |   |
| Average                yield                                              |   |                                                                              | 8.91    | %      |                                                                 |   | 9.07 | % |   |   | 8.96 | % |   |   | 8.89 | % |
| Securitized                loans:                                         |   |                                                                              |    |   |                                                                 |   |   |   |   |   |   |   |   |   |   |   |
| Average                balance                                            |   | $                                                                                 | 8,478   |   |                                                                 | $      | 11,716 |   |   | $ | 9,111 |   |   | $ | 12,993 |   |
| Interest                income                                            |   |                                                                              | 303     |   |                                                                 |   | 361 |   |   |   | 888 |   |   |   | 1,210 |   |
| Average                yield                                              |   |                                                                              | 14.16   | %      |                                                                 |   | 12.23 | % |   |   | 13.04 | % |   |   | 12.45 | % |
| **Total                interest-earning assets:**                         |   |                                                                              |    |   |                                                                 |   |   |   |   |   |   |   |   |   |   |   |
| Average                balance                                            |   | $                                                                                 | 555,441 |   |                                                                 | $      | 468,373 |   |   | $ | 538,466 |   |   | $ | 450,022 |   |
| Interest                income                                            |   |                                                                              | 12,030  |   |                                                                 |   | 10,276 |   |   |   | 34,702 |   |   |   | 28,702 |   |
| Average                yield                                              |   |                                                                              | 8.59    | %      |                                                                 |   | 8.70 | % |   |   | 8.62 | % |   |   | 8.53 | % |

----

***Table            of Contents***

|                                                   |   | **Three                Months**** Ended                September 30,** |    |   | **Nine                Months**** Ended                September 30,** |   |
|--------------------------------------------------------|--------|-----------------------------------------------------------------------------|---------|--------|----------------------------------------------------------------------------|--------|
|                                                   |   | **2007**                                                                    |    |   | **2006**                                                                   |   |   | **2007** |   |   | **2006** |   |
| **Interest-bearing                liabilities:**       |   | **(dollars                in thousands)**                                   |    |
| Interest-bearing                demand deposits:       |   |                                                                        |    |
| Average                balance                         |   | $                                                                           | 74,417  |   |                                                                       | $      | 55,379 |   |   | $ | 61,658 |   |   | $ | 59,259 |   |
| Interest                expense                        |   |                                                                        | 720     |   |                                                                       |   | 457 |   |   |   | 1,678 |   |   |   | 1,340 |   |
| Average                cost of funds                   |   |                                                                        | 3.84    | %      |                                                                       |   | 3.27 | % |   |   | 3.64 | % |   |   | 3.02 | % |
| Savings                deposits:                       |   |                                                                        |    |   |                                                                       |   |   |   |   |   |   |   |   |   |   |   |
| Average                balance                         |   | $                                                                           | 16,160  |   |                                                                       | $      | 15,274 |   |   | $ | 15,678 |   |   | $ | 15,310 |   |
| Interest                expense                        |   |                                                                        | 149     |   |                                                                       |   | 120 |   |   |   | 415 |   |   |   | 330 |   |
| Average                cost of funds                   |   |                                                                        | 3.66    | %      |                                                                       |   | 3.13 | % |   |   | 3.54 | % |   |   | 2.89 | % |
| Time                certificates of deposit:           |   |                                                                        |    |   |                                                                       |   |   |   |   |   |   |   |   |   |   |   |
| Average                balance                         |   | $                                                                           | 289,422 |   |                                                                       | $      | 248,989 |   |   | $ | 289,232 |   |   | $ | 236,273 |   |
| Interest                expense                        |   |                                                                        | 3,762   |   |                                                                       |   | 2,940 |   |   |   | 11,081 |   |   |   | 7,800 |   |
| Average                cost of funds                   |   |                                                                        | 5.16    | %      |                                                                       |   | 4.69 | % |   |   | 5.12 | % |   |   | 4.41 | % |
| Other                borrowings:                       |   |                                                                        |    |   |                                                                       |   |   |   |   |   |   |   |   |   |   |   |
| Average                balance                         |   | $                                                                           | 100,833 |   |                                                                       | $      | 77,294 |   |   | $ | 98,340 |   |   | $ | 69,443 |   |
| Interest                expense                        |   |                                                                        | 1,246   |   |                                                                       |   | 972 |   |   |   | 3,636 |   |   |   | 2,443 |   |
| Average                cost of funds                   |   |                                                                        | 4.90    | %      |                                                                       |   | 4.99 | % |   |   | 4.94 | % |   |   | 4.70 | % |
| **Total                interest-bearing liabilities:** |   |                                                                        |    |   |                                                                       |   |   |   |   |   |   |   |   |   |   |   |
| Average                balance                         |   | $                                                                           | 480,832 |   |                                                                       | $      | 396,936 |   |   | $ | 464,908 |   |   | $ | 380,285 |   |
| Interest                expense                        |   |                                                                        | 5,877   |   |                                                                       |   | 4,489 |   |   |   | 16,810 |   |   |   | 11,913 |   |
| Average                cost of funds                   |   |                                                                        | 4.85    | %      |                                                                       |   | 4.49 | % |   |   | 4.83 | % |   |   | 4.19 | % |
|                                                   |   |                                                                        |    |   |                                                                       |   |   |   |   |   |   |   |   |   |   |   |
| **Net                interest income**                 |   | $                                                                           | 6,153   |   |                                                                       | $      | 5,787 |   |   | $ | 17,892 |   |   | $ | 16,789 |   |
| **Net                interest spread**                 |   |                                                                        | 3.74    | %      |                                                                       |   | 4.21 | % |   |   | 3.79 | % |   |   | 4.34 | % |
| **Net                interest margin**                 |   |                                                                        | 4.39    | %      |                                                                       |   | 4.90 | % |   |   | 4.44 | % |   |   | 4.99 | % |

**.**

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***Table            of Contents***

***Financial      Condition***

| **Selected                balance sheet accounts****(dollars                in thousands)** |   | **September                30,****2007** |    |   | **December                31, 2006** |   |    | **Increase                (Decrease)** |   |   | **Percent                of Increase (Decrease)** |   |
|---------------------------------------------------------------------------------------------|--------|------------------------------------------|---------|--------|--------------------------------------|--------|---------|----------------------------------------|--------|--------|---------------------------------------------------|--------|
|                                                                                        |   |                                     |    |   |                                 |   |    |                                   |   |   |                                              |   |
| Cash                and cash equivalents                                                    |   | $                                        | 16,238  |   |                                 | $      | 11,343  |                                   |   | $      | 4,895                                             |   |   |   | 43.2 | % |
| Time                deposits in other financial institutions                                |   |                                     | 654     |   |                                 |   | 536     |                                   |   |   | 118                                               |   |   |   | 22.0 | % |
| Investment                securities available-for-sale                                     |   |                                     | 20,371  |   |                                 |   | 22,097  |                                   |   |   | (1,726                                            | )      |   |   | (7.8 | %) |
| Investment                securities held-to-maturity                                       |   |                                     | 16,236  |   |                                 |   | 10,535  |                                   |   |   | 5,701                                             |   |   |   | 54.1 | % |
| Federal                Home Loan Bank stock, at cost                                        |   |                                     | 5,123   |   |                                 |   | 4,465   |                                   |   |   | 658                                               |   |   |   | 14.7 | % |
| Federal                Reserve Bank stock, at cost                                          |   |                                     | 812     |   |                                 |   | 812     |                                   |   |   | -                                                 |   |   |   | - |   |
| Loans-held                for sale                                                          |   |                                     | 96,978  |   |                                 |   | 75,795  |                                   |   |   | 21,183                                            |   |   |   | 27.9 | % |
| Loans-held                for investment, net                                               |   |                                     | 408,237 |   |                                 |   | 375,777 |                                   |   |   | 32,460                                            |   |   |   | 8.6 | % |
| Total                Assets                                                                 |   |                                     | 580,985 |   |                                 |   | 516,615 |                                   |   |   | 64,370                                            |   |   |   | 12.5 | % |
|                                                                                        |   |                                     |    |   |                                 |   |    |                                   |   |   |                                              |   |   |   |   |   |
| Total                Deposits                                                               |   |                                     | 415,608 |   |                                 |   | 368,747 |                                   |   |   | 46,861                                            |   |   |   | 12.7 | % |
| Federal                Home Loan Bank advances                                              |   |                                     | 109,000 |   |                                 |   | 95,000  |                                   |   |   | 14,000                                            |   |   |   | 14.7 | % |
|                                                                                        |   |                                     |    |   |                                 |   |    |                                   |   |   |                                              |   |   |   |   |   |
| Total                Stockholders' Equity                                                   |   |                                     | 49,478  |   |                                 |   | 46,820  |                                   |   |   | 2,658                                             |   |   |   | 5.7 | % |

|                                                     |   | **September                30,**** 2007** |    |   | **December                31,****2006** |   |    | **Increase                (Decrease)** |   |   | **Percent                of Increase (Decrease)** |   |   |
|----------------------------------------------------------|--------|------------------------------------------------|---------|--------|-----------------------------------------|--------|---------|----------------------------------------|--------|--------|---------------------------------------------------|--------|--------|
|                                                     |   | **(dollars                in thousands)**      |    |   |                                    |   |    |
| Non-interest-bearing                deposits             |   | $                                              | 33,602  |   |                                    | $      | 33,033  |                                   |   | $      | 569                                               |   |   |   | 1.7 | % |
| Interest-bearing                deposits                 |   |                                           | 78,763  |   |                                    |   | 49,975  |                                   |   |   | 28,788                                            |   |   |   | 57.6 | % |
| Savings                                                  |   |                                           | 15,395  |   |                                    |   | 14,522  |                                   |   |   | 873                                               |   |   |   | 6.0 | % |
| Time                certificates of $100,000 or more (1) |   |                                           | 66,294  |   |                                    |   | 70,398  |                                   |   |   | (4,104                                            | )      |   |   | (5.8 | %) |
| Other                time certificates (1)               |   |                                           | 221,554 |   |                                    |   | 200,819 |                                   |   |   | 20,735                                            |   |   |   | 10.3 | % |
| Total                deposits                            |   | $                                              | 415,608 |   |                                    | $      | 368,747 |                                   |   | $      | 46,861                                            |   |   |   | 12.7 | % |

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

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***Table            of Contents***

|                                                                       |   | **September                  30,**  |   |   | **December                  31,** |   |
|----------------------------------------------------------------------------|--------|-------------------------------------|--------|--------|-----------------------------------|--------|
|                                                                       |   | **2007**                            |   |   | **2006**                          |   |
|                                                                       |   | **(in                  thousands)** |   |
| Impaired                  loans without specific valuation allowances      |   | $                                   | 35     |   |                              | $      | 63 |   |
| Impaired                  loans with specific valuation allowances         |   |                                | 10,345 |   |                              |   | 5,145 |   |
| Specific                  valuation allowances allocated to impaired loans |   |                                | (946   | )      |                              |   | (641 | ) |
| Impaired                  loans, net                                       |   | $                                   | 9,434  |   |                              | $      | 4,567 |   |
|                                                                       |   |                                |   |   |                              |   |   |   |
| Average                  investment in impaired loans                      |   | $                                   | 7,082  |   |                              | $      | 4,074 |   |

|                                                                      |   | **September                  30,**          |   |   | **December                  31,** |   |
|---------------------------------------------------------------------------|--------|---------------------------------------------|--------|--------|-----------------------------------|--------|
|                                                                      |   | **2007**                                    |   |   | **2006**                          |   |
|                                                                      |   | **(dollars                  in thousands)** |   |
| Nonaccrual                  loans                                         |   | $                                           | 8,334  |   |                              | $      | 7,417 |   |
| SBA                  guaranteed portion of loans included above           |   |                                        | (4,931 | )      |                              |   | (4,256 | ) |
| Nonaccrual                  loans, net                                    |   | $                                           | 3,403  |   |                              | $      | 3,161 |   |
|                                                                      |   |                                        |   |   |                              |   |   |   |
| Troubled                  debt restructured loans, gross                  |   | $                                           | 1,391  |   |                              | $      | 68 |   |
| Loans                  30 through 89 days past due with interest accruing |   | $                                           | 3,187  |   |                              | $      | 2,463 |   |
| Allowance                  for loan losses to gross loans                 |   |                                        | .84    | %      |                              |   | .86 | % |

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

***Liquidity      Management***

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***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 |   |
|----------------------------------------|--------|------------------------------|--------|--------|-------------------------------|--------|--------|-------------------------------------|--------|--------|----------------------------------------|--------|--------|------------------------------------|---------|--------|-------------------------------------|--------|--------|--------------------------------------|--------|
| September                30, 2007      |   |                         |   |   |                          |   |   |                                |   |   |                                   |   |   |                               |    |   |                                |   |   |                                 |   |
| CWBC                (Consolidated)     |   | $                            | 53,702 |   |                          | $      | 49,409 |                                |   | $      | 485,475                                |   |   | $                                  | 558,025 |   |                                |   | 11.06  | %                                    |   |   | 10.18 | % |   |   | 8.59 | % |
| CWB                                    |   |                         | 49,498 |   |                          |   | 45,205 |                                |   |   | 485,495                                |   |   |                               | 553,787 |   |                                |   | 10.20  |                                 |   |   | 9.31 |   |   |   | 7.92 |   |
|                                   |   |                         |   |   |                          |   |   |                                |   |   |                                   |   |   |                               |    |   |                                |   |   |                                 |   |   |   |   |   |   |   |   |
| 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** |
|-------------------------------------------------------|

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***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** |
|----------------------------|---------------------------------------------------------------------------------------|

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

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

|   | 10.1 | Employment                and Confidentiality Agreement dated September 6, 2007 among Community                West                Bank, Community West Bancshares and Richard M. Favor (incorporated                by                reference from the Registrant’s Form 8-K filed with the Commission on                November 2, 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***

NA

|                                   |                                                      | **COMMUNITY                WEST BANCSHARES** |
|----------------------------------------|-----------------------------------------------------------|----------------------------------------------|
|                                   |                                                      | (Registrant)                                 |
|                                   |                                                      |
|                                   |                                                      |
| Date:                November 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 |

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***Table            of Contents***

**EXHIBIT      INDEX**

| **Exhibit                  Number** |   | **Description                  of Document** |   |
|-------------------------------------|--------|----------------------------------------------|--------|

**                **

| 10.1 | Employment                and Confidentiality Agreement dated September 6, 2007 among Community                West                Bank, Community West Bancshares and Richard M. Favor (incorporated                by                reference from the Registrant’s Form 8-K filed with the Commission on                November 2, 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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