Community West Bancshares, parent company of Community West Bank, reported Thursday net income of $1 million in the third quarter of 2010 compared with income of $69,000 in the third quarter a year ago.

The loan loss provision in the third quarter of 2010 was $1.5 million compared with $2.6 million in 2009. For the first nine months of the year, Community West reported net income of $1 million, compared with a net loss of $5.9 million for the first nine months of 2009. The loan loss provision for the first nine months of the year was $7.5 million compared with $15.9 million for the first nine months of 2009.

“We generated a solid quarterly profit primarily due to an improved net interest margin and a strong core business model,” said Lynda Nahra, president and chief executive officer. “We have made steady progress in strengthening Community West with improved operating efficiencies and strong core deposit growth. These results were generated in spite of the current economic uncertainties.”

Third Quarter 2010 Highlights

» Completed a successful public convertible debenture offering of $8.09 million.

» Net income to common stockholders was $784,000, or 12 cents per diluted common share.

» Community West Bank continues to exceed well-capitalized levels with a Total risk-based capital ratio of 12.65 percent, Tier 1 risk-based capital ratio of 11.38 percent and Tier 1 leverage ratio of 9.09 percent.

» Net interest margin was 4.49 percent, a 37 basis point improvement compared with the third quarter of 2009.

» Core deposits increased 41 percent compared with a year ago.

» Nonperforming loans were $15.1 million, or 2.51 percent of total loans.

» The efficiency ratio was 60.4 percent, a 7.8 percent improvement compared with the third quarter of 2009.

In the third quarter 2010, including the $261,000 preferred stock dividend, the net income applicable to common stockholders was $784,000, or 12 cents per diluted share, compared with a net loss applicable to common stockholders of $192,000, or 3 cents per diluted share, in the third quarter a year ago.

— Charles Baltuskonis is the executive vice president and chief financial officer for Community West Bancshares.