Community West Bancshares (NASDAQ: CWBC), parent company of Community West Bank, on Tuesday reported net income of $97,000 for the fourth quarter of 2009, compared with $61,000 in the fourth quarter a year ago. For the full year, Community West reported a net loss of $5.8 million, compared with net income of $1.5 million for 2008. The loan loss provision for the year was $18.7 million, compared with $5.3 million in 2008.

“Community West posted a solid quarter with respect to strong deposit growth, controlled operating costs, an expanding net interest margin and stabilization in credit quality,” president/CEO Lynda Nahra said. “The ongoing margin improvement, along with cost reductions we implemented at the beginning of 2009, continues to enhance our positive operating earnings. While we continued to see stress in our lending environment, overall asset quality improved with reductions in nonaccrual loans and other real estate owned.”

Fourth-Quarter 2009 Highlights

» Net interest margin improved 6 basis points to 4.18 percent compared with the third quarter of 2009, and improved 69 basis points compared with the fourth quarter of 2008.

» Nonperforming loans decreased $1.6 million from the prior quarter to $16.2 million, or 2.62 percent of total loans.

» Nonperforming assets improved to 2.63 percent of total assets compared with 3.12 percent in the previous quarter.

» Allowance for loan losses increased to 2.67 percent of total loans held for investment and 85 percent of nonperforming loans compared with 2.62 percent of total loans held for investment and 75 percent of nonperforming loans in the previous quarter.

» Total deposits increased 12 percent with interest-bearing demand deposits more than doubling.

» The efficiency ratio improved to 63.4 percent from 65.6 percent in the third quarter of 2009 and 76.1 percent in the fourth quarter of 2008.

For the fourth quarter of 2009, including the $262,000 preferred stock dividend, the net loss available to common shareholders was $165,000, or 3 cents per diluted share, compared with net income available to common shareholders of $26,000, or zero per diluted share in the fourth quarter a year ago.

For the full year, the net loss available to common shareholders was $6.8 million, or $1.15 per diluted share, compared with net income available to common shareholders of $1.4 million, or 24 cents per diluted share a year ago.

— Lynnette Coverly is the vice president of marketing for Community West Bank.