================================================

                    U.S. Securities and Exchange Commission

                             Washington, D.C. 20549

                                   ----------

                                  FORM 10-QSB

                     [x] QUARTERLY REPORT UNDER SECTION 13
                      OR 15(d) OF THE SECURITIES EXCHANGE
                                  ACT OF 1934
                  For the quarterly period ended June 30, 1999

                                       OR

                     [ ] TRANSITION REPORT UNDER SECTION 13
                      OR 15(d) OF THE SECURITIES EXCHANGE
                                  ACT OF 1934

                                   ----------

                           Commission File No. 0-8117


                        CHURCH LOANS & INVESTMENTS TRUST


     State of Organization                      IRS Employer Identification
     ---------------------                      ---------------------------
           Texas                                       No. 75-6030254
                                 5305 I-40 West
                             Amarillo, Texas 79106

                  Registrant's telephone number: 806-358-3666


                                   ----------


     Check whether the issuer (1) has filed all reports  required to be filed by
Section 13 or 15(d) of the  Exchange  Act during the past 12 months (or for such
shorter period that the  registrant was required to file such reports),  and (2)
has been subject to such filing requirements for the past 90 days.

                               Yes [ X ] No [ _ ]


As of June 30, 1999,  7,000,806 shares of the Registrant's  shares of beneficial
interest were outstanding.

     Transitional Small Business Disclosure Format (check one)

                               Yes [ _ ] No [ X ]
<PAGE>
                        CHURCH LOANS & INVESTMENTS TRUST



                                     INDEX

                                                                     Page
                                                                     ----
        Part I.

             Item 1:  Financial Information:

                      Condensed Balance Sheets at June 30, 1999
                          and March 31, 1999 .......................   1

                      Condensed Statements of Income for the
                          three-month periods ended
                          June 30, 1999 and 1998 ...................   2

                      Condensed Statements of Cash Flows
                          for the three-month periods ended
                          June 30, 1999 and 1998 ..................    3

                      Notes to Condensed Financial Statements .....    4

             Item 2:  Management's Discussion and Analysis or
                       Plan of Operation ..........................    6

        Part II.  Other Information ...............................    9

        Signatures ................................................    10
<PAGE>


<PAGE>
                        CHURCH LOANS & INVESTMENTS TRUST
                        (A Real Estate Investment Trust)

                          PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

                      Condensed Balance Sheets (Unaudited)
                        June 30, 1999 and March 31, 1999

                  ASSETS                           June 30, 1999  March 31, 1999
                  ------                           -------------  --------------
CASH AND CASH EQUIVALENTS ......................   $     49,965    $    181,068
RECEIVABLES
    Mortgage loans and church bonds -
     performing ................................     23,934,339      23,109,175
    Interim construction loans - performing ....     10,112,086      10,406,937
    Nonperforming mortgage loans, church
     bonds and
      interim construction loans ...............      2,754,509       3,555,029
    Less: Allowance for possible credit losses .     (1,260,213)     (1,215,213)
                                                   ------------    ------------
                                                     35,540,721      35,855,928
    Accrued interest receivable ................        425,838         323,396
    Notes receivable ...........................        408,424         407,111
                                                   ------------    ------------
                  Total receivables ............     36,374,983      36,586,435
PROPERTY AND EQUIPMENT, net ....................        178,029         181,947
REAL ESTATE ACQUIRED THROUGH FORECLOSURE .......        314,196         314,196
UNAMORTIZED DEBT EXPENSE AND OTHER ASSETS ......         26,597          28,891
                                                   ------------    ------------
TOTAL ASSETS ...................................   $ 36,943,770    $ 37,292,537
                                                   ============    ============
                      LIABILITIES AND SHAREHOLDERS' EQUITY
LIABILITIES
    Notes payable and line of credit:
      Related party ............................   $  1,958,978    $  1,921,680
      Other ....................................     10,202,695      10,185,984
                                                   ------------    ------------
                                                     12,161,673      12,107,664
                                                   ------------    ------------
    Secured savings certificates ...............      1,954,000       2,763,376
    Accrued interest payable ...................         53,897         104,785
    Other ......................................      1,063,799       1,059,035
                                                   ------------    ------------
                  Total liabilities ............     15,233,369      16,034,860
                                                   ------------    ------------
SHAREHOLDERS' EQUITY
    Shares of beneficial interest, no par value;
     authorized shares unlimited, 7,007,402
     shares issued .............................     20,623,866      20,623,866
    Undistributed net income ...................      1,103,025         650,301
    Treasury shares, at cost (6,596 shares) ....        (16,490)        (16,490)
                                                   ------------    ------------
                  Total shareholders' equity ...     21,710,401      21,257,677
                                                   ------------    ------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY .....   $ 36,943,770    $ 37,292,537
                                                   ============    ============
      These financial statements should be read only in connection with the
                   accompanying notes to financial statements.

                                      -1-
<PAGE>
                        CHURCH LOANS & INVESTMENTS TRUST
                        (A Real Estate Investment Trust)
                   Condensed Statements of Income (Unaudited)
                Three-month periods ended June 30, 1999 and 1998

                                                         Three-month periods
                                                            ended June 30,
                                                          1999          1998
                                                          ----          ----
INTEREST INCOME AND FEES
     Interest and fees on mortgage
       loans, church bonds and
       interim construction loans ...................   $1,613,225   $1,134,694
     Interest on temporary
       investments ..................................        5,348       12,744
                                                        ----------   ----------
          Total interest
           income and fees ..........................    1,618,573    1,147,438
                                                        ----------   ----------
DEBT EXPENSE
     Interest .......................................      245,529      302,931
     Amortization of commissions
      paid to brokers ...............................        5,059       12,239
                                                        ----------   ----------
          Total debt expense ........................      250,588      315,170
                                                        ----------   ----------
          Net interest income .......................    1,367,985      832,268
PROVISION FOR POSSIBLE
    CREDIT LOSSES ...................................       45,000       45,000
                                                        ----------   ----------
          Net interest income
            less provision for
            possible credit
            losses ..................................    1,322,985      787,268
                                                        ----------   ----------
OTHER INCOME ........................................        2,656        1,429
OTHER OPERATING EXPENSES
     General and administrative .....................      158,533      165,306
     Board of Trust Managers'
      fees ..........................................       14,303       14,413
                                                        ----------   ----------
           Total other
            operating expenses ......................      172,836      179,719
                                                        ----------   ----------
           Income before provision
            for income taxes ........................    1,152,805      608,978
PROVISION FOR INCOME TAXES ..........................         --            449
                                                        ----------   ----------
          NET INCOME ................................   $1,152,805   $  608,529
                                                        ==========   ==========
WEIGHTED AVERAGE NUMBER
     OF SHARES OUTSTANDING ..........................    7,000,806    7,007,402
                                                        ==========   ==========

NET INCOME PER SHARE                                    $      .16    $     .09
                                                              ====         ====
DIVIDENDS PER SHARE                                     $      .10    $     .11
                                                              ====         ====

      These financial statements should be read only in connection with the
                  accompanying notes to financial statements.

                                      -2-
<PAGE>
                        CHURCH LOANS & INVESTMENTS TRUST
                        (A Real Estate Investment Trust)

                 Condensed Statements of Cash Flows (Unaudited)
                Three-month periods ended June 30, 1999 and 1998

                                                         Three-month periods
                                                            ended June 30,
                                                          1999          1998
                                                          ----          ----
CASH FLOWS FROM OPERATING ACTIVITIES
     Net income ..................................   $ 1,152,805    $   608,529
     Adjustments to reconcile net income to net
        cash provided by operating activities:
         Depreciation ............................         3,918          3,919
         Amortization of debt expense ............         5,059         12,239
         Amortization of loan discounts ..........       (28,344)       (38,092)
         Provision for possible credit losses ....        45,000         45,000
         Changes in:
           Accrued interest receivable ...........      (102,442)       (81,027)
           Accrued interest payable ..............       (50,888)        77,432
           Other liabilities .....................         4,764         41,736
           Other, net ............................        (2,765)        (6,788)
                                                     -----------    -----------
                  Net cash provided by operating
                   activities ....................     1,027,107        662,948
                                                     -----------    -----------
CASH FLOWS FROM INVESTING ACTIVITIES
     Investment in mortgage and interim
        construction loans and church bonds ......    (5,391,356)    (6,523,515)
     Payments received on mortgage and interim
       construction loans and church bonds .......     5,689,907      3,876,284
     Investments in notes receivable .............       (81,023)      (124,651)
     Payments received on notes receivable .......        79,710         85,074
                                                     -----------    -----------
                  Net cash provided (used) by
                   investing activities ..........       297,238     (2,686,808)
                                                     -----------    -----------
CASH FLOWS FROM FINANCING ACTIVITIES
     Bank overdraft ..............................          --          178,475
     Borrowings on notes payable .................     6,326,938      7,119,702
     Principal payments on:
       Secured savings certificates ..............      (809,376)    (1,215,325)
       Notes payable .............................    (6,272,929)    (3,320,581)
     Cash dividends ..............................      (700,081)      (770,814)
                                                     -----------    -----------
                  Net cash provided (used) by
                   financing activities ..........    (1,455,448)     1,991,457
                                                     -----------    -----------
                  Decrease in cash and
                   cash equivalents ..............      (131,103)       (32,403)
CASH AND CASH EQUIVALENTS AT
     BEGINNING OF PERIOD .........................       181,068         32,403
                                                     -----------    -----------
CASH AND CASH EQUIVALENTS AT END OF PERIOD .......   $    49,965    $      --
                                                     ===========    ===========
Supplemental disclosure of cash flow information
     Cash paid during the period for interest ....   $   296,417    $   225,499
                                                     ===========    ===========

      These financial statements should be read only in connection with the
                  accompanying notes to financial statements.

                                      -3-
<PAGE>

                        CHURCH LOANS & INVESTMENTS TRUST
                        (A Real Estate Investment Trust)
               Notes to Condensed Financial Statements (Unaudited)

NOTE 1 - GENERAL

See Summary of Significant  Accounting  Policies in the Trust's Annual Report on
Form 10- KSB405 for a summary of the Trust's significant accounting policies.

The unaudited condensed financial  statements included herein were prepared from
the  books  of the  Trust  in  accordance  with  generally  accepted  accounting
principles and reflect all adjustments (consisting of normal recurring accruals)
which are, in the opinion of  management,  necessary to a fair  statement of the
results of  operations  and  financial  position for the interim  periods.  Such
financial  statements  generally  conform to the  presentation  reflected in the
Trust's  Annual Report to  Shareholders.  The current  interim  period  reported
herein is included in the fiscal year subject to independent audit at the end of
that year and is not  necessarily an indication of the expected  results for the
fiscal year.

NOTE 2 - Weighted Average Interest Rates

Weighted  average  interest rates and net interest rate margins at June 30, 1999
and 1998, were as follows:

                                Mortgage loan and         Total     Net interest
                               church bond portfolio  indebtedness   rate margin
                               ---------------------  ------------   -----------

         June 30, 1999                 9.82%              6.87%         2.95%
         June 30, 1998                10.57%              7.48%         3.09%


NOTE 3 - Contractual Maturities

Scheduled  principal payments on mortgage loans,  church bonds and interim loans
and  indebtedness  (including  secured savings  certificates  and notes payable)
outstanding at June 30, 1999, for the five  twelve-month  periods  subsequent to
June 30, 1999, follow:

            Twelve-month period    Mortgage loans, church bonds
            ending June 30              and interim loans           Indebtedness
            -------------------         -----------------           ------------
                      2000                $12,838,270                $14,089,673
                      2001                  1,543,730                     26,000
                      2002                  1,551,506                         -
                      2003                  1,583,067                         -
                      2004                  1,673,923                         -
                                           ----------                 ----------

                                      -4-
<PAGE>

                        CHURCH LOANS & INVESTMENTS TRUST
                        (A Real Estate Investment Trust)
               Notes to Condensed Financial Statements (Unaudited)

NOTE 4 - Mortgage Loans, Church Bonds and Interim Construction Loans

Mortgage loans, church bonds and interim construction loans on which the accrual
of interest had been discontinued  amounted to $2,754,509 and $2,420,094 at June
30, 1999 and 1998,  respectively.  If interest on these mortgage  loans,  church
bonds and interim  construction  loans had been accrued as earned,  interest and
fees on loans in the accompanying condensed statements of income would have been
increased by approximately $76,000 and $66,000 for the three-month periods ended
June 30, 1999 and 1998, respectively. Interest income actually recognized during
1999 and 1998 was approximately $19,000 and $24,000, respectively.

NOTE 5 - Secured Savings Certificates

Secured Savings  Certificates  (Certificates) are issued in amounts of $1,000 or
more and have single maturity dates from 30 days to 10 years from date of issue.
With  respect to an  individual  Certificate,  interest  rate and  frequency  of
payment of interest (either  monthly,  quarterly,  semiannually,  annually or at
maturity) are fixed at the time of issuance of the  Certificate.  Effective July
1997, Church Loans discontinued the sale of Certificates.

Certificates  are secured under the terms of an indenture that  requires,  among
other  things,  the  pledge of  mortgage  notes  receivable  with  total  unpaid
principal  amounts  not less  than  100% of the  aggregate  principal  amount of
Certificates outstanding.

                   This information is an integral part of the
                       accompanying financial statements.

                                      -5-
<PAGE>
                        CHURCH LOANS & INVESTMENTS TRUST
                        (A Real Estate Investment Trust)

Item 2. Management's Discussion and Analysis or Plan of Operation

Results of  Operations -  Three-Month  Period Ended June 30, 1999 as Compared to
the Three-Month Period Ended June 30, 1998:


                                    Revenues

On June 17, 1999, the Trust  received  $1,380,493 in full and final payment of a
loan owing to the Trust from St. Stephens  Church of God in Christ,  Inc. of San
Diego,  California.  Such  amount  paid  in full  the  principal,  interest  and
attorney's fees owing to the Trust by such Borrower. The loan had been accounted
for as a nonperforming  loan by the Trust and certain interest payments had been
credited  to  principal.  Therefore,  the  pay-off  resulted  in  an  additional
recognition of interest income of approximately $611,000 during June 1999.

The Trust's  revenues are derived from  interest  income earned on loans as well
as,  to a  lesser  degree,  interest  earned  on  church  bonds  and  short-term
investments.   The  increase  in  the  Trust's  revenues  of  $471,135  for  the
three-month period ended June 30, 1999, as compared to the corresponding  period
in 1998 is primarily due to the pay-off of the  aforementioned  loan, the effect
of which was offset by a decrease in the amount of  performing  loans and church
bonds  from  approximately   $35,656,000  at  June  30,  1998  to  approximately
$34,046,000 at June 30, 1999 and also a decline in the average rate of return of
the  mortgage  loan and church  bond  portfolio  from 10.57% at June 30, 1998 to
9.82% at June 30, 1999.

At June 30, 1999,  the Trust has four loans  totaling  approximately  $4,187,000
(accrued  interest totaling  approximately  $139,000) to a certain borrower that
began  experiencing  cash flow  difficulty  and has been unable to make  certain
required monthly interest payments. The Trust believes that the borrower will be
able to improve its cash flow and,  therefore,  has not yet  accounted for these
loans as  nonperforming;  however,  the Trust will  continue to closely  monitor
these  loans,  and  it is  possible  that  the  loans  could  be  classified  as
nonperforming in the future.

                                Interest Expense

The most  significant  expense  item is interest  expense  which  comprised  the
majority of total operating  expense for each of the  three-month  periods ended
June 30, 1999 and 1998.  The  decrease of $57,402 in interest  expense  resulted
from a decrease in the average total amount of indebtedness  outstanding  during
the three-month  period ended June 30, 1999 as compared to the same period ended
June 30,  1998 and a  decrease  in the  weighted  average  interest  rate on all
indebtedness from 7.48% at June 30, 1998 to 6.87% at June 30, 1999.

                            Other Operating Expenses

Other operating  expenses were $172,836 for the three months ended June 30, 1999
and were less than the  $179,719 for the same period in 1997,  primarily  due to
lower legal costs.

                                      -6-
<PAGE>
                        CHURCH LOANS & INVESTMENTS TRUST
                        (A Real Estate Investment Trust)

                                    Year 2000

The following  information  which appears in this section  constitutes Year 2000
Readiness  Disclosure,  pursuant  to  the  Year  2000  ("Y2K")  Information  and
Readiness  Disclosure Act. The Year 2000 issue is the result of computer systems
using a two-digit  format,  as opposed to four digits, to indicate the year. Any
of the Trust's computer programs or hardware that have  date-sensitive  software
or embedded chips may not appropriately interpret dates beyond the year 1999.

This could result in a system failure,  miscalculation  or other computer errors
causing  disruptions  of  operations.  The  Trust's  plan to  address  the issue
involves the follow five phases: awareness, assessment, remediation, testing and
implementation.  The plan also  involves  communicating  with  external  service
providers to ensure that they are taking  appropriate  action to remedy any Year
2000 issues.  To date,  the Trust has completed  its  assessment of systems that
could be affected by the Year 2000. As part of the  assessment  phase,  systems,
which have the greatest impact, were designated as mission critical systems.

Internal mission  critical  systems include the Trust's internal  accounting and
information system. This system includes a small server-based local area network
and a small peer-to-peer network that uses commercially  available operating and
networking software. The vendors (primarily Microsoft,  Compaq and Gateway) have
certified this hardware and software as Year 2000 compliant. The Trust's primary
application programs (including general ledger, mortgage loan, shareholder, bond
financing and Secured Savings  Certificate  accounting  modules) are customized.
During  November  1998,  an  independent  consultant  performed  an  analysis to
determined  if programs  were Year 2000  compliant.  The cost of the testing was
less than $1,000.

The  Trust has  engaged  the  consultant  to  modify  and test the  noncompliant
programs.  Remediation  began about  December 1998 and through June 30, 1999 was
65% complete.  The consultant has committed to the completion of remediation and
testing no later than December 15, 1999,  however, it is believed that remaining
modifications  and testing  will be  virtually  complete by the end of the third
calendar  quarter.  It is estimated that the cost to modify the files will range
from $6,000 to $7,500 (excluding the cost to upgrade and replace systems used in
the  ordinary  course of  business).  Such  costs  will be charged to expense as
incurred.

The Trust's  operations are relatively  simple.  As far as essential vendors are
concerned,  the primary ones are considered to be the Trust's  primary bank (the
same bank serves as  depositor  and  lender),  and the  electric  and  telephone
utility.  The Trust has received  reports from these  providers  regarding their
efforts to attain Y2K readiness. The negative impact of large loan customers who
have not dealt with the  implications  of the Y2K  problem  on their  operations
could be serious to the Trust. However, the Trust does not believe that the risk
to its  typical  loan  customer  is as  great  as it is to a  normal  commercial
operation.  This is due to the fact that the source of loan  payments  generally
made by all churches is from individuals making  contributions via cash or check
to the church.  Accordingly, it is believed that most churches should not suffer
adversely  from  the Y2K  issue.  Nevertheless,  the  Trust  surveyed  its  loan
customers  with  balances over $100,000 in the first quarter of calendar 1999 to
determine their Y2K  compliance.  Most churches have responded that they will be
in  compliance.  The Trust intends to follow up soon on those  churches who have
not responded.

                                      -7-
<PAGE>
                        CHURCH LOANS & INVESTMENTS TRUST
                        (A Real Estate Investment Trust)

The Trust believes that it has an effective program in place to resolve the Year
2000 issue in a timely manner and that it is unlikely that Year 2000 issues will
cause any  significant  problems  with  customer  service  or  otherwise  have a
material  adverse  impact on the Trust's  operations  or financial  performance.
However,  if appropriate  modifications are not completed in a timely manner for
some unexpected reason, the Year 2000 issue could impact the Trust's operations.
In  addition,  disruptions  in the economy  generally  resulting  from Year 2000
issues could also  materially  impact the Trust.  There can be no guarantee that
the systems of other companies on which the Trust is effected will be remediated
in a timely manner and not have any adverse impact on the Trust's operations. At
this time, the Trust has not developed year 2000 contingency  plans,  other than
the review and remedial  actions  described  above, and does not intend to do so
unless  the  Trust  believes  such  plans  are  merited  by the  results  of its
continuing Year 2000 review.

The Trust has not  developed a "worst case"  scenario  with respect to Year 2000
issues,  but  instead  has  focused  its  resources  on  identifying   material,
remediable problems and reducing uncertainties generally,  through the Year 2000
review described above.

                                      -8-
<PAGE>
                        CHURCH LOANS & INVESTMENTS TRUST
                        (A Real Estate Investment Trust)

                           PART II. OTHER INFORMATION

Item 6. Exhibits and Reports on Form 8-K:

(a)    Exhibits:  None.

(b)    Reports on Form 8-K:  None.

                                      -9-
<PAGE>


                        CHURCH LOANS & INVESTMENTS TRUST

                                   SIGNATURES

In accordance  with the  requirements  of the Exchange Act, the  registrant  has
caused this report to be signed on its behalf by the undersigned, thereunto duly
authorized.

                                                CHURCH LOANS & INVESTMENTS TRUST



DATE: August 10, 1999                              BY:/s/ B.R. McMorries
                                                   -----------------------------
                                                   B.R. McMorries,
                                                   Chairman of the Board of
                                                   Trust Managers


DATE: August 10, 1999                              BY:/s/ Kelly Archer
                                                   -----------------------------
                                                   Kelly Archer
                                                   Chief Financial Officer





                                      -10-