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# U.S. Securities and Exchange Commission

# Washington, D.C. 20549

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# FORM 10-QSB

# [X] QUARTERLY REPORT UNDER SECTION 13
OR 15(d) OF THE SECURITIES EXCHANGEACT OF 1934

For the quarterly period ended December 31, 2000

OR

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

# ACT OF 1934

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Commission File No. 0-8117

# CHURCH LOANS & INVESTMENTS TRUST

State of Organization - Texas

Internal Revenue Service  Employer
Identification No. 75-6030254

5305 I-40 West

Amarillo, Texas 79106

Registrants telephone number:
806-358-3666

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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   December   31,   2000,   7,000,806   shares  of  the
Registrants shares of beneficial interest were outstanding.

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# CHURCH LOANS & INVESTMENTS TRUST
INDEX

|Part I.    |                                                                                                            | Page
|---------- | ---------------------------------------------------------------------------------------------------------- | ----
|Item 1:    | Financial Information:                                                                                     |     
|           | Condensed Balance Sheets at December 31, 2000 and March 31, 2000                                           | 1   
|           | Condensed Statements of Income for the Three-Month and Nine-Month Periods Ended December 31, 2000 and 1999 | 2   
|           | Condensed Statements of Cash Flows for the Nine-month periods ended December 31, 2000 and 1999             | 3   
|           | Notes to Condensed Financial Statements                                                                    | 4   
|Item 2:    | Management's Discussion and Analysis or Plan of Operation                                                  | 6   
|Part II.   | Other Information                                                                                          | 7   
|Signatures |                                                                                                            | 8   

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# CHURCH LOANS & INVESTMENTS TRUST

(A Real Estate Investment Trust)
PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

Condensed Balance Sheets (Unaudited)
December 31, 2000 and March 31, 2000

`ASSETS
                                                                                   December 31,          March 31,
                                                                                        2000                 2000
                                                                                 -----------------    -----------------
CASH AND CASH EQUIVALENTS                                                               $ 122,743            $ 387,087
RECEIVABLES
      Mortgage loans and church bonds - performing                                     22,913,972           22,141,873
      Interim construction loans - performing                                          13,962,859            8,827,383
      Nonperforming mortgage loans, church bonds and
          interim construction loans                                                    5,595,605            5,967,657
      Less:  Allowance for possible credit losses                                      (1,523,172)          (1,388,172)
                                                                                 -----------------    -----------------
                                                                                       40,949,264           35,548,741
      Accrued interest receivable                                                         417,625              258,593
      Notes receivable                                                                    880,871              599,969
                                                                                 -----------------    -----------------
              Total receivables                                                        42,247,760           36,407,303
PROPERTY AND EQUIPMENT, net                                                               154,521              166,275
REAL ESTATE ACQUIRED THROUGH FORECLOSURE                                                        -              968,349
OTHER ASSETS                                                                               19,816               15,926
                                                                                 -----------------    -----------------
TOTAL ASSETS                                                                         $ 42,544,840         $ 37,944,940
                                                                                 =================    =================

                                                    LIABILITIES AND SHAREHOLDERS' EQUITY
LIABILITIES
      Notes payable and line of credit:
          Related party                                                               $ 2,610,339          $ 2,820,128
          Other                                                                        16,324,454           12,043,064
                                                                                 -----------------    -----------------
                                                                                       18,934,793           14,863,192
                                                                                 -----------------    -----------------
      Secured savings certificates                                                              -              726,000
      Accrued interest payable                                                            108,604              108,320
      Dividends payable                                                                 2,170,250                    -
      Other                                                                               743,880              660,250
                                                                                 -----------------    -----------------
              Total liabilities                                                        21,957,527           16,357,762
                                                                                 -----------------    -----------------

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                                                            (20,063)             979,802
      Treasury shares, at cost (6,596 shares)                                             (16,490)             (16,490)
                                                                                 -----------------    -----------------
              Total shareholders' equity                                               20,587,313           21,587,178
                                                                                 -----------------    -----------------

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY                                           $ 42,544,840         $ 37,944,940
                                                                                 =================    =================`

These condensed financial statements should be read
only in  connection  with  the  accompanying  notes to  condensed  financial
statements.
-1-

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# CHURCH LOANS & INVESTMENTS TRUST

(A Real Estate Investment Trust)

Condensed Statements of Income (Unaudited)
Three-Month and Nine-Month periods ended December 31, 2000 and 1999

`Three-month periods ended               Nine-month periods ended
                                                             December 31,                            December 31,
                                                       2000               1999                 2000               1999
                                                   --------------    ---------------      ---------------    ---------------
INTEREST INCOME AND FEES
      Interest and fees on mortgage
          loans, church bonds, and
          interim construction loans                 $ 1,146,473        $ 1,055,591          $ 3,679,020        $ 3,631,965
      Interest on temporary investments                   37,332             47,896               78,460             78,454
                                                   --------------    ---------------      ---------------    ---------------
              Total interest income and fees           1,183,805          1,103,487            3,757,480          3,710,419
                                                   --------------    ---------------      ---------------    ---------------

DEBT EXPENSE
      Interest                                           403,694            282,809            1,155,187            778,845
      Amortization of commissions paid
          to brokers                                           -              2,620                1,183             10,449
                                                   --------------    ---------------      ---------------    ---------------
              Total debt expense                         403,694            285,429            1,156,370            789,294
                                                   --------------    ---------------      ---------------    ---------------
              Net interest income                        780,111            818,058            2,601,110          2,921,125

PROVISION FOR POSSIBLE
      CREDIT LOSSES                                       45,000             45,000              135,000            135,000
                                                   --------------    ---------------      ---------------    ---------------
              Net interest income less provision
                  for possible credit losses             735,111            773,058            2,466,110          2,786,125

OTHER INCOME                                                 879              2,136              185,813              6,928

OTHER OPERATING EXPENSES
      General and administrative                         160,378            176,271              460,533            496,745
      Board of Trust Managers' fees                       13,350             12,462               40,891             40,353
                                                   --------------    ---------------      ---------------    ---------------
              Total other operating expenses             173,728            188,733              501,424            537,098
              Income before provisions for
                  taxes                                  562,262            586,461            2,150,499          2,255,955

PROVISION FOR TAXES                                            -                  -                    -                  -
                                                   --------------    ---------------      ---------------    ---------------
NET INCOME                                             $ 562,262          $ 586,461          $ 2,150,499        $ 2,255,955
                                                   ==============    ===============      ===============    ===============
WEIGHTED AVERAGE NUMBER
      OF SHARES OUTSTANDING                            7,000,806          7,000,806            7,000,806          7,000,806
NET INCOME PER SHARE                                      $ 0.08             $ 0.08               $ 0.31             $ 0.32
                                                   ==============    ===============      ===============    ===============
DIVIDENDS PER SHARE                                       $ 0.31             $ 0.29               $ 0.45             $ 0.39
                                                   ==============    ===============      ===============    ===============`

These condensed financial statements should be read
only in  connection  with  the  accompanying  notes to  condensed  financial
statements.
-2-

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# CHURCH LOANS & INVESTMENTS TRUST

(A Real Estate Investment Trust)
Condensed Statements of Cash Flows (Unaudited)
Nine-Month periods ended December 31, 2000 and 1999

`Nine-month periods
                                                                                                 ended December 31,
                                                                                         ----------------------------------
                                                                                              2000              1999
                                                                                         ---------------   ----------------
CASH FLOWS FROM OPERATING ACTIVITIES
      Net income                                                                            $ 2,150,499        $ 2,255,955
      Adjustments to reconcile net income to net cash provided by operating activities:
          Depreciation                                                                           11,754             11,754
          Amortization of debt expense                                                            1,183             10,44
          Provision for possible credit losses                                                  135,000            135,000
          Amortization of loan discounts                                                        (26,180)           (64,683)
          Gain on sale of other real estate                                                    (180,662)                 -
          Changes in:
               Accrued interest receivable                                                     (159,032)          (260,805)
               Accrued interest payable                                                             284            (24,049)
               Other liabilities                                                                 83,630             10,479
          Other, net                                                                            (19,104)           (28,124)
                                                                                         ---------------   ----------------
                    Net cash provided by operating activities                                 1,997,372          2,045,976
                                                                                         ---------------   ----------------
CASH FLOWS FROM INVESTING ACTIVITIES
      Investment in mortgage and interim construction loans and church bonds                (23,536,101)       (20,085,274)
      Payments received on mortgage and interim construction loans and church bonds          18,026,758         14,171,000
      Advances of notes receivable                                                             (678,678)          (364,751)
      Payments received on notes receivable                                                     397,776            252,314
      Proceeds from sale of real estate acquired through foreclosure                          1,163,041                  -
      Improvements to real estate acquired through foreclosure                                        -            (44,762)
                                                                                         ---------------   ----------------
                   Net cash used by investing activities                                     (4,627,204)        (6,071,473)
                                                                                         ---------------   ----------------
CASH FLOWS FROM FINANCING ACTIVITIES
      Borrowings on notes payable                                                            26,561,655         23,800,771
      Principal payments on:
          Secured savings certificates                                                         (726,000)        (1,434,376)
          Notes payable                                                                     (22,490,054)       (17,572,582)
      Cash dividends paid                                                                      (980,113)          (700,081)
      Purchase of treasury shares                                                                     -                  -
                                                                                         ---------------   ----------------
                   Net cash provided by financing activities                                  2,365,488          4,093,732
                                                                                         ---------------   ----------------
                   Increase (decrease) in cash and cash equivalents                            (264,344)            68,235
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD                                                387,087            181,068
                                                                                         ---------------   ----------------
CASH AND CASH EQUIVALENTS AT END OF PERIOD                                                    $ 122,743          $ 249,303
                                                                                         ===============   ================

Supplemental Disclosure of Cash Flow Information
      Cash paid during the period for interest                                              $ 1,154,903          $ 802,894
                                                                                         ===============   ================

      Real estate acquired through foreclosure                                                      $ -          $ 611,292
                                                                                         ===============   ================


During  December 2000,  the Board of Trust  managers  declared cash dividends of
$2,170,250  ($.31 per share) payable in January 2001.  During December 1999, the
Board of Trust managers  declared cash dividends of $2,030,234  ($.29 per share)
payable in January 2000.`

These condensed financial statements should be read
only in  connection  with  the  accompanying  notes to  condensed  financial
statements.-3-

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# CHURCH LOANS & INVESTMENTS TRUST

(A Real Estate Investment Trust)
Notes to Condensed Financial Statements (Unaudited)

## NOTE 1 - GENERAL

See the Summary of Significant  Accounting Policies included in
the   Financial    Statements   in   the   Trust's   Annual   Report   on   Form
10-KSB405.

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
December 31, 2000 and 1999 were as follows:

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

              December 31, 2000                         10.68%                     8.50%               2.18%

              December 31, 1999                          9.91%                     7.53%               2.38%`

## 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 December 31,  2000, for the five  twelve-month  periods
subsequent to December 31, 2000, follow:

`Twelve-month period                    Mortgage loans, church bonds
                  ending December 31,                         and interim loans                Indebtedness
                 --------------------                    ----------------------------          ------------

                      2001                                    $    19,783,243                 $    18,934,793
                      2002                                          1,198,928                          -
                      2003                                          1,278,227                          -
                      2004                                          1,312,510                          -
                      2005                                          1,357,051                          -
                                                              ===============                ===============`

-4-

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# 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 $5,595,605 and
$2,195,329  at December  31, 2000 and 1999,  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  $456,000 and $184,000 for the
nine-month  periods  ended  December 31, 2000 and 1999,  respectively.  Interest
actually  recognized  in 2000 and 1999 was  approximately  $360,899 and $50,000,
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 condensed financial statements-5-

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# 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 and Nine-Month Periods Ended
December 31, 2000 as Compared to the  Three-Month  and Nine-Month  Periods Ended
December 31, 1999:

# Revenues

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.  Such revenues increased by $47,061 and $80,318 for the
nine-month and  three-month  periods ended December 31, 2000,  respectively,  as
compared to the corresponding  periods in 1999.  Included in the 2000 nine-month
period is the revenue  recognized from interest  payments  received on two large
loans for which the interest is  recognized on a cash basis,  which  amounted to
approximately  $292,000.  Included in the 1999 nine-month  period is the revenue
recognized  on a loan  which  was paid in full and 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  for the  nine-month  period  ended
December  31,  1999.  Additionally,  average  loan  balances and rate of returns
increased  during the 2000  periods.  Loans  outstanding  were  $42,472,436  and
$41,095,634  at December  31, 2000 and 1999,  respectively.  The average rate of
return of the mortgage loan and church bond  portfolio  increased  from 9.91% at
December 31, 1999 to 10.68% at December 31, 2000.

# Interest Expense

The  most  significant  expense item is interest  expense which
comprised  the  majority  of total  operating  expense for the  three-month  and
nine-month  periods ended  December 31, 2000 and 1999.  The increase of $376,342
and $120,885 in interest  expense during the nine-month and three-month  periods
ended December 31, 2000, respectively,  resulted from an increase in the average
total amount of indebtedness as compared to the same periods ended September 30,
1999 and an increase in the weighted  average  interest rate on all indebtedness
from 7.53% at December 31, 1999 to 8.50% at December 31, 2000.

# Other Income

Other  income was  $185,813  for the  nine-month  period  ended
December 31, 2000 as compared to $6,928 for the same period ended in 1999.  This
increase was  primarily due to the gain on sale of other real estate of $180,662
for the nine-month period ended December 31, 2000.

-6-

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# 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

-7-

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# 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

|By | /s/ B. R. McMorries
         ______________________________
                 B. R. McMorries, Chairman | Dated: February 14, 2001 | 
|-- | ------------------------------------------------------------------------------------------------------ | ------------------------ | 

|By | /s/ Kelly Archer
         ______________________________
                 Kelly Archer
                 Chief Financial Officer | Dated: February 14, 2001 | 
|-- | ------------------------------------------------------------------------------------------------------------------------------- | ------------------------ | 

8

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