U.S. SECURITIES AND EXCHANGE COMMISSION

                              Washington, DC 20549

                                   Form 10-QSB

/X/ QUARTERLY REPORT UNDER SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF
    1934

               For the quarterly period ending September 30, 2003

                                       Or

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

For the transition period from _________ to ____________

                          Commission File No. 333-93475

                    CORNERSTONE MINISTRIES INVESTMENTS, INC.
                    ----------------------------------------
        (Exact name of small business issuer as specified in its charter)

Georgia                                                 58-2232313
--------------------------------------------------------------------------------
(State or other jurisdiction                (IRS Employer Identification Number)
of incorporation or organization)

2450 Atlanta Highway, Suite 904, Cumming, GA                    30040
--------------------------------------------------------------------------------
(Address of principal executive office)                       (Zip Code)

Issuer's telephone number, including area code: (678)-455-1100
                                                --------------

--------------------------------------------------------------------------------
Former name, address and former fiscal year, if changed since last report.

Check  whether  the issuer  (1) filed all  reports  required  to be filed by the
Section 13 or 15(d) of the  Securities  Exchange  Act of 1934 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 past 90 days.

                  Yes_X_                   No___

As of September 30, 2003,  there were issued and  outstanding  531,529 shares of
the common stock of the issuer.

Transitional Small Business Disclosure Format (Check one): Yes [ ] No [X]

<PAGE>

                    Cornerstone Ministries Investments, Inc.

                                      Index

                                                                            Page

Form 10-QSB Title Page                                                       1

Index                                                                        2

PART I.  FINANCIAL INFORMATION

         Item 1. Financial Statements

                 Accountant's Review Report                                  F-1

                 Consolidated Balance Sheet as of September 30, 2003         F-2

                 Consolidated Statements of Income (Loss)
                 for the Nine Months ended September 30, 2003 and 2002       F-3

                 Consolidated Statements of Changes in Stockholders Equity
                 for the Nine Months ended September 30, 2003 and 2002       F-4

                 Consolidated Statements of Cash Flows for the Nine
                 Months ended September 30, 2003 and 2002                    F-5

                 Notes to Financial Statements                               F-6

         Item 2. Management's Discussion and Analysis of
                 Financial Condition and Results of Operation                3

         Item 3. Controls and Procedures                                     6

PART II. OTHER INFORMATION

         Item 1. Legal Proceedings                                           6

         Item 2. Changes in Securities and Use of Proceeds                   6

         Item 3. Defaults on Senior Securities                               6

         Item 4. Submission of Matters to a Vote of Security Holders         6

         Item 5. Other Information                                           6

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

Signatures                                                                   6

Certifications                                                           7 & 8

                                                                              2
<PAGE>

                           ROBERT N. CLEMONS, CPA, PA
                                   PO BOX 1670
                           DELAND, FLORIDA 32721-1670

To The Board of Directors
Cornerstone Ministries Investments, Inc.

We have  reviewed the  accompanying  balance  sheets of  Cornerstone  Ministries
Investments,  Inc. as of September 30, 2003 & 2002 and the related statements of
income & retained earnings,  and cash flows for the three months and nine months
then ended in accordance  with Statements on Standards for Accounting and Review
Services issued by the American Institute of Certified Public  Accountants.  All
information  included in these financial statements is the representation of the
management of Cornerstone Ministries Investments, Inc.

A review consists  principally of inquiries of Company  personnel and analytical
procedures  applied to financial data. It is substantially less in scope than an
audit in accordance with generally accepted auditing standards, the objective of
which is the expression of an opinion  regarding the financial  statements taken
as a whole. Accordingly, we do not express such an opinion.

Based on our review, we are not aware of any material  modifications that should
be made to the accompanying  financial statements and supplementary  information
in  order  for  them to be in  conformity  with  generally  accepted  accounting
principles.


/s/ Robert N. Clemons, CPA, PA

DeLand, Florida
November 5, 2003

                                                                             F-1
<PAGE>

CORNERSTONE MINISTRIES INVESTMENTS, INC. & SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
September 30, 2003 and 2002
                                                                     Restated
                                                      9/30/03         9/30/02
ASSETS
Cash in banks                                      $  5,566,854    $  8,341,494
Loans in process                                        881,996         465,114
Loans receivable-
  Real estate loans, net                             46,894,107      30,567,879
  Joint venture loans, net                           32,461,754      16,495,205
Bond holdings and accrued interest                    5,197,333       2,870,438
Fixed assets, net                                       887,381         302,187
Refundable income taxes                                 286,953         116,400
Deferred tax asset, net                                    --           227,660
Goodwill                                                450,997         450,997
Unamortized debt issue costs                          1,853,470         811,364
Real estate held for sale                               340,000         336,215
Other assets                                            118,746          96,933
                                                   ------------    ------------

TOTAL ASSETS                                       $ 94,939,591    $ 61,081,886
                                                   ============    ============

LIABILITIES
Investor certificates and accrued interest         $ 84,122,059    $ 57,854,451
Mortgage participations and accrued interest          6,512,197            --
Accounts and other payables                             235,762          80,648
Building mortgage                                       182,450         191,312
Capital lease obligation                                 14,915            --
Deferred taxes payable                                  292,545            --
                                                   ------------    ------------

TOTAL LIABILITIES                                    91,359,928      58,126,411
                                                   ------------    ------------

SHAREHOLDER'S EQUITY
Series A Convertible Preferred Stock, no par
  value; 235,000 shares authorized, no
  shares issued and outstanding                            --              --
Common Stock, $0.01 par value; 10 million shares
  authorized, 531,529 and 529,943 shares issued
  and outstanding                                         5,315           5,299
Paid in capital                                       3,297,435       3,287,149
Retained earnings (deficit)                             350,161        (336,973)
Treasury stock                                          (73,248)           --
                                                   ------------    ------------

TOTAL SHAREHOLDER'S EQUITY                            3,579,663       2,955,475
                                                   ------------    ------------

TOTAL LIABILITIES AND
 SHAREHOLDER'S EQUITY                              $ 94,939,591    $ 61,081,886
                                                   ============    ============

SEE ACCOMPANYING NOTES                                                       F-2
<PAGE>

CORNERSTONE MINISTRIES INVESTMENTS, INC. & SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
For the three and six months ended September 30, 2003 and 2002

<TABLE>
<CAPTION>
                                                           Restated                    Restated
                                           3 Mo. Ended   3 Mo. Ended   9 Mo. Ended   9 Mo. Ended
                                              9/30/03       9/30/02       9/30/03       9/30/02
<S>                                        <C>           <C>           <C>           <C>
REVENUES
Loan interest and fees                     $ 2,711,757   $ 1,425,316   $ 6,619,794   $ 3,533,707
Real estate gains and other income           1,306,658       499,200     1,480,891       787,128
                                           -----------   -----------   -----------   -----------

TOTAL REVENUES                               4,018,415     1,924,516     8,100,685     4,320,835
                                           -----------   -----------   -----------   -----------

EXPENSES
Investor interest expense                    1,930,656     1,035,063     5,285,031     2,820,427
Marketing expenses                             161,370       113,883       448,595       342,617
Salaries, payroll taxes, and benefits          225,504       165,172       696,719       511,941
Operating expenses                             287,151       203,421       743,537       474,065
                                           -----------   -----------   -----------   -----------

TOTAL EXPENSES                               2,604,681     1,517,539     7,173,882     4,149,050
                                           -----------   -----------   -----------   -----------

Income Before Provision For Income Taxes     1,413,734       406,977       926,803       171,785

Provision (Benefit) for Income Taxes           489,829       122,511       268,078       (52,190)
                                           -----------   -----------   -----------   -----------

NET INCOME                                 $   923,905   $   284,466   $   658,725   $   223,975
                                           ===========   ===========   ===========   ===========

Basic and Diluted Earnings
 per Common Share                          $      1.78   $      0.54   $      1.26   $      0.42
</TABLE>

SEE ACCOMPANYING NOTES                                                       F-3
<PAGE>

CORNERSTONE MINISTRIES INVESTMENTS, INC. & SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDER'S EQUITY
For the nine months ended September 30, 2003 and 2002
<TABLE>
<CAPTION>
                                                                                               RETAINED
                                              COMMON STOCK:           PAID-IN    PREFERRED     EARNINGS     TREASURY       TOTAL
                                           SHARES       AMOUNT        CAPITAL      STOCK       (DEFICIT)      STOCK        EQUITY

<S>                                        <C>        <C>           <C>          <C>          <C>           <C>          <C>
BALANCE, DEC. 31, 2001                     528,721    $    5,287    $3,279,491   $     --     $ (388,716)   $    --      $2,896,062
Net income                                                                                       223,975                    223,975
Common stock issued                          1,222            12         7,658                                                7,670
Dividend declared                                                                               (172,232)                  (172,232)
                                        ----------    ----------    ----------   ----------   ----------    ---------    ----------

BALANCE, SEPT. 30, 2002, RESTATED          529,943    $    5,299    $3,287,149   $     --     $ (336,973)   $    --      $2,955,475
                                        ==========    ==========    ==========   ==========   ==========    =========    ==========

BALANCE, DEC. 31, 2002                     530,944    $    5,309    $3,293,641   $     --     $ (139,479)   $    --      $3,159,471
Net income                                                                                       658,725                    658,725
Common stock issued                            585             6         3,794                                                3,800
Dividend declared                                                                               (169,085)                  (169,085)
Treasury shares acquired                                                                                      (73,248)      (73,248)
                                        ----------    ----------    ----------   ----------   ----------    ---------    ----------

BALANCE, SEPT. 30, 2003                    531,529    $    5,315    $3,297,435   $     --     $  350,161    $ (73,248)   $3,579,663
                                        ==========    ==========    ==========   ==========   ==========    =========    ==========
</TABLE>

SEE ACCOMPANYING NOTES                                                       F-4
<PAGE>

CORNERSTONE MINISTRIES INVESTMENTS, INC. & SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the nine months ended September 30, 2003 and 2002

<TABLE>
<CAPTION>
                                                                                   Restated
                                                                    9/30/03         9/30/02
<S>                                                              <C>             <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income                                                       $    658,725    $    223,975
Adjustments to reconcile net income to cash
 from operations-
Depreciation and amortization                                         378,938         229,402
Changes in-
  Loans in process                                                   (522,976)        (10,530)
  Accrued bond interest, net                                          (21,921)       (151,574)
  Accrued loan interest and deferred loan fees                       (928,472)       (509,917)
  Deferred taxes                                                      566,778          48,970
  Unamortized debt issue costs                                     (1,187,624)       (443,990)
  Refundable income taxes                                            (286,953)       (116,400)
  Investor and mortgage participation interest payable              1,687,786        (929,740)
  Accounts and other payables                                         (46,358)        (84,682)
  Other assets                                                        (80,558)        (36,246)
                                                                 ------------    ------------

NET CASH PROVIDED (USED) BY OPERATIONS                                217,365      (1,780,732)
                                                                 ------------    ------------

CASH FLOWS FROM INVESTING ACTIVITIES:
Real estate and joint venture loans made                          (26,284,926)    (19,423,498)
Real estate and joint venture loan principal payments received     12,612,235       3,299,377
Bonds purchased                                                    (2,500,000)           --
Bonds redeemed or sold                                                 58,750       2,601,250
Fixed assets purchased                                               (589,413)        (55,838)
Real estate costs capitalized                                            --            (4,702)
                                                                 ------------    ------------

NET CASH USED BY INVESTING ACTIVITIES                             (16,703,354)    (13,583,411)
                                                                 ------------    ------------

CASH FLOWS FROM FINANCING ACTIVITIES:
Investor certificates sold                                         18,163,253      23,339,403
Investor certificates redeemed                                     (3,449,495)     (2,198,945)
Mortgage participation agreements sold                              6,255,330            --
Building mortgage principal payments                                   (6,776)         (5,882)
capital lease principal payments                                       (2,795)           --
Common stock issued                                                     3,800           7,670
Dividends paid                                                       (337,725)       (344,066)
Treasury stock acquired                                               (73,248)           --
                                                                 ------------    ------------

NET CASH PROVIDED BY FINANCING ACTIVITIES                          20,552,344      20,798,180
                                                                 ------------    ------------

Net change in cash                                                  4,066,355       5,434,037
Cash at beginning of period                                         1,500,499       2,907,457
                                                                 ------------    ------------

CASH AT END OF PERIOD                                            $  5,566,854    $  8,341,494
                                                                 ============    ============

Supplemental Information-
  Interest paid during the period                                $  3,604,215    $  3,763,000
  Income taxes paid during the period                            $       --      $       --
Non-cash transactions-
  Fixed asset lease financing                                    $     17,710    $       --
  Investor certificates matured and re-issued                    $  3,793,364    $ 12,918,252
  Loan interest included in principal                            $  1,023,478    $    649,223
</TABLE>

SEE ACCOMPANYING NOTES                                                       F-5
<PAGE>

             CORNERSTONE MINISTRIES INVESTMENTS, INC. & SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The  accompanying  Consolidated  Financial  Statements  include the  accounts of
Cornerstone  Ministries  Investments,  Inc.,  Wellstone  Communities,  Inc.  and
Wellstone  Financial  Group,  LLC  (collectively  "The  Company").  The  Company
originates and purchases mortgage loans made to faith-based  organizations.  The
Company offers  specialized  programs for churches,  not-for-profit  sponsors of
senior  housing and  affordable  housing  programs.  The Company also invests in
similar real estate projects for the purpose of selling at a profit, or leasing.
Substantially all of the Company's loans and investments are in projects located
in the Southeastern  United States.  On February 12, 2003 the Board of Directors
approved  amending  the  Articles of  Incorporation  and changed the name of the
Corporation from "PIF/Cornerstone Ministries Investments,  Inc." to "Cornerstone
Ministries Investments, Inc."

Cash and cash equivalents include bank accounts and short term certificates with
original maturities of 90 days or less.

Loans receivable  include unpaid principal and accrued interest  balances net of
deferred  loan fees and unearned  discounts,  less an allowance for loan losses.
Interest income is recognized  monthly as it is earned,  in accordance with loan
terms. Interest income is recognized on the cash basis for loans with a recorded
impairment  loss (other than  restructured  loans) and the possibility of future
loss considered  remote.  If the possibility of future loss is not remote,  then
interest  income  is not  recognized  and  interest  payments  are  credited  to
outstanding loan principal.  Loan origination fees are deferred and amortized as
a yield  adjustment  over the lives of the  related  loans  using  the  interest
method. Amortization of deferred loan fees is discontinued when a loan is placed
on non-accrual status.

Senior  housing  mortgage  loans are  classified  as joint  venture loans if the
company participates in the residual profits from the sale or refinancing of the
collateralized  property and all of the following  exist at the inception of the
loan:

     o   The  borrower  does not have a  substantial  equity  investment  in the
         property.

     o   The Company does not have recourse to  substantial  tangible,  saleable
         assets of the  borrower  other than the  underlying  collateral  of the
         loan.

     o   The  facility  does not  have  lease  commitments  which  will  provide
         sufficient  cash flow to service  normal  principal  and interest  loan
         amortization.

The Company normally  provides all or substantially all of the funding (directly
or through loan  guarantees)  for the  acquisition and development of the senior
housing facilities which are owned by non-profit entities.

Loans in process are amounts  advanced or expended on behalf of borrowers  prior
to completion of the loan documentation.  Generally,  interest is not accrued on
these  amounts  until  the  loan  documentation  is  complete  and the  borrower
acknowledges  the  debt  and  associated  interest.  Substantially  all of these
expenditures are converted to loans within one year or less.

Unamortized  debt issue costs include the costs and commissions  associated with
issuing   investor   certificates.   These  costs  are  being   amortized  on  a
straight-line basis over the term of the debt, principally 5 years.

The allowance for loan losses is  maintained at a level which,  in  management's
judgment,  is adequate to absorb credit losses  inherent in the loan  portfolio.
The  amount  of  the  allowance  is  based  on  management's  evaluation  of the
collectibility  of the loan  portfolio,  including the nature of the  portfolio,
credit concentrations,  trends in historical loss experience,  specific impaired
loans,  restructured loans with interest rate reductions,  economic  conditions,
and other risks  inherent in the  portfolio.  Allowances  for specific  impaired
loans are generally  determined based on collateral  values or the present value
of estimated cash flows.  A loan is considered  impaired if more than six months
interest  is  past  due.  Although  management  uses  available  information  to
recognize  losses on loans,  because  of  uncertainties  associated  with  local
economic conditions, collateral values, and future cash flows on impaired loans,
it is reasonably  possible  that a material  change could occur in the allowance
for loan losses in the near term. However, the amount of the change that is

                                                                             F-6
<PAGE>

reasonably  possible  cannot be  estimated.  The  allowance  is  increased  by a
provision  for  loan  losses,  which  is  charged  to  expense  and  reduced  by
charge-offs,  net of recoveries.  Changes in the allowance  relating to impaired
loans are charged or credited to the provision for loan losses.

Bond holdings consist of tax-free local government  securities and church bonds.
The Company accounts for these investments  using SFAS No. 115,  "Accounting for
Certain Investments in Debt and Equity Securities",  and classifies the bonds as
"available for sale" securities. The bonds are recorded at cost and adjusted for
unrealized  holding  gains and losses.  Temporary  unrealized  holding gains and
losses  are  reported,  net  of  deferred  taxes,  as a  separate  component  of
shareholder's equity until realized.  If an unrealized holding loss is judged to
be other than temporary,  the cost basis of the security is written down to fair
value and included in earnings.

Property  and  equipment  are  valued at cost when  purchased.  Depreciation  is
provided on the  straight-line  method over the  estimated  useful  lives of the
assets,  which are generally  three to five years for furnishings and equipment,
and 40 years for the Company's owned offices.

Interest  on  Investor  Certificates  is  accrued  from  the  date of  issuance.
Certificate  holders  choose,  at the time of purchase,  to have  interest  paid
semi-annually or upon redemption.  Investors  holding five year  certificates in
multiples of $10,000 may receive interest monthly. Unpaid interest is compounded
semi-annually. Interest on Mortgage Participation Agreements is accrued from the
date of issuance and is paid monthly.

Income taxes are provided  for the tax effects of  transactions  reported in the
financial  statements  and consist of taxes  currently due plus  deferred  taxes
related  primarily  to the  difference  between  the methods of  accounting  for
depreciation,  amortization,  start-up costs and installment sales for financial
and  tax-reporting  purposes.  The deferred taxes represent the estimated future
tax  consequences  of  those  differences,  which  will  be  either  taxable  or
deductible when the assets and liabilities are recovered or settled. Accelerated
depreciation  methods and shorter  asset lives are used for tax  reporting,  and
straight-line  depreciation  is used  for  financial  statement  reporting.  The
Company  calculates  deferred  taxes under the  provisions of SFAS No. 109 which
provides for deferred  tax assets and  liabilities  to be carried on the balance
sheet at current tax rates.

Basic earnings  (loss) per common share are calculated by dividing net income or
net loss by the weighted average number of common shares  outstanding during the
year.  Diluted  earnings  (loss) per common  share are  calculated  by adjusting
weighted  average  outstanding  shares,  assuming  conversion of all potentially
dilutive shares of Series A Convertible Preferred Stock.

The   Financial   Accounting   Standards   Board  has  issued   several   recent
pronouncements,  none of which are expected to  materially  affect the financial
statements of the Company:

SFAS No. 145,  Recision of FASB Statements No. 4, 44, and 64,  Amendment of FASB
Statement No. 13 and Technical Corrections, effective for fiscal years beginning
after May 15,  2002.  The  Statement  eliminates  an  inconsistency  between the
required accounting for sale-leaseback  transactions and the required accounting
for certain lease  modifications  that have economic effects that are similar to
sale-leaseback transactions.

SFAS No.146,  Accounting for Costs Associated with Exit or Disposal  Activities,
effective for  transactions  initiated  after December 31, 2002.  This Statement
improves financial reporting by requiring that a liability for a cost associated
with an exit or disposal  activity be recognized and measured  initially at fair
value only when the liability is incurred. The accounting for similar events and
circumstances  will  be  the  same,  thereby  improving  the  comparability  and
representational faithfulness of reported financial information.

SFAS No. 147,  Acquisition  of Certain  Financial  Institutions,  effective  for
transactions  after  October 1, 2002.  The  Statement  removed  acquisitions  of
financial  institutions  from the scope of  Statement  No.  72,  "Accounting  of
Certain  Acquisitions  of Banking or Thrift  Institutions,"  which permitted the
recognition  and  subsequent  amortization  of any  excess of the fair  value of
liabilities assumed over the fair value of tangible and identifiable  intangible
assets acquired as an unidentifiable intangible asset. For a transaction that is
a  business   combination,   the  Statement  requires  that  the  unidentifiable
intangible  asset  acquired be  recognized  as goodwill and  accounted for under
Statement No. 142. The Statement also amended Statement No. 144, "Accounting for
the Impairment or Disposal of Long-Lived Assets," to

                                                                             F-7
<PAGE>

include  in its  scope  long-term  borrower-relationship  intangible  assets  of
financial institutions such as depositor-and-  borrower-relationship  intangible
assets and credit cardholder intangible assets.  Consequently,  those intangible
assets are subject to the same  undiscounted cash flow  recoverability  test and
impairment loss  recognition  and measurement  provisions that Statement No. 144
requires of other long-lived assets that are held and used.

SFAS No. 148,  Accounting  for  Stock-Based  Compensation,  effective for fiscal
years ending after  December 15, 2002. The Statement  amends  Statement No. 123,
"Accounting for Stock-Based  Compensation,"  to provide  alternative  methods of
transition for an entity that voluntarily changes to the fair value based method
of  accounting  for  stock-based  employee  compensation.  It  also  amends  the
disclosure  provisions of SFAS No. 123 to require prominent disclosure about the
effects on reported net income of an entity's  accounting  policy decisions with
respect to  stock-based  employee  compensation.  The Company has no stock-based
compensation.

SFAS  149,  Amendment  of  Statement  on  Derivative   Instruments  and  Hedging
Activities,  effective  for  contracts  entered into after June 30, 2003 and for
hedging  relationships  designated after June 30, 2003. This statement  improves
financial reporting by requiring that contracts with comparable  characteristics
be accounted similarly.  SFAS 150, Accounting for Certain Financial  Instruments
with Characteristics of both Liability and Equity establishes  standards for how
an issuer classifies and measures certain financial instruments, including those
that embody  obligations to issue equity shares.  The statement is effective for
financial instruments entered into or modified after May 31, 2003.

FASB  Interpretation No. 45, Guarantor's  Accounting and Disclosure  Requirement
for  Guarantees,  Including  Indirect  Guarantees  of  Indebtedness  of  Others,
recognition  and  measurement is effective for  transactions  after December 31,
2002 and  disclosure  requirements  are  effective for fiscal years ending after
December 15,  2002.  The  Interpretation  improves  disclosures  to be made by a
guarantor about its obligations under certain  guarantees that it has issued. It
also  clarifies  that a guarantor is required to recognize,  at the inception of
the guarantee,  a liability for the fair value of the  obligation  undertaken in
issuing the guarantee.

FASB  Interpretation  No. 46,  Consolidation of Variable Interest  Entities,  is
effective  in all  financial  statements  issued  after  January 31,  2003.  The
interpretation  addresses  conditions  when  consolidation  may be required  for
variable  interest  entities  where the equity  investment is not  sufficient to
finance its activities without additional  financial support from other parties,
or the equity investors lack one or more of a controlling financial interest

Management   uses  estimates  and   assumptions  in  preparing  these  financial
statements in accordance with generally accepted  accounting  principles.  Those
estimates and assumptions affect the reported amounts of assets and liabilities,
the disclosure of contingent  assets and liabilities,  and the reported revenues
and expenses. Actual results could vary from the estimates that are used.

Certain report classifications used in prior year financial statements have been
reclassified to conform to current year presentation.

NOTE 2 - ACCOUNTING ENTITY CHANGE

The accompanying  Consolidated  Financial  Statements for September 30, 2002 and
the nine month period then ended include the accounts of Cornerstone  Ministries
Investments,  Inc. and Wellstone  Financial Group, LLC ("WFG").  The comparative
statements  for  September  30, 2002 and the three and nine month  periods  then
ended have been restated to include WFG as a wholly owned subsidiary rather than
as an equity investment in an  unconsolidated  LLC. The effect of this change in
reporting  entity is to reduce net income by  $101,154  (net of taxes) or $(.19)
per share for the nine months ended September 30, 2002.

NOTE 3 - FIXED ASSETS

As of September 30, fixed assets are composed of:           2003        2002
                                                            ----        ----
Office Condominiums                                      $ 792,659    $ 252,922
Office Computers, Furnishings, Software & Equipment        118,141       44,013
Vehicles                                                    37,730       37,730
Capital Lease - phone system                                17,710          -0-
Less: Accumulated Depreciation                             (78,859)     (32,478)
                                                         ---------    ---------
Fixed Assets, net                                        $ 887,381    $ 302,187

                                                                             F-8
<PAGE>

Depreciation expense - third quarter                     $  15,704    $  11,844
                       year-to-date                      $  40,079    $  20,306

NOTE 4 - COMMITMENTS AND RELATED PARTY TRANSACTIONS

Leases:

During 2003, the Company  entered into a capital lease for a new phone system at
the Company's headquarters. The lease was recorded at the asset's fair value and
is being  amortized over three years using the  straight-line  method.  Interest
expense is calculated based on the implied interest rate in the lease. The lease
payment,  including  principal  and  interest,  is $628 per month.  Amortization
expense was $1,476 and $0 for the three  months,  and $3,444 and $0 for the nine
months ended  September 30, 2003 and 2002,  respectively.  Interest  expense was
$652 and $0 for the three  months,  and $1,598 and $0 for the nine months  ended
September 30, 2003 and 2002, respectively.

Future minimum lease payments as of September 30, 2003:

October, 2003 - September, 2004                                 $  7,531
October, 2004 - September, 2005                                    7,531
October, 2005 - September, 2006                                    3,139
                                                                 -------
                                                                  18,201
Less: interest portion                                            (3,286)
                                                                 -------
Capital lease obligation                                         $14,915

Related Party Transactions:

Effective July 1, 2003, the Company entered into a Personnel  Services Agreement
with  Cornerstone  Capital  Advisors,  Inc.  ("CCA") to provide loan management,
administration and accounting; investor relations; marketing;  administration of
computers  and  management   information  systems;   photo  copying  and  record
maintenance;  and, record keeping,  bookkeeping and accounting after June, 2003.
The Company is  obligated to pay  directly or  reimburse  actual  expenses to be
billed  bi-weekly by CCA. The base for good  performance  is expected to be that
all bond  interest  and other  obligations  are  current  and the  common  stock
shareholders have received  dividends equal to an annual rate of at least 10% on
the  price  paid  in a  public  offering  for  all  the  time  the  shares  were
outstanding.   The  factors  above  that  base,  and  the  amount  of  incentive
compensation will relate to the director's judgment on the extent to which CCA's
services will have  contributed  to the results.  The maximum that the incentive
compensation can be is 10% of the actual expenses billed to CCA for the prior 12
months.  The agreement is for renewable  one-year terms and it may be terminated
by either party upon 60 days' written notice. It is anticipated that after 2003,
the Company will not have any employees of its own and accordingly,  CCA will be
subject  to the  supervision  of the Board of  Directors.  Two of the  Company's
directors  serve on CCA's Board of  Directors.  For the three month period ended
September  30,  2003,  the Company  paid cash of  $157,114 to CCA for  personnel
services, which is included in salaries,  payroll taxes and benefits expenses on
the  accompanying   Consolidated   Statements  of  Income  &  Retained  Earnings
(Deficit). No amounts are due to CCA by the Company as of September 30, 2003.

During 2003,  the Company  entered  into a service  agreement  with  Cornerstone
Direct  Public  Offerings,  LLC  ("CDPO")  to provide  legal and  administrative
services for the Company's filing of two SB-2  Registration  Statements with the
Securities  and  Exchange  Commission  (see Note 11 for  further  details on the
filings).  Two of the  Company's  directors  serve on the Board of  Directors of
CDPO's  majority  owner,  Cornerstone  Group  Holdings,  LLC. The service fee is
$75,000 per filing payable in installments during the filing process.  The final
10% is due when the  registration  is  completed.  For the three and nine  month
period ended September 30, 2003, the company paid cash of $135,000 to CDPO which
is included in  unamortized  debt issue costs in the  accompanying  Consolidated
Balance  Sheets.  An  additional  $15,000  will  be  payable  to CDPO  when  the
registration statements are completed.

                                                                             F-9
<PAGE>

NOTE 5 - LOANS RECEIVABLE

At September 30, 2003 and 2002,  the Company had Real Estate Loans on church and
other not-for-profit properties as follows:

                                                      2003             2002
                                                      ----             ----
Family housing development loans                  $ 24,033,592     $ 10,235,347
Church mortgage loans
                                                    13,977,012       14,587,361
Senior housing mortgage loans                        9,093,501        5,127,529
                                                  ------------     ------------
Total principal outstanding                         47,104,105       29,950,237
Accrued interest                                       247,600          902,672
Unearned loan fees                                    (457,598)        (285,030)
Allowance for loan losses                                    0                0
                                                  ------------     ------------
Total real estate loans, net                      $ 46,894,107     $ 30,567,879

The loans mature as follows: 2003 - $19,302,347;  2004 - $26,600,317; 2005 - $0;
2006 - $0; 2007 - $0; 2008 &  thereafter  -  $1,201,441.  Loan  maturity  may be
accelerated  in accordance  with loan terms,  generally  upon certain  events of
default such as non-payment of scheduled payments or bankruptcy.

As of September 30, 2003 and 2002,  the Company had a significant  concentration
of credit risk in the following states:
                                                 2003                  2002
                                                 ----                  ----
Georgia                                      $22,989,858            $14,455,844
Florida                                      $ 9,325,140            $ 4,699,779

As of September 30, 2003, two loans,  with a total  carrying  amount of $627,875
were  considered  impaired  due to non payment of  interest.  No  allowance  for
impairment  loss has been recorded  because the carrying amount of the loans are
less than or equal to the  present  value of  expected  future cash flows or the
fair value of the  related  collateral  on the loans.  No loans were  considered
impaired as of September 30, 2002. The weighted  average  investment in impaired
loans for the nine month periods ended  September 30, 2003 and 2002 was $632,274
and $0,  respectively.  Interest income  recognized on impaired loans was $5,539
and $0 for the three  months,  and  $15,203  and $0 for the nine  months  ending
September 30, 2003 and 2002, respectively.

Certain  of the  Company's  mortgage  loans on  senior  housing  facilities  are
classified as joint venture loans, as follows:

Location                                              2003             2002
--------                                              ----             ----
McKinney, TX                                      $  3,033,191     $  2,312,982
Largo, FL                                                    0        2,795,454
St. Petersburg, FL                                   3,609,620        3,492,469
Lewisville, TX                                      10,091,529        8,473,618
Garland, TX                                          5,471,827                0
Chattanooga, TN                                      3,448,256                0
San Antonio, TX                                      8,314,718                0
                                                  ------------     ------------
Total principal outstanding                         33,969,141       17,074,523
Accrued interest                                       254,483           63,182
Unearned loan fees                                  (1,761,870)        (642,500)
Allowance for loan losses                                    0                0
                                                  ------------     ------------
Total joint venture loans, net                    $ 32,461,754     $ 16,495,205

The  loans  mature as  follows:  2003 -  $8,858,447;  2004 -  $25,110,694.  Loan
maturity  may be  accelerated  in  accordance  with loan terms,  generally  upon
certain  events  of  default  such  as  non-payment  of  scheduled  payments  or
bankruptcy.

All loans  accrue  interest at 10% per year with  `interest  only'  payments due
monthly.  The original loan terms are for one year with two, one year extensions
at the Company's  option.  The Company receives a 10% loan origination fee which
is

                                                                            F-10
<PAGE>

included in the loan  principal  balance.  The Company  receives  30% of the net
profit from the sale or refinancing of the collateralized properties.

In September,  2003, the Company recognized a $1,220,277 mortgage  participation
gain  from the sale of a senior  housing  facility  in  Largo,  FL in which  the
Company held a joint venture mortgage loan.

No joint  venture  loans were  considered  impaired as of September 30, 2003 and
2002.

In 2003, the Company began selling Mortgage Participation ("MP") Agreements. The
agreements  are  collateralized  by specific  senior housing joint venture loans
owned by the  Company  and entitle  the  investor  to a  proportionate  share of
interest earned on the collateral. Refer to Note 12 for additional details.

Summarized  financial  information  for loans which are greater  than 10% of the
Company's total assets:

Lewisville, TX senior housing facility-

Balance sheet (as of                       Income statement (for the nine months
September 30, 2003):                       ended September 30, 2003):

  Current assets           $    62,785          Total revenues   $2,138,632
  Fixed and other assets   $ 9,751,514          Net loss         $ (300,056)
  Current liabilities      $   176,389
  Non-current liabilities  $10,091,529

NOTE 6 -GOODWILL

The Company uses SFAS 142,  "Goodwill  and Other  Intangible  Assets".  Goodwill
associated with the Company's acquisition of Presbyterian  Investor's Fund, Inc.
("PIF") is  carried  at  $450,997  and is not  subject to further  amortization.
Goodwill  is tested  for  impairment  at the end of each  calendar  year using a
present value of expected future cash flows analysis to determine the fair value
of  Goodwill.  As of December  31,  2002,  Goodwill's  fair value  exceeded  its
carrying cost; therefore,  no provision for impairment loss has been recorded as
of September 30, 2003 and 2002.  No additional  goodwill was acquired or sold in
2003 and 2002.

NOTE 7 - UNAMORTIZED DEBT ISSUE COSTS

Unamortized debt issue costs consist of costs incurred to register the Company's
debt securities and commissions  paid or accrued on the sale of debt securities.
The costs are amortized on a straight-line  basis over the period the securities
are outstanding, generally five years.

At September 30, Unamortized debt issue costs consist of:     2003        2002
                                                              ----        ----
Costs incurred to register the Company's debt securities  $  545,171  $ 427,697
Commissions paid on the sale of debt securities            2,188,522    788,936
Less: Accumulated Amortization, generally over 5 years      (880,223)  (405,269)
                                                          ----------  ---------
                                                          $1,853,470  $ 811,364

Amortization expense was $135,535 and $65,803 for the three months, and $338,859
and  $209,096  for  the  nine  months  ended   September   30,  2003  and  2002,
respectively,  and  is  included  in  marketing  expenses  in  the  accompanying
Consolidated  Statements of Income.  Estimated amortization expense for the next
five years:

Oct. 1, 2003 through Sept. 30, 2004 - $581,972
Oct. 1, 2004 through Sept. 30, 2005 - $444,213
Oct. 1, 2005 through Sept. 30, 2006 - $384,911
Oct. 1, 2006 through Sept. 30, 2007 - $334,267
Oct. 1, 2007 through Sept. 30, 2008 - $108,107

                                                                            F-11
<PAGE>

NOTE 8 - BOND HOLDINGS

<TABLE>
<CAPTION>
Bond holdings at September 30:                               2003         2002
                                                             ----         ----
<S>                                                       <C>          <C>
St. Lucie Co., FL Subordinated Revenue Bonds
              Maturity  7/1/2036                          $ 2,325,000  $ 2,325,000
              Maturity 10/1/2036                            2,700,000    2,700,000
Undivided 50% interest sold to investor                    (2,512,500)  (2,512,500)
                                                          ----------   -----------
Net investment in St. Lucie Co., FL Bonds                   2,512,500    2,512,500
Largo, FL Subordinated Revenue Bonds - matures 10/1/2033    2,500,000            0
Local Church Bonds, maturing 2003                                   0       58,750
                                                           ----------  -----------
Cost basis of bond holdings                               $ 5,012,500  $ 2,571,250
Unrealized holding gains (losses)                                   0            0
                                                          ----------   ----------
Book value and fair value of bond holdings                $ 5,012,500  $ 2,571,250
Accrued Interest Receivable                                   184,833      299,188

                                                          -----------  -----------
                           Totals                         $ 5,197,333  $ 2,870,438
</TABLE>

The bonds are not traded on an exchange; however, management estimates, based on
discounted expected cash flows, that the fair value of the individual securities
approximated  their  original  cost.  Accordingly,  no unrealized  holding gains
(losses) have been recorded.

Proceeds from the sale or maturity of bonds were $58,750 and  $2,601,250 for the
nine months ending September 30, 2003 and 2002, respectively.  No realized gains
or losses  were  recognized  in 2003 and 2002.  The  Company  uses the  specific
identification method to determine realized gains and losses.

In  2002,  the  Company  transferred  all of its bond  holdings,  with a cost of
$5,110,500,  from "held to  maturity" to  "available  for sale"  securities.  No
realized  or  unrealized  holding  gains or  losses  were  recognized  as,  when
transferred, the cost of the bonds approximated their fair value. An opportunity
to utilize a major  investor's  funds  resulted in the sale of an undivided  50%
interest in the St. Lucie  County,  Florida  bonds for  $2,512,500.  The Company
reinvested  the funds from the sale in a joint  venture loan,  which  management
believes will provide greater long-term returns than the bonds.

Tax-free  interest  income was $60,334 and $116,125 for the three months  ended,
and $175,372 and $349,179 for the nine months ended September 30, 2003 and 2002,
respectively.

NOTE 9 - INCOME TAXES

The net  deferred  tax  (liability)  asset  in the  accompanying  balance  sheet
includes the following components:

                                                           2003          2002
                                                           ----         -----
Net deferred tax assets                                 $  69,219     $ 358,417
Net deferred tax liabilities                             (361,764)     (130,757)
Valuation allowance                                             0             0
                                                        ---------     ---------
Net deferred tax (liability) asset                      $(292,545)    $ 227,660

The deferred tax  liabilities  result from the use of  accelerated  depreciation
methods for property and equipment and from sales using the  installment  method
for tax  accounting.  The deferred tax asset  results from tax versus  financial
reporting  differences in the amortization of debt issue and start-up costs. The
Company  estimates  that future taxable income will be sufficient to realize the
net deferred tax asset; therefore, no valuation allowance was provided for as of
September30,  2003  or  2002.  During  2003,  the  Company's  request  with  the
Department  of the  Treasury  to change its  accounting  method for loan fees to
approximate  its book  treatment  under SFAS Nos.  65 and 91was  approved.  As a
result of this change,  the Company  amended its 2000 and 2001 federal and state
income  tax  returns.  The  $286,953  in  refunds  requested  is  classified  as
refundable  income taxes in the  accompanying  Consolidated  Balance Sheets.  In
addition, the Company has a federal net operating loss carry forward of $481,154
and a Georgia net operating  loss carry forward of $82,025.  These net operating
losses are generally  available to offset future taxable income through December
31, 2017.

                                                                            F-12
<PAGE>

Components of income tax expense (benefit) for the period ended September 30:

                            Current Quarter             Year-to-Date
                           2003          2002         2003        2002
                           ----          ----         ----        ----
Current:  Federal       $($310,296)  $($102,811)   $(274,206)   $(102,811)
            State          (30,863)       1,651      (24,494)       1,651
Deferred: Federal          738,428      205,467      513,850       44,122
            State           92,560       18,204       52,928        4,848
                         ---------    ---------    ---------    ---------
                         $ 489,829    $ 122,511    $ 268,078    $ (52,190)

Reconciliation  of the Company's income tax expense  (benefit) rate to statutory
federal rates:

                                                    2003          2002
                                                    ----          ----
Statutory federal rate                             35.0%          35.0%
Effect of graduated federal tax rates              (1.0%)         (1.0%)
State taxes, net of federal benefit                 3.7%           3.7%
Effect of non-taxable bond interest income         (6.4%)        (68.5%)
Other, net                                         (2.4%            .5%
                                                   -----         ------
Effective tax expense (benefit) rate               28.9%         (30.3%)

The effect of non-taxable  bond interest  income  decreased due to a decrease in
non-taxable  interest  income  (see  Note 8) and an  increase  in the  Company's
pre-tax income.

NOTE 10 - CASH CONCENTRATION

Financial  instruments that potentially subject the Company to concentrations of
credit  risk  consist  principally  of cash  and  cash  equivalent  accounts  in
financial institutions. At September 30, 2003, the Company had cash in excess of
insured limits totaling $5,110,747.

NOTE 11-INVESTOR CERTIFICATES

The Company has three types of investor certificates outstanding:

Access  certificates have no stated maturity and are due on demand.  The minimum
investment  amount is $100.  The  interest  rate is  determined  by the board of
directors  on a  quarterly  basis.  The  directors  may change the rate  between
quarters if market conditions  warrant such a change.  The current interest rate
is 5%.

Graduated  certificates  can be  redeemed  yearly  and have a five year  maximum
maturity.  The minimum investment amount is $500. The interest rate is graduated
based on the length of time that the certificate remains outstanding. Currently,
the rate  starts at 7% and is  increased  .5% for each year the  certificate  is
outstanding with a 9% maximum rate.

Five year certificates have a five year term and a $500 minimum investment.  The
interest rate is 9%.

The  certificates  are not  collateralized  and no  sinking  fund for paying the
certificates  at  maturity  is  required.  All of  the  certificates  have  been
registered with the Securities and Exchange  Commission under the Securities Act
of 1933. Listed below are the certificates  outstanding as of September 30, 2003
by interest rate and date of maturity:

5.0%            $ 2,539,071            2003 and on demand      $ 4,376,508
7.0%              4,422,368            2004                      5,671,876
7.5%              3,196,519            2005                      4,862,921
8.0%                218,379            2006                     10,815,667
9.0%             69,337,761            2007/Beyond              53,987,126
                                                               -----------
                                       Total principal         $79,714,098

As of September 30, 2003 and 2002,  accrued  interest payable was $4,407,961 and
$2,109,038, respectively.

On February 21, 2003  Wellstone  Communities,  Inc., a wholly owned  subsidiary,
filed a Form SB-2  Registration  Statement under the Securities Act of 1933 with
the Securities and Exchange Commission to sell up to $50,000,000 of its

                                                                            F-13
<PAGE>

Series A Preferred Stock. Net proceeds from the offering are expected to be used
to make and purchase  loans secured by  properties,  start or acquire a bank and
add to working capital.

On April 29, 2003 the Company filed a Form SB-2 Registration Statement under the
Securities Act of 1933 with the Securities and Exchange Commission to sell up to
$40,000,000 of its  Certificates of Indebtedness  along with  $11,375,000 of its
Common Stock.

NOTE 12-MORTGAGE PARTICIPATION AGREEMENTS

In 2003, the Company began selling  Mortgage  Participation  ("MP")  Agreements.
These MP Agreements have not been  registered and therefore,  are only available
to accredited  investors with a $100,000 minimum investment.  The agreements are
collateralized  by specific  senior  housing  joint  venture  loans owned by the
Company and entitle the investor to a proportionate share of the interest earned
on the  collateral.  Interest  is paid  monthly  to the MP  investors  after the
Company  receives  interest  payments on the related  collateralized  loans. The
agreements have no maturity date.  Principal  payments are made when the Company
receives principal payments on the collateralized loans. Losses that the Company
may incur on the collateralized  loans are shared pro-rata with the MP Agreement
holders.  The Company has the right,  but not the  obligation,  to redeem the MP
agreements at any time.  Interest  expense related to MP Agreements was $134,688
for the three months ended and $161,748 for the nine months ended  September 30,
2003. The loans which  collateralize  MP Agreements earn 10% annual interest and
'interest  only' payments are due monthly.  MP Agreement  principal and interest
outstanding and related collateral as of September 30, 2003:

<TABLE>
<CAPTION>
Collateral Description                                             MP Amount Outstanding
-----------------------                                            ---------------------
<S>                                                                        <C>
Loan to Senior Housing Services; senior housing facility,
  Lewisville, TX; matures 10/1/04 with a 1 year extension
  at the Company's option                                                  $3,690,000
Loan to Senior Housing Services; senior housing facility,
  Garland, TX; matures 12/1/03 with two, 1 year extensions
  at the Company's option                                                   1,990,500
Loan to Senior Housing Alternatives; senior housing facility,
  Chattanooga, TN; matures 6/30/04 with two, 1 year extensions
  at the Company's option                                                     783,617
                                                                           ----------
Total principal                                                             6,464,117
Accrued interest payable                                                       48,080
                                                                           ----------
                                                                           $6,512,197
</TABLE>

NOTE 13-LOAN GUARANTEES

At  September  30,  2003 the  Company was  guarantor  for a  potential  total of
$31,689,000 of loans secured by retirement  facilities  owned by  not-for-profit
entities.  Certain joint  venture and real estate  acquisition  and  development
loans in which the borrower  chooses to secure  outside  financing may require a
Company  guarantee as a condition of the  extension of the loan by the financial
institution.  The  guarantee  is solely  limited to amounts  drawn under  credit
facilities  and only  covers  outstanding  principal  and accrued  interest  and
terminates upon maturity and principal repayment.  At September 30, 2003, actual
amounts drawn and therefore guaranteed to a commercial bank totaled $26,859,176.
The guaranteed loans will mature between May 31 and November 18, 2004. Only upon
an uncured  payment default and upon demand by the financial  institution  would
the  Company  be  required  to  perform  under its  guarantee  obligations.  The
Company's recourse would be limited to repossession of the underlying collateral
and  subsequent  resale of the  facilities.  As of September 30, 2003, all loans
which had a guarantee were current and accordingly no loan guarantee  obligation
has been recognized in the financial statements.

NOTE 14 - PROFIT SHARING PLAN

During 2001,  the Company  established a Profit  Sharing Plan for its employees.
The Plan allows for entry into the plan after one year of service, and immediate
vesting  of  contributed  amounts.  All  contributions  are  to be  made  at the
discretion of the Company after approval by the board of directors. For the nine
months ended September 30, 2003 the Company has not elected to contribute.

                                                                            F-14
<PAGE>

NOTE 15 - BUILDING MORTGAGE

In  connection  with the  acquisition  of office space,  the Company  obtained a
mortgage  and pledged  the real  estate as  collateral.  The  mortgage  requires
monthly payments of principle and interest  totaling $2,068 including  principal
reductions  and interest at 8.5%. The loan matures March 1, 2006 at which time a
balloon  payment of $158,637 will be required.  Estimated  principle  reductions
are- 2003- $1,498; 2004- $9,791; 2005- $10,658; 2006- $160,503.

NOTE 16 - SERIES A CONVERTIBLE PREFERRED STOCK

In 2001, the Company  amended its Articles of  Incorporation  to provide for the
issuance of up to 235,000 shares of Series A Convertible  Preferred  Stock.  The
shares do not accrue  dividends  unless such dividends are declared by the Board
of Directors.  The shares entitle the preferred shareholder to have one vote per
share,  presently equal to the voting rights of Common shareholders.  Each share
is  convertible,  after 3  years,  into  shares  of  Common  Stock  based  on an
adjustable formula.

During 2001, as part of the Company's  formation and initial  capitalization  of
Wellstone  Financial  Group,  LLC ("WFG"),  shares with a value of $500,000 were
issued to WFG in  return  for a 100%  ownership  interest  in WFG.  Since WFG is
included  in these  consolidated  financial  statements,  the  shares  have been
eliminated in  consolidation.  If the shares were converted at the balance sheet
date  herein,  an  additional  76,923  shares of Common  Stock  could be issued,
however those shares would be eliminated in consolidation.

Subsequent to September 30, 2003, the Company's  Board of Directors  approved an
agreement to redeem all of the outstanding Series A Convertible  Preferred Stock
from WFG in exchange for the Company's ownership interest in WFG. The fair value
of the  Preferred  Stock and the  Company's  ownership  interest in WFG are both
estimated at $500,000;  therefore, no cash will be exchanged.  After the plan is
consummated,  WFG will no  longer  be  included  in the  Company's  consolidated
financial  statements.  This  transaction will not have a material affect on the
Company's financial position.

NOTE 17 - EARNINGS PER SHARE

<TABLE>
<CAPTION>
Basic earnings per share have been calculated as follows:         Current Quarter         Year-to-Date
                                                                  ---------------         ------------
<S>                      <C>                                         <C>                   <C>
2002                     Net Income                                  $284,466               $223,975
----                     Average Common Shares Outstanding            529,943                529,499
                         Earnings per Common Share                      $0.54                  $0.42
2003                     Net Income                                  $923,905               $658,725
----                     Average Common Shares Outstanding            520,260                522,240
                         Earnings per Common Share                      $1.78                  $1.26
</TABLE>

Diluted  earnings  per share are the same as basic  earnings  per share  because
there are no shares of Series A Convertible  Preferred Stock  outstanding  after
elimination of the shares owned by Wellstone  Financial Group, LLC (a 100% owned
subsidiary) in these consolidated financial statements.  Other than the Series A
Convertible Preferred Stock, there are no other potentially dilutive securities,
stock options or warrants outstanding.

NOTE 18 - MAJOR CUSTOMERS

The Company  received  more than 10% of its total revenue for the three and nine
months ended September 30, 2003 from the following customers:

<TABLE>
<CAPTION>
                                    Current Quarter        Year-to-Date
                                     Amount      %         Amount         %        Description of Revenue Received
                                     ------     ---        ------        ---       -------------------------------
<S>                               <C>          <C>       <C>            <C>        <C>
Senior housing facility owner     $2,558,812   63.7%     $4,198,007     51.8%      Interest, fees and mortgage participation
                                                                                     gains - joint venture sr. housing loans
Non-profit community developer       491,667   12.2%      1,431,698     17.7%      Interest and fees from family housing
                                  ----------   -----     ----------     -----        and development loans
                                  $3,050,479   75.9%     $5,629,705     69.5%
</TABLE>
                                                                            F-15
<PAGE>

Item 2. Management's  Discussion and Analysis of Financial Condition and Results
of Operations

Comparison of Periods Ending September 30, 2002 and September 30, 2003

General.  Assets increased from $61,081,886 at September 30, 2002 to $94,939,591
at September  30, 2003 for a net increase of  $33,857,705  or 55%. This increase
was as a  result  of the  sale of  investment  certificates  and the  subsequent
origination  of new loans.  Total  revenue  increased  for the nine months ended
September 30 by $3,779,850 or 87% from $4,320,835 in 2002 to $8,100,685 in 2003.
Net income for the nine months ended September 30, 2003 was $658,725 compared to
$223,975 for the same period ended September 30, 2002.

Total  investment in loans  outstanding  on September  30, 2003 was  $79,355,861
compared to  $47,063,084 as of September 30, 2002 for an increase of $32,292,777
or 69%. This increase was a result of sales of investment  certificates  and the
subsequent   origination  or  refinancing  of  loans,   as  follows:   new  loan
originations  -  $24,749,238;  refinances  on existing  loans,  net of principal
payments received - $7,543,539.  All other assets,  composed  primarily of cash,
bond investments, fixed assets and unamortized debt issue costs were $15,583,730
as  of  September  30,  2003.   Principal  and  interest   payable  on  Investor
Certificates and Mortgage  Participation ("MP") Agreements increased $32,779,805
or 57% from  $57,854,451 as of September 30, 2002 to $90,634,256 as of September
30, 2003. The Company has filed a registration statement with the Securities and
Exchange   Commission  to  sell  up  to  $40,000,000   in  additional   Investor
Certificates and $11,375,000 in Common Stock, which if approved, should continue
the  substantial  increase  in  outstanding   certificates  and  the  subsequent
investment in new loans.

Loan  interest and fees  earned.  Interest  income and fees earned  increased by
$3,086,087 or 87% from  $3,533,707 for the nine months ended  September 30, 2002
to $6,619,794 for the same period ended September 30, 2003. The increase was due
to the following:

Increase in average outstanding loan principal                $2,739,998
($74,001,979 in 2003 and $35,399,582 in 2002)

Decrease in weighted average interest rate                       (92,887)
(9.49% in 2003 and 9.84% in 2002)

Increase in loan fees recognized                                 438,976
                                                              ----------

                                                              $3,086,087

The increase in average  outstanding loan principal is due to the addition of 15
new loans with average outstanding  principal of $29,569,432 and the refinancing
of existing loans with average outstanding principal of $9,032,960.

Real estate and other  income.  For the nine  months  ended  September  30, real
estate and other  income  increased  $693,763  or 88% from  $787,128  in 2002 to
$1,480,891 in 2003. The increase is due to the following:

Investment income                                   $(169,606)
Real estate and loan participation income             870,227
Office condominium rental and other income             (6,858)
                                                    ---------
                                                    $ 693,763

The Company's  investment income is from the purchase of bonds used as permanent
financing for projects the Company funded during their  development  and initial
operations.  The decrease in investment  income is due to the September 30, 2002
sale of an undivided  50% interest in the  Company's St. Lucie Co., FL bonds for
$2,512,500. In September, 2003, the Company purchased $2,500,000 in bonds, which
will cause future  investment income to increase  substantially  compared to its
current level.

Real estate and loan participation  income increased due to a loan participation
gain (realized in September, 2003) from the sale of a senior housing facility in
Largo, FL in which the Company held a participating mortgage loan.

The Company currently owns two office condominiums, one that was acquired during
the first six months of 2003 and is utilized as corporate  offices and the other
is leased to a third party.  Office condominium rental income for the first nine
months of 2003 and 2002 was  $21,435 and  $19,035,  respectively.  Other  income
decreased $9,258 in 2003 versus 2002.

                                                                               3
<PAGE>

Investor interest expense. Investor interest expense increased $2,464,604 or 87%
from  $2,820,427 to $5,285,031 for the nine months ended  September 30, 2002 and
2003, respectively. The increase is due to the following:

Increase in average outstanding loan principal, including         $2,314,746
interest payable subject to compounding
($78,358,925 in 2003 and $42,949,231 in 2002)

Decrease in weighted average interest cost                           (11,890)
(8.74% in 2003 and 8.78% in 2002)

Increase in average outstanding Mortgage Participation               161,748
                                                                  ----------
Agreement principal
($2,162,565 in 2003 and $0 in 2002)
                                                                  $2,464,604

Marketing  expenses.  Total expenses for the marketing of investor  certificates
during the first nine months of 2003 were $448,595  versus $342,617 in 2002. The
increase is due to an increase in debt issue cost  amortization of $129,763,  an
increase in compliance and  registration  costs of $11,496,  a decrease in legal
fees of $18,000,  and a decrease in other marketing costs of $5,785.  Debt issue
cost amortization  expense  increased due to investor  certificates and mortgage
participations  sold since September 30, 2002.  Marketing expenses will continue
to increase as new investor certificates are sold.

Selling commissions paid to brokers for selling investor  certificates and costs
incurred to register  investor  certificates  are paid in cash and charged as an
expense over the term of the related  certificates.  The unamortized  balance is
classified as an asset on the Balance Sheet as  "Unamortized  debt issue costs".
The balance was  $1,853,470  and  $811,364  as of  September  30, 2003 and 2002,
respectively. Debt issue cost amortization expense was $338,859 and $209,096 for
the nine months ended September 30, 2003 and 2002, respectively.

Operating and personnel expenses.  Personnel expenses (salaries,  payroll taxes,
and benefits) were $696,719 for the nine months ended September 30, 2003,  which
was  $184,778 or 36% over the  $511,941  in expense  for the same  period  ended
September 30, 2002. This increase is due to additional employees hired to handle
the Company's growth. As a percentage of total revenues, personnel expenses were
8.6%  and  11.8%  for the nine  months  ending  September  30,  2003  and  2002,
respectively.  Starting in July 2003, the Company  contracted  with  Cornerstone
Capital  Advisors  ("CCA") to provide all personnel  services.  The Company will
reimburse CCA for its expenses  (estimated at $750,000 over the next 12 months),
which are expected to be similar to the expenses  incurred by the Company had it
continued its personnel  support under  previous  arrangements.  There is no fee
schedule  but the Company may elect to pay fees for good  performance,  which if
paid,  would be no more than 10% of the reimbursed  expenses for the previous 12
months.  The Company has paid $157,114 to CCA during 2003,  which is included in
the personnel expense amount listed above.

Operating  expenses  increased $269,472 or 57% from $474,065 to $743,537 for the
nine months ended September 30, 2002 and 2003, respectively. The increase is due
to an increase in occupancy costs and recruiting fees related to the increase in
the  number of  employees  and  legal,  trust  service/paying  agent  fees,  and
consulting  expenses  which  increased  as a result of the  Company's  growth in
operations.  Overall,  operating expenses decreased from 11.0% of total revenues
for the nine months ended  September 30, 2002 to 9.2% of total  revenues for the
nine months ended September 30, 2003.

Income tax  provision  (benefit).  The income tax  provision for the nine months
ended September 30, 2003 was $268,078,  compared to a benefit of $52,190 for the
same period ended  September 30, 2002. The effective tax rate for 2003 was 28.9%
compared  to tax  benefit  rate 30.3% for the same  period in 2002.  This change
resulted  from an increase  in the  Company's  pre-tax  income and a decrease in
tax-exempt bond interest income. A reconciliation of the Company's effective tax
provision  (benefit)  rate to the  federal  statutory  rate is  included  in the
attached "Notes to Consolidated Financial Statements" (Note 9).

Dividends.  Dividends  declared  on June 30,  2003 and 2002  were  $169,085  and
$172,232,  respectively  and were paid  during  the  subsequent  quarters  ended
September  30,  2003 and 2002.  The  Company  does not intend to declare  future
dividends that will create negative retained earnings.

Liquidity and Capital Resources

Cash flows from  operations.  Net cash provided by the Company's  operations for
the nine  months  ended  September  30,  2003 was  $217,365,  which  compares to
$1,780,732  in net cash used by operations  for the same period ended  September
30, 2002 for an increase in net cash provided by operations of $1,998,097.  This
difference was driven by increases in net income,  depreciation and amortization
expense,  deferred  taxes,  and  investor and  mortgage  participation  interest
payable,  partially offset by changes in loans in process, accrued loan interest
and deferred loan fees, and unamortized debt issue costs.

                                                                               4
<PAGE>

During 2003 and 2002,  accrued loan interest  decreased net cash from operations
by $1,023,478  and $649,223,  respectively,  due to the  capitalization  of loan
interest on the following types of loans: (1) development  loans that are in the
pre-construction  phase of the project;  (2) senior housing facility loans. Most
of the senior housing facilities are in need of renovation when purchased by the
respective  borrowers.  The  Company  develops  a loan  budget  when the loan is
originated which includes the original purchase price,  capital improvements and
short-term  working capital needs (which includes interest  capitalization).  As
part of the Company's regular loan management process, current loan balances are
compared to the original  budgets and the  renovation  progress  and  facility's
operating  results are analyzed to ensure the loan is properly valued.  No loans
were over their  respective  loan budgets as of September 30, 2003 and 2002. The
Company will receive the  capitalized  interest when the  facilities are sold or
re-financed  to an outside  lender;  normally  from two to three years after the
loans are originated.

Cash flows from investing activities.  The Company used $16,703,354 in cash from
investing activities which is an increase of $3,119,943 from $13,583,411 for the
same period ended September 30, 2002. The increase was due to the following:

Increase in real estate and joint venture loans made     $ 6,861,428
Increase in real estate and joint venture loan
   principal payments received                            (9,312,858)
Increase in bonds purchased                                2,500,000
Decrease in bonds redeemed or sold                         2,542,500
Increase in fixed asset and real estate purchases            528,873
                                                         -----------
                                                         $ 3,119,943

The increase in loan principal  payments received in 2003 was due to the pay-off
of the Largo, FL senior housing loan and large pay-downs on senior housing loans
in Palm Bay, FL and St. Petersburg, FL.

 The Company currently has commitments and applications sufficient to invest its
excess cash on hand.

During 2003, the Company  purchased an office  condominium for $532,040 to house
its corporate offices and to provide additional office space for future growth.

Cash from  financing  activities.  During  the first  nine  months of 2003,  the
Company raised  $20,969,088  from the sale of new Investor  Certificates  and MP
Agreements,  net of  redemptions  on existing  certificates.  This  represents a
decrease of $171,370  from net  certificate  sales of  $21,140,458  for the same
period ended September 30, 2002. The percentage of Investor  Certificates and MP
Agreements redeemed for cash compared to Investor Certificates and MP Agreements
sold for the nine months ended  September  30, 2003 and 2002 was 14.1% and 9.4%,
respectively.  Historically,  over 80% of Investor  Certificate  maturities  are
re-issued as new  certificates;  however,  until the new registration  statement
with  the  Securities  and  Exchange  Commission  is  approved  and we have  new
certificates to issue,  all maturities will be paid in cash, which has increased
the percentage for 2003.

                                                                               5
<PAGE>

Item 3. Controls and Procedures

The principal executive officer and the principal financial officer of the small
business issuer, Cornerstone Ministries Investments, Inc., have, as of September
30,  2003,  evaluated  the  small  business  issuer's  disclosure  controls  and
procedures,  as defined by Sections  13a-14(c) and  15d-14(c) of the  Securities
Exchange Act of 1934. Based on their evaluation,  they have concluded that those
disclosure  controls and procedures are designed and implemented  effectively to
ensure that information required to be disclosed by the small business issuer in
the  reports  that it files or submits  under that Act is  recorded,  processed,
summarized and reported,  within the time periods  specified in the Commission's
rules and forms.

Part II. Other Information

Item 1. Legal Proceedings

        Not Applicable

Item 2. Changes in Securities

        Not Applicable

Item 3. Defaults upon Senior Securities

        Not Applicable

Item 4. Submission of Matters to a Vote of Securities Holders

        Not Applicable

Item 5. Other Information

        Not Applicable

Item 6. Exhibits and Reports on Form 8-K

(a) (1) Exhibit 15, Letter on unaudited interim financial information.
    (2) Exhibit 99.1, certifications pursuant to Section 906 of the
        Sarbanes-Oxley Act of 2002.
(b) No reports on Form 8-K were filed  during the quarter for which this report
    is filed.

Signatures

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

Dated: November 11, 2003   Cornerstone Ministries Investments, Inc. (Registrant)

                           By:    S/John T. Ottinger
                                  ------------------
                                  John T. Ottinger
                                  Vice President and Chief Financial Officer

                                                                               6