U. S. SECURITIES AND EXCHANGE COMMISSION

                              Washington, DC 20549

                                  Form 10-QSB/A

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

         For the quarterly period ending June 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 June 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 June 30, 2003               F-2

                Consolidated Statements of Income (Loss) and  Retained
                Earnings (Deficit) for the Six Months ended June 30,
                2002 and 2003                                                F-3

                Consolidated Statements of Changes in Stockholders Equity
                For the Six Months ended June 30, 2002 and 2003              F-4

                Consolidated Statements of Cash Flows for the Six
                Months ended June 30, 2002 and 2003                          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


                                                                               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 June 30,  2002 & 2003 and the  related  statements  of
income,  retained  earnings,  and cash  flows for the three  month and six month
periods 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
August 12, 2003

<PAGE>

CORNERSTONE MINISTRIES INVESTMENTS, INC. & SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
JUNE 30, 2002 & 2003
<TABLE>
<CAPTION>
                                                                Restated
                                                                06/30/02          06/30/03
                                                              ------------      ------------
<S>                                                           <C>               <C>
ASSETS
Cash in banks                                                 $  4,122,876      $  6,773,656
Loans in process                                                   335,229           824,227
Real estate loans, net                                          37,506,146        77,191,845
Bond holdings & accrued interest                                 5,339,199         2,701,600
Fixed assets, net                                                  290,212           900,998
Deferred tax asset, net                                            556,371           538,443
Goodwill                                                           450,997           450,997
Unamortized debt issue costs                                       699,628         1,694,439
Real estate held for sale                                          333,864           340,000
Other assets                                                        65,425            45,376
                                                              ------------      ------------
TOTAL ASSETS                                                  $ 49,699,947      $ 91,461,581
                                                              ============      ============

LIABILITIES
Investor certificates & accrued interest                      $ 45,570,202      $ 83,946,739
Mortgage participation agreements & accrued interest                     0         4,183,323
Accounts and other payables                                      1,093,168           305,871
Building mortgage                                                  193,336           184,660
Dividends payable                                                  172,232           169,085
Capital lease obligation                                                 0            16,146
                                                              ------------      ------------
TOTAL LIABILITIES                                               47,028,938        88,805,824
                                                              ------------      ------------
SHAREHOLDER'S EQUITY
Series A Convertible Preferred Stock, no par
  value; 235,000 shares authorized, no
  shares issued & outstanding                                            0                 0
Common Stock, $0.01 Par Value, 10 million shares
  authorized; 529,943 & 531,529 shares issued & outstanding          5,299             5,315
Paid in capital                                                  3,287,149         3,297,435
Retained earnings (deficit)                                       (621,439)         (573,744)
Treasury Stock                                                           0           (73,249)
                                                              ------------      ------------
TOTAL SHAREHOLDER'S EQUITY                                       2,671,009         2,655,757
                                                              ------------      ------------
TOTAL LIABILITIES &
  SHAREHOLDER'S EQUITY                                        $ 49,699,947      $ 91,461,581
                                                              ============      ============
</TABLE>

SEE ACCOMPANYING NOTES

                                                                             F-2
<PAGE>

CORNERSTONE MINISTRIES INVESTMENTS, INC. & SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME (LOSS) & RETAINED EARNINGS (DEFICIT)
FOR THE THREE MONTHS & SIX MONTHS ENDED JUNE 30, 2002 & 2003
<TABLE>
<CAPTION>
                                                                                    Restated
                                                 3 Months         3 Months          6 Months        6 Months
                                               Ended 06/30/02   Ended 06/30/03    Ended 06/30/02  Ended 06/30/03
<S>                                             <C>              <C>              <C>              <C>
REVENUES
Loan interest & fees earned                     $   946,691      $ 2,032,829      $ 2,108,391      $ 3,908,037
Real estate & other income                          153,089          110,959          287,928          174,233
                                                -----------      -----------      -----------      -----------
TOTAL REVENUES                                    1,099,780        2,143,788        2,396,319        4,082,270
                                                -----------      -----------      -----------      -----------
Investor interest expense                           942,072        1,797,058        1,785,364        3,354,375
Marketing expenses                                  121,737          180,738          228,734          287,225
Salaries, wages, payroll taxes and benefits         207,478          256,714          346,769          471,215
Operating expenses                                   91,116          142,277          270,644          456,386
                                                -----------      -----------      -----------      -----------
TOTAL EXPENSES                                    1,362,403        2,376,787        2,631,511        4,569,201
                                                -----------      -----------      -----------      -----------
Operating income (loss)                            (262,623)        (232,999)        (235,192)        (486,931)
Income tax (expense) benefit                        215,716          107,805          174,701          221,751
                                                -----------      -----------      -----------      -----------
NET INCOME (LOSS)                               $   (46,907)     $  (125,194)     $   (60,491)     $  (265,180)
                                                ===========      ===========      ===========      ===========

Retained earnings as previously reported        $  (402,300)     $  (279,465)     $   (30,744)     $  (139,479)
Correction of error, Note 2                               0                0         (357,972)               0
                                                -----------      -----------      -----------      -----------
Beginning retained earnings (deficit) as           (402,300)        (279,465)        (388,716)        (139,479)
restated
Net income (loss)                                   (46,907)        (125,194)         (60,491)        (265,180)
Dividends declared                                 (172,232)        (169,085)        (172,232)        (169,085)
                                                -----------      -----------      -----------      -----------
Ending retained earnings (deficit)              $  (621,439)     $  (573,744)     $  (621,439)     $  (573,744)
                                                ===========      ===========      ===========      ===========

Basic & Diluted Earnings (Loss) per Common      $     (0.09)     $     $0.24)     $     (0.11)     $     (0.51)
Share
</TABLE>

SEE ACCOMPANYING NOTES

                                                                            F-3
<PAGE>

CORNERSTONE MINISTRIES INVESTMENTS, INC. & SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDER'S EQUITY
FOR THE SIX MONTHS ENDED JUNE 30, 2002 & 2003
<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, DECEMBER 31, 2001, RESTATED      528,721    $    5,287    $3,279,491   $        0   ($ 388,716)   $        0    $2,896,062
Net income (loss)                                                                               (60,491)                    (60,491)
Capital contributed                         1,222            12         7,658                                                 7,670
Dividend declared                                                                              (172,232)                   (172,232)
                                       ----------    ----------    ----------   ----------   ----------    ----------    ----------
BALANCE, JUNE 30, 2002, RESTATED          529,943    $    5,299    $3,287,149   $        0   ($ 621,439)   $        0    $2,671,009
                                       ==========    ==========    ==========   ==========   ==========    ==========    ==========
BALANCE, DECEMBER 31, 2002                530,944    $    5,309    $3,293,641   $        0   ($ 139,479)   $        0    $3,159,471
Net income (loss)                                                                              (265,180)                   (265,180)
Capital contributed                           585             6         3,794                                                 3,800
Dividend declared                                                                              (169,085)                   (169,085)
Treasury shares acquired                                                                                      (73,249)      (73,249)
                                       ----------    ----------    ----------   ----------   ----------    ----------    ----------
BALANCE, JUNE 30, 2003                    531,529    $    5,315    $3,297,435   $        0   ($ 573,744)   ($  73,249)   $2,655,757
                                       ==========    ==========    ==========   ==========   ==========    ==========    ==========
</TABLE>
SEE ACCOMPANYING NOTES

                                                                             F-4
<PAGE>

CORNERSTONE MINISTRIES INVESTMENTS, INC. & SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 2002 & 2003
<TABLE>
<CAPTION>

                                                Restated
                                                06/30/02        06/30/03
                                              ------------    ------------
<S>                                           <C>             <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)                             $    (60,491)   $   (265,180)
Adjustments to reconcile net income to cash
  from operations-
Depreciation & amortization                        157,734         227,699
Changes in-
Loans in process                                  (130,645)       (465,207)
Accrued bond interest, net                         (81,085)          1,312
Accrued loan interest & deferred loan fees         284,088        (147,528)
Deferred taxes                                    (312,893)       (264,210)
Unamortized debt issue costs                      (266,451)       (893,058)
Investor interest payable                       (1,096,453)      1,006,288
Accounts & other payables                          960,990          23,747
Other                                               (4,738)         (7,184)
                                              ------------    ------------
NET CASH PROVIDED (USED) BY OPERATIONS            (549,944)       (783,321)
                                              ------------    ------------
CASH FLOWS FROM INVESTING ACTIVITIES:
Real estate loans made                          (7,387,265)    (20,235,814)
Loan principal payments received                   276,077       7,946,195
Bonds redeemed                                      62,000          31,250
Fixed assets purchased                             (37,998)       (587,326)
Real estate costs capitalized                       (2,351)              0
                                              ------------    ------------
NET CASH (USED) BY INVESTING                    (7,089,537)    (12,845,695)
                                              ------------    ------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Investor certificates sold                      10,576,131      17,975,412
Investor certificates redeemed                  (1,553,209)     (2,844,132)
Mortgage participation agreements sold                   0       4,015,112
Building mortgage principle payments                (3,858)         (4,566)
Capital lease principle payments                         0          (1,564)
Common stock issued                                  7,670           3,800
Dividends paid                                    (171,834)       (168,640)
Treasury stock acquired                                  0         (73,249)
                                              ------------    ------------
NET CASH PROVIDED BY FINANCING                   8,854,900      18,902,173
                                              ------------    ------------
Net Change in cash                               1,215,419       5,273,157
Cash at beginning of period                      2,907,457       1,500,499
                                              ------------    ------------
CASH AT END OF PERIOD                         $  4,122,876    $  6,773,656
                                              ============    ============

Supplemental Information-
Interest paid during the period               $  2,907,083    $  2,299,445
Income taxes paid during the period           $          0    $          0
Non-cash transactions-
Fixed asset lease financing                   $     17,710
Certificates matures & re-issued              $ 11,649,925    $  3,702,912
</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.".

Loans are stated at unpaid principal balances, less an allowance for loan losses
and net deferred loan fees and unearned discounts. Interest income is recognized
monthly  as it is  earned,  in  accordance  with  loan  terms.  Interest  income
generally is not recognized on specific  impaired loans unless the likelihood of
further loss is remote.  Interest payments received on such loans are applied as
a reduction of the loan  principal  balance.  Interest  income on other impaired
loans is  recognized  only to the extent of  interest  payments  received.  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.

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  subject to  amortization  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,  economic  conditions,   and  other  risks  inherent  in  the  portfolio.
Allowances  for impaired  loans are  generally  determined  based on  collateral
values or the present value of estimated cash flows.  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 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.

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


                                                                             F-6
<PAGE>

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 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,  and may
be paid semi-annually.  Investors holding five year certificates in multiples of
$10,000  may  receive  interest  monthly.  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  and loan  fees  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. 144,  Accounting  for the  Impairment  or
Disposal of  Long-Lived  Assets,  effective  for fiscal  years  beginning  after
December 15, 2001. The Statement establishes a single accounting model, based on
the framework established in Statement 121, for long-lived assets to be disposed
of by sale.  The  Statement  also  resolves  significant  implementation  issues
related to Statement 121. The Statement  retains the  requirements  of Statement
121 to recognize an impairment  loss only if the carrying amount of a long-lived
asset is not  recoverable  from its  undiscounted  cash  flows  and  measure  an
impairment loss as the difference  between the carrying amount and fair value of
the asset.

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


                                                                             F-7
<PAGE>

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 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.


                                                                             F-8
<PAGE>

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

NOTE 2 - CORRECTION OF PREVIOUS FINANCIAL STATEMENTS

The Company has retroactively  restated prior period's financial  statements for
corrections,  principally to it's method of  recognizing  fees  associated  with
mortgage  loans.  Additionally,  the  Company  corrected  its failure to provide
certain amortization and miscellaneous  expenses. The following table reconciles
previously  reported  amounts  with  the  restated  amounts  presented  in these
financial statements:
                                              6 months ended    06/30/02
                                                             ------------
Interest & fees earned as previously reported                $  3,032,031
Reclassification of non-loan interest                            (274,739)
Cumulative deferral of previously recognized fees                (648,901)
                                                             ------------
Loan interest & fees earned as restated                      $  2,108,391

Income tax expense as previously reported                    $    (89,800)
Reclassification of subsidiary tax provision                       19,633
Tax effect of corrections                                         244,868
                                                             ------------
Income tax (expense) benefit as restated                     $    174,701

Income as previously reported                                $    375,706
Correction of amortization of debt issue costs                    (24,979)
Correction of miscellaneous income item                            (7,185)
Deferral of previously recognized fees                           (648,901)
Income tax correction                                             244,868
                                                             ------------
Net Income (Loss) as restated                                $    (60,491)

Earnings per share, basic & diluted as previously reported   $       0.66
Deferred fees & corrections noted above, net of taxes               (0.77)
                                                             ------------
Earnings per share, basic & diluted as restated              $      (0.11)

Loans & accrued interest as previously reported              $ 38,897,347
Deferral of previously recognized fees, cumulative             (1,391,201)
                                                             ------------
Real estate loans, net as restated                           $ 37,506,146

Income taxes payable as previously reported                  $    (98,320)
Income taxes payable included in other payables                    89,800
Refundable income taxes                                            68,025
Deferred income taxes                                             (33,941)
Other income tax reclassification                                   8,520
Tax effect of fee deferral, cumulative                            522,287
                                                             ------------
Deferred tax asset as restated                               $    556,371

Additionally, costs associated with its stock offerings ($152,183 with $0 income
tax effects) have been  reclassified  as of December 31, 2000 from an intangible
asset  classification  on the  balance  sheet to a reduction  of the  associated
paid-in capital  account.  There was no income statement  effect.  The following
table  reconciles  previously  reported  amounts with the  restated  amounts and
accounts presented in these financial statements:


                                                                             F-9
<PAGE>

                                                                06/30/02
                                                               -----------
Intangible assets, net as previously reported                  $   306,229
Reclassification from other assets                                 545,582
Stock offering costs reclassified                                 (152,183)
                                                               -----------
Unamortized debt issue costs as restated                       $   699,628

Paid in capital as previously reported                         $ 3,439,332
Stock offering costs reclassified                                 (152,183)
                                                               -----------
Paid in capital, as restated                                   $ 3,287,149

NOTE 3 - FIXED ASSETS

<TABLE>
<CAPTION>
As of June 30, the Company's fixed assets are composed of:      2003         2002
                                                             ---------    ---------
<S>                                                          <C>          <C>
Office Condominiums                                          $ 792,659    $ 252,922
Office Computers, Furnishings, Software & Equipment            116,054       26,173
Vehicles                                                        37,730       37,730
Capital Lease - phone system                                    17,710          -0-
Less: Accumulated Depreciation                                 (63,155)     (26,613)
                                                             ---------    ---------
Fixed Assets, net                                            $ 900,998    $ 290,212

Depreciation expense (6 months)                              $  24,375    $   8,462
</TABLE>
NOTE 4 - COMMITMENTS

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 $1,968 and $0 for the six months ending June 30, 2003 and 2002.

Future minimum lease payments as of June 30, 2003:
July, 2003 - June, 2004                           $   7,531
July, 2004 - June, 2005                               7,531
July, 2005 - June, 2006                               6,905
                                                   --------
                                                     21,967
Less: interest portion                               (5,821)
                                                   --------
Capital lease obligation                           $ 16,146

The Company has entered into a Personnel  Services  Agreement  with  Cornerstone
Capital  Advisors,  Inc.  (CCA) to provide loan  administration,  including  the
application  and  closing  process  and  loan  accounting;  investor  relations;
marketing  collateral;   administration  of  computers,  computer  networks  and
management  information  systems;  photo copying;  and,  maintenance of records,
record  keeping,  bookkeeping  and accounting  after June,  2003. The Company is
obligated to pay directly or reimburse  actual  expenses to be billed monthly 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


                                                                            F-10
<PAGE>

judgment  on the extent to which CCA's  services  will have  contributed  to the
results.  The maximum  incentive  compensation  that can be earned 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.  As of June 30, 2003,  CCA had not incurred any material
expenses to be billed to the Company.

NOTE 5-REAL ESTATE LOANS RECEIVABLE

At March  31,  2003 the  Company  had Real  Estate  Loans on  church  and  other
not-for-profit properties as follows:

Mortgage Loans                      $78,260,212
Accrued Interest                        642,833
Unearned Loan Fees                   (1,711,200)
                                    -----------
Total Real Estate Loans             $77,191,845

These loans mature as follow: 2003 - $40,517,634; 2004 - $36,303,240; 2005 - $0;
2006 - $18,285; 2007 & beyond - $1,421,053.  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 June 30, 2003, one loan, with a carrying amount of $137,526 was considered
impaired due to  non-payment of interest.  No allowance for impairment  loss has
been recorded  because the carrying  amount of the loan is less than or equal to
the present value of expected future cash flows. The weighted average investment
in impaired loans for the periods ending June 30, 2003 and 2002 was $134,694 and
$0, respectively.

Interest  income is recognized  on the accrual basis for impaired  loans with no
recorded  impairment  loss.  Interest income is recognized on the cash basis for
loans with a  recorded  impairment  loss and the  possibility  of  further  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. Interest income recognized on impaired loans for the
six months ending June 30, 2003 and 2002 was $5,664 and $0, respectively.

NOTE 6 -GOODWILL

The Company  uses SFAS 142  "Goodwill  and Other  Intangible  Assets"  effective
January  1,  2002.  Goodwill  associated  with  the  Company's   acquisition  of
Presbyterian  Investor's  Fund,  Inc.  (PIF) is carried at  $450,997  and is not
subject to  amortization.  Goodwill is tested for  impairment at the end of each
fiscal year using a present value of expected  cash flows  analysis to determine
the value of  Goodwill.  As of  December  31,  2002,  the fair value of Goodwill
exceeded its carrying cost; therefore, no provision for impairment loss has been
recorded as of June 30, 2003 and 2002.  No goodwill was acquired or sold in 2003
or 2002.


                                                                            F-11
<PAGE>

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.

<TABLE>
<CAPTION>

At June 30, Deferred Financing Costs consist of:               2003           2002
                                                           -----------    -----------
<S>                                                        <C>            <C>
Costs incurred to register the Company's debt securities   $   544,926    $   406,790
Commissions paid on the sale of debt securities              1,894,202        632,304
Less: Accumulated Amortization, generally over 5 years        (744,689)      (339,466)
                                                           -----------    -----------
                                                           $ 1,694,439    $   699,628

Amortization Expense (6 months)                            $   203,324    $   143,293
</TABLE>

NOTE 8 - BOND HOLDINGS

Bond holdings at June 30:

                                                  2003           2002
                                               -----------    -----------
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)           -0-
Local Church Bonds, maturing 2003                   27,500         85,500
Accrued Interest Receivable                        161,600        228,699
                                               -----------    -----------
                           Totals              $ 2,701,600    $ 5,339,199

The bonds are not traded on an exchange,  however management estimates, based on
discounted  cash  flows,  that  the  fair  value  of the  individual  securities
approximate  their original cost.  Accordingly,  no unrealized  holding gains or
losses  have been  recorded.  Proceeds  from the sale or  maturity of bonds were
$31,250 and $62,000 for the six month periods ending June 30, 2003 and 2002. The
Company uses the specific-identification  method to determine realized gains and
losses. Tax-fee interest income for the six months ending June 30, 2003 and 2002
was $115,038 and $233,054, respectively.

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. This was
the result of an  unanticipated  opportunity to utilize an investor's  funds and
the Company sold an undivided  50%  interest in the St.  Lucie  County,  Florida
Bonds for $2,512,500, which equals book value. No gain or loss was recorded as a
result  of the  transaction,  nor  when  transferred  as the  cost of the  bonds
approximated their fair value. The Company reinvested the funds from the sale in
a real estate loan,  which  management  believes will provide greater  long-term
returns than the bonds.

NOTE 9 - INCOME TAXES

The net  deferred  tax asset in the  accompanying  balance  sheet  includes  the
following:

                                     2003         2002
                                  ---------    ---------
Net  deferred  tax  assets        $ 673,566    $ 559,066
Net  deferred  tax  liabilities    (135,123)      (2,695)
Valuation allowance                     -0-          -0-
                                  ---------    ---------
 Net deferred tax asset           $ 538,443    $ 556,371

The deferred tax  liability  results  from the use of  accelerated  depreciation
methods for  property  and  equipment.  The  deferred  tax asset  results from a
difference in reporting income from loan


                                                                            F-12
<PAGE>

fees and  represents  taxes  already  paid.  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 June 30, 2003 or 2002.
The Company has pending with the Department of the Treasury, a request to change
its accounting method with respect to loan fees which would approximate the book
treatment under SFAS Nos. 65 and 91.

Components of income tax benefit for the period ended June 30 are:

                         2003           2002
                      ---------      ---------
Current: Federal      $  36,090      $     -0-
         State            6,369            -0-
Deferred: Federal      (224,578)      (161,345)
         State          (39,632)       (13,356)
                      ---------      ---------
                      $(221,751)     $(174,701)

Reconciliation  of the Company's income tax expense  (benefit) rate to statutory
federal rates for the period ended June 30:

                                                     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)%
        Non-taxable bond interest income              (8.0)%      (37.4)%
        Other, net                                      .2%          .8%
                                                     -----        -----
        Effective tax expense (benefit) rate         (45.5)%      (74.3)%


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 loss.

NOTE 10 - CASH CONCENTRATION

A cash  concentration  risk arises when the Company has more cash in a financial
institution than is covered by insurance. At June 30, 2003, the Company had cash
in excess of insured limits totaling $6,545,186.

NOTE 11-INVESTOR CERTIFICATES

During 2001, the Company filed two Form SB-2  Registration  Statements under the
Securities Act of 1933. Under these Registration Statements,  the Company issued
3 separate  securities.  Under the first of the SB-2 filings the Company  issued
securities  identified  as "Access  Certificates".  These  certificates  have no
stated maturity, are purchased in $100 increments and bear a rate of interest as
determined  by the  Company's  board of directors on the first of each  January,
April,  July and October.  The directors may also change the rates between these
dates if market  conditions  warrant  such a change.  Under this same filing the
Company  issued  5  year  "Graduated   Certificates"  which  require  a  minimum
investment of $500. Under the terms of the offering as filed, these certificates
carry a graduated interest rate based on how long the certificate is held by the
investor,  up to 5  years.  These  certificates  are not  collateralized  and no
sinking fund is required for paying the certificates upon maturity.  Also during
the year ended December 31, 2001 the Company offered up to $17,000,000 of Series
B Certificates of  Indebtedness.  Of the $17,000,000  offered,  $3,000,000 has a
March 13, 2003


                                                                            F-13
<PAGE>

maturity date and bears an interest rate of 7%. The remaining  $14,000,000  will
have a March 15, 2005 maturity date and bear interest at 9%. These  certificates
are not  collateralized  and no  sinking  fund for paying  the  certificates  on
maturity is required.  Listed below are the certificates  outstanding as of June
30, 2003 by interest rate and date of maturity:

5.0%             $ 2,774,458                      2003           $  6,599,644
7.0%               5,273,376                      2004              4,145,056
7.5%               2,580,589                      2005              4,862,921
8.0%                 469,532                      2006             10,857,455
9.0%              69,097,609                      2007/Beyond      53,730,488
                                                                 ------------
                                                Total principal   $80,195,564

As of June 30, 2003 and 2002,  accrued  interest was  $3,751,175  and $1,942,325
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 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
$50,000,000 of its  Certificates  of  Indebtedness  along with $1,625,000 of its
Common Stock.

NOTE 12-MORTGAGE PARTICIPATION AGREEMENTS

In 2003, the Company started issuing Mortgage  Participation  ("MP") Agreements.
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 real estate 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 $27,020
for the six months ended June 30, 2003.

The loans which  collateralize  the MP Agreements  earn 10% annual  interest and
'interest  only' payments are due monthly.  MP Agreement  principal and interest
outstanding and related collateral as of June 30, 2003:


Collateral Description                                     MP Amount Outstanding
----------------------                                     ---------------------
Loan to Senior Housing Services; senior housing facility,
         Lewisville, TX; matures 10/1/2004 with a 1 year
         extension at the Company's option                          $2,490,113

Loan to Senior Housing Services; senior housing facility,
         Garland, TX; matures 12/1/2003 with two 1 year
         extensions at the Company's option                          1,669,842
                                                                    ----------
Total principal                                                      4,159,955
Accrued interest payable                                                23,368
                                                                    ----------
                                                                    $4,183,323


                                                                            F-14
<PAGE>

NOTE 13 - LOAN GUARANTEES

At June 30, 2003 the Company was guarantor for potential total of $34,776,000 of
loans secured by retirement facilities owned by not-for-profit entities. Certain
acquisition and development loans in which we choose to secure outside financing
may require a CMI  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 cover outstanding  principal and accrued interest and
terminate  upon  maturity and  principal  repayment.  At June 30,  2003,  actual
amounts drawn and therefore  guaranteed to a commercial bank total  $28,531,778.
Only  upon  an  uncured  payment  default  and  upon  demand  by  the  financial
institution  would CMI be required to perform under its  guarantee  obligations.
CMI's recourse would be limited to repossession of the underlying collateral and
subsequent resale of the facilities.  As of June 30, 2003, all loans which had a
guarantee  were current and  accordingly  no  obligation  is  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 six
months ended June 30, 2003 the Company has not elected to contribute.

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-Year  2003-  $3,708;  Year  2004-  $9,791;  Year 2005-  $10,658;  Year 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.  Shares with a value of $500,000  were issued to  Wellstone
Financial Group, LLC (WFG) during 2001. As WFG is included in these consolidated
financial  statements,   the  shares  have  been  eliminated  in  consolidation.
Accordingly,  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.


                                      F-15
<PAGE>

NOTE 17 - EARNINGS PER SHARE

Basic earnings (loss) per share have been calculated as follows:

                                              Current Quarter  Year-to-Date
                                              ---------------  ------------
2002     Net Income (Loss)                      $ (46,907)      $  (60,491)
         Average Common Shares Outstanding        529,629          572,166
         Earnings (Loss) per Common Share       $   (0.09)      $    (0.11)

2003     Net Income (Loss)                      $(125,194)      $ (265,180)
         Average Common Shares Outstanding        519,965          523,088
         Earnings (Loss) per Common Share       $   (0.24)      $    (0.51)

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.


                                                                            F-16
<PAGE>

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

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

General.  Assets  increased from  $49,699,947 at June 30, 2002 to $91,461,581 at
June 30, 2003 for a net increase of $41,761,634 or 84.0%. This increase was as a
result of the sale of investment  certificates and the subsequent origination of
new  loans.  Total  revenue  increased  for the  six  months  ending  June 30 by
$1,685,951 or 70.4% from  $2,396,319 in 2002 to $4,082,270 in 2003. The net loss
for the six months  ending June 30, 2003 was $265,180  compared to a net loss of
$60,491 for the same period ending June 30, 2002.

Total investment in loans outstanding on June 30, 2003 was $77,191,845  compared
to  $37,506,146  as of June 30, 2002 for an increase of  $39,685,699  or 105.8%.
This  increase  was a result  of the  sale of  investment  certificates  and the
subsequent   origination  or  refinancing  of  loans,   as  follows:   new  loan
originations  -  $30,236,721;  refinances  on existing  loans,  net of principal
payments received - $9,448,978.  All other assets,  composed  primarily of cash,
bond investments, fixed assets and unamortized debt issue costs were $14,269,736
as of June 30, 2003. Principal and interest payable on Investor Certificates and
Mortgage  Participation  ("MP") Agreements  increased  $42,559,860 or 93.4% from
$45,570,202  as of June 30, 2002 to $88,130,062 as of June 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,  which,  if
approved,  should continue the substantial increase our outstanding certificates
and the subsequent investment in new loans.

Accounts  and other  payables  decreased  from  $1,093,168  on June 30,  2002 to
$305,871 on June 30, 2003.  The decrease  was due to  certificates  that matured
just prior to June 30, 2002 that were  re-classified to accounts payable pending
final instructions  regarding payment to the investor.  All amounts were paid in
July, 2002 and no similar items were outstanding as of June 30, 2003.

Loan  interest and fees  earned.  Interest  income and fees earned  increased by
$1,799,646  or 85.4% from  $2,108,391  for the six months ended June 30, 2002 to
3,908,037 for the same period ending June 30, 2003.  The increase was due to the
following:

Increase in average outstanding loan principal
($70,242,776 in 2003 and $33,438,042 in 2002)                 $1,724,730

Decrease in weighted average interest rate
(9.45% in 2003 and 10.01% in 2002)                               (89,724)

Increase in loan fees recognized                                 164,640
                                                              ----------
                                                              $1,799,646

The increase in average  outstanding loan principal is due to the addition of 14
new loans with  outstanding  principal of  $29,641,731  and the  refinancing  of
existing loans of $7,163,003.

Real  estate  and  other  income.   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. No other
real estate is owned but the Company  does engage in  participating  loans where
future gains and losses could be realized.  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 Company  owned
$2,540,000  of bonds at June 30, 2003,  down from  $5,110,500  at June 30, 2002.
This  decrease  was driven by the sale on September  30,  2002,  of an undivided
interest  totaling  $2,512,500  in 8% and 10%  certificate  bonds.  Accordingly,
investment interest decreased by $114,946 or (41.8%) from $274,693 for the first
six months of 2002 to $159,747  for the first six months of 2003.  Other  income
(from the  office  condo  lease)  for the first six  months of 2003 and 2002 was
$14,486 and $13,235, respectively.


                                                                               3
<PAGE>

Investor  interest expense.  Investor  interest expense increased  $1,569,011 or
87.9% from  $1,785,354 to $3,354,375 for the six months ending June 30, 2002 and
2003, respectively. The increase is due to the following:

Increase in average outstanding loan principal, including
Interest payable subject to compounding
($76,542,002 in 2003 and $40,440,452 in 2002)                      $1,570,042

Decrease in weighted average interest cost
(8.77% in 2003 and 8.90% in 2002)                                     (28,051)

Increase in average outstanding Mortgage Participation                 27,020
                                                                   ----------
Agreement principal
($544,878 in 2003 and $0 in 2002)                                  $1,569,011

Marketing  expenses.  Total expenses for the marketing of investor  certificates
during the first six months of 2003 were $287,225  versus  $228,734 in 2002. The
increase is due to an increase in debt issue cost  amortization of $60,031 and a
$1,540 decrease in other marketing costs. Debt issue cost  amortization  expense
increased due to investor  certificates and mortgage  participations  sold since
June 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  $1,694,439  and  $699,628  as of  June  30,  2003  and  2002,
respectively. Debt issue cost amortization expense was $203,324 and $143,293 for
the six months ending June 30, 2003 and 2002, respectively.

Operating and personnel expenses.  Personnel expenses (salaries,  payroll taxes,
and benefits)  were $471,215 for the six months ending June 30, 2003,  which was
$124,446 or 35.9% over the  $346,769 in expense for the same period  ending June
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
11.5% and 14.5% for the six months ending June 30, 2003 and 2002,  respectively.
Starting in July 2003,  the  Company has  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.

Operating expenses increased $185,742 or 68.6% from $270,644 to $456,386 for the
six months ending June 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 and  consulting  expenses as a result of the
Company's growth in operations. Overall, operating expenses decreased from 11.3%
of total  revenues  for the six months  ending  June 30,  2002 to 11.2% of total
revenues for the six months ending June 30, 2003.

Income tax (provision) benefit. The income tax benefit for the six months ending
June 30,  2003 was  $221,751,  compared  to a benefit of  $174,701  for the same
period  ending June 30, 2002.  The effective tax benefit rate for 2003 was 45.5%
compared to 74.3% for the same  period in 2002.  This  change  resulted  from an
increase  in the  Company's  pre-tax  loss and a  decrease  in  tax-exempt  bond
interest income. A reconciliation of the Company's effective tax 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  ending
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 used by the Company's  operations for the
six months  ending June 30, 2003 was  $783,321,  which  compares to $549,944 net
cash used from  operations  for the same  period  ending June 30, 2002 for a net
cash use increase of $233,377.  This difference was driven by an increase in the
company's net loss and from changes in  unamortized  debt issue costs,  loans in
process,  accounts and other payables and deferred  taxes,  partially  offset by
increases  in  Investor  Certificate  and  MP  Agreement  interest  payable  and
depreciation and amortization expense.


                                                                               4
<PAGE>

Cash flows from investing activities.  The Company used $12,845,695 in cash from
investing  activities which is an increase of $5,756,158 from $7,089,537 for the
same period ending June 30, 2002. The increase was driven by an increase in Real
Estate loans made during the first six months of 2003, net of principal payments
received.  The company  increased its loan portfolio by $12,437,147  for the six
months  ending  June 30,  2003.  This  compares  to a net  increase  in loans of
$6,827,100 for the same six months ending June 30, 2002, an 82.2% increase.  The
Company  currently has  commitments  and  applications  sufficient to invest its
excess cash on hand.

Additionally,  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 six months of 2003, the Company
raised $19,146,392 from the sale of new Investor Certificates and MP Agreements,
net of redemptions  on existing  certificates.  This  represented an increase of
$10,123,470 from net certificate  sales of $9,022,922 for the same period ending
June 30, 2002. The ratio of Investor Certificates and MP Agreements redeemed for
cash to Investor  Certificates  and MP Agreements sold for the six months ending
June 30, 2003 was 12.9% and 14.7% for 2002.


                                                                               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 June 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  32.1,  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 12, 2003              Cornerstone Ministries Investments, Inc.
                                                   (Registrant)


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


                                                                               6

<PAGE>

Certifications

I, Cecil A. Brooks, certify that:

1. I  have  reviewed  this  quarterly  report  on  Form  10-QSB  of  Cornerstone
Ministries Investments, Inc.;

2. Based on my  knowledge,  this  quarterly  report  does not contain any untrue
statement of a material fact or omit to state a material fact  necessary to make
the statements made, in light of the  circumstances  under which such statements
were made, not  misleading  with respect to the period covered by this quarterly
report;

3.  Based  on my  knowledge,  the  financial  statements,  and  other  financial
information  included in this quarterly  report,  fairly present in all material
respects the financial  condition,  results of operations  and cash flows of the
registrant as of, and for, the periods presented in this quarterly report;

4.  The  registrant's  other  certifying  officers  and  I are  responsible  for
establishing and maintaining  disclosure  controls and procedures (as defined in
Exchange Act Rules 13a-14 and 15d-14) for the registrant and have:

a) designed  such  disclosure  controls and  procedures  to ensure that material
information relating to the registrant, including its consolidated subsidiaries,
is made known to us by others  within those  entities,  particularly  during the
period in which this quarterly report is being prepared;

b) evaluated  the  effectiveness  of the  registrant's  disclosure  controls and
procedures  as of a date  within  90  days  prior  to the  filing  date  of this
quarterly report (the "Evaluation Date"); and

c) presented in this quarterly report our conclusions about the effectiveness of
the  disclosure  controls  and  procedures  based  on our  evaluation  as of the
Evaluation Date;

5. The registrant's other certifying officers and I have disclosed, based on our
most recent evaluation,  to the registrant's auditors and the audit committee of
registrant's   board  of  directors  (or  persons   performing   the  equivalent
functions):

a) all significant  deficiencies in the design or operation of internal controls
which  could  adversely  affect the  registrant's  ability  to record,  process,
summarize and report  financial data and have  identified  for the  registrant's
auditors any material weaknesses in internal controls; and

b) any  fraud,  whether  or not  material,  that  involves  management  or other
employees who have a significant role in the registrant's internal controls; and

6. The  registrant's  other  certifying  officers  and I have  indicated in this
quarterly  report  whether or not there  were  significant  changes in  internal
controls or in other factors that could  significantly  affect internal controls
subsequent to the date of our most recent  evaluation,  including any corrective
actions with regard to significant deficiencies and material weaknesses.

Date:  November 12, 2003                 s/Cecil A. Brooks
                                         ---------------------------------------
                                         Cecil A. Brooks, Chairman of the Board,
                                         President, Chief Executive Officer

                                                                               7

<PAGE>

I, John T. Ottinger, certify that:

1. I  have  reviewed  this  quarterly  report  on  Form  10-QSB  of  Cornerstone
Ministries Investments, Inc.;

2. Based on my  knowledge,  this  quarterly  report  does not contain any untrue
statement of a material fact or omit to state a material fact  necessary to make
the statements made, in light of the  circumstances  under which such statements
were made, not  misleading  with respect to the period covered by this quarterly
report;

3.  Based  on my  knowledge,  the  financial  statements,  and  other  financial
information  included in this quarterly  report,  fairly present in all material
respects the financial  condition,  results of operations  and cash flows of the
registrant as of, and for, the periods presented in this quarterly report;

4.  The  registrant's  other  certifying  officers  and  I are  responsible  for
establishing and maintaining  disclosure  controls and procedures (as defined in
Exchange Act Rules 13a-14 and 15d-14) for the registrant and have:

a) designed  such  disclosure  controls and  procedures  to ensure that material
information relating to the registrant, including its consolidated subsidiaries,
is made known to us by others  within those  entities,  particularly  during the
period in which this quarterly report is being prepared;

b) evaluated  the  effectiveness  of the  registrant's  disclosure  controls and
procedures  as of a date  within  90  days  prior  to the  filing  date  of this
quarterly report (the "Evaluation Date"); and

c) presented in this quarterly report our conclusions about the effectiveness of
the  disclosure  controls  and  procedures  based  on our  evaluation  as of the
Evaluation Date;

5. The registrant's other certifying officers and I have disclosed, based on our
most recent evaluation,  to the registrant's auditors and the audit committee of
registrant's   board  of  directors  (or  persons   performing   the  equivalent
functions):

a) all significant  deficiencies in the design or operation of internal controls
which  could  adversely  affect the  registrant's  ability  to record,  process,
summarize and report  financial data and have  identified  for the  registrant's
auditors any material weaknesses in internal controls; and

b) any  fraud,  whether  or not  material,  that  involves  management  or other
employees who have a significant role in the registrant's internal controls; and

6. The  registrant's  other  certifying  officers  and I have  indicated in this
quarterly  report  whether or not there  were  significant  changes in  internal
controls or in other factors that could  significantly  affect internal controls
subsequent to the date of our most recent  evaluation,  including any corrective
actions with regard to significant deficiencies and material weaknesses.

Date:  November 12, 2003                 s/John T. Ottinger
                                         ---------------------------------------
                                         John T. Ottinger, Vice President,
                                         Chief Operating Officer and
                                         Chief Financial Officer

                                                                               8