----

----

| FORM      10-KSB/A (Mark      One)                                                                                                                                                                   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| þ ANNUAL REPORT PURSUANT TO      SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF      1934                                                                                                     |
| For      the fiscal year ended      December 31, 2007                                                                                                                                                     |
|                                                                                                                                                                                                      |
|                                                                                                                                                                                                      |
| o TRANSITION REPORT PURSUANT TO      SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF      1934                                                                                                      |
| For the transition period      from __________      to __________                      |

| CALIFORNIA(State      or other jurisdiction of incorporation      or organization) | 33-0489154(I.R.S.      Employer Identification No.) |
|-----------------------------------------------------------------------------------------|-----------------------------------------------------|

----

----

|                                                         | Page   |
|--------------------------------------------------------------|--------|
|                                                         |   |
| Report      of Independent Registered Public Accounting Firm | F-1    |
|                                                         |   |
| Financial      Statements                                    |   |
|                                                         |   |
| Consolidated      Balance Sheets                             | F-2    |
| Consolidated      Statements of Operations                   | F-3    |
| Consolidated      Statements of Stockholders' Equity         | F-4    |
| Consolidated      Statements of Cash Flows                   | F-5    |
| Notes      to Consolidated Financial Statements              | F6-26  |

----

----

| Assets                                                          |   | 2007   |        |   | 2006   |   |
|-----------------------------------------------------------------|--------|--------|-------------|--------|--------|--------|
|                                                            |   |   |        |   |   |   |
| Cash                                                            |   | $      | 2,243,113   |   |   | $      | 7,632,759 |   |
| Loans,      net of allowance for loan losses                    |   |   |        |   |   |   |   |   |
| of      $126,000 in 2007 and 2006                               |   |   | 116,309,744 |   |   |   | 59,713,567 |   |
| Accrued      interest receivable                                |   |   | 517,748     |   |   |   | 275,106 |   |
| Property      and equipment, net                                |   |   | 23,925      |   |   |   | 9,450 |   |
| Debt      issuance costs                                        |   |   | 1,340,189   |   |   |   | -- |   |
| Other      assets                                               |   |   | 649,551     |   |   |   | 17,825 |   |
| Total      assets                                               |   | $      | 121,084,270 |   |   | $      | 67,648,707 |   |
|                                                            |   |   |        |   |   |   |   |   |
| Liabilities      and Stockholders' Equity                       |   |   |        |   |   |   |   |   |
|                                                            |   |   |        |   |   |   |   |   |
| Liabilities                                                     |   |   |        |   |   |   |   |   |
| Line      of credit                                             |   | $      | 46,300,392  |   |   | $      | -- |   |
| Notes      payable                                              |   |   | 62,056,809  |   |   |   | 54,330,889 |   |
| Accrued      interest payable                                   |   |   | 179,431     |   |   |   | -- |   |
| Other      liabilities                                          |   |   | 638,066     |   |   |   | 257,309 |   |
|                                                            |   |   |        |   |   |   |   |   |
| Total      liabilities                                          |   |   | 109,174,698 |   |   |   | 54,588,198 |   |
|                                                            |   |   |        |   |   |   |   |   |
| Commitments and      contingencies (Note 6)                     |   |   |        |   |   |   |   |   |
|                                                            |   |   |        |   |   |   |   |   |
| Stockholders'      equity                                       |   |   |        |   |   |   |   |   |
| Class      I preferred stock, 100,000 shares authorized,        |   |   |        |   |   |   |   |   |
| 88,      922 and 90,022 shares issued and outstanding           |   |   |        |   |   |   |   |   |
| at      December 31, 2007 and 2006, respectively; no par        |   |   |        |   |   |   |   |   |
| value      (liquidation preference value of $100 per share)     |   |   | 8,892,200   |   |   |   | 9,002,200 |   |
| Class      II preferred stock, 75,000 shares authorized, 19,000 |   |   |        |   |   |   |   |   |
| shares      issued and outstanding at December 31, 2007 and     |   |   |        |   |   |   |   |   |
| 2006,      respectively; no par value (liquidation preference   |   |   |        |   |   |   |   |   |
| value      of $100 per share)                                   |   |   | 1,900,000   |   |   |   | 1,900,000 |   |
| Common      stock, 10,000,000 shares authorized; 146,522        |   |   |        |   |   |   |   |   |
| shares      issued and outstanding at December 31, 2007         |   |   |        |   |   |   |   |   |
| and      2006, respectively; no par value                       |   |   | 1,809,572   |   |   |   | 1,809,572 |   |
| Retained      earnings (accumulated deficit)                    |   |   | (579,317    | )      |   |   | 348,737 |   |
| Accumulated      other comprehensive loss                       |   |   | (112,883    | )      |   |   | -- |   |
|                                                            |   |   |        |   |   |   |   |   |
| Total      stockholders' equity                                 |   |   | 11,909,572  |   |   |   | 13,060,509 |   |
|                                                            |   |   |        |   |   |   |   |   |
| Total      liabilities and stockholders' equity                 |   | $      | 121,084,270 |   |   | $      | 67,648,707 |   |

----

|                                                           |   |   |      |   |   |   |
|----------------------------------------------------------------|--------|--------|-----------|--------|--------|--------|
|                                                           |   | 2007   |      |   | 2006   |   |
| Interest      income                                           |   |   |      |   |   |   |
| Loans                                                          |   | $      | 4,639,127 |   |   | $      | 3,041,895 |   |
| Interest-bearing      accounts                                 |   |   | 293,326   |   |   |   | 90,544 |   |
|                                                           |   |   |      |   |   |   |   |   |
| Total      interest income                                     |   |   | 4,932,453 |   |   |   | 3,132,439 |   |
|                                                           |   |   |      |   |   |   |   |   |
| Interest      expense                                          |   |   |      |   |   |   |   |   |
| Line      of credit                                            |   |   | 376,877   |   |   |   | -- |   |
| Notes      payable                                             |   |   | 3,223,875 |   |   |   | 2,385,178 |   |
|                                                           |   |   |      |   |   |   |   |   |
| Total      Interest expense                                    |   |   | 3,600,752 |   |   |   | 2,385,178 |   |
|                                                           |   |   |      |   |   |   |   |   |
| Net      interest income                                       |   |   | 1,331,701 |   |   |   | 747,261 |   |
|                                                           |   |   |      |   |   |   |   |   |
| Provision      for loan losses                                 |   |   | --        |   |   |   | -- |   |
|                                                           |   |   |      |   |   |   |   |   |
| Net      interest income after provision for loan losses       |   |   | 1,331,701 |   |   |   | 747,261 |   |
|                                                           |   |   |      |   |   |   |   |   |
| Non-interest      income                                       |   |   |      |   |   |   |   |   |
| Consulting      fees                                           |   |   | --        |   |   |   | 135,350 |   |
| Loan      commitment fees                                      |   |   | --        |   |   |   | 97,198 |   |
| Other                                                          |   |   | 8,336     |   |   |   | 896 |   |
|                                                           |   |   |      |   |   |   |   |   |
| Total      non-interest income                                 |   |   | 8,336     |   |   |   | 233,445 |   |
|                                                           |   |   |      |   |   |   |   |   |
| Non-interest      expenses                                     |   |   |      |   |   |   |   |   |
| Salaries      and benefits                                     |   |   | 885,696   |   |   |   | 411,475 |   |
| Marketing      and promotion                                   |   |   | 75,928    |   |   |   | 47,205 |   |
| Office      occupancy                                          |   |   | 24,141    |   |   |   | 15,993 |   |
| Office      operations and other expenses                      |   |   | 495,096   |   |   |   | 180,511 |   |
| Legal      and accounting                                      |   |   | 313,375   |   |   |   | 158,979 |   |
| Ministry      support                                          |   |   | 2,000     |   |   |   | 17,500 |   |
|                                                           |   |   |      |   |   |   |   |   |
| Total      non-interest expenses                               |   |   | 1,796,236 |   |   |   | 831,662 |   |
|                                                           |   |   |      |   |   |   |   |   |
| Income      (loss) before provision (benefit) for income taxes |   |   | (456,199  | )      |   |   | 149,044 |   |
|                                                           |   |   |      |   |   |   |   |   |
| Provision      for (benefit from) income taxes                 |   |   | (157,217  | )      |   |   | 50,738 |   |
|                                                           |   |   |      |   |   |   |   |   |
| Net      income (loss)                                         |   | $      | (298,982  | )      |   | $      | 98,306 |   |

----

|                                                                                    | Preferred      Stock |    | Common      Stock |   |           |   |    |   |         |      |
|-----------------------------------------------------------------------------------------|----------------------|---------|-------------------|--------|----------------|--------|---------|--------|--------------|-----------|
|                                                                                    |                 |    |              |   |           |   |    |   | Retained     |      | Accumulated |   |   |   |
|                                                                                    |                 |    |              |   |           |   |    |   | Earnings     |      | Other |   |   |   |
|                                                                                    | Number      of       |    |              |   | Number      of |   |    |   | (Accumulated |      | Comprehensive |   |   |   |
|                                                                                    | Shares               |    | Amount            |   | Shares         |   | Amount  |   | Deficit)     |      | Loss |   | Total |   |
|                                                                                    |                 |    |              |   |           |   |    |   |         |      |   |   |   |   |
| Balance,      December 31, 2005                                                         |                 | 550     |              | $      | 550,000        |   | 125,000 |   | $            | 1,250,000 |   | $ | 388,767 |   | $ | -- |   | $ | 2,188,767 |   |
|        Issuance of Class I preferred    stock                       |                 | 90,022  |              |   | 9,002,200      |   | --      |   |         | --        |   |   | -- |   |   | -- |   |   | 9,002,200 |   |
|        Issuance of Class II preferred           stock          |                 | 19,000  |              |   | 1,900,000      |   | --      |   |         | --        |   |   | -- |   |   | -- |   |   | 1,900,000 |   |
|        Exchange of Series A           preferred stock for |                 |    |              |   |           |   |    |   |         |      |   |   |   |   |   |   |   |   |   |   |
|          Class I preferred                                               |                 |    |              |   |           |   |    |   |         |      |   |   |   |   |   |   |   |   |   |   |
|          stock in exchange for                                           |                 |    |              |   |           |   |    |   |         |      |   |   |   |   |   |   |   |   |   |   |
|          Series A preferred stock                                        |                 | (550    | )                 |   | (550,000       | )      | --      |   |         | --        |   |   | -- |   |   | -- |   |   | (550,000 | ) |
|        Issuance of common stock                                                    |                 | --      |              |   | --             |   | 21,522  |   |         | 559,572   |   |   | -- |   |   | -- |   |   | 559,572 |   |
|        Net income                                                                  |                 | --      |              |   | --             |   | --      |   |         | --        |   |   | 98,306 |   |   | -- |   |   |  98,306 |   |
|        Dividends on preferred stock                                                |                 | --      |              |   | --             |   | --      |   |         | --        |   |   | (138,336 | ) |   | -- |   |   | (138,336 | ) |
|                                                                                    |                 |    |              |   |           |   |    |   |         |      |   |   |   |   |   |   |   |   |   |   |
| Balance,      December 31, 2006                                                         |                 | 109,022 |              |   | 10,902,200     |   | 146,522 |   |         | 1,809,572 |   |   | 348,737 |   |   | -- |   |   | 13,060,509 |   |
|        Purchase of Class I                                                         |                 |    |              |   |           |   |    |   |         |      |   |   |   |   |   |   |   |   |   |   |
|          preferred stock                                                 |                 | (1,100  | )                 |   | (110,000       | )      | --      |   |         | --        |   |   | -- |   |   | -- |   |   | (110,000 | ) |
|        Net loss                                                                    |                 | --      |              |   | --             |   | --      |   |         | --        |   |   | (298,982 | ) |   | -- |   |   | (298,982 | ) |
|        Change in value of interest          rate swap               |                 | --      |              |   | --             |   | --      |   |         | --        |   |   | -- |   |   | (112,883 | ) |   |  (112,883 | )  |
|        Dividends on preferred stock                                                |                 | --      |              |   | --             |   | --      |   |         | --        |   |   | (629,072 | ) |   | -- |   |   | (629,072 | ) |
|                                                                                    |                 |    |              |   |           |   |    |   |         |      |   |   |   |   |   |   |   |   |   |   |
| Balance,      December 31, 2007                                                         |                 | 107,922 |              | $      | 10,792,200     |   | 146,522 |   | $            | 1,809,572 |   | $ | (579,317 | ) | $ | (112,883 | ) | $ | 11,909,572 |   |

----

|                                                        |   |   |        |   |   |   |
|-------------------------------------------------------------|--------|--------|-------------|--------|--------|--------|
|                                                        |   | 2007   |        |   | 2006   |   |
| Cash      Flows from Operating Activities                   |   |   |        |   |   |   |
| Net      income (loss)                                      |   | $      | (298,982    | )      |   | $      | 98,306 |   |
| Adjustments      to reconcile net income (loss)             |   |   |        |   |   |   |   |   |
| to      net cash provided by (used in) operating activities |   |   |        |   |   |   |   |   |
| Depreciation                                                |   |   | 2,424       |   |   |   | 590 |   |
| Amortization      of deferred loan (fees) costs             |   |   | (99,920     | )      |   |   | 19,976 |   |
| Amortization      of debt issuance costs                    |   |   | 73,124      |   |   |   | -- |   |
| Net      change in:                                         |   |   |        |   |   |   |   |   |
| Deferred      income tax benefit                            |   |   | (85,952     | )      |   |   | -- |   |
| Interest      receivable                                    |   |   | (242,642    | )      |   |   | (111,600 | ) |
| Other      assets                                           |   |   | (545,774    | )      |   |   | 66,167 |   |
| Other      liabilities                                      |   |   | 447,305     |   |   |   | 130,047 |   |
|                                                        |   |   |        |   |   |   |   |   |
| Net      cash provided by (used in) operating activities    |   |   | (750,417    | )      |   |   | 203,486 |   |
|                                                        |   |   |        |   |   |   |   |   |
| Cash      Flows from Investing Activities                   |   |   |        |   |   |   |   |   |
| Loan      purchases and originations                        |   |   | (85,766,102 | )      |   |   | (46,258,925 | ) |
| Loan      sales                                             |   |   | 24,606,452  |   |   |   | 31,893,028 |   |
| Loan      principal collections, net                        |   |   | 4,663,393   |   |   |   | 563,532 |   |
| Purchase      of property and equipment                     |   |   | (16,899     | )      |   |   | -- |   |
|                                                        |   |   |        |   |   |   |   |   |
| Net      cash used in investing activities                  |   |   | (56,513,156 | )      |   |   | (13,802,365 | ) |
|                                                        |   |   |        |   |   |   |   |   |
| Cash      Flows from Financing Activities                   |   |   |        |   |   |   |   |   |
| Net      borrowing on line of credit                        |   |   | 46,300,392  |   |   |   | -- |   |
| Net      change in notes payable                            |   |   | 7,725,920   |   |   |   | 7,412,926 |   |
| Debt      issuance costs                                    |   |   | (1,413,313  | )      |   |   | -- |   |
| Net      proceeds from issuance of preferred stock          |   |   | --          |   |   |   | 10,352,200 |   |
| Purchase      of preferred stock                            |   |   | (110,000    | )      |   |   | -- |   |
| Proceeds      from issuance of common stock                 |   |   | --          |   |   |   | 559,572 |   |
| Dividends      paid on preferred stock                      |   |   | (629,072    | )      |   |   | (138,336 | ) |
|                                                        |   |   |        |   |   |   |   |   |
| Net      cash provided by financing activities              |   |   | 51,873,927  |   |   |   | 18,186,362 |   |
|                                                        |   |   |        |   |   |   |   |   |
| Net      increase (decrease) in cash                        |   |   | (5,389,646  | )      |   |   | 4,587,483 |   |
|                                                        |   |   |        |   |   |   |   |   |
| Cash      at beginning of year                              |   |   | 7,632,759   |   |   |   | 3,045,276 |   |
|                                                        |   |   |        |   |   |   |   |   |
| Cash      at end of year                                    |   | $      | 2,243,113   |   |   | $      | 7,632,759 |   |
|                                                        |   |   |        |   |   |   |   |   |
| Supplemental      Disclosures of Cash Flow Information      |   |   |        |   |   |   |   |   |
| Interest      paid                                          |   | $      | 3,840,049   |   |   | $      | 2,385,178 |   |
| Income      taxes paid                                      |   |   | 56,113      |   |   |   | -- |   |
| Change      in value of interest rate swap                  |   |   | 112,883     |   |   |   | -- |   |

----

| Note      1. | Summary      of Significant Accounting Policies |
|--------------|-------------------------------------------------|

|   | Nature      of Business |
|--------|-------------------------|

|   | Ministry      Partners Investment Corporation (the Company) was incorporated in      California in 1991 and is owned by a group of 11 federal and state      chartered credit unions, none of which owns a majority of the voting      common stock of the Company. The offices of the Company are located in      Brea, California.  The Company provides funds for real property      secured loans for the benefit of evangelical churches and church      organizations.  The Company funds its operations primarily      through the sale of debt and equity securities and through other      borrowings.  Most of the Company's loans are purchased from its      largest shareholder, the Evangelical Christian Credit Union (ECCU), of      Brea, California. The Company also originates church and ministry loans      independently.  In addition, in 2007 the Company created a      wholly owned special purpose subsidiary, Ministry Partners Funding, LLC      (MPF), which purchases and warehouses church and ministry mortgages from      ECCU and from the Company for later securitization.  MPF has not      yet securitized any of its loans.  Nearly all of the business      and operations of the Company currently are conducted in California and      its mortgage loan investments are concentrated in    California. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | In      2006, the Company issued 21,522 shares of common stock to third party      credit unions.  In addition, ECCU sold 63,000 shares of its      common shares held in the Company to third party credit      unions.  As a result, ECCU’s ownership of the voting stock of      the Company decreased from 100% to42.13%. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Principles      of Consolidation |
|--------|----------------------------------|

|   | The      consolidated financial statements include the accounts of Ministry      Partners Investment Corporation and its wholly-owned subsidiary, Ministry      Partners Funding, LLC.  All significant inter-company balances      and transactions have been eliminated in  consolidation. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Use      of Estimates |
|--------|-----------------------|

|   | The      preparation of financial statements in conformity with accounting      principles generally accepted in the United States of America requires      management to make estimates and assumptions that affect the reported      amounts of assets and liabilities and disclosures of contingent assets and      liabilities as of the date of the financial statements and the reported      amounts of revenues and expenses during the reporting period. Actual      results could differ from those estimates. The allowance for loan losses      represents a significant estimate bymanagement. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Cash |
|--------|------|

|   | The      Company maintains deposit accounts with other institutions with balances      that may exceed federally insured limits. The Company has not experienced      any losses in such accounts. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Note      1. | Summary      of Significant Accounting  Policies  (Continued) |
|--------------|-------------------------------------------------------------------------|

|   | Cash  (continued) |
|--------|-----------------------------|

|   | The      Company is required to maintain certain balances on hand in conjunction      with its borrowing arrangement as disclosed in Note  4. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------|

|   | Loans |
|--------|-------|

|   | Loans      that management has the intent and ability to hold for the foreseeable      future are reported at their outstanding unpaid principal balance less an      allowance for loan losses, and adjusted for deferred loan fees and costs.      Interest income on loans is accrued on a daily basis using the interest      method. Loan origination fees and costs are deferred and recognized as an      adjustment to the related loan yield using the straight-line method, which      results in an amortization that is materially the same as the interest      method. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The      accrual of interest is discontinued at the time the loan is 90 days past      due unless the credit is well-secured and in the process of collection.      Past due status is based on contractual terms of the loan. In all cases,      loans are placed on nonaccrual or charged off at an earlier date if      collection of principal or interest is considered  doubtful. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | All      interest accrued but not collected for loans that are placed on nonaccrual      or charged off are reversed against interest income. The interest on these      loans is accounted for on the cash basis or cost-recovery method, until      qualifying for return to accrual. Loans are returned to accrual status      when all the principal and interest amounts contractually due are brought      current and future payments are reasonably  assured. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Allowance      for Loan Losses |
|--------|--------------------------------|

|   | The      allowance for loan losses is established as losses are estimated to have      occurred through a provision for loan losses charged to earnings. Loan      losses are charged against the allowance when management believes the      uncollectibility of a loan balance is confirmed. Subsequent recoveries, if      any, are credited to the allowance. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The      allowance for loan losses is evaluated on a regular basis by management      and is based upon management’s periodic review of the collectibility of      the loans in light of historical experience, the nature and volume of the      loan portfolio, adverse situations that may affect the borrower’s ability      to repay, estimated value of any underlying collateral and prevailing      economic conditions. This evaluation is inherently subjective as it      requires estimates that are susceptible to significant revision as more      information becomes available. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The      allowance for loan losses is increased through a provision for loan losses      charged to earnings. Loan losses, if any, are charged against the      allowance when management believes the collectibility of loan principal      becomes unlikely.  Subsequent recoveries, if any, are credited to the      allowance. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | Allowance      for LoanLosses  (continued) |
|--------|------------------------------------------------------|

|   | The      allowance for loan losses is evaluated on an ongoing basis by management      and is based upon management's periodic review of the collectibility of      the loans in light of historical experience, the nature and volume of the      loan portfolio, adverse situations that may affect a borrower's ability to      repay, changes in the estimated value of any underlying collateral and      prevailing economic conditions. This evaluation is inherently subjective,      as it requires estimates that are susceptible to significant revision as      conditions change. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The      allowance consists of general and unallocated components. The general      component covers non-classified loans and is based on historical loss      experience adjusted for qualitative factors. An unallocated component is      maintained to cover uncertainties that could affect management's estimate      of probable losses. The unallocated component of the allowance reflects      the margin of imprecision inherent in the underlying assumptions used in      the methodologies for estimating general losses in the      portfolio.  A specific component of the allowance would also be      considered in the event a loan becomesimpaired. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | A      loan is considered impaired when, based on current information and events,      it is probable that the Company will be unable to collect the scheduled      payments of principal and interest when due according to the contractual      terms of the loan agreement.  Factors considered by management in      determining impairment include payment status, collateral value, and the      probability of collecting future scheduled principal and interest payments      when due.  Loans that experience insignificant payment delays and      payment shortfalls generally are not classified as impaired.       Management determines the significance of payment delays and payment      shortfalls on a case-by-case basis, taking into consideration all of the      circumstances surrounding the loan and the borrower, including the length      of the delay, the reasons for the delay, the borrower's prior payment      record, and the amount of the shortfall in relation to the principal and      interest owed.  Impairment is measured on a loan by loan basis by      either the present value of expected future cash flows discounted at the      loan's effective interest rate, the obtainable market price, or the fair      value of the collateral if the loan is collateral    dependent. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Interest      Rate Swap Agreements |
|--------|------------------------------------|

|   | For      asset/liability management purposes, the Company uses interest rate swap      agreements to hedge various exposures or to modify interest rate      characteristics of various balance sheet accounts.  Interest      rate swaps are contracts in which a series of interest rate flows are      exchanged over a prescribed period.  The notional amount on      which the interest payments are based is not exchanged.  These      swap agreements are derivative instruments that convert a portion of the      Company’s variable-rate debt to a fixed rate (cash flow hedge), and      convert a portion of its fixed-rate loans to a variable rate (fair value      hedge). |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | Interest      Rate SwapAgreements  (continued) |
|--------|----------------------------------------------------------|

|   | The      effective portion of the gain or loss on a derivative designated and      qualifying as a cash flow hedging instrument is initially reported as a      component of other comprehensive income and subsequently reclassified into      earnings in the same period or periods during which the hedged transaction      affects earnings.  The ineffective portion of the gain or loss      on the derivative instrument, if any, is recognized currently in      earnings.  |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | For      cash flow hedges, the net settlement (upon close-out or termination) that      offsets changes in the value of the hedged debt is deferred and amortized      into net interest income over the life of the hedged debt.  The      portion, if any, of the net settlement amount that did not offset changes      in the value of the hedged asset or liability is recognized immediately in      non-interest income. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Interest      rate derivative financial instruments receive hedge accounting treatment      only if they are designated as a hedge and are expected to be, and are,      effective in substantially reducing interest rate risk arising from the      assets and liabilities identified as exposing the Company to      risk.  Those derivative financial instruments that do not meet      specified hedging criteria would be recorded at fair value with changes in      fair value recorded in income.  If periodic assessment indicates      derivatives no longer provide an effective hedge, the derivative contracts      would be closed out and settled, or classified as a trading      activity.  |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Cash      flows resulting from the derivative financial instruments that are      accounted for as hedges of assets and liabilities are classified in the      cash flow statement in the same category as the cash flows of the items      being hedged. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Transfers      of Financial Assets |
|--------|------------------------------------|

|   | Transfers      of financial assets are accounted for as sales when control over the      assets has been surrendered.  Control over transferred assets is      deemed to be surrendered when (1) the assets have been isolated from the      Company, (2) the transferee obtains the right (free of conditions that      constrain it from taking advantage of that right) to pledge or exchange      the transferred assets, and (3) the Company does not maintain effective      control over the transferred assets through an agreement to repurchase      them before their maturity. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Property      and Equipment |
|--------|-----------------------------|

|   | Furniture,      fixtures, and equipment are stated at cost, less accumulated depreciation.      Depreciation is computed on a straight-line basis over the estimated      useful lives of the assets, which range from three to five      years. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | Debt      Issuance Costs |
|--------|--------------------------|

|   | Debt      issuance costs are related to the lines of credit as well as to a public      offering of unsecured notes, and are amortized into interest expense over      the contractual terms of the debt. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Income      Taxes |
|--------|-------------------|

|   | The      provision for income taxes is recorded under the liability method.      Deferred tax assets and liabilities are reflected at currently enacted      income tax rates applicable to the period in which the deferred tax assets      and liabilities are expected to be realized or settled. As changes in tax      laws or rates are enacted, deferred tax assets and liabilities are      adjusted through the provision for income taxes. Deferred taxes result      from temporary differences in the recognition of certain income and      expense amounts between income tax and financial statement purposes. A      valuation allowance is provided to the extent that future realization of      deferred tax assets is uncertain. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Employee      Benefit Plan |
|--------|----------------------------|

|   | Contributions      to the qualified employee retirement plan are recorded as compensation      cost in the period incurred. |
|--------|-----------------------------------------------------------------------------------------------------------------------------|

|   | Reclassifications |
|--------|-------------------|

|   | Certain      account reclassifications have been made to the financial statements of      the prior year in order to conform to classifications used in the current      year with no impact on stockholders’ equity or results of      operations. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Recent      Accounting Pronouncements |
|--------|---------------------------------------|

|   | In      June 2006, the Financial Accounting Standards Board (FASB) issued FASB      Interpretation No. 48 Accounting for Uncertainty in      Income Taxes (an interpretation of SFAS Statement No. 109). FIN 48      is effective for fiscal years beginning after December 15, 2006. FIN 48      was issued to clarify the accounting for uncertainty in income taxes      recognized in the consolidated financial statements by prescribing a      recognition threshold and measurement attribute for the financial      statement recognition and measurement of a tax position taken or expected      to be taken in a tax return. The adoption of FIN 48 in 2007 did not have      an impact on the Company’s consolidated financial    statements. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | Recent      AccountingPronouncements  (continued) |
|--------|-------------------------------------------------------------|

|   | In      September 2006, the FASB issued Statements of Financial Accounting      Standards (SFAS) No. 157, Fair Value      Measurements, which defines fair value, establishes a framework for      measuring fair value, and expands disclosures about fair value      measurements. SFAS No. 157 does not require any new fair value      measurements, but applies under other existing accounting pronouncements      that require or permit fair value measurements. SFAS No. 157 emphasizes      that fair value is a market-based measurement, not an entity-specific      measurement and, therefore, should be determined based on the assumptions      that market participants would use in pricing that asset or liability.      SFAS No. 157 also establishes a fair value hierarchy that distinguishes      between market participant assumptions developed based on market data      obtained from independent sources and the Company’s own assumptions about      market participant assumptions based on the best information available.      SFAS No. 157 is effective for the Company on January 1, 2008. The Company      does not expect that adoption of SFAS No. 157 will have a significant      impact on its consolidated financialstatements. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | In      February 2007, the FASB issued SFAS No. 159, The Fair Value Option for      Financial Assets and Financial Liabilities – including an amendment of      FASB Statement No. 115 which is effective for financial statements      issued for fiscal years beginning after November 15, 2007. SFAS No. 159      permits, but does not require, entities to measure certain financial      instruments and other items at fair value. SFAS No. 159 is intended to      encourage the expanded use of fair value measurement. At this time,      management does not intend to elect the fair value option for any      financial instruments. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Note      2. | Related      Party Transactions |
|--------------|---------------------------------|

|   | The      Company maintains most of its cash funds at ECCU. Total funds held with      ECCU were $1.5 million and $1.9 million at December 31, 2007 and 2006,      respectively. Interest earned on these funds totaled approximately $89,000      and $24,000 for the years ended December 31, 2007 and 2006,      respectively. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The      Company leases physical facilities and purchases other services from ECCU      pursuant to a written lease and services agreement. Charges of      approximately $177,000 and $152,000 for the years ended December 31, 2007      and 2006, respectively, were made for these services and are included in      Office Operations expense. The method used to arrive at the periodic      charge is based on the fair market value of services provided. Management      believes that such method isreasonable. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | During      the years ended December 31, 2007 and 2006, the Company leased its      employees from ECCU. The Company paid $861,736 and $404,302 for the      employee costs during the years ended December 31, 2007 and 2006,      respectively. Effective as of January 1, 2008, the Company entered into a      staffing agreement with Administaff Companies II, L.P. pursuant to a      client services agreement. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Note      2. | Related      PartyTransactions  (Continued) |
|--------------|-------------------------------------------------------|

|   | On      August 7, 2007, the Company formed MPF, as a wholly-owned      subsidiary.  As a limited purpose entity, MPF was formed to      purchase church mortgage loans that will be originated by the Company and      ECCU, and serviced by ECCU.  MPF was formed to serve as a      financing vehicle that will purchase qualifying church mortgage loans      pending the consummation of a securitization transaction that will enable      such loans to be accumulated and sold to investors through the purchase of      an interest in a securitiesinstrument. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | In      accordance with a mortgage loan purchase arrangement between the Company      and ECCU, the Company purchased $73.3 million and $46.3 million of loans      from ECCU during the years ended December 31, 2007 and 2006,      respectively.  This includes $40.8 million purchased by MPF      during the year ended December 31, 2007.  The Company recognized      $4.1 million and $3.0 million of interest income on loans purchased from      ECCU during the years ended December 31, 2007 and 2006,      respectively.  ECCU retains the servicing rights on loans it      sells to the Company.  The Company paid loan servicing fees to      ECCU of $61,406 in the year ended December 31, 2007.  In      addition, as part of the Company's liquidity management practices, the      Company from time to time has asked ECCU to repurchase some of the      Company's mortgage loan investments in order to provide short-term      liquidity. Although ECCU has from time to time accommodated the Company in      responding to such requests, ECCU is under no obligation to continue this      practice. During the years ended December 31, 2007 and 2006, loans in the      amount of $24.6 million and $31.9 million, respectively, were sold back to      ECCU. No gain or loss was incurred on these  sales. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | On      July 11, 2007, the Company’s Board of Directors approved by written      consent an agreement pursuant to which the Company purchased a residence      owned by the Company’s President, and his wife for $450,000 plus      reasonable closing costs incurred in completing the purchase      transaction.  The Board of Directors approved this purchase      transaction as part of a relocation incentive arrangement.  On      August 7, 2007, the Company completed the purchase of this property, and      in January of 2008, the Company sold this property. The Company realized a      loss of approximately $105,755 from this  transaction. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | A      summary of loans as of December 31follows: |
|--------|---------------------------------------------------|

|                                   |   | 2007   |        |   | 2006   |   |
|----------------------------------------|--------|--------|-------------|--------|--------|--------|
| Loans      to evangelical churches and |   |   |        |   |   |   |
| related      organizations:            |   |   |        |   |   |   |
| Real      estate secured               |   | $      | 111,389,713 |   |   | $      | 51,635,210 |   |
| Construction                           |   |   | 5,174,164   |   |   |   | 8,309,651 |   |
|                                   |   |   |        |   |   |   |   |   |
| Total      Loans                       |   |   | 116,563,877 |   |   |   | 59,944,861 |   |
|                                   |   |   |        |   |   |   |   |   |
| Deferred      loan fees, net           |   |   | (128,133    | )      |   |   | (105,294 | ) |
| Allowance      for loan losses         |   |   | (126,000    | )      |   |   | (126,000 | ) |
|                                   |   |   |        |   |   |   |   |   |
| Loans,      net                        |   | $      | 116,309,744 |   |   | $      | 59,713,567 |   |

|   | The      loans fall into three categories:  loans purchased in whole from      ECCU, loan participations purchased from ECCU, and loans originated      directly by the Company.  All of the loans are made to various      evangelical churches and related organizations, primarily to finance      facilities. Loan maturities extend through 2012. The loans earn interest      at rates between 5% and 8.75%, with a weighted average yield of 6.50% as      of December 31, 2007. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The      Company had an allowance for loan losses of $126,000 as of December 31,      2007 and 2006. The Company has no experience of loan loss and, as of      December 31, 2007 and 2006, none of the loans are 90 days past due or      impaired. Management believes all of the loans are adequately secured and      the allowance is reasonable. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Note      4. | Lines      of Credit |
|--------------|----------------------|

|   | Until      October 12, 2007, the Company maintained a $5,000,000 unsecured line of      credit with ECCU.  The line of credit expired on October 12,      2007, and the Company did not seek to renew it. There were no outstanding      borrowings on this line as of December 31, 2007 and 2006. The interest      rate on this line varied based on changes in an independent index which      was the Prime Rate published by The Wall Street Journal.  No      interest was incurred in 2007 or 2006.  The line of credit was      subordinate to Alpha Class notespayable. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Note      4. | Lines      of Credit  (Continued) |
|--------------|---------------------------------------------|

|   | On      October 12, 2007, the Company entered into two note and security      agreements with Members United Corporate Federal Credit Union (Members      United). Members United is a federally chartered credit union located in      Warrenville, Illinois, which provides financial services to member credit      unions. One note and security agreement is for a secured $10 million      revolving line of credit, which is referred to as the “$10 Million LOC,”      and the other is for a secured $50 million revolving line of credit, which      is referred to as the “$50 Million CUSO Line.” Both credit facilities are      secured by certain mortgage loans. The Company intends to use the $10      Million LOC for short-term liquidity purposes and the $50 Million CUSO      Line for mortgage loan investments. The Company may use proceeds from      either loan to service other debtsecurities. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Funds      drawn on the $10 Million LOC constitute a loan payable one year from the      date of funding. This loan bears interest payable monthly at the floating      rate set by Members United. This credit facility expires on September 1,      2008. The $10 Million LOC was not drawn upon in  2007. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The      Company may draw funds on the $50 Million CUSO Line at any time during the      one year draw period. This loan requires interest-only payments during the      draw period at the fixed offered rate set by Members United, or at a      variable rate indexed to the Federal Funds rate at the Company’s option.      After the one-year draw period expires, the then outstanding balance on      the line will be paid monthly over a 5-year period based on a 30-year      amortization at a rate of interest to be set by Members United at the time      the loan is converted. The Company may borrow, repay and re-borrow under      the line up to the expiration date of September 1, 2012. As of December      31, 2007 the balance on the $50 Million CUSO Line was $4,716,455, and the      rate on the line was 4.87%. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Both      credit facilities are recourse obligations secured by designated mortgage      loans. The Company must maintain collateral in the form of eligible      mortgage loans, as defined in the line of credit agreements, of at least      111% of the outstanding balance on the lines, after the initial pledge of      $5 million of mortgage loans. As of December 31, 2007, approximately $5.2      million of loans were pledged as collateral for the $50 Million CUSO Line.      The Company has the right to substitute or replace one or more of the      mortgage loans serving ascollateral. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Both      credit facilities contain a number of borrower covenants, including      affirmative covenants to maintain the collateral free of liens and      encumbrances, to timely pay the credit facilities and its other debt, and      to provide Members United with current financial statements and      reports. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Note      4. | Lines      of Credit  (Continued) |
|--------------|---------------------------------------------|

| Note      5. | Interest      Rate Swap Agreements |
|--------------|------------------------------------|

|   | The      Company has stand-alone derivative financial instruments in the form of      interest rate swap agreements, which derive their value from underlying      interest rates.  These transactions involve both credit and      market risk.  The notional amounts are amounts on which      calculations, payments, and the value of the derivative are      based.  Notional amounts do not represent direct credit      exposures.  Direct credit exposure is limited to the net      difference between the calculated amounts to be received and paid, if      any.  Such differences, which represent the fair value of the      derivative instruments, are reflected on the Company’s balance sheet as      other assets and other liabilities. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The      Company is exposed to credit-related losses in the event of nonperformance      by the counterparties to these agreements.  The Company controls      the credit risk of its financial contracts through credit approvals,      limits and monitoring procedures, and does not expect any counterparties      to fail their obligations.  The Company deals only with primary      dealers. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Derivative      instruments are generally either negotiated over-the-counter (OTC)      contracts or standardized contracts executed on a recognized      exchange.  Negotiated OTC derivative contracts are generally      entered into between two counterparties that negotiate specific agreement      terms, including the underlying instrument, amount, exercise prices and      maturity. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Note      5. | Interest      Rate SwapAgreements  (Continued) |
|--------------|----------------------------------------------------------|

|   | Risk      Management Policies – HedgingInstruments |
|--------|----------------------------------------------------------|

|   | The      primary focus of the Company’s asset/liability management program is to      monitor the sensitivity of the Company’s net portfolio value and net      income under varying interest rate scenarios to take steps to control its      risks.  On a quarterly basis, the Company simulates the net      portfolio value and net income expected to be earned over a twelve-month      period following the date of simulation.  The simulation is      based on a projection of market interest rates at varying levels and      estimates the impact of such market rates on the levels of      interest-earning assets and interest-bearing liabilities during the      measurement period.  Based upon the outcome of the simulation      analysis, the Company considers the use of derivatives as a means of      reducing the volatility of net portfolio value and projected net income      within certain ranges of projected changes in interest      rates.  The Company evaluates the effectiveness of entering into      any derivative instrument agreement by measuring the cost of such an      agreement in relation to the reduction in net portfolio value and net      income volatility within an assumed range of interest    rates. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Interest      Rate Risk Management – Cash Flow Hedging  Instruments |
|--------|---------------------------------------------------------------------------|

|   | The      Company uses long-term variable rate debt as a source of funds for use in      the Company’s lending and investment activities and other general business      purposes.  These debt obligations expose the Company to      variability in interest payments due to changes in interest      rates.  If interest rates increase, interest expense      increases.  Conversely, if interest rates decrease, interest      expense decreases.  Management believes it is prudent to limit      the variability of a portion of its interest payments and, therefore,      generally hedges a portion of its variable-rate interest      payments.  To meet this objective, management enters into      interest rate swap agreements whereby the Company receives variable      interest rate payments and makes fixed interest rate payments during the      contract period. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Notional      amount                                 |   | $      | 41,504,655 |   |
|------------------------------------------------------|--------|--------|------------|--------|
| Weighted      average pay rate                       |   |   | 4.46       | %      |
| Weighted      average receive rate                   |   |   | 4.93       | %      |
| Weighted      average maturity in years              |   |   | .83        |   |
| Unrealized      loss relating to interest rate swaps |   | $      | (112,883   | )      |

|   | These      agreements provide for the Company to receive payments at a variable rate      determined by a specified index (one month London Bank Inter-Bank Offer      Rate (“LIBOR”)) in exchange for making payments at a fixed rate. This rate      was 4.996% at December 31, 2007. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Note      5. | Interest      Rate SwapAgreements  (Continued) |
|--------------|----------------------------------------------------------|

|   | At      December 31, 2007, the unrealized loss relating to interest rate swaps was      recorded in other liabilities.  Changes in the fair value of      interest rate swaps designed as hedging instruments of the variability of      cash flows associated with long-term debt are reported in other      comprehensive income.  These amounts subsequently are      reclassified into interest expense as a yield adjustment in the same      period in which the related interest on the long-term debt affects      earnings.  The net amount of other comprehensive income      reclassified into interest expense during the year ended December 31, 2007      was $5,920. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Risk      management results for the year ended December 31, 2007 related to the      balance sheet hedging of long-term debt indicate that the hedges were 100%      effective and that there was no component of the derivative instruments’      gain or loss which was excluded from the assessment of hedge      effectiveness. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | As      of December 31, 2007, approximately $112,883 of losses reported in other      comprehensive income related to the interest rate swaps were expected to      be reclassified into interest expense as a yield adjustment of the hedged      borrowings during the year ending December 31,  2008. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Note      6. | Commitments      and Contingencies |
|--------------|------------------------------------|

|   | Unfunded      Commitments |
|--------|---------------------------|

|   | Unfunded      commitments are commitments for possible future extensions of credit to      existing customers of the Company or ECCU. Unfunded commitments totaled      $8.9 million at December 30, 2007 and $13 million at December 31,      2006. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Standby      Letters of Credit |
|--------|--------------------------------|

|   | Standby      letters of credit, as discussed below, are conditional lending commitments      issued by the Company to guarantee the performance of a customer to a      third party. Standby letters of credit are primarily issued to support      borrowing arrangements. The risk involved in issuing letters of credit is      essentially the same as that involved in extending loans to customers. The      letters of credit, if drawn upon, will be secured by first lien deeds of      trust on real property. The liability related to the letters of credit at      December 31, 2007 and 2006 was $0 and $45,484,    respectively. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The      Company entered into a Non-recourse Letter of Credit Participation      Agreement with ECCU on September 8, 2005 which expired on September 7,      2007.  The Company was committed to 27.72% of a $65.6 million letter      of credit for a Christian university in Riverside, California.  This      commitment was fulfilled as of June 28, 2007 and the Company no longer has      an outstanding commitment. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Note      7. | Notes      Payable |
|--------------|--------------------|

|   | A      summary of notes payable at December 31 is as  follows: |
|--------|----------------------------------------------------------------|

|                        |   |   |       |   |   |   |       | Weighted           |   |
|-----------------------------|--------|--------|------------|--------|--------|--------|------------|--------------------|--------|
|                        |   |   |       |   |   |   |       | Average            |   |
|                        |   |        |       |   |   |   |       | Interest      Rate |   |
|                        |   |        |       |   |   |   |       | During             |   |
|                        |   | 2007   |       |   | 2006   |   |       | 2007               |   |
|                        |   |   |       |   |   |   |       |               |   |
| Public      offering notes  |   | $      | 33,807,202 |   |   | $      | 21,078,656 |               |   |   | 5.46 | % |
| Special      offering notes |   |   | 27,730,069 |   |   |   | 32,829,251 |               |   |   | 5.52 | % |
| International      notes    |   |   | 519,538    |   |   |   | 422,982    |               |   |   | 5.65 | % |
|                        |   |   |       |   |   |   |       |               |   |   |   |   |
|                        |   | $      | 62,056,809 |   |   | $      | 54,330,889 |               |   |   |   |   |

|   | The      following are maturities of notes payable for each of the next five      years: |
|--------|------------------------------------------------------------------------------------------|

| Year      Ending December 31, |   |   |       |
|-------------------------------|--------|--------|------------|
|                          |   |   |       |
| 2008                          |   | $      | 44,028,640 |   |
| 2009                          |   |   | 8,118,329  |   |
| 2010                          |   |   | 5,137,392  |   |
| 2011                          |   |   | 2,391,639  |   |
| 2012                          |   |   | 2,380,809  |   |
|                          |   |   |       |   |
|                          |   | $      | 62,056,809 |   |
|                          |   |   |       |   |

|   | Notes      are payable to investors who have purchased the securities, including      individuals, churches, and Christian ministries, many of whom are members      of ECCU. All notes payable are unsecured. Notes pay interest at stated      spreads over an index rate that is adjusted every month. Interest can be      reinvested or paid at the investor's option. The Company may repurchase      all or a portion of notes at any time at its sole discretion, and may      allow investors to redeem their notes prior to maturity at its sole      discretion. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The      Public Offering Notes contain covenants pertaining to a minimum fixed      charge coverage ratio, maintenance of a tangible net worth, limitation on      issuance of additional notes, and limitations on certain      transactions. The Public Offering Note offering requires that the      Company maintain a minimum tangible adjusted net worth, as defined in the      Loan and Standby Trust Agreement, of not less than $4,000,000. The      Company is not permitted to issue any Public Offering Notes if, after      giving effect to such issuance, the Public Offering Notes then outstanding      would have an aggregate unpaid balance exceeding $100,000,000. The      Company's other indebtedness, as defined in the Loan and Standby      Agreement, is not to exceed $10,000,000 outstanding at any time while any      Public Offering Note is outstanding. The Company was in compliance with      these covenants as of December 31,2007. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Note      7. | Notes      Payable  (Continued) |
|--------------|-------------------------------------------|

|   | Historically,      most notes payable have been renewed by investors upon maturity. The      Company utilizes cash reserves, ready cash proceeds from the purchase of      new notes and the ability to draw on lines of credit to fund the      redemption of maturing notes that are not renewed by      investors. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Note      8. | Public      Offerings |
|--------------|-----------------------|

|   | In      July 2001, the Company registered with the Securities and Exchange      Commission (the “SEC”) the sale of $25.0 million of Alpha Class Notes      issued pursuant to a Loan and Standby Trust Agreement authorizing the      issuance of up to $50.0 million of such notes.  In April 2003,      the Company registered with the SEC the sale of an additional $25.0      million of Alpha Class Notes.  In April 2005, the Company      registered with the SEC the sale of up to $50.0 million of a new Alpha      Class Notes issue pursuant to a Trust Indenture authorizing the issuance      of up to $200.0 million of such notes.  In May 2007, the Company      registered with the SEC the sale of an additional $75.0 million of the new      Alpha Class Notes. At December 31, 2007 and December 31, 2006, $33.8      million and $21.1 million of these notes were outstanding,      respectively. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Note      9. | Preferred      Stock |
|--------------|----------------------|

|   | Prior      to November 16, 2006, the Company had 5,000 shares of Series A non-voting,      non-transferable cumulative preferred stock authorized and 550 such shares      outstanding. The liquidation preference of the Series A Preferred Stock      was $1,000 per share. Each share was entitled to receive a quarterly cash      dividend equal to a percentage of the liquidation preference which      percentage equals the greater of 5% per annum or 150 basis points higher      than the LIBOR for six months in effect on the last day of the calendar      quarter for which the dividend is to be  declared. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | On      November 16, 2006, the Company completed the sale of 84,522 shares of its      Class I Preferred Stock and 19,000 shares of its Class II Preferred      Stock.  All of the securities were sold for cash. In addition, 5,500      shares of the Class I Preferred Stock were issued in exchange for 550      shares of the Company's outstanding Series A Preferred Stock.  The      Company incurred no sales commissions or other underwriting      costs. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Note      9. | Preferred      Stock  (Continued) |
|--------------|---------------------------------------------|

|   | The      Class I Preferred Stock is entitled to annual cumulative dividends,      payable quarterly, equal to the liquidation preference times a dividend      rate of 190 basis points over the 1-year LIBOR rate in effect on the last      day of the calendar month in which the dividend is declared.  The      Class I Preferred Stock has a liquidation preference of $100 per share;      has no other voting rights, except as required under California law; and      is subject to redemption for an amount equal to the liquidation preference      of each share, plus any accrued and unpaid dividends on such shares, in      whole or in part, at the Company's election after December 31, 2007. The      resale of our common stock and preferred stock is subject to the Company's      first right of refusal to purchase shares proposed to be      transferred.  During 2007, the Company purchased 1,100 shares of its      Class I Preferred stock from a shareholder, resulting in 88,922 shares of      that class of stock outstanding at December 31,  2007. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The      Class II Preferred Stock has right preferences and privileges identical to      the Class I Preferred Stock, except it is entitled to dividends equal to      the liquidation preference of $100 per share times a dividend rate of one      percent (1%) per annum, and the holders of the Class I Preferred Stock do      not have the right to appoint directors upon the Company's failure to pay      dividends. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Note      10. | Income      Taxes |
|---------------|-------------------|

|   | The      components of the provision for income taxes (benefits) at December 31 are      as follows: |
|--------|------------------------------------------------------------------------------------------------------|

|                                      |   |   |     |   |   |   |
|-------------------------------------------|--------|--------|----------|--------|--------|--------|
|                                      |   | 2007   |     |   | 2006   |   |
| Current:                                  |   |   |     |   |   |   |
| Federal                                   |   | $      | --       |   |   | $      | 38,620 |   |
| State                                     |   |   | 800      |   |   |   | 14,655 |   |
| Federal      tax carryback                |   |   | (72,065  | )      |   |   | -- |   |
|                                      |   |   |     |   |   |   |   |   |
|                                      |   |   | (71,265  | )      |   |   | 53,275 |   |
| Deferred:                                 |   |   |     |   |   |   |   |   |
| Federal                                   |   |   | (80,929  | )      |   |   | (4,395 | ) |
| State                                     |   |   | (53,952  | )      |   |   | (355 | ) |
| Change      in valuation allowance        |   |   | 48,929   |   |   |   | (6,577 | ) |
|                                      |   |   |     |   |   |   |   |   |
|                                      |   |   | (85,952  | )      |   |   | (2,537 | ) |
|                                      |   |   |     |   |   |   |   |   |
| Provision      for income taxes (benefit) |   | $      | (157,217 | )      |   | $      | 50,738 |   |

----

| Note      10. | Income      Taxes  (Continued) |
|---------------|------------------------------------------|

|   | The      tax effects of the temporary differences in income and expense items that      give rise to deferred taxes (benefits) at December 31 are as      follows: |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                 |   | 2007   |     |   | 2006   |   |
|------------------------------------------------------|--------|--------|----------|--------|--------|--------|
| Deferred      tax assets:                            |   |   |     |   |   |   |
| Allowance      for loan losses                       |   | $      | 51,855   |   |   | $      | 45,278 |   |
| Net      operating loss carryforward                 |   |   | 129,671  |   |   |   | -- |   |
| Contribution      carryforward due to tax limitation |   |   | 28,961   |   |   |   | 25,449 |   |
| Interest      rate swap                              |   |   | 46,451   |   |   |   | -- |   |
| Other                                                |   |   | 272      |   |   |   | 4,907 |   |
|                                                 |   |   |     |   |   |   |   |   |
|                                                 |   |   | 257,210  |   |   |   | 75,634 |   |
| Valuation      allowance                             |   |   | (140,658 | )      |   |   | (45,278 | ) |
|                                                 |   |   |     |   |   |   |   |   |
|                                                 |   |   | 116,552  |   |   |   | 30,356 |   |
| Deferred      tax liabilities:                       |   |   |     |   |   |   |   |   |
| Depreciation                                         |   |   | (745     | )      |   |   | (501 | ) |
|                                                 |   |   |     |   |   |   |   |   |
| Net      deferred tax asset                          |   | $      | 115,807  |   |   | $      | 29,855 |   |

|   | The      reason for the differences between the statutory federal income tax rate      and the effective tax rates are summarized as  follows: |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------|

|                                         |   | 2007   |   |   | 2006   |   |
|----------------------------------------------|--------|--------|--------|--------|--------|--------|
|                                         |   |   |   |   |   |   |
| Statutory      tax rate                      |   |   | 34.0   | %      |   |   | 27.8 | % |
| Increase      (decrease) resulting from:     |   |   |   |   |   |   |   |   |
| State      taxes, net of federal tax benefit |   |   | 7.1    |   |   |   | 7.8 |   |
| Valuation      allowance                     |   |   | (6.8   | )      |   |   | (4.4 | ) |
| Other,      net                              |   |   | 0.2    |   |   |   | 2.8 |   |
|                                         |   |   |   |   |   |   |   |   |
| Effective      tax rate                      |   |   | 34.5   | %      |   |   | 34.0 | % |

| Note      11. | Retirement      Plans |
|---------------|-----------------------|

|   | Employees      of the Company participate in ECCU's defined contribution plan that      includes two components: a 401(k) plan and a profit sharing plan. In      addition, until December 31, 2007, certain officers of the Company      participated in a Long Term Incentive program through the leased employee      arrangement with ECCU.  Effective January 1, 2008, the Company      terminated its employee leasing arrangement with ECCU and the Company’s      officers no longer participate in ECCU’s defined contribution plan and      incentive program.  Employee benefits related to the long term      incentive program totaled $80,672 for the year ended December 31,      2007.  No benefits were recorded for the year ended December 31,      2006. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Note      11. | Retirement      Plans  (Continued) |
|---------------|----------------------------------------------|

|   | 401(k) |
|--------|--------|

|   | Employees      who are at least 21 years of age are eligible to participate in the 401(k)      plan upon the hire date. No minimum service is required and the minimum      age is 21. Each employee may elect voluntary contributions not to exceed      60% of salary, subject to certain limits based on Federal tax law. The      plan has a matching program, the percent of which is annually determined      by the Board of Directors. Matching contributions for the plan years ended      December 31, 2007 and 2006 were $18,470 and $4,574,      respectively. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Profit      Sharing |
|--------|---------------------|

|   | The      profit sharing plan is for all employees who, at the end of the calendar      year, are at least 21 years old, still employed, and have at least 1,000      hours of service during the plan year. The amount annually contributed on      behalf of each qualified employee is determined by the Board of Directors,      and is calculated as a percentage of the eligible employee's annual      earnings. Plan forfeitures are used to reduce the Company's annual      contribution. Contributions for the plan years ended December 31, 2007 and      2006 were $23,960 and $11,985,respectively. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Note      12. | Fair      Value of Financial Instruments |
|---------------|------------------------------------------|

|   | SFAS      No. 107, Disclosures      about Fair Value of Financial Instruments, requires disclosure of      fair value information about financial instruments, whether or not      recognized on the balance sheet. In cases where quoted market prices are      not available, fair values are based on estimates using present value or      other valuation techniques. Those techniques are significantly affected by      the assumptions used, including the discount rate and estimates of future      cash flows. In that regard, the derived fair value estimates cannot be      substantiated by comparison to independent markets and, in many cases,      could not be realized in immediate settlement of the instruments. SFAS No.      107 excludes certain financial instruments and all non-financial      instruments from its disclosure requirements. Accordingly, the aggregate      fair value amounts presented do not represent the underlying value of the      Company. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The      following methods and assumptions were used to estimate the fair value of      each class of financial instruments for which it is practicable to      estimate fair value. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Cash,      Accrued Interest Receivable, Accrued Interest Payable, Dividends      Payable |
|--------|------------------------------------------------------------------------------------------|

|   | The      carrying amounts approximate fairvalue. |
|--------|--------------------------------------------------|

----

| Note      12. | Fair      Value of Financial  Instruments  (Continued) |
|---------------|------------------------------------------------------------------|

|   | Loans |
|--------|-------|

|   | Fair      value is estimated by discounting the future cash flows using the current      average rates at which similar loans would be made to borrowers with      similar credit ratings and for the same remaining    maturities. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Notes      Payable |
|--------|--------------------|

|   | The      fair value of fixed maturity notes is estimated by discounting the future      cash flows using the rates currently offered for notes payable of similar      remaining maturities. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Lines      of Credit |
|--------|----------------------|

|   | The      fair values of the Company’s lines of credit are estimated using      discounted cash flows analyses based on the Company’s current incremental      borrowing rates for similar types of borrowing    arrangements. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Derivative      Financial Instruments |
|--------|---------------------------------------|

|   | The      fair value for the Company's loan commitments is based on fees currently      charged to enter into similar agreements, taking into account the      remaining terms of the agreements and the counterparties' credit      standing. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Note      12. | Fair      Value of Financial  Instruments  (Continued) |
|---------------|------------------------------------------------------------------|

|                                       |   | 2007     |        |   | 2006   |   |
|--------------------------------------------|--------|----------|-------------|--------|--------|--------|
|                                       |   | Carrying |        |   | Fair   |   |   | Carrying |   |   | Fair |   |
|                                       |   | Amount   |        |   | Value  |   |   | Amount |   |   | Value |   |
| Financial      assets:                     |   |     |        |   |   |   |   |   |   |   |   |   |
| Cash                                       |   | $        | 2,243,113   |   |   | $      | 2,243,113 |   |   | $ | 7,632,759 |   |   | $ | 7,632,759 |   |
| Loans                                      |   |     | 116,309,744 |   |   |   | 117,905,176 |   |   |   | 59,713,567 |   |   |   | 61,227,882 |   |
| Accrued      interest receivable           |   |     | 517,748     |   |   |   | 517,748 |   |   |   | 275,106 |   |   |   | 275,106 |   |
| Financial      liabilities:                |   |     |        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Notes      payable                         |   |     | 62,056,809  |   |   |   | 62,054,945 |   |   |   | 54,330,889 |   |   |   | 54,171,110 |   |
| Lines      of credit                       |   |     | 46,300,392  |   |   |   | 46,300,392 |   |   |   | -- |   |   |   | -- |   |
| Accrued      interest payable              |   |     | 179,431     |   |   |   | 179,431 |   |   |   | -- |   |   |   | -- |   |
| Dividends      payable                     |   |     | 143,639     |   |   |   | 143,639 |   |   |   | 97,997 |   |   |   | 97,997 |   |
| On-balance      sheet derivative financial |   |     |        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| instruments:                               |   |     |        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest      rate swap agreements         |   |     | 112,883     |   |   |   | 112,883 |   |   |   | -- |   |   |   | -- |   |
| Off-balance      sheet credit related to   |   |     |        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| financial      instruments:                |   |     |        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commitment      to extend credit           |   |     | --          |   |   |   | -- |   |   |   | -- |   |   |   | 45,484 |   |

|   | Financial      information pertaining only to Ministry Partners Investment Corporation is      as follows: |
|--------|------------------------------------------------------------------------------------------------------------|

| Balance      Sheets                          |   | December 31, |       |
|----------------------------------------------|--------|--------------|------------|
|                                         |   | 2007         |       |   | 2006 |   |
| Assets                                       |   |         |       |   |   |   |
| Cash                                         |   | $            | 1,575,219  |   |   | $ | 7,632,759 |   |
| Loans,      net of allowance for loan losses |   |         | 54,409,944 |   |   |   | 59,713,567 |   |
| Accrued      interest receivable             |   |         | 294,412    |   |   |   | 275,106 |   |
| Property      and equipment, net             |   |         | 23,925     |   |   |   | 9,450 |   |
| Investment      in MPF                       |   |         | 21,595,581 |   |   |   | -- |   |
| Debt      issuance costs                     |   |         | 666,706    |   |   |   | -- |   |
| Other      assets                            |   |         | 614,830    |   |   |   | 17,825 |   |
|                                         |   |         |       |   |   |   |   |   |
| Total      assets                            |   | $            | 79,180,617 |   |   | $ | 67,648,707 |   |
|                                         |   |         |       |   |   |   |   |   |

----

| Balance      Sheets  (continued)           |   | December 31,             |       |
|------------------------------------------------------|--------|--------------------------|------------|
|                                                 |   | 2007                     |       |   | 2006 |   |
| Liabilities      and stockholders’ equity      |   |                     |       |   |   |   |
| Lines      of credit                                 |   | $                        | 4,716,455  |   |   | $ | -- |   |
| Notes      payable                                   |   |                     | 62,056,809 |   |   |   | 54,330,889 |   |
| Accrued      interest payable                        |   |                     | 14,922     |   |   |   | -- |   |
| Other      liabilities                               |   |                     | 482,859    |   |   |   | 257,309 |   |
|                                                 |   |                     |       |   |   |   |   |   |
| Total      liabilities                               |   |                     | 67,271,045 |   |   |   | 54,588,198 |   |
|                                                 |   |                     |       |   |   |   |   |   |
| Stockholders'      equity                            |   |                     | 11,909,572 |   |   |   | 13,060,509 |   |
|                                                 |   |                     |       |   |   |   |   |   |
| Total      liabilities and stockholders' equity      |   | $                        | 79,180,617 |   |   | $ | 67,648,707 |   |
|                                                 |   |                     |       |   |   |   |   |   |
|                                                 |   |                     |       |   |   |   |   |   |
| Statements      of Income                            |   | Years Ended December 31, |       |
|                                                 |   | 2007                     |       |   | 2006 |   |
| Income:                                              |   |                     |       |   |   |   |   |   |
| Interest      income                                 |   | $                        | 4,407,830  |   |   | $ | 3,132,439 |   |
| Other      income                                    |   |                     | 8,190      |   |   |   | 233,445 |   |
|                                                 |   |                     |       |   |   |   |   |   |
| Total      income                                    |   |                     | 4,416,020  |   |   |   | 3,365,884 |   |
|                                                 |   |                     |       |   |   |   |   |   |
| Interest      expense:                               |   |                     |       |   |   |   |   |   |
| Interest      on lines of credit                     |   |                     | 48,275     |   |   |   | -- |   |
| Interest      on notes payable                       |   |                     | 3,223,875  |   |   |   | 2,385,178 |   |
|                                                 |   |                     |       |   |   |   |   |   |
| Total      interest expense                          |   |                     | 3,272,150  |   |   |   | 2,385,178 |   |
|                                                 |   |                     |       |   |   |   |   |   |
| Other      operating expenses                        |   |                     | 1,725,268  |   |   |   | 831,662 |   |
|                                                 |   |                     |       |   |   |   |   |   |
| Income      (loss) before provision for income taxes |   |                     | (581,398   | ) |   |   | 149,044 |   |
|                                                 |   |                     |       |   |   |   |   |   |
| Provision      for (benefit from) income taxes       |   |                     | (208,736   | ) |   |   | 50,738 |   |
|                                                 |   |                     |       |   |   |   |   |   |
|                                                 |   |                     | (372,662   | ) |   |   | 98,306 |   |
|                                                 |   |                     |       |   |   |   |   |   |
| Equity      in undistributed net income of MPF       |   |                     | 73,680     |   |   |   | -- |   |
|                                                 |   |                     |       |   |   |   |   |   |
| Net      income (loss)                               |   | $                        | (298,982   | ) |   | $ | 98,306 |   |

----

| Statements      of Cash Flows                                |   | Years Ended December 31, |        |
|--------------------------------------------------------------|--------|--------------------------|-------------|
|                                                         |   | 2007                     |        |   | 2006 |   |
| Cash      Flows from Operating Activities                    |   |                     |        |   |   |   |
| Net      income (loss)                                       |   | $                        | (298,982    | ) |   | $ | 98,306 |   |
| Adjustments      to reconcile net income (loss)              |   |                     |        |   |   |   |   |   |
| to      net cash provided by (used in) operating activities: |   |                     |        |   |   |   |   |   |
| Equity      in undistributed net income of MPF               |   |                     | (73,680     | ) |   |   | -- |   |
| Depreciation                                                 |   |                     | 2,424       |   |   |   | 590 |   |
| Amortization      of deferred loan (fees) costs              |   |                     | (99,920     | ) |   |   | 19,976 |   |
| Amortization      of debt issuance costs                     |   |                     | 32,757      |   |   |   | -- |   |
| Net      change in:                                          |   |                     |        |   |   |   |   |   |
| Interest      receivable                                     |   |                     | (19,306     | ) |   |   | (111,600 | ) |
| Other      assets                                            |   |                     | (597,005    | ) |   |   | 66,167 |   |
| Other      liabilities                                       |   |                     | 240,472     |   |   |   | 130,047 |   |
|                                                         |   |                     |        |   |   |   |   |   |
| Net      cash provided by (used in) operating activities     |   |                     | (813,240    | ) |   |   | 203,486 |   |
|                                                         |   |                     |        |   |   |   |   |   |
| Cash      Flows from Investing Activities                    |   |                     |        |   |   |   |   |   |
| Loan      purchases and originations                         |   |                     | (44,965,627 | ) |   |   | (46,258,925 | ) |
| Loan      sales                                              |   |                     | 24,606,452  |   |   |   | 31,893,028 |   |
| Loan      principal collections, net                         |   |                     | 4,127,934   |   |   |   | 563,532 |   |
| Purchase      of property and equipment                      |   |                     | (16,899     | ) |   |   | -- |   |
|                                                         |   |                     |        |   |   |   |   |   |
| Net      cash used in investing activities                   |   |                     | (16,248,140 | ) |   |   | (13,802,365 | ) |
|                                                         |   |                     |        |   |   |   |   |   |
| Cash      Flows from Financing Activities                    |   |                     |        |   |   |   |   |   |
| Net      borrowing on line of credit                         |   |                     | 4,716,455   |   |   |   | -- |   |
| Net      change in notes payable                             |   |                     | 7,725,920   |   |   |   | 7,412,926 |   |
| Debt      issuance costs                                     |   |                     | (699,463    | ) |   |   | -- |   |
| Net      proceeds from issuance of preferred stock           |   |                     | --          |   |   |   | 10,352,200 |   |
| Purchase      of preferred stock                             |   |                     | (110,000    | ) |   |   | -- |   |
| Proceeds      from issuance of common stock                  |   |                     | --          |   |   |   | 559,572 |   |
| Dividends      paid on preferred stock                       |   |                     | (629,072    | ) |   |   | (138,336 | ) |
|                                                         |   |                     |        |   |   |   |   |   |
| Net      cash provided by financing activities               |   |                     | 11,003,840  |   |   |   | 18,186,362 |   |
|                                                         |   |                     |        |   |   |   |   |   |
| Net      increase (decrease) in cash                         |   |                     | (6,057,540  | ) |   |   | 4,587,483 |   |
|                                                         |   |                     |        |   |   |   |   |   |
| Cash      at beginning of year                               |   |                     | 7,632,759   |   |   |   | 3,045,276 |   |
|                                                         |   |                     |        |   |   |   |   |   |
| Cash      at end of year                                     |   | $                        | 1,575,219   |   |   | $ | 7,632,759 |   |
|                                                         |   |                     |        |   |   |   |   |   |
| Supplemental      Disclosures of Cash Flow Information       |   |                     |        |   |   |   |   |   |
| Transfer      of loans to MPF                                |   | $                        | 21,659,368  |   |   | $ | -- |   |

----

|   | MINISTRY      PARTNERS INVESTMENT                               |
|--------|-----------------------------------------------------------------|
|   | CORPORATION                                                     |
|   |                                                            |
|   | By: /s/ Billy      M. Dodson                               |
|   |        Billy      M. Dodson, |
|   |        President             |

----