SECURITIES AND
EXCHANGE COMMISSION  Washington, D.C. 20549  FORM 10-KSB  (Mark One)  [ X ] ANNUAL REPORT
UNDER SECTION 13 OR 15(d) OF THE  SECURITIES EXCHANGE
ACT OF 1934  For the fiscal year
ended December 31, 2005  [  ] TRANSITION REPORT PURSUANT TO SECTION 13
OR 15(d)  OF THE SECURITIES
EXCHANGE ACT OF 1934  Commission file
number: 333-4028LA  MINISTRY PARTNERS
INVESTMENT CORPORATION  (Name of small
business issuer in its charter)  California
  33-0489154(State or other jurisdiction
  of incorporation or organization)
  (I.R.S. Employer
  Identification Number)
  955 West Imperial Highway, Brea, California,
92821  (Address of principal
executive offices) (Zip code)  (714) 671-5720  (Issuer's telephone
number)  Securities registered under Section 12(b) of the Exchange
Act:  Title of each class:  Name of each exchange on which registered:


Securities registered under Section 12(g) of the Exchange
Act:  Title of each class:  Check whether the issuer (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Exchange Act during the preceding 12
months (or for such shorter period that the registrant was required to file
such reports), and (2) has been subject to such filing requirements for the
past 90 days.  YES
  [ X ]
  NO
  [  ]
  Check if there is no disclosure of delinquent filers in
response to Item 405 of Regulation S-B is not contained in this form, and no
disclosure will be contained, to the best of the registrant's knowledge in
definitive proxy or information statements incorporated by reference in Part
III of this Form 10-KSB or any amendment to this Form 10-KSB. [ X ] Issuer's
revenues for its most recent fiscal year: $2,567,749.  State the aggregate market value of the voting and
non-voting common equity held by non-affiliates computed by reference to the
price at which the common equity was sold, or the average bid and asked price
of such common equity, as of a specified date within the past 60 days: None.  State the number of shares outstanding of each of the issuer's classes of common equity, as of the
latest practicable date:  At December 31, 2005, registrant had issued and outstanding 125,000
shares of its no par value common stock, all of which were held by Evangelical
Christian Credit Union.  No market exists
for the Common Stock.  Registrant
estimates the aggregate market value of such shares to be not greater than
$1,250,000.  DOCUMENTS INCORPORATED BY REFERENCE  If the following documents are incorporated by reference,
briefly describe them and identify the part of the Form 10-KSB (e.g., Part I,
Part II, etc.) into which the document is incorporated: (1) any annual report
to security holders; (2) any proxy or information statement; and (3) any
prospectus filed pursuant to Rule 424(b) or of the Securities Act of 1933 ("Securities Act). The list documents should be clearly
described for identification purposes (e.g., annual report to security holders
for the fiscal year ended December 24, 1990).  Transitional Small
Business Disclosure Format (check one):  YES
  [ X ]
  NO
  [   ]
  PART I


Item 1. Description
of Business  The Company:  The Company, Ministry Partners Investment Corporation, is a California corporation,
formed in October 1991. The Company was
formed by ECCU, which owns all of the Company's
outstanding common stock.  See "BUSINESS OF THE COMPANY - ECCU and Its
Relationship to the Company."  The Company is a taxable organization under
both federal and California
state law.  ECCU is a mutual benefit
corporation and is exempt from both federal and California state income taxes but is subject
to taxes on unrelated business income.  The Company was organized for the purpose of providing funds
for real property secured loans for the benefit of Evangelical churches and
church organizations through funding provided to the Company by members of and
persons associated with such churches and organizations.  In accordance with its mission, the Company
seeks to provide higher than average yields to its investors in relation to the
yields it realizes on its mortgage loan investments and its operating, general,
and administrative costs.  The Company
does not seek to maximize its profits from its lending activities.  The Company's
primary goal will be to continue to provide affordable secured loans to
Evangelical churches and church organizations on a cost effective basis both
for the Company and such borrowers.  The Company is one of the few institutions or agencies
within the western United
  States organized to assist local evangelical
Christian church congregations and organizations to provide financing for the
acquisition, development and/or renovation of churches or church-related
properties.  Historically, through the
sale of its debt securities to persons affiliated with evangelical Christian
churches and organizations, the Company has given these persons the opportunity
to jointly and indirectly provide the organizations with financing, something
they may not have been able to accomplish individually.  To date, the Company has suffered no defaults
under any of its mortgage loans nor has the Company defaulted on or been
delinquent in the payment of any interest or principal on the notes it has sold
to investors.  The Company's
investments are financed by the sale of investor notes and through ECCU's investment in the Company's common stock.  The Company's
mortgage loan investments are facilitated through a warehouse credit line from
ECCU in the amount of $5,000,000.  This
credit line, which the Company intends to maintain indefinitely, is subject to
ECCU's
standard commercial loan requirements, including blanket liens on the Company's assets.  ECCU has agreed to subordinate this loan to
the payment of its Class A-1 and Class Alpha Notes.  There is no assurance that ECCU will be able
to continue to provide this credit line to the Company in the future.  The Company currently employs two full-time persons.  ECCU provides the Company with certain
services for which ECCU charges the Company on a current basis.  Reports:


The Company is not required to and does not deliver annual
reports to its security holders.  The Company is required to file such reports with the
Securities and Exchange Commission (the "Commission") as it may be required to
file pursuant to the Exchange Act by reason of Section 15(d) thereof.  The Company is not otherwise subject to the
information requirements of the Securities Exchange Act of 1934, as amended
(the "Exchange Act"), and in accordance therewith does not otherwise file
reports, proxy statements and other information with the Commission.  Any reports, proxy statements, and other
information filed by the Company in accordance with the Exchange Act can be
inspected and copied at the public reference maintained by the Commission at
Room 1204, Judiciary Plaza, 450 Fifth Street NW, Washington, D.C. 20549 and
Suite 1400, 5670 Wilshire Boulevard, 11th Floor, Los Angeles,
California, 90036.  Copies of such
material can be obtained at prescribed rates from the public reference section
of the Commission at 450 Fifth
  Street NW, Washington, D.C. 20549.  Copies of such reports, proxy statements and
other information concerning the Company may also be obtained from the
Commission's website  Item 2. Description of Property  The Company's
business offices are located at 955
  West Imperial Highway, Brea, California 92821.  The Company's
telephone number is 800-753-6742.  The Company currently rents its offices (approximately 600
square feet) from ECCU on a month-to-month basis for $1,080.  ECCU provides the Company with certain
services and the use of certain facilities for which ECCU charges the Company
on a current basis.  Presently, the
amounts ECCU charges the Company in this regard are at the market rate for
similar services and facilities charged by unrelated persons.  Item 3. Legal Preceedings  None  Item 4. Submission of Matters to a Vote of Security Holders  None  PART II  Item 5. Market for
Registrant's Common Equity, Related Stockholder
Matters and Issuer Purchase of Equity Securities.  The Company's
common stock is not traded in any public market.


On February 25, 2002, the Company sold 200 shares of its
Series A Preferred Stock to Telesis Community
Credit Union, 9301 Winnetka Avenue, Chatsworth, CA 91311, at a cash
price of $1,000 per share.  On September
30, 2004, the Company sold 50 shares of its Series A Preferred Stock to Wescorp
Federal Credit Union, 924 Overland
  Court, San Dimas, CA 91773,
at a cash price of $1,000 per share.  Additionally, on October 25, 2004, the Company sold 50 shares of its
Series A Preferred Stock at a cash price of $1,000 per share to an individual
investor in Brea, CA.  The Company also sold 250 shares of it Series A Preferred Stock to an
individual investor in Vista, CA at a cash price or $1,000 per
share.  The Company relied upon the
exemption from Registration under Section 4(2) of the Securities Act of 1933 in
making the sales.  Item 6. Management's
Discussion and Analysis of Operations  The financial information included
herein should be read in conjunction with the Financial Statements, including
the notes thereto.  The Company's plan of business consists of the offer and sale of debt
obligations to investors on a continuous basis to provide funds for the Company's mortgage loan investments.  Management believes that its strategy for maintaining liquidity will
enable it to timely service and retire the notes regardless of the maturity mix
of the notes outstanding.  Management intends to continue the
Company's current liquidity plan which relies primarily on funds from
operations, cash reserves and borrowings under the ECCU Credit Line to pay
interest and principal on its debt securities on a timely basis.  In addition, the Company has from time to
time asked ECCU to repurchase some of the Company's mortgage loan investments in order to provide short term
liquidity, in each case ECCU has agreed to do so.  However, ECCU is under no obligation to
continue this practice.  Historically,
the Company has experienced significant rates of reinvestment or renewal by its
debt security investors upon maturity of their investments.  These sources may not continue to provide
sufficient funds from its ECCU Credit line and/or the sale or hypothecation of
its mortgage loan investments, should additional funds be necessary to repay
the Company's debt securities as they mature.  Management bases this belief on the size and
quality of the Companys mortgage loan investments, the availability of purchasers
of those assets on a timely basis and a historic price (at or near par) paid
for secured loans comparable to the Companys mortgage loan investments.  Management believes that it can
continue to achieve profitable margins between interest revenues and interest
expenses irrespective of fluctuating interest rates or inflation based on the
adjustment of interest rates the Company pays to its note investors to reflect
increases or decreases, in the blended index rate (as defined in the
prospectus).  In addition, a significant
percentage of the Company's mortgage loan investments have variable interest rates and
reflect interest rate fluctuations due to inflation or other factors over the
term of the investment.  Results of Operations  Twelve Months Ended
December 31, 2005 vs. Twelve Months Ended December 31, 2004


During the twelve months ended December 31, 2005, the
Company had net income of $19,999 as compared to net income of $58,853 for the
same twelve months ended December 31, 2004, a decrease in net income of $38,854.  Interest income, net, for the period, was $671,544,
a decrease of 14.5% from $785,788 for the twelve
months ended December 31, 2004.  The
Company's cost of
funds (i.e., interest expense) during the period increased $352,230 (or 23%) to
$1,893,205 for the twelve-month period ending December 31, 2004.  The increase is attributable to an increase
in offering rates over the same period in 2004.  At December 31, 2005, the Company had outstanding debt securities (notes
payable) of $46,917,963, up from $46,161,457 at December 31, 2004, an increase
of 1.6%.  The Company's
operating expenses for the twelve months ended December 31, 2005 increased to $632,083 from $625,636 for the same period ending
December 31, 2004, an increase of 1%.  This
is attributable to increases in Office Operations over the same period in 2004.  Liquidity and Capital
Resources  Twelve Months Ended
December 31, 2005 vs. Twelve Months Ended December 31, 2004  Net decrease in cash during the twelve months ended December
31, 2005 was $3,144,625, compared to a net increase of $4,727,102 for the
twelve months ended December 31, 2004.  This decrease of $7,871,727 was due to a decrease
in net cash provided by investing activities.  Net cash provided by operating activities totaled $50,601 for the twelve
months ended December 31, 2005, a decrease of $33,988 from $84,589 provided by
operating activities during the twelve months ended December 31, 2004.  Net cash used by investing activities totaled $3,921,724
during the twelve months ended December 31, 2005, compared to $1,157,650 provided
during the twelve months ended December 31, 2004, an increase in cash used of $5,079,374.  This difference is primarily attributable to
an increase in cash used by net loans receivable (the difference between the
purchase of loans receivable and principal payments received on loans
receivable) during the twelve months ended December 31, 2005 as compared to the
same period in 2004.  Net cash provided by financing activities totaled $726,498
for this twelve-month period in 2005, a decrease of $2,758,365 from $3,484,863
provided by financing activities during the twelve months ended December 31,
2004.  This difference is primarily
attributable to a decrease in cash provided by net borrowings on notes payable
(the difference between principal payments made on notes payable and proceeds
from borrowings on notes payable) and an increase in dividends paid on
preferred stock as compared to the same period in 2004.  At December 31, 2005, the Company's
cash, which includes cash reserves and cash available for investment in the
mortgage loans, was $3,045,276, down from $6,189,901 at December 31, 2004, a decrease
of $3,144,625.  Item 7. Financial Statements


The Balance Sheets, Statements of Income, Statements of
Stockholders' Equity
and Statements of Cash Flows for the twelve months ended December 31, 2005 and
2004 of Registrant (the "Company") are included following the Report of
Independent Registered Public Accounting Firm below.  Item 8. Changes In and Disagreements With Accountants on
Accounting and Financial Disclosure  None  PART III  Item 9. Directors, Executive Officers, Promoters and Control
Persons; Compliance With Section 16(a) of the Exchange Act set forth below are
the Directors and Executive officers of the Company:  Name
    Age
    Position(s) Held:Mark G. Holbrook
    55
    Chairman of the Board, Chief Executive OfficerStephen A. Ballas
    55
    PresidentMark A. Johnson
    47
    Vice Chairman of the Board, Chief Financial
    Officer, Treasurer, DirectorVan C. Elliott*
    69
    DirectorArthur G. Black
    66
    DirectorScott T. Vandeventer
    48
    DirectorShirley N. Bracken
    53
    DirectorKenneth Von Rohr*
    68
    Director* Denotes Independent Director  The following is a summary of the business experience of the
officers and directors of the Company during the past five years.  MARK G. HOLBROOK has served as our
chairman since our inception. Mr. Holbrook also serves as president and chief
executive officer of ECCU. He began his career with ECCU in 1975 and has served
as its president since 1984. ECCU currently has assets under management of over
$1.5 billion and more than 10,000 members in 50 states and 100 foreign
countries. Mr. Holbrook has served as Board Chairman of Christian Management
Association. He received his Bachelor of Arts degree from Biola University in
1973 and has completed post‐graduate studies at Chapman College.


STEPHEN A. BALLAS has served as our president since May 1,
2000.  Prior to joining the Company, Mr.
Ballas was employed by and/or served as a consultant to manufacturing
companies, software start-ups, and medical equipment companies.  Mr. Ballas was a partner in and President of
The Loan Connection and served as executive officer of operations of Founders
Financial and Vice President of Meracor Mortgage.  Mr. Ballas has extensive experience in real
estate development, mortgage lending and marketing, including service as
President of a mortgage origination company from 1990 to 1993.  MARK A. JOHNSON has served as chief
financial officer, treasurer, and a director since our inception. Mr. Johnson
also serves as executive vice president of ECCU, a position he has held since
June, 1993. Prior to joining ECCU, Mr. Johnson served as vice president of a
multi‐company commercial warehousing/distribution organization and for six years
served as president and chief executive officer of a subsidiary of that company.
Prior to that, Mr. Johnson served as vice president/branch manager of a Southern
California independent bank. Mr. Johnson has a Bachelor of Science degree in
Business Administration from Biola University.  VAN C. ELLIOTT has served as a
director since 1991.  He has served as director for ECCU, from April, 1991 until
the present (except from March, 1997 to March, 1998 and March, 2004 to March,
2005).  Mr. Elliott served as associate director of the Conservative Baptist
Association of southern California from 1980 to 1994 where he was responsible
for the general administrative oversight of the association's activities. Since
that time, he has been self-employed as a consultant.  He received his
Bachelor's and Master's degrees in mathematics and speech from Purdue University
and spent seven years in the computer industry.  Mr. Elliott holds a Master of
Divinity from Denver Seminary and has spent fourteen years in local church
ministries serving in the area of Christian education and administration.  He
has completed post-graduate instruction at the College for Financial Planning. 
Mr. Elliott is a member of the Financial Planning Association and holds the
professional designation of Certified Financial Planner.(R)  ARTHUR G. BLACK has served as a
director since 1997. Mr. Black is currently Director of Ministry Support for
Ambassador Advertising Agency. Prior to joining that firm in 1998, he had served
as a ministry development officer at ECCU. Mr. Black was previously executive
vice president of Truth For Life (1994‐1996), a nationally‐syndicated radio
Bible teaching ministry. He held similar positions with the Biola Hour
(1981‐1991) and Solid Rock Radio (1991‐1993), and he served as director of U.S.
broadcasting for Insight For Living from 1993 to 1994. Mr. Black has been in
Christian ministry management since 1974. Prior to that, he held several
corporate sales and marketing management positions and six years as
owner/President of two consumer product/service companies. He is a General
Partner for Rancho Sierra Acres, Christian Investors, P/L Properties and Ocean
View Investors. Mr. Black was elected to the Board of Directors to replace the
seat previously held by Paul A. Kienel.


SCOTT T. VANDEVENTER has served as a
director since 1992. Mr. Vandeventer has been employed by ECCU since 1988 and is
currently executive vice president and chief operating officer of ECCU. Prior to
that time, Mr. Vandeventer provided consulting services to ECCU and others
through AM Business Communications, Inc., a marketing communication company he
has managed since he founded the company in 1980. Mr. Vandeventer is also
currently associated with NYE Partners, a business consulting firm whose clients
may include firms doing business with us and/or ECCU. Mr. Vandeventer received
his Bachelors Degree from Biola University and has completed graduate work in
finance and marketing at California State University Fullerton School of
Business Administration.  SHIRLEY N. BRACKEN has served as a
director since June, 2003. Ms. Bracken has since 1997 owned and operated Shirley
Bracken Consulting Services, a consulting firm providing services in the areas
of communications, funding, development and marketing for non-profit
organizations, including schools. Until she resigned to start her consulting
business, Ms. Bracken worked for Carl Karcher Enterprises, Inc. of Anaheim,
California, which she first joined in 1983. At the time she left, Ms. Bracken
served as that company's Vice-President, Communications/Human Resources. Ms.
Bracken holds a BA in Sociology from California State University, Fullerton, and
has completed coursework towards an MBA at the Claremont Graduate School..  KENNETH VON ROHR has served as a
director since August, 2004. Mr. Von Rohr has been an independent consultant
since 2001, providing consultation services in construction management, space
planning and facility management. Prior to that, he served as senior director,
corporate services for World Vision, Inc. from 1973 to 2001. At the time he left
World Vision, Inc., he was responsible for the acquisition, construction and
maintenance of that organization's U.S. office properties.  Mr. Von Rohr has
served as a director of ECCU since 1984. He served in the U.S. Navy from 1959 to
1963. He holds a Bachelor of Arts degree from the University of Southern
California.  The Company has no class of equity securities registered
pursuant to Section 12 of the Exchange Act.  Item 10. Executive Compensation  Except for Mr. Ballas, none of the Company's officers or directors currently
receives compensation from the Company.  Each, however, is entitled to be reimbursed for expenses incurred in
performing duties on behalf of the Company.  The
following table sets forth certain information regarding compensation paid by
the Company for services rendered to the Company during its fiscal year ended
December 31, 2005, its fiscal year ended December 31, 2004 and its fiscal year
ended December 31, 2003 by its Chief Executive Officer, and President. Mr.
Ballas was appointed President of the Company by the Board of Directors
effective May 1, 2000.  Except for Mr. Ballas, none of the Company's executive officers (the named
Executive Officers) had total salary, plus bonus, exceeding $100,000 during
this period.  Option/Warrant Grants in Current Fiscal Year:  No options, warrants or other rights to purchase securities
of the Company have been issued.


Summary Compensation
Table Annual Compensation  Name and Principal Position
  Year Ended
  Salary(s)
  Bonus
  (2)
  Other
  Annual Compensation (3)
  All
  Other Compensation (4)Mark G. Holbrook,
  2005
  (1)
  -0-
  -0-
  -0-Chairman, Chief
  2004
  (1)
  -0-
  -0-
  -0-Executive Officer
  2003
  (1)
  -0-
  -0-
  -0-Stephen A. Ballas,
  2005
  $
  93,674
  $ 21,058
  $ 2,962
  $
  24,648President
  2004
  $
  90,204
  $
  22,385
  $
  10,476
  $
  23,9082003
  $
  86,320
  $
  20,500
  $
  4,800
  $
  10,035
  (1)
Mr. Holbrook is a full-time employee of ECCU. Since December 1, 1994, Mr. Holbrook has expended, on
the average, approximately 2% of his time as an officer and director of the
Company.  The Company reimburses ECCU for
that portion of Mr. Holbrook's
time devoted to service to the Company as an officer (but not director).  Mr. Holbrook currently devotes less than 1%
of his time serving the Company as an officer.  (2) An aggregate bonus amount of $21,058
was paid to Mr. Ballas for the Fiscal year 2005.  (3) Includes an automobile allowance
of $2,962 for the Fiscal year 2005, paid by the Company
for the benefit of Mr. Ballas.  (4) The Company contributed an aggregate amount of $9,834 for Mr. Ballas'
retirement plan, $13,658 for medical benefits and
$1,156 for life and disability insurance.  Item 11. Security Ownership of Certain Beneficial Owners and
Management  The Company has 125,000 shares of its common stock
outstanding, all of which shares are owned by Evangelical Christian Credit
Union, 955 West Imperial Highway, Brea, California 92821.  The Company has 550 shares of its preferred
stock outstanding which are owned by Telesis Community Credit Union, Wescorp
Federal Credit Union, and individual investors.  50 shares of preferred stock are owned by one of Company's
directors.  The Company does not have
outstanding options, warrants or convertible securities.  There are no other rights to purchase equity
securities other than as disclosed.


The Company has not authorized the issuance of any of its
securities under an equity compensation plan.  Item 12. Certain Relationships and Related Transactions  As described elsewhere in this Memorandum, ECCU is the
Company's sole
shareholder.  Since our inception, ECCU
has provided us with a line of credit which, under its March 28, 2005 loan
agreement, is currently a $5.0 million revolving credit line loan.  The terms and conditions of this credit line,
including the interest rates charged thereon, are the same as those charged by
ECCU to its other commercial borrower.  Pursuant to the Subordination Agreement, ECCU has agreed to subordinate
repayment of its loans to us to certain classes of our debt securities.  There is no assurance that in the future ECCU
will not modify, reduce or terminate this credit line.  The Company maintains most of its
cash at ECCU.  Total funds held with ECCU at December 31, 2005 and 2004
were $2,993,943 and $6,139,686, respectively.  Interest earned on these
funds for the years ended December 31, 2005 and 2004 were $6,210 and $3,794.  The Company purchases participation
interests in loans offered for sale by ECCU.  The outstanding balance of
loan participation interests purchased from ECCU in 2005 and 2004 were $20,831,530 and $16,637,923
at December 31, 2005 and 2004, respectively.  The Company received no fee
income from ECCU during the years ended December 31, 2005 and 2004.  The
Company recognized interest income on loans purchased from ECCU of $2,354,381
and $2,263,405 during the years ended December 31, 2005 and 2004, respectively.  The Company pays support charges for
management services and rent to ECCU on a month-to-month basis. Charges of
$98,606 and $79,586 were paid for these services for the years ended December
31, 2005 and 2004, respectively. The method used to arrive at the periodic
charge is based on the fair market value of services provided. Management
believes that such method is reasonable.  The Company reimburses ECCU for
salaries and benefits of employees. The amounts reimbursed for the years ended
December 31, 2005 and 2004 were $233,175 and $229,151, respectively.  The Company had $63,868 and $44,835
due to ECCU at December 31, 2005 and 2004, respectively.  Item 13. Exhibits and Reports on Form 8-K  Exhibits:  27 Financial Data Schedule (included)  Reports on Form 8-K:  None  Item 14. Controls and Procedures  Evaluation of
Disclosure Controls and Procedures.  Based on their evaluation as of a date within 90 days of the filing date
of this Annual report on Form 10-K, the Principal executive officer and
principal financial officer of the Company have concluded that the Company's disclosure controls and procedures
(as defined in Rules 13a-14(c) and 15(d)-14(c) under the Securities Exchange
Act of 1934) are effective to ensure that the information required to be
disclosed by the Company in reports that it files or submits under the
Securities Exchange Act of 1934 is recorded, processed, summarized and reported
within the time periods specified in SEC rules and forms.  Changes in Internal
Controls.  There were no significant
changes in the Company's
internal controls or in other factors that could significantly affect those
controls subsequent to the date of their most recent evaluation.  Item 15. (Reserved)  Item 16. Principal Accountant Fees and Services  The
aggregate fees billed by our accounting firm, Hutchinson & Bloodgood, LLP, for
the year ended December 31, 2005 were as follows:  Audit fees
      $27,000Tax fees
      5,000Review of 10QSB/ 10KSB
      7,500_______________Total
      39,500=============
  SIGNATURES  In accordance with Section 13 or 15(d) of the Exchange Act,
the Registrant caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.  Dated: March
29, 2006
MINISTRY PARTNERS INVESTMENT CORPORATION (Registrant)  /s/By:
/s/  Stephen A.
Ballas Stephen A.
Ballas, President  /s/By:
/s/  Gabriel B. Encarnacion Gabriel B. Encarnacion, Principal Financial Officer    MINISTRY PARTNERS
INVESTMENT CORPORATION  FINANCIAL REPORT  YEARS ENDED
DECEMBER 31, 2005, 2004 AND 2003   TABLE OF CONTENTS  PageINDEPENDENT AUDITORS' REPORT
    1FINANCIAL STATEMENTSBalance sheets
    2Statements of income
    3Statements of stockholders' equity
    4Statements of cash flows
    5Notes to financial statements
    6-14  INDEPENDENT
AUDITORS' REPORT   Board of Directors Ministry Partners Investment Corporation Brea, California   We have audited the
accompanying balance sheet of Ministry Partners Investment Corporation as of
December 31, 2005 and the related statements of income, stockholders' equity and
cash flows for the year then ended. These financial statements are the
responsibility of the company's management. Our responsibility is to express an
opinion on these financial statements based on our audit. The financial
statements of Ministry Partners Investment Corporation as of December 31, 2004
and 2003 were audited by other auditors whose report dated February 18, 2005
expressed an unqualified opinion on those statements.  We conducted our audit in
accordance with auditing standards of the Public Company Accounting Oversight
Board (United States). Those standards require that we plan and perform the
audit to obtain reasonable assurance about whether the financial statements are
free of material misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements. An
audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable basis
for our opinion.  In our opinion, the financial
statements referred to above present fairly, in all material respects, the
financial position of Ministry Partners Investment Corporation as of December
31, 2005 and the results of its operations and its cash flows for the year then
ended in conformity with accounting principles generally accepted in the United
States of America.     Glendale, California February 18, 2006  1   MINISTRY PARTNERS
INVESTMENT CORPORATION  BALANCE SHEETS December 31, 2005
and 2004  2005
    
    2004ASSETSCash
    $3,045,276
    
    $6,189,901Loans, net of allowance for loan losses of $126,000
    in 2005 and
    $114,000 in 2004, respectively
    45,931,178
    
    42,021,583Accrued interest receivable
    163,506
    
    125,497Property and equipment, net
    10,040
    
    13,240Other assets
    83,992
    
    67,525____________
    
    ____________Total assets
    $49,233,992
    
    $48,417,746===========
    
    ===========LIABILITIES AND STOCKHOLDERS' EQUITYLIABILITIESNotes payable
    $46,917,963
    
    $46,161,457Other liabilties
    127,262
    
    57,513____________
    
    ____________Total liabilities
    47,045,225
    
    46,218,970____________
    
    ____________COMMITMENTS AND CONTINGENCIES(Notes 5)STOCKHOLDERS' EQUITYPreferred stock, 5,000 shares authorized; 550 shares issued
    and outstanding, no par value (liquidation preference value of $1,000 per
    share)
    550,000
    
    550,000Common stock, 10,000,000 shares authorized; 125,000 shares
    issued and outstanding, no par value
    1,250,000
    
    1,250,000Retained earnings
    388,767
    
    398,776____________
    
    ____________Total stockholders' equity
    2,188,767
    
    2,198,776____________
    
    ____________Total liabilities and stockholders' equity
    $49,233,992
    
    $48,417,746===========
    
    =========== The notes to Financial
Statements are an integral part of these statements.  2   MINISTRY PARTNERS
INVESTMENT CORPORATION  STATEMENTS OF
INCOME Years Ended
December 31, 2005, 2004, and 2003  2005
    2004
    2003INTEREST INCOMEInterest on loans
    $2,537,168
    $2,322,854
    $2,372,887Interest on interest-bearing accounts
    27,581
    3,909
    3,086______________
    ______________
    ______________Total interest income
    2,564,749
    2,326,763
    2,375,973INTEREST EXPENSE
    1,893,205
    1,540,975
    1,561,492______________
    ______________
    ______________NET INTEREST INCOME
    671,544
    785,788
    814,481PROVISION FOR LOAN LOSSES
    12,000
    24,000
    30,000______________
    ______________
    ______________NET INTEREST INCOME AFTER PROVISION FOR LOAN
    LOSSES
    659,544
    761,788
    784,481______________
    ______________
    ______________NON-INTEREST INCOME
    3,000
    --
    1,516______________
    ______________
    ______________NON-INTEREST EXPENSESSalaries and benefits
    261,207
    263,611
    271,231Marketing and promotion
    94,747
    110,750
    73,417Office occupancy
    16,594
    30,232
    31,285Office operations
    171,818
    116,614
    105,732Legal and accounting
    46,717
    34,429
    50,147Ministry support
    41,000
    70,000
    12,000______________
    ______________
    ______________Total non-interest expenses
    632,083
    625,636
    543,812______________
    ______________
    ______________INCOME BEFORE PROVISION FOR INCOME TAXES
    30,461
    136,152
    242,185Provision for income taxes
    10,462
    77,299
    116,996______________
    ______________
    ______________NET INCOME
    $19,999
    $58,853
    $125,189=============
    =============
    ============= The Notes to Financial Statements are
an integral part of these financial statements.  3   MINISTRY PARTNERS INVESTMENT
CORPORATION  STATEMENT OF STOCKHOLDERS' EQUITY Years Ended December 31, 2005,
2004, and 2003  Preferred Stock
    Common Stock
    Retained Earnings
    TotalBALANCE, DECEMBER 31, 2002
    $ --
    $1,250,000
    $230,721
    $1,480,721Issuance of preferred stock
    200,000
    --
    --
    200,000Net income
    --
    --
    125,189
    125,189Dividends on preferred stock
    --
    --
    (5,973)
    (5,973)_______________
    _______________
    _______________
    _______________BALANCE, DECEMBER 31, 2003
    $200,000
    $1,250,000
    $349,937
    $1,799,937Issuance of preferred stock
    350,000
    --
    --
    350,000Net income
    --
    --
    58,853
    58,853Dividends on preferred stock
    --
    --
    (10,014)
    (10,014)_______________
    _______________
    _______________
    _______________BALANCE, DECEMBER 31, 2004
    550,000
    1,250,000
    398,776
    2,198,776Net income
    --
    --
    19,999
    19,999Dividends on preferred stock
    --
    --
    (30,008)
    (30,008)_______________
    _______________
    _______________
    _______________BALANCE, DECEMBER 31, 2005
    $550,000
    $1,250,000
    $388,767
    $2,188,767=============
    =============
    =============
    ============= The Notes to Financial Statements are
an integral part of these statements.  4   MINISTRY PARTNERS INVESTMENT
CORPORATION  STATEMENTS OF CASH FLOWS Years Ended December 31, 2005,
2004, and 2003  2005
    2004
    2003CASH FLOWS FROM OPERATING ACTIVITIESNet income
    $19,999
    $58,853
    $125,189Adjustments to reconcile net income to net cash
    provided by operating activities:Depreciation
    3,329
    615
    737Provision for loan losses
    12,000
    24,000
    30,000Change in:Interest receivable
    (38,009)
    50,475
    (27,466)Other assets
    (16,467)
    (48,792)
    10,477Other liabilities
    69,749
    (562)
    (56,033)______________
    ______________
    ______________Net cash provided by operating activities
    50,601
    84,589
    82,904______________
    ______________
    ______________CASH FLOWS FROM INVESTING ACTIVITIESNet change in loans
    (3,921,595)
    1,171,185
    (11,776,710)Purchase of property and equipment
    (129)
    (13,535)
    (603)______________
    ______________
    ______________Net cash provided in (used by) investing
    activities
    (3,921,724)
    1,157,650
    (11,777,313)______________
    ______________
    ______________CASH FLOWS FROM FINANCING ACTIVITIESAdvances made on line of credit
    5,000,000
    5,500,000
    10,519,600Amounts paid on line of credit
    (5,000,000)
    (5,500,000)
    (10,519,600)Net change in notes payable
    756,506
    3,144,877
    12,768,356Proceeds from sale of preferred stock
    --
    350,000
    200,000Dividends paid on preferred stock
    (30,008)
    (10,014)
    (5,973)______________
    ______________
    ______________Net cash provided by financing activities
    726,498
    3,484,863
    12,962,383______________
    ______________
    ______________Net increase (decrease) in cash
    (3,144,625)
    4,727,102
    1,267,974CASH AT BEGINNING OF YEAR
    $6,189,901
    $1,462,799
    $194,825______________
    ______________
    ______________CASH AT THE END OF YEAR
    $3,045,276
    $6,189,901
    $1,462,799=============
    =============
    =============SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATIONCash paid during the year:Interest
    $1,893,205
    $1,540,975
    $1,561,492Income taxes
    57,990
    117,160
    172,707 The Notes to Financial Statements are
an integral part of these statements.  5   Note 1.      Summary of
Significant Accounting Policies  Nature
of Business  Ministry Partners Investment Corporation was incorporated in
California in 1991 and is a subsidiary of Evangelical Christian Credit Union
(ECCU). The Company provides funds for real property secured loans for the
benefit of Evangelical churches and church organizations through funding
provided by members of and persons associated with such churches and
organizations. The Company's offices, as well as those of its loan origination
source, ECCU, are located in the state of California. Nearly all of the business
and operations of the Company currently are conducted in California and its
mortgage loan investments are concentrated in California.  Use of Estimates  The preparation of financial statements in conformity with
accounting principles generally accepted by 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 by management.  Loans  Loans are reported at their outstanding unpaid principal
balance less an allowance for loan losses. Interest income on loans is
recognized over the term of the loans and is generally computed using the simple
interest method.  Allowance for Loan Losses  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.  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.  6   Note 1.      Summary of
Significant Accounting Policies (Continued)  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 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.  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, included in other assets on the balance
sheets, are related to a public offering of unsecured notes, and are amortized
over a two-year period.  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. The principal items giving rise to these
differences include the allowance for the loan losses, depreciation on property
and equipment, and contributions made to charitable organizations.  7   Note 1.      Summary of
Significant Accounting Policies (Continued)  Employee Benefit Plan  Contributions to the qualifying 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.   Note 2.      Related Party Transactions  The Company maintains most of its cash at ECCU. Total funds
held with ECCU at December 31, 2005 and 2004 were $2,993,943 and $6,139,686,
respectively. Interest earned on these funds for the years ended December 31,
2005 and 2004 were $6,210 and $3,794, respectively.  The Company purchases participation interests in loans offered
for sale by ECCU. The outstanding balance of loan participation interests
purchased from ECCU in 2005 and 2004 were $20,831,530 and $16,637,923 at
December 31, 2005 and 2004, respectively. The Company received no fee income
from ECCU during the years ended December 31, 2005 and 2004, respectively. The
Company recognized interest income on loans purchased from ECCU of $2,354,381
and $2,263,405 during the years ended December 31, 2005 and 2004, respectively.  The Company pays support charges for management services and
rent to ECCU on a month-to-month basis. Charges of $98,606 and $79,586 were paid
for these services for the years ended December 31, 2005 and 2004, respectively.
The method used to arrive at the periodic charge is based on the fair market
value of services provided. Management believes that such method is reasonable.  The Company reimburses ECCU for salaries and benefits of
employees. The amounts reimbursed for the years ended December 31, 2005 and 2004
were $233,175 and $229,151, respectively.  The Company had $63,868 and $44,835 due to ECCU at December
31, 2005 and 2004, respectively.  8   Note 3.      Loans  The loans are backed by participation agreements secured by
loans originated by ECCU to various churches and related organizations to
finance facilities. Loan maturities extend through 2011. The loans earn interest
at rates between 4.5% and 9.625%, with a weighted average yield of 5.33%.  The Company had an allowance for loan losses of $126,000 and
$114,000 as of December 31, 2005 and 2004, respectively. The Company has no
experience of loan loss and, as of December 31, 2005 and 2004, none of the loans
are impaired. Management believes all of the loans are adequately secured and
the allowance is reasonable.   Note 4.      Line of Credit  The Company has an unsecured $5,000,000 line of credit with
ECCU that expires March 31, 2006. There were no outstanding borrowings as of
December 31, 2005 and 2004. The interest rate at December 31, 2005 was 7.25%.
The interest rate on this line varies based on changes in an independent index
which is the Prime Rate published by The Wall Street Journal. Interest of $2,753
and $18,169 was paid to ECCU during the years ended December 31, 2005 and 2004,
respectively. The line of credit is subordinate to Class A-1 notes payable and
Alpha Class notes payable.   Note 5.      Commitments and Contingencies  Unfunded Commitments  Unfunded commitments are commitments for possible future
extensions of credit to existing customers of ECCU. Unfunded commitments totaled
$22,209,709 at December 31, 2005.  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 recorded at
December 31, 2005 was $45,484 (See Note 6).  The Company entered into a non-recourse Letters of Credit
Participation Agreement with ECCU on April 1, 2004. The Company is committed to
30% of a $10,000,000 letters of credit for Colorado Christian University. As of
December 31, 2005, the Company had an outstanding commitment of $3,000,000. This
letters of credit expires in April 2006.  9   Note 5.      Commitments and Contingencies (Continued)  Standby Letters of Credit (Continued)  The Company entered into a non-recourse Letters of Credit
Participation Agreement with ECCU on September 8, 2005. The Company is committed
to 27.724% of a $65,623,288 letters of credit for California Baptist University.
As of December 31, 2005, the Company had an outstanding commitment of
$18,193,685. This letters of credit expires in September 2007.   Note 6.      Notes Payable  A summary of unsecured promissory notes payable at December 31 is
as follows: 2005
    2004
    Weighted Average Interest Rate During 2005Public offering notes - Class A-1
    $373,584
    $1,036,276
    6.58%Public offering notes - Alpha Class
    18,410,124
    17,606,067
    4.41%Special offering notes
    27,820,336
    27,265,109
    4.20%International notes
    313,919
    254,005
    4.56%________________
    ________________$46,917,963
    $46,161,457==============
    ==============  The following are
maturities of notes payable for each of the next five years:  Year Ending December 31,2006
    $33,580,9252007
    4,705,7892008
    2,863,2992009
    1,685,5722010
    4,082,378_______________$46,917,963=============
























Notes are payable
primarily to members of ECCU. All notes payable are unsecured. Notes pay
interest at stated spreads over a blended index rate for financial institution
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.



10





Note 6.      Notes Payable (Continued)



The Class A-1 and Alpha Class Notes contain covenants
requiring the Company to maintain a minimum adjusted net worth, a minimum fixed
change coverage ratio, and a maximum amount of other indebtedness. The Company
was in compliance with these covenants as of December 31, 2005.



Historically, most notes payable have been renewed by
investors upon maturity. For matured notes not renewed, the Company funds the
redemption by issuing new notes payable or drawing on its $5,000,000 line of
credit with ECCU. The Company has also sold loan participations back to ECCU to
fund redemptions in certain instances.





Note 7.      Public Offerings



In December 1997, the Company received approval from the SEC
to offer $25,000,000 of Class A-1 unsecured promissory notes nationwide. In
December 1997, the Company registered $15,000,000 of the Class A-1 notes. By
November 29, 1999, $12,064,110 of the $15,000,000 had been sold. The Company
deregistered the remaining $2,935,890 on November 29, 1999. On November 30,
1999, the Company registered another $12,500,000 of the Class A-1 Notes. Class
A-1 Notes totaling $373,584 and $1,036,276 were outstanding at December 31, 2005
and 2004, respectively.



In July 2001, the Company received approval from the SEC to
offer $50,000,000 of Alpha Class unsecured promissory notes nationwide. In July
2001, the Company registered $25,000,000 of the Alpha Class Notes. Alpha Class
Notes totaling $14,663,780 and $17,606,067 were outstanding at December 31, 2005
and 2004, respectively.



In April 2005, the Company received approval from the SEC to
offer $50,000,000 of Alpha Class unsecured notes payable nationwide. In April
2005, the Company registered all $50,000,000 of the Alpha Class notes. At
December 31, 2005, $3,746,344 of these notes was outstanding.





Note 8.      Preferred Stock



The Company has 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 is
$1,000 per share. Each share is 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 London Bank
Inter-Bank Offer Rate (LIBOR) for six months in effect on the last day of the
calendar quarter for which the dividend is to be declared. Under a redemption
provision, the Company, at its sole election, at any time after December 31,
2006, may redeem any shares of Series A Preferred Stock for cash, in whole or in
part, for an amount equal to the liquidation preference of each



11





Note 8.      Preferred Stock (Continued)



share of Series A Preferred Stock redeemed, plus any accrued
and unpaid dividends on such shares, whether or not declared.





Note 9.      Income Taxes



Income tax provision for the years ended December 31, 2005 and
2004 are as follows:



|                           | 2005        | 2004       
|-------------------------- | ----------- | -----------
|Current:                   |             |            
|Federal                    | $6,279      | $54,181    
|State                      | 8,303       | 23,118     
|                           | ___________ | ___________
|                           | 14,582      | 77,299     
|Deferred:                  |             |            
|Federal                    | (4,368)     | --         
|State                      | 248         | --         
|                           | ___________ | ___________
|                           | (4,120)     | --         
|                           | ___________ | ___________
|Provision for income taxes | $10,462     | $77,299    
|                           | ==========  | ========== 



As of December 31, 2005, the Company has recognized a net deferred tax asset of
$27,318. The components of the net deferred tax asset were the allowance for
loan losses of $51,855 and charitable contributions of $28,134, which were
reduced by a deferred tax liability of $816 relating to depreciation, and a
valuation allowance of $51,855. Management believes that it is more likely than
not that future operation will generate sufficient taxable income to realize the
deferred tax asset, net of the valuation allowance.



The effective tax rate for 2005 was 34.3%.  The difference between the Federal statutory rate of 15%
and the effective tax rate of 34.3%, or 19.3%, was due to state taxes, net of
Federal tax benefit of 9.1%, a disallowed loan loss provision of 7.9% and other
permanent differences of 2.4%.





Note 10.    Pension 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.



12





Note 10.    Pension Plans (Continued)



401(k)



Employees are eligible to participate in the 401(k) plan upon
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. The plan
has a matching program, the percent of which is annually determined by the Board
of Directors. Contributions for the plan years ended December 31, 2005 and 2004
were $7,828 and $8,592, 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 latest accrual period. 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, 2005 and 2004
were $8,450 and $7,150, respectively.





Note 11.    Fair Value of Financial Instruments



Statement of Financial Accounting Standards 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. Statement 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



The carrying amount is a reasonable
estimate of fair value.

13





Note 11.    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.



Off-Balance Sheet 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.



The fair value of the Company's financial instruments at
December 31, are as follows:



|                                    | 2005                          | 2004                         
|----------------------------------- | ----------------------------- | -----------------------------
|                                    | _____________________________ | _____________________________
|                                    | Carrying Amount               | Fair Value                   
|Financial assets:                   |                               |                              
|                                    |                               |                              
|Cash                                | $3,045,276                    | $3,045,276                   
|Loans                               | 45,931,178                    | 46,574,000                   
|                                    |                               |                              
|Financial liabilities:              |                               |                              
|                                    |                               |                              
|Notes payable                       | 46,917,963                    | 47,008,000                   
|                                    |                               |                              
|Unrecognized financial instruments: |                               |                              
|                                    |                               |                              
|Commitments to extend credit        | 45,484                        | 45,484