UNITED STATES SECURITIES AND EXCHANGE COMMISSION
                          WASHINGTON, D.C. 20549

                        ___________________________


[X]            ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d)
                  OF THE SECURITIES EXCHANGE ACT OF 1934
                For the fiscal year ended December 31, 2000

                                    OR

[ ]          TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
                  OF THE SECURITIES EXCHANGE ACT OF 1934
              For the transition period from        to

                      Commission file number 33-20345

                     FIRST CHURCH FINANCING CORPORATION
          (Exact name of registrant as specified in its charter)

          Wisconsin                                         39-1670677
(State or other jurisdiction of                        (I.R.S. Employer
 incorporation or organization)                         Identification No.)

             215 North Main Street, West Bend, Wisconsin 53095
          (Address of principal executive offices)     (Zip Code)

    Registrant's telephone number, including area code:  (262) 334-5521

     Securities registered pursuant to Section 12(b) of the Act:  None

     Securities registered pursuant to Section 12(g) of the Act:  None


Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 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  ( )

Indicate by check mark if disclosure of delinquent filers pursuant to Item
405 of Regulation S-K is not contained herein, and will not be contained, to
the best of registrant's knowledge, in definitive proxy or information
statements incorporated by reference in Part III of this Form 10-K or any
amendment to this Form 10-K.  (X)

Aggregate market value of voting stock held by nonaffiliates of the
registrant:  None

The number of shares outstanding of the registrant's Common stock, par value
$1.00 per share, at February 28, 2001 was 1,000 shares.

REGISTRANT MEETS THE CONDITIONS SET FORTH IN GENERAL INSTRUCTIONS I(1)(a) AND
(b) OF FORM 10-K AND IS THEREFORE FILING THIS FORM WITH THE REDUCED
DISCLOSURE FORMAT.

                DOCUMENTS INCORPORATED BY REFERENCE:  NONE<PAGE>
                                 FORM 10-K

                    FIRST CHURCH FINANCING CORPORATION

                                  PART I


Item 1  -   Business

      (Pursuant to General Instruction I)

      First Church Financing Corporation (the "Company") was incorporated in
the state of Wisconsin on May 3, 1990 and is a wholly-owned subsidiary of The
Ziegler Companies, Inc. (the "Parent").  The Company was organized to
facilitate the financing of mortgage loans and does not intend to engage in
any other business activities.  The Company began doing business on March 24,
1993, when it issued its first series of bonds.  The Parent is a Wisconsin
corporation whose shares trade on the American Stock Exchange.

      The Company was organized to securitize mortgages on church properties
for offerings to the public and is not permitted and does not intend to
engage in any business or investment activities other than those described in
its Articles of Incorporation.  Article 3 of the Issuer's Articles of
Incorporation provides that the purposes for which the Issuer is formed are
(i) to issue bonds secured by promissory notes secured by first liens on real
estate, (ii) to purchase or otherwise acquire, own, hold, transfer, convey,
assign, pledge, mortgage, finance, refinance and otherwise deal with such
mortgage collateral, (iii) to invest and reinvest the payments received with
respect to the mortgage collateral and from any disposition or liquidation of
the mortgage collateral, and (iv) to engage in any activities incidental and
necessary for such purposes.

      As of December 31, 2000, the Company has issued three series of
mortgage-backed bonds totaling $13,265,000.  One series was issued in 1993
for $4,586,000, a second series was issued in 1994 for $4,456,000, and a
third series was issued in 1995 for $4,223,000.  The mortgage-backed bonds
are collateralized by pools of loans secured by first mortgages on church
buildings and properties.  The loans and mortgages in the pools typically
originate from church financings which are too small in principal amount to
support a separate public offering of bonds.  No bonds have been issued
since 1995 nor does the Company plan to issue bonds in the future.

      B. C. Ziegler and Company, also a wholly-owned subsidiary of the
Parent, acted as underwriter of the mortgage-backed bonds, for which it
received a fee.

      Ziegler Financing Corporation, also a wholly-owned subsidiary of the
Parent, sold the mortgage loans to the Company and acts as servicer of the
mortgage loans.  The mortgage loans were purchased from Ziegler Financing
Corporation by the Company at cost less loan fees charged to the borrower.
The monthly servicing fee paid to Ziegler Financing Corporation by the
Company is equal to .0292% of the average outstanding principal balance of
the mortgage loans during the preceding month.

      There are no employees of the Company.


Item 2  -   Properties

      The Company headquarters is located in West Bend, Wisconsin, at the
offices owned by the Parent.  The Company owns no real estate and leases no
office space.

Item 3  -   Legal Proceedings

      The Company is not a party to any pending legal proceedings.

Item 4  -   Submission of Matters to a Vote of Security Holders

      (Omitted pursuant to General Instruction I)
<PAGE>
                                  PART II

Item 5  -   Market for the Company's Common Equity and Related Stockholder
            Matters

      There is no market for the common stock of the Company.  The Parent
owns 100% of the issued and outstanding shares of the Company.

Item 6  -   Selected Financial Data

      (Omitted pursuant to General Instruction I)

Item 7  -   Management's Narrative Analysis of Results of Operations

      (Pursuant to General Instruction I)

Total revenues, consisting primarily of interest income, were $436,000
in 2000 compared to $488,000 in 1999, a decrease of $52,000 or 11%.  Total
expenses, consisting primarily of interest expense, were $386,000 in 2000
compared to $442,000 in 1999, a decrease of $56,000 or 13%.  The decrease in
both total revenues and total expenses is due to a reduction in outstanding
notes and bonds, respectively.  Net income was $30,000 in 2000 compared to
$31,000 in 1999.

      Total revenues, consisting primarily of interest income, were
$488,000 in 1999 compared to $863,000 in 1998, a decrease of $375,000 or
43%.  Total expenses, consisting primarily of interest expense, were $442,000
in 1999 compared to $810,000 in 1998, a decrease of $368,000 or 45%.  The
decrease in both total revenues and total expenses is due to a reduction in
outstanding notes and bonds, respectively.  Net income was $31,000 in 1999
compared to $32,000 in 1998.

      Each series of bonds is structured in a manner such that funds received
from the mortgage loans are sufficient to fund interest and principal
payments on the Bonds as well as other expenses of the Company.  All payments
of principal and interest due on the church mortgage loans securing the Bonds
have been received by the Company.  Principal payments received on mortgage
loans were $889,000 in 2000; $810,000 in 1999; and $4,034,000 in 1998.
Bond redemptions totaled $921,000 in 2000; $823,000 in 1999; and
$4,040,000 in 1998.

      Ziegler Financing Corporation, a related corporation, acts as servicer
for the mortgage loans for which it receives a fee.  The monthly fee is equal
to .0292% of the average outstanding principal balance of the mortgage loans
during the preceding month.  Servicing fees paid Ziegler Financing
Corporation were $15,000 in 2000; $17,000 in 1999; and $28,000 in 1998.  At
December 31, 2000, there were $3,302,000 of Bonds outstanding collateralized
by approximately $3,631,752 of mortgage loans.

Item 7a -  Quantitative and Qualitative Disclosure about Market Risk

      Market risk arises from exposure to changes in interest rates, exchange
rates, commodity prices and other relevant market rate or price risk which
impact an instrument's financial value.  The Company would be exposed to
market risk from changes in interest rates, except that the structured nature
of the Company's activities minimizes this risk.  The cash flows from
principal payments on the Mortgage Loans are used to retire the principal of
the Mortgage-Backed Bonds Payable.  See Note 4 of the Notes to Financial
Statements.

      The table below provides information about the Company's financial
instruments that are sensitive to changes in interest rates, which include
mortgage loans and bonds payable.  The table presents principal cash flows
and related weighted average interest rates by expected maturity dates.  The
principal payments on the Mortgage Loans are the result of normal
amortization (see Note 3 of the Notes to Financial Statements).  The table
assumes that an equal amount of Mortgage-Backed Bonds Payable will be
redeemed, as required by the indenture.  Fair value is derived in accordance
with the procedures described in Note 7 of the Company's Notes to Financial
Statements.
<TABLE>
<CAPTION>
                                  Expected Maturity Dates
                                      (In US dollars)

ASSETS                       2000-2004    Thereafter      Total      Fair Value
<S>                         <C>           <C>           <C>           <C>
Mortgage Loans (1)          $2,103,685    $1,528,067    $3,631,752    $3,573,000
  Weighted average
    interest rate                                             9.21%

LIABILITIES

Mortgage-Backed Bonds
  Payable                    2,056,000     1,246,000     3,302,000     3,106,000
    Weighted average
      interest rate                                           8.30%

(1) Assumes no mortgage loan prepayments.
</TABLE>

Item 8  -   Financial Statements and Supplementary Data

      The Financial Statements of the Company, together with the related
Notes to Financial Statements and Report of Independent Public Accountants,
are contained in the Financial Statements section included herein for the
years ended December 31, 2000 and 1999.
<PAGE>

                                 PART III

Item 9  -   Disagreements with Accountants on Accounting and Financial
            Disclosure

      There were no reports on Form 8-K reporting a change of accountants or
a disagreement with accountants on any matter of accounting principles or
practices on financial statement disclosure filed during the fiscal years
2000 and 1999.

Item 10 -   Directors and Executive Officers of the Company

      (Omitted pursuant to General Instruction I)

Item 11 -   Executive Compensation

      (Omitted pursuant to General Instruction I)

Item 12 -   Security Ownership of Certain Beneficial Owners and Management

      (Omitted pursuant to General Instruction I)

Item 13 -   Certain Relationships and Related Transactions

      (Omitted pursuant to General Instruction I)
<PAGE>

                                  PART IV

Item 14 -   Exhibits, Financial Statement Schedules, and Reports on Form 8-K

      (a)   Documents list

            1.    Financial Statements:

                  -     Report of Independent Public Accountants (Page 10)

                  -     Balance Sheets as of December 31, 2000 and 1999
                        (Page 11)

                  -     Statements of Income for the Years Ended
                        December 31, 2000, 1999 and 1998 (Page 12)

                  -     Statements of Stockholder's Equity for the Years
                        Ended December 31, 2000, 1999 and 1998 (Page 13)

                  -     Statements of Cash Flows for the Years Ended
                        December 31, 2000, 1999 and 1998 (Page 14)

                  -     Notes to Financial Statements, dated as of
                        December 31, 2000 and 1999 (Page 15)

            2.    Financial Statement Schedules - None

            3.    Exhibits

                  (3)   Articles of Incorporation and Bylaws of the Company
                        (incorporated herein by reference to exhibits 3.1
                        and 3.2, respectively, to the Company's Registration
                        Statement on Form S-11).

                  (4)   (A)   Indenture dated as of March 1, 1993, between
                              the Company and M&I First National Bank, West
                              Bend (incorporated by reference to Exhibit 4.1
                              to Form 8-K dated March 24, 1993).

                        (B)   First Supplemental Indenture dated as of March
                              1, 1993, between the Company and M&I First
                              National Bank, West Bend (incorporated herein
                              by reference to Exhibit 4.2 to Form 8-K dated
                              March 24, 1993).

                        (C)   Second Supplemental Indenture dated as of
                              August 1, 1994, between the Company and M&I
                              First National Bank, West Bend (incorporated
                              herein by reference to Exhibit 4.1 to Form 8-K
                              dated July 20, 1994).

                        (D)   Supplemental Indenture 1-A, dated as of
                              November 1, 1994, between the Company and M&I
                              First National Bank, West Bend (incorporated
                              herein by reference to Exhibit 4.4 to Form
                              10-Q dated September 30, 1994).
                        (E)   Third Supplemental Indenture dated as of
                              December 1, 1995, between the Company and M&I
                              First National Bank, West Bend (incorporated
                              herein by reference to Exhibit 4.1 to Form 8-K
                              dated December 1, 1995).

                  (10)  Form of Underwriting Agreement dated March 1, 1993,
                        between the Company and B. C. Ziegler and Company
                        (incorporated by reference to Exhibit 1.1 to the
                        Company's Registration Statement on Form S-11).

      (b)   Reports on Form 8-K

            None

      (c)   Exhibits Required by Item 601 of Regulation S-K

            Included in Item (a)(3) above.

      (d)   Financial Statement Schedules required by Regulation S-X

            None


                                SIGNATURES

      Pursuant to the requirements of Section 13 or 15(d) of the Securities
Exchange Act of 1934, the Registrant has duly caused this report to be signed
on its behalf by the undersigned, thereunto duly authorized.

                                    FIRST CHURCH FINANCING CORPORATION

March 28, 2001                      By /s/ Scott D. Rolfs
                                          Scott D. Rolfs
                                          President

      Pursuant to the requirements of the Securities Exchange Act of 1934,
this report has been signed below by the following persons in the capacities
and on the dates indicated.

     Signature                              Title                   Date


/s/ Scott D. Rolfs                  President and Director       March 28, 2001
Scott D. Rolfs                      (Chief Executive Officer)

/s/ Jeffrey C. Vredenbregt          Secretary and Treasurer      March 28, 2001
Jeffrey C. Vredenbregt              (Chief Accounting Officer)
<PAGE>
INDEX TO FINANCIAL STATEMENTS

The following financial statements are referenced in Item 8:

                                                                  Page

      Report of Independent Public Accountants                     10

      Balance Sheets as of December 31, 2000 and 1999              11

      Statements of Income for the Years Ended
       December 31, 2000, 1999 and 1998                            12

      Statements of Stockholder's Equity for the Years Ended
       December 31, 2000, 1999 and 1998                            13

      Statements of Cash Flows for the Years Ended
       December 31, 2000, 1999 and 1998                            14

      Notes to Financial Statements, dated as of
       December 31, 2000 and 1999                                  15
<PAGE>


                 REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS


To the Stockholder and Board of Directors of
  First Church Financing Corporation:

      We have audited the accompanying balance sheets of FIRST CHURCH
FINANCING CORPORATION (a Wisconsin corporation and a wholly owned subsidiary
of The Ziegler Companies, Inc.) as of December 31, 2000 and 1999, and the
related statements of income, stockholder's equity and cash flows for each of
the three years in the period ended December 31, 2000.  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 audits.

      We conducted our audits in accordance with accepted auditing
standards generally accepted in the 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 audits provide 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 First Church
Financing Corporation as of December 31, 2000 and 1999, and the results of
its operations and its cash flows for each of the three years in the period
ended December 31, 2000, in conformity with accounting principles generally
accepted in the United States.



ARTHUR ANDERSEN LLP


Milwaukee, Wisconsin,
February 8, 2001.
<PAGE>
<TABLE>
<CAPTION>
                         FIRST CHURCH FINANCING CORPORATION

                                   BALANCE SHEETS

                          AS OF DECEMBER 31, 2000 and 1999


                                                               2000           1999
ASSETS
<S>                                                         <C>           <C>
Cash                                                        $   22,878    $    8,944
Assets held by trustee                                         199,548       216,344
Accrued interest receivable                                     27,881        34,697
Mortgage loans held by trustee (net of purchase
 discounts of $83,991 and $113,577, respectively)            3,547,761     4,406,799
Deferred issuance costs                                         78,458       108,677
Tax refund due from Parent                                       2,171        17,708

      Total assets                                          $3,878,697    $4,793,169


LIABILITIES AND STOCKHOLDER'S EQUITY

Accrued interest payable                                    $   68,769    $   92,153
Mortgage-backed bonds payable                                3,302,000     4,223,000

      Total liabilities                                      3,370,769     4,315,153

Stockholder's Equity:
Common Stock, $1 par value; 50,000 shares authorized;
 1,000 shares issued and outstanding                             1,000         1,000
Additional paid-in capital                                     269,631       269,631
Retained earnings                                              237,297       207,385

      Total stockholder's equity                               507,928       478,016

      Total liabilities and stockholder's equity            $3,878,697    $4,793,169



                   The accompanying notes to financial statements
                    are an integral part of these balance sheets.
</TABLE>
<PAGE>

<TABLE>
<CAPTION>
                      FIRST CHURCH FINANCING CORPORATION

                             STATEMENTS OF INCOME

             FOR THE YEARS ENDED DECEMBER 31, 2000, 1999 and 1998

                                                2000        1999         1998
<S>                                           <C>         <C>         <C>
Revenues:
Interest income                               $406,433    $452,573    $  718,518
Gain on liquidation of mortgage loans           18,511      23,301       117,371
Other income                                    11,075      12,495        26,851

    Total revenues                             436,019     488,369       862,740

Expenses:
Interest expense                               328,344     374,133       617,605
Amortization of deferred issuance costs         30,219      36,174       139,841
Servicing fees                                  15,142      17,027        27,867
Other                                           12,502      14,320        24,382

    Total expenses                             386,207     441,654       809,695

Income before income taxes                      49,812      46,715        53,045

Provision for income taxes                      19,900      16,200        21,000

    Net income                                $ 29,912    $ 30,515    $   32,045

                The accompanying notes to financial statements
                   are an integral part of these statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
                      FIRST CHURCH FINANCING CORPORATION

                      STATEMENTS OF STOCKHOLDER'S EQUITY

             FOR THE YEARS ENDED DECEMBER 31, 2000, 1999 and 1998


                                              Additional
                                     Common    Paid-In     Retained
                                     Stock     Capital     Earnings     Total
<S>                                  <C>       <C>         <C>        <C>
BALANCE, December 31, 1997           $1,000    $269,631    $144,825   $415,456

  Net income                              -           -      32,045     32,045

BALANCE, December 31, 1998            1,000     269,631     176,870    447,501

  Net income                              -           -      30,515     30,515

BALANCE, December 31, 1999            1,000     269,631     207,385    478,016

  Net income                              -           -      29,912     29,912

BALANCE, December 31, 2000           $1,000    $269,631    $237,297   $507,928


                The accompanying notes to financial statements
                   are an integral part of these statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>

                            FIRST CHURCH FINANCING CORPORATION

                                 STATEMENTS OF CASH FLOWS

                   FOR THE YEARS ENDED DECEMBER 31, 2000, 1999 and 1998

                                                          2000       1999        1998
<S>                                                     <C>        <C>        <C>
Cash flows from operating activities:
 Net income                                             $ 29,912   $ 30,515   $   32,045
 Adjustments to reconcile net income to
  net cash provided by operating activities:
   Gain on liquidation of mortgage loans                 (18,511)   (23,301)    (117,371)
   Amortization of discount on mortgage loans            (11,075)   (12,496)     (20,015)
   Amortization of deferred issuance costs                30,219     36,174      139,841
   Amortization of other deferred costs                        -          -        1,256
   Change in assets and liabilities:
    Decrease (Increase) in -
     Assets held by trustee                               16,796      8,259       46,076
     Accrued interest receivable                           6,816      6,167       31,003
     Tax refund due from Parent                           15,537    (17,708)      16,670
    Increase (Decrease) in -
     Accrued interest payable                            (23,384)   (10,802)     (87,413)
     Due to affiliate                                          -          -         (585)
     Accrued income taxes payable                              -       (329)         329

  Net cash provided by operating activities               46,310     16,479       41,836

Cash flows from investing activities:
 Proceeds from -
  Principal payments on mortgage loans                   888,624    809,942    4,034,080

  Net cash provided by investing activities              888,624    809,942    4,034,080

Cash flows from financing activities:
 Payments for -
  Repayment of note payable to affiliate                      -           -      (35,000)
  Redemption of mortgage-backed bonds                  (921,000)   (823,000)  (4,040,000)

  Net cash used in financing activities                (921,000)   (823,000)  (4,075,000)

Net increase in cash                                     13,934       3,421          916
Cash at beginning of period                               8,944       5,523        4,607
Cash at end of period                                  $ 22,878    $  8,944   $    5,523


SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
 Interest paid during the period                       $352,000    $385,000     $705,000
 Income taxes paid during the period                   $  4,000    $ 34,000     $  4,000


                      The accompanying notes to financial statements
                         are an integral part of these statements.
</TABLE>
<PAGE>
                    FIRST CHURCH FINANCING CORPORATION

                       NOTES TO FINANCIAL STATEMENTS
                        DECEMBER 31, 2000 and 1999

(1)   Organization

      First Church Financing Corporation (the "Company") is a limited purpose
      finance company.  The Company was organized to facilitate the financing
      of mortgage loans on church properties.  The Company is a wholly-owned
      subsidiary of The Ziegler Companies, Inc. (the "Parent").

(2)   Summary of Significant Accounting Policies

      Mortgage loans (the "Loans") are carried at face value less unamortized
      purchase discount.  The purchase discount on the loans is amortized
      over the life of the mortgage-backed bonds (the "Bonds") using the
      bonds outstanding method which approximates the effective interest rate
      method.  Deferred bond issuance costs consist of underwriting
      discounts and are also amortized over the life of the Bonds using
      the bonds outstanding method.  To the extent that the Loans are
      prepaid and the Bonds are called earlier than their maturity dates,
      gains are recognized and amortization of deferred issuance costs is
      accelerated, respectively.

      Cash Equivalents

      Cash equivalents are defined as unrestricted short-term investments
      maturing within three months of the date of purchase.

      Use of Estimates

      The preparation of financial statements in conformity with generally
      accepted accounting principles requires management to make estimates
      and assumptions that affect the reported amounts of assets and
      liabilities and disclosure of contingent assets and liabilities at the
      dates of the financial statements and the reported amounts of revenues
      and expenses during the reporting periods.  Actual results could differ
      from those estimates.

      Income Taxes

      The Company is included in a consolidated Federal income tax return
      filed by its Parent.  The consolidated tax provision is allocated among
      the Parent and its subsidiaries based on their respective contributions
      to consolidated taxable income.

      Certain income and expense items may be accounted for in different
      periods for financial reporting purposes than for income tax purposes.
      Appropriate provisions are made in the Company's financial statements
      for deferred income taxes in recognition of these temporary
      differences.

(3)   Mortgage Loans

      The Loans consist of fixed-interest rate, full recourse real estate
      loans evidenced by promissory notes secured by mortgages.  The Loans
      are generally fully amortized over a 15-year period.  Prepayments may
      be made under specified conditions.  Principal and interest payments
      received from the Loans are received by the servicer (see Note 5) and
      deposited with the trustee.  These funds are used to meet semiannual
      interest payments on the Bonds, to reduce the outstanding principal
      balance of the Bonds, and to pay operating expenses of the Company.
<TABLE>
<CAPTION>
(4)   Mortgage-Backed Bonds

      The Bonds originally issued and outstanding at December 31, 2000,
      consist of the following:
                                                                Outstanding
                                                   Original      Principal
                         Date of      Stated       Principal       Amount
      Series   Rate       Bonds      Maturity       Amounts     at 12/31/00
         <S>   <C>       <C>         <C>         <C>             <C>
         1     8.25%      3/1/93      3/10/08    $ 4,586,000     $  677,000
         2     8.75%      8/1/94      8/10/09      4,456,000      1,096,000
         3     8.00%     12/1/95     12/10/10      4,223,000      1,529,000
                                                 $13,265,000     $3,302,000
</TABLE>

      The stated maturity is the date by which all Bonds will be fully paid.
      Mandatory redemptions will be made from principal payments on the Loans
      which serve as collateral for the Bonds.  The Loans generally require
      regular installments of principal and interest based upon a 15-year
      amortization schedule.  The receipt of scheduled principal payments
      will cause a substantial portion of the Bonds to have shorter
      maturities.

      The Bonds will be redeemed, without premium or penalty, to the extent
      funds are available in the interest and principal payment accounts
      maintained by the trustee.  Redemptions from such available funds
      (other than funds from prepayments of Loans) commence six months from
      the date of issue of a Bond series and continue on a semiannual basis
      thereafter.

      All interest and principal collected on the Loans, less a servicing fee
      paid to Ziegler Financing Corporation, a related entity, is to be
      deposited with the trustee of the Bonds.  Any amounts deposited with
      the trustee in excess of amounts required for payment of interest on
      and principal of the Bonds and an amount to be maintained in an
      interest reserve fund will be returned to the Company.

      The Bonds of any series may be redeemed in whole by the Company at such
      time as the aggregate principal amount of the outstanding Bonds for
      that series is 20% or less of the aggregate principal amount of the
      Bonds originally issued for that series.  Redemptions are made
      from unscheduled prepayments on the Loans, as such prepayments
      occur.  Prepayments over and above the regular principal installments
      may be made by the mortgagor from borrowed and unborrowed funds on a
      monthly or quarterly basis.

      In the event of default on the Loans, the Series 1 Bonds are
      nonrecourse to the Company.  The holders of the Series 1 Bonds may only
      look to the assets securing the Bonds.  The Series 2 and 3 Bonds allow
      recourse against any assets of the Company that are not pledged to
      secure other series of Bonds.

(5)   Related Parties

      B. C. Ziegler and Company, also a wholly owned subsidiary of the
      Parent, was the sole underwriter for the Bonds issued by the Company.
      In its capacity as underwriter, B. C. Ziegler and Company received a
      fee for its services equal to four percent of the aggregate principal
      amount of the Bonds offered by the Company.

      Ziegler Financing Corporation, also a wholly owned subsidiary of the
      Parent, is the servicer for the Loans.  In its capacity as servicer,
      Ziegler Financing Corporation is entitled to a monthly fee equal to
      .0292% of the average outstanding principal balance of the Loans during
      the preceding month.

(6)   Provision for Income Taxes
<TABLE>
<CAPTION>
      The provision for income taxes for the years ended December 31, 2000,
      1999 and 1998, consisted of the following:

                                               2000      1999      1998
      <S>                                     <C>       <C>       <C>
        Current Federal                       $15,965   $12,510   $16,693
        Current state                           3,935     3,690     4,307

                 Total                        $19,900   $16,200   $21,000

      The following is a reconciliation of the statutory Federal income tax
      rate to the effective income tax rates:

                                                 2000     1999      1998
        Statutory Federal income tax rate        34.0%     34.0%     34.0%
        State taxes on income, net of related
         Federal income tax effect                5.2       5.2       5.6
        Other                                      .8      (4.5)        -

                                                 40.0%     34.7%     39.6%
</TABLE>
(7)   Fair Value of Financial Instruments

      The financial instruments of the Company are reported in the Balance
      Sheet at market or fair values, or at carrying amounts that approximate
      fair values because of the short maturity of the instruments, with the
      exception of the following financial instruments:

      Mortgage Loans

      The fair value of Mortgage Loans based on discounted cash flow analysis
      approximates $3,573,000 at December 31, 2000.  At December 31, 1999 fair
      value approximated carrying value.  The discount rates were based on the
      Company's current loan rates.

      Bonds Payable

      The fair value of Bonds Payable at December 31, 2000 approximates
      $3,106,000 which was determined based on current market rates offered
      on bonds with similar terms and maturities.  At December 31, 1999
      fair value approximated carrying value.
<PAGE>

                            INDEX TO EXHIBITS

Exhibit
Number                            Description                          Page

  3         Articles of Incorporation and Bylaws of the Company         N/A
            (incorporated herein by reference to exhibits 3.1 and 3.2,
            respectively, to the Company's Registration Statement
            on Form S-11).

  4(A)      Indenture dated as of March 1, 1993, between the Company    N/A
            and M&I First National Bank, West Bend (incorporated
            herein by reference to Exhibit 4.1 to Form 8-K dated
            March 24, 1993).

  4(B)      First Supplemental Indenture dated as of March 1,           N/A
            1993, between the Company and M&I First National
            Bank, West Bend (incorporated herein by reference
            to Exhibit 4.2 to Form 8-K dated March 24, 1993).

  4(C)      Second Supplemental Indenture dated as of August 1,         N/A
            1994 (incorporated herein by reference to Exhibit 4.1
            to Form 8-K dated July 20, 1994).

  4(D)      Supplemental Indenture 1-A, dated as of November 1,         N/A
            1994, between the Company and M&I First National
            Bank, West Bend (incorporated herein by reference to
            Exhibit 4.4 to Form 10-Q dated September 30, 1994).

  4(E)      Third Supplemental Indenture dated as of December 1,        N/A
            1995, between the Company and M&I First National
            Bank, West Bend (incorporated herein by reference to
            Exhibit 4.1 to Form 8-K dated December 1, 1995).

 10         Form of Underwriting Agreement dated March 1, 1993,         N/A
            between the Company and B. C. Ziegler and Company
            (incorporated herein by reference to Exhibit 1.1 to
            the Company's Registration Statement on Form S-11).