SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
- -------------------------------------------------------------------------------
[X] Quarterly Report Under Section 13 or
15(d) of the Securities Exchange Act of
1934
For the Quarterly Period Ended September 30, 1999
or
[ ] Transition Report Under Section 13 or 15(d) of
the Securities Exchange Act of 1934
For the Transition Period from ------------to------------
- -------------------------------------------------------------------------------
Commission File Number 33-87570
I.R.S. Employer Identification Number 41-1793975
American Church Mortgage Company
Incorporated Under the Laws of the State of Minnesota
10237 Yellow Circle Drive
Minnetonka, MN 55343
Telephone: (612) 945-9455
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 requirements
for the past 90 days. Yes X No o
The number of shares outstanding of the Registrant's stock as of October 31,
1999 was:
1,256,739 Shares of Common Stock Outstanding
1
<PAGE>
AMERICAN CHURCH MORTGAGE COMPANY
INDEX Page
No.
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements:
Balance Sheets September 30, 1999 and 1998.................. 3
Statements of Operations
Nine Month Periods Ended September 30, 1999 and 1998....... 4
Interim Three Month Periods Ended
September 30, 1999 and 1998......................... 4
Statements of Cash Flows
Nine Months Ended September 30, 1999 and 1998.............. 5
Statement of Stockholders Equity............................ 6
Notes to Financial Statements .............................. 7
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations ........................ 10
PART II. OTHER INFORMATION
Item 4. Submission of Matters to a Vote of Security Holders........... 12
Item 6. Exhibits and Reports on Form 8-K ............................. 12
Signatures'............................................... 12
2
<PAGE>
AMERICAN CHURCH MORTGAGE COMPANY
UNAUDITED BALANCE SHEETS
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
September 30, September 30,
1999 1998
<S> <C> <C>
Assets:
Current Assets
Cash and Cash Equivalents.............................. $ 317,681 $ 1,904,250
Accounts Receivable.................................... 2,270 - 0 -
Prepaid Expenses....................................... 4,167 - 0 -
Current Maturities of Loans Receivable................ 194,953 244,076
---------- ----------
Total current Assets: 519,071 2,148,336
Loans Receivable, net of current maturities............ 9,038,106 6,764,508
Bonds Receivable....................................... 2,055,586 134,274
Deferred Offering Costs................................ 26,382 665
Deferred Tax Asset..................................... 40,000 33,000
Organizational Expenses, (net of accumulated
amortization September 30, 1999, $1,552; September
30, 1998, $1,315).................................... - 0 - 237
---------- ----------
Total Assets: $ 11,679,145 $ 9,081,010
========== ==========
Liabilities and Shareholder's Equity:
Current Liabilities:
Accounts Payable....................................... $ 359,437 $ 24,820
Deferred Income........................................ 23,205 22,948
Dividends Payable...................................... 272,534 191,298
--------- ----------
Total current Liabilities:......................... 655,176 239,066
Deferred Income, net of current deferred income........ 134,715 78,130
Shareholder's Equity
Common stock, par value $.01 per share; authorized
30,000,000 shares; issued and outstanding 1,196,873
as of September 30, 1999, 962,376 shares as of
September 30, 1998................................ 11,969 9,624
Additional Paid in Capital............................. 11,004,341 8,820,204
Accumulated Deficit.................................... (127,056) (66,014)
---------- ---------
Total Shareholders Equity: 10,889,254 8,763,814
---------- ---------
$ 11,679,145 $ 9,081,010
========== =========
</TABLE>
Notes to Financial Statements are an integral part of this Statement.
3
<PAGE>
AMERICAN CHURCH MORTGAGE COMPANY
UNAUDITED STATEMENTS OF OPERATIONS
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Nine Months Ended Three Months Ended
September 30, September 30,
1999 1998 1999 1998
-------- --------- --------- ---------
Revenues
<S> <C> <C> <C> <C>
Interest Income, Loans.......................... $ 594,889 $ 470,297 $ 236,682 $ 184,643
Interest Income, Other.......................... 152,584 43,400 48,973 19,553
Capital Gains Realized.......................... 14,215 5,885 757 3,372
Origination Income.............................. 51,928 31,126 35,838 16,687
-------- --------- -------- ---------
Total Revenues: 813,616 550,708 322,250 224,255
Expenses
Professional Fees............................... 14,936 7,780 1,633 - 0 -
Director Fees................................... 2,400 2,400 800 800
Amortization.................................... 995 228 843 76
Advisory Fees................................... 79,753 40,185 31,990 10,558
Other........................................... 14,675 8,437 5,492 2,486
-------- --------- ------- -------
Total Expenses: 112,759 59,030 40,758 13,920
Net Operating Income (loss).......................... $ 700,857 $ 491,678 $ 281,492 $ 210,335
------- ------- ------- -------
Provision for (Benefit from )
Income Taxes....................................... - 0 - - 0 - - 0 - - 0 -
----------- ---------- ----------- ----------
Net Income (loss).................................... $ 700,857 $ 491,678 $ 281,492 $ 210,335
======= ======== ======= =======
Income (Loss) Per Common Share....................... $ .59 $ .65 $ .24 $ .23
Weighted Average Common Shares
Outstanding.................................... 1,180,917 758,709 1,194,656 896,182
Dividends Declared................................... $ 750,220 $ 508,673 $272,534 $ 191,298
</TABLE>
Notes to Financial Statements are an integral part of this Statement.
4
<PAGE>
AMERICAN CHURCH MORTGAGE COMPANY
UNAUDITED STATEMENTS OF CASH FLOWS
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
For the Nine For the Nine
Months Ended Months Ended
September 30, September 30,
1999 1998
Cash Flows From Operating Activities
<S> <C> <C>
Net Income (Loss) $ 700,857 $ 491,678
Adjustments to reconcile net income (loss) to net cash
used in operating activities:
Deferred Offering Costs (26,382) - 0 -
Amortization 162 227
Change in assets and liabilities:
Line of Credit 320,000 - 0 -
Prepaid Expenses (4,167) - 0 -
Accounts Receivable 26,507 - 0 -
Increase (Decrease) in accounts payable 26,678 8,665
Increase (Decrease) in deferred income 43,740 22,650
---------- ----------
Net cash used in operating activities 1,087,395 523,220
Cash Flows From Investing Activities
Investment in mortgage loans (5,089,746) (2,800,000)
Collections of mortgage loans 2,088,548 703,724
Investment in bonds (1,031,589) (8,465)
---------- --------------
Net cash used for investing activities (4,032,787) (2,104,741)
Cash Flows From Financing Activities
Proceeds from Stock Offering and
Dividend Reinvest Plan 1,032,233 3,492,293
Dividends Paid (710,690) (298,337)
--------- ----------
Net cash from (used for) financing activities 321,543 3,193,956
--------- -----------
Net increase (Decrease) in Cash (2,623,849) 1,612,435
Cash
Beginning of period 2,941,530 291,815
----------- ----------
End of period $ 317,681 $ 1,904,250
------------ =========
Supplemental Schedule of Noncash
Financing Activities
Dividends declared but not paid $ 272,354 $ 191,298
Deferred offering costs financed through
accounts payable $ 26,382 $ 665
Dividends reinvested $ 199,820 $ 146,937
Supplemental Cash Flow Information
Cash paid during the period for
Interest - 0 - - 0 -
Income Taxes - 0 - - 0 -
</TABLE>
Notes to Financial Statements are an integral part of this Statement.
5
<PAGE>
AMERICAN CHURCH MORTGAGE COMPANY
UNAUDITED STATEMENT OF STOCKHOLDER'S EQUITY
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Additional
Common Stock Paid-In Accumulated
Shares Amount Capital Deficit
<S> <C> <C> <C> <C>
Balance, December 31, 1998 1,087,646 $ 10,876 $ 9,973,200 $ (77,693)
Issuance of 109,227 shares of
common stock, net of costs 109,227 1,093 1,031,141
Net Income 700,857
Dividends declared (750,220)
Balance, September 30, 1999 1,196,873 $ 11,969 $ 11,004,341 $ (127,056)
(unaudited)
</TABLE>
Notes to Financial Statements are an integral part of this Statement.
6
<PAGE>
AMERICAN CHURCH MORTGAGE COMPANY
NOTES TO UNAUDITED FINANCIAL STATEMENTS
- -------------------------------------------------------------------------------
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation
The accompanying unaudited financial statements have been prepared in accordance
with the instructions for interim statements and, therefore, do not include all
information and disclosures necessary for a fair presentation of results of
operations, financial position, and changes in cash flow in conformity with
generally accepted accounting principles. However, in the opinion of management,
such statements reflect all adjustments (which include only normal recurring
adjustments) necessary for a fair presentation of the financial position,
results of operations, and cash flows for the period presented.
The unaudited consolidated financial statements of the Company should be read in
conjunction with its December 31, 1998, audited financial statements included in
the Company's Annual Report on Form 10-KSB, as filed with the Securities and
Exchange Commission for the year ended December 31, 1998
Nature of Business
American Church Mortgage Company, a Minnesota corporation, was incorporated on
May 27, 1994. The Company was organized to engage in the business of making
mortgage loans to churches and other nonprofit religious organizations
throughout the United States, on terms that it establishes for individual
organizations.
Accounting Estimates
Management uses estimates and assumptions in preparing these financial
statements in accordance with generally accepted accounting principals. Those
estimates and assumptions affect the reported amounts of assets and liabilities,
the disclosure of contingent assets and liabilities, and the reported revenues
and expenses. Actual results could differ from those estimates.
Cash
The Company considers all highly liquid debt instruments purchased with a
maturity of three months or less to be cash equivalents. The Company maintains
some cash in bank deposit accounts which, at times, may exceed federally insured
limits. The Company has not experienced any losses in such accounts.
Marketable Securities
The Company accounts for its debt securities under Financial Accounting
Standards No. 115, "Accounting for Certain Investments in Debt and Equity
Securities." The Company classifies its marketable debt securities as
"held-to-maturity" because it has the intent and ability to hold the securities
to maturity. Securities classified as "held-to-maturity" are carried at
amortized cost.
Allowance for Loans Receivable
The Company follows a policy of providing an allowance for loans receivable.
However, at September 30, 1999, management believes the loans receivable to be
collectible in all material respects.
Deferred Income
Deferred income represents loan origination fees which are recognized over the
life of the loan as an adjustment to the yield on the loan.
7
<PAGE>
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued
Income Taxes
For the fiscal year 1999, the Company will elect to be taxed as a Real Estate
Investment Trust (REIT). Accordingly, the Company will not be subject to Federal
income tax to the extent of distributions to its Shareholders if the Company
meets all the requirements under the REIT provisions of the Internal Revenue
Code.
Income (Loss) Per Common Share
Income (loss) per common share is computed based upon the weighted average
number of common and dilutive common equivalent shares outstanding during the
period. Fully diluted and primary income (loss) per common share are the same
for the periods presented.
2. MORTGAGE AND BONDS RECEIVABLE
At September 30, 1999, the Company had mortgage loans receivable totaling
$9,233,059. The loans bear interest ranging from 9.75% to 12.00%.
The Company also has a portfolio of church bonds, which are carried at cost plus
amortized interest income. At September 30, 1999 the Company had aggregate
principal of $2,067,000 on all bonds owned by it. Principal amounts are due at
various bond maturity dates between November 1, 1999 and February 1, 2019. The
bonds pay either quarterly or semi-annual interest ranging from 6.35% to 10.50%.
The maturity schedule for mortgage loans and bonds receivable as of September
30, 1999 is as follows:
<TABLE>
<CAPTION>
September 30, 1999
(unaudited)
Mortgage Loans Bond Portfolio
<S> <C> <C>
1999 $ 46,760 $ 7,000
2000 199,895 17,000
2001 222,181 27,000
2002 246,961 68,000
2003 274,516 37,000
Thereafter 8,242,746 1,911,000
--------- ---------
9,233,059 2,067,000
Less discounts
from par (11,414)
--------- ---------
$ 9,233,059 $ 2,055,586
</TABLE>
3. STOCK OPTION PLAN
The Company has adopted a Stock Option Plan granting each member of the Board of
Directors and the president of the Advisor (Note 5) an option to purchase 3,000
shares of common stock annually upon their re-election. The purchase price of
the stock will be the fair market value at the grant date. On November 15, 1994,
1995, 1996, 1997 and 1998 the Company granted options to purchase an aggregate
of 105,000 shares of common stock at $10 per share. These options vested or vest
one year after their grant, and are thus exercisable November 15, 1995 through
1999 and expire four years after their grant, and thus expire beginning November
15, 1999 through 2003. Options to purchase 84,000 shares are currently
exercisable.
The Company has chosen to account for stock-based compensation in accordance
with APB Opinion 25. Management believes that the disclosure requirements of
Statement of Financial Accounting Standards No. 123 are not material to its
financial statements.
8
<PAGE>
4. TRANSACTIONS WITH AFFILIATES
The Company has an Advisory Agreement with Church Loan Advisors, Inc. (Advisor).
The Advisor is responsible for the day-to-day operations of the Company and
provides offices, support services, administrative services and personnel.
The Company pays the Advisor an annual management fee of 1.25 percent of the
Company's average invested assets (generally defined as the average of the
aggregate book value of the assets invested in securities and in loans secured
by real estate), which is payable on a monthly basis. The Advisor will also
receive one-half of the origination fees paid by a mortgage loan borrower, in
connection with a mortgage loan made or renewed by the Company. The Advisor and
the Company are related through common ownership and common management.
<TABLE>
<CAPTION>
Advisory and Advisory and
origination origination
fees paid fees waived
<S> <C> <C>
January 1, 1999 through September 30, 1999 (unaudited) $ 170,606 $ -
1998 101,944 15,223
1997 61,525 23,119
1996 64,680 6,662
1995 - -
</TABLE>
5. PUBLIC OFFERING OF THE COMPANY'S COMMON STOCK
On September 23, 1999 the Securities and Exchange Commission declared effective
the Company's third public offering of its common stock. The Company is offering
to sell 1,500,000 shares of its common stock at a price of $10 per share. The
offering is being underwritten by an underwriter (an affiliate of the Advisor)
on a "best efforts basis" and no minimum sale of stock is required. This
offering is being conducted on a continuous basis pursuant to applicable rules
of the Securities and Exchange Commission and will terminate not later than
September 23, 2001 (two years from the effective date of the offering), or upon
completion of the sale of all shares, whichever first occurs.
6. FAIR VALUE OF FINANCIAL INSTRUMENTS
The estimated fair values of the Company's financial instruments, none of which
are held for trading purposes, are as follows at September 30, 1999 and 1998:
<TABLE>
<CAPTION>
September 30,
1999 1998
----------------------------------- ---------------------------------
Carrying Fair Carrying Fair
Amount Value Amount Value
<S> <C> <C> <C> <C>
Cash and equivalents $ 317,681 $ 317,681 $ 1,904,250 $1,904,250
Loans receivable 9,233,059 9,233,059 7,008,584 7,008,854
Bonds receivable 2,055,586 2,055,586 134,274 134,274
</TABLE>
The carrying value of cash and equivalents approximates fair value. The fair
value of the loans receivable and the bonds receivable are estimated by
discounting future cash flows using current discount rates that reflect the
risks associated with similar types of loans.
7. LINE OF CREDIT
The Company obtained a $1,000,000 line of credit with its bank on July 22, 1999,
subject to certain borrowing base limitations, through August 1, 2000. Interest
is charged at 1% over the bank's designated prime rate, which was 9.25% at
September 30, 1999. The line of credit is collateralized by the church bonds
held by the Company in its portfolio.
9
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Introduction and Plan of Operation
American Church Mortgage Company was incorporated in May 1994, and we began a
"best efforts" offering of our common stock on July 11, 1995, and commenced
active business operations on April 15, 1996 after completion of the "Minimum
Amount" in our initial public offering. Consequently, we had no operating
revenue for the years ended December 31, 1994 and 1995. Expenses in those years
were limited to organizational and offering-related costs.
Business operations from inception to completion of the minimum offering were
limited to daily business organizational efforts, activities relating to the
offering, reviewing potential candidates for church mortgage loans, and
conducting informational meetings with brokers and broker-dealers. We concluded
our initial public offering on November 8, 1996. As of such date we had sold
335,481 shares at $10.00 per share to approximately 281 individuals, not
including 20,000 shares ($200,000) previously purchased by our initial
shareholder-DRM Holdings, Inc.
On September 26, 1997, the Securities and Exchange Commission declared effective
our second public offering of common shares at a price of $10.00 per share
($15,000,000). That offering was co-underwritten by American Investors Group,
Inc., Minnetonka, Minnesota and LaSalle St. Securities, Inc., Chicago Illinois.
American acted as the Managing Underwriter. The second offering was also
conducted on a "best-efforts" basis. We concluded our second public offering on
January 22, 1999. We sold 779,759 shares in our second public offering at $10.00
per share. As of September 30, 1999, we had 1, 196,873 shares outstanding and
approximately 807 shareholders.
Between April 15, 1996 and September 30, 1999, we made 37 loans to 32 churches
in the aggregate amount of $12,205,750, with the average size being $329,885. Of
the 37 loans we made, seven loans totaling $2,502,000 have been repaid by the
borrowing churches. We have purchased in the secondary market for $3,188,921,
first mortgage church bonds in the face amount of $3,207,300 and purchased for
$72,800 second mortgage church bonds in the face amount of $100,000. Four of the
first mortgage church bonds in the face amount of $43,300 have been called for
redemption (early repayment) by the issuing organizations. In addition, we sold
$341,000 principal amount of mortgage bonds for $336,000. We paid $311,800 for
these bonds. We intend to fund additional first mortgage loans as investable
assets become available through (i) the sale of additional shares in our public
offering; (ii) prepayment and repayment at maturity of' existing loans; (iii)
borrowed funds; and (iv) dividends reinvested under our Dividend Reinvestment
Plan.
Results of' Operation
In 1996, we made loans to seven churches in the aggregate amount of $2,802,000,
with an average loan size being $400,000. We also purchased in the secondary
market for $46,412 (which includes $407 in accrued interest) first mortgage
church bonds in the face amount of $50,000 and purchased for $72,800 second
mortgage church bonds in the face amount of $100,000. As we began active
business operations on April 15, 1996, results of operations through December
31, 1996 are reflective of only 255 days of operations.
During the fiscal year ended December 31,1997, we funded an additional five
first mortgage loans and three second mortgage loans to churches for an
aggregate amount of $2,665,712, and purchased $2,000 principal amount of first
mortgage church bonds for a purchase price of $871.
During the fiscal year ended December 31, 1998, we funded an additional six
first mortgage loans and two second mortgage loans to churches totaling
$1,793,750 and $355,000 respectively. We also purchased $925,300 principal
amount of first mortgage church bonds for a purchase price of $922,445. During
the fiscal year ending December 31, 1998, two first mortgage loans and one
second mortgage loan in the amounts of' $730,000 and $350,000 respectively, were
repaid by the borrowing churches in accordance with the terms of each loan. We
had two first mortgage church bonds called for redemption (early repayment by
the issuing organization). These two bonds paid all principal and interest to
which we were entitled. The face amount of these bonds was $33,300. We paid
$29,225 for both bonds.
Our operating income for the nine month period ended September 30, 1999 was
$700,857 on total revenues of $813,616. Interest income earned on our portfolio
of loans was $594,889. Excluded from revenue for the nine month period ended
September 30, 1999 is $93,036 of origination income or "points" we received,
recognition of which under generally accepted accounting principles ("GAAP")
must be deferred over the expected life of each loan. However, under tax
principles, origination income is recognized in the period received.
Accordingly, because our status as a real estate investment trust requires,
among other things, the distribution to shareholders of at least 95% of "Taxable
Income," the dividends we declared and paid to shareholders for our quarters
ended March 31, June 30, 1999 and September 30, 1999 included origination income
even though it is not recognized in its entirety for the period under GAAP.
10
<PAGE>
Total assets for the nine month period ended September 30, 1999 increased by
$2,598,135 from September 30, 1998 to $11,679,145 primarily as a result of the
sale and issuance of common stock pursuant to our second public offering, the
proceeds of' which were deployed into new mortgage loans, church bonds purchased
in the secondary market, and cash and cash equivalent money market obligations.
Shareholders' equity rose by $2,215,440 to $10,889,254 for the same reason. Our
liabilities at the end of the nine month period ended September 30, 1999 were
primarily comprised of "Deferred Income, " reflecting our practice of
recognizing our origination income -- fees charged to borrowers at the
commencement of its loans -- over the life of each loan and dividends declared
as of September 30, 1999 but not yet paid.
Our second public offering concluded January 22, 1999. A total of 779,759 shares
were sold during our second public Offering at $10.00 per share. We had
1,196,873 shares outstanding as of September 30, 1999. During the nine month
period ended September 30, 1999, we made ten additional mortgage loans totaling
$4,206,000. In addition, we purchased $2,230,000 principal amount of first
mortgage church bonds for $2,219,198, (which includes $18 in accrued interest).
All loans we make range in interest rate charged to the borrowers from 9.75% to
12.00%. As of September 30, 1999, the average, principal-adjusted interest rate
on our portfolio of loans was 10.62%. Our portfolio of bonds has all average
current yield of 9.30%.
Our Board of' Directors declared a quarterly dividend of $.1875 for each share
held of record on March 31, 1999, a quarterly dividend of $.21875 for each share
held of record on June 30, 1999 and a quarterly dividend of $.221825 for each
share held of record on September 30, 1999, representing a 7.50%, 8.75% and
9.125% annualized yield to shareholders, respectively.
Liquidity and Capital Resources
Our revenues are derived principally from interest income, and
secondarily, from origination fees and renewal fees generated by mortgage loans
made by us. We also earn income through interest on funds that are invested
pending their use in funding mortgage loans or distributions of dividends to our
shareholders, and on income generated on church bonds we own. We generate
revenue through (i) permitted temporary investments of the net proceeds from the
sale of the shares, and (ii) making mortgage loans to churches and other
non-profit religious organizations. Our principal expenses are advisory fees,
legal and accounting fees, communications costs with our shareholders, and the
fees and expenses of our stock transfer agent, registrar and dividend
reinvestment agent.
Our future capital needs are expected to be met by (i) additional sale
of our shares to the public (ii) prepayment, repayment at maturity and renewal
of mortgage loans made by us, and (iii) borrowed funds. We believe that the
"rolling" effect of mortgage loans maturing, together with dividends reinvested
under our Dividend Reinvestment Plan, will provide a supplemental source of
capital to fund our business operations in future years. Nevertheless, we
believe that it may be desirable, if not necessary, to sell additional shares of
common stock, in order to enhance our capacity to make mortgage loans on a
continuous basis. There can be no assurance that we will be able to raise
additional capital on terms acceptable for such purposes. We may borrow funds in
an amount not to exceed 50% of our average invested assets in order to increase
our lending capacity. We have obtained a $1,000,000 secured line of credit
facility with Beacon Bank, Shorewood, Minnesota. We intend to use this loan
facility to enable us to close loans on schedule while we may not otherwise have
adequate funds on hand. The Beacon Bank line of credit is secured by church
bonds owned by us. We have utilized this line of credit and had a current
outstanding balance of $320,000 as of September 30, 1999. We expect to pay off
our line of credit promptly as cash becomes available, an re-use it again as we
deem necessary.
We do not believe that inflation at the national level has made a
material impact upon our operations since our inception, nor do we believe that
currently anticipated levels of inflation in 1999 will have a material impact on
our business. Nevertheless, if the rate of inflation increased materially, we
would expect interest rates generally to increase, thus possibly making the
yield to investors in the shares less attractive as compared to alternative
fixed-income investments. If the rate of inflation decreases materially, the
interest rates likely would decline or remain at current levels. A decline in
interest rates generally would require us to offer lower rates to borrowers
which, in turn, could result in lower yields to our shareholders.
11
<PAGE>
PART II
OTHER INFORMATION
Item 4. Submission of Matters to a Vote of Security Holders
No matters were submitted to a vote of security holders during the
quarter ended September 30, 1999.
Item 6. Exhibits and Reports on Form 8-K
a) Exhibits filed with Form 10-QSB
None
b) Reports on Form 8-K
None
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused the report to be signed on its behalf by the
undersigned, thereunto duly authorized.
Dated: November 12, 1999
AMERICAN CHURCH MORTGAGE COMPANY
By: /s/ David G. Reinhart
David G. Reinhart
Chief Executive Officer, Treasurer
(and Chief Financial Officer)
By: /s/ V. James Davis
V. James Davis
Vice President and Secretary
file:f:\acmc\10q3rd99.wpd
12
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-END> SEP-30-1999
<CASH> 317,681
<SECURITIES> 2,055,586
<RECEIVABLES> 9,231,329
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 519,071
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 11,679,145
<CURRENT-LIABILITIES> 655,176
<BONDS> 0
0
0
<COMMON> 11,969
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 11,679,145
<SALES> 0
<TOTAL-REVENUES> 322,250
<CGS> 0
<TOTAL-COSTS> 40,758
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 281,492
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 281,392
<EPS-BASIC> .24
<EPS-DILUTED> .24
</TABLE>
