# LCMS Convention Workbook_St. Louis Missouri_2019_S128 # Machine transcription, uncorrected — CHI Digital Archive (demonstration) 128 OFFICER, BOARD, AND COMMISSION REPORTS •• District Entries—Since the last LCMS convention in 2016, following prayerful deliberation and diligent research and analysis, the Ohio and South Dakota District Church Extension Funds elected to become the 30th and 31st participating districts of LCEF effective March 31, 2017, and Oct. 15, 2017, respectively. •• Student Marketing Campaign—For seven years, Concordia University System (CUS) students from across the country came together for a unique competition and fellowship opportunity at LCEF’s National Student Marketing Competition. We enjoyed the ideas and excitement shared between students and professors alike. After long and prayerful discussions in 2018, LCEF determined to discontinue the competition with a goal to use those funds to focus on creating new opportunities to partner with the CUS in the future. In the same year, LCEF introduced its first high school competition, the Yes! Challenge, hosting three St. Louis area Lutheran schools on May 2, 2018. Students prepared business case studies and presentations that were evaluated by a panel of four judges. Plans are to continue and expand for 2019. Financial Trends •• Total Assets—Total assets as of Dec. 31, 2018, amounted to $1.874 billion, an increase of $45.2 million since June 30, 2018. The increase was due primarily to LCEF’s 40-month 4-percent promotion. Prior fiscal year-end data: Total Assets •• FY 2016 FY 2017 FY 2018 $1,807,841 $1,838,901 $1,828,692 Liquidity/Notes & Support Dollars Payable—LCEF continues its commitment to a strong capital and liquidity position. Liquidity remained relatively unchanged at 17.6 percent of investor payables. Notes and support dollars totaled $1.645 billion and have increased $46 million since June 30, an increase driven by the 40th anniversary promotion. The increase has been the source of funding for the loan receivable increase of $41.5 million through Dec. 31, 2018. Prior fiscal year-end data: FY 2016 FY 2017 FY 2018 Liquidity 22.5% 19.62% 17.6% Notes & Support Dollars Payable $1,592,080 $1,616,634 $1,599,497 •• Strong Income—LCEF achieved operating income totaling $4.7 million for the period ending Dec. 31, 2018, a decrease from $7.1 million the prior year. The decline is the result of a contraction in net interest income as loans lag repricing to the increase in cost of funds. Net interest income will improve going forward as annually adjustable loans re-price to the increase in cost of funds. The operating income goal for the end of the year is $9.1 million. Net income 2019 Convention Workbook for the period ended Dec. 31, 2018, totaled $616,000 compared to net income of $6.8 million the prior year. Net income will need to reach $6.7 million to distribute operating results. The net income goal for the end of the year is $7.7 million. LCEF’s base capital ratio as of Dec. 31, 2018, was 11.91 percent compared to 11.22 percent a year ago. The capital to asset goal for the end of the year is 12 percent. Prior fiscal year-end data: FY 2016 FY 2017 FY 2018 Net Interest Income $35,558 $36,647 $37,416 Operating Income $6,301 $12,628 $11,242 Other Income/ Expense $3,255 $691 $922 Net Income $8,012 $8,769 $7,095 Capital to Asset Ratio 11.26% 11.74% 12.2% Conclusion LCEF has been blessed with loyal support from its investors and faithful commitment from its borrowers. As a result, LCEF is positioned with a strong capital and liquidity position and has funds available to support loans to ministries within the United States and throughout the world. LCEF seeks ways to advance innovation and creativity in our approach. We are committed to exploring responsible lending options that challenge historical approaches and meet the needs of our partners. We encourage all our national and district staff members and volunteers to seek God’s guidance in turning any perceived “roadblocks” into opportunities to serve and support efforts to share His Word. We seek to share the resources entrusted to us, and the talents of our staff and volunteers, as we are guided by the Lord. We seek to be a catalyst for energizing ministry, and we thank God for the privilege of serving. Soli Deo Gloria! Bart Day, President/CEO R19 LCMS Foundation With thanksgiving to God for His many blessings, the LCMS Foundation marks its 60th year of service to the people and organizations of The Lutheran Church—Missouri Synod. We celebrate the generosity of God’s people in supporting the work of His church during those years and ask the Lord’s continued blessing on our humble efforts that through His blessing and guidance the successful performance of our tasks will help bring glory to His name. The Foundation primarily provides two services to the LCMS: planned giving work among LCMS members and the investment management of these gifts and other assets of the church. During fiscal years 2016–2018, the LCMS Foundation distributed more than 8,300 gifts totaling $101.5 million to several thousand LCMS organizations. These ministries include our congregations and schools, seminaries, districts, and ministries providing missionary support, rural and urban outreach, housing assistance, and much more.