Collection › LCMS Convention Workbook (St. Louis, Missouri) › 2019 · 67th Convention, Tampa › Page 128
LCMS Convention Workbook St. Louis, Missouri — 2019, Page 128

Scan: The Lutheran Church—Missouri Synod
Transcription machine transcription, uncorrected

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.