Official Workbook report source text
Official Workbook source-navigation report record. No analysis has been added.
- Report number/id
- R17
- Report title
- R17 Lutheran Church Extension Fund
- Workbook start page
- 98
- Workbook end page
- 100
- Source pages
- 98, 99, 100
- Source status
- source_checked
- Committee
- Not available
R17 Lutheran Church Extension Fund “Christ Is Risen Indeed” Organization Mission Statement To start, sustain and strengthen LCMS ministries through finan- cial and strategic partnerships. Our vision of growing ministry opportunities lives through our core values: be faithful, pursue excellence and innovation, inspire belief through partnerships, endure balancing resources and risk, and learn continually. The Lutheran Church Extension Fund (LCEF) remains in a strong financial position and has joyfully fulfilled its commitment to provide the financial resources necessary to support the church in her work. Below is an overview, and more details can be found in the Offering Circular and Ministry and Business Plan, published annually. Investments The laddered fixed income portfolio as of June 30, 2025, totaled $253.1 million with an interest yield of 2.89 percent compared to a yield of 2.71 percent a year ago. The long-term reserve portfolio (consisting of fixed income, equities and other non-correlated in- vestments) totaled $91.7 million. Net market value gains for the period ending June 30, 2025, to- taled $20.6 million with laddered fixed income gains of $11.3 mil- lion and long-term portfolio gains of $9.3 million. Inclusive of the investment income as of June 30, 2025, the total return for the lad- dered portfolio was 6.75 percent. Within the long-term portfolio, the equity, semiliquid and illiquid portfolios earned a total return gain of 15.7 percent, 8.33 percent, and 6.85 percent, respectively. The total return on the long-term portfolio was a gain of 13.76 percent. releases on missions, the two kingdoms, and transgenderism offer a picture of what we hope that series will become. CPH is unequivocally committed to publishing doctrinally pure resources. The main pillar of this commitment is evaluation of scriptural and confessional fidelity through the Synod’s estab- lished Doctrinal Review (DR) process. In isolated cases, historical- ly significant works of Lutheran theology have been translated into English and published by CPH without going through DR. These include Luther’ s Works, Walther’ s Works, Chemnitz’ s Works, and Johann Gerhard’s Theological Commonplaces. While we do not suggest that these authors are incapable of error, we share with the respective seminary professors and Synod entities with whom we partner on these projects the view that the faithful contribution of these works justifies their publication. In the very rare case of mod- ern works of this sort (like Albrecht Peters’s Commentary on Lu- ther’ s Catechisms and Hellmut Lieberg’s Office and Ordination in Luther and Melanchthon), we have included a special notice in the books, designating them as study resources and making clear that they have not been submitted to DR. No modern books of this sort have been in any stage of development in the last triennium, nor are any at present, although projects like Luther’ s Works continue. During the past triennium, CPH invested heavily in a mobile app version of The Lutheran Study Bible, now available on both iOS and Android devices. This past January, we launched a Book of Concord website featuring Concordia: The Lutheran Confessions at bookofconcord.cph.org. This is the most widely used edition of the Book of Concord in the LCMS today, and we encourage all con- gregations to link to it on their websites as an essential component of their faith statements. CPH is thankful for the rostered church workers throughout the LCMS and prays for them weekly in our chapel services. For many years, we have provided rostered church workers with a 20 percent discount on most products purchased for individual use. During this past triennium, we have begun providing free shipping for these purchases as well. In response to 2023 Res. 11-03A, CPH has been working in col- laboration with the Office of National Mission to prepare a resource on the Synod’s ministry and outreach to communities of color. As a result of 223 Res. 12-01A, CPH staff worked closely with LCMS School Ministry to produce and publish Lutheran Academic Stan- dards. Likewise, CPH was represented in the last triennium on the Created Male and Female Task Force, as mandated in 2023 Res. 1-04A, and continues to provide new resources that faithfully ad- dress human sexuality. We also continue to increase our partnership efforts with cor - porate Synod and her agencies and partners not only in response to convention resolutions but also in the course of our normal service to the Synod. While space constraints prevent a complete listing, here is a representative sampling: We have worked closely with the Office of the President, Office of International Mission, and the International Lutheran Council to get our confessional Lutheran re- sources into the hands of pastors in our partner churches around the world. CPH created a mini curriculum in support of the Set Apart to Serve initiative. And our partnership with Concordia Historical Institute to produce books vital to preserve and communicate the history of our work as a Synod continues with several new volumes completed and planned. We invite all church workers and lay members of LCMS con- gregations to visit us at cph.org to view the 8,000-plus books, cur- 2026 Convention Workbook 99 OFFICER, BOARD, AND COMMISSION REPORTS loans at the end of fiscal year 2025. RCW housing lending has also grown substantially, from 8 percent of the portfolio a decade ago to nearly 18 percent of the portfolio and over $301 million in total loans today. In fiscal year 2025, LCEF closed $329.7 million in new loan commitments. Congregation lending led with $197.4 million in closings, followed by national lending at $83.4 million and RCW housing lending at $48.9 million. Action on Convention Overtures LCEF addressed the 2023 convention overtures that called the organization to specific areas of work during the triennium. The 2023 Res. 11-03A encouraged LCEF to support the procla- mation of the Gospel across ethnic and linguistic lines. In response, LCEF participated in multiple ethnic ministry gatherings, including the Black Clergy Caucus, the Evangelical Mekane Yesus Lutheran Fellowship in North America, the Multi-Asian Gathering, and the Multiethnic Symposium. These engagements provided opportuni- ties to share information about LCEF services and how they can be used to support the unique ministry needs of these communities. The 2023 Res. 2-02A and 2-05 directed LCEF to collaborate with and provide resources to the Office of International Mission (OIM). That relationship remained strong throughout the trienni - um, with expanded opportunities for joint promotion and partner - ship. Lending to international partners continued and was further strengthened by bylaw changes approved in 2023. LCEF is cur - rently working with the Latin America and Caribbean Region to develop a replicable church planting financial model for use across the region. In addition, a partnership between LCEF and OIM will support the expansion of a seminary facility in Argentina, with ad- ditional opportunities in Africa and Asia under exploration. The 2023 Res. 6-01 directed LCEF and other entities to en- dorse, advocate for, and engage with Set Apart to Serve to recruit, train, and support pastors, teachers, and other professional church workers. In response, LCEF provided funding for the development and deployment of Set Apart to Serve school curriculum resources. LCEF teams received training on these resources and intentionally integrated and promoted them across LCEF solutions to support church worker recruitment and ongoing development. Strategic Plan Beginning in October 2023, the LCEF Board of Directors en- gaged in conversations around strengthening and expanding the “financial resources and related services for ministry, witness, and outreach within the Synod” (Bylaw 3.6.4). Those conversations led the board to reconsider the mission, core values, global ends pol- icies, and key performance indicators (KPIs) that anchor this plan in our purpose, while focusing on people, partnerships, platforms, products, and profitability that will frame and focus our work over the coming years. The board believes they, and the organization, have a role and responsibility in growing the Church. That is ac- complished through the objectives and duties of the church exten - sion fund within the Synod. Yet those “financial resources and re- lated services” must never become static and stagnant. LCEF must be responsive to the needs and opportunities before the Church as she engages the world with the Gospel. Loyal investors continued to provide funds to enable LCMS ministries’ financial resources that support their efforts to expand God’s kingdom. LCEF was pleased to share earnings distribution with member districts and the Synod totaling $9.3 million for the period June 30, 2022, through 2025. Financial Trends Total assets as of June 30, 2025, amounted to $2,084.6 billion, an increase of $58.8 million from June 30, 2024. The increase was due primarily to an increase in notes and support dollars payable. LCEF continues its commitment to a strong capital and liquidity position. Liquidity at June 30, 2025, amounted to 22.7 percent of notes and support dollars payable. Notes and support dollars to- taled $1.824 billion and have increased $43.2 million since June 30, 2024. LCEF experienced an operating loss of $7.3 million for the fis- cal year ending June 30, 2025, compared to operating income of $888,000 in the prior year. The decline is the result of a contraction in net interest income due to an increase in offering rates during the year and loans lagging the repricing to the increase in cost of funds. Net interest income will improve going forward as annually ad- justable loans re-price to the increase in cost of funds and offering rates decline. Net income for the fiscal year ending June 30, 2025, totaled $16.2 million compared to net income of $16.8 million the prior year. The capital to asset ratio was 12.02 percent as of June 30, 2025, compared to 11.63 percent a year ago. Loans LCEF supported ministry expansion by closing over $1.28 billion of loans over the past four years. LCEF continues to track loans in three main categories: congregation lending, national lend- ing (institutions, high schools, colleges and recognized service or - ganizations [RSOs]), and rostered church worker (RCW) housing lending. It should be noted congregation lending, while still robust, continues to decline as an overall percentage of the portfolio. For fiscal year 2025, congregation lending totaled $852.7 mil- lion or 50 percent of the total loan portfolio. Ten years ago, congre- gation lending accounted for 75 percent of the total loan portfolio. During the same period, national lending grew from 17 percent of the portfolio to nearly 32 percent, with over $540 million of total 2026 Convention Workbook 100 OFFICER, BOARD, AND COMMISSION REPORTS opinion of LCEF management, the portion paid by LCEF will not materially adversely affect the continued operations of LCEF or its ability, in the ordinary course of its business, to timely meet any of its debts and obligations, including the notes. Bart Day, President and CEO