Official Workbook PDF page source text

LCMS 2026 Convention Workbook: Reports and Overtures, PDF page 134

2026 Convention Workbook
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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