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 2009 Converge Cornerstone Fund Mid-Year Report Continuing to meet the financing needs of our churches and provide a competitive rate of return for our investing constituency remains the mission of the Cornerstone Fund. The current credit crunch has had a direct impact on our churches’ ability to secure financing. Where once a church was able to find local financing and Cornerstone was just one of their lending options, there are now many instances in which Cornerstone is the only viable consideration. This has resulted in unprecedented levels of loan inquiries and applications. For a short time in early 2009, the Fund was unable to meet the surge in demand for loans. However, investors responded enthusiastically to a series of bonus rate term certificates that were offered in the first and second quarters, resulting in a growing list of new investors and an infusion of capital. By early Spring we were able to resume loan activity and make contact with churches that had been placed on a financing waiting list. Interest rates for loans and fixed rate investments remained fairly static throughout the first six months of 2009. The Fund monitors key commercial market indicators which influence its rate structure and has remained competitive against bank c.ds and credit union offerings. With the stock market performance still unsteady and the uncertain timing and viability of the economy’s recovery, the Fund has remained an attractive option for fixed rate investments. The Fund welcomed 84 new investors during the first half of 2009, representing over $2.5 million in term and demand certificate investments. Loan activity remains brisk. The Fund approved 15 loans totaling $13.1 million in the first 6 months of 2009. And, through the economic turmoil that has affected personal, corporate and church finances, our churches have remained faithful to their mortgage responsibility. The Fund has a delinquency rate well below 1%. Our official name is now the Converge Cornerstone Fund. The addition of “Converge” to our name is to be in harmony with the new missional name of the BGC….Converge Worldwide. The Cornerstone Fund remains committed to supporting the ministries of Converge Worldwide (BGC) and in late December, the Board of Directors approved, for the third consecutive year, a $1,000,000 gift to Converge Worldwide to support general ministry efforts. Paul Kruit
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