Apostolic Mutual Newsletter 1st Quarter 2022

THE AM QUARTERLY NEWSLETTER | 2022

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REVIVAL THROUGH CAREFULLY STEWARDING OUR FINANCES

By Felipe Lugo, Vice Chairman

MATTHEW 25:14-27 As rational beings, man can decide the best options that result in a prosperous life and enjoy the fruit of his labor. As children of God, we possess the greatest blessing this life offers. God reveals His desire through the words of the Apostle John in III John 1:2. He states we are prosperous in all things, spiritual and material, when we make wise stewardship decisions that glorify Him. This year the theme of our beloved Apostolic Assembly is “REVIVAL.” The biblical meaning of the word revival comes from the Hebrew word chayah and means, “to restore consciousness,” “to restore to a previous condition,” or “to bring back to life.” As stated in the Bible, revival means a restoration, rejuvenation, or renewal of interest after spiritual neglect, forgetfulness, or darkness. As children of God, we can implement the words of the Apostle John and take the necessary steps to prepare ourselves to be proactive in the business of the Kingdom of God. Today, the pandemic that attacks the world continues to bring many challenges and difficulties to the lives of millions of people including individuals and their families. Forced unemployment is a threat that affects the labor institutions of our brothers. To support their families, many people are willing to undergo major changes in their income, in some cases, changing their geographical location and congregations. Many districts of our Assembly have suffered from the exodus of brothers in search of a steady source of income to improve their lives due to the high cost of housing and living expenses.

DIRECTORS & EXECUTIVE OFFICERS

AM QUARTERLY NEWSLETTER JOHN FORTINO, CHAIRMAN FELIPE LUGO, VICE CHAIRMAN EDDIE CAMPA, EXECUTIVE DIRECTOR JOSEPH V. RODRIGUEZ, DIRECTOR JORGE MONTES, DIRECTOR LEOBARDO MAFFEY, DIRECTOR GIL AGUILAR, DIRECTOR SUZANNE VALENCIA, DIRECTOR YVONNE VASQUEZ, DIRECTOR GEORGE LOPEZ, DIRECTOR

In the Federal Reserve’s 2020 report, they state that 25% of Americans do not have a single penny in retirement savings. In light of this shocking U.S. retirement savings statistic, it is vital that everyone, whether 25 or 55, seriously considers a suitable savings plan to enable a comfortable and financially secure life after retirement. Apostolic Mutual can help you establish a proper plan for your family.

LOAN COMMITTEE FELIPE LUGO ELISEO RAMIREZ MATTHEW GARCIA MARTIN AMADOR MARIO LANDA

FINANCE COMMITTEE GIL AGUILAR SUZANNE VALENCIA ISAI BAEZA

COMPLIANCE COMMITTEE JORGE MONTES YVONNE VASQUEZ ERICKA JUÁREZ

STAFF

ABRAHAM MAFFEY, ACCOUNTANT ESTEBAN ROBLEDO, LOAN OFFICER GLADIA PACHECO, BUSINESS RELATIONS EVA RODRIGUEZ, ASSIST. EXECUTIVE DIRECTOR DAVID S. TELLYER, AM EDITOR DOMINIC MOSCHETTI, CREATIVE DIRECTOR

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Another survey conducted in early 2020 found that 68% of American workers believe they do not have enough money to retire. Even more troubling, is that the survey was conducted before the coronavirus, which has created even greater chaos and concerns among young and old adults regarding their savings and retirement. Studies abound on the economic future of citizens, and even the word of God speaks to us from more than 2,300 references concerning money and material possessions to enjoy a comfortable retirement.

One prime example is how the ant prepares for winter (Proverbs 6:6-8).

In this time of revival, we can raise awareness and make decisions that will bring prosperity to the future of our families. The first step is to start a savings and retirement plan. Apostolic Mutual was created with the purpose of providing a vehicle for apostolic families for savings and investments.

THE AM QUARTERLY NEWSLETTER | 2022

According to a recent Morning Consult survey, nearly a quarter of those with a savings and retirement plan started saving in their 30s, while another 25% started putting money away at age 40 or later. When it comes to saving, earlier is always better, because starting at a later age means saving more each month. Having a savings and retirement plan allows us to be more able to participate in effective stewardship.

God sees what really matters to a person by observing how one appreciates, maintains, and shares blessings. Our Lord Jesus Christ said, “For where your treasure is, there will also be your heart.” The success and progress of the Church in the Kingdom of God has much to do with the stewardship practices of God’s children. This is not to say that God’s work will not be accomplished without man, but rather that God wills His work be done through the individual and says, “Look for yourselves, that you may not lose the fruit of your labor” (II John 1:8).

I conclude my words with the words of Christ in Matthew 25, the parable of the talents, “For the Kingdom of heaven is as a man travelling into a far country, who called his own servants, and delivered unto them his goods. And unto one he gave five talents, to another two, and to another one; to every man according to his several ability; and straightway took his journey. After a long time the lord of those servants cometh, and reckoneth with them.…thou oughtest therefore to have put my money to the exchangers [Apostolic Mutual], and then at my coming I should have received mine own with usury.”

Yours in Christ, Bishop Felipe Lugo

FINANCIAL UPDATE

By Eddie Campa, Executive Director

To the General Board, Bishops, Pastors, and constituents of the Apostolic Assembly, I greet you in the precious name of Jesus.

In accordance with the Apostolic Assembly Constitution, Apostolic Mutual is publishing its annual financial report for the calendar year of 2021. Despite some of the challenges that COVID-19 presented, Apostolic Mutual continued to grow providing loans to the Apostolic Assembly churches and contributions to International Missions. With God’s help, we were able to fund over $1 million in new loans. In addition to our lending activities, we took in over $600 thousand in new Certificates of Deposit purchases. Overall, we finished the year with just above $4 million in total assets and a net income of $117,409.

On behalf of the Apostolic Mutual Team, we want to thank the General Board, the District Bishops, and our investors who have supported our loan fund. We look forward to serving more churches and increasing our efforts for 2022.

Please find the 2021 financial report which includes the Income Statement, Balance Sheet, a Loan Summary by district, and a Summary of Investments.

In His service, Pastor Eddie Campa Executive Director

THE AM QUARTERLY NEWSLETTER | 2022

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INCOME STATEMENT REPORT FINANCIAL UPDATE Apostolic Mutual

January - December 2021 INCOME STATEMENT REPORT JANUARY - DECEMBER 2021

REVENUES Interest on Loans Receivable Interest on Cash Accounts Interest Expense on Investments Interest Expense on IRAs Contributed Services Contributions 5% Miscellaneous Fee Income TOTAL REVENUES EXPENSES Staff Salary and Wages Payroll Taxes Employee Travel & Conference Officers & Directors Travel Board and Committee Expense Online Subscriptions Office Supplies Insurance Depreciation Bank Service Charges Advertising & Marketing Promotions Other Loan Servicing Fees Legal Fees Accounting Services Managements and Consulting Fees 10% Missions Contribution TOTAL EXPENSES

$

$

$

$

123,352 111 (25,255) (246) 46,800 192,178 310 337,250

31,008 3,091 6,325 118 5,450 3,520 1,609 7,349 530 1,132 7,342 1,134 3,371 22,500 44,813 70,738 9,810 219,840

Apostolic Mutual $ 117,409 TOTAL INVESTMENTS TOTAL INVESTMENTS As of December 31, 2021 AS OF DECEMBER 31, 2021

NET INCOME

Certificate of Deposit Type

4

Current Balance

6 Month CD 1 Year CD 3 Year CD 5 Year CD

$

TOTAL

$

3,000.00 1,195,826 480,192 238,779

Apostolic Mutual BALANCE SHEET continued from 3 As ofpage December 31, 2021

BALANCE SHEET AS OF DECEMBER 31, 2021

ASSETS Checking Account - ACCU Checking Account - Bank of the West Prepaid Expenses Interest Receivable Loans Receivable Furniture and Equipment Accumulated Depreciation TOTAL ASSETS

$

$

LIABILITIES Payroll Tax Liability Accrued Interest Payable Investment Certificates TOTAL LIABILITIES

$

$

UNRESTRICTED NET ASSETS

240 7 1,917,797 1,918,044 2,097,445

Apostolic Mutual

TOTAL LIABILITIES &LOAN NET ASSETS DETAIL

399,589 485,240 6,695 13,016 3,110,680 1,031 (762) 4,015,489

$

4,015,489

As ofLOAN December 31, 2021 DETAIL

AS OF DECEMBER 31, 2021 DISTRICT Central East Coast Central Texas Colorado East Los Angeles East Texas Florida IDCN Los Angeles Mid America Midwest National Missions New Mexico North Central California Northern Golden Valley Northern Pacific Coast North Texas South Texas Utah & Idaho Washington

Number of Outstanding Loans

Interest Rate %

1 3 1 3 1 1 4 3 3 2 2 1 5 1 1 1 1 2 2

4.5 4.5 4.5 4.5 4.5 4.5 4.5 4.5 4.5 4.5 4.5 4.5 4.5 4.5 4.5 4.5 4.5 4.5 4.5

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1,917,797

THE AM QUARTERLY NEWSLETTER | 2022

Original Balance Current Balance $

$

112,000 $ 102,346 100,000 432,372 195,000 78,799 250,152 438,191 188,016 128,348 263,677 39,152 847,479 150,000 24,810 135,000 95,312 168,500 115,034 3,864,188

$

112,000 75,168 96,043 304,306 180,329 51,003 198,594 390,464 128,450 50,546 188,955 20,553 773,975 129,424 13,898 78,073 60,100 163,419 95,381 3,110,680

APOSTOLIC MUTUAL INDIVIDUAL RETIREMENT ACCOUNT

BECAUSE YOUR FAMILY IS WORTH EVERY PENNY! Whether you’re just starting to think about retirement or have already built up your nest egg, an Apostolic Mutual Individual Retirement Account (IRA) ensures that your money will be there when you need it most.

IRA CERTIFICATE An IRA is also a smart supplement to an existing pension or employer-sposored retirement plan.

• You only need $1,000 to open an IRA Certificate*.

• You can invest in Traditional & Roth, or more IRA certificates.

• You will benefit from compounding interest.

FREQUENTLY ASKED QUESTIONS

What is a SEP IRA? A direct tax benefit for either the 1040 tax return or the corporate 1120 return Contribution limits apply (limitations adjusted annually) MAXIMUM: Up to 25% of annual income not to exceed $58,000 / MINIMUM: $1,000

What is a Roth IRA? No tax benefit on the 1040 tax return No income limitations (limitations adjusted annually) MAXIMUM: $6,000 (below age 50) / $7,000 (age 50 or older) / MINIMUM: $1,000

What is a Simple IRA? Small business owners with employees Employees can retain employer-matched contributions without vesting MAXIMUM: $13,500 (below age 50) / $16,500 (Workers aged 50 or older) / MINIMUM: $1,000

What is a Traditional IRA? A direct tax benefit on the 1040 tax return Contribution and income limits apply (limitations adjusted annually) MAXIMUM: $6,000 (below age 50) / $7,000 (age 50 or older) / MINIMUM: $1,000

What is an Education Savings Account?

ESA can be used for college and TK-12 educational expenses Income and age limitations apply MAXIMUM: $2,000 per year / MINIMUM: $1,000

Is a self-directed IRA secure?

Under this non-traditional method, there is minimal risk Funds are secured through current real estate holdings

For answers to additional questions, please contact us at: 909-987-3013 THE AM QUARTERLY NEWSLETTER | 2022

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THE AM QUARTERLY NEWSLETTER | 2022