The Apology of the Augsburg Confession states this about the Invisible and Visible Church in Article VII & VIII, The Church:
The Seventh Article of our Confession, in which we said that the Church is the congregation of saints, they have condemned, and have added a long disquisition, that the wicked are not to be separated from the Church since John has compared the Church to a threshing-floor on which wheat and chaff are heaped together, Matt. 3:12, and Christ has compared it to a net in which 2] there are both good and bad fishes, Matt. 13:47. It is, verily, a true saying, namely, that there is no remedy against the attacks of the slanderer. Nothing can be spoken with such care that it can escape detraction. 3] For this reason we have added the Eighth Article, lest any one might think that we separate the wicked and hypocrites from the outward fellowship of the Church, or that we deny efficacy to Sacraments administered by hypocrites or wicked men. Therefore there is no need here of a long defense against this slander. The Eighth Article is sufficient to exculpate us. For we grant that in this life hypocrites and wicked men have been mingled with the Church, and that they are members of the Church according to the outward fellowship of the signs of the Church, i.e., of Word, profession, and Sacraments, especially if they have not been excommunicated. 4] Neither are the Sacraments without efficacy for the reason that they are administered by wicked men; yea, we can even be right in using the Sacraments administered by wicked men. For Paul also predicts, 2 Thess. 2:4, that Antichrist will sit in the temple of God, i.e., he will rule and bear office in the Church. 5] But the Church is not only the fellowship of outward objects and rites, as other governments, but it is originally a fellowship of faith and of the Holy Ghost in hearts. [The Christian Church consists not alone in fellowship of outward signs, but it consists especially in inward communion of eternal blessings in the heart, as of the Holy Ghost, of faith, of the fear and love of God]; which fellowship nevertheless has outward marks so that it can be recognized, namely, the pure doctrine of the Gospel, and the administration of the Sacraments in accordance with the Gospel of Christ. [Namely, where God's Word is pure, and the Sacraments are administered in conformity with the same, there certainly is the Church, and there are Christians.] And this Church alone is called the body of Christ, which Christ renews [Christ is its Head, and] sanctifies and governs by His Spirit, as Paul testifies, Eph. 1:22 sq., when he says: And gave Him to be the Head over all things to the Church, which is His body, 6]the fulness of Him that filleth all in all. Wherefore, those in whom Christ does not act [through His Spirit] are not the members of Christ. This, too, the adversaries acknowledge, namely, that the wicked are dead members of the Church. Therefore we wonder why they have found fault with our description [our conclusion concerning the Church] 7] which speaks of living members. Neither have we said anything new. Paul has defined the Church precisely in the same way, Eph. 5:25f , that it should be cleansed in order to be holy. And he adds the outward marks, the Word and Sacraments. For he says thus: Christ also loved the Church, and gave Himself for it, that He might sanctify and cleanse it with the washing of water by the Word, that He might present it to Himself a glorious Church, not having spot, or wrinkle, or any such thing, but that it should be holy and without blemish. In the Confession we have presented this sentence almost in the very words. Thus also the Church is defined by the article in the Creed which teaches us to believe that there is a holy Catholic Church. 8] The wicked indeed are not a holy Church. And that which follows, namely, the communion of saints, seems to be added in order to explain what the Church signifies, namely, the congregation of saints, who have with each other the fellowship of the same Gospel or doctrine [who confess one Gospel, have the same knowledge of Christ] and of the same Holy Ghost, who renews, sanctifies, and governs their hearts.