Church Financial Journey - Debt Management & Facility Planning Updates

East Ellijay Baptist Church Captivated By Christ Church Facility Planning February 2024

Remember When The Crash! 2002 2004 EEBC begun construction planning, acquisition of land and construction of current facility with approximate total cost of 6.3M. March-December 2010 the lender for our facility was closed and the FDIC was named Receiver. Our debt was 3.5M. By January 2012 our debt had grown nearly $3.8M. On March 2012 the FDIC restructured our loan Note A (1.1M), Note B (900K) & Note C (1.6M). Our monthly payment on Note A started at $5600 and by the end of the 5-year term it was $7488. Notes B & C were conditional.

Gods Amazing Grace & His Providence! From March 2012 to March 2017 we remained faithful with our agreement but by 2017 we still owed over 1.035M on Note A plus nearly 835K on Note B, and 1.6M on Note C for a total of $3.47M. Because we kept current on Notes A & B for the 5 years, we were forgiven Note C at the end of the 5 years. Praise the Lord that after the 5-year term, our debt became 1.9M! During this time, we were searching for a bank that would loan us the funds needed to acquire the note which had been sold by the FDIC to private group in CA.

God continues to Provide Uncommon Outcomes! We were prepared to borrow 1.9M but we could not find an institution to loan us that much money. CRE/ADC Ventures (the CA group) suggested we get 3 banks to give us proposals on the amount they would loan. We were hoping for 1.5M. In May 2017, for reasons not fully known, CRE/ADC agreed to sell us the note for 1.25M and the Bank of Cochran in Dublin agreed to finance with a 5-year ballon note. This gave us the opportunity to make great progress on paying down the debt. In Jan 2021, with low interest rates, we were able to re-finance the loan with UCBI. The re-finance amount was $720K.

Where are we today? Church Debt over last 15 Years Church Debt over last 15 Years 3.8 4 3.5 3.5 3 2.5 1.9 2 1.25 1.5 0.72 1 0.56 0.5 0 Dec '10 Jan '12 Mar '17 May '17 Jan '21 Jan '24 Million $ Our current loan is set for 10 years but amortized for 15 years @ 3.69 APR (Called a Balloon Loan). The loan started 1/15/2021 so we have had it for 3 years and currently we owe $560,416 on the loan. Currently we are paying $5227 monthly in P&I + $2,000 set aside for the balloon.

Budget Overview & Financial Planning General General Budget Budget Salaries Salaries & Related & Related Expenses Expenses Office & Office & General General Expenses Expenses Local & Local & State State Missions Missions Building Building& & Grounds Grounds Church Church Loan P&I Loan P&I Ministry Ministry Programs Programs Special Designated Special Designated Programs/Ministries Programs/Ministries Savings Savings Set aside Set aside for Loan for Loan Ballon Ballon Savings Savings M.Market M.Market - -Major Repairs Repairs Savings Savings- - Growth / Growth / Additional Additional Facility Facility Youth & Youth & Children s Children s Ministries Ministries Local Local Missions Missions Foreign Foreign Missions Missions Cemetery Cemetery Major

Goals (Intention or Target) Goal #1: become debt free. Goal #2: not borrow additional money. Goal #3: pay off the current debt ahead of the loan maturity date of 1/15/2031, including the Balloon Payment at the end. Goal #4: build additional Facilities to meet the needs of the church. ----------------------------------------------------------------------------------- This presentation is for goalsetting and direction so we can progress toward meeting the above goals. Any specific action taken to meet a goal will need to be approved by the church in conference. Goals or direction are subject to change based on the will of the Church body and approved in a regular conference.

Plan for meeting Goal #3 Current Loan Debt: $560,416 Estimated Balloon Payment to be paid ahead of the due date: $232,315. Approximate current savings accounts total (excluding Money Market Funds): $333,960 $333,960 Plan: Designate $ Plan: Designate $232,315 This is the balloon amount that will be due at the end of the note. This is the balloon amount that will be due at the end of the note. 232,315 from savings to pay ahead of schedule. from savings to pay ahead of schedule. Undesignated savings balance becomes Undesignated savings balance becomes $101,645. $101,645.

Goal #4 Option 1-Both at the Same Time Pay part of the loan ahead of the maturity date and continue monthly payments of $5227 and designate the rest of savings for new construction. = + the loan maturity date. the loan maturity date. $560,416 $560,416 Additional Amount Additional Amount needed to pay off the loan needed to pay off the loan completely: completely: $328,101 $328,101 Current Loan Current Loan Balance: Balance: Designate Designate $232, 315 savings to pay ahead of savings to pay ahead of $232, 315 in in Direct General Direct General Funds Set Aside for Funds Set Aside for New Construction @ New Construction @ $2,000/month $2,000/month Ge Continue UCBI monthly Continue UCBI monthly payment of $5227 for the payment of $5227 for the duration of the loan duration of the loan (between 6 (between 6- -7 years) Designate Current Savings Designate Current Savings for New Construction for New Construction $101,645 $101,645 7 years)

Goal #4 Option 2 Pay off the Loan First Pay off the entire loan before we start saving for new construction. Designate Designate $232, 315 to pay ahead of the loan to pay ahead of the loan maturity date maturity date $232, 315 in savings in savings Current Loan Current Loan Balance: Balance: Pay off the remainder Pay off the remainder of the Loan Balance of of the Loan Balance of $328,101 $328,101 = + $560,416 $560,416 Designate the savings Designate the savings balance of $101,645 for balance of $101,645 for Loan Payoff Loan Payoff Continue UCBI monthly Continue UCBI monthly payment of $5227 for the payment of $5227 for the duration of the loan. duration of the loan. Designate all Extra Funds Designate all Extra Funds toward Loan until Paid Off. toward Loan until Paid Off. Need about $226,456 Need about $226,456 Start Saving for Start Saving for New Construction New Construction

How long will it take to raise $226K? Within the General Fund Budget, over the last 3 years we paid or specifically set aside $263,545 for loan payments. From the General Fund Budget and Interest on Savings by 12/31/2024 we anticipate to loan balance to be around $185K. This is being accomplished without any special attention or campaign. While we are raising the additional funds, we are still making monthly payments to lower the loan debt.

ELIMINATING THE DEBT ELIMINATING THE DEBT 161000 161000 185000 185000 226471 226471 328116 328116 232300 232300 560416 560416 232300 232300 232300 232300 101645 101645 232300 232300 101645 101645 101645 101645 41471 41471 41471 41471 24000 24000 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 TODAY MINUS BALLOON MINUS EXTRA SAVINGS MINUS 2024 P&I MINUS 2024 SETASIDE

Items for Approval in Regular Conference on March 10, 2024 Approve all 4 goals. Goal #1: become debt free. Goal #2: not borrow additional money. Goal #3: pay off the current debt ahead of the loan maturity date of 1/15/2031, including the Balloon Payment. Goal #4: build additional Facilities to meet the needs of the church. Action Steps Proposed: Designate funds ($232,315) within savings to meet Goal #3. Designate the remainder of funds in savings (excluding Money Market Funds) to meet the needs of Goal #4 Option #1 or Goal #4 Option #2. We will have a Q&A on Sunday February 25th at 9:00am.