Annual report [Section 13 and 15(d), not S-K Item 405]

Warehouse Lines of Credit (Tables)

v3.26.1
Warehouse Lines of Credit (Tables)
 12 Months Ended
Dec. 31, 2025
Warehouse Lines Of Credit  
Schedule of Line of Credit Facilities The underlying warehouse lines of credit agreements, as described below, contain financial and other debt covenants.
December 31, 2025
Lender Borrowing Capacity Outstanding Borrowings Weighted-Average Interest Rate on Outstanding Borrowings
Bank A1
$ 8.0  $ 6.3  6.10  %
Bank B2
$ 10.0  $ 2.3  6.46  %
Bank C3
$ 10.0  $ 6.5  6.24  %
December 31, 2024
Lender Borrowing Capacity Outstanding Borrowings Weighted-Average Interest Rate on Outstanding Borrowings
Bank A1
$ 10.0  $ 2.5  6.84  %
Bank B2
$ 10.0  $ 2.0  7.01  %
(1) Bank A's interest on funds borrowed is equal to the greater of 5.50%, or the 30-Day Secured Overnight Financing Rate ("SOFR") plus 2.438%. The agreement ends on August 31, 2026. Encompass was in compliance with debt covenants under this facility as of December 31, 2025.
(2) Bank B's interest on funds borrowed is equal to the note rate. The agreement does not expire and can be canceled by either party at any time. As of December 31, 2025, Encompass was not in compliance with certain of these debt covenants under this facility related to earnings. Encompass has requested a waiver for the non-compliant covenant and expects to receive the waiver from the bank. If the Company is unable to obtain the covenant waiver, the bank would have the right to terminate the credit facility.

(3) Bank C's interest on funds borrowed is equal to the greater of 4.50% or the 1-month CME Term SOFR plus 2.40%. The agreement ends in May 2026. Encompass was in compliance with debt covenants under this facility as of December 31, 2025.