Quarterly report pursuant to Section 13 or 15(d)

Warehouse Lines of Credit (Tables)

v3.24.3
Warehouse Lines of Credit (Tables)
 9 Months Ended
Sep. 30, 2024
Warehouse Lines Of Credit  
Summary of Credit Facilities The below table has dollars in millions.
September 30, 2024 December 31, 2023
Lender Borrowing Capacity Outstanding Borrowings Weighted -Average Interest Rate on Outstanding Borrowings Borrowing Capacity Outstanding Borrowings Weighted -Average Interest Rate on Outstanding Borrowings
Bank A1
$ 10.0  $ 3.5  7.49  % $ 7.5  $ 3.5  7.57  %
Bank B2
$ 10.0  $ 5.2  6.93  % $ 10.0  $ 4.8  7.35  %
(1) Bank A's interest on funds borrowed is equal to the greater of 5.00%, or the 30-Day Secured Overnight Financing Rate (SOFR) plus 2.438%. The agreement ends in July 2025. Encompass was in compliance with debt covenants under this facility as of September 30, 2024.
(2) Bank B's interest on funds borrowed is equal to the greater of 5.75% or the 1-month CME Term SOFR plus 2.00%. The agreement ends in October 2024. As of September 30, 2024, Encompass was not in compliance with certain of these debt covenants under this facility related to earnings. Pursuant to the agreement signed on September 7, 2024, Encompass received a waiver for the non-compliant covenant. Bank B was replaced with Bank C in November 2024. Bank C extends a borrowing capacity of $10.0 million.