Quarterly report [Sections 13 or 15(d)]

Warehouse Lines of Credit (Tables)

v3.25.2
Warehouse Lines of Credit (Tables)
 6 Months Ended
Jun. 30, 2025
Warehouse Lines Of Credit  
Summary of Credit Facilities The below table has dollars in millions.
June 30, 2025
Lender Borrowing Capacity Outstanding Borrowings Weighted -Average Interest Rate on Outstanding Borrowings
Bank A1
$ 10.0  $ 4.3  6.74  %
Bank B2
$ 10.0  $ 4.5  6.27  %
Bank C3
$ 10.0  $ 3.8  6.72  %
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 5.00%, or the 30-Day Secured Overnight Financing Rate (SOFR) plus 2.438%. The agreement ends in August 2025. Encompass was in compliance with debt covenants under this facility as of June 30, 2025.

(2) Bank B's interest on funds borrowed is equal to the note rate. The agreement ends in September 2025. As of June 30, 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. Bank B’s warehouse line is collateralized by the mortgage loans held for sale.

(3) Bank C's interest on funds borrowed is equal to the greater of 4.50%, or the 30-Day Secured Overnight Financing Rate (SOFR) plus 2.40%. The agreement ends in May 2026. Encompass was in compliance with debt covenants under this facility as of June 30, 2025.