Quarterly report [Sections 13 or 15(d)]

Warehouse Lines of Credit

v3.25.3
Warehouse Lines of Credit
 9 Months Ended
Sep. 30, 2025
Warehouse Lines Of Credit  
Warehouse Lines of Credit Warehouse Lines of Credit
Encompass Lending Group (“Encompass”), a wholly-owned subsidiary of the Company, utilizes line of credit facilities as a means of temporarily financing mortgage loans pending their sale. The underlying warehouse lines of credit agreements, as described below, contain financial and other debt covenants. The warehouse credit facilities are classified as current liabilities on our balance sheets. The below table has dollars in millions.
September 30, 2025
Lender Borrowing Capacity Outstanding Borrowings Weighted -Average Interest Rate on Outstanding Borrowings
Bank A1
$ 10.0  $ 4.7  6.68  %
Bank B2
$ 10.0  $ 1.9  7.05  %
Bank C3
$ 10.0  $ 2.3  6.53  %
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 5.5%, 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 September 30, 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. Encompass was in compliance with debt covenants under this facility as of September 30, 2025.

(3) Bank C's interest on funds borrowed is equal to the greater of 4.5%, or the 30-Day Secured Overnight Financing Rate (SOFR) plus 2.4%. The agreement ends in May 2026. Encompass was in compliance with debt covenants under this facility as of September 30, 2025.