EQUITY METHOD INVESTMENT

12 Months Ended

Dec. 31, 2020

Equity Method Investments and Joint Ventures [Abstract]

Note 5 – Equity Method Investment

In the third quarter of 2020, the Company acquired a portion of ICM and recognizes its ownership as an equity method investment initially recorded at fair value. In accordance with Rule 8-03(b)(3) of Regulation S-X, the Company must assess whether its equity method investment is a significant equity method investment. In evaluating the significance of this investment, the Company performed the income, asset, and investment tests described in S-X 3-05 and S-X 1-02(w). Rule 8-03(b)(3) of Regulation S-X requires summarized financial information in a quarterly report if any of the three tests exceeds 20%. Under the income test, the Company’s proportionate share of its equity method investee's aggregated net income exceeded the applicable threshold of 20%, and accordingly it is required to provide summarized income statement information for this investee for all periods presented. The Company's share of net income from its equity method investment totaled $24.2 million for the year ended December 31, 2020.

The following table provides summarized income statement information for the Company's equity method investment. As ICM did not exist prior to July 1, 2020, no historical financial information is presented.


	Twelve Months Ended December 31,
(Dollars in thousands)	2020
Total revenues	$	120,323
Gross profit	59,659
Net income	59,761

Gain on sale of loans	100,402
Volume of loans sold	2,948,724

As of December 31, 2020, the locked mortgage pipeline was $1.54 billion. For more information, please see Note 24 – Acquisitions and Divestitures.