Equity Method Investment

6 Months Ended

Jun. 30, 2021

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, a direct mortgage lender, and recognizes its ownership as an equity method investment initially recorded at fair value and subsequently adjusted for the Company's share of ICM's earnings. 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 $4.5 million and $11.0 million for the three and six months ended June 30, 2021.

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


	Three Months Ended June 30,		Six Months Ended June 30,
(Dollars in thousands)	2021		2021
Total revenues	$	40,080	$	90,877
Net income	10,921		$	26,785

Gain on sale of loans	$	44,308	$	91,902
Volume of loans sold	$	1,492,309	$	3,270,399

As of June 30, 2021 and December 31, 2020, the mortgage pipeline was $1.24 billion and $1.54 billion, respectively.