XML 24 R13.htm IDEA: XBRL DOCUMENT
v3.23.2

Equity Method Investments | 6 Months Ended
--- | ---
Jun. 30, 2023
Equity Method Investments and Joint Ventures [Abstract] |
Equity Method Investments | Note 5 – Equity Method Investments In accordance with Rules 3-09 and 4-08(g) of Regulation S-X, we must assess whether our equity method investments are significant. In evaluating the significance of these investments, we performed the income, investment and asset tests described in S-X 1-02(w) for each equity method investment. Rule 4-08(g) of Regulation S-X requires summarized financial information for all equity method investees in a quarterly report if any of the equity method investees, individually or in the aggregate, result in any of the tests exceeding 10%. Under the income test, our proportionate share of the revenue from equity method investments in the aggregate exceeded the applicable threshold under Rule 4-08(g) of 10%, accordingly, we are required to provide summarized income statement information for all investees for all periods presented. Our equity method investments are initially recorded at cost, including transaction costs to obtain the equity method investment, and are subsequently adjusted for changes due to our share of the entities' earnings. ICM The following table presents summarized income statement information for ICM for the periods shown:
|  | Three Months Ended June 30, |  | Six Months Ended June 30,
(Dollars in thousands) |  | 2023 |  | 2022 |  | 2023 |  | 2022
Total revenues |  | $ | 12,239 |  |  | $ | 22,063 |  |  | $ | 21,645 |  |  | $ | 44,179 |
Net income (loss) |  | (1,089) |  |  | 1,938 |  |  | $ | (4,171) |  |  | $ | 5,169 |
Gain on sale of loans |  | 7,240 |  |  | 14,872 |  |  | $ | 12,688 |  |  | $ | 29,961 |
Volume of loans sold |  | 409,222 |  |  | 692,553 |  |  | $ | 712,004 |  |  | $ | 1,380,646 |
Our ownership percentage of ICM is 40% and it was determined that we have significant influence over the operations and decision making at ICM. Accordingly, the investment is accounted for as an equity method investment. Our share of ICM's net loss totaled $0.4 million and $1.7 million for the three and six months ended June 30, 2023, respectively and our share of ICM's net income totaled $0.7 million and $2.0 million for the three and six months ended June 30, 2022, respectively. As of June 30, 2023 and December 31, 2022, the mortgage pipeline was $631.9 million an d $678.3 million, respectively. Warp Speed The following table presents summarized income statement information for our equity method investment in Warp Speed for the periods shown:
(Dollars in thousands) |  | Three Months Ended June 30, 2023 |  | Six Months Ended June 30, 2023 |  |  |  |  |  |
Total revenues |  | $ | 39,816 |  |  | $ | 75,333 |  |  |  |  |  |  |
Net income |  | 6,243 |  |  | 8,925 |  |  |  |  |  |  |
Gain on sale of loans |  | 12,464 |  |  | 25,146 |  |  |  |  |  |  |
Volume of loans sold |  | 307,999 |  |  | 598,206 |  |  |  |  |  |  |
Our ownership percentage of Warp Speed is 37.5% and it was determined that we have significant influence over its operations and decision making. Accordingly, the investment is accounted for as an equity method investment. At the time of acquisition, we made a policy election to record our proportionate share of net income of the investee on a three month lag. Our share of Warp Speed's net income totaled $2.3 million and $3.3 million for the three and six months ended June 30, 2023, respectively. As of June 30, 2023, the mortgage pipeline was $116.9 million. Ayers Socure II Our ownership percentage of Ayers Socure II is 10% and it was determined that we have significant influence over the company. Accordingly, the investment is accounted for as an equity method investment. Our share of net income from Ayers Socure II for the three and six months ended June 30, 2023 was not significant. The equity method investment in Ayers Socure II is not considered a significant investment based on the criteria of Rules 3-09 and 4-08(g) of Regulation S-X. Ayers Socure II's sole business is ownership of equity securities in Socure Inc. (“Socure”). In addition to our equity method investment in Ayers Socure II, we also have direct equity security ownership interest in Socure. With the combination of our investments in both Ayers Socure II and Socure directly, we own less than 1% of Socure in the aggregate.

X
- References No definition available. + Details
Name: | us-gaap_EquityMethodInvestmentsAndJointVenturesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for equity method investments and joint ventures. Equity method investments are investments that give the investor the ability to exercise significant influence over the operating and financial policies of an investee. Joint ventures are entities owned and operated by a small group of businesses as a separate and specific business or project for the mutual benefit of the members of the group. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 323 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 3 -Subparagraph (a)(3) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481687/323-10-50-3 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 323 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 3 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481687/323-10-50-3 Reference 3: http://www.xbrl.org/2003/role/recommendedDisclosureRef -Topic 323 -SubTopic 740 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481543/323-740-50-2 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Name Accounting Standards Codification -Topic 323 -Publisher FASB -URI https://asc.fasb.org//323/tableOfContent + Details
Name: | us-gaap_EquityMethodInvestmentsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration