XML 51 R14.htm IDEA: XBRL DOCUMENT v3.25.0.1
Equity Method Investments
 12 Months Ended
Dec. 31, 2024
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 3-09 of Regulation S-X requires separate audited financial statements of an equity method investee in an annual report if either the income or investment test exceeds 20%. Rule 4-08(g) of Regulation S-X requires summarized financial information for all equity method investees in an annual 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% for the year ended December 31, 2024, accordingly, we are required to provide summarized income statement information for all investees for all periods presented. There were no equity method investments which met any of the applicable thresholds for reporting Rule 3-09 for reporting separate financial statements as of the year ended December 31, 2024.

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 provides summarized income statement information for ICM for the years ended December 31, 2024, 2023 and 2022:
December 31,
(Dollars in thousands)202420232022
Total revenues$44,277 $39,283 $67,207 
Net income (loss)1,501 (9,418)343 
Gain on loans sold$28,032 $22,782 $44,921 
Gain (loss) on loans held for sale224 457 (2,834)
Volume of loans sold1,363,973 1,353,410 2,325,709 

Our ownership percentage of 40% of ICM allows us to have significant influence over the operations and decision making at ICM. Accordingly, the investment, which had a carrying value of $23.5 million at December 31, 2024, is accounted for as an equity method investment. Our share of net income from our investment in ICM was $0.4 million and $0.1 million for the years ended December 31, 2024 and 2022, respectively, and our share of net loss was $3.8 million for the year ended December 31, 2023. As of December 31, 2024 and 2023, the mortgage pipeline was $482.4 million and $439.0 million, respectively.

Warp Speed

The following table presents summarized income statement information for our equity method investment in Warp Speed for the periods shown:
December 31,
(Dollars in thousands)20242023
Total revenues$159,662 $143,784 
Net income288 $7,234 
Gain on loans sold$54,541 37,218 
Gain on loans held for sale3,698 $8,210 
Volume of loans sold1,624,588 $1,370,313 

Our ownership percentage of 37.5% of Warp Speed, which we acquired in October 2022, allows us to have significant influence over its operations and decision making. Accordingly, the investment, which had a carrying value of $53.2 million at December 31, 2024, 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 for the years ended December 31, 2024 and 2023 totaled $1.0 million and $2.7 million, respectively. As of December 31, 2024 and 2023, the mortgage pipeline was $543.4 million and $267.8 million, respectively.

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, which had a carrying value of $1.5 million at December 31, 2024, is accounted for as an equity method investment. Our share of net income from Ayers Socure II for the years ended December 31, 2024, 2023 and 2022 was not significant. The equity method investment in Ayers Socure II is not considered a significant investment based on the criteria
of Rule 10-01(b)(1) 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 total.