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Joint Venture Investment (Notes)
12 Months Ended
Dec. 31, 2020
Equity Method Investments and Joint Ventures [Abstract]  
Equity Method Investments and Joint Ventures Disclosure Investment in Joint Venture
In 2008, we merged the assets of our wholly owned subsidiary, IBT Title and Insurance Agency, Inc. (“IBT Title”) into a 50/50 joint venture with Corporate Title Agency, LLC, a third-party business based in Traverse City, Michigan, to form CSS.  The purpose of the joint venture was to help IBT Title expand its service area and to take advantage of economies of scale.  As a 50% owner of the membership units of this entity, we accounted for our investment under the equity method of accounting, and our share of income and loss from the joint venture is included in noninterest income.
CSS is a limited liability company.  Therefore, federal taxable income and deductions are passed through to the members, and no provision for federal income taxes is reflected in the condensed statements of income. During the second half of 2019, a new line of business was proposed by the CSS General Manager which did not interest us as it was unrelated to the Bank's core business. Subsequently, the General Manager of CSS chose to have a company valuation performed by a third party during the fourth quarter of 2019 for purposes of investor planning. The independent, third-party valuation identified that CSS’ intangible assets required an impairment of $7,133. As a 50% owner of the membership units of CSS, we recognized the reduced value of our investment which resulted in a reduction to income of $3,566 in the fourth quarter of 2019.
We sold our membership interest in CSS during the fourth quarter of 2020, which reduced equity securities without readily determinable fair values $4,246 when compared to December 31, 2019. As a result of this transaction, we received a $1,000 down payment, recorded a receivable in the amount of $3,227 and recorded a loss of $394. In 2020, our share of income was $577, including the reduction of $394 from the sale.