Company: CPSS
Filing Date: 2025-03-12
Form Type: 10-K
Source: 0001683168-25-001548
Chunk: 1108

Company: CONSUMER PORTFOLIO SERVICES, INC.
Filing Date: 2025-03-12
Form: 10-K
Item: Item 6
Chunk 1108
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of finance receivables 

    December 31, 

    2024  
    2023 
  
    Delinquency Status 
    (In thousands) 
  
    Current 
    $2,994  
    $17,771 
  
    31-60 days 
     1,184  
     5,626 
  
    61-90 days 
     971  
     3,087 
  
    91 + days 
     271  
     1,069 

    $5,420  
    $27,553 

Finance receivables totaling
$271,000 and $1.1 million at December 31, 2024 and 2023, respectively, have been placed on non-accrual status as a result of their delinquency
status.

Allowance for Credit Losses
– Finance Receivables 

The allowance for credit losses
is a valuation account that is deducted from the amortized cost basis of finance receivables to present the net amount expected to be
collected. Charge offs are deducted from the allowance when management believes that collectability is unlikely.

Management estimates the allowance
using relevant available information, from internal and external sources, relating to past events, current conditions and, reasonable
and supportable forecasts. We believe our historical credit loss experience provides the best basis for the estimation of expected credit
losses. Consequently, we use historical loss experience for older receivables, aggregated into vintage pools based on their calendar quarter
of origination, to forecast expected losses for less seasoned quarterly vintage pools.

We measure the weighted average
monthly incremental change in cumulative net losses for the vintage pools in the relevant historical period. For the pools in the relevant
historical period, we consider each pool’s performance from its inception through the end of the current period. We then apply the
results of the historical analysis to less seasoned vintage pools beginning with each vintage pool’s most recent actual cumulative
net loss experience and extrapolating from that point based on the historical data. We believe the pattern and magnitude of losses on
older vintages allows us to establish a reasonable and supportable forecast of less seasoned vintages.

     F-17 

CONSUMER PORTFOLIO SERVICES, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Our contract purchase guidelines
are designed to produce a homogenous portfolio. For key