Company: CPSS
Filing Date: 2025-08-11
Form Type: 10-Q
Source: 0001683168-25-005901
Chunk: 42

Company: CONSUMER PORTFOLIO SERVICES, INC.
Filing Date: 2025-08-11
Form: 10-Q
Item: Part I, Item 8
Chunk 42
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 year period. The
interest yield on our total loan portfolio increased from 11.3% in the prior year period to 11.4% in the current year period. The interest
yield on receivables measured at fair value is reduced to take account of expected losses and is therefore less than the yield on other
finance receivables. The table below shows the average balance and interest yield of our loan portfolio for the six months ended June
30, 2025 and 2024:

    Six Months Ended June 30, 

    2025 
    2024 

    (Dollars in thousands) 

    Average  
       
    Interest  
    Average  
       
    Interest 

    Balance  
    Interest  
    Yield  
    Balance  
    Interest  
    Yield 
  
    Interest Earning Assets 

    Loan Portfolio 
    $3,627,800 
    $207,295  
     11.4%  
    $3,058,047  
    $172,655  
     11.3% 

 38 

Other income was $2.8 million
for the six months ended June 30, 2025 compared to $4.5 million for the comparable period in 2024. This
36.4% decrease was primarily driven by the decrease in origination and servicing fees we earned from third party receivables. These fees
were $2.8 million for the six months ended June 30, 2025 compared to $3.8 million in the prior year period. 

Expenses.  Our operating expenses
consist largely of interest expense, provision for credit losses, employee costs, sales and general and administrative expenses. Provision
for credit losses is affected by the balance and credit performance of our portfolio of finance receivables (other than our portfolio
of finance receivables measured at fair value, as to which expected credit losses have the effect of reducing the internal rate of return
or the recorded value applicable to such receivables). Interest expense is significantly affected by the volume of automobile contracts
we purchased during the trailing 12-month period and the use of our warehouse facilities and asset-backed securitizations to finance those
contracts. Employee costs and general and administrative expenses are incurred as applications and automobile contracts are received,
processed and serviced. Factors that affect profit margins and net income include changes in the