Company: CPSS
Filing Date: 2025-08-11
Form Type: 10-Q
Source: 0001683168-25-005901
Chunk: 37

Company: CONSUMER PORTFOLIO SERVICES, INC.
Filing Date: 2025-08-11
Form: 10-Q
Item: Part I, Item 8
Chunk 37
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 $12.0 million increase in interest expense compared to the prior year period
was largely due to increases in the average balance of our securitization trust debt, warehouse credit line debt and residual interest
financing debt. To a lesser extent, the increase is also due to the increase in the interest rate on our securitization trust debt.

Interest on securitization
trust debt increased by $7.6 million for the three months ended June 30, 2025, compared to the prior period. The average balance of securitization
trust debt increased to $2,811.9 million for the three months ended June 30, 2025, compared to $2,555.2 million for the three months
ended June 30, 2024. The annualized average rate on our securitization trust debt was 6.5% for the three months ended June 30, 2025,
compared to 5.9% in the prior year period. For each quarterly securitization transaction, the blended cost of funds is ultimately the
result of many factors including the market interest rates for benchmark swaps of various maturities against which our bonds are priced
and the margin over those benchmarks that investors are willing to accept, which in turn, is influenced by investor demand for our bonds
at the time of the securitization. These and other factors have resulted in fluctuations in our securitization trust debt interest costs.
The blended interest rates of our recent securitizations are summarized in the table below:

 35 

    Blended Cost of Funds on Recent Asset-Backed Term Securitizations
  
    Period
     
    Blended Cost of Funds
  
    January 2022
     
    2.54%
  
    April 2022
     
    4.83%
  
    July 2022
     
    6.02%
  
    October 2022
     
    8.48%
  
    January 2023
     
    6.48%
  
    April 2023
     
    7.17%
  
    July 2023
     
    7.13%
  
    October 2023
     
    7.89%
  
    January 2024
     
    6.51%
  
    April 2024
     
    6.69%
  
    June 202