Company: CPSS
Filing Date: 2025-03-12
Form Type: 10-K
Source: 0001683168-25-001548
Chunk: 210

Company: CONSUMER PORTFOLIO SERVICES, INC.
Filing Date: 2025-03-12
Form: 10-K
Item: Item 1A
Chunk 210
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of $21.0 and $12.0 million, respectively, to the carrying value of the portion of the receivables portfolio accounted for at fair value.
The marks are estimates based on our evaluation of the appropriate fair value and future earnings rate of existing receivables compared
to recently acquired receivables and increases or decreases in our estimates of future net losses. The fair value mark in the current
period also includes an increase in our estimates of cash receipts from interest and fees compared to our estimates at the time of acquisition.
For the year ended December 31, 2024, our re-evaluation of the fair values of these receivables resulted in a mark up for certain older
receivables and a mark down to the fair values of newer receivables. The fair value mark up on the older receivables exceeded the mark
down to the newer receivables resulting in a net mark up of $21.0 million.

Interest income for the year
ended December 31, 2024 increased $34.7 million, or 10.6%, to $364.0 million from $329.2 million in the prior year. The primary reason
for the increase in interest income is the 10.2% increase in the average balance of our loan portfolio over the prior year period. The
interest yield on our total loan portfolio stayed the same at 11.3% in the prior year period to 11.3% in the current year period. The
table below shows the average balance and interest yield of our loan portfolio for the years ended December 31, 2024 and 2023:

    Year Ended December 31, 

    2024  
    2023 

    (Dollars in thousands) 

    Average  
       
    Interest  
    Average  
       
    Interest 

    Balance  
    Interest  
    Yield  
    Balance  
    Interest  
    Yield 
  
    Interest Earning Assets 

    Loan portfolio 
    $3,209,988  
    $363,962  
     11.3%  
    $2,913,571  
    $329,219  
     11.3% 

 40 

Other income was $8.5 million
for the year ended December 31, 2024 compared to $10.8 million for the year ended December 31,