Company: CPSS
Filing Date: 2025-08-11
Form Type: 10-Q
Source: 0001683168-25-005901
Chunk: 35

Company: CONSUMER PORTFOLIO SERVICES, INC.
Filing Date: 2025-08-11
Form: 10-Q
Item: Part I, Item 8
Chunk 35
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 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 three months ended June
30, 2025 and 2024:

    Three Months Ended June 30, 

    2025  
    2024 

    (Dollars in thousands) 

    Average  
       
    Interest  
    Average  
       
    Interest 

    Balance  
    Interest  
    Yield  
    Balance  
    Interest  
    Yield 
  
    Interest Earning Assets 

    Loan Portfolio 
    $3,682,959 
    $105,362  
     11.4%  
    $3,122,278  
    $88,367  
     11.3% 

Other income was $1.4 million for the three months ended June
30, 2025, compared to $2.0 million for the comparable period in 2024. This 30.4% decrease was primarily driven by the decrease in origination
and servicing fees we earned from third party receivables. These fees were $1.4 million for the quarter ended June 30, 2025, compared
to $1.7 million in the prior year period. 

Expenses.  Our operating expenses
consist largely of interest expense, employee costs, sales and general and administrative expenses. 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 automobile and automobile finance market environments, and macroeconomic factors such as interest rates and changes in
the unemployment level.

Employee costs include base
salaries, commissions and bonuses paid to employees, and certain expenses related to the accounting treatment of outstanding stock options
and are one of our most significant operating expenses. These costs (other than those relating to stock options) generally fluctuate with
the level of applications and automobile contracts purchased and serviced.

Other operating expenses consist
largely of facilities expenses, telephone and