Company: CPSS
Filing Date: 2025-03-12
Form Type: 10-K
Source: 0001683168-25-001548
Chunk: 68

Company: CONSUMER PORTFOLIO SERVICES, INC.
Filing Date: 2025-03-12
Form: 10-K
Item: Item 1
Chunk 68
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 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, 2023. This 20.8% decrease was primarily
driven by the decrease in origination and servicing fees we earned from third party receivables. These fees were $7.3 million for the
year ended December 31, 2024 and $9.3 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 interest rate applicable
to such receivables). Interest expense is 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 and, more significantly, on the interest
rates on these facilities. Employee costs and general and administrative expenses are incurred as applications and automobile contracts
are received, processed and serviced. Factors that affect 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 processed and serviced, which can be measured by our managed portfolio outstanding.

Other