Company: CPSS
Filing Date: 2025-08-11
Form Type: 10-Q
Source: 0001683168-25-005901
Chunk: 41

Company: CONSUMER PORTFOLIO SERVICES, INC.
Filing Date: 2025-08-11
Form: 10-Q
Item: Part I, Item 8
Chunk 41
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 June 30, 2025 compared to $431.9
million in the prior year period.

Occupancy expenses was $1.4
million for the three months ending June 30, 2025, which is up from $1.3 million in the second quarter of 2024.

Depreciation and amortization
expenses increased to $249,000 compared to $221,000 in the previous year.

For the three months ended June 30, 2025, we recorded
income tax expense of $2.2 million, representing a 31% effective tax rate. In the prior period, our income tax expense was $2.0 million,
representing a 30% effective tax rate.

Comparison of Operating Results for the
six months ended June 30, 2025 with the six months ended June 30, 2024

Revenues.  During
the six months ended June 30, 2025, our revenues were $216.6 million, an increase of $29.0 million, or 15.5%, from the prior year revenue
of $187.6 million. The primary reason for the increase in revenues is the increase in interest income resulting from the increase in the
average outstanding balance of finance receivables measured at fair value. Revenues for the six months ended June 30, 2025 include a $6.5
million mark up to the recorded value of the finance receivables measured 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. In the current period, our re-evaluation of the fair values of these receivables resulted
in a mark up for certain receivables and a mark down to the fair values of selected receivables. The net effect of the marks to the fair
value resulted in a net mark up of $6.5 million.. There was a $10.5 million mark up to the fair value portfolio in the prior year period.

Interest income for the six
months ended June 30, 2025 increased $34.6 million, or 20.1%, to $207.3 million from $172.7 million in the prior year. The primary reason
for the increase in interest income is the 18.6% increase in the average balance of our loan portfolio over the prior