Company: CPSS
Filing Date: 2025-03-12
Form Type: 10-K
Source: 0001683168-25-001548
Chunk: 923

Company: CONSUMER PORTFOLIO SERVICES, INC.
Filing Date: 2025-03-12
Form: 10-K
Item: Item 5
Chunk 923
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 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, 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