Company: CPSS
Filing Date: 2025-05-12
Form Type: 10-Q
Source: 0001683168-25-003436
Chunk: 65

Company: CONSUMER PORTFOLIO SERVICES, INC.
Filing Date: 2025-05-12
Form: 10-Q
Item: Part I, Item 2
Chunk 65
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 2025, increased $17.6 million, or 20.9%, to $101.9 million from $84.3 million in the prior year. The primary reason
for the increase in interest income is the 19.3% increase in the average balance of our loan portfolio over the prior year period. The
interest yield on our total loan portfolio increased from 11.3% in the prior year period to 11.4% in 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 March
31, 2025 and 2024:

    Three Months Ended March 31,

    2025 
    2024

    (Dollars in thousands)

    Average 
      
    Interest 
    Average 
      
    Interest

    Balance 
    Interest 
    Yield 
    Balance 
    Interest 
    Yield
  
    Interest Earning Assets 

    Loan Portfolio 
    $3,572,642  
    $101,933  
     11.40%  
    $2,993,816  
    $84,288  
     11.30% 

Other income was $1.4 million for the three months ended March
31, 2025, compared to $2.5 million for the comparable period in 2024. This 41.3% 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 March 31, 2025, compared
to $2.1 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.