Company: CPSS
Filing Date: 2025-08-11
Form Type: 10-Q
Source: 0001683168-25-005901
Chunk: 47

Company: CONSUMER PORTFOLIO SERVICES, INC.
Filing Date: 2025-08-11
Form: 10-Q
Item: Part I, Item 8
Chunk 47
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(1)  Average balances are based on month end balances except for warehouse lines of credit, which are based on daily balances.

(2)  Annualized net interest income divided by average interest earning assets.

    Six Months Ended June 30, 2025

Compared to June 30, 2024 

    Total  
    Change Due  
    Change Due 

    Change  
    to Volume  
    to Rate 

    (In thousands) 
  
    Interest Earning Assets 
    $  

    Loan portfolio 
    $34,640  
    $29,696  
    $4,944 

    Interest Bearing Liabilities 

    Warehouse lines of credit 
     4,707  
     8,423  
     (3,716)
  
    Residual interest financing 
     3,214  
     1,585  
     1,629 
  
    Securitization trust debt 
     16,742  
     5,084  
     11,658 
  
    Subordinated renewable notes 
     281  
     297  
     (16)

     24,944  
     15,390  
     9,554 

    Net interest income/spread 
    $9,696  
    $14,306  
    $(4,610)

 41 

Our evaluation of the allowance for credit losses indicated that the reserves against future losses are adequate
as of June 30, 2025. The allowance applies only to our finance receivables originated through December 2017, which we refer to as our
legacy portfolio. Finance receivables that we have originated since January 2018 are accounted for
at fair value. Under the fair value method of accounting, we recognize interest income net of expected credit losses. Thus, no provision
for credit loss expense is recorded for finance receivables measured at fair value. 

For the six months ended June
30, 2025, we recorded a reduction to provision for credit losses on finance receivables in the amount of $1.8 million. The reserve decrease
was primarily due to better than expected recovery rates and a decrease in lifetime expected credit losses resulting from improved credit
performance as our previous estimates for future losses exceeded actual incurred losses. This compares to $3.6 million in reductions to
provision for credit losses for