Company: CPSS
Filing Date: 2025-05-12
Form Type: 10-Q
Source: 0001683168-25-003436
Chunk: 37

Company: CONSUMER PORTFOLIO SERVICES, INC.
Filing Date: 2025-05-12
Form: 10-Q
Item: Part I, Item 1
Chunk 37
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Comparison of Operating Results
for the three months ended March 31, 2025, with the three months ended March 31, 2024

Revenues.  During
the three months ended March 31, 2025, our revenues were $106.9 million, an increase of $15.2 million, or 16.6%, from the prior year revenue
of $91.7 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 three months ended March 31, 2025, include
a $3.5 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 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 $3.5 million. There was a $5.0 million mark
up to the fair value portfolio in the prior year period.

 29 

Interest income for the three
months ended March 31, 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)