Company: CPSS
Filing Date: 2025-03-12
Form Type: 10-K
Source: 0001683168-25-001548
Chunk: 690

Company: CONSUMER PORTFOLIO SERVICES, INC.
Filing Date: 2025-03-12
Form: 10-K
Item: Item 3
Chunk 690
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 2023

Revenues.  During the year ended
December 31, 2024, our revenues were $393.5 million, an increase of $41.5 million, or 11.8%, from the prior year revenues of $352.0 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 years ended December 31, 2024 and 2023 include fair value marks
of $21.0 and $12.0 million, respectively, to the carrying value of the portion of the receivables portfolio accounted for 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. The fair value mark in the current
period also includes an increase in our estimates of cash receipts from interest and fees compared to our estimates at the time of acquisition.
For the year ended December 31, 2024, 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 $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