Company: CPSS
Filing Date: 2025-03-12
Form Type: 10-K
Source: 0001683168-25-001548
Chunk: 644

Company: CONSUMER PORTFOLIO SERVICES, INC.
Filing Date: 2025-03-12
Form: 10-K
Item: Item 2
Chunk 644
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,
the historical period encompasses a substantial volume of receivables over periods that include fluctuations in the competitive landscape,
the Company’s rates of growth, size of our managed portfolio and fluctuations in economic growth and unemployment.

In consideration of the depth
and breadth of the historical period, and the homogeneity of our portfolio, we generally do not adjust historical loss information for
differences in risk characteristics such as credit or structural composition of segments of the portfolio or for changes in environmental
conditions such as changes in unemployment rates, collateral values or other factors. Throughout our history we have observed how events
such as extreme weather, political unrest, and other qualitative factors have influenced the performance of our portfolio. Consequently,
we have considered how such qualitative factors may affect future credit losses and have incorporated our judgement of the effect of those
factors into our estimates.

The following table presents
the amortized cost basis of our finance receivables by annual vintage as of December 31, 2024 and 2023:

    Schedule of amortized cost basis of finance receivables 

    December 31, 

    2024  
    2023 
  
    Annual Vintage Pool 
    (In thousands) 
  
    2015 and prior 
    $294  
    $2,158 
  
    2016 
     1,336  
     7,673 
  
    2017 
     3,790  
     17,722 

    $5,420  
    $27,553 

For our receivables originated prior to January
2018, we maintain an allowance for credit losses on automobile contracts held on our balance sheet, which reflects our estimates of probable
credit losses that can be reasonably estimated. The Company recorded a reduction to provision for credit losses on finance receivables
in the amount of $5.3 million, $22.3 million, and $28.1 million for the years ended December 31, 2024, 2023, and 2022, respectively. The
reserve decrease was primarily due to a decrease in lifetime expected credit losses resulting from better than expected credit performance
for these receivables.

     F-18 

CONSUMER PORTFOLIO SERVICES, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The following table presents
a summary of the activity for the allowance for finance credit losses, for the years ended December