Company: CPSS
Filing Date: 2025-05-12
Form Type: 10-Q
Source: 0001683168-25-003436
Chunk: 134

Company: CONSUMER PORTFOLIO SERVICES, INC.
Filing Date: 2025-05-12
Form: 10-Q
Item: Part I, Item 8
Chunk 134
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 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)

    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