Company: CPSS
Filing Date: 2025-03-12
Form Type: 10-K
Source: 0001683168-25-001548
Chunk: 1399

Company: CONSUMER PORTFOLIO SERVICES, INC.
Filing Date: 2025-03-12
Form: 10-K
Item: Item 8
Chunk 1399
---
 
     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 31, 2024, 2023 and 2022:

    Schedule of allowance for finance credit losses 

    December 31, 

    2024  
    2023  
    2022 

    (In thousands) 
  
    Balance at beginning of period 
    $2,869  
    $21,753  
    $56,206 
  
    Provision for credit losses on finance receivables 
     (5,307) 
     (22,300) 
     (28,100)
  
    Charge-offs 
     (1,846) 
     (8,064) 
     (18,319)
  
    Recoveries 
     4,717  
     11,480  
     11,966 
  
    Balance at end of period 
    $433  
    $2,869  
    $21,753 

The following table presents
the gross charge-offs by year of origination of our finance receivables for the year ended December 31, 2024, 2023, and 2022:

    Schedule of charge-offs for financed receivables 

    December 31, 

    2024  
    2023  
    2022 
  
    Annual Vintage Pool 
    (In thousands)