Company: CPSS
Filing Date: 2025-03-12
Form Type: 10-K
Source: 0001683168-25-001548
Chunk: 23

Company: CONSUMER PORTFOLIO SERVICES, INC.
Filing Date: 2025-03-12
Form: 10-K
Item: Item 1
Chunk 23
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 financings.

 12 

When structured to be treated
as a secured financing for accounting purposes, the subsidiary is consolidated with us. Accordingly, the sold automobile contracts and
the related debt appear as assets and liabilities, respectively, on our consolidated balance sheet. We then periodically (i) recognize
interest and fee income on the contracts, (ii) recognize interest expense on the securities issued in the transaction and (iii) record
as expense a provision for credit losses on the contracts. Effective January 1, 2018, we adopted the fair value method of accounting for
finance receivables acquired on or after that date. For these receivables, we recognize interest income on a level yield basis using that
internal rate of return as the applicable interest rate. We do not record an expense for provision for credit losses on these receivables
because such credit losses are included in our computation of the appropriate level yield.

Since 1994 we have conducted
103 term securitizations of automobile contracts that we originated under our regular programs. As of December 31, 2024, 17 of those securitizations
are active and all are structured as secured financings. We generally conduct our securitizations on a quarterly basis, near the beginning
of each calendar quarter, resulting in four securitizations per calendar year. However, we completed only three securitizations in 2020.
In April 2020 we postponed our planned securitization due to the onset of the pandemic and the effective closure of the capital markets
in which our securitizations are executed. Subsequently we successfully completed securitizations in June and September 2020.

Our recent history of term securitizations is summarized
in the table below:

    Recent Asset-Backed Securitizations 
  
    $ in thousands 
  
    Period 
    Number of Term
                                                                   Securitizations 
    Amount of
                                                                   Receivables 
  
    2018 
    4 
    883,452 
  
    2019 
    4 
    1,014,124 
  
    2020 
    3 
    741,867 
  
    2021 
    4 
    1,145,002 
  
    2022 
    4 
    1,537,383 
  
    2023 
    4 
    1,352,114