Company: CPSS
Filing Date: 2025-08-11
Form Type: 10-Q
Source: 0001683168-25-005901
Chunk: 45

Company: CONSUMER PORTFOLIO SERVICES, INC.
Filing Date: 2025-08-11
Form: 10-Q
Item: Part I, Item 8
Chunk 45
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3
     
    7.13%
  
    October 2023
     
    7.89%
  
    January 2024
     
    6.51%
  
    April 2024
     
    6.69%
  
    June 2024
     
    6.56%
  
    September 2024
     
    5.52%
  
    January 2025
     
    5.88%
  
    May 2025
     
    5.96%

Interest expense on warehouse
credit line debt increased by $4.7 million to $14.7 million for the six months ended June 30, 2025 compared to $10.0 million in the prior
year period. The increase was due to higher rates on the debt during the six month period compared to last year. The average balance of
our warehouse debt was $314.7 million during the six months ended June 30, 2025 compared to $190.1 million for the same period in 2024.
The annualized average rate on our credit line debt was 9.4% for the six months ended June 30, 2025 compared to 10.5% in the prior year
period.

Interest expense on subordinated
renewable notes was $1.3 million for the six months ended June 30, 2025. The average balance of the outstanding subordinated debt increased
by $5.9 million to $27.5 million for the six months ended June 30, 2025 compared to $21.6 million for the prior year. The average yield
of subordinated notes was 9.7% in the current and prior period.

In June 2021, we completed a
residual interest financing of our residual interests from previously issued securitizations in the amount of $50.0 million. In March
2024, we completed a new residual interest financing of our residual interests from previously issued securitizations in the amount of
$50.0 million. Interest expense on the residual interest financing was $7.0 million for the six months ended June 30, 2025 compared to
$3.7 million for the same period in 2024.

 40 

The following table presents
the components of interest income and interest expense and a net interest yield analysis for the six-month periods ended June 30, 2025