Company: CPSS
Filing Date: 2025-05-12
Form Type: 10-Q
Source: 0001683168-25-003436
Chunk: 64

Company: CONSUMER PORTFOLIO SERVICES, INC.
Filing Date: 2025-05-12
Form: 10-Q
Item: Part I, Item 2
Chunk 64
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 class with a coupon of 11.00%.

Receivables we originate and
service for third-parties are not pledged to our warehouse facilities or included in our securitizations.

Financial Covenants 

Certain of our securitization
transactions and our warehouse credit facilities contain various financial covenants requiring certain minimum financial ratios and results.
Such covenants include maintaining minimum levels of liquidity and net worth and not exceeding maximum leverage levels. In addition, certain
of our debt agreements other than our term securitizations contain cross-default provisions. Such cross-default provisions would allow
the respective creditors to declare a default if an event of default occurred with respect to other indebtedness of ours, but only if
such other event of default were to be accompanied by acceleration of such other indebtedness. As of March 31, 2025, we were in compliance
with all such covenants.

Results
of Operations

Comparison of Operating Results
for the three months ended March 31, 2025, with the three months ended March 31, 2024

Revenues.  During
the three months ended March 31, 2025, our revenues were $106.9 million, an increase of $15.2 million, or 16.6%, from the prior year revenue
of $91.7 million. The primary reason for the increase in revenues is the increase in interest income resulting from the increase in the
average outstanding balance of finance receivables measured at fair value. Revenues for the three months ended March 31, 2025, include
a $3.5 million mark up 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,