Company: CPSS
Filing Date: 2025-05-12
Form Type: 10-Q
Source: 0001683168-25-003436
Chunk: 111

Company: CONSUMER PORTFOLIO SERVICES, INC.
Filing Date: 2025-05-12
Form: 10-Q
Item: Part I, Item 8
Chunk 111
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 individual contracts such as obligor credit history,
job stability, residence stability and ability to pay, there is relatively little variation from the average for the portfolio. Similarly,
for key structural characteristics such as loan-to-value, length of contract, monthly payment and amount financed, there is relatively
little variation from the average for the portfolio. Consequently, we do not believe there are significant differences in risk characteristics
between various segments of our portfolio.

Our methodology incorporates
historical pools that are sufficiently seasoned to capture the magnitude and trends of losses within those vintage pools. Furthermore,
the historical period encompasses a substantial volume of receivables over periods that include fluctuations in the competitive landscape,
the Company’s rates of growth, size of our managed portfolio and fluctuations in economic growth and unemployment.

In consideration of the depth
and breadth of the historical period, and the homogeneity of our portfolio, we generally do not adjust historical loss information for
differences in risk characteristics such as credit or structural composition of segments of the portfolio or for changes in environmental
conditions such as changes in unemployment rates, collateral values or other factors. Throughout our history we have observed how events
such as extreme weather, political unrest, and other qualitative factors have influenced the performance of our portfolio. Consequently,
we have considered how such qualitative factors may affect future credit losses and have incorporated our judgement of the effect of those
factors into our estimates.

The following table presents
the amortized cost basis of our finance receivables by annual vintage as of March 31, 2025, and December 31, 2024:

    Schedule of finance receivables by annual vintage 

    March 31,  
    December 31, 

    2025  
    2024 

    (In thousands) 
  
    Annual Vintage Pool 

    2015 and prior 
     158  
     294 
  
    2016 
     739  
     1,336 
  
    2017 
     2,212  
     3,790 

    $3,109  
    $5,420 

The following table presents
a summary of the activity for the allowance for finance credit losses for the three-month periods ended March 31, 2025, and 2024:

    Schedule of allowance for finance credit losses 

    Three Months Ended 

    March 31, 

    2025  
    2024 

    (In thousands