Company: CPSS
Filing Date: 2025-08-11
Form Type: 10-Q
Source: 0001683168-25-005901
Chunk: 38

Company: CONSUMER PORTFOLIO SERVICES, INC.
Filing Date: 2025-08-11
Form: 10-Q
Item: Part I, Item 8
Chunk 38
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4
     
    6.56%
  
    September 2024
     
    5.52%
  
    January 2025
     
    5.88%
  
    May 2025
     
    5.96%

Interest expense on warehouse
credit line debt increased by $2.5 million to $8.2 million for the three months ended June 30, 2025, compared to $5.7 million in the prior
year period. The increase was primarily due to the higher utilization of our credit lines during the quarter compared to last year. The
average balance of our warehouse debt was $353.2 million during the three months ended June 30, 2025, compared to $215.4 million for the
same period in 2024. The annualized average rate on our credit line debt was 9.3% for the three months ended June 30, 2025, compared to
10.6% in the prior year period.

Interest expense on subordinated
renewable notes was $684,000 for the three months ended June 30, 2025. The average balance of the outstanding subordinated debt was $28.0
million for the three months June 30, 2025, compared to $22.3 million for the prior year period. The average yield of subordinated notes
is 9.7% for both current and in the prior period.

In June 2021, March 2024, and
again on June 30, 2025, we completed a securitization of residual interests from other previously issued securitizations in the amount
of $50 million, $50 million, and $65 million, respectively. Interest expense for these residual interest financings was $4.2 million for
the three months ended June 30, 2025, compared to 2.5 million for the same period in 2024.

 36 

The following table presents
the components of interest income and interest expense and a net interest yield analysis for the three-month periods ended June 30, 2025,
and 2024:

    Three Months Ended June 30, 

    2025  
    2024 

    (Dollars in thousands) 

    Average  
       
    Annualized Average  
    Average  
       
    Annualized Average 

    Balance (1)