Document and Entity Information - USD ($)	12 Months Ended
Document and Entity Information - USD ($)	Dec. 31, 2015	Mar. 04, 2016	Jun. 30, 2015
Document And Entity Information
Entity Registrant Name	CONSUMER PORTFOLIO SERVICES INC
Entity Central Index Key	0000889609
Document Type	10-K
Document Period End Date	Dec. 31, 2015
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Is Entity a Well-known Seasoned Issuer?	No
Is Entity a Voluntary Filer?	No
Is Entity's Reporting Status Current?	Yes
Entity Filer Category	Accelerated Filer
Entity Public Float			$ 131,404,769
Entity Common Stock, Shares Outstanding		25,186,261
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2015

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
ASSETS
Cash and cash equivalents	$ 19,322	$ 17,859
Restricted cash and equivalents	106,054	175,382
Finance receivables	1,985,093	1,595,956
Less: Allowance for finance credit losses	(75,603)	(61,460)
Finance receivables, net	1,909,490	1,534,496
Finance receivables measured at fair value	61	1,664
Furniture and equipment, net	1,715	1,161
Deferred financing costs	13,982	12,362
Deferred tax assets, net	37,597	42,847
Accrued interest receivable	31,547	23,372
Other assets	23,139	23,915
Total	2,142,907	1,833,058
Liabilities
Accounts payable and accrued expenses	29,509	21,660
Warehouse lines of credit	196,461	56,839
Residual interest financing	9,042	12,327
Debt secured by receivables measured at fair value	0	1,250
Securitization trust debt	1,731,598	1,598,496
Subordinated renewable notes	15,138	15,233
Total	1,981,748	1,705,805
COMMITMENTS AND CONTINGENCIES	0	0
Shareholders' Equity
Preferred stock, $1 par value; authorized 4,998,130 shares; none issued	0	0
Common stock, no par value; authorized 75,000,000 shares; 25,616,460 and 25,540,640 shares issued and outstanding at December 31, 2015 and 2014, respectively	81,337	80,513
Retained earnings	86,472	51,791
Accumulated other comprehensive loss	(6,650)	(5,051)
Total shareholders' equity	161,159	127,253
Total shareholders' equity and liabilities	2,142,907	1,833,058
Series A Preferred Stock [Member]
Shareholders' Equity
Preferred stock, $1 par value; authorized 4,998,130 shares; none issued	0	0
Series B Preferred Stock [Member]
Shareholders' Equity
Preferred stock, $1 par value; authorized 4,998,130 shares; none issued	$ 0	$ 0

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Dec. 31, 2015	Dec. 31, 2014
Shareholders' Equity
Preferred Stock, Par Value	$ 1	$ 1
Preferred Stock, Authorized	4,998,130	4,998,130
Preferred Stock, Issued	0	0
Preferred Stock, Outstanding	0	0
Common Stock, Par Value	$ 0	$ 0
Common Stock, Authorized	75,000,000	75,000,000
Common Stock, Issued	25,616,460	25,540,640
Common Stock, Outstanding	25,616,460	25,540,640
Series A Preferred Stock [Member]
Shareholders' Equity
Preferred Stock, Par Value	$ 1	$ 1
Preferred Stock, Authorized	5,000,000	5,000,000
Preferred Stock, Issued	0	0
Preferred Stock, Outstanding	0	0
Series B Preferred Stock [Member]
Shareholders' Equity
Preferred Stock, Par Value	$ 1	$ 1
Preferred Stock, Authorized	1,870	1,870
Preferred Stock, Issued	0	0
Preferred Stock, Outstanding	0	0

CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	12 Months Ended
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Revenues:
Interest income	$ 349,912	$ 286,734	$ 231,330
Servicing fees	319	1,376	3,093
Other income	13,419	12,146	10,405
Gain on cancellation of debt	0	0	10,947
Total	363,650	300,256	255,775
Expenses:
Employee costs	59,556	50,129	42,960
General and administrative	20,160	19,254	16,345
Interest	57,745	50,395	58,179
Provision for credit losses	142,618	108,228	76,869
Provision for contingent liabilities	0	0	7,841
Marketing	17,470	16,116	13,363
Occupancy	4,082	3,464	2,608
Depreciation and amortization	637	428	437
Total expenses	302,268	248,014	218,602
Income before income tax expense	61,382	52,242	37,173
Income tax expense (benefit)	26,701	22,726	16,168
Net income	$ 34,681	$ 29,516	$ 21,005
Earnings per share:
Basic	$ 1.34	$ 1.18	$ 0.98
Diluted	$ 1.10	$ 0.92	$ 0.67
Number of shares used in computing earnings per share:
Basic	25,935,000	25,040,000	21,538,000
Diluted	31,584,000	32,032,000	31,574,000

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Statement of Comprehensive Income [Abstract]
Net income	$ 34,681	$ 29,516	$ 21,005
Other comprehensive income (loss); change in funded status of pension plan, net of ($1,016), ($2,654) and $3,044 in tax for 2015, 2014 and 2013, respectively	(1,599)	(3,956)	4,542
Comprehensive income	$ 33,082	$ 25,560	$ 25,547

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References + Details

CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Thousands	Common Stock [Member]	Retained Earnings / Accumulated Deficit [Member]	Other Comprehensive Income / Loss [Member]	Total
Beginning balance, shares at Dec. 31, 2012	19,839,000
Beginning balance, value at Dec. 31, 2012	$ 65,678	$ 1,270	$ (5,637)	$ 61,311
Common stock issued upon exercise of options and warrants, shares	4,177,000
Common stock issued upon exercise of options and warrants, value	$ 3,297			3,297
Pension benefit obligation			4,542	4,542
Stock-based compensation	3,864			3,864
Reclassification of warrants from debt	$ 583			583
Net income		21,005		21,005
Ending balance, shares at Dec. 31, 2013	24,016
Ending balance, value at Dec. 31, 2013	$ 73,422	22,275	(1,095)	94,602
Common stock issued upon exercise of options and warrants, shares	1,525,000
Common stock issued upon exercise of options and warrants, value	$ 3,256			3,256
Pension benefit obligation			(3,956)	(3,956)
Stock-based compensation	3,835			3,835
Reclassification of warrants from debt	$ 583			0
Net income		29,516		29,516
Ending balance, shares at Dec. 31, 2014	25,541,000
Ending balance, value at Dec. 31, 2014	$ 80,513	51,791	(5,051)	127,253
Common stock issued upon exercise of options and warrants, shares	1,140,000
Common stock issued upon exercise of options and warrants, value	$ 1,726			1,726
Purchase of common stock, shares	(1,064)
Purchase of common stock, value	$ (5,926)			(5,926)
Pension benefit obligation			(1,599)	(1,599)
Stock-based compensation	$ 5,024			5,024
Reclassification of warrants from debt				0
Net income		34,681		34,681
Ending balance, shares at Dec. 31, 2015	25,617,000
Ending balance, value at Dec. 31, 2015	$ 81,337	$ 86,472	$ (6,650)	$ 161,159

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Cash flows from operating activities:
Net income	$ 34,681	$ 29,516	$ 21,005
Adjustments to reconcile net income to net cash provided by operating activities:
Accretion of deferred acquisition fees	(8,954)	(16,213)	(20,565)
Accretion of purchase discount on receivables measured at fair value	0	(283)	(1,421)
Amortization of discount on securitization trust debt	62	130	600
Amortization of discount on senior secured debt, related party	0	623	1,992
Accretion of premium on debt secured by receivables measured at fair value	0	712	2,726
Mark to fair value on debt secured by receivables at fair value	0	(123)	(747)
Mark to fair value of receivables measured at fair value	0	(27)	595
Depreciation and amortization	637	428	437
Amortization of deferred financing costs	7,017	6,767	6,803
Provision for credit losses	142,618	108,228	76,869
Provision for contingent liabilities	0	0	7,841
Stock-based compensation expense	5,024	3,835	3,864
Interest income on residual assets	(92)	(372)	0
Gain on cancellation of debt	0	0	(10,947)
Changes in assets and liabilities:
Accrued interest receivable	(8,175)	(4,702)	(8,259)
Other assets	3,237	(1,925)	(2,183)
Deferred tax assets, net	5,250	16,368	16,425
Accounts payable and accrued expenses	6,250	(7,135)	4,337
Net cash provided by operating activities	187,555	135,827	99,372
Cash flows from investing activities:
Purchases of finance receivables held for investment	(1,060,538)	(944,944)	(764,087)
Payments received on finance receivables held for investment	551,880	433,870	337,095
Payments on receivables portfolio at fair value	1,603	13,122	46,018
Proceeds received on residual interest in securitizations	0	1,158	3,970
Change in repossessions in inventory	(2,369)	(441)	(4,246)
Decreases (increases) in restricted cash and equivalents, net	69,328	(43,098)	(27,839)
Purchase of furniture and equipment	(1,191)	(823)	(477)
Net cash used in investing activities	(441,287)	(541,156)	(409,566)
Cash flows from financing activities:
Proceeds from issuance of securitization trust debt	795,000	923,000	778,000
Proceeds from issuance of subordinated renewable notes	1,551	579	1,276
Proceeds from issuance of senior secured debt, related party	0	0	5,284
Payments on subordinated renewable notes	(1,646)	(4,488)	(5,415)
Net proceeds from (repayments of) warehouse lines of credit	139,622	47,387	(12,279)
Net proceeds from (repayments of) residual interest financing debt	(3,285)	(6,769)	5,323
Repayment of securitization trust debt	(661,960)	(502,193)	(382,591)
Repayment of debt secured by receivables measured at fair value	(1,250)	(12,456)	(45,969)
Repayment of senior secured debt, related party	0	(39,182)	(18,852)
Payment of financing costs	(8,637)	(8,058)	(8,734)
Repurchase of common stock	(5,926)	0	0
Exercise of options and warrants	1,726	3,256	3,297
Net cash provided by financing activities	255,195	401,076	319,340
Increase (decrease) in cash and cash equivalents	1,463	(4,253)	9,146
Cash and cash equivalents at beginning of year	17,859	22,112	12,966
Cash and cash equivalents at end of year	19,322	17,859	22,112
Cash paid during the period for:
Interest	50,019	45,914	50,663
Income taxes	13,690	6,520	2,277
Non-cash financing activities:
Pension benefit obligation, net	1,599	3,956	(4,542)
Derivative warrants reclassified from liabilities to common stock upon amendment	$ 0	$ 0	$ 583

1. Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2015

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

Description of Business

Consumer Portfolio Services, Inc. ("CPS") was incorporated in California on March 8, 1991. CPS and its subsidiaries (collectively, the "Company") specialize in purchasing and servicing retail automobile installment sale contracts ("Contracts") originated by licensed motor vehicle dealers ("Dealers") located throughout the United States. Dealers located in California, Texas, Ohio, Florida and Georgia represented 8.9%, 7.9%, 6.5%, 5.3% and 5.2%, respectively, of contracts purchased during 2015 compared with 8.7%, 10.0%, 5.7%, 5.0%, and 4.4% respectively in 2014. No other state had a concentration in excess of 5.0% in 2015. We specialize in contracts with vehicle purchasers who generally would not be expected to qualify for traditional financing provided by commercial banks or automobile manufacturers’ captive finance companies.

We are subject to various regulations and laws as they relate to the extension of credit in consumer credit transactions. Failure to comply with such laws and regulations could have a material adverse effect on the Company.

Principles of Consolidation

The Consolidated Financial Statements include the accounts of Consumer Portfolio Services, Inc. and its wholly-owned subsidiaries, certain of which are special purpose subsidiaries ("SPS"), formed to accommodate the structures under which we purchase and securitize our contracts. The Consolidated Financial Statements also include the accounts of CPS Leasing, Inc., an 80% owned subsidiary. All significant intercompany balances and transactions have been eliminated in consolidation.

Cash and Cash Equivalents

For purposes of the statements of cash flows, we consider all highly liquid debt instruments with original maturities of three months or less to be cash equivalents. Cash equivalents consist of cash on hand and due from banks and money market accounts. Substantially all of our cash is deposited at three financial institutions. We maintain cash due from banks in excess of the banks' insured deposit limits. We do not believe we are exposed to any significant credit risk on these deposits. As part of certain financial covenants related to debt facilities, we are required to maintain a minimum unrestricted cash balance. As of December 31, 2015, our unrestricted cash balance was $19.3 million, which exceeded the minimum amounts required by our financial covenants.

Finance Receivables

Finance receivables, which we have the intent and ability to hold for the foreseeable future or until maturity or payoff, are presented at cost. All finance receivable contracts are held for investment. Interest income is accrued on the unpaid principal balance. Origination fees, net of certain direct origination costs, are deferred and recognized in interest income using the interest method without anticipating prepayments. Generally, payments received on finance receivables are restricted to certain securitized pools, and the related contracts cannot be resold. Finance receivables are charged off pursuant to the controlling documents of certain securitized pools, generally as described below under Charge Off Policy. Management may authorize an extension of payment terms if collection appears likely during the next calendar month.

Our portfolio of finance receivables consists of small-balance homogeneous contracts that are collectively evaluated for impairment on a portfolio basis. We report delinquency on a contractual basis. Once a Contract becomes greater than 90 days delinquent, we do not recognize additional interest income until the obligor under the Contract makes sufficient payments to be less than 90 days delinquent. Any payments received on a Contract that is greater than 90 days delinquent are first applied to accrued interest and then to principal reduction.

Allowance for Finance Credit Losses

In order to estimate an appropriate allowance for losses likely incurred on finance receivables, we use a loss allowance methodology commonly referred to as "static pooling," which stratifies the finance receivable portfolio into separately identified pools based on their period of origination, then uses historical performance of seasoned pools to estimate future losses on current pools. Historical loss experience is adjusted as necessary for current economic conditions. We consider our portfolio of finance receivables to be relatively homogenous and consequently we analyze credit performance primarily in the aggregate rather than stratification by any particular credit quality indicator. Using analytical and formula driven techniques, we estimate an allowance for finance credit losses, which we believe is adequate for probable incurred credit losses that can be reasonably estimated in our portfolio of finance receivable contracts. For each monthly pool of contracts that we purchase, we begin establishing the allowance in the month of acquisition and increase it over the subsequent 11 months, through a provision for credit losses charged to our Consolidated Statement of Income. Net losses incurred on finance receivables are charged to the allowance. We evaluate the adequacy of the allowance by examining current delinquencies, the characteristics of the portfolio, the value of the underlying collateral and historical loss trends. As conditions change, our level of provisioning and/or allowance may change.

Finance Receivables and Related Debt Measured at Fair Value

In September 2011, we acquired $217.8 million of finance receivables from Fireside Bank for a purchase price of $201.3 million. The receivables were acquired by our wholly-owned special purpose subsidiary, CPS Fender Receivables, LLC, which issued a note for $197.3 million, with a fair value of $196.5 million.

The receivables we acquired are pledged as collateral for debt that was structured specifically for the acquisition of this portfolio. Since the Fireside receivables were originated by another entity with its own underwriting guidelines and procedures, we elected to account for the Fireside receivables and the related debt secured by those receivables at their estimated fair values so that changes in fair value will be reflected in our results of operations as they occur. We use our own assumptions about the factors that we believe market participants would use in pricing similar receivables and debt, and are based on the best information available in the circumstances. The valuation method used to estimate fair value may produce a fair value measurement that may not be indicative of ultimate realizable value. Furthermore, while we believe our valuation methods are appropriate and consistent with those used by other market participants, the use of different methods or assumptions to estimate the fair value of certain financial instruments could result in different estimates of fair value. Those estimated values may differ significantly from the values that would have been used had a readily available market for such receivables or debt existed, or had such receivables or debt been liquidated, and those differences could be material to the financial statements. Interest income from the receivables and interest expense on the debt are included in interest income and interest expense, respectively. Changes to the fair value of the receivables and debt are also included in interest income and interest expense, respectively.

Charge Off Policy

Delinquent contracts for which the related financed vehicle has been repossessed are generally charged off at the earliest of (1) the month in which the proceeds from the sale of the financed vehicle are received, (2) the month in which 90 days have passed from the date of repossession or (3) the month in which the Contract becomes seven scheduled payments past due (see Repossessed and Other Assets below). The amount charged off is the remaining principal balance of the Contract, after the application of the net proceeds from the liquidation of the financed vehicle. With respect to delinquent contracts for which the related financed vehicle has not been repossessed, the remaining principal balance is generally charged off no later than the end of the month that the Contract becomes five scheduled payments past due.

Contract Acquisition Fees and Origination Costs

Upon purchase of a Contract from a Dealer, we generally either charge or advance the Dealer an acquisition fee. Dealer acquisition fees and deferred origination costs are applied to the carrying value of finance receivables and are accreted into earnings as an adjustment to the yield over the estimated life of the Contract using the interest method.

Repossessed and Other Assets

If a Contract obligor fails to make or keep promises for payments, or if the obligor is uncooperative or attempts to evade contact or hide the vehicle, a supervisor will review the collection activity relating to the account to determine if repossession of the vehicle is warranted. Generally, such a decision is made between the 60th and 90th day past the obligor’s payment due date, but could occur sooner or later, depending on the specific circumstances. At the time the vehicle is repossessed we stop accruing interest on the Contract, and reclassify the remaining Contract balance to the line item "Other Assets" on our Consolidated Balance Sheet at its estimated fair value less costs to sell. Included in other assets in the accompanying Consolidated Balance Sheets are repossessed vehicles pending sale of $12.8 million and $10.4 million at December 31, 2015 and 2014, respectively.

Treatment of Securitizations

Our term securitization structure has generally been as follows:

We sell contracts we acquire to a wholly-owned SPS, which has been established for the limited purpose of buying and reselling our contracts. The SPS then transfers the same contracts to another entity, typically a statutory trust ("Trust"). The Trust issues interest-bearing asset-backed securities ("Notes"), in a principal amount equal to or less than the aggregate principal balance of the contracts. We typically sell these contracts to the Trust at face value and without recourse, except representations and warranties that we make to the Trust that are similar to those provided to us by the Dealer. One or more investors (the "Noteholders") purchase the Notes issued by the Trust; the proceeds from the sale of the Notes are then used to purchase the contracts from us. We may retain or sell subordinated Notes issued by the Trust. In addition, we have provided "Credit Enhancement" for the benefit of the Noteholders in three forms: (1) an initial cash deposit to a bank account (a "Spread Account") held by the Trust, (2) overcollateralization of the Notes, where the principal balance of the Notes issued is less than the principal balance of the contracts, and (3) in the form of subordinated Notes. The agreements governing the securitization transactions (collectively referred to as the "Securitization Agreements") require that the initial level of Credit Enhancement be supplemented by a portion of collections from the contracts until the level of Credit Enhancement reaches specified levels, which are then maintained. The specified levels are generally computed as a percentage of the principal amount remaining unpaid under the related contracts. The specified levels at which the Credit Enhancement is to be maintained will vary depending on the performance of the portfolios of contracts held by the Trusts and on other conditions. Such levels have increased and decreased from time to time based on performance of the various portfolios, and have also varied from one Trust to another.

Our warehouse securitization structures are similar to the above, except that (i) the SPS that purchases the contracts pledges the contracts to secure promissory notes or loans that it issues, and (ii) no increase in the required amount of Credit Enhancement is contemplated. Upon each sale of contracts in a securitization structured as a secured financing, we retain as assets on our Consolidated Balance Sheet the securitized contracts and record as indebtedness the Notes issued in the transaction.

We have the power to direct the most significant activities of the SPS. In addition, we have the obligation to absorb losses and the rights to receive benefits from the SPS, both of which could be potentially significant to the SPS. These types of securitization structures are treated as secured financings, in which the receivables remain on our Consolidated Balance Sheet, and the debt issued by the SPS is shown as a securitization trust debt on our Consolidated Balance Sheet.

We receive periodic base servicing fees for the servicing and collection of the contracts. In addition, we are entitled to the cash flows from the Trusts that represent collections on the contracts in excess of the amounts required to pay principal and interest on the Notes, the base servicing fees, and the premium paid to the Note Insurer, if any, and certain other fees (such as trustee and custodial fees). Required principal payments on the Notes are generally defined as the payments sufficient to keep the principal balance of the Notes equal to the aggregate principal balance of the related contracts (excluding those contracts that have been charged off), or a pre-determined percentage of such balance. Where that percentage is less than 100%, the related Securitization Agreements require accelerated payment of principal until the principal balance of the Notes is reduced to the specified percentage. Such accelerated principal payment is said to create "overcollateralization" of the Notes.

If the amount of cash required for payment of fees, interest and principal on the senior Notes exceeds the amount collected during the collection period, the shortfall is generally withdrawn from the Spread Account, if any. If the cash collected during the period exceeds the amount necessary for the above allocations plus required principal payments on the subordinated Notes, if any, and there is no shortfall in the related Spread Account or other form of Credit Enhancement, the excess is released to us. If the total Credit Enhancement amount is not at the required level, then the excess cash collected is retained in the Trust until the specified level is achieved. Cash in the Spread Accounts is restricted from our use. Cash held in the various Spread Accounts is invested in high quality, liquid investment securities, as specified in the Securitization Agreements. In all of our term securitizations we have transferred the receivables (through a subsidiary) to the securitization Trust. We report the assets and liabilities of the securitization Trust on our Consolidated Balance Sheet. The Noteholders’ and the related securitization Trusts’ recourse against us for failure of the contract obligors to make payments on a timely basis is limited, in general, to our Finance Receivables, and Spread Accounts.

Servicing

We consider the contractual servicing fee received on our managed portfolio held by non-consolidated subsidiaries to be equal to adequate compensation. Additionally, we consider that these fees would fairly compensate a substitute servicer, should one be required. As a result, no servicing asset or liability has been recognized. Servicing fees received on the managed portfolio held by non-consolidated subsidiaries are reported as income when earned. Servicing fees received on the managed portfolio held by consolidated subsidiaries are included in interest income when earned. Servicing costs are charged to expense as incurred. Servicing fees receivable, which are included in Other Assets in the accompanying Consolidated Balance Sheets, represent fees earned but not yet remitted to us by the trustee.

Furniture and Equipment

Furniture and equipment are stated at cost net of accumulated depreciation. We calculate depreciation using the straight-line method over the estimated useful lives of the assets, which range from three to five years. Assets held under capital leases and leasehold improvements are amortized over the lesser of the estimated useful lives of the assets or the related lease terms. Amortization expense on assets acquired under capital lease is included with depreciation expense on owned assets.

Impairment of Long-Lived Assets and Long-Lived Assets to Be Disposed Of

Long-lived assets and certain identifiable intangibles are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to future net cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. Assets to be disposed of are reported at the lower of carrying amount or fair value less costs to sell.

Other Income

The following table presents the primary components of Other Income:

	Year Ended December 31,
	2015		2014		2013
	(In thousands)
Direct mail revenues	$	8,927	$	7,975	$	7,004
Convenience fee revenue		2,610		3,300		2,965
Recoveries on previously charged-off contracts		1,079		143		177
Sales tax refunds		616		500		197
Other		187		228		62
	$	13,419	$	12,146	$	10,405

Earnings Per Share

The following table illustrates the computation of basic and diluted earnings per share:

	Year Ended December 31,
	2015		2014		2013
	(In thousands, except per share data)
Numerator:
Numerator for basic and diluted earnings per share	$	34,681	$	29,516	$	21,005
Denominator:
Denominator for basic earnings per share - weighted average number of common shares outstanding during the year		25,935		25,040		21,538
Incremental common shares attributable to exercise of outstanding options and warrants		5,649		6,992		10,036
Denominator for diluted earnings per share		31,584		32,032		31,574
Basic earnings per share	$	1.34	$	1.18	$	0.98
Diluted earnings per share	$	1.10	$	0.92	$	0.67

Incremental shares of 6.8 million, 4.5 million and 2.1 million related to stock options and warrants have been excluded from the diluted earnings per share calculation for the years ended December 31, 2015, 2014 and 2013, respectively, because the effect is anti-dilutive.

Deferral and Amortization of Debt Issuance Costs

Costs related to the issuance of debt are deferred and amortized using the interest method over the contractual or expected term of the related debt.

Income Taxes

The Company and its subsidiaries file a consolidated federal income tax return and combined or stand-alone state franchise tax returns for certain states. We utilize the asset and liability method of accounting for income taxes, under which deferred income taxes are recognized for the future tax consequences attributable to the differences between the financial statement values of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred taxes of a change in tax rates is recognized in income in the period that includes the enactment date. We estimate a valuation allowance against that portion of the deferred tax asset whose utilization in future periods is not more than likely.

Purchases of Company Stock

We record purchases of our own common stock at cost and treat the shares as retired.

Stock Option Plan

We recognize compensation costs in the financial statements for all share-based payments granted subsequent to January 1, 2006 based on the grant date fair value estimated in accordance with the provisions of ASC 718 “Stock Compensation”. Compensation cost is recognized over the required service period, generally defined as the vesting period.

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the financial statements, as well as the reported amounts of income and expenses during the reported periods. Specifically, a number of estimates were made in connection with determining an appropriate allowance for finance credit losses, determining appropriate reserves for contingent liabilities, valuing finance receivables measured at fair value and the related debt, accreting net acquisition fees, amortizing deferred costs, and recording deferred tax assets and reserves for uncertain tax positions. These are material estimates that could be susceptible to changes in the near term and, accordingly, actual results could differ from those estimates.

Reclassification

Certain amounts for the prior year have been reclassified to conform to the current year’s presentation with no effect on previously reported earnings or shareholders’ equity.

Financial Covenants

Certain of our securitization transactions, our residual interest financing 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 securitization and non-securitization related debt contain cross-default provisions that would allow certain creditors to declare a default if a default occurred under a different facility. As of December 31, 2015 we were in compliance with all such financial covenants.

Gain on Cancellation of Debt

In April 2013, we repurchased the outstanding Class D notes from our first 2008 securitization for a cash payment of $6.1 million and a new 5% note for $5.3 million due in June 2014. The Class D notes were held by the same related party that held our senior secured debt. On the date we repurchased the Class D notes, the Class D note holder owned 10.5% of our outstanding common stock and warrants to purchase an additional 1.9 million shares of common stock. We subsequently exercised our “clean-up call” option and repurchased the remaining collateral from the related securitization trust. The aggregate value of our consideration for the Class D notes was $10.9 million less than our carrying value of the Class D notes at the time of the repurchase. As a result of the repurchase of the Class D notes and the termination of the securitization trust, we realized a gain of $10.9 million for the year ended December 31, 2013.

Provision for Contingent Liabilities

We are routinely involved in various legal proceedings resulting from our consumer finance activities and practices, both continuing and discontinued. Our legal counsel has advised us on such matters where, based on information available at the time of this report, there is an indication that it is both probable that a liability has been incurred and the amount of the loss can be reasonably determined.

In 2013, we recognized $7.8 million in contingent liability expenses to either record or increase the amounts we believed represented our best estimate of probable incurred losses related to various matters. The amount was allocated in part to a long running case (“Pardee”) in which we were sued for indemnity, and also to more recent matters. In September 2014 we reached a settlement of the Pardee case, pursuant to which we paid $5.99 million and all claims against us were fully and finally discharged.

The more recent matters included two California class action suits where we were the defendant, and a governmental inquiry in which the United States Federal Trade Commission (“FTC”) had informally proposed that we refrain from certain allegedly unfair trade practices, and make restitutionary payments into a consumer relief fund. In May 2014, the FTC announced its agreement to settle the matter by filing a lawsuit against us, and requesting, with our consent, that the court enter an agreed judgment against us. The lawsuit arose out of the FTC’s inquiry into our business practices. Under the agreed settlement, we made approximately $1.9 million of restitutionary payments and $1.6 million of account adjustments to our customers in September 2014, and paid a $2 million penalty to the federal government in June 2014, and implemented procedural changes, all pursuant to a consent decree entered by the court in June 2014.

We have recorded a liability as of December 31, 2015, which represents our best estimate of probable incurred losses for legal contingencies. The amount of losses that may ultimately be incurred cannot be estimated with certainty.

Recently Issued Accounting Standards

In August 2015, the Financial Accounting Standard Board (FASB) issued Accounting Standard Update (ASU) No. 2015-14, Revenue from Contracts with Customers (Topic 606) (ASU 2015-14). In May 2014, the FASB issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (Topic 606), with an original effective date for annual reporting periods beginning after December 15, 2016. The core principle of ASU 2014-09 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU 2015-14 deferred the effective date of ASU 2014-09 to annual periods and interim periods within those annual periods beginning after December 15, 2017. The Company is currently evaluating the effects of ASU 2015-14 on its financial statements and disclosures, if any.

In January 2016, the FASB issued ASU 2016-01, Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities (ASU 2016-01). The main objective of ASU 2016-01 is to enhance the reporting model for financial instruments to provide users of financial statements with more decision-useful information. ASU 2016-01 addresses certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. Some of the amendments in ASU 2016-01 include the following: 1) Require equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income; 2) Simplify the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment; 3) Require public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes; 4) Require an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value; among others. The amendments of ASU 2016-01 are effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company is currently evaluating the effects of ASU 2016-01 on its financial statements and disclosures, if any.

In February 2016, the FASB issued a comprehensive new leases standard that amends various aspects of existing accounting guidance for leases. It will require recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. The main difference between previous GAAP and the amended standard is the recognition of lease assets and lease liabilities by lessees on the balance sheet for those leases classified as operating leases under previous GAAP. The accounting applied by a lessor is largely unchanged from that applied under previous GAAP. As a result, the Company will have to recognize a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term on the balance sheet. The guidance is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the effects of the new guidance on its financial statements and disclosures.

2. Restricted Cash

12 Months Ended

Dec. 31, 2015

Cash and Cash Equivalents [Abstract]

Restricted Cash

Restricted cash consists of cash and cash equivalent accounts relating to our outstanding securitization trusts and credit facilities. The amount of restricted cash on our Consolidated Balance Sheets was $106.1 million and $175.4 million as of December 31, 2015 and 2014, respectively.

Our securitization transactions and one of our warehouse credit facilities require that we establish cash reserves, or spread accounts, as additional credit enhancement. These cash reserves, which are included in restricted cash, were $38.9 million and $31.2 million as of December 31, 2015 and 2014, respectively.

- Definition

The entire disclosure for cash and cash equivalent footnotes, which may include the types of deposits and money market instruments, applicable carrying amounts, restricted amounts and compensating balance arrangements. Cash and equivalents include: (1) currency on hand (2) demand deposits with banks or financial institutions (3) other kinds of accounts that have the general characteristics of demand deposits (4) short-term, highly liquid investments that are both readily convertible to known amounts of cash and so near their maturity that they present insignificant risk of changes in value because of changes in interest rates. Generally, only investments maturing within three months from the date of acquisition qualify.

+ References + Details

3. Finance Receivables

12 Months Ended

Dec. 31, 2015

Receivables [Abstract]

Finance Receivables

Our portfolio of finance receivables consists of small-balance homogeneous contracts comprising a single segment and class that is collectively evaluated for impairment on a portfolio basis according to delinquency status. Our contract purchase guidelines are designed to produce a homogenous portfolio. We report delinquency on a contractual basis. Once a contract becomes greater than 90 days delinquent, we do not recognize additional interest income until the obligor under the contract makes sufficient payments to be less than 90 days delinquent. Any payments received on a contract that is greater than 90 days delinquent are first applied to accrued interest and then to principal reduction.

The following table presents the components of finance receivables, net of unearned interest:

	December 31,
	2015			2014
	(In thousands)
Finance receivables
Automobile finance receivables, net of unearned interest	$	1,990,913		$	1,612,246
Less: Unearned acquisition fees, discounts and deferred origination costs, net		(5,820	)		(16,290	)
Finance receivables	$	1,985,093		$	1,595,956

We consider an automobile contract delinquent when an obligor fails to make at least 90% of a contractually due payment by the following due date, which date may have been extended within limits specified in the servicing agreements. The period of delinquency is based on the number of days payments are contractually past due, as extended where applicable. Automobile contracts less than 31 days delinquent are not reported as delinquent. In certain circumstances we will grant obligors one-month payment extensions. The only modification of terms is to advance the obligor’s next due date by one month and extend the maturity date of the receivable by one month. In certain limited cases, a two-month extension may be granted. There are no other concessions, such as a reduction in interest rate, forgiveness of principal or of accrued interest. Accordingly, we consider such extensions to be insignificant delays in payments rather than troubled debt restructurings. The following table summarizes the delinquency status of finance receivables as of December 31, 2015 and 2014:

	December 31,
	2015		2014
	(In thousands)
Deliquency Status
Current	$	1,836,267	$	1,523,020
31 - 60 days		70,036		42,730
61 - 90 days		41,136		23,300
91 + days		43,474		23,196
	$	1,990,913	$	1,612,246

Finance receivables totaling $43.5 million and $23.2 million at December 31, 2015 and 2014, respectively, have been placed on non-accrual status as a result of their delinquency status.

The following table presents a summary of the activity for the allowance for finance credit losses, for the years ended December 31, 2015, 2014 and 2013:

	December 31,
	2015			2014			2013
	(In thousands)
Balance at beginning of year	$	61,460		$	39,626		$	19,594
Provision for credit losses		142,618			108,228			76,869
Charge-offs		(156,553	)		(109,914	)		(69,455	)
Recoveries		28,078			23,520			12,618
Balance at end of year	$	75,603		$	61,460		$	39,626

Excluded from finance receivables are contracts that were previously classified as finance receivables but were reclassified as other assets because we have repossessed the vehicle securing the Contract. The following table presents a summary of such repossessed inventory together with the allowance for losses on repossessed inventory:

	December 31,
	2015			2014
	(In thousands)
Gross balance of repossessions in inventory	$	39,728		$	28,234
Allowance for losses on repossessed inventory		(26,954	)		(17,829	)
Net repossessed inventory included in other assets	$	12,774		$	10,405

4. Furniture and Equipment

12 Months Ended

Dec. 31, 2015

Property, Plant and Equipment [Abstract]

Furniture and Equipment

The following table presents the components of furniture and equipment:

	December 31,
	2015			2014
	(In thousands)
Furniture and fixtures	$	1,517		$	1,396
Computer and telephone equipment		5,249			4,424
Leasehold improvements		1,116			871
		7,882			6,691
Less: accumulated depreciation and amortization		(6,167	)		(5,530	)
	$	1,715		$	1,161

Depreciation expense totaled $637,000, $428,000 and $437,000 for the years ended December 31, 2015, 2014 and 2013, respectively.

5. Securitization Trust Debt

12 Months Ended

Dec. 31, 2015

Securitization Trust Debt

Securitization Trust Debt

(5) Securitization Trust Debt

We have completed numerous term securitization transactions that are structured as secured borrowings for financial accounting purposes. The debt issued in these transactions is shown on our Consolidated Balance Sheets as “Securitization trust debt,” and the components of such debt are summarized in the following table:

		Final Scheduled Payment		Receivables Pledged at December 31,		Initial		Outstanding Principal at December 31,		Outstanding Principal at December 31,		Weighted Average Interest Rate at December 31,
Series		Date (1)		2015 (2)		Principal		2015		2014		2015
				(Dollars in thousands)
	CPS 2011-A		April 2018		–		100,364		–		8,457		–
	CPS 2011-B		September 2018		10,469		109,936		10,023		22,985		4.40%
	CPS 2011-C		March 2019		14,756		119,400		14,785		30,601		4.91%
	CPS 2012-A		June 2019		18,273		155,000		16,795		35,923		3.15%
	CPS 2012-B		September 2019		27,463		141,500		26,758		50,125		3.07%
	CPS 2012-C		December 2019		31,556		147,000		30,653		55,619		2.34%
	CPS 2012-D		March 2020		38,886		160,000		37,464		67,833		1.92%
	CPS 2013-A		June 2020		58,082		185,000		56,583		97,775		1.85%
	CPS 2013-B		September 2020		72,081		205,000		70,332		118,692		2.36%
	CPS 2013-C		December 2020		83,811		205,000		82,851		133,628		3.43%
	CPS 2013-D		March 2021		83,263		183,000		82,337		132,150		2.99%
	CPS 2014-A		June 2021		93,776		180,000		92,571		143,456		2.51%
	CPS 2014-B		September 2021		121,772		202,500		121,515		177,601		2.21%
	CPS 2014-C		December 2021		184,739		273,000		183,802		256,151		2.41%
	CPS 2014-D		March 2022		200,611		267,500		198,533		267,500		2.63%
	CPS 2015-A		June 2022		203,819		245,000		201,527		–		2.48%
	CPS 2015-B		September 2022		226,054		250,000		221,587		–		2.57%
	CPS 2015-C		December 2022		287,685		300,000		283,482		–		2.96%
				$	1,757,096	$	3,429,200	$	1,731,598	$	1,598,496

_________________________

(1)

The Final Scheduled Payment Date represents final legal maturity of the securitization trust debt. Securitization trust debt is expected to become due and to be paid prior to those dates, based on amortization of the finance receivables pledged to the Trusts. Expected payments, which will depend on the performance of such receivables, as to which there can be no assurance, are $669.2 million in 2016, $506.5 million in 2017, $315.4 million in 2018, $172.2 million in 2019, $64.3 million in 2020, and $4.0 million in 2021.

(2)

Includes repossessed assets that are included in Other Assets on our Consolidated Balance Sheets.

All of the securitization trust debt was issued in private placement transactions to qualified institutional investors. The debt was issued by our wholly-owned, bankruptcy remote subsidiaries and is secured by the assets of such subsidiaries, but not by any of our other assets.

The terms of the various securitization agreements related to the issuance of the securitization trust debt require that certain delinquency and credit loss criteria be met with respect to the collateral pool, and require that we maintain minimum levels of liquidity and net worth and not exceed maximum leverage levels. We were in compliance with all such covenants as of December 31, 2015.

We are responsible for the administration and collection of the contracts. The securitization agreements also require certain funds be held in restricted cash accounts to provide additional credit enhancement for the Notes or to be applied to make payments on the securitization trust debt. As of December 31, 2015, restricted cash under the various agreements totaled approximately $106.1 million. Interest expense on the securitization trust debt is composed of the stated rate of interest plus amortization of additional costs of borrowing. Additional costs of borrowing include facility fees, insurance premiums, amortization of deferred financing costs, and amortization of discounts required on the notes at the time of issuance. Deferred financing costs related to the securitization trust debt are amortized using the interest method. Accordingly, the effective cost of borrowing of the securitization trust debt is greater than the stated rate of interest.

Our wholly-owned, bankruptcy remote subsidiaries were formed to facilitate the above asset-backed financing transactions. Similar bankruptcy remote subsidiaries issue the debt outstanding under our warehouse line of credit. Bankruptcy remote refers to a legal structure in which it is expected that the applicable entity would not be included in any bankruptcy filing by its parent or affiliates. All of the assets of these subsidiaries have been pledged as collateral for the related debt. All such transactions, treated as secured financings for accounting and tax purposes, are treated as sales for all other purposes, including legal and bankruptcy purposes. None of the assets of these subsidiaries are available to pay any of our other creditors.

6. Debt

12 Months Ended

Dec. 31, 2015

Debt Disclosure [Abstract]

Debt

The terms of our debt outstanding at December 31, 2015 and 2014 are summarized below:

			Amount Outstanding at
			December 31,		December 31,
			2015		2014
			(In thousands)
Description	Interest Rate	Maturity

Warehouse lines of credit	5.50% over one month Libor (Minimum 6.50%)	April 2019	$	91,504	$	23,581

	5.50% over one month Libor (Minimum 6.25%)	August 2017		73,940		33,258

	6.75% over one month Libor (Minimum 7.75%)	November 2019		31,017		–

Residual interest financing	11.75% over one month Libor	April 2018		9,042		12,327

Debt secured by receivables measured at fair value	n/a	Repayment is based on payments from underlying receivables. Final payment of the 8.00% loan was made in September 2013. Final residual payment was made in January 2015.		–		1,250

Subordinated renewable notes	Weighted average rate of 9.04% and 10.7% at December 31, 2015 and 2014, respectively	Weighted average maturity of October 2017 and October 2016 at December 31, 2015 and 2014, respectively		15,138		15,233

			$	220,641	$	85,649

In April 2015 we entered into a $100 million warehouse credit line with affiliates of Fortress Investment Group. The facility is structured to allow us to fund a portion of the purchase price of automobile contracts by borrowing from a credit facility to our consolidated subsidiary Page Six Funding LLC. The facility, which replaces a revolving credit facility that we had used since December 2010, provides for advances up to 88% of eligible finance receivables and the loans under it accrue interest at a rate of one-month LIBOR plus 5.50% per annum, with a minimum rate of 6.50% per annum. There was $91.5 million outstanding under this new facility at December 31, 2015 which has a revolving period through April 2017 and an amortization period through April 2019 for any receivables pledged to the facility at the end of the revolving period.

In August 2014, we renewed our $100 million warehouse credit line with Citibank, N.A. The facility is structured to allow us to fund a portion of the purchase price of automobile contracts by borrowing from a credit facility to our consolidated subsidiary Page Eight Funding, LLC. The facility provides for effective advances up to 88.0% of eligible finance receivables. The loans under the facility accrue interest at one-month LIBOR plus 5.50% per annum, with a minimum rate of 6.25% per annum. There was $73.9 million outstanding under this facility at December 31, 2015. This facility has a revolving period through August 2016 and an amortization period through August 2017 for any receivables pledged at the end of the revolving period.

In November 2015, we entered into another $100 million warehouse credit line with Credit Suisse AG and Ares Agent Services, L.P. This facility is structured to allow us to fund a portion of the purchase price of automobile contracts by borrowing from a credit facility to our consolidated subsidiary Page Nine Funding LLC. The facility provides for advances up to 88% of eligible finance receivables and the loans under it accrue interest at a commercial paper rate plus 6.75% per annum, with a minimum rate of 7.75% per annum. There was $31.0 million outstanding under this new facility at December 31, 2015 which has a revolving period through November 2017 and an amortization period through November 2019 for any receivables pledged to the facility at the end of the revolving period.

The total outstanding debt on our three warehouse lines of credit was $196.5 million as of December 31, 2015, compared to $56.8 million outstanding as of December 31, 2014.

The costs incurred in conjunction with the above debt are recorded as deferred financing costs on the accompanying Consolidated Balance Sheets and are more fully described in Note 1.

We must comply with certain affirmative and negative covenants related to debt facilities, which require, among other things, that we maintain certain financial ratios related to liquidity, net worth and capitalization. Further covenants include matters relating to investments, acquisitions, restricted payments and certain dividend restrictions. See the discussion of financial covenants in Note 1.

The following table summarizes the contractual and expected maturity amounts of long term debt as of December 31, 2015:

Contractual maturity date	Residual interest financing (1)		Subordinated renewable notes		Total
	(In thousands)

2016	$	2,400	$	9,910	$	12,310
2017		3,900		1,781		5,681
2018		2,742		1,110		3,852
2019		–		276		276
2020		–		342		342
Thereafter		–		1,719		1,719
Total	$	9,042	$	15,138	$	24,180

_________________________

(1)

The residual interest financing debt has a contractual maturity date in April 2018. This debt may become due and payable prior to that date, based on the decreasing valuation of the underlying collateral.

7. Shareholders' Equity

12 Months Ended

Dec. 31, 2015

Equity [Abstract]

Shareholders' Equity

(7) Shareholders’ Equity

Common Stock

Holders of common stock are entitled to such dividends as our board of directors, in its discretion, may declare out of funds available, subject to the terms of any outstanding shares of preferred stock and other restrictions. In the event of liquidation of the Company, holders of common stock are entitled to receive, pro rata, all of the assets of the Company available for distribution, after payment of any liquidation preference to the holders of outstanding shares of preferred stock. Holders of the shares of common stock have no conversion or preemptive or other subscription rights and there are no redemption or sinking fund provisions applicable to the common stock.

We are required to comply with various operating and financial covenants defined in the agreements governing the warehouse lines of credit, senior debt, residual interest financing and subordinated debt. The covenants for the senior debt, residual interest financing and subordinated debt restrict the payment of certain distributions, including dividends (See Note 6).

Stock Purchases

In April and again in October 2015 our board of directors authorized the repurchase of up to $5 million of our common stock for a total of $10 million. Prior to April, there was $1.0 million of board authorization remaining in our repurchase plans from prior authorizations. For the year ending December 31, 2015, we purchased $5.9 million of our common stock, representing 1,063,869 shares. There is approximately $5.1 million of board authorization remaining under such plans, which have no expiration date.

Options and Warrants

In 2006, the Company adopted and its shareholders approved the CPS 2006 Long-Term Equity Incentive Plan (the “2006 Plan”) pursuant to which our Board of Directors, or a duly-authorized committee thereof, may grant stock options, restricted stock, restricted stock units and stock appreciation rights to our employees or employees of our subsidiaries, to directors of the Company, and to individuals acting as consultants to the Company or its subsidiaries. In June 2008, May 2012, April 2013 and again in May 2015, the shareholders of the Company approved an amendment to the 2006 Plan to increase the maximum number of shares that may be subject to awards under the 2006 Plan to 5,000,000, 7,200,000, 12,200,000 and 17,200,000, respectively, in each case plus shares authorized under prior plans and not issued. Options that have been granted under the 2006 Plan and a previous plan approved in 1997 have been granted at an exercise price equal to (or greater than) the stock’s fair value at the date of the grant, with terms generally of 7-10 years and vesting generally over 4-5 years.

The per share weighted-average fair value of stock options granted during the years ended December 31, 2015, 2014 and 2013 was $2.41, $2.73 and $4.79, respectively. That fair value was estimated using a binomial option pricing model using the weighted average assumptions noted in the following table. We use historical data to estimate the expected term of each option. The volatility estimate is based on the historical and implied volatility of our stock over the period that equals the expected life of the option. Volatility assumptions ranged from 47% to 51% for 2015, 52% to 55% for 2014 and 50% to 85% for 2013. The risk-free interest rate is based on the yield on a U.S. Treasury bond with a maturity comparable to the expected life of the option. The dividend yield is estimated to be zero based on our intention not to issue dividends for the foreseeable future.

	Year Ended December 31,
	2015		2014		2013
Expected life (years)		4.21		4.22		5.41
Risk-free interest rate		1.35%		1.43%		0.73%
Volatility		51%		55%		80%
Expected dividend yield		–		–		–

For the years ended December 31, 2015, 2014 and 2013, we recorded stock-based compensation costs in the amount of $5.0 million, $3.8 million and $3.9 million, respectively. As of December 31, 2015, the unrecognized stock-based compensation costs to be recognized over future periods was equal to $13.3 million. This amount will be recognized as expense over a weighted-average period of 2.6 years.

At December 31, 2015 and 2014, options outstanding had intrinsic values of $16.6 million and $36.7 million, respectively. At December 31, 2015 and 2014, options exercisable had intrinsic values of $14.5 million and $28.1 million, respectively. The total intrinsic value of options exercised was $6.4 million and $9.1 million for the years ended December 31, 2015 and 2014, respectively. New shares were issued for all options exercised during the year ended December 2015 and cash of $1.7 million was received. A tax benefit of $634,000 was recorded for the options exercised in 2015. At December 31, 2015, there were a total of 5.5 million additional shares available for grant under the 2006 Plan.

Stock option activity for the year ended December 31, 2015 for stock options under the 2006 and 1997 plans is as follows:

	Number of Shares (in thousands)			Weighted Average Exercise Price		Weighted Average Remaining Contractual Term
Options outstanding at the beginning of period		10,828		$	4.05	N/A
Granted		1,965			6.11	N/A
Exercised		(1,233	)		1.39	N/A
Forfeited/Expired		(332	)		5.43	N/A
Options outstanding at the end of period		11,228		$	4.66	5.55 years

Options exercisable at the end of period		6,132		$	3.49	4.87 years

We did not issue any stock options with an exercise price above or below the market price of the stock on the grant date for the years ended December 31, 2015, 2014 and 2013.

In connection with the amendment to and partial repayment of our residual interest financing in July 2008, we issued warrants exercisable for 2,500,000 common shares for $4,071,429. The warrants represent the right to purchase 2,500,000 CPS common shares at a nominal exercise price, at any time prior to July 10, 2018. In March 2010 we repurchased warrants for 500,000 of these shares for $1.0 million. Warrants to purchase 2,000,000 shares remain outstanding as of December 31, 2015.

- Definition

The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(d),(e))
-URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21484-112644

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 310
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SAB TOPIC 4.E)
-URI http://asc.fasb.org/extlink&oid=27010918&loc=d3e74512-122707

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21488-112644

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.29-31)
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section S99
-Paragraph 4
-Subparagraph (SAB TOPIC 4.C)
-URI http://asc.fasb.org/extlink&oid=27012166&loc=d3e187143-122770

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21506-112644

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.3-04)
-URI http://asc.fasb.org/extlink&oid=27012166&loc=d3e187085-122770

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 30
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6405834&loc=d3e23285-112656

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21475-112644

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Preferred Stock
-URI http://asc.fasb.org/extlink&oid=6521494

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21463-112644

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 11
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21564-112644

Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 08
-Paragraph d
-Article 4

Reference 15: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 02
-Paragraph 29, 30, 31
-Article 5

Reference 16: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Staff Accounting Bulletin (SAB)
-Number Topic 4
-Section E

Reference 17: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 08
-Article 4

Reference 18: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Staff Accounting Bulletin (SAB)
-Number Topic 4
-Section C

Reference 19: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 04
-Article 3

+ Details

8. Interest Income and Interest Expense

12 Months Ended

Dec. 31, 2015

Interest Income And Interest Expense

Interest Income and Interest Expense

(8) Interest Income and Interest Expense

The following table presents the components of interest income:

	Year Ended December 31,
	2015		2014		2013
	(In thousands)
Interest on finance receivables	$	349,796	$	286,361	$	231,320
Residual interest income		92		372		–
Other interest income		24		1		10

Interest income	$	349,912	$	286,734	$	231,330

The following table presents the components of interest expense:

	Year Ended December 31,
	2015		2014		2013
	(In thousands)
Securitization trust debt	$	48,631	$	38,558	$	34,744
Warehouse lines of credit		6,127		5,217		5,003
Senior secured debt, related party		–		1,651		8,064
Debt secured by receivables at fair value		–		772		3,877
Residual interest financing		1,405		1,989		3,330
Subordinated renewable notes		1,582		2,208		3,161
Interest expense	$	57,745	$	50,395	$	58,179

9. Income Taxes

12 Months Ended

Dec. 31, 2015

Income Tax Disclosure [Abstract]

Income Taxes

(9) Income Taxes

Income taxes consist of the following:

	Year Ended December 31,
	2015		2014		2013
	(In thousands)
Current federal tax expense	$	18,653	$	1,348	$	977
Current state tax expense		1,146		1,316		365
Deferred federal tax expense		4,233		18,338		13,306
Deferred state tax expense		2,669		1,724		1,520
Income tax expense	$	26,701	$	22,726	$	16,168

Income tax expense for the years ended December 31, 2015, 2014 and 2013 differs from the amount determined by applying the statutory federal rate of 35% to income before income taxes as follows:

	Year Ended December 31,
	2015		2014		2013
	(In thousands)
Expense at federal tax rate	$	21,484	$	18,285	$	13,011
State taxes, net of federal income tax effect		3,235		2,651		2,079
Stock-based compensation		1,560		1,182		911
Non-deductible expenses		107		116		619
Other		315		492		(452	)
	$	26,701	$	22,726	$	16,168

The tax effected cumulative temporary differences that give rise to deferred tax assets and liabilities as of December 31, 2015 and 2014 are as follows:

	December 31,
	2015			2014
	(In thousands)
Deferred Tax Assets:
Finance receivables	$	20,825		$	19,046
Accrued liabilities		3,091			2,551
Furniture and equipment		–			16
NOL carryforwards		3,272			6,922
Built in losses		10,254			11,698
Pension accrual		1,999			1,090
AMT credit carryforward		166			2,899
Other		1,109			941
Total deferred tax assets		40,716			45,163

Deferred Tax Liabilities:
Deferred loan costs		(2,894	)		(2,316	)
Furniture and equipment		(225	)		–
Total deferred tax liabilities		(3,119)			(2,316	)

Net deferred tax asset	$	37,597		$	42,847

We acquired certain net operating losses and built-in loss assets as part of our acquisitions of MFN Financial Corp. (“MFN”) in 2002 and TFC Enterprises, Inc. (“TFC”) in 2003. Moreover, both MFN and TFC have undergone an ownership change for purposes of Internal Revenue Code (“IRC”) Section 382. In general, IRC Section 382 imposes an annual limitation on the ability of a loss corporation (that is, a corporation with a net operating loss (“NOL”) carryforward, credit carryforward, or certain built-in losses (“BILs”)) to utilize its pre-change NOL carryforwards or BILs to offset taxable income arising after an ownership change.

In determining the possible future realization of deferred tax assets, we have considered future taxable income from the following sources: (a) reversal of taxable temporary differences; and (b) tax planning strategies that, if necessary, would be implemented to accelerate taxable income into years in which net operating losses might otherwise expire.

Deferred tax assets are recognized subject to management’s judgment that realization is more likely than not. A valuation allowance is recognized for a deferred tax asset if, based on the weight of the available evidence, it is more likely than not that some portion of the deferred tax asset will not be realized. In making such judgements, significant weight is given to evidence that can be objectively verified. Although realization is not assured, we believe that the realization of the recognized net deferred tax asset of $37.6 million as of December 31, 2015 is more likely than not based on forecasted future net earnings. Our net deferred tax asset of $37.6 million consists of approximately $29.9 million of net U.S. federal deferred tax assets and $7.7 million of net state deferred tax assets. The major components of the deferred tax asset are $13.5 million in net operating loss carryforwards and built in losses and $24.1 million in net deductions which have not yet been taken on a tax return.

As of December 31, 2015, we had net operating loss carryforwards for state income tax purposes of $67.3 million. These state net operating losses begin to expire in 2016.

We recognize a tax position as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. We recognize potential interest and penalties related to unrecognized tax benefits as income tax expense. At December 31, 2015, we had no unrecognized tax benefits for uncertain tax positions.

We are subject to taxation in the US and various state jurisdictions. With few exceptions, we are no longer subject to U.S. federal, state, or local examinations by tax authorities for years before 2012.

10. Related Party Transactions

12 Months Ended

Dec. 31, 2015

Related Party Transactions

(10) Related Party Transactions

In December 2007, one of our directors purchased a $4.0 million subordinated renewable note pursuant to our ongoing program of issuing such notes to the public. The note was purchased through the registered agent and under the same terms and conditions, including the interest rate, that were offered to other purchasers at the time the note was issued. As of December 31, 2015, $4.0 million remains outstanding on this note.

- Definition

The entire disclosure for related party transactions. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates.

+ References + Details

11. Commitments and Contingencies

12 Months Ended

Dec. 31, 2015

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

(11) Commitments and Contingencies

Leases

The Company leases its facilities and certain computer equipment under non-cancelable operating leases, which expire through 2022. Future minimum lease payments at December 31, 2015, under these leases are due during the years ended December 31 as follows:

		Amount
		(In thousands)
2016	$	4,713
2017		5,896
2018		5,632
2019		5,189
2020		4,224
Thereafter		7,687

Total minimum lease payments	$	33,341

Rent expense for the years ended December 31, 2015, 2014 and 2013, was $4.1 million, $3.5 million and $2.6 million, respectively.

Our facility leases contain certain rental concessions and escalating rental payments, which are recognized as adjustments to rental expense and are amortized on a straight-line basis over the terms of the leases.

Legal Proceedings

Consumer Litigation. We are routinely involved in various legal proceedings resulting from our consumer finance activities and practices, both continuing and discontinued. Consumers can and do initiate lawsuits against us alleging violations of law applicable to collection of receivables, and such lawsuits sometimes allege that resolution as a class action is appropriate.

We are currently subject to one such class action, which has been settled by agreement with the plaintiffs. The settlement remains subject to final court approval. (The court has approved the settlement, but an objecting member of the settlement class has appealed that approval.)

For the most part, we have legal and factual defenses to consumer claims, which we routinely contest or settle (for immaterial amounts) depending on the particular circumstances of each case. We have recorded a liability as of December 31, 2015 with respect to such matters, in the aggregate.

FTC Action. In May 2014, we consented to the FTC’s filing of a lawsuit against us, and to the simultaneous settlement of that lawsuit pursuant to a consent decree. The agreed judgment, entered June 11, 2014, required that we make restitutionary payments to certain of its our customers, that we pay a $2 million penalty to the U.S. government, and that we implement procedural changes relating to compliance with fair debt collection practices and credit reporting. We have retained an independent third party to monitor our compliance with the judgment, and we must file certain periodic reports with the FTC. The payments to past and present customers have been completed and paid, partially in cash and partially in the form of credits against amounts owed. The total of such customer payments, cash and credit, was approximately $3.5 million.

Department of Justice Subpoena. In January 2015, we were served with a subpoena by the U.S. Department of Justice directing us to produce certain documents relating to our and our subsidiaries’ and affiliates’ origination and securitization of sub-prime automobile contracts since 2005, in connection with an investigation by the U.S. Department of Justice in contemplation of a civil proceeding for potential violations of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989. We are among several other securitizers of sub-prime automobile receivables who received such subpoenas in 2014 and 2015. Among other matters, the subpoena requested information relating to the underwriting criteria used to originate these automobile contracts and the representations and warranties relating to those underwriting criteria that were made in connection with the securitization of the automobile contracts. We provided the required documents in March 2015, and are unaware of any subsequent material developments in the government’s investigation. The investigation could in the future result in the imposition of damages, fines or civil or criminal claims and/or penalties. No assurance can be given as to the ultimate outcome of the investigation or any resulting proceeding(s), which might materially and adversely affect us.

In General. There can be no assurance as to the outcomes of the matters referenced above. We have recorded a liability as of December 31, 2015, which represents our best estimate of probable incurred losses for legal contingencies, including all of the matters described or referenced above. The amount of losses that may ultimately be incurred cannot be estimated with certainty. However, based on such information as is available to us, we believe that the range of reasonably possible losses for the legal proceedings and contingencies we face, including those described or referenced above, as of December 31, 2015, and in excess of the liability we have recorded, is from $0 to $250,000.

Accordingly, we believe that the ultimate resolution of such legal proceedings and contingencies, after taking into account our current litigation reserves, should not have a material adverse effect on our consolidated financial condition. We note, however, that in light of the uncertainties inherent in contested proceedings, the wide discretion vested in the U.S. Department of Justice and other government agencies, and the deference that courts may give to assertions made by government litigants, there can be no assurance that the ultimate resolution of these matters will not significantly exceed the reserves we have accrued; as a result, the outcome of a particular matter may be material to our operating results for a particular period, depending on, among other factors, the size of the loss or liability imposed and the level of our income for that period.

12. Employee Benefits

12 Months Ended

Dec. 31, 2015

Employee Benefits Details - Estimated Future Benefit Payments

Employee Benefits

(12) Employee Benefits

We sponsor a pretax savings and profit sharing plan (the “401(k) Plan”) qualified under Section 401(k) of the Internal Revenue Code. Under the 401(k) Plan, eligible employees are able to contribute up to 15% of their compensation (subject to stricter limitation in the case of highly compensated employees). We may, at our discretion, match 100% of employees’ contributions up to $1,500 per employee per calendar year. Our contributions to the 401(k) Plan were $838,000, $642,000 and $471,000, respectively, for the year ended December 31, 2015, 2014 and 2013.

We also sponsor a defined benefit plan, the MFN Financial Corporation Pension Plan (the “Plan”). The Plan benefits were frozen on June 30, 2001.

The following tables represents a reconciliation of the change in the plan’s benefit obligations, fair value of plan assets, and funded status at December 31, 2015 and 2014:

	December 31,
	2015			2014
	(In thousands)
Change in Projected Benefit Obligation
Projected benefit obligation, beginning of year	$	22,559		$	18,841
Service cost		–			–
Interest cost		843			888
Assumption changes		(485	)		3,570
Actuarial (gain) loss		(14	)		211
Settlements		–			–
Benefits paid		(1,518	)		(951	)
Projected benefit obligation, end of year	$	21,385		$	22,559

Change in Plan Assets
Fair value of plan assets, beginning of year	$	19,848		$	21,664
Return on assets		(1,818	)		(1,009	)
Employer contribution		–			237
Expenses		(138	)		(93	)
Settlements		–			–
Benefits paid		(1,518	)		(951	)
Fair value of plan assets, end of year	$	16,374		$	19,848

Funded Status at end of year	$	(5,011	)	$	(2,711	)

Additional Information

Weighted average assumptions used to determine benefit obligations and cost at December 31, 2015 and 2014 were as follows:

	December, 31
	2015	2014
Weighted average assumptions used to determine benefit obligations
Discount rate	4.20%	3.80%

Weighted average assumptions used to determine net periodic benefit cost
Discount rate	3.80%	4.75%
Expected return on plan assets	7.75%	8.00%

Our overall expected long-term rate of return on assets is 7.75% per annum as of December 31, 2015. The expected long-term rate of return is based on the weighted average of historical returns on individual asset categories, which are described in more detail below.

	December 31,
	2015			2014			2013
	(In thousands)
Amounts recognized on Consolidated Balance Sheet
Other assets	$	–		$	–		$	2,823
Other liabilities		(5,011	)		(2,711	)		–
Net amount recognized	$	(5,011	)	$	(2,711	)	$	2,823

Amounts recognized in accumulated other comprehensive loss consists of:
Net loss	$	10,592		$	7,977		$	1,367
Unrecognized transition asset		–			–			–
Net amount recognized	$	10,592		$	7,977		$	1,367

Components of net periodic benefit cost
Interest cost	$	843		$	888		$	823
Expected return on assets		(1,508	)		(1,727	)		(1,335	)
Amortization of transition asset		–			–			–
Amortization of net loss		349			–			484
Net periodic benefit cost		(316	)		(839	)		(28	)
Settlement (gain)/loss		–			–			–
Total	$	(316	)	$	(839	)	$	(28	)

Benefit Obligation Recognized in Other Comprehensive Loss (Income)
Net loss (gain)	$	2,615		$	6,610		$	(7,586	)
Prior service cost (credit)		–			–			–
Amortization of prior service cost		–			–			–
Net amount recognized in other comprehensive loss (income)	$	2,615		$	6,610		$	(7,586	)

The estimated net loss that will be amortized from accumulated other comprehensive income into net periodic benefit cost in 2016 is $553,000.

The weighted average asset allocation of our pension benefits at December 31, 2015 and 2014 were as follows:

	December 31,
	2015		2014
Weighted Average Asset Allocation at Year-End
Asset Category
Equity securities		84%		84%
Debt securities		16%		15%
Cash and cash equivalents		0%		1%
Total		100%		100%

Our investment policies and strategies for the pension benefits plan utilize a target allocation of 75% equity securities and 25% fixed income securities (excluding Company stock). Our investment goals are to maximize returns subject to specific risk management policies. We address risk management and diversification by the use of a professional investment advisor and several sub-advisors which invest in domestic and international equity securities and domestic fixed income securities. Each sub-advisor focuses its investments within a specific sector of the equity or fixed income market. For the sub-advisors focused on the equity markets, the sectors are differentiated by the market capitalization, the relative valuation and the location of the underlying issuer. For the sub-advisors focused on the fixed income markets, the sectors are differentiated by the credit quality and the maturity of the underlying fixed income investment. The investments made by the sub-advisors are readily marketable and can be sold to fund benefit payment obligations as they become payable.

Cash Flows

Estimated Future Benefit Payments (In thousands)
2016	$	766
2017		804
2018		840
2019		884
2020		930
Years 2021 - 2025		5,289

Anticipated Contributions in 2016	$	–

The fair value of plan assets at December 31, 2015 and 2014, by asset category, is as follows:

	December 31, 2015
	Level 1 (1)		Level 2 (2)		Level 3 (3)		Total
Investment Name:	(in thousands)
Company Common Stock	$	4,643	$	–	$	–	$	4,643
Large Cap Value		–		2,061		–		2,061
Mid Cap Index		–		578		–		578
Small Cap Growth		–		552		–		552
Small Cap Value		–		573		–		573
Focus Value		–		571		–		571
Growth		–		2,215		–		2,215
International Growth		–		2,475		–		2,475
Core Bond		–		1,833		–		1,833
High Yield		–		354		–		354
Inflation Protected Bond		–		482		–		482
Money Market		–		37		–		37
Total	$	4,643	$	11,731	$	–	$	16,374

	December 31, 2014
	Level 1 (1)		Level 2 (2)		Level 3 (3)		Total
Investment Name:	(in thousands)
Company Common Stock	$	6,542	$	–	$	–	$	6,542
Large Cap Value		–		2,378		–		2,378
Mid Cap Index		–		682		–		682
Small Cap Growth		–		691		–		691
Small Cap Value		–		673		–		673
Focus Value		–		700		–		700
Growth		–		2,383		–		2,383
International Growth		–		2,649		–		2,649
Core Bond		–		1,969		–		1,969
High Yield		–		382		–		382
Inflation Protected Bond		–		518		–		518
Money Market		–		281		–		281
Total	$	6,542	$	13,306	$	–	$	19,848

________________________

(1)

Company common stock is classified as level 1 and valued using quoted prices in active markets for identical assets.

(2)

All other plan assets in stock, bond and money market funds are classified as level 2 and valued using significant observable inputs.

(3)

There are no plan assets classified as level 3 in the fair value hierarchy as a result of having significant unobservable inputs.

13. Fair Value Measurements

12 Months Ended

Dec. 31, 2015

Fair Value Disclosures [Abstract]

Fair Value Measurements

(13) Fair Value Measurements

ASC 820, "Fair Value Measurements" clarifies the principle that fair value should be based on the assumptions market participants would use when pricing an asset or liability and establishes a fair value hierarchy that prioritizes the information used to develop those assumptions. Under the standard, fair value measurements are separately disclosed by level within the fair value hierarchy.

ASC 820 defines fair value, establishes a framework for measuring fair value, establishes a three-level valuation hierarchy for disclosure of fair value measurement and enhances disclosure requirements for fair value measurements. The three levels are defined as follows: level 1 - inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets; level 2 – inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument; and level 3 – inputs to the valuation methodology are unobservable and significant to the fair value measurement.

In September 2011, we acquired $217.8 million of finance receivables from Fireside Bank for a purchase price of $199.6 million. The receivables were acquired by our wholly-owned special purpose subsidiary, CPS Fender Receivables, LLC, which issued a note for $197.3 million, with a fair value of $196.5 million. Since the Fireside receivables were originated by another entity with its own underwriting guidelines and procedures, we have elected to account for the Fireside receivables and the related debt secured by those receivables at their estimated fair values so that changes in fair value will be reflected in our results of operations as they occur. Interest income from the receivables and interest expense on the note are included in interest income and interest expense, respectively. Changes to the fair value of the receivables and debt are included in other income. Our level 3, unobservable inputs reflect our own assumptions about the factors that market participants use in pricing similar receivables and debt, and are based on the best information available in the circumstances. They include such inputs as estimated net charge-offs and timing of the amortization of the portfolio of finance receivables. Our estimate of the fair value of the Fireside receivables is performed on a pool basis, rather than separately on each individual receivable.

The table below presents a reconciliation of the acquired finance receivables and related debt measured at fair value on a recurring basis using significant unobservable inputs:

	December 31,
	2015			2014
	(in thousands)
Finance Receivables Measured at Fair Value:
Balance at beginning of year	$	1,664		$	14,476
Payments on finance receivables at fair value		(1,603	)		(12,276	)
Charge-offs on finance receivables at fair value		–			(846	)
Discount accretion		–			283
Mark to fair value		–			27
Balance at end of year	$	61		$	1,664


Debt Secured by Finance Receivables Measured at Fair Value:
Balance at beginning of year	$	1,250		$	13,117
Principal payments on debt at fair value		(1,250	)		(12,456	)
Premium accretion		–			712
Mark to fair value		–			(123	)
Balance at end of year		–			1,250
Reduction for payments collected and payable		–			–
Adjusted balance at end of year	$	–		$	1,250

The table below compares the fair values of the Fireside receivables and the related secured debt to their contractual balances for the periods shown:

December 31, 2015

December 31, 2014

Contractual

Fair

Contractual

Fair

Balance

Value

Balance

Value

(In thousands)

Fireside receivables portfolio

1,664

Debt secured by Fireside receivables portfolio

–

1,250

The fair value of the debt secured by the Fireside receivables portfolio represents the discounted value of future cash flows that we estimate will become due to the lender in accordance with the terms of our financing for the Fireside portfolio. The terms of the debt provide for the lenders to receive a share of residual cash flows from the underlying receivables after the contractual balance of the debt is repaid and the Company’s investment in the Fireside portfolio is returned. The final residual payment was made in January 2015.

Repossessed vehicle inventory, which is included in Other assets on our unaudited condensed consolidated balance sheet, is measured at fair value using level 2 assumptions based on our actual loss experience on sale of repossessed vehicles. At December 31, 2015, the finance receivables related to the repossessed vehicles in inventory totaled $39.7 million. We have applied a valuation adjustment, or loss allowance, of $26.9 million, which is based on a recovery rate of approximately 32%, resulting in an estimated fair value and carrying amount of $12.8 million. The fair value and carrying amount of the repossessed inventory at December 31, 2014 was $10.4 million after applying a valuation adjustment of $17.8 million.

There were no transfers in or out of level 1 or level 2 assets and liabilities for 2015 and 2014. We have no level 3 assets that are measured at fair value on a non-recurring basis.

The following table provides certain qualitative information about our level 3 fair value measurements for assets and liabilities carried at fair value:

Financial Instrument		Fair Values as of					Inputs as of
		December 31,					December 31,
		2015		2014	Valuation Techniques	Unobservable Inputs	2015	2014
		(In thousands)
Assets:
						Discount rate	15.4%	15.4%
Finance receivables measured at fair value	$	61	$	1,664	Discounted cash flows	Cumulative net losses	5.0%	5.0%
						Monthly average prepayments	0.5%	0.5%

Liabilities:

Debt secured by receivables measured at fair value		–		1,250	Discounted cash flows	Discount rate	n/a	12.2%

The estimated fair values of financial assets and liabilities at December 31, 2015 and 2014, were as follows:

	As of December 31, 2015
Financial Instrument	(In thousands)
	Carrying		Fair Value Measurements Using:
	Value		Level 1		Level 2		Level 3		Total
Assets:
Cash and cash equivalents	$	19,322	$	19,322	$	–	$	–	$	19,322
Restricted cash and equivalents		106,054		106,054		–		–		106,054
Finance receivables, net		1,909,490		–		–		1,879,510		1,879,510
Finance receivables measured at fair value		61		–		–		61		61
Accrued interest receivable		31,547		–		–		31,547		31,547
Liabilities:
Warehouse lines of credit	$	196,461	$	–	$	–	$	196,461	$	196,461
Accrued interest payable		3,260		–		–		3,260		3,260
Residual interest financing		9,042		–		–		9,042		9,042
Securitization trust debt		1,731,598		–		–		1,718,418		1,718,418
Subordinated renewable notes		15,138		–		–		15,138		15,138

	As of December 31, 2014
Financial Instrument	(In thousands)
	Carrying		Fair Value Measurements Using:
	Value		Level 1		Level 2		Level 3		Total
Assets:
Cash and cash equivalents	$	17,859	$	17,859	$	–	$	–	$	17,859
Restricted cash and equivalents		175,382		175,382		–		–		175,382
Finance receivables, net		1,534,496		–		–		1,512,567		1,512,567
Finance receivables measured at fair value		1,664		–		–		1,664		1,664
Accrued interest receivable		23,372		–		–		23,372		23,372
Liabilities:
Warehouse lines of credit	$	56,839	$	–	$	–	$	56,839	$	56,839
Accrued interest payable		2,613		–		–		2,613		2,613
Residual interest financing		12,327		–		–		12,327		12,327
Debt secured by receivables measured at
fair value		1,250		–		–		1,250		1,250
Securitization trust debt		1,598,496		–		–		1,619,742		1,619,742
Subordinated renewable notes		15,233		–		–		15,233		15,233

The following summary presents a description of the methodologies and assumptions used to estimate the fair value of our financial instruments. Much of the information used to determine fair value is highly subjective. When applicable, readily available market information has been utilized. However, for a significant portion of our financial instruments, active markets do not exist. Therefore, significant elements of judgment were required in estimating fair value for certain items. The subjective factors include, among other things, the estimated timing and amount of cash flows, risk characteristics, credit quality and interest rates, all of which are subject to change. Since the fair value is estimated as of December 31, 2015 and 2014, the amounts that will actually be realized or paid at settlement or maturity of the instruments could be significantly different.

Cash, Cash Equivalents and Restricted Cash and Equivalents

The carrying value equals fair value.

Finance Receivables, net

The fair value of finance receivables is estimated by discounting future cash flows expected to be collected using current rates at which similar receivables could be originated.

Finance Receivables Measured at Fair Value and Debt Secured by Receivables Measured at Fair Value

The carrying value equals fair value.

Accrued Interest Receivable and Payable

The carrying value approximates fair value.

Warehouse Lines of Credit, Residual Interest Financing, and Subordinated Renewable Notes

The carrying value approximates fair value because the related interest rates are estimated to reflect current market conditions for similar types of secured instruments.

Securitization Trust Debt

The fair value is estimated by discounting future cash flows using interest rates that we believe reflect the current market rates.

14. Quarterly Financial Data (unaudited)

12 Months Ended

Dec. 31, 2015

Quarterly Financial Information Disclosure [Abstract]

Quarterly Financial Data (unaudited)

(14) Quarterly Financial Data (unaudited)

	Quarter Ended
	March 31,		June 30,		September 30,		December 31,
	(In thousands, except per share data)
2015
Revenues	$	85,989	$	88,361	$	93,991	$	95,308
Income before income tax expense		14,749		15,200		15,649		15,783
Net income		8,333		8,537		8,843		8,967
Earnings per share:
Basic	$	0.33	$	0.33	$	0.34	$	0.35
Diluted		0.26		0.27		0.28		0.29

2014
Revenues	$	68,146	$	71,594	$	77,050	$	83,467
Income before income tax expense		11,764		12,329		13,804		14,346
Net income		6,705		7,026		7,776		8,010
Earnings per share:
Basic	$	0.28	$	0.28	$	0.31	$	0.31
Diluted		0.21		0.22		0.24		0.25

2013
Revenues	$	54,594	$	70,482	$	64,066	$	66,634
Income before income tax expense		6,528		8,546		10,559		11,540
Net income		3,785		4,825		5,873		6,522
Earnings per share:
Basic	$	0.19	$	0.23	$	0.27	$	0.28
Diluted		0.12		0.15		0.19		0.21

15. Subsequent Events

12 Months Ended

Dec. 31, 2015

Subsequent Events [Abstract]

15. Subsequent Events

On January 27, 2016 we executed our first securitization of 2016. In the transaction, qualified institutional buyers purchased $329.5 million of asset-backed notes secured by $340.0 million in automobile receivables purchased by us. The sold notes, issued by CPS Auto Receivables Trust 2016-A, consist of five classes. Ratings of the notes were provided by Standard & Poor’s and DBRS and were based on the structure of the transaction, the historical performance of similar receivables and our experience as a servicer. We retained the most subordinated notes, Class F, in the principal amount of $10,540,000. The weighted average yield on the notes, including the retained notes, is approximately 4.34%.

The 2016-A transaction has initial credit enhancement consisting of a cash deposit equal to 1.00% of the original receivable pool balance. The final enhancement level requires accelerated payment of principal on the notes to reach overcollateralization of 4.00% of the then-outstanding receivable pool balance. The transaction utilizes a pre-funding structure, in which CPS sold approximately $255.9 million of receivables on January 27, 2016 and sold $84.1 million of additional receivables on February 5, 2016.

The transaction was a private offering of securities, not registered under the Securities Act of 1933, or any state securities law.

1. Summary of Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2015

Accounting Policies [Abstract]

Description of Business

Principles of Consolidation

Cash and Cash Equivalents

Finance Receivables

Allowance for Finance Credit Losses

Finance Receivables and Related Debt Measured at Fair Value

Charge Off Policy

Contract Acquisition Fees and Origination Costs

Repossessed and Other Assets

Treatment of Securitizations

Treatment of Securitizations

Our term securitization structure has generally been as follows:

Servicing

Furniture and Equipment

Impairment of Long-Lived Assets and Long-Lived Assets to Be Disposed Of

Other Income

The following table presents the primary components of Other Income:

	Year Ended December 31,
	2015		2014		2013
	(In thousands)
Direct mail revenues	$	8,927	$	7,975	$	7,004
Convenience fee revenue		2,610		3,300		2,965
Recoveries on previously charged-off contracts		1,079		143		177
Sales tax refunds		616		500		197
Other		187		228		62
	$	13,419	$	12,146	$	10,405

Earnings Per Share

The following table illustrates the computation of basic and diluted earnings per share:

	Year Ended December 31,
	2015		2014		2013
	(In thousands, except per share data)
Numerator:
Numerator for basic and diluted earnings per share	$	34,681	$	29,516	$	21,005
Denominator:
Denominator for basic earnings per share - weighted average number of common shares outstanding during the year		25,935		25,040		21,538
Incremental common shares attributable to exercise of outstanding options and warrants		5,649		6,992		10,036
Denominator for diluted earnings per share		31,584		32,032		31,574
Basic earnings per share	$	1.34	$	1.18	$	0.98
Diluted earnings per share	$	1.10	$	0.92	$	0.67

Deferral and Amortization of Debt Issuance Costs

Costs related to the issuance of debt are deferred and amortized using the interest method over the contractual or expected term of the related debt.

Income Taxes

Purchases of Company Stock

We record purchases of our own common stock at cost and treat the shares as retired.

Stock Option Plan

Use of Estimates

Reclassification

Certain amounts for the prior year have been reclassified to conform to the current year’s presentation with no effect on previously reported earnings or shareholders’ equity.

Financial Covenants

Financial Covenants

Gain on Cancellation of Debt

Gain on Cancellation of Debt

Provision for Contingent Liabilities

Provision for Contingent Liabilities

Recently Issued Accounting Standards

Recently Issued Accounting Standards

1. Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2015

Accounting Policies [Abstract]

Other Income

The following table presents the primary components of Other Income:

	Year Ended December 31,
	2015		2014		2013
	(In thousands)
Direct mail revenues	$	8,927	$	7,975	$	7,004
Convenience fee revenue		2,610		3,300		2,965
Recoveries on previously charged-off contracts		1,079		143		177
Sales tax refunds		616		500		197
Other		187		228		62
	$	13,419	$	12,146	$	10,405

Earnings Per Share

The following table illustrates the computation of basic and diluted earnings per share:

	Year Ended December 31,
	2015		2014		2013
	(In thousands, except per share data)
Numerator:
Numerator for basic and diluted earnings per share	$	34,681	$	29,516	$	21,005
Denominator:
Denominator for basic earnings per share - weighted average number of common shares outstanding during the year		25,935		25,040		21,538
Incremental common shares attributable to exercise of outstanding options and warrants		5,649		6,992		10,036
Denominator for diluted earnings per share		31,584		32,032		31,574
Basic earnings per share	$	1.34	$	1.18	$	0.98
Diluted earnings per share	$	1.10	$	0.92	$	0.67

3. Finance Receivables (Tables)

12 Months Ended

Dec. 31, 2015

Receivables [Abstract]

Financial Receivables

	December 31,
	2015			2014
	(In thousands)
Finance receivables
Automobile finance receivables, net of unearned interest	$	1,990,913		$	1,612,246
Less: Unearned acquisition fees, discounts and deferred origination costs, net		(5,820	)		(16,290	)
Finance receivables	$	1,985,093		$	1,595,956

Delinquency status of finance receivables

	December 31,
	2015		2014
	(In thousands)
Deliquency Status
Current	$	1,836,267	$	1,523,020
31 - 60 days		70,036		42,730
61 - 90 days		41,136		23,300
91 + days		43,474		23,196
	$	1,990,913	$	1,612,246

Allowance for credit losses

	December 31,
	2015			2014			2013
	(In thousands)
Balance at beginning of year	$	61,460		$	39,626		$	19,594
Provision for credit losses		142,618			108,228			76,869
Charge-offs		(156,553	)		(109,914	)		(69,455	)
Recoveries		28,078			23,520			12,618
Balance at end of year	$	75,603		$	61,460		$	39,626

Allowance for losses on repossessed inventory

	December 31,
	2015			2014
	(In thousands)
Gross balance of repossessions in inventory	$	39,728		$	28,234
Allowance for losses on repossessed inventory		(26,954	)		(17,829	)
Net repossessed inventory included in other assets	$	12,774		$	10,405

4. Furniture and Equipment (Tables)

12 Months Ended

Dec. 31, 2015

Furniture And Equipment Tables

Furniture and equipment

The following table presents the components of furniture and equipment:

	December 31,
	2015			2014
	(In thousands)
Furniture and fixtures	$	1,517		$	1,396
Computer and telephone equipment		5,249			4,424
Leasehold improvements		1,116			871
		7,882			6,691
Less: accumulated depreciation and amortization		(6,167	)		(5,530	)
	$	1,715		$	1,161

5. Securitization Trust Debt (Tables)

12 Months Ended

Dec. 31, 2015

Securitization Trust Debt

Securitization trust debt

		Final Scheduled Payment		Receivables Pledged at December 31,		Initial		Outstanding Principal at December 31,		Outstanding Principal at December 31,		Weighted Average Interest Rate at December 31,
Series		Date (1)		2015 (2)		Principal		2015		2014		2015
				(Dollars in thousands)
	CPS 2011-A		April 2018		–		100,364		–		8,457		–
	CPS 2011-B		September 2018		10,469		109,936		10,023		22,985		4.40%
	CPS 2011-C		March 2019		14,756		119,400		14,785		30,601		4.91%
	CPS 2012-A		June 2019		18,273		155,000		16,795		35,923		3.15%
	CPS 2012-B		September 2019		27,463		141,500		26,758		50,125		3.07%
	CPS 2012-C		December 2019		31,556		147,000		30,653		55,619		2.34%
	CPS 2012-D		March 2020		38,886		160,000		37,464		67,833		1.92%
	CPS 2013-A		June 2020		58,082		185,000		56,583		97,775		1.85%
	CPS 2013-B		September 2020		72,081		205,000		70,332		118,692		2.36%
	CPS 2013-C		December 2020		83,811		205,000		82,851		133,628		3.43%
	CPS 2013-D		March 2021		83,263		183,000		82,337		132,150		2.99%
	CPS 2014-A		June 2021		93,776		180,000		92,571		143,456		2.51%
	CPS 2014-B		September 2021		121,772		202,500		121,515		177,601		2.21%
	CPS 2014-C		December 2021		184,739		273,000		183,802		256,151		2.41%
	CPS 2014-D		March 2022		200,611		267,500		198,533		267,500		2.63%
	CPS 2015-A		June 2022		203,819		245,000		201,527		–		2.48%
	CPS 2015-B		September 2022		226,054		250,000		221,587		–		2.57%
	CPS 2015-C		December 2022		287,685		300,000		283,482		–		2.96%
				$	1,757,096	$	3,429,200	$	1,731,598	$	1,598,496

6. Debt (Tables)

12 Months Ended

Dec. 31, 2015

Debt Disclosure [Abstract]

Debt Outstanding

The terms of our debt outstanding at December 31, 2015 and 2014 are summarized below:

			Amount Outstanding at
			December 31,		December 31,
			2015		2014
			(In thousands)
Description	Interest Rate	Maturity

Warehouse lines of credit	5.50% over one month Libor (Minimum 6.50%)	April 2019	$	91,504	$	23,581

	5.50% over one month Libor (Minimum 6.25%)	August 2017		73,940		33,258

	6.75% over one month Libor (Minimum 7.75%)	November 2019		31,017		–

Residual interest financing	11.75% over one month Libor	April 2018		9,042		12,327

Debt secured by receivables measured at fair value	n/a	Repayment is based on payments from underlying receivables. Final payment of the 8.00% loan was made in September 2013. Final residual payment was made in January 2015.		–		1,250

Subordinated renewable notes	Weighted average rate of 9.04% and 10.7% at December 31, 2015 and 2014, respectively	Weighted average maturity of October 2017 and October 2016 at December 31, 2015 and 2014, respectively		15,138		15,233

			$	220,641	$	85,649

Contractual and expected maturity amounts of debt

Contractual maturity date	Residual interest financing (1)		Subordinated renewable notes		Total
	(In thousands)

2016	$	2,400	$	9,910	$	12,310
2017		3,900		1,781		5,681
2018		2,742		1,110		3,852
2019		–		276		276
2020		–		342		342
Thereafter		–		1,719		1,719
Total	$	9,042	$	15,138	$	24,180

7. Shareholders' Equity (Tables)

12 Months Ended

Dec. 31, 2015

Shareholders Equity Tables

Options and Warrants assumptions used

	Year Ended December 31,
	2015		2014		2013
Expected life (years)		4.21		4.22		5.41
Risk-free interest rate		1.35%		1.43%		0.73%
Volatility		51%		55%		80%
Expected dividend yield		–		–		–

Stock option activity

Stock option activity for the year ended December 31, 2015 for stock options under the 2006 and 1997 plans is as follows:

	Number of Shares (in thousands)			Weighted Average Exercise Price		Weighted Average Remaining Contractual Term
Options outstanding at the beginning of period		10,828		$	4.05	N/A
Granted		1,965			6.11	N/A
Exercised		(1,233	)		1.39	N/A
Forfeited/Expired		(332	)		5.43	N/A
Options outstanding at the end of period		11,228		$	4.66	5.55 years

Options exercisable at the end of period		6,132		$	3.49	4.87 years

8. Interest Income and Interest Expense (Tables)

12 Months Ended

Dec. 31, 2015

Interest Income And Interest Expense

Interest income

	Year Ended December 31,
	2015		2014		2013
	(In thousands)
Interest on finance receivables	$	349,796	$	286,361	$	231,320
Residual interest income		92		372		–
Other interest income		24		1		10

Interest income	$	349,912	$	286,734	$	231,330

Interest expense

	Year Ended December 31,
	2015		2014		2013
	(In thousands)
Securitization trust debt	$	48,631	$	38,558	$	34,744
Warehouse lines of credit		6,127		5,217		5,003
Senior secured debt, related party		–		1,651		8,064
Debt secured by receivables at fair value		–		772		3,877
Residual interest financing		1,405		1,989		3,330
Subordinated renewable notes		1,582		2,208		3,161
Interest expense	$	57,745	$	50,395	$	58,179

9. Income Taxes (Tables)

12 Months Ended

Dec. 31, 2015

Income Tax Disclosure [Abstract]

Income taxes

	Year Ended December 31,
	2015		2014		2013
	(In thousands)
Current federal tax expense	$	18,653	$	1,348	$	977
Current state tax expense		1,146		1,316		365
Deferred federal tax expense		4,233		18,338		13,306
Deferred state tax expense		2,669		1,724		1,520
Income tax expense	$	26,701	$	22,726	$	16,168

Income tax expense/(benefit)

	Year Ended December 31,
	2015		2014		2013
	(In thousands)
Expense at federal tax rate	$	21,484	$	18,285	$	13,011
State taxes, net of federal income tax effect		3,235		2,651		2,079
Stock-based compensation		1,560		1,182		911
Non-deductible expenses		107		116		619
Other		315		492		(452	)
	$	26,701	$	22,726	$	16,168

Deferred tax assets and liabilities

	December 31,
	2015			2014
	(In thousands)
Deferred Tax Assets:
Finance receivables	$	20,825		$	19,046
Accrued liabilities		3,091			2,551
Furniture and equipment		–			16
NOL carryforwards		3,272			6,922
Built in losses		10,254			11,698
Pension accrual		1,999			1,090
AMT credit carryforward		166			2,899
Other		1,109			941
Total deferred tax assets		40,716			45,163

Deferred Tax Liabilities:
Deferred loan costs		(2,894	)		(2,316	)
Furniture and equipment		(225	)		–
Total deferred tax liabilities		(3,119)			(2,316	)

Net deferred tax asset	$	37,597		$	42,847

12. Employee Benefits (Tables)

12 Months Ended

Dec. 31, 2015

Employee Benefits Details - Estimated Future Benefit Payments

Reconciliation of the change in the plan's benefit obligations

	December 31,
	2015			2014
	(In thousands)
Change in Projected Benefit Obligation
Projected benefit obligation, beginning of year	$	22,559		$	18,841
Service cost		–			–
Interest cost		843			888
Assumption changes		(485	)		3,570
Actuarial (gain) loss		(14	)		211
Settlements		–			–
Benefits paid		(1,518	)		(951	)
Projected benefit obligation, end of year	$	21,385		$	22,559

Change in Plan Assets
Fair value of plan assets, beginning of year	$	19,848		$	21,664
Return on assets		(1,818	)		(1,009	)
Employer contribution		–			237
Expenses		(138	)		(93	)
Settlements		–			–
Benefits paid		(1,518	)		(951	)
Fair value of plan assets, end of year	$	16,374		$	19,848

Funded Status at end of year	$	(5,011	)	$	(2,711	)

Weighted average assumptions used to determine pension benefit obligations

	December, 31
	2015	2014
Weighted average assumptions used to determine benefit obligations
Discount rate	4.20%	3.80%

Weighted average assumptions used to determine net periodic benefit cost
Discount rate	3.80%	4.75%
Expected return on plan assets	7.75%	8.00%

Schedule of accumulated pension benefit obligation

	December 31,
	2015			2014			2013
	(In thousands)
Amounts recognized on Consolidated Balance Sheet
Other assets	$	–		$	–		$	2,823
Other liabilities		(5,011	)		(2,711	)		–
Net amount recognized	$	(5,011	)	$	(2,711	)	$	2,823

Amounts recognized in accumulated other comprehensive loss consists of:
Net loss	$	10,592		$	7,977		$	1,367
Unrecognized transition asset		–			–			–
Net amount recognized	$	10,592		$	7,977		$	1,367

Components of net periodic benefit cost
Interest cost	$	843		$	888		$	823
Expected return on assets		(1,508	)		(1,727	)		(1,335	)
Amortization of transition asset		–			–			–
Amortization of net loss		349			–			484
Net periodic benefit cost		(316	)		(839	)		(28	)
Settlement (gain)/loss		–			–			–
Total	$	(316	)	$	(839	)	$	(28	)

Benefit Obligation Recognized in Other Comprehensive Loss (Income)
Net loss (gain)	$	2,615		$	6,610		$	(7,586	)
Prior service cost (credit)		–			–			–
Amortization of prior service cost		–			–			–
Net amount recognized in other comprehensive loss (income)	$	2,615		$	6,610		$	(7,586	)

Weighted average asset allocation of our pension benefits

	December 31,
	2015		2014
Weighted Average Asset Allocation at Year-End
Asset Category
Equity securities		84%		84%
Debt securities		16%		15%
Cash and cash equivalents		0%		1%
Total		100%		100%

Estimated Future Benefit Payments

Cash Flows

Estimated Future Benefit Payments (In thousands)
2016	$	766
2017		804
2018		840
2019		884
2020		930
Years 2021 - 2025		5,289

Anticipated Contributions in 2016	$	–

Fair value of plan assets

	December 31, 2015
	Level 1 (1)		Level 2 (2)		Level 3 (3)		Total
Investment Name:	(in thousands)
Company Common Stock	$	4,643	$	–	$	–	$	4,643
Large Cap Value		–		2,061		–		2,061
Mid Cap Index		–		578		–		578
Small Cap Growth		–		552		–		552
Small Cap Value		–		573		–		573
Focus Value		–		571		–		571
Growth		–		2,215		–		2,215
International Growth		–		2,475		–		2,475
Core Bond		–		1,833		–		1,833
High Yield		–		354		–		354
Inflation Protected Bond		–		482		–		482
Money Market		–		37		–		37
Total	$	4,643	$	11,731	$	–	$	16,374

	December 31, 2014
	Level 1 (1)		Level 2 (2)		Level 3 (3)		Total
Investment Name:	(in thousands)
Company Common Stock	$	6,542	$	–	$	–	$	6,542
Large Cap Value		–		2,378		–		2,378
Mid Cap Index		–		682		–		682
Small Cap Growth		–		691		–		691
Small Cap Value		–		673		–		673
Focus Value		–		700		–		700
Growth		–		2,383		–		2,383
International Growth		–		2,649		–		2,649
Core Bond		–		1,969		–		1,969
High Yield		–		382		–		382
Inflation Protected Bond		–		518		–		518
Money Market		–		281		–		281
Total	$	6,542	$	13,306	$	–	$	19,848

________________________

13. Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2015

Fair Value Disclosures [Abstract]

Reconciliation of the acquired finance receivables and related debt measured at fair value on a recurring basis

	December 31,
	2015			2014
	(in thousands)
Finance Receivables Measured at Fair Value:
Balance at beginning of year	$	1,664		$	14,476
Payments on finance receivables at fair value		(1,603	)		(12,276	)
Charge-offs on finance receivables at fair value		–			(846	)
Discount accretion		–			283
Mark to fair value		–			27
Balance at end of year	$	61		$	1,664


Debt Secured by Finance Receivables Measured at Fair Value:
Balance at beginning of year	$	1,250		$	13,117
Principal payments on debt at fair value		(1,250	)		(12,456	)
Premium accretion		–			712
Mark to fair value		–			(123	)
Balance at end of year		–			1,250
Reduction for payments collected and payable		–			–
Adjusted balance at end of year	$	–		$	1,250

Comparison of fair values of the Fireside receivables and the related secured debt

December 31, 2015

December 31, 2014

Contractual

Fair

Contractual

Fair

Balance

Value

Balance

Value

(In thousands)

Fireside receivables portfolio

1,664

Debt secured by Fireside receivables portfolio

–

1,250

Qualitative information about level 3 fair value measurements

Financial Instrument		Fair Values as of					Inputs as of
		December 31,					December 31,
		2015		2014	Valuation Techniques	Unobservable Inputs	2015	2014
		(In thousands)
Assets:
						Discount rate	15.4%	15.4%
Finance receivables measured at fair value	$	61	$	1,664	Discounted cash flows	Cumulative net losses	5.0%	5.0%
						Monthly average prepayments	0.5%	0.5%

Liabilities:

Debt secured by receivables measured at fair value		–		1,250	Discounted cash flows	Discount rate	n/a	12.2%

Estimated fair values of financial assets and liabilities

	As of December 31, 2015
Financial Instrument	(In thousands)
	Carrying		Fair Value Measurements Using:
	Value		Level 1		Level 2		Level 3		Total
Assets:
Cash and cash equivalents	$	19,322	$	19,322	$	–	$	–	$	19,322
Restricted cash and equivalents		106,054		106,054		–		–		106,054
Finance receivables, net		1,909,490		–		–		1,879,510		1,879,510
Finance receivables measured at fair value		61		–		–		61		61
Accrued interest receivable		31,547		–		–		31,547		31,547
Liabilities:
Warehouse lines of credit	$	196,461	$	–	$	–	$	196,461	$	196,461
Accrued interest payable		3,260		–		–		3,260		3,260
Residual interest financing		9,042		–		–		9,042		9,042
Securitization trust debt		1,731,598		–		–		1,718,418		1,718,418
Subordinated renewable notes		15,138		–		–		15,138		15,138

	As of December 31, 2014
Financial Instrument	(In thousands)
	Carrying		Fair Value Measurements Using:
	Value		Level 1		Level 2		Level 3		Total
Assets:
Cash and cash equivalents	$	17,859	$	17,859	$	–	$	–	$	17,859
Restricted cash and equivalents		175,382		175,382		–		–		175,382
Finance receivables, net		1,534,496		–		–		1,512,567		1,512,567
Finance receivables measured at fair value		1,664		–		–		1,664		1,664
Accrued interest receivable		23,372		–		–		23,372		23,372
Liabilities:
Warehouse lines of credit	$	56,839	$	–	$	–	$	56,839	$	56,839
Accrued interest payable		2,613		–		–		2,613		2,613
Residual interest financing		12,327		–		–		12,327		12,327
Debt secured by receivables measured at
fair value		1,250		–		–		1,250		1,250
Securitization trust debt		1,598,496		–		–		1,619,742		1,619,742
Subordinated renewable notes		15,233		–		–		15,233		15,233

- Definition

Tabular disclosure of the application of the fair value option for measurement and reporting of eligible financial assets and liabilities (as defined), as well as certain other eligible items (as defined) included in the statement of financial position, whether such option is elected for a single eligible item or a group of similar eligible items and is in addition to other disclosures concerning fair value which the company may be required to provide. Such disclosure might be expected to include: (1) for items included in the statement of financial position: (a) the reasons for electing a fair value option for each eligible item or group of similar eligible items and (b) if the fair value option is elected for some but not all eligible items within a group of similar eligible items: (i) a description of those similar items and the reasons for partial election and (ii) information of how the group of similar items relates to individual balance sheet line items; (c) for each line item in the statement of financial position that includes an item or items for which the fair value option has been elected, information of how each line item in the statement of financial position relates to major categories of assets and liabilities presented in accordance with other fair value disclosures; (2) for items included in the income statement: (a) a description of how interest and dividends are measured and where they are reported in the income statement; (b) how the gains or losses attributable to changes in instrument-specific credit risk were determined; (c) for liabilities with fair values that have been significantly affected during the reporting period by changes in the instrument-specific credit risk: (i) qualitative information about the reasons for the changes and (ii) how the gains and losses attributable to changes in instrument-specific credit risk were determined; and (3) certain other disclosures as required or determined to be provided.

+ References + Details

14. Quarterly Financial Data (Tables)

12 Months Ended

Dec. 31, 2015

Quarterly Financial Information Disclosure [Abstract]

Quarterly Financial Data

	Quarter Ended
	March 31,		June 30,		September 30,		December 31,
	(In thousands, except per share data)
2015
Revenues	$	85,989	$	88,361	$	93,991	$	95,308
Income before income tax expense		14,749		15,200		15,649		15,783
Net income		8,333		8,537		8,843		8,967
Earnings per share:
Basic	$	0.33	$	0.33	$	0.34	$	0.35
Diluted		0.26		0.27		0.28		0.29

2014
Revenues	$	68,146	$	71,594	$	77,050	$	83,467
Income before income tax expense		11,764		12,329		13,804		14,346
Net income		6,705		7,026		7,776		8,010
Earnings per share:
Basic	$	0.28	$	0.28	$	0.31	$	0.31
Diluted		0.21		0.22		0.24		0.25

2013
Revenues	$	54,594	$	70,482	$	64,066	$	66,634
Income before income tax expense		6,528		8,546		10,559		11,540
Net income		3,785		4,825		5,873		6,522
Earnings per share:
Basic	$	0.19	$	0.23	$	0.27	$	0.28
Diluted		0.12		0.15		0.19		0.21

1. Summary of Significant Accounting Policies (Details - Schedule of Other Income) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Primary components of Other Income
Other income for the period	$ 13,419	$ 12,146	$ 10,405
Direct Mail Revenues [Member]
Primary components of Other Income
Other income for the period	8,927	7,975	7,004
Convenience Fee Revenue [Member]
Primary components of Other Income
Other income for the period	2,610	3,300	2,965
Recoveries on previously charged-off contracts [Member]
Primary components of Other Income
Other income for the period	1,079	143	177
Sales Tax Refunds [Member]
Primary components of Other Income
Other income for the period	616	500	197
Other Income [Member]
Primary components of Other Income
Other income for the period	$ 187	$ 228	$ 62

1. Summary of Significant Accounting Policies (Details - Earnings per share) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended												12 Months Ended
	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Earnings per share:
Numerator for basic and diluted earnings per share	$ 8,967	$ 8,843	$ 8,537	$ 8,333	$ 8,010	$ 7,776	$ 7,026	$ 6,705	$ 6,522	$ 5,873	$ 4,825	$ 3,785	$ 34,681	$ 29,516	$ 21,005
Denominator for basic earnings per share - weighted average number of common shares outstanding during the year													25,935,000	25,040,000	21,538,000
Incremental common shares attibutable to exercise of outstanding options and warrants													5,649,000	6,992,000	10,036,000
Denominator for diluted earnings per share													31,584,000	32,032,000	31,574,000
Basic earnings per share	$ .35	$ .34	$ .33	$ .33	$ 0.31	$ 0.31	$ 0.28	$ 0.28	$ 0.28	$ 0.27	$ 0.23	$ 0.19	$ 1.34	$ 1.18	$ 0.98
Diluted earnings per share	$ .29	$ .28	$ .27	$ .26	$ 0.25	$ 0.24	$ 0.22	$ 0.21	$ 0.21	$ 0.19	$ 0.15	$ 0.12	$ 1.10	$ 0.92	$ 0.67

- Definition

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

+ References + Details

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References + Details

1. Summary of Significant Accounting Policies (Details Narrative) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Unrestricted cash balance	$ 19,322	$ 17,859	$ 22,112	$ 12,966
Other assets	$ 23,139	$ 23,915
Incremental shares excluded from EPS calculation	6,800,000	4,500,000	2,100,000
Repossessed Vehicles [Member]
Other assets	$ 12,800	$ 10,400
CPS Leasing, Inc. [Member]
Ownership percentage in subsidiary	80.00%
Dealer concentration [Member] \| Geographic Concentration [Member] \| CALIFORNIA
Concentration percentage	8.90%	8.70%
Dealer concentration [Member] \| Geographic Concentration [Member] \| TEXAS
Concentration percentage	7.90%	10.00%
Dealer concentration [Member] \| Geographic Concentration [Member] \| OHIO
Concentration percentage	6.50%	5.70%
Dealer concentration [Member] \| Geographic Concentration [Member] \| FLORIDA
Concentration percentage	5.30%	5.00%
Dealer concentration [Member] \| Geographic Concentration [Member] \| GEORGIA
Concentration percentage	5.20%	4.40%

3. Finance Receivables (Details - Finance Receivables) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Finance Receivables
Automobile finance receivables, net of unearned interest	$ 1,990,913	$ 1,612,246
Less: Unearned acquisition fees and discounts	(5,820)	(16,290)
Finance Receivables	$ 1,985,093	$ 1,595,956

3. Finance Receivables (Details - Delinquency Status) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Delinquency Status
Current	$ 1,836,267	$ 1,523,020
31 - 60 days	70,036	42,730
61 - 90 days	41,136	23,300
91 + days	43,474	23,196
Finance receivables	$ 1,990,913	$ 1,612,246

3. Finance Receivables (Details - Allowance for Credit Losses) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Finance Receivables Details - Repossessed Inventory
Balance at beginning of period	$ 61,460	$ 39,626	$ 19,594
Provision for credit losses	142,618	108,228	76,869
Charge-offs	(156,553)	(109,914)	(69,455)
Recoveries	28,078	23,520	12,618
Balance at end of period	$ 75,603	$ 61,460	$ 39,626

3. Finance Receivables (Details - Repossessed Inventory) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Finance Receivables Details - Repossessed Inventory
Gross balance of repossessions in inventory	$ 39,728	$ 28,234
Allowance for losses on repossessed inventory	(26,954)	(17,829)
Net repossessed inventory included in other assets	$ 12,774	$ 10,405

4. Furniture and Equipment (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Furniture and equipment, gross	$ 7,882	$ 6,691
Less: accumulated depreciation and amortization	(6,167)	(5,530)
Furniture and equipment, net	1,715	1,161
Furniture and Fixtures [Member]
Furniture and equipment, gross	1,517	1,396
Computer and Telephone Equipment [Member]
Furniture and equipment, gross	5,249	4,424
Leasehold Improvements [Member]
Furniture and equipment, gross	$ 1,116	$ 871

5. Securitization Trust Debt (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
"Securitization trust debt," and components of debt
Receivables Pledged at end of period	$ 1,757,096
Initial Principal	3,429,200
Outstanding Principal	$ 1,731,598	$ 1,598,496
CPS 2011-A [Member]
"Securitization trust debt," and components of debt
Final Scheduled Payment Date	April 2018
Receivables Pledged at end of period	$ 0
Initial Principal	100,364
Outstanding Principal	$ 0	8,457
Weighted Average Contractual Interest Rate	0.00%
CPS 2011-B [Member]
"Securitization trust debt," and components of debt
Final Scheduled Payment Date	September 2018
Receivables Pledged at end of period	$ 10,469
Initial Principal	109,936
Outstanding Principal	$ 10,023	22,985
Weighted Average Contractual Interest Rate	4.40%
CPS 2011-C [Member]
"Securitization trust debt," and components of debt
Final Scheduled Payment Date	March 2019
Receivables Pledged at end of period	$ 14,756
Initial Principal	119,400
Outstanding Principal	$ 14,785	30,601
Weighted Average Contractual Interest Rate	4.91%
CPS 2012-A [Member]
"Securitization trust debt," and components of debt
Final Scheduled Payment Date	June 2019
Receivables Pledged at end of period	$ 18,273
Initial Principal	155,000
Outstanding Principal	$ 16,795	35,923
Weighted Average Contractual Interest Rate	3.15%
CPS 2012-B [Member]
"Securitization trust debt," and components of debt
Final Scheduled Payment Date	September 2019
Receivables Pledged at end of period	$ 27,463
Initial Principal	141,500
Outstanding Principal	$ 26,758	50,125
Weighted Average Contractual Interest Rate	3.07%
CPS 2012-C [Member]
"Securitization trust debt," and components of debt
Final Scheduled Payment Date	December 2019
Receivables Pledged at end of period	$ 31,556
Initial Principal	147,000
Outstanding Principal	$ 30,653	55,619
Weighted Average Contractual Interest Rate	2.34%
CPS 2012-D [Member]
"Securitization trust debt," and components of debt
Final Scheduled Payment Date	March 2020
Receivables Pledged at end of period	$ 38,886
Initial Principal	160,000
Outstanding Principal	$ 37,464	67,833
Weighted Average Contractual Interest Rate	1.92%
CPS 2013-A [Member]
"Securitization trust debt," and components of debt
Final Scheduled Payment Date	June 2020
Receivables Pledged at end of period	$ 58,082
Initial Principal	185,000
Outstanding Principal	$ 56,583	97,775
Weighted Average Contractual Interest Rate	1.85%
CPS 2013-B [Member]
"Securitization trust debt," and components of debt
Final Scheduled Payment Date	September 2020
Receivables Pledged at end of period	$ 72,081
Initial Principal	205,000
Outstanding Principal	$ 70,332	118,692
Weighted Average Contractual Interest Rate	2.36%
CPS 2013-C [Member]
"Securitization trust debt," and components of debt
Final Scheduled Payment Date	December 2020
Receivables Pledged at end of period	$ 83,811
Initial Principal	205,000
Outstanding Principal	$ 82,851	113,628
Weighted Average Contractual Interest Rate	3.43%
CPS 2013-D [Member]
"Securitization trust debt," and components of debt
Final Scheduled Payment Date	March 2021
Receivables Pledged at end of period	$ 83,263
Initial Principal	183,000
Outstanding Principal	$ 82,337	132,150
Weighted Average Contractual Interest Rate	2.99%
CPS 2014-A [Member]
"Securitization trust debt," and components of debt
Final Scheduled Payment Date	June 2021
Receivables Pledged at end of period	$ 93,776
Initial Principal	180,000
Outstanding Principal	$ 92,571	143,456
Weighted Average Contractual Interest Rate	2.51%
CPS 2014-B [Member]
"Securitization trust debt," and components of debt
Final Scheduled Payment Date	September 2021
Receivables Pledged at end of period	$ 121,772
Initial Principal	202,500
Outstanding Principal	$ 121,515	177,601
Weighted Average Contractual Interest Rate	2.21%
CPS 2014-C [Member]
"Securitization trust debt," and components of debt
Final Scheduled Payment Date	December 2021
Receivables Pledged at end of period	$ 184,739
Initial Principal	273,000
Outstanding Principal	$ 183,802	256,151
Weighted Average Contractual Interest Rate	2.41%
CPS 2014-D [Member]
"Securitization trust debt," and components of debt
Final Scheduled Payment Date	March 2022
Receivables Pledged at end of period	$ 200,611
Initial Principal	267,500
Outstanding Principal	$ 198,533	267,500
Weighted Average Contractual Interest Rate	2.63%
CPS 2015-A [Member]
"Securitization trust debt," and components of debt
Final Scheduled Payment Date	June 2022
Receivables Pledged at end of period	$ 203,819
Initial Principal	245,000
Outstanding Principal	$ 201,527	0
Weighted Average Contractual Interest Rate	2.48%
CPS 2015-B [Member]
"Securitization trust debt," and components of debt
Final Scheduled Payment Date	September 2022
Receivables Pledged at end of period	$ 226,054
Initial Principal	250,000
Outstanding Principal	$ 221,587	0
Weighted Average Contractual Interest Rate	2.57%
CPS 2015-C [Member]
"Securitization trust debt," and components of debt
Final Scheduled Payment Date	December 2022
Receivables Pledged at end of period	$ 287,685
Initial Principal	300,000
Outstanding Principal	$ 283,482	$ 0
Weighted Average Contractual Interest Rate	2.96%

5. Securitization Trust Debt (Details Narrative) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Securitization Trust Debt
Restricted Cash for securitization trust debt	$ 106,100	$ 175,400
Expected finance receivable payments 2016	669,200
Expected finance receivable payments 2017	506,500
Expected finance receivable payments 2018	315,400
Expected finance receivable payments 2019	172,200
Expected finance receivable payments 2020	64,300
Expected finance receivable payments 2021	$ 4,000

6. Debt (Details - Debt Outstanding) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Fair Value, Option, Qualitative Disclosures Related to Election [Line Items]
Debt outstanding	$ 220,641	$ 85,649
Warehouse lines of credit with Fortress Investment Group [Member]
Fair Value, Option, Qualitative Disclosures Related to Election [Line Items]
Debt outstanding	$ 91,504	23,581
Interest rate	5.50% over one month Libor (Minimum 6.50%)
Maturity date	April 2019
Warehouse lines of credit with Citibank, N.A. [Member]
Fair Value, Option, Qualitative Disclosures Related to Election [Line Items]
Debt outstanding	$ 73,940	33,258
Interest rate	5.50% over one month Libor (Minimum 6.25%)
Maturity date	August 2017
Warehouse lines of credit with Credit Suisse AG and Ares Agent Services, L.P. [Member]
Fair Value, Option, Qualitative Disclosures Related to Election [Line Items]
Debt outstanding	$ 31,017	0
Interest rate	6.75% over one month Libor (Minimum 7.75%)
Maturity date	November 2019
Residual interest financing [Member]
Fair Value, Option, Qualitative Disclosures Related to Election [Line Items]
Debt outstanding	$ 9,042	12,327
Interest rate	11.75% over one month Libor
Maturity date	April 2018
Debt secured by receivables measured at fair value [Member]
Fair Value, Option, Qualitative Disclosures Related to Election [Line Items]
Debt outstanding	$ 0	1,250
Interest rate	n/a
Maturity date	Repayment is based on payments from underlying receivables. Final payment of the 8.00% loan was made in September 2013. Final residual payment was made in January 2015.
Subordinated renewable notes [Member]
Fair Value, Option, Qualitative Disclosures Related to Election [Line Items]
Debt outstanding	$ 15,138	$ 15,233
Interest rate	Weighted average rate of 9.04% and 10.7% at December 31, 2015 and 2014, respectively
Maturity date	Weighted average maturity of October 2017 and October 2016 at December 31, 2015 and 2014, respectively

6. Debt (Details - Maturity Schedule) $ in Thousands	Dec. 31, 2015 USD ($)
2016	$ 12,310
2017	5,681
2018	3,852
2019	276
2020	342
Thereafter	1,719
Total	24,180
Subordinated renewable notes [Member]
2016	9,910
2017	1,781
2018	1,110
2019	276
2020	342
Thereafter	1,719
Total	15,138
Residual interest financing [Member]
2016	2,400
2017	3,900
2018	2,742
2019	0
2020	0
Thereafter	0
Total	$ 9,042

6. Debt (Details Narrative) - USD ($) $ in Thousands	12 Months Ended
6. Debt (Details Narrative) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Credit line balance	$ 196,500	$ 56,800
Warehouse lines of credit with Fortress Investment Group [Member]
Credit line maximum	100,000
Credit line balance	$ 91,500
Credit line maturity date	Apr. 30, 2017
Warehouse lines of credit with Citibank, N.A. [Member]
Credit line maximum	$ 100,000
Credit line balance	$ 73,900
Credit line maturity date	Aug. 31, 2017
Warehouse lines of credit with Credit Suisse AG and Ares Agent Services, L.P. [Member]
Credit line maximum	$ 100,000
Credit line balance	$ 31,000
Credit line maturity date	Nov. 30, 2019

- Definition

The carrying value as of the balance sheet date of the current and noncurrent portions of long-term obligations drawn from a line of credit, which is a bank's commitment to make loans up to a specific amount. Examples of items that might be included in the application of this element may consist of letters of credit, standby letters of credit, and revolving credit arrangements, under which borrowings can be made up to a maximum amount as of any point in time conditional on satisfaction of specified terms before, as of and after the date of drawdowns on the line. Includes short-term obligations that would normally be classified as current liabilities but for which (a) postbalance sheet date issuance of a long term obligation to refinance the short term obligation on a long term basis, or (b) the enterprise has entered into a financing agreement that clearly permits the enterprise to refinance the short-term obligation on a long term basis and the following conditions are met (1) the agreement does not expire within 1 year and is not cancelable by the lender except for violation of an objectively determinable provision, (2) no violation exists at the BS date, and (3) the lender has entered into the financing agreement is expected to be financially capable of honoring the agreement.

+ References + Details

7. Shareholders' Equity (Details - Assumptions)	12 Months Ended
7. Shareholders' Equity (Details - Assumptions)	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Equity [Abstract]
Expected life (years)	4 years 2 months 16 days	4 years 2 months 19 days	5 years 4 months 28 days
Risk-free interest rate	1.35%	1.43%	0.73%
Volatility	51.00%	55.00%	80.00%
Expected dividend yield	0.00%	0.00%	0.00%

7. Shareholders' Equity (Details - Option activity)	12 Months Ended
7. Shareholders' Equity (Details - Option activity)	Dec. 31, 2015 $ / shares shares
Number of Shares
Outstanding options, beginning balance \| shares	10,828,000
Granted \| shares	1,965,000
Exercised \| shares	(1,233,000)
Forfeited/Expired \| shares	(332,000)
Outstanding options, ending balance \| shares	11,228,000
Options exercisable \| shares	6,132,000
Weighted Average Exercise Price
Outstanding options, beginning balance \| $ / shares	$ 4.05
Granted \| $ / shares	6.11
Exercised \| $ / shares	1.39
Forfeited/Expired \| $ / shares	5.43
Outstanding options, ending balance \| $ / shares	4.66
Options exercisable \| $ / shares	$ 3.49
custom:WeightedAverageRemainingContractualTermAbstract
Outstanding options, ending balance	5 years 6 months 18 days
Options exercisable	4 years 10 months 13 days

7. Shareholders' Equity (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Equity [Abstract]
Repurchase of common stock, value	$ 5,900
Repurchase of common stock, shares	1,063,869
Weighted average exercise price of stock options granted	$ 2.41	$ 2.73	$ 4.79
Voliatility assumptions, minimum	47.00%	52.00%	50.00%
Voliatility assumptions, maximum	51.00%	55.00%	85.00%
Stock-based compensation	$ 5,024	$ 3,835	$ 3,864
Unrecognized stock-based compensation costs	$ 13,300
Weighted-average period for unrecognized costs	2 years 7 months 6 days
Intrinsic value options outstanding	$ 16,600	36,700
Intrinsic value of options exercisable	14,500	28,100
Intrinsic value of options exercised	6,400	$ 9,100
Proceeds from options exercised	1,700
Tax benefit from options exercised	$ 634
Shares available for grant	5,500,000
Warrants outstanding	2,000,000
Warrants exercisable	2,500,000
Warrants exercised, value	$ 4,071,429

8. Interest Income and Interest Expense (Details - Interest Income) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Interest Income And Interest Expense
Interest on Finance Receivables	$ 349,796	$ 286,361	$ 231,320
Residual interest income	92	372	0
Other interest income	24	1	10
Interest income	$ 349,912	$ 286,734	$ 231,330

8. Interest Income and Interest Expense (Details - Interest Expense) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Interest Expense [Abstract]
Securitization trust debt	$ 48,631	$ 38,558	$ 34,744
Warehouse lines of credit	6,127	5,217	5,003
Senior secured debt, related party	0	1,651	8,064
Debt secured by receivables at fair value	0	772	3,877
Residual interest financing	1,405	1,989	3,330
Subordinated renewable notes	1,582	2,208	3,161
Total interest expense	$ 57,745	$ 50,395	$ 58,179

9. Income Taxes (Details-Income Tax Expense) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Income Tax Disclosure [Abstract]
Current federal tax expense	$ 18,653	$ 1,348	$ 977
Current state tax expense	1,146	1,316	365
Deferred federal tax expense	4,233	18,338	13,306
Deferred state tax expense (benefit)	2,669	1,724	1,520
Income tax expense	$ 26,701	$ 22,726	$ 16,168

9. Income Taxes (Details-Reconciliation) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Income Tax Disclosure [Abstract]
Expense at federal tax rate	$ 21,484	$ 18,285	$ 13,011
State taxes, net of federal income tax effect	3,235	2,651	2,079
Stock-based compensation	1,560	1,182	911
Non-deductible expenses	107	116	619
Other	315	492	(452)
Income tax expense/(benefit)	$ 26,701	$ 22,726	$ 16,168

9. Income Taxes (Details-Deferred Taxes) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Deferred Tax Assets:
Finance receivables	$ 20,825	$ 19,046
Accrued liabilities	3,091	2,551
Furniture and equipment	0	16
NOL carryforwards	3,272	6,922
Built in losses	10,254	11,698
Pension accrual	1,999	1,090
AMT credit carryforward	166	2,899
Other	1,109	941
Total deferred tax assets	40,716	45,163
Deferred Tax Liabilities:
Deferred loan costs	(2,894)	(2,316)
Furniture and Equipment	(225)	0
Total deferred tax liabilities	(3,119)	(2,316)
Net deferred tax asset	$ 37,597	$ 42,847

9. Income Taxes (Details Narrative) $ in Thousands	12 Months Ended
9. Income Taxes (Details Narrative) $ in Thousands	Dec. 31, 2015 USD ($)
Net deferred tax asset	$ 37,600
Unrecognized tax benefits	0
Operating Income (Loss) [Member]
Net deferred tax asset	13,500
Net Deductions [Member]
Net deferred tax asset	24,100
State [Member]
Net deferred tax asset	7,700
Net operating loss carryforwards	$ 67,300
Net operating losses expire	Dec. 31, 2016
Federal [Member]
Net deferred tax asset	$ 29,900

10. Related Party Transactions (Details Narrative) $ in Thousands	Dec. 31, 2015 USD ($)
Related Party Transactions [Abstract]
Related party amounts outstanding	$ 4,000

11. Commitments and Contingencies (Details) $ in Thousands	Dec. 31, 2015 USD ($)
Commitments and Contingencies Disclosure [Abstract]
2016	$ 4,713
2017	5,896
2018	5,632
2019	5,189
2020	4,224
Thereafter	7,687
Total minimum lease payments	$ 33,341

11. Commitments and Contingencies (Details Narrative) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Commitments and Contingencies Disclosure [Abstract]
Rent expense	$ 4,100	$ 3,500	$ 2,600
Restitution customer payments, cash and credit	3,500
Liability for losses due to legal proceedings, minimum	0
Liability for losses due to legal proceedings, maximum	$ 250,000

12. Employee Benefits (Details - Funded Status) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Change in Projected Benefit Obligation
Projected benefit obligation, beginning of year	$ 22,559	$ 18,841
Service cost	0	0
Interest cost	843	888	$ 823
Assumption changes	(485)	3,570
Actuarial (gain) loss	(14)	211
Settlements	0	0
Benefits paid	(1,518)	(951)
Projected benefit obligation, end of year	21,385	22,559	18,841
Change in Plan Assets
Fair value of plan assets, beginning of year	19,848	21,664
Return on assets	(1,818)	(1,009)
Employer contribution	0	237
Expenses	(138)	(93)
Settlements	0	0
Benefits paid under change in plan assets	(1,518)	(951)
Fair value of plan assets, end of year	16,374	19,848	$ 21,664
Funded Status at end of year	$ (5,011)	$ (2,711)

12. Employee Benefits (Details - Assumptions)	12 Months Ended
12. Employee Benefits (Details - Assumptions)	Dec. 31, 2015	Dec. 31, 2014
Weighted average assumptions used to determine benefit obligations
Discount rate	4.20%	3.80%
Weighted average assumptions used to determine net periodic benefit cost
Discount rate	3.80%	4.75%
Expected return on plan assets	7.75%	8.00%

12. Employee Benefits (Details - Accumulated Pension Benefit Obligation) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Amounts recognized on Consolidated Balance Sheet
Other assets	$ 0	$ 0	$ 2,823
Other liabilities	(5,011)	(2,711)	0
Net amount recognized	(5,011)	(2,711)	2,823
Amounts recognized in accumulated other comprehensive income consists of:
Net loss	10,592	7,977	1,367
Unrecognized transition asset	0	0	0
Net amount recognized	10,592	7,977	1,367
Components of net periodic benefit cost
Interest Cost	843	888	823
Expected return on assets	(1,508)	(1,727)	(1,335)
Amortization of transition asset	0	0	0
Amortization of net loss	349	0	484
Net periodic benefit cost	(316)	(839)	(28)
Settlement (gain)/loss	0	0	0
Total	(316)	(839)	(28)
Benefit Obligation Recognized in Other Comprehensive Income
Net loss (gain)	2,615	6,610	(7,586)
Prior service cost (credit)	0	0	0
Amortization of prior service cost	0	0	0
Net amount recognized in other comprehensive loss (income)	$ 2,615	$ 6,610	$ (7,586)

12. Employee Benefits (Details - Asset Allocation)	12 Months Ended
12. Employee Benefits (Details - Asset Allocation)	Dec. 31, 2015	Dec. 31, 2014
Weighted Average Asset Allocation at Year-End	100.00%	100.00%
Cash And Cash Equivalents [Member]
Weighted Average Asset Allocation at Year-End	0.00%	1.00%
Equity Securities [Member]
Weighted Average Asset Allocation at Year-End	84.00%	84.00%
Debt Securities [Member]
Weighted Average Asset Allocation at Year-End	16.00%	15.00%

12. Employee Benefits (Details - Estimated Future Benefit Payments) $ in Thousands	Dec. 31, 2015 USD ($)
Estimated Future Benefit Payments (In thousands)
2016	$ 766
2017	804
2018	840
2019	884
2020	930
Years 2021-2025	5,289
Anticipated Contributions in 2016	$ 0

12. Employee Benefits (Details - Fair Value of Plan Assets) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Fair value of plan assets	$ 16,374	$ 19,848	$ 21,664
Company Common Stock [Member]
Fair value of plan assets	4,643	6,542
Large Cap Value [Member]
Fair value of plan assets	2,061	2,378
Mid Cap Index [Member]
Fair value of plan assets	578	682
Small Cap Growth [Member]
Fair value of plan assets	552	691
Small Cap Value [Member]
Fair value of plan assets	573	673
Focus Value [Member]
Fair value of plan assets	571	700
Growth [Member]
Fair value of plan assets	2,215	2,383
International Growth [Member]
Fair value of plan assets	2,475	2,649
Core Bond [Member]
Fair value of plan assets	1,833	1,969
High Yield [Member]
Fair value of plan assets	354	382
Inflation Protected Bond [Member]
Fair value of plan assets	482	518
Money Market [Member]
Fair value of plan assets	37	281
Level 1 [Member]
Fair value of plan assets	4,643	6,542
Level 1 [Member] \| Company Common Stock [Member]
Fair value of plan assets	4,643	6,542
Level 1 [Member] \| Large Cap Value [Member]
Fair value of plan assets	0	0
Level 1 [Member] \| Mid Cap Index [Member]
Fair value of plan assets	0	0
Level 1 [Member] \| Small Cap Growth [Member]
Fair value of plan assets	0	0
Level 1 [Member] \| Small Cap Value [Member]
Fair value of plan assets	0	0
Level 1 [Member] \| Focus Value [Member]
Fair value of plan assets	0	0
Level 1 [Member] \| Growth [Member]
Fair value of plan assets	0	0
Level 1 [Member] \| International Growth [Member]
Fair value of plan assets	0	0
Level 1 [Member] \| Core Bond [Member]
Fair value of plan assets	0	0
Level 1 [Member] \| High Yield [Member]
Fair value of plan assets	0	0
Level 1 [Member] \| Inflation Protected Bond [Member]
Fair value of plan assets	0	0
Level 1 [Member] \| Money Market [Member]
Fair value of plan assets	0	0
Level 2 [Member]
Fair value of plan assets	11,731	13,306
Level 2 [Member] \| Company Common Stock [Member]
Fair value of plan assets	0	0
Level 2 [Member] \| Large Cap Value [Member]
Fair value of plan assets	2,061	2,378
Level 2 [Member] \| Mid Cap Index [Member]
Fair value of plan assets	578	682
Level 2 [Member] \| Small Cap Growth [Member]
Fair value of plan assets	552	691
Level 2 [Member] \| Small Cap Value [Member]
Fair value of plan assets	573	673
Level 2 [Member] \| Focus Value [Member]
Fair value of plan assets	571	700
Level 2 [Member] \| Growth [Member]
Fair value of plan assets	2,215	2,383
Level 2 [Member] \| International Growth [Member]
Fair value of plan assets	2,475	2,649
Level 2 [Member] \| Core Bond [Member]
Fair value of plan assets	1,833	1,969
Level 2 [Member] \| High Yield [Member]
Fair value of plan assets	354	382
Level 2 [Member] \| Inflation Protected Bond [Member]
Fair value of plan assets	482	518
Level 2 [Member] \| Money Market [Member]
Fair value of plan assets	37	281
Level 3 [Member]
Fair value of plan assets	0	0
Level 3 [Member] \| Company Common Stock [Member]
Fair value of plan assets	0	0
Level 3 [Member] \| Large Cap Value [Member]
Fair value of plan assets	0	0
Level 3 [Member] \| Mid Cap Index [Member]
Fair value of plan assets	0	0
Level 3 [Member] \| Small Cap Growth [Member]
Fair value of plan assets	0	0
Level 3 [Member] \| Small Cap Value [Member]
Fair value of plan assets	0	0
Level 3 [Member] \| Focus Value [Member]
Fair value of plan assets	0	0
Level 3 [Member] \| Growth [Member]
Fair value of plan assets	0	0
Level 3 [Member] \| International Growth [Member]
Fair value of plan assets	0	0
Level 3 [Member] \| Core Bond [Member]
Fair value of plan assets	0	0
Level 3 [Member] \| High Yield [Member]
Fair value of plan assets	0	0
Level 3 [Member] \| Inflation Protected Bond [Member]
Fair value of plan assets	0	0
Level 3 [Member] \| Money Market [Member]
Fair value of plan assets	$ 0	$ 0

12. Employee Benefits (Details Narrative) - USD ($)	12 Months Ended
12. Employee Benefits (Details Narrative) - USD ($)	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Employee Benefits Details Narrative
401(k) plan contributions	$ 838,000	$ 642,000	$ 471,000
Expected long term rate of return	7.75%	8.00%
Estimated net loss amortized into net periodic benefit cost	$ 553,000

13. Fair Value Measurements (Details - Fair value) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Debt Secured by Finance Receivables Measured at Fair Value:
Balance at beginning of period	$ 1,250
Balance at end of period	0	$ 1,250
Fair Value, Measurements, Recurring [Member]
Finance Receivables Measured at Fair Value:
Balance at beginning of period	1,664	14,476
Payments on finance receivables at fair value	(1,603)	(12,276)
Charge-offs on finance receivables at fair value	0	(846)
Discount accretion	0	283
Mark to fair value	0	27
Balance at end of period	61	1,664
Debt Secured by Finance Receivables Measured at Fair Value:
Balance at beginning of period	1,250	13,117
Principal payments on debt at fair value	(1,250)	(12,456)
Premium accretion	0	712
Mark to fair value	0	(123)
Balance at end of period	0	1,250
Reduction for principal payments collected and payable	0	0
Adjusted balance at end of period	$ 0	$ 1,250

13. Fair Value Measurements (Details - Fireside Fair Value) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Contractual Balance [Member]
Fair values of the Fireside receivables and the related secured debt to their contractual balances
Fireside receivables portfolio	$ 61	$ 1,664
Debt secured by Fireside receivables portfolio	0	0
Fair Value [Member]
Fair values of the Fireside receivables and the related secured debt to their contractual balances
Fireside receivables portfolio	61	1,664
Debt secured by Fireside receivables portfolio	$ 0	$ 1,250

13. Fair Value Measurements (Details - Level 3 fair value measurements) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Debt secured by receivables measured at fair value	$ 0	$ 1,250
Finance receivables [Member]
Finance receivables measured at fair value	$ 61	$ 1,664
Valuation Techniques and Unobservable Inputs	Discounted cash flows; Discount rate 15.4%, Cumulative net losses 5.0%, Monthly average prepayments 0.5%	Discounted cash flows; Discount rate 15.4%, Cumulative net losses, 5.0%, Monthly average prepayments 0.5%
Debt secured by receivables measured at fair value [Member]
Debt secured by receivables measured at fair value	$ 0	$ 1,250
Valuation Techniques and Unobservable Inputs	0, n/a	Discounted cash flows, Discount rate 12.2%

13. Fair Value Measurements (Details - Fair Value Financial Assets) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Assets:
Cash and cash equivalents	$ 19,322	$ 17,859	$ 22,112	$ 12,966
Restricted cash and equivalents	106,054	175,382
Finance receivables, net	1,909,490	1,534,496
Finance receivables measured at fair value	61	1,664
Accrued interest receivable	31,547	23,372
Liabilities:
Warehouse lines of credit	196,461	56,839
Accrued interest payable	3,260	2,613
Residual interest financing	9,042	12,327
Debt secured by receivables measured at fair value	0	1,250
Securitization trust debt	1,731,598	1,598,496
Subordinated renewable notes	15,138	15,233
Level 1 [Member]
Assets:
Cash and cash equivalents	19,322	17,859
Restricted cash and equivalents	106,054	175,382
Finance receivables, net	0	0
Finance receivables measured at fair value	0	0
Accrued interest receivable	0	0
Liabilities:
Warehouse lines of credit	0	0
Accrued interest payable	0	0
Residual interest financing	0	0
Debt secured by receivables measured at fair value	0	0
Securitization trust debt	0	0
Subordinated renewable notes	0	0
Level 2 [Member]
Assets:
Cash and cash equivalents	0	0
Restricted cash and equivalents	0	0
Finance receivables, net	0	0
Finance receivables measured at fair value	0	0
Accrued interest receivable	0	0
Liabilities:
Warehouse lines of credit	0	0
Accrued interest payable	0	0
Residual interest financing	0	0
Debt secured by receivables measured at fair value	0	0
Securitization trust debt	0	0
Subordinated renewable notes	0	0
Level 3 [Member]
Assets:
Cash and cash equivalents	0	0
Restricted cash and equivalents	0	0
Finance receivables, net	1,879,510	1,512,567
Finance receivables measured at fair value	61	1,664
Accrued interest receivable	31,547	23,372
Liabilities:
Warehouse lines of credit	196,461	56,839
Accrued interest payable	3,260	2,613
Residual interest financing	9,042	12,327
Debt secured by receivables measured at fair value	0	1,250
Securitization trust debt	1,718,418	1,619,742
Subordinated renewable notes	15,138	15,233
Total Amount [Member]
Assets:
Cash and cash equivalents	19,322	17,859
Restricted cash and equivalents	106,054	175,382
Finance receivables, net	1,879,510	1,512,567
Finance receivables measured at fair value	61	1,664
Accrued interest receivable	31,547	23,372
Liabilities:
Warehouse lines of credit	196,461	56,839
Accrued interest payable	3,260	2,613
Residual interest financing	9,042	12,327
Debt secured by receivables measured at fair value	0	1,250
Securitization trust debt	1,718,418	1,619,742
Subordinated renewable notes	$ 15,138	$ 15,233

13. Fair Value Measurements (Details Narrative) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Fair Value Measurements Details Narrative
Finance receivables related to reposessed vehicles in inventory	$ 39,728	$ 28,234
Valuation adjustment, loss allowance	$ 26,954	17,829
Recovery rate	32.00%
Estimated fair value and carrying amount of repossed inventory	$ 12,774	$ 10,405

14. Quarterly Financial Data (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended												12 Months Ended
	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Quarterly Financial Information Disclosure [Abstract]
Revenues	$ 95,308	$ 93,991	$ 88,361	$ 85,989	$ 83,467	$ 77,050	$ 71,594	$ 68,146	$ 66,634	$ 64,066	$ 70,482	$ 54,594	$ 363,650	$ 300,256	$ 255,775
Income before income tax expense	15,783	15,649	15,200	14,749	14,346	13,804	12,329	11,764	11,540	10,559	8,546	6,528	61,382	52,242	37,173
Net income	$ 8,967	$ 8,843	$ 8,537	$ 8,333	$ 8,010	$ 7,776	$ 7,026	$ 6,705	$ 6,522	$ 5,873	$ 4,825	$ 3,785	$ 34,681	$ 29,516	$ 21,005
Earnings per share - basic	$ .35	$ .34	$ .33	$ .33	$ 0.31	$ 0.31	$ 0.28	$ 0.28	$ 0.28	$ 0.27	$ 0.23	$ 0.19	$ 1.34	$ 1.18	$ 0.98
Earnings per share - diluted	$ .29	$ .28	$ .27	$ .26	$ 0.25	$ 0.24	$ 0.22	$ 0.21	$ 0.21	$ 0.19	$ 0.15	$ 0.12	$ 1.10	$ 0.92	$ 0.67

- Definition

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

+ References + Details

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References + Details

15. Subsequent Events (Details Narrative) - Subsequent Event [Member] - Asset-backed Securities [Member] - USD ($) $ in Thousands	1 Months Ended
	Feb. 05, 2016	Jan. 27, 2016
Asset-backed notes sold		$ 329,500
Asset-backed notes secured by automobile receivables		$ 340,000
Weighted average yield on notes		4.34%
Receivables sold	$ 84,100	$ 255,900

3. Finance Receivables (Details Narrative) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Finance Receivables Details - Repossessed Inventory
Finance receivables	$ 43,500	$ 23,200