Document and Entity Information - USD ($) $ in Thousands	12 Months Ended
Document and Entity Information - USD ($) $ in Thousands	Dec. 31, 2018	Mar. 07, 2019	Jun. 30, 2018
Document And Entity Information
Entity Registrant Name	CONSUMER PORTFOLIO SERVICES INC
Entity Central Index Key	0000889609
Document Type	10-K
Trading Symbol	CPSS
Document Period End Date	Dec. 31, 2018
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity a Well-known Seasoned Issuer	No
Entity a Voluntary Filer	No
Entity's Reporting Status Current	Yes
Entity Filer Category	Accelerated Filer
Entity Emerging Growth Company	false
Entity Small Business	true
Entity Shell Company	false
Entity Public Float			$ 60,758,857
Entity Common Stock, Shares Outstanding		22,148,586
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2018

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
ASSETS
Cash and cash equivalents	$ 12,787	$ 12,731
Restricted cash and equivalents	117,323	111,965
Finance receivables	1,522,085	2,304,984
Less: Allowance for finance credit losses	(67,376)	(109,187)
Finance receivables, net	1,454,709	2,195,797
Finance receivables measured at fair value	821,066	0
Furniture and equipment, net	1,837	1,752
Deferred tax assets, net	19,188	32,446
Accrued interest receivable	31,969	46,753
Other assets	26,801	23,397
Total	2,485,680	2,424,841
Liabilities
Accounts payable and accrued expenses	31,692	28,715
Warehouse lines of credit	136,847	112,408
Residual interest financing	39,106	0
Securitization trust debt	2,063,627	2,083,215
Subordinated renewable notes	17,290	16,566
Total	2,288,562	2,240,904
COMMITMENTS AND CONTINGENCIES
Shareholders' Equity
Common stock, no par value; authorized 75,000,000 shares; 22,421,688 and 21,488,589 shares issued and outstanding at December 31, 2018 and December 31, 2017, respectively	70,273	71,582
Retained earnings	134,399	119,537
Accumulated other comprehensive loss	(7,554)	(7,182)
Total stockholders' equity	197,118	183,937
Total liabilities and stockholders' equity	2,485,680	2,424,841
Series A Preferred Stock [Member]
Shareholders' Equity
Preferred stock	0	0
Series B Preferred Stock [Member]
Shareholders' Equity
Preferred stock	$ 0	$ 0

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Dec. 31, 2018	Dec. 31, 2017
Shareholders' Equity
Preferred stock, par value (in dollars per share)	$ 1	$ 1
Preferred stock, authorized	4,998,130	4,998,130
Preferred stock, issued	0	0
Preferred stock, outstanding	0	0
Common stock, no par value (in dollars per share)	$ 0	$ 0
Common stock, authorized	75,000,000	75,000,000
Common stock, issued	22,421,688	21,488,589
Common stock, outstanding	22,421,688	21,488,589
Series A Preferred Stock [Member]
Shareholders' Equity
Preferred stock, par value (in dollars per share)	$ 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 (in dollars per share)	$ 1	$ 1
Preferred stock, authorized	1,870	1,870
Preferred stock, issued	0	0
Preferred stock, outstanding	0	0

CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Revenues:
Interest income	$ 380,297	$ 424,174	$ 408,996
Other income	9,478	10,209	13,286
Total revenues	389,775	434,383	422,282
Expenses:
Employee costs	79,318	72,967	65,549
General and administrative	31,037	26,578	24,840
Interest	101,466	92,345	79,941
Provision for credit losses	133,080	186,713	178,511
Marketing	17,572	15,613	17,818
Occupancy	7,607	7,162	5,185
Depreciation and amortization	992	934	777
Total operating expenses	371,072	402,312	372,621
Income before income tax expense	18,703	32,071	49,661
Income tax expense	3,841	28,306	20,361
Net income	$ 14,862	$ 3,765	$ 29,300
Earnings per share:
Basic (in dollars per share)	$ 0.68	$ 0.17	$ 1.20
Diluted (in dollars per share)	$ 0.59	$ 0.14	$ 1.01
Number of shares used in computing earnings per share:
Basic (in shares)	21,989	22,687	24,356
Diluted (in shares)	24,988	27,214	29,035

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Statement of Comprehensive Income [Abstract]
Net income	$ 14,862	$ 3,765	$ 29,300
Other comprehensive income (loss); change in funded status of pension plan, net of $173, $232 and $7 in tax for 2018, 2017 and 2016, respectively	(372)	(500)	(32)
Comprehensive income	$ 14,490	$ 3,265	$ 29,268

- 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	Retained Earnings	Accumulated Other Comprehensive Loss	Total
Balance at beginning at Dec. 31, 2015	$ 81,337	$ 86,472	$ (6,650)	$ 161,159
Balance at beginning (in shares) at Dec. 31, 2015	25,617
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Common stock issued upon exercise of options and warrants	$ 706			706
Common stock issued upon exercise of options and warrants (in shares)	448
Repurchase of common stock	$ (10,468)			(10,468)
Repurchase of common stock (in shares)	(2,478)
Pension benefit obligation			(32)	(32)
Stock-based compensation	5,553			5,553
Net income		29,300		29,300
Balance at end at Dec. 31, 2016	$ 77,128	115,772	(6,682)	186,218
Balance at end (in shares) at Dec. 31, 2016	23,587
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Common stock issued upon exercise of options and warrants	$ 1,085			1,085
Common stock issued upon exercise of options and warrants (in shares)	647
Repurchase of common stock	$ (12,346)			(12,346)
Repurchase of common stock (in shares)	(2,745)
Pension benefit obligation			(500)	(500)
Stock-based compensation	5,715			5,715
Net income		3,765		3,765
Balance at end at Dec. 31, 2017	$ 71,582	119,537	(7,182)	183,937
Balance at end (in shares) at Dec. 31, 2017	21,489
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Common stock issued upon exercise of options and warrants	$ 483			483
Common stock issued upon exercise of options and warrants (in shares)	2,315
Repurchase of common stock	$ (5,307)			(5,307)
Repurchase of common stock (in shares)	(1,382)
Pension benefit obligation			(372)	(372)
Stock-based compensation	3,515			3,515
Net income		14,862		14,862
Balance at end at Dec. 31, 2018	$ 70,273	$ 134,399	$ (7,554)	$ 197,118
Balance at end (in shares) at Dec. 31, 2018	22,422

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Cash flows from operating activities:
Net income	$ 14,862	$ 3,765	$ 29,300
Adjustments to reconcile net income to net cash provided by operating activities:
Accretion of deferred acquisition fees	2,655	1,305	(2,980)
Net interest income accretion on fair value receivables	26,162	0	20
Depreciation and amortization	992	934	777
Amortization of deferred financing costs	8,453	8,738	8,389
Provision for credit losses	133,080	186,713	178,511
Stock-based compensation expense	3,515	5,715	5,553
Changes in assets and liabilities:
Accrued interest receivable	14,784	(10,520)	(4,686)
Other assets	(4,161)	5,361	(8,739)
Deferred tax assets, net	13,258	10,399	(5,248)
Accounts payable and accrued expenses	2,605	3,238	(4,564)
Net cash provided by operating activities	216,205	215,648	196,333
Cash flows from investing activities:
Originations of finance receivables held for investment	0	(859,069)	(1,088,785)
Payments received on finance receivables held for investment	605,353	647,619	650,379
Purchases of finance receivables measured at fair value	(914,949)	0	0
Payments on receivables portfolio at fair value	67,721	4	58
Change in repossessions held in inventory	757	1,490	1,629
Purchase of furniture and equipment	(1,077)	(669)	(1,079)
Net cash used in investing activities	(242,195)	(210,625)	(437,798)
Cash flows from financing activities:
Proceeds from issuance of securitization trust debt	855,828	852,615	1,197,515
Proceeds from issuance of subordinated renewable notes	3,175	4,083	2,911
Payments on subordinated renewable notes	(2,451)	(2,466)	(3,100)
Net proceeds from (repayments of) warehouse lines of credit	23,809	9,309	(91,496)
Repayments of residual interest financing debt	0	0	(9,042)
Net advances of residual interest financing debt	40,000	0	0
Repayment of securitization trust debt	(876,094)	(851,193)	(834,880)
Payment of financing costs	(8,039)	(8,104)	(9,367)
Repurchase of common stock	(5,307)	(12,346)	(10,468)
Exercise of options and warrants	483	1,085	706
Net cash provided by (used in) financing activities	31,404	(7,017)	242,779
Increase (decrease) in cash and cash equivalents	5,414	(1,994)	1,314
Cash and cash equivalents at beginning of year	124,696	126,690	125,376
Cash and cash equivalents at end of year	130,110	124,696	126,690
Cash paid during the period for:
Interest	92,405	83,110	71,077
Income taxes	$ 417	$ 9,319	$ 32,909

1. Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2018

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

(1) 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 Ohio, California, North Carolina, Florida and Indiana represented 8.8%, 8.7%, 6.2%, 6.0% and 5.2%, respectively, of contracts purchased during 2018 compared with 7.4%, 7.1%, 5.8%, 5.9% and 3.8% respectively in 2017. No other state had a concentration in excess of 5.2% in 2018. 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, 2018, our unrestricted cash balance was $12.8 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.

Finance Receivables Measured at Fair Value

Effective January 1, 2018, we adopted the fair value method of accounting for finance receivables acquired on or after that date. For each finance receivable acquired after 2017, we consider the price paid on the purchase date as the fair value for such receivable. We estimate the cash to be received in the future with respect to such receivables, based on our experience with similar receivables acquired in the past. We then compute the internal rate of return that results in the present value of those estimated cash receipts being equal to the purchase date fair value. Thereafter, we recognize interest income on such receivables on a level yield basis using that internal rate of return as the applicable interest rate. Cash received with respect to such receivables is applied first against such interest income, and then to reduce the carrying value of the receivables.

We re-evaluate the fair value of such receivables at the close of each measurement period. If the reevaluation were to yield a value materially different from the carrying value, an adjustment would be required.

Anticipated credit losses are included in our estimation of cash to be received with respect to receivables. Because such credit losses are included in our computation of the appropriate level yield, we do not thereafter make periodic provision for credit losses, as our best estimate of the lifetime aggregate of credit losses is included in that initial computation. Also because we include anticipated credit losses in our computation of the level yield, the computed level yield is materially lower than the average contractual rate applicable to the receivables. Because our initial carrying value is fixed as the price we pay for the receivable, rather than as the contractual principal balance, we do not record acquisition fees as an amortizing asset related to the receivables, nor do we capitalize costs of acquiring the receivables. Rather we recognize the costs of acquisition as expenses in the period incurred.

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.

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. However, for receivables measured at fair value, we do not record acquisition fees as an amortizing asset related to the receivables, nor do we capitalize costs of acquiring the receivables. Rather we recognize the costs of acquisition as expenses in the period incurred.

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 $8.9 million and $9.7 million at December 31, 2018 and 2017, 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 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,
	2018		2017		2016
	(In thousands)
Direct mail revenues	$	5,829	$	6,432	$	9,202
Convenience fee revenue		1,700		1,900		2,145
Recoveries on previously charged-off contracts		248		563		766
Sales tax refunds		887		866		811
Other		814		448		362
	$	9,478	$	10,209	$	13,286

Earnings Per Share

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

	Year Ended December 31,
	2018		2017		2016
	(In thousands, except per share data)
Numerator:
Numerator for basic and diluted earnings per share	$	14,862	$	3,765	$	29,300
Denominator:
Denominator for basic earnings per share - weighted average number of common shares outstanding during the year		21,989		22,687		24,356
Incremental common shares attributable to exercise of outstanding options and warrants		2,999		4,527		4,679
Denominator for diluted earnings per share		24,988		27,214		29,035
Basic earnings per share	$	0.68	$	0.17	$	1.20
Diluted earnings per share	$	0.59	$	0.14	$	1.01

Incremental shares of 10.3 million, 7.5 million and 7.9 million related to stock options and warrants have been excluded from the diluted earnings per share calculation for the years ended December 31, 2018, 2017 and 2016, 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. Unamortized debt issuance costs are presented as a direct deduction to the carrying amount of the related debt on our Consolidated Balance Sheets.

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 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. These 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, 2018 we were in compliance with all such financial covenants.

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.

We have recorded a liability as of December 31, 2018, which represents our best estimate of the immaterial aggregate probable incurred losses for legal contingencies. The amount of losses that may ultimately be incurred, over and above such losses as are probable, cannot be estimated with certainty.

Recently Issued Accounting Standards

In January 1, 2018, the Company adopted Accounting Standards Codification (“ASC”) Topic 606, “Revenue from Contracts with Customers”. The majority of the Company’s revenues come from interest income which is outside the scope of ASC 606. The Company’s services that fall within the scope of ASC 606 are presented within Other Income and are recognized as revenue as the Company satisfies its obligation to the customer. Services within the scope of ASC 606 include revenue associated with direct mail and other related products and services that we offer to our dealers.

In June 2016, the FASB issued Accounting Standards Update ("ASU") 2016-13 - Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The revised accounting guidance changes the criteria under which credit losses are measured. The amendment introduces a new credit reserving model known as the Current Expected Credit Loss (CECL) model, which replaces the incurred loss impairment methodology in current U.S. GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to establish credit loss estimates. This new accounting guidance will be effective for interim and annual reporting periods beginning after December 15, 2019. The Company is currently evaluating the provisions of ASU No. 2016-13, however, it is expected that the new CECL model will alter the assumptions used in calculating the Company's credit losses, given the change to estimated losses for the estimated life of the financial asset, and will likely result in a material effect on the Company’s financial position and results of operations.

In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) (“ASU 2016-02”), which modifies lease accounting for lessees to increase transparency and comparability by recording lease assets and liabilities for operating leases and disclosing key information about leasing arrangements. We will adopt ASU 2016-02 effective January 1, 2019 utilizing the modified retrospective transition method. The Company anticipates recording lease assets and liabilities of approximately $24.2 million on its Consolidated Balance Sheets, with no material impact to its Consolidated Statements of Operations.

2. Restricted Cash

12 Months Ended

Dec. 31, 2018

Cash and Cash Equivalents [Abstract]

Restricted Cash

(2) 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 $117.3 million and $112.0 million as of December 31, 2018 and 2017, 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 $48.5 million and $45.7 million as of December 31, 2018 and 2017, respectively.

3. Finance Receivables

12 Months Ended

Dec. 31, 2018

Finance Receivables

Finance Receivables

(3) 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.

In January 2018 the Company adopted the fair value method of accounting for finance receivables acquired after 2017. Finance receivables measured at fair value are recorded separately on the Company’s Balance Sheet and are excluded from all tables in this footnote.

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

	December 31,
	2018		2017
Finance receivables	(In thousands)
Automobile finance receivables, net of unearned interest	$	1,518,395	$	2,298,608
Unearned acquisition fees, discounts and deferred origination costs, net		3,690		6,376
Finance receivable	$	1,522,085	$	2,304,984

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, 2018 and 2017:

	December 31,
	2018		2017
	(In thousands)
Delinquency Status
Current	$	1,262,730	$	2,069,617
31 - 60 days		157,688		138,395
61 - 90 days.		66,134		63,081
91 + days		31,843		27,515
	$	1,518,395	$	2,298,608

Finance receivables totaling $31.8 million and $27.5 million at December 31, 2018 and 2017, respectively, have been placed on non-accrual status as a result of their delinquency status.

We use a loss allowance methodology commonly referred to as "static pooling," which stratifies our finance receivable portfolio into separately identified pools based on the period of origination. 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 automobile contracts. The estimate for probable incurred credit losses is reduced by our estimate for future recoveries on previously incurred losses. Provision for credit losses is charged to our consolidated statement of income. Net losses incurred on finance receivables are charged to the allowance. We establish the allowance for new receivables over the 12-month period following their acquisition.

The following table presents a summary of the activity for the allowance for finance credit losses, for the years ended December 31, 2018, 2017 and 2016:

	December 31,
	2018			2017			2016
				(In thousands)
Balance at beginning of year	$	109,187		$	95,578		$	75,603
Provision for credit losses		133,080			186,713			178,511
Charge-offs		(220,523	)		(211,948	)		(192,366	)
Recoveries		45,632			38,844			33,830
Balance at end of year	$	67,376		$	109,187		$	95,578

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,
	2018			2017
	(In thousands)
Gross balance of repossessions in inventory	$	33,462		$	33,679
Allowance for losses on repossessed inventory		(24,564	)		(24,024	)
Net repossessed inventory included in other assets	$	8,898		$	9,655

- Definition

Disclosure of accounting policy for those finance, loan and lease receivables classified as held for investment. This disclosure may include (1) the basis at which such receivables are carried in the entity's statements of financial position (2) how the level of the allowance for loan and lease losses is determined (3) when impairments, charge-offs or recoveries are recognized for such receivables (4) the treatment of commitment and other fees and loan origination costs (including, if applicable, how the entity accounts for fees and costs associated with credit cards that are either purchased or originated) (5) the treatment of any premiums or discounts or unearned income (6) the entity's income recognition policies for such receivables, including those that are impaired, past due or placed on nonaccrual status (for impaired loans, the policy for recognizing interest income on such loans, including how cash receipts are recorded) and (7) the treatment of foreclosures or repossessions.

+ References + Details

5. Securitization Trust Debt

12 Months Ended

Dec. 31, 2018

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:

Series		Final Scheduled Payment Date (1)	Receivables Pledged at December 31, 2018 (2)		Initial Principal		Outstanding Principal at December 31, 2018		Outstanding Principal at December 31, 2017		Weighted Average Contractual Interest Rate at December 31, 2018
		(Dollars in thousands)
	CPS 2013-B	September 2020		–		205,000		–		18,407		–
	CPS 2013-C	December 2020		–		205,000		–		25,559		–
	CPS 2013-D	March 2021		–		183,000		–		24,917		–
	CPS 2014-A	June 2021		17,442		180,000		15,328		30,521		5.36	%
	CPS 2014-B	September 2021		26,092		202,500		24,051		44,516		4.42	%
	CPS 2014-C	December 2021		42,912		273,000		40,896		71,174		4.52	%
	CPS 2014-D	March 2022		48,279		267,500		46,489		79,099		4.95	%
	CPS 2015-A	June 2022		54,983		245,000		52,448		87,194		4.49	%
	CPS 2015-B	September 2022		65,736		250,000		64,591		102,873		4.43	%
	CPS 2015-C	December 2022		92,123		300,000		90,639		141,362		4.89	%
	CPS 2016-A	March 2023		121,404		329,460		119,444		180,761		5.18	%
	CPS 2016-B	June 2023		139,696		332,690		135,688		201,199		5.40	%
	CPS 2016-C	September 2023		139,406		318,500		136,114		203,504		5.12	%
	CPS 2016-D	April 2024		107,009		206,325		104,645		149,671		3.84	%
	CPS 2017-A	April 2024		115,991		206,320		113,527		161,892		4.00	%
	CPS 2017-B	December 2023		140,953		225,170		127,726		186,594		3.43	%
	CPS 2017-C	September 2024		142,106		224,825		131,845		197,155		3.35	%
	CPS 2017-D	June 2024		142,370		196,300		132,919		189,277		3.11	%
	CPS 2018-A	March 2025		151,620		190,000		142,643		–		3.13	%
	CPS 2018-B	December 2024		175,363		201,823		167,809		–		3.58	%
	CPS 2018-C	September 2025		214,617		230,275		204,418		–		3.65	%
	CPS 2018-D	June 2025		236,410		233,730		224,189		–		3.74	%
			$	2,174,512	$	5,206,418	$	2,075,409	$	2,095,675

_________________________

(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 $780.0 million in 2019, $587.5 million in 2020, $378.8 million in 2021, $194.6 million in 2022, $116.0 million in 2023, and $6.8 million in 2024.

(2)

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

Debt issuance costs of $11.8 million and $12.5 million as of December 31, 2018 and December 31, 2017, respectively, have been excluded from the table above. These debt issuance costs are presented as a direct deduction to the carrying amount of the Securitization trust debt 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, 2018.

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, 2018, restricted cash under the various agreements totaled approximately $117.3 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, 2018

Debt Disclosure [Abstract]

Debt

(6) Debt

The terms of our debt outstanding at December 31, 2018 and 2017 are summarized below:

			December 31,		December 31,
			2018		2017
			(In thousands)
Description	Interest Rate	Maturity

Warehouse lines of credit	5.50% over one month Libor (Minimum 6.50%)	February 2021	$	38,198	$	25,629

	3.00% over one month Libor (Minimum 3.75%)	September 2020		99,885		77,546

	6.75% over a commercial paper rate (Minimum 7.75%)	November 2019		–		11,100

Residual interest financing	8.60%	January 2026		40,000		–

Subordinated renewable notes	Weighted average rate of 8.53% and 7.99% at December 31, 2018 and December 31, 2017, respectively	Weighted average maturity of January 2021 and March 2020 at December 31, 2018 and December 31, 2017, respectively		17,290		16,566

			$	195,373	$	130,841

Debt issuance costs of $1.2 million and $1.9 million as of December 31, 2018 and December 31, 2017, respectively, have been excluded from the table above. These debt issuance costs are presented as a direct deduction to the carrying amount of the Warehouse lines of credit and residual interest financing on our Consolidated Balance Sheets.

On May 11, 2012, we entered into a $100 million one-year 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 87.0% of eligible finance receivables. The loans under the facility accrue interest at one-month LIBOR plus 3.00% per annum, with a minimum rate of 3.75% per annum. In September 2018, this facility was amended to extend the revolving period to September 2020 and to include an amortization period through September 2021 for any receivables pledged to the facility at the end of the revolving period. At December 31, 2018 there was $99.9 million outstanding under this facility.

On April 17, 2015, we entered into an additional $100 million one-year warehouse credit line with 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 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 6.50% per annum. In April 2017, this facility was amended to extend the revolving period to April 2019 followed by an amortization period through April 2021 for any receivables pledged to the facility at the end of the revolving period. At December 31, 2018 there was $38.2 million outstanding under this facility. In February 2019, this facility was amended to extend the revolving period to February 2021 followed by an amortization period through February 2023.

On November 24, 2015, we entered into an additional $100 million one-year warehouse credit line with affiliates of Credit Suisse Group and Ares Management LP. 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 Nine Funding, LLC. The facility provides for effective advances up to 88.0% of eligible finance receivables, or up to 80.0% for certain other receivables. The loans under the facility accrue interest at a commercial paper rate plus 6.75% per annum, with a minimum rate of 7.75% per annum. In November 2017, this facility was amended to extend the revolving period to November 2019 followed by an amortization period through November 2021 for any receivables pledged to the facility at the end of the revolving period. At December 31, 2018 there was no amount outstanding under this facility.

The total outstanding debt on our three warehouse lines of credit was $138.1 million as of December 31, 2018, compared to $114.3 million outstanding as of December 31, 2017.

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.

On May 16, 2018, we completed a $40.0 million securitization of residual interests from previously issued securitizations. In this residual interest financing transaction, qualified institutional buyers purchased $40.0 million of asset-backed notes secured by residual interests in thirteen CPS securitizations consecutively conducted from September 2013 through December 2016, and an 80% interest in a CPS affiliate that owns the residual interests in the four CPS securitizations conducted in 2017. The sold notes (“2018-1 Notes”), issued by CPS Auto Securitization Trust 2018-1, consist of a single class with a coupon of 8.595%.

The agreed valuation of the collateral for the 2018-1 Notes is the sum of the amounts on deposit in the underlying spread accounts for each related securitization and the over-collateralization of each related securitization, which is the difference between the outstanding principal balances of the related receivables less the principal balance of the outstanding notes issued in the related securitization. With respect to the securitizations conducted by CPS in 2017, only 80% of such amounts are included in the collateral. On each monthly payment date, the 2018-1 Notes are entitled to interest at the coupon rate and, if necessary, a principal payment necessary to maintain a specified minimum collateral ratio.

Unamortized debt issuance costs of $894,000 have been excluded from the amount reported above for residual interest financing. These debt issuance costs are presented as a direct deduction to the carrying amount of the debt on our Consolidated Balance Sheets.

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, 2018:

Contractual maturity date	Subordinated renewable notes

2019	$	8,561
2020		2,788
2021		3,607
2022		404
2023		366
Thereafter		1,564
Total	$	17,290

7. Shareholders' Equity

12 Months Ended

Dec. 31, 2018

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.

Stock Purchases

For the year ending December 31, 2018, we purchased 1,382,401 shares of our common stock at an average price of $3.81. In October 2017 our board of directors authorized the repurchase of up to $10 million of our common stock. There is approximately $7.5 million of board authorization remaining under such plans, which have no expiration date. The table below describes the purchase of our common stock for the twelve-month periods ended December 31, 2018 and 2017:

	Twelve Months Ended
	December 31, 2018				December 31, 2017
	Shares		Avg. Price		Shares		Avg. Price
Open market purchases		1,258,797	$	3.77		2,693,562	$	4.48
Shares redeemed upon net exercise of stock options		33,604		4.37		51,931		4.50
Other		90,000		4.13		–		–
Total stock purchases		1,382,401	$	3.81		2,745,493	$	4.49

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, May 2015 and again in July 2018, 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, 17,200,000 and 19,200,000, 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, 2018, 2017 and 2016 was $1.06, $1.32 and $1.38, 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 31% to 34% for 2018, 35% to 37% for 2017, and 44% to 51% for 2016. 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,
	2018			2017			2016
Expected life (years)		3.99			4.02			4.04
Risk-free interest rate		2.74	%		1.59	%		1.09	%
Volatility		34	%		36	%		51	%
Expected dividend yield		–			–			–

For the years ended December 31, 2018, 2017 and 2016, we recorded stock-based compensation costs in the amount of $3.5 million, $5.7 million and $5.6 million, respectively. As of December 31, 2018, the unrecognized stock-based compensation costs to be recognized over future periods was equal to $3.6 million. This amount will be recognized as expense over a weighted-average period of 2.1 years.

At December 31, 2018 and 2017, options outstanding had intrinsic values of $4.9 million and $10.4 million, respectively. At December 31, 2018 and 2017, options exercisable had intrinsic values of $4.9 million and $9.5 million, respectively. The total intrinsic value of options exercised was $869,000 and $1.9 million for the years ended December 31, 2018 and 2017, respectively. New shares were issued for all options exercised during the year ended December 2018 and cash of $483,000 million was received. At December 31, 2018, there were a total of 2,873,000 additional shares available for grant under the 2006 Plan.

Stock option activity for the year ended December 31, 2018 for stock options under the 2006 and 1997 plans is as follows:

						Weighted
	Number of			Weighted		Average
	Shares			Average		Remaining
	(in thousands)			Exercise Price		Contractual Term
Options outstanding at the beginning of period		13,135		$	4.66	N/A
Granted		1,720			3.49	N/A
Exercised		(315	)		1.53	N/A
Forfeited/Expired		(119	)		7.20	N/A
Options outstanding at the end of period		14,421		$	4.57	3.91 years

Options exercisable at the end of period		8,789		$	4.76	3.42 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, 2018, 2017 and 2016.

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, and allocated $4,071,429 of the aggregate consideration received in that transaction to the issuance of the warrants. The warrants represented the right to purchase CPS common shares at a nominal exercise price. In March 2010 we repurchased the warrants for 500,000 of these shares for $1.0 million. Warrants to purchase 2,000,000 shares were exercised on July 10, 2018 and 1,999,995 net shares were issued to the holder, following surrender of five shares in payment of the exercise price.

8. Interest Income and Interest Expense

12 Months Ended

Dec. 31, 2018

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,
	2018		2017		2016
	(In thousands)
Interest on finance receivables	$	334,634	$	423,567	$	408,723
Interest on finance receivables at fair value		43,863		–		–
Other interest income		1,800		607		273
Interest income	$	380,297	$	424,174	$	408,996

The following table presents the components of interest expense:

	Year Ended December 31,
	2018		2017		2016
	(In thousands)
Securitization trust debt	$	89,926	$	83,084	$	69,178
Warehouse lines of credit		7,752		7,933		8,569
Residual interest financing		2,343		–		846
Subordinated renewable notes		1,445		1,328		1,348
Interest expense	$	101,466	$	92,345	$	79,941

9. Income Taxes

12 Months Ended

Dec. 31, 2018

Income Tax Disclosure [Abstract]

Income Taxes

(9) Income Taxes

Income taxes consist of the following:

	Year Ended December 31,
	2018			2017		2016
	(In thousands)
Current federal tax expense	$	(7,526	)	$	14,369	$	22,872
Current state tax expense		(2,064	)		3,305		2,671
Deferred federal tax expense		9,074			10,131		(6,329	)
Deferred state tax expense		4,357			501		1,147
Income tax expense	$	3,841		$	28,306	$	20,361

Income tax expense for the years ended December 31, 2018, 2017 and 2016 differs from the amount determined by applying the statutory federal rate to income before income taxes as follows:

	Year Ended December 31,
	2018			2017			2016
	(In thousands)
Expense at federal tax rate	$	3,928		$	11,225		$	17,381
State taxes, net of federal income tax effect		1,718			1,831			2,679
Stock-based compensation		238			682			824
Non-deductible expenses		824			171			145
Effect of change in tax rate		–			15,117			–
Accounting method change		(2,100	)		–			–
Other		(767	)		(720	)		(668	)
	$	3,841		$	28,306		$	20,361

For the year ended December 31, 2018, we recorded income tax expense of $3.8 million which include a $2.1 million net tax benefit related to certain tax planning strategies and other adjustments. Without the benefit, income tax expense for 2018 would have been $5.9 million.

The tax effected cumulative temporary differences that give rise to deferred tax assets and liabilities as of December 31, 2018 and 2017 are as follows:

	December 31,
	2018			2017
	(In thousands)
Deferred Tax Assets:
Finance receivables	$	1,867		$	23,034
Accrued liabilities		256			206
NOL carryforwards		7,736			529
Built in losses		4,651			5,277
Pension accrual		1,552			1,654
Stock compensation		4,161			3,642
Other		356			582
Total deferred tax assets		20,579			34,924

Deferred Tax Liabilities:
Deferred loan costs		(1,137	)		(2,233	)
Furniture and equipment		(254	)		(245	)
Total deferred tax liabilities		(1,391	)		(2,478	)

Net deferred tax asset	$	19,188		$	32,446

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 $19.2 million as of December 31, 2018 is more likely than not based on forecasted future net earnings. Our net deferred tax asset of $19.2 million consists of approximately $13.9 million of net U.S. federal deferred tax assets and $5.3 million of net state deferred tax assets. The major components of the deferred tax asset are $12.4 million in net operating loss carryforwards and built in losses and $6.8 million in net deductions which have not yet been taken on a tax return.

As of December 31, 2018, we had net operating loss carryforwards for state income tax purposes of $35.7 million. These state net operating losses begin to expire in 2019.

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, 2018, 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 2014.

11. Commitments and Contingencies

12 Months Ended

Dec. 31, 2018

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 2025. Future minimum lease payments at December 31, 2018, under these leases are due during the years ended December 31 as follows:

	Amount
		(In thousands)
2019	$	7,684
2020		7,588
2021		7,476
2022		6,116
2023		1,389
Thereafter		689

Total minimum lease payments	$	30,942

Rent expense for the years ended December 31, 2018, 2017 and 2016, was $7.2 million, $6.3 million and $5.2 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.

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.

Department of Justice Industry Inquiry. In January 2015, we were served with a subpoena by the U.S. Department of Justice (the “DOJ”) 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 DOJ in contemplation of a civil proceeding for potential violations of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989. The DOJ in its investigation requested information relating, among other matters, to the underwriting criteria used to originate these automobile contracts and to the representations and warranties relating to those underwriting criteria that were made in connection with the securitization of the automobile contracts. We are among several other securitizers of sub-prime automobile receivables who received such subpoenas in 2014, 2015 and 2016. We have provided the required information, and we were advised by the DOJ in February 2018 that no further information is required of us and that no enforcement action is recommended.

Although the inquiry commenced January 2015 is thus completed as to us, no assurance can be given as to whether some other government agency may commence inquiries into or actions against us, nor as to whether the DOJ may recommence its investigation, any of which hypothetical proceedings might materially and adversely affect us.

Wage and Hour Claim. On September 24, 2018, a former employee filed a lawsuit against us in the Superior Court of Orange County, California, alleging that we incorrectly classified our sales and marketing representatives as outside salespersons exempt from overtime wages, mandatory break periods and certain other employee protective provisions of California and federal law. The complaint seeks injunctive relief, an award of unpaid wages, liquidated damages, and attorney fees and interest. The plaintiff purports to act on behalf of a class of similarly situated employees and ex-employees. As of the date of this report, no motion for class certification has been filed or granted.

We believe that our compensation practices with respect to our marketing representatives are compliant with applicable law. Accordingly, we have defended and intend to continue to defend this lawsuit. We have not recorded a liability with respect to this claim on the accompanying consolidated financial statements.

In General. There can be no assurance as to the outcomes of the matters described or referenced above. We record at each measurement date, most recently as of December 31, 2018, our best estimate of probable incurred losses for legal contingencies, including each 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 total of probable incurred losses for legal contingencies as of December 31, 2018 is immaterial, and 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, 2018 does not exceed $3 million.

Accordingly, we believe that the ultimate resolution of such legal proceedings and contingencies 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 DOJ 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 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, 2018

Employee Benefits

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 the maximum allowed under the law. We may, at our discretion, match 100% of employees’ contributions up to $2,000 per employee per calendar year. Our matching contributions to the 401(k) Plan were $1.5 million, $1.2 million, and $929,000 respectively, for the years ended December 31, 2018, 2017 and 2016.

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, 2018 and 2017:

	December 31,
	2018			2017
	(In thousands)
Change in Projected Benefit Obligation
Projected benefit obligation, beginning of year	$	22,562		$	21,515
Service cost		–			–
Interest cost		775			855
Assumption changes		(1,867	)		1,535
Actuarial (gain) loss		(361	)		(298	)
Settlements		–			–
Benefits paid		(1,024	)		(1,045	)
Projected benefit obligation, end of year	$	20,085		$	22,562

Change in Plan Assets
Fair value of plan assets, beginning of year	$	16,446		$	16,243
Return on assets		(1,806	)		1,508
Employer contribution		1,000			–
Expenses		(248	)		(260	)
Settlements		–			–
Benefits paid		(1,024	)		(1,045	)
Fair value of plan assets, end of year	$	14,368		$	16,446

Funded Status at end of year	$	(5,717	)	$	(6,116	)

Additional Information

Weighted average assumptions used to determine benefit obligations and cost at December 31, 2018 and 2017 were as follows:

	December, 31
	2018		2017
Weighted average assumptions used to determine benefit obligations
Discount rate		4.11%		3.50%

Weighted average assumptions used to determine net periodic benefit cost
Discount rate		3.50%		4.05%
Expected return on plan assets		7.25%		7.25%

Our overall expected long-term rate of return on assets is 7.25% per annum as of December 31, 2018. 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,
	2018			2017			2016
	(In thousands)
Amounts recognized on Consolidated Balance Sheet
Other assets	$	–		$	–		$	–
Other liabilities		(5,717	)		(6,116	)		(5,272	)
Net amount recognized	$	(5,717	)	$	(6,116	)	$	(5,272	)

Amounts recognized in accumulated other comprehensive loss consists of:
Net loss	$	11,896		$	11,350		$	10,618
Unrecognized transition asset		–			–			–
Net amount recognized	$	11,896		$	11,350		$	10,618

Components of net periodic benefit cost
Interest cost	$	775		$	855		$	882
Expected return on assets		(1,163	)		(1,149	)		(1,199	)
Amortization of transition asset		–			–			–
Amortization of net loss		443			405			553
Net periodic benefit cost		55			111			236
Settlement (gain)/loss		–			–			–
Total	$	55		$	111		$	236

Benefit Obligation Recognized in Other Comprehensive Loss (Income)
Net loss (gain)	$	545		$	732		$	25
Prior service cost (credit)		–			–			–
Amortization of prior service cost		–			–			–
Net amount recognized in other comprehensive loss (income)	$	545		$	732		$	25

The estimated net loss that will be amortized from accumulated other comprehensive income into net periodic benefit cost in 2019 is $376,000.

The weighted average asset allocation of our pension benefits at December 31, 2018 and 2017 were as follows:

	December 31,
	2018		2017
Weighted Average Asset Allocation at Year-End
Asset Category
Equity securities		78%		83%
Debt securities		22%		17%
Cash and cash equivalents		0%		0%
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)
2019	$	829
2020		873
2021		911
2022		947
2023		976
Years 2024 - 2028		5,507

Anticipated Contributions in 2019	$	–

The fair value of plan assets at December 31, 2018 and 2017, by asset category, is as follows:

	December 31, 2018
	Level 1 (1)		Level 2 (2)		Level 3 (3)		Total
Investment Name:	(in thousands)
Company Common Stock	$	2,635	$	–	$	–	$	2,635
Large Cap Value		–		1,983		–		1,983
Mid Cap Index		–		563		–		563
Small Cap Growth		–		559		–		559
Small Cap Value		–		558		–		558
Large Cap Blend		–		587		–		587
Growth		–		2,031		–		2,031
International Growth		–		2,301		–		2,301
Core Bond		–		1,921		–		1,921
High Yield		–		364		–		364
Inflation Protected Bond		–		510		–		510
Money Market		–		356		–		356
Total	$	2,635	$	11,733	$	–	$	14,368

	December 31, 2017
	Level 1 (1)		Level 2 (2)		Level 3 (3)		Total
Investment Name:	(in thousands)
Company Common Stock	$	3,633	$	–	$	–	$	3,633
Large Cap Value		–		2,324		–		2,324
Mid Cap Index		–		654		–		654
Small Cap Growth		–		657		–		657
Small Cap Value		–		647		–		647
Large Cap Blend		–		661		–		661
Growth		–		2,313		–		2,313
International Growth		–		2,683		–		2,683
Core Bond		–		1,870		–		1,870
High Yield		–		373		–		373
Inflation Protected Bond		–		505		–		505
Money Market		–		126		–		126
Total	$	3,633	$	12,813	$	–	$	16,446

(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, 2018

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.

Effective January 2018 we have elected to use the fair value method to value our portfolio of finance receivables acquired in January 2018 and thereafter.

Our valuation policies and procedures have been developed by our Accounting department in conjunction with our Risk department and with consultation with outside valuation experts. Our policies and procedures have been approved by our Chief Executive and our Board of Directors and include methodologies for valuation, internal reporting, calibration and back testing. Our periodic review of valuations includes an analysis of changes in fair value measurements and documentation of the reasons for such changes. There is little available third-party information such as broker quotes or pricing services available to assist us in our valuation process.

Our level 3, unobservable inputs reflect our own assumptions about the factors that market participants use in pricing similar receivables and are based on the best information available in the circumstances. They include such inputs as estimates for the magnitude and timing of net charge-offs and the rate of amortization of the portfolio of finance receivable. Significant changes in any of those inputs in isolation would have a significant impact on our fair value measurement.

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

	Twelve Months Ended
	December 31,
	2018			2017
	(In thousands)
Balance at beginning of period	$	–		$	–
Finance receivables at fair value acquired during period		914,949			–
Payments received on finance receivables at fair value		(67,720	)		–
Net interest income accretion on fair value receivables		(26,163	)		–
Mark to fair value		–			–
Balance at end of period	$	821,066		$	–

The table below compares the fair values of these finance receivables to their contractual balances for the periods shown:

December 31, 2018

December 31, 2017

Contractual

Fair

Contractual

Fair

Balance

Value

Balance

Value

(In thousands)

Finance receivables measured at fair value

829,039

821,066

–

The following table provides certain qualitative information about our level 3 fair value measurements:

Financial Instrument

Fair Values as of

Inputs as of

December 31,

2018

2017

Unobservable Inputs

2018

2017

(In thousands)

Assets:

Finance receivables measured at fair value

821,066

–

Discount rate

8.9% - 9.9%

n/a

Cumulative net losses

15% - 16%

n/a

The following table summarizes the delinquency status using the contractual balance of these finance receivables measured at fair value as of December 31, 2018 and December 31, 2017:

	December 31,		December 31,
	2018		2017
	(In thousands)
Delinquency Status
Current	$	790,727	$	–
31 - 60 days		26,285		–
61 - 90 days		8,350		–
91 + days		3,677		–
	$	829,039	$	–

Repossessed vehicle inventory, which is included in Other assets on our 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, 2018, the finance receivables related to the repossessed vehicles in inventory totaled $33.5 million. We have applied a valuation adjustment, or loss allowance, of $24.6 million, which is based on a recovery rate of approximately 27%, resulting in an estimated fair value and carrying amount of $8.9 million. The fair value and carrying amount of the repossessed inventory at December 31, 2017 was $9.7 million after applying a valuation adjustment of $24.0 million.

There were no transfers in or out of level 1 or level 2 assets and liabilities for 2018 and 2017. We have no level 3 assets or liabilities that are measured at fair value on a non-recurring basis.

The estimated fair values of financial assets and liabilities at December 31, 2018 and 2017, were as follows:

	As of December 31, 2018
Financial Instrument	(In thousands)
	Carrying		Fair Value Measurements Using:
	Value		Level 1		Level 2		Level 3		Total
Assets:
Cash and cash equivalents	$	12,787	$	12,787	$	–	$	–	$	12,787
Restricted cash and equivalents		117,323		117,323		–		–		117,323
Finance receivables, net		1,454,709		–		–		1,434,631		1,434,631
Accrued interest receivable		31,969		–		–		31,969		31,969
Liabilities:
Warehouse lines of credit	$	136,847	$	–	$	–	$	136,847	$	136,847
Accrued interest payable		4,819		–		–		4,819		4,819
Securitization trust debt		2,063,627		–		–		2,051,920		2,051,920
Subordinated renewable notes		17,290		–	$	–		17,290		17,290

	As of December 31, 2017
Financial Instrument	(In thousands)
	Carrying		Fair Value Measurements Using:
	Value		Level 1		Level 2		Level 3		Total
Assets:
Cash and cash equivalents	$	12,731	$	12,731	$	–	$	–	$	12,731
Restricted cash and equivalents		111,965		111,965		–		–		111,965
Finance receivables, net		2,195,797		–		–		2,171,846		2,171,846
Accrued interest receivable		46,753		–		–		46,753		46,753
Liabilities:
Warehouse lines of credit	$	112,408	$	–	$	–	$	112,408	$	112,408
Accrued interest payable		4,212		–		–		4,212		4,212
Securitization trust debt		2,083,215		–		–		2,089,678		2,089,678
Subordinated renewable notes		16,566		–		–		16,566		16,566

14. Subsequent Events

12 Months Ended

Dec. 31, 2018

Subsequent Events [Abstract]

Subsequent Events

14) Subsequent Events

On January 23, 2019 we executed our first securitization of 2019. In the transaction, qualified institutional buyers purchased $254.4 million of asset-backed notes secured by $265.0 million in automobile receivables purchased by us. The sold notes, issued by CPS Auto Receivables Trust 2019-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. The weighted average yield on the notes is approximately 4.22%.

The 2019-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 the lesser of 8.50% of the original receivable pool balance, or 18.70% of the then outstanding pool balance. The transaction utilizes a pre-funding structure, in which CPS sold approximately $166.1 million of receivables on January 23, 2019 and sold $98.9 million of additional receivables on February 13, 2019. The transaction was a private offering of securities, not registered under the Securities Act of 1933, or any state securities law.

On February 22, 2019 we amended our $100 million warehouse credit line with Fortress Investment Group extending the revolving period to February 2021 followed by an amortization period through February 2023.

1. Summary of Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2018

Accounting Policies [Abstract]

Description of Business

Description of Business

Principles of Consolidation

Principles of Consolidation

Cash and Cash Equivalents

Cash and Cash Equivalents

Finance Receivables

Finance Receivables

Finance Receivables Measured at Fair Value

Finance Receivables Measured at Fair Value

Allowance for Finance Credit Losses

Allowance for Finance Credit Losses

Charge Off Policy

Charge Off Policy

Contract Acquisition Fees and Origination Costs

Contract Acquisition Fees and Origination Costs

Repossessed and Other Assets

Repossessed and Other Assets

Treatment of Securitizations

Treatment of Securitizations

Our term securitization structure has generally been as follows:

Servicing

Servicing

Furniture and Equipment

Furniture and Equipment

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

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

Other Income

Other Income

The following table presents the primary components of Other Income:

	Year Ended December 31,
	2018		2017		2016
	(In thousands)
Direct mail revenues	$	5,829	$	6,432	$	9,202
Convenience fee revenue		1,700		1,900		2,145
Recoveries on previously charged-off contracts		248		563		766
Sales tax refunds		887		866		811
Other		814		448		362
	$	9,478	$	10,209	$	13,286

Earnings Per Share

Earnings Per Share

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

	Year Ended December 31,
	2018		2017		2016
	(In thousands, except per share data)
Numerator:
Numerator for basic and diluted earnings per share	$	14,862	$	3,765	$	29,300
Denominator:
Denominator for basic earnings per share - weighted average number of common shares outstanding during the year		21,989		22,687		24,356
Incremental common shares attributable to exercise of outstanding options and warrants		2,999		4,527		4,679
Denominator for diluted earnings per share		24,988		27,214		29,035
Basic earnings per share	$	0.68	$	0.17	$	1.20
Diluted earnings per share	$	0.59	$	0.14	$	1.01

Deferral and Amortization of Debt Issuance Costs

Deferral and Amortization of Debt Issuance Costs

Income Taxes

Income Taxes

Purchases of Company Stock

Purchases of Company Stock

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

Stock Option Plan

Stock Option Plan

Use of Estimates

Use of Estimates

Reclassification

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

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, 2018

Accounting Policies [Abstract]

Schedule of other income

The following table presents the primary components of Other Income:

	Year Ended December 31,
	2018		2017		2016
	(In thousands)
Direct mail revenues	$	5,829	$	6,432	$	9,202
Convenience fee revenue		1,700		1,900		2,145
Recoveries on previously charged-off contracts		248		563		766
Sales tax refunds		887		866		811
Other		814		448		362
	$	9,478	$	10,209	$	13,286

Schedule of computation of earnings per share

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

	Year Ended December 31,
	2018		2017		2016
	(In thousands, except per share data)
Numerator:
Numerator for basic and diluted earnings per share	$	14,862	$	3,765	$	29,300
Denominator:
Denominator for basic earnings per share - weighted average number of common shares outstanding during the year		21,989		22,687		24,356
Incremental common shares attributable to exercise of outstanding options and warrants		2,999		4,527		4,679
Denominator for diluted earnings per share		24,988		27,214		29,035
Basic earnings per share	$	0.68	$	0.17	$	1.20
Diluted earnings per share	$	0.59	$	0.14	$	1.01

3. Finance Receivables (Tables)

12 Months Ended

Dec. 31, 2018

Finance Receivables

Schedule of finance receivables

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

	December 31,
	2018		2017
Finance receivables	(In thousands)
Automobile finance receivables, net of unearned interest	$	1,518,395	$	2,298,608
Unearned acquisition fees, discounts and deferred origination costs, net		3,690		6,376
Finance receivable	$	1,522,085	$	2,304,984

Schedule of delinquency status of finance receivables

The following table summarizes the delinquency status of finance receivables as of December 31, 2018 and 2017:

	December 31,
	2018		2017
	(In thousands)
Delinquency Status
Current	$	1,262,730	$	2,069,617
31 - 60 days		157,688		138,395
61 - 90 days.		66,134		63,081
91 + days		31,843		27,515
	$	1,518,395	$	2,298,608

Schedule of allowance for credit losses

The following table presents a summary of the activity for the allowance for finance credit losses, for the years ended December 31, 2018, 2017 and 2016:

	December 31,
	2018			2017			2016
				(In thousands)
Balance at beginning of year	$	109,187		$	95,578		$	75,603
Provision for credit losses		133,080			186,713			178,511
Charge-offs		(220,523	)		(211,948	)		(192,366	)
Recoveries		45,632			38,844			33,830
Balance at end of year	$	67,376		$	109,187		$	95,578

Schedule of allowance for losses on repossessed inventory

The following table presents a summary of such repossessed inventory together with the allowance for losses on repossessed inventory:

	December 31,
	2018			2017
	(In thousands)
Gross balance of repossessions in inventory	$	33,462		$	33,679
Allowance for losses on repossessed inventory		(24,564	)		(24,024	)
Net repossessed inventory included in other assets	$	8,898		$	9,655

5. Securitization Trust Debt (Tables)

12 Months Ended

Dec. 31, 2018

Securitization Trust Debt

Schedule of securitization trust debt

Series		Final Scheduled Payment Date (1)	Receivables Pledged at December 31, 2018 (2)		Initial Principal		Outstanding Principal at December 31, 2018		Outstanding Principal at December 31, 2017		Weighted Average Contractual Interest Rate at December 31, 2018
		(Dollars in thousands)
	CPS 2013-B	September 2020		–		205,000		–		18,407		–
	CPS 2013-C	December 2020		–		205,000		–		25,559		–
	CPS 2013-D	March 2021		–		183,000		–		24,917		–
	CPS 2014-A	June 2021		17,442		180,000		15,328		30,521		5.36	%
	CPS 2014-B	September 2021		26,092		202,500		24,051		44,516		4.42	%
	CPS 2014-C	December 2021		42,912		273,000		40,896		71,174		4.52	%
	CPS 2014-D	March 2022		48,279		267,500		46,489		79,099		4.95	%
	CPS 2015-A	June 2022		54,983		245,000		52,448		87,194		4.49	%
	CPS 2015-B	September 2022		65,736		250,000		64,591		102,873		4.43	%
	CPS 2015-C	December 2022		92,123		300,000		90,639		141,362		4.89	%
	CPS 2016-A	March 2023		121,404		329,460		119,444		180,761		5.18	%
	CPS 2016-B	June 2023		139,696		332,690		135,688		201,199		5.40	%
	CPS 2016-C	September 2023		139,406		318,500		136,114		203,504		5.12	%
	CPS 2016-D	April 2024		107,009		206,325		104,645		149,671		3.84	%
	CPS 2017-A	April 2024		115,991		206,320		113,527		161,892		4.00	%
	CPS 2017-B	December 2023		140,953		225,170		127,726		186,594		3.43	%
	CPS 2017-C	September 2024		142,106		224,825		131,845		197,155		3.35	%
	CPS 2017-D	June 2024		142,370		196,300		132,919		189,277		3.11	%
	CPS 2018-A	March 2025		151,620		190,000		142,643		–		3.13	%
	CPS 2018-B	December 2024		175,363		201,823		167,809		–		3.58	%
	CPS 2018-C	September 2025		214,617		230,275		204,418		–		3.65	%
	CPS 2018-D	June 2025		236,410		233,730		224,189		–		3.74	%
			$	2,174,512	$	5,206,418	$	2,075,409	$	2,095,675

_________________________

(1)

(2)

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

- Definition

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.22)
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 1A
-URI http://asc.fasb.org/extlink&oid=114775744&loc=d3e28541-108399

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21506-112644

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(e),(f))
-URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690

Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=114775744&loc=d3e28551-108399

Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21521-112644

Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21538-112644

Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 470
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=75038535&loc=d3e64711-112823

Reference 9: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 55
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=114775985&loc=d3e28878-108400

Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21475-112644

+ Details

6. Debt (Tables)

12 Months Ended

Dec. 31, 2018

Debt Disclosure [Abstract]

Schedule of debt outstanding

The terms of our debt outstanding at December 31, 2018 and 2017 are summarized below:

			December 31,		December 31,
			2018		2017
			(In thousands)
Description	Interest Rate	Maturity

Warehouse lines of credit	5.50% over one month Libor (Minimum 6.50%)	February 2021	$	38,198	$	25,629

	3.00% over one month Libor (Minimum 3.75%)	September 2020		99,885		77,546

	6.75% over a commercial paper rate (Minimum 7.75%)	November 2019		–		11,100

Residual interest financing	8.60%	January 2026		40,000		–

Subordinated renewable notes	Weighted average rate of 8.53% and 7.99% at December 31, 2018 and December 31, 2017, respectively	Weighted average maturity of January 2021 and March 2020 at December 31, 2018 and December 31, 2017, respectively		17,290		16,566

			$	195,373	$	130,841

Schedule of expected maturity amounts for long-term debt

The following table summarizes the contractual and expected maturity amounts of long term debt as of December 31, 2018:

Contractual maturity date	Subordinated renewable notes

2019	$	8,561
2020		2,788
2021		3,607
2022		404
2023		366
Thereafter		1,564
Total	$	17,290

7. Shareholders' Equity (Tables)

12 Months Ended

Dec. 31, 2018

Equity [Abstract]

Schedule of stock purchases

The table below describes the purchase of our common stock for the twelve-month periods ended December 31, 2018 and 2017:

	Twelve Months Ended
	December 31, 2018				December 31, 2017
	Shares		Avg. Price		Shares		Avg. Price
Open market purchases		1,258,797	$	3.77		2,693,562	$	4.48
Shares redeemed upon net exercise of stock options		33,604		4.37		51,931		4.50
Other		90,000		4.13		–		–
Total stock purchases		1,382,401	$	3.81		2,745,493	$	4.49

Schedule of assumptions for stock options

The dividend yield is estimated to be zero based on our intention not to issue dividends for the foreseeable future.

	Year Ended December 31,
	2018			2017			2016
Expected life (years)		3.99			4.02			4.04
Risk-free interest rate		2.74	%		1.59	%		1.09	%
Volatility		34	%		36	%		51	%
Expected dividend yield		–			–			–

Schedule of option activity

Stock option activity for the year ended December 31, 2018 for stock options under the 2006 and 1997 plans is as follows:

						Weighted
	Number of			Weighted		Average
	Shares			Average		Remaining
	(in thousands)			Exercise Price		Contractual Term
Options outstanding at the beginning of period		13,135		$	4.66	N/A
Granted		1,720			3.49	N/A
Exercised		(315	)		1.53	N/A
Forfeited/Expired		(119	)		7.20	N/A
Options outstanding at the end of period		14,421		$	4.57	3.91 years

Options exercisable at the end of period		8,789		$	4.76	3.42 years

8. Interest Income and Interest Expense (Tables)

12 Months Ended

Dec. 31, 2018

Interest Income And Interest Expense

Schedule of interest income

The following table presents the components of interest income:

	Year Ended December 31,
	2018		2017		2016
	(In thousands)
Interest on finance receivables	$	334,634	$	423,567	$	408,723
Interest on finance receivables at fair value		43,863		–		–
Other interest income		1,800		607		273
Interest income	$	380,297	$	424,174	$	408,996

Schedule of interest expense

The following table presents the components of interest expense:

	Year Ended December 31,
	2018		2017		2016
	(In thousands)
Securitization trust debt	$	89,926	$	83,084	$	69,178
Warehouse lines of credit		7,752		7,933		8,569
Residual interest financing		2,343		–		846
Subordinated renewable notes		1,445		1,328		1,348
Interest expense	$	101,466	$	92,345	$	79,941

9. Income Taxes (Tables)

12 Months Ended

Dec. 31, 2018

Income Tax Disclosure [Abstract]

Schedule of income tax expense

Income taxes consist of the following:

	Year Ended December 31,
	2018			2017		2016
	(In thousands)
Current federal tax expense	$	(7,526	)	$	14,369	$	22,872
Current state tax expense		(2,064	)		3,305		2,671
Deferred federal tax expense		9,074			10,131		(6,329	)
Deferred state tax expense		4,357			501		1,147
Income tax expense	$	3,841		$	28,306	$	20,361

Schedule of reconciliation of income taxes

Income tax expense for the years ended December 31, 2018, 2017 and 2016 differs from the amount determined by applying the statutory federal rate to income before income taxes as follows:

	Year Ended December 31,
	2018			2017			2016
	(In thousands)
Expense at federal tax rate	$	3,928		$	11,225		$	17,381
State taxes, net of federal income tax effect		1,718			1,831			2,679
Stock-based compensation		238			682			824
Non-deductible expenses		824			171			145
Effect of change in tax rate		–			15,117			–
Accounting method change		(2,100	)		–			–
Other		(767	)		(720	)		(668	)
	$	3,841		$	28,306		$	20,361

Schedule of deferred tax assets and liabilities

The tax effected cumulative temporary differences that give rise to deferred tax assets and liabilities as of December 31, 2018 and 2017 are as follows:

	December 31,
	2018			2017
	(In thousands)
Deferred Tax Assets:
Finance receivables	$	1,867		$	23,034
Accrued liabilities		256			206
NOL carryforwards		7,736			529
Built in losses		4,651			5,277
Pension accrual		1,552			1,654
Stock compensation		4,161			3,642
Other		356			582
Total deferred tax assets		20,579			34,924

Deferred Tax Liabilities:
Deferred loan costs		(1,137	)		(2,233	)
Furniture and equipment		(254	)		(245	)
Total deferred tax liabilities		(1,391	)		(2,478	)

Net deferred tax asset	$	19,188		$	32,446

12. Employee Benefits (Tables)

12 Months Ended

Dec. 31, 2018

Employee Benefits

Schedule of reconciliation of the change in the plan's benefit obligations

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, 2018 and 2017:

	December 31,
	2018			2017
	(In thousands)
Change in Projected Benefit Obligation
Projected benefit obligation, beginning of year	$	22,562		$	21,515
Service cost		–			–
Interest cost		775			855
Assumption changes		(1,867	)		1,535
Actuarial (gain) loss		(361	)		(298	)
Settlements		–			–
Benefits paid		(1,024	)		(1,045	)
Projected benefit obligation, end of year	$	20,085		$	22,562

Change in Plan Assets
Fair value of plan assets, beginning of year	$	16,446		$	16,243
Return on assets		(1,806	)		1,508
Employer contribution		1,000			–
Expenses		(248	)		(260	)
Settlements		–			–
Benefits paid		(1,024	)		(1,045	)
Fair value of plan assets, end of year	$	14,368		$	16,446

Funded Status at end of year	$	(5,717	)	$	(6,116	)

Schedule of weighted average assumptions used to determine pension benefit obligations

Weighted average assumptions used to determine benefit obligations and cost at December 31, 2018 and 2017 were as follows:

	December, 31
	2018		2017
Weighted average assumptions used to determine benefit obligations
Discount rate		4.11%		3.50%

Weighted average assumptions used to determine net periodic benefit cost
Discount rate		3.50%		4.05%
Expected return on plan assets		7.25%		7.25%

Schedule of components of net periodic benefit cost

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,
	2018			2017			2016
	(In thousands)
Amounts recognized on Consolidated Balance Sheet
Other assets	$	–		$	–		$	–
Other liabilities		(5,717	)		(6,116	)		(5,272	)
Net amount recognized	$	(5,717	)	$	(6,116	)	$	(5,272	)

Amounts recognized in accumulated other comprehensive loss consists of:
Net loss	$	11,896		$	11,350		$	10,618
Unrecognized transition asset		–			–			–
Net amount recognized	$	11,896		$	11,350		$	10,618

Components of net periodic benefit cost
Interest cost	$	775		$	855		$	882
Expected return on assets		(1,163	)		(1,149	)		(1,199	)
Amortization of transition asset		–			–			–
Amortization of net loss		443			405			553
Net periodic benefit cost		55			111			236
Settlement (gain)/loss		–			–			–
Total	$	55		$	111		$	236

Benefit Obligation Recognized in Other Comprehensive Loss (Income)
Net loss (gain)	$	545		$	732		$	25
Prior service cost (credit)		–			–			–
Amortization of prior service cost		–			–			–
Net amount recognized in other comprehensive loss (income)	$	545		$	732		$	25

Schedule of weighted average asset allocation of our pension benefits

The weighted average asset allocation of our pension benefits at December 31, 2018 and 2017 were as follows:

	December 31,
	2018		2017
Weighted Average Asset Allocation at Year-End
Asset Category
Equity securities		78%		83%
Debt securities		22%		17%
Cash and cash equivalents		0%		0%
Total		100%		100%

Schedule of estimated Future Benefit Payments

Estimated Future Benefit Payments (In thousands)
2019	$	829
2020		873
2021		911
2022		947
2023		976
Years 2024 - 2028		5,507

Anticipated Contributions in 2019	$	–

Schedule of fair value of plan assets

The fair value of plan assets at December 31, 2018 and 2017, by asset category, is as follows:

	December 31, 2018
	Level 1 (1)		Level 2 (2)		Level 3 (3)		Total
Investment Name:	(in thousands)
Company Common Stock	$	2,635	$	–	$	–	$	2,635
Large Cap Value		–		1,983		–		1,983
Mid Cap Index		–		563		–		563
Small Cap Growth		–		559		–		559
Small Cap Value		–		558		–		558
Large Cap Blend		–		587		–		587
Growth		–		2,031		–		2,031
International Growth		–		2,301		–		2,301
Core Bond		–		1,921		–		1,921
High Yield		–		364		–		364
Inflation Protected Bond		–		510		–		510
Money Market		–		356		–		356
Total	$	2,635	$	11,733	$	–	$	14,368

	December 31, 2017
	Level 1 (1)		Level 2 (2)		Level 3 (3)		Total
Investment Name:	(in thousands)
Company Common Stock	$	3,633	$	–	$	–	$	3,633
Large Cap Value		–		2,324		–		2,324
Mid Cap Index		–		654		–		654
Small Cap Growth		–		657		–		657
Small Cap Value		–		647		–		647
Large Cap Blend		–		661		–		661
Growth		–		2,313		–		2,313
International Growth		–		2,683		–		2,683
Core Bond		–		1,870		–		1,870
High Yield		–		373		–		373
Inflation Protected Bond		–		505		–		505
Money Market		–		126		–		126
Total	$	3,633	$	12,813	$	–	$	16,446

(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 (Tables)

12 Months Ended

Dec. 31, 2018

Fair Value Disclosures [Abstract]

Schedule of reconciliation of the finance receivables measured at fair value on a recurring basis

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

	Twelve Months Ended
	December 31,
	2018			2017
	(In thousands)
Balance at beginning of period	$	–		$	–
Finance receivables at fair value acquired during period		914,949			–
Payments received on finance receivables at fair value		(67,720	)		–
Net interest income accretion on fair value receivables		(26,163	)		–
Mark to fair value		–			–
Balance at end of period	$	821,066		$	–

Schedule of finance receivables to their contractual balances

The table below compares the fair values of these finance receivables to their contractual balances for the periods shown:

December 31, 2018

December 31, 2017

Contractual

Fair

Contractual

Fair

Balance

Value

Balance

Value

(In thousands)

Finance receivables measured at fair value

829,039

821,066

–

Schedule of level 3 fair value measurements

The following table provides certain qualitative information about our level 3 fair value measurements:

Financial Instrument

Fair Values as of

Inputs as of

December 31,

2018

2017

Unobservable Inputs

2018

2017

(In thousands)

Assets:

Finance receivables measured at fair value

821,066

–

Discount rate

8.9% - 9.9%

n/a

Cumulative net losses

15% - 16%

n/a

Schedule of delinquency status of finance receivables measured at fair value

The following table summarizes the delinquency status using the contractual balance of these finance receivables measured at fair value as of December 31, 2018 and December 31, 2017:

	December 31,		December 31,
	2018		2017
	(In thousands)
Delinquency Status
Current	$	790,727	$	–
31 - 60 days		26,285		–
61 - 90 days		8,350		–
91 + days		3,677		–
	$	829,039	$	–

Schedule of estimated fair values of financial assets and liabilities

The estimated fair values of financial assets and liabilities at December 31, 2018 and 2017, were as follows:

	As of December 31, 2018
Financial Instrument	(In thousands)
	Carrying		Fair Value Measurements Using:
	Value		Level 1		Level 2		Level 3		Total
Assets:
Cash and cash equivalents	$	12,787	$	12,787	$	–	$	–	$	12,787
Restricted cash and equivalents		117,323		117,323		–		–		117,323
Finance receivables, net		1,454,709		–		–		1,434,631		1,434,631
Accrued interest receivable		31,969		–		–		31,969		31,969
Liabilities:
Warehouse lines of credit	$	136,847	$	–	$	–	$	136,847	$	136,847
Accrued interest payable		4,819		–		–		4,819		4,819
Securitization trust debt		2,063,627		–		–		2,051,920		2,051,920
Subordinated renewable notes		17,290		–	$	–		17,290		17,290

	As of December 31, 2017
Financial Instrument	(In thousands)
	Carrying		Fair Value Measurements Using:
	Value		Level 1		Level 2		Level 3		Total
Assets:
Cash and cash equivalents	$	12,731	$	12,731	$	–	$	–	$	12,731
Restricted cash and equivalents		111,965		111,965		–		–		111,965
Finance receivables, net		2,195,797		–		–		2,171,846		2,171,846
Accrued interest receivable		46,753		–		–		46,753		46,753
Liabilities:
Warehouse lines of credit	$	112,408	$	–	$	–	$	112,408	$	112,408
Accrued interest payable		4,212		–		–		4,212		4,212
Securitization trust debt		2,083,215		–		–		2,089,678		2,089,678
Subordinated renewable notes		16,566		–		–		16,566		16,566

1. Summary of Significant Accounting Policies (Details - Other income) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Primary components of Other Income
Other income for the period	$ 9,478	$ 10,209	$ 13,286
Direct Mail Revenues [Member]
Primary components of Other Income
Other income for the period	5,829	6,432	9,202
Convenience Fee Revenue [Member]
Primary components of Other Income
Other income for the period	1,700	1,900	2,145
Recoveries on Previously Charged-Off Contracts [Member]
Primary components of Other Income
Other income for the period	248	563	766
Sales Tax Refunds [Member]
Primary components of Other Income
Other income for the period	887	866	811
Other Income [Member]
Primary components of Other Income
Other income for the period	$ 814	$ 448	$ 362

1. Summary of Significant Accounting Policies (Details - Earnings Per Share) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Accounting Policies [Abstract]
Numerator for basic and diluted earnings per share	$ 14,862	$ 3,765	$ 29,300
Denominator for basic earnings per share - weighted average number of common shares outstanding during the year	21,989	22,687	24,356
Incremental common shares attibutable to exercise of outstanding options and warrants	2,999	4,527	4,679
Denominator for diluted earnings per share	24,988	27,214	29,035
Basic earnings per share	$ 0.68	$ 0.17	$ 1.20
Diluted earnings per share	$ 0.59	$ 0.14	$ 1.01

- Definition

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

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04(19))
-URI http://asc.fasb.org/extlink&oid=114873790&loc=SL114874131-224263

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=109260490&loc=d3e1337-109256

Reference 3: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 55
-Paragraph 52
-URI http://asc.fasb.org/extlink&oid=109256448&loc=d3e4984-109258

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03(21))
-URI http://asc.fasb.org/extlink&oid=115205541&loc=SL114868664-224227

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 11
-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22694-107794

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 50
-Paragraph 1
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=6371337&loc=d3e3550-109257

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=109260490&loc=d3e1252-109256

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-04(23))
-URI http://asc.fasb.org/extlink&oid=114873765&loc=SL114874048-224260

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 60B
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=109260490&loc=SL5780133-109256

+ Details

- Definition

The amount of net income (loss) for the period available to each share of common stock or common unit outstanding during the reporting period and to each share or unit that would have been outstanding assuming the issuance of common shares or units for all dilutive potential common shares or units outstanding during the reporting period.

+ References

Reference 1: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 55
-Paragraph 52
-URI http://asc.fasb.org/extlink&oid=109256448&loc=d3e4984-109258

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=109260490&loc=d3e1252-109256

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 50
-Paragraph 1
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=6371337&loc=d3e3550-109257

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-04(23))
-URI http://asc.fasb.org/extlink&oid=114873765&loc=SL114874048-224260

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 11
-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22694-107794

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=109260490&loc=d3e1337-109256

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03(21))
-URI http://asc.fasb.org/extlink&oid=115205541&loc=SL114868664-224227

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 60B
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=109260490&loc=SL5780133-109256

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04(19))
-URI http://asc.fasb.org/extlink&oid=114873790&loc=SL114874131-224263

+ 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) shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2018 USD ($) shares	Dec. 31, 2017 USD ($) shares	Dec. 31, 2016 shares
Unrestricted cash balance	$ 12,787	$ 12,731
Other assets	$ 26,801	$ 23,397
Incremental shares excluded from EPS calculation \| shares	10,300	7,500	7,900
CPS Leasing, Inc. [Member]
Ownership percentage in subsidiary	0.80
Repossessed Vehicles [Member]
Other assets	$ 8,900	$ 9,700
Dealer concentration [Member] \| Geographic Concentration [Member] \| OHIO
Concentration percentage	8.80%	7.40%
Dealer concentration [Member] \| Geographic Concentration [Member] \| CALIFORNIA
Concentration percentage	8.70%	7.10%
Dealer concentration [Member] \| Geographic Concentration [Member] \| NORTH CAROLINA
Concentration percentage	6.20%	5.80%
Dealer concentration [Member] \| Geographic Concentration [Member] \| FLORIDA
Concentration percentage	6.00%	5.90%
Dealer concentration [Member] \| Geographic Concentration [Member] \| INDIANA
Concentration percentage	5.20%	3.80%

2. Restricted Cash (Details Narrative) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Restricted cash	$ 117,323	$ 111,965
Securitizations and Credit Facility Reserves [Member]
Restricted cash	$ 48,500	$ 45,700

3. Finance Receivables (Details - Components of Finance Receivables) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Finance receivables
Automobile finance receivables, net of unearned interest	$ 1,518,395	$ 2,298,608
Unearned acquisition fees, discounts and deferred origination costs, net	3,690	6,376
Finance receivables	$ 1,522,085	$ 2,304,984

3. Finance Receivables (Details - Delinquency status) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Delinquency Status
Finance receivables, past due	$ 1,518,395	$ 2,298,608
Current [Member]
Delinquency Status
Finance receivables, past due	1,262,730	2,069,617
31 to 60 Days [Member]
Delinquency Status
Finance receivables, past due	157,688	138,395
61 to 90 Days [Member]
Delinquency Status
Finance receivables, past due	66,134	63,081
91 + Days [Member]
Delinquency Status
Finance receivables, past due	$ 31,843	$ 27,515

3. Finance Receivables (Details - Summary of activity) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Finance Receivables
Balance at beginning of year	$ 109,187	$ 95,578	$ 75,603
Provision for credit losses	133,080	186,713	178,511
Charge-offs	(220,523)	(211,948)	(192,366)
Recoveries	45,632	38,844	33,830
Balance at end of year	$ 67,376	$ 109,187	$ 95,578

3. Finance Receivables (Details - Repossessed inventory) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Finance Receivables
Gross balance of repossessions in inventory	$ 33,462	$ 33,679
Allowance for losses on repossessed inventory	(24,564)	(24,024)
Net repossessed inventory included in other assets	$ 8,898	$ 9,655

4. Furniture and Equipment (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Furniture and equipment, gross	$ 9,357	$ 8,296
Less: accumulated depreciation and amortization	(7,520)	(6,544)
Furniture and equipment, net	1,837	1,752
Furniture and Fixtures [Member]
Furniture and equipment, gross	1,647	1,566
Computer and Telephone Equipment [Member]
Furniture and equipment, gross	6,203	5,470
Leasehold Improvements [Member]
Furniture and equipment, gross	$ 1,507	$ 1,260

5. Securitization Trust Debt (Details) - USD ($)
$ in Thousands

12 Months Ended

Dec. 31, 2018

Dec. 31, 2017

"Securitization trust debt," and components of debt

Receivables Pledged at end of period

^[1]

$ 2,174,512

Initial Principal

5,206,418

Outstanding Principal

$ 2,075,409

$ 2,095,675

CPS 2013-B [Member]

"Securitization trust debt," and components of debt

Final Scheduled Payment Date

^[2]

September 2020

Receivables Pledged at end of period

$ 0

Initial Principal

205,000

Outstanding Principal

$ 0

18,407

Weighted Average Contractual Interest Rate

0.00%

CPS 2013-C [Member]

"Securitization trust debt," and components of debt

Final Scheduled Payment Date

^[2]

December 2020

Receivables Pledged at end of period

^[1]

$ 0

Initial Principal

205,000

Outstanding Principal

$ 0

25,559

Weighted Average Contractual Interest Rate

0.00%

CPS 2013-D [Member]

"Securitization trust debt," and components of debt

Final Scheduled Payment Date

^[2]

March 2021

Receivables Pledged at end of period

^[1]

$ 0

Initial Principal

183,000

Outstanding Principal

$ 0

24,917

Weighted Average Contractual Interest Rate

0.00%

CPS 2014-A [Member]

"Securitization trust debt," and components of debt

Final Scheduled Payment Date

^[2]

June 2021

Receivables Pledged at end of period

^[1]

$ 17,442

Initial Principal

180,000

Outstanding Principal

$ 15,328

30,521

Weighted Average Contractual Interest Rate

5.36%

CPS 2014-B [Member]

"Securitization trust debt," and components of debt

Final Scheduled Payment Date

^[2]

September 2021

Receivables Pledged at end of period

^[1]

$ 26,092

Initial Principal

202,500

Outstanding Principal

$ 24,051

44,516

Weighted Average Contractual Interest Rate

4.42%

CPS 2014-C [Member]

"Securitization trust debt," and components of debt

Final Scheduled Payment Date

^[2]

December 2021

Receivables Pledged at end of period

^[1]

$ 42,912

Initial Principal

273,000

Outstanding Principal

$ 40,896

71,174

Weighted Average Contractual Interest Rate

4.52%

CPS 2014-D [Member]

"Securitization trust debt," and components of debt

Final Scheduled Payment Date

^[2]

March 2022

Receivables Pledged at end of period

^[1]

$ 48,279

Initial Principal

267,500

Outstanding Principal

$ 46,489

79,099

Weighted Average Contractual Interest Rate

4.95%

CPS 2015-A [Member]

"Securitization trust debt," and components of debt

Final Scheduled Payment Date

^[2]

June 2022

Receivables Pledged at end of period

^[1]

$ 54,983

Initial Principal

245,000

Outstanding Principal

$ 52,448

87,194

Weighted Average Contractual Interest Rate

4.49%

CPS 2015-B [Member]

"Securitization trust debt," and components of debt

Final Scheduled Payment Date

^[2]

September 2022

Receivables Pledged at end of period

^[1]

$ 65,736

Initial Principal

250,000

Outstanding Principal

$ 64,591

102,873

Weighted Average Contractual Interest Rate

4.43%

CPS 2015-C [Member]

"Securitization trust debt," and components of debt

Final Scheduled Payment Date

^[2]

December 2022

Receivables Pledged at end of period

^[1]

$ 92,123

Initial Principal

300,000

Outstanding Principal

$ 90,639

141,362

Weighted Average Contractual Interest Rate

4.89%

CPS 2016-A [Member]

"Securitization trust debt," and components of debt

Final Scheduled Payment Date

^[2]

March 2023

Receivables Pledged at end of period

^[1]

$ 121,404

Initial Principal

329,460

Outstanding Principal

$ 119,444

180,761

Weighted Average Contractual Interest Rate

5.18%

CPS 2016-B [Member]

"Securitization trust debt," and components of debt

Final Scheduled Payment Date

^[2]

June 2023

Receivables Pledged at end of period

^[1]

$ 139,696

Initial Principal

332,690

Outstanding Principal

$ 135,688

201,199

Weighted Average Contractual Interest Rate

5.40%

CPS 2016-C [Member]

"Securitization trust debt," and components of debt

Final Scheduled Payment Date

^[2]

September 2023

Receivables Pledged at end of period

^[1]

$ 139,406

Initial Principal

318,500

Outstanding Principal

$ 136,114

203,504

Weighted Average Contractual Interest Rate

5.12%

CPS 2016-D [Member]

"Securitization trust debt," and components of debt

Final Scheduled Payment Date

^[2]

April 2024

Receivables Pledged at end of period

^[1]

$ 107,009

Initial Principal

206,325

Outstanding Principal

$ 104,645

149,671

Weighted Average Contractual Interest Rate

3.84%

CPS 2017-A [Member]

"Securitization trust debt," and components of debt

Final Scheduled Payment Date

^[2]

April 2024

Receivables Pledged at end of period

^[1]

$ 115,991

Initial Principal

206,320

Outstanding Principal

$ 113,527

161,892

Weighted Average Contractual Interest Rate

4.00%

CPS 2017-B [Member]

"Securitization trust debt," and components of debt

Final Scheduled Payment Date

^[2]

December 2023

Receivables Pledged at end of period

^[1]

$ 140,953

Initial Principal

225,170

Outstanding Principal

$ 127,726

186,594

Weighted Average Contractual Interest Rate

3.43%

CPS 2017-C [Member]

"Securitization trust debt," and components of debt

Final Scheduled Payment Date

^[2]

September 2024

Receivables Pledged at end of period

^[1]

$ 142,106

Initial Principal

224,825

Outstanding Principal

$ 131,845

197,155

Weighted Average Contractual Interest Rate

3.35%

CPS 2017-D [Member]

"Securitization trust debt," and components of debt

Final Scheduled Payment Date

^[2]

June 2024

Receivables Pledged at end of period

^[1]

$ 142,370

Initial Principal

196,300

Outstanding Principal

$ 132,919

189,277

Weighted Average Contractual Interest Rate

3.11%

CPS 2018-A [Member]

"Securitization trust debt," and components of debt

Final Scheduled Payment Date

^[2]

March 2025

Receivables Pledged at end of period

^[1]

$ 151,620

Initial Principal

190,000

Outstanding Principal

$ 142,643

Weighted Average Contractual Interest Rate

3.13%

CPS 2018-B [Member]

"Securitization trust debt," and components of debt

Final Scheduled Payment Date

^[2]

December 2024

Receivables Pledged at end of period

^[1]

$ 175,363

Initial Principal

201,823

Outstanding Principal

$ 167,809

Weighted Average Contractual Interest Rate

3.58%

CPS 2018-C [Member]

"Securitization trust debt," and components of debt

Final Scheduled Payment Date

^[2]

September 2025

Receivables Pledged at end of period

^[1]

$ 214,617

Initial Principal

230,275

Outstanding Principal

$ 204,418

Weighted Average Contractual Interest Rate

3.65%

CPS 2018-D [Member]

"Securitization trust debt," and components of debt

Final Scheduled Payment Date

^[2]

June 2025

Receivables Pledged at end of period

^[1]

$ 236,410

Initial Principal

233,730

Outstanding Principal

$ 224,189

$ 0

Weighted Average Contractual Interest Rate

3.74%

[1]

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

[2]

5. Securitization Trust Debt (Details Narrative) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Expected finance receivable payments 2019	$ 780,000
Expected finance receivable payments 2020	587,500
Expected finance receivable payments 2021	378,800
Expected finance receivable payments 2022	194,600
Expected finance receivable payments 2023	116,000
Expected finance receivable payments 2024	68,000
Securitization Trust Debt [Member]
Debt issuance costs	$ 11,800	$ 12,500

6. Debt (Details - Debt outstanding) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Warehouse lines of credit	$ 136,847	$ 112,408
Residual interest financing	39,106	0
Subordinated renewable notes	17,290	16,566
Total debt outstanding	195,373	130,841
Warehouse Lines Of Credit [Member]
Warehouse lines of credit	$ 38,198	25,629
Interest rate	5.50% over one month Libor (Minimum 6.50%)
Maturity date	February 2021
Warehouse Lines Of Credit (2) [Member]
Warehouse lines of credit	$ 99,885	77,546
Interest rate	3.00% over one month Libor (Minimum 3.75%)
Maturity date	September 2020
Warehouse Lines Of Credit (3) [Member]
Warehouse lines of credit	$ 0	11,100
Interest rate	6.75% over a commercial paper rate (Minimum 7.75%)
Maturity date	November 2019
ResidualInterestFinancing [Member]
Residual interest financing	$ 40,000	0
Interest rate	8.60%
Maturity date	January 2026
Subordinated Renewable Notes [Member]
Subordinated renewable notes	$ 17,290	$ 16,566
Interest rate	Weighted average rate of 8.53% and 7.99% at December 31, 2018 and December 31, 2017, respectively
Maturity date	Weighted average maturity of January 2021 and March 2020 at December 31, 2018 and December 31, 2017, respectively

6. Debt (Details - Debt maturity schedule) - Subordinated Renewable Notes [Member] $ in Thousands	Dec. 31, 2018 USD ($)
2019	$ 8,561
2020	2,788
2021	3,607
2022	404
2023	366
Thereafter	1,564
Total	$ 17,290

6. Debt (Details Narrative) - USD ($) $ in Thousands	Nov. 24, 2015	Apr. 17, 2015	May 11, 2012	Dec. 31, 2018	Dec. 31, 2017
Debt issuance costs				$ 1,200	$ 1,900
Warehouse lines of credit				136,847	112,408
Unamortized debt issuance costs				894
Warehouse Credit Facility [Member] \| Citibank [Member]
Credit line maximum			$ 100,000
Warehouse lines of credit				99,900
Credit line maturity date			Sep. 30, 2021
Warehouse Credit Facility [Member] \| Fortress Investment Group [Member]
Credit line maximum		$ 100,000
Warehouse lines of credit				38,200
Credit line maturity date		Feb. 28, 2023
Warehouse Credit Facility [Member] \| Credit Suisse AG and Ares Agent Services [Member]
Credit line maximum	$ 100,000
Warehouse lines of credit				0
Credit line maturity date	Nov. 30, 2019
Three Warehouse Lines Of Credit [Member]
Warehouse lines of credit				$ 138,100	$ 114,300

7. Shareholders' Equity (Details - Stock purchases) - $ / shares	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Number of Shares
Open market purchases	1,258,797	2,693,562
Shares redeemed upon net exercise of stock options	33,604	51,931
Other	90,000	0
Total stock purchases	1,382,401	2,745,493
Average Price
Open market purchases	$ 3.77	$ 4.48
Shares redeemed upon net exercise of stock options	4.37	4.50
Other	4.13	0.00
Total stock purchases	$ 3.81	$ 4.49

7. Shareholders' Equity (Details - Assumptions)	12 Months Ended
7. Shareholders' Equity (Details - Assumptions)	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Equity [Abstract]
Expected life (years)	3 years 11 months 26 days	4 years 7 days	4 years 15 days
Risk-free interest rate	2.74%	1.59%	1.09%
Volatility	34.00%	36.00%	51.00%
Expected dividend yield	0.00%	0.00%	0.00%

7. Shareholders' Equity (Details - Option activity) shares in Thousands	12 Months Ended
	Dec. 31, 2018 $ / shares shares
Number of Shares
Options outstanding at the beginning of period \| shares	13,135
Granted \| shares	1,720
Exercised \| shares	(315)
Forfeited/Expired \| shares	(119)
Options outstanding at the end of period \| shares	14,421
Options exercisable at the end of period \| shares	8,789
Weighted Average Exercise Price
Options outstanding at the beginning of period \| $ / shares	$ 4.66
Granted \| $ / shares	3.49
Exercised \| $ / shares	1.53
Forfeited/Expired \| $ / shares	7.2
Options outstanding at the end of period \| $ / shares	4.57
Options exercisable at the end of period \| $ / shares	$ 4.76
Weighted Average Remaining Contractual Term
Weighted average remaining contractual term, end of period	3 years 10 months 28 days
Weighted average remaining contractual term, exercisable at the end of period	3 years 5 months 1 day

7. Shareholders' Equity (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Repurchase of common stock, value	$ (5,307)	$ (12,346)	$ (10,468)
Weighted average exercise price of stock options granted	$ 1.06	$ 1.32	$ 1.38
Voliatility assumptions, minimum	31.00%	35.00%	44.00%
Voliatility assumptions, maximum	34.00%	37.00%	51.00%
Stock-based compensation	$ 3,515	$ 5,715	$ 5,553
Unrecognized stock-based compensation costs	$ 3,600
Weighted-average period for unrecognized costs	2 years 1 month 6 days
Intrinsic value options outstanding	$ 4,900	10,400
Intrinsic value of options exercisable	4,900	9,500
Intrinsic value of options exercised	869	$ 1,900
Proceeds from options exercised	483
Tax benefit from options exercised	$ 178
Warrants outstanding	2,000,000
Common Stock [Member]
Repurchase of common stock, shares	1,382,401
Average price per share of common stock repurchased (in dollars per share)	$ 3.81
No expiration [Member] \| Common Stock [Member]
Amount remaining of stock repurchase authorized amount	$ 7,500
2006 Plan [Member]
Shares available for grant	2,873,000

8. Interest Income and Interest Expense (Details - Interest income) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Components of interest income
Interest on finance receivables	$ 334,634	$ 423,567	$ 408,723
Interest on finance receivables at fair value	43,863	0	0
Other interest income	1,800	607	273
Interest income	$ 380,297	$ 424,174	$ 408,996

8. Interest Income and Interest Expense (Details - Interest expense) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Total interest expense	$ 101,466	$ 92,345	$ 79,941
Securitization Trust Debt [Member]
Total interest expense	89,926	83,084	69,178
Warehouse Lines Of Credit [Member]
Total interest expense	7,752	7,933	8,569
Residual interest financing [Member]
Total interest expense	2,343	0	846
Subordinated Renewable Notes [Member]
Total interest expense	$ 1,445	$ 1,328	$ 1,348

9. Income Taxes (Details - Income tax expense) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Income Tax Disclosure [Abstract]
Current federal tax expense	$ (7,526)	$ 14,369	$ 22,872
Current state tax expense	(2,064)	3,305	2,671
Deferred federal tax expense	9,074	10,131	(6,329)
Deferred state tax expense (benefit)	4,357	501	1,147
Income tax expense	$ 3,841	$ 28,306	$ 20,361

9. Income Taxes (Details - Tax rate effect) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Income Tax Disclosure [Abstract]
Expense at federal tax rate	$ 3,928	$ 11,225	$ 17,381
State taxes, net of federal income tax effect	1,718	1,831	2,679
Stock-based compensation	238	682	824
Non-deductible expenses	824	171	145
Effect of change in tax rate	0	15,117	0
Accounting method change	(2,100)	0	0
Other	(767)	(720)	(668)
Income tax expense	$ 3,841	$ 28,306	$ 20,361

9. Income Taxes (Details - Deferred taxes) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Deferred Tax Assets:
Finance receivables	$ 1,867	$ 23,034
Accrued liabilities	256	206
NOL carryforwards	7,736	529
Built in losses	4,651	5,277
Pension accrual	1,552	1,654
Stock compensation	4,161	3,642
Other	356	582
Total deferred tax assets	20,579	34,924
Deferred Tax Liabilities:
Deferred loan costs	(1,137)	(2,233)
Furniture and Equipment	(254)	(245)
Total deferred tax liabilities	(1,391)	(2,478)
Net deferred tax asset	$ 19,188	$ 32,446

9. Income Taxes (Details Narrative) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Net deferred tax asset	$ 19,200
Unrecognized tax benefits	0
Income tax expense	3,841	$ 28,306	$ 20,361
Operating Income (Loss) [Member]
Net deferred tax asset	12,400
Federal [Member]
Net deferred tax asset	13,900
State [Member]
Net deferred tax asset	5,300
Net operating loss carryforwards	$ 35,700
Net operating losses expire	Dec. 31, 2019

11. Commitments and Contingencies (Details) $ in Thousands	Dec. 31, 2018 USD ($)
Commitments and Contingencies Disclosure [Abstract]
2019	$ 7,684
2020	7,588
2021	7,476
2022	6,116
2023	1,389
Thereafter	689
Total minimum lease payments	$ 30,942

12. Employee Benefits (Details - Reconciliation) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Change in Projected Benefit Obligation
Projected benefit obligation, beginning of year	$ 22,562	$ 21,515
Service cost	0	0
Interest cost	775	855	$ 882
Assumption changes	(1,867)	1,535
Actuarial (gain) loss	(361)	(298)
Settlements	0	0
Benefits paid	(1,024)	(1,045)
Projected benefit obligation, end of year	20,085	22,562	21,515
Change in Plan Assets
Fair value of plan assets, beginning of year	16,446	16,243
Return on assets	(1,806)	1,508
Employer contribution	1,000	0
Expenses	(248)	(260)
Settlements	0	0
Benefits paid	(1,024)	(1,045)
Fair value of plan assets, end of year	14,368	16,446	$ 16,243
Funded Status at end of year	$ (5,717)	$ (6,116)

12. Employee Benefits (Details - Weighted average assumptions)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Weighted average assumptions used to determine benefit obligations
Discount rate	4.11%	3.50%
Weighted average assumptions used to determine net periodic benefit cost
Discount rate	3.50%	4.05%
Expected return on plan assets	7.25%	7.25%

12. Employee Benefits (Details - Amounts recognized) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Amounts recognized on Consolidated Balance Sheet
Other assets	$ 0	$ 0	$ 0
Other liabilities	(5,717)	(6,116)	(5,272)
Net amount recognized	(5,717)	(6,116)	(5,272)
Amounts recognized in accumulated other comprehensive loss consists of:
Net loss	11,896	11,350	10,618
Unrecognized transition asset	0	0	0
Net amount recognized	11,896	11,350	10,618
Components of net periodic benefit cost
Interest Cost	775	855	882
Expected return on assets	(1,163)	(1,149)	(1,199)
Amortization of transition asset	0	0	0
Amortization of net loss	443	405	553
Net periodic benefit cost	55	111	236
Settlement (gain)/loss	0	0	0
Total	55	111	236
Benefit Obligation Recognized in Other Comprehensive Loss (Income)
Net loss (gain)	545	732	25
Prior service cost (credit)	0	0	0
Amortization of prior service cost	0	0	0
Net amount recognized in other comprehensive loss (income)	$ 545	$ 732	$ 25

12. Employee Benefits (Details - Estimated future benefit payments) $ in Thousands	Dec. 31, 2018 USD ($)
Estimated Future Benefit Payments (In thousands)
2019	$ 829
2020	873
2021	911
2022	947
2023	976
Years 2024-2028	5,507
Anticipated Contributions in 2019	$ 0

12. Employee Benefits (Details - Fair value of plan assets) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Fair value of plan assets	$ 14,368	$ 16,446	$ 16,243
Level 1 [Member]
Fair value of plan assets	2,635	3,633
Level 2 [Member]
Fair value of plan assets	11,733	12,813
Level 3 [Member]
Fair value of plan assets	0	0
Company Common Stock [Member]
Fair value of plan assets	2,635	3,633
Company Common Stock [Member] \| Level 1 [Member]
Fair value of plan assets	2,635	3,633
Company Common Stock [Member] \| Level 2 [Member]
Fair value of plan assets	0	0
Company Common Stock [Member] \| Level 3 [Member]
Fair value of plan assets	0	0
Large Cap Value [Member]
Fair value of plan assets	1,983	2,324
Large Cap Value [Member] \| Level 1 [Member]
Fair value of plan assets	0	0
Large Cap Value [Member] \| Level 2 [Member]
Fair value of plan assets	1,983	2,324
Large Cap Value [Member] \| Level 3 [Member]
Fair value of plan assets	0	0
Mid Cap Index [Member]
Fair value of plan assets	563	654
Mid Cap Index [Member] \| Level 1 [Member]
Fair value of plan assets	0	0
Mid Cap Index [Member] \| Level 2 [Member]
Fair value of plan assets	563	654
Mid Cap Index [Member] \| Level 3 [Member]
Fair value of plan assets	0	0
Small Cap Growth [Member]
Fair value of plan assets	559	657
Small Cap Growth [Member] \| Level 1 [Member]
Fair value of plan assets	0	0
Small Cap Growth [Member] \| Level 2 [Member]
Fair value of plan assets	559	657
Small Cap Growth [Member] \| Level 3 [Member]
Fair value of plan assets	0	0
Small Cap Value [Member]
Fair value of plan assets	558	647
Small Cap Value [Member] \| Level 1 [Member]
Fair value of plan assets	0	0
Small Cap Value [Member] \| Level 2 [Member]
Fair value of plan assets	558	647
Small Cap Value [Member] \| Level 3 [Member]
Fair value of plan assets	0	0
Large Cap Blend [Member]
Fair value of plan assets	587	661
Large Cap Blend [Member] \| Level 1 [Member]
Fair value of plan assets	0	0
Large Cap Blend [Member] \| Level 2 [Member]
Fair value of plan assets	587	661
Large Cap Blend [Member] \| Level 3 [Member]
Fair value of plan assets	0	0
Growth [Member]
Fair value of plan assets	2,031	2,313
Growth [Member] \| Level 1 [Member]
Fair value of plan assets	0	0
Growth [Member] \| Level 2 [Member]
Fair value of plan assets	2,031	2,313
Growth [Member] \| Level 3 [Member]
Fair value of plan assets	0	0
International Growth [Member]
Fair value of plan assets	2,301	2,683
International Growth [Member] \| Level 1 [Member]
Fair value of plan assets	0	0
International Growth [Member] \| Level 2 [Member]
Fair value of plan assets	2,301	2,683
International Growth [Member] \| Level 3 [Member]
Fair value of plan assets	0	0
Core Bond [Member]
Fair value of plan assets	1,921	1,870
Core Bond [Member] \| Level 1 [Member]
Fair value of plan assets	0	0
Core Bond [Member] \| Level 2 [Member]
Fair value of plan assets	1,921	1,870
Core Bond [Member] \| Level 3 [Member]
Fair value of plan assets	0	0
High Yield [Member]
Fair value of plan assets	364	373
High Yield [Member] \| Level 1 [Member]
Fair value of plan assets	0	0
High Yield [Member] \| Level 2 [Member]
Fair value of plan assets	364	373
High Yield [Member] \| Level 3 [Member]
Fair value of plan assets	0	0
Inflation Protected Bond [Member]
Fair value of plan assets	510	505
Inflation Protected Bond [Member] \| Level 1 [Member]
Fair value of plan assets	0	0
Inflation Protected Bond [Member] \| Level 2 [Member]
Fair value of plan assets	510	505
Inflation Protected Bond [Member] \| Level 3 [Member]
Fair value of plan assets	0	0
Money Market [Member]
Fair value of plan assets	356	126
Money Market [Member] \| Level 1 [Member]
Fair value of plan assets	0	0
Money Market [Member] \| Level 2 [Member]
Fair value of plan assets	356	126
Money Market [Member] \| Level 3 [Member]
Fair value of plan assets	$ 0	$ 0

12. Employee Benefits (Details Narrative) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Employee Benefits Details Narrative
401(k) plan contributions	$ 1,500	$ 1,200	$ 929
Expected long term rate of return	7.25%	7.25%
Estimated net loss amortized into net periodic benefit cost	$ 376

13. Fair Value Measurements (Details - Reconciliation of Finance Receivables) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Fair Value Disclosures [Abstract]
Balance at beginning of period	$ 0	$ 0
Finance receivables at fair value acquired during period	914,949	0	$ 0
Payments received on finance receivables at fair value	(67,720)	0
Net interest income accretion on fair value receivables	(26,163)	0
Mark to fair value	0	0
Balance at end of period	$ 821,066	$ 0	$ 0

13. Fair Value Measurements (Details - Finance Receivables to Their Contractual Balances) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Finance receivables measured at fair value	$ 821,066	$ 0	$ 0
Fair Value [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Finance receivables measured at fair value	821,066	0
Contractual Balance [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Finance receivables measured at fair value	$ 829,039	$ 0

13. Fair Value Measurements (Details - Level 3 Fair Value Measurements) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Finance receivables measured at fair value	$ 821,066	$ 0	$ 0
Fair Value [Member]
Finance receivables measured at fair value	821,066	0
Fair Value [Member] \| Level 3 [Member]
Finance receivables measured at fair value	$ 821,066	$ 0
Fair Value [Member] \| Level 3 [Member] \| Discount Rate [Member] \| Minimum [Member]
Unobservable Inputs, Inputs as of	8.90%
Fair Value [Member] \| Level 3 [Member] \| Discount Rate [Member] \| MaximumMember
Unobservable Inputs, Inputs as of	9.90%
Fair Value [Member] \| Level 3 [Member] \| Cumulative Net Losses [Member] \| Minimum [Member]
Unobservable Inputs, Inputs as of	15.00%
Fair Value [Member] \| Level 3 [Member] \| Cumulative Net Losses [Member] \| MaximumMember
Unobservable Inputs, Inputs as of	16.00%

13. Fair Value Measurements (Details - Fair values) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Assets:
Cash and cash equivalents	$ 12,787	$ 12,731
Restricted cash and equivalents	117,323	111,965
Finance receivables, net	1,434,631	2,171,846
Accrued interest receivable	31,969	46,753
Liabilities:
Warehouse lines of credit	136,847	112,408
Accrued interest payable	4,819	4,212
Securitization trust debt	2,051,920	2,089,678
Subordinated renewable notes	17,290	16,566
Level 1 [Member]
Assets:
Cash and cash equivalents	12,787	12,731
Restricted cash and equivalents	117,323	111,965
Finance receivables, net	0	0
Accrued interest receivable	0	0
Liabilities:
Warehouse lines of credit	0	0
Accrued interest payable	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
Accrued interest receivable	0	0
Liabilities:
Warehouse lines of credit	0	0
Accrued interest payable	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	1,434,631	2,171,846
Accrued interest receivable	31,969	46,753
Liabilities:
Warehouse lines of credit	136,847	112,408
Accrued interest payable	4,819	4,212
Securitization trust debt	2,051,920	2,089,678
Subordinated renewable notes	17,290	16,566
Carrying Value [Member]
Assets:
Cash and cash equivalents	12,787	12,731
Restricted cash and equivalents	117,323	111,965
Finance receivables, net	1,454,709	2,195,797
Accrued interest receivable	31,969	46,753
Liabilities:
Warehouse lines of credit	136,847	112,408
Accrued interest payable	4,819	4,212
Securitization trust debt	2,063,627	2,083,215
Subordinated renewable notes	$ 17,290	$ 16,566

13. Fair Value Measurements (Details Narrative) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Fair Value Measurements Details Narrative
Finance receivables related to reposessed vehicles in inventory	$ 33,462	$ 33,679
Valuation adjustment, loss allowance	$ 24,564	24,024
Recovery rate	27.00%
Estimated fair value and carrying amount of repossed inventory	$ 8,898	$ 9,655

14. Subsequent Events (Details Narrative) - Subsequent Event [Member] - Asset-backed Securities [Member] - USD ($) $ in Thousands	1 Months Ended
	Feb. 13, 2019	Jan. 23, 2019
Asset-backed notes sold		$ 255,400
Asset-backed notes secured by automobile receivables		$ 265,000
Weighted average yield on notes		4.22%
Receivables sold	$ 98,900	$ 166,100

4. Furniture and Equipment (Details Narrative) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Property, Plant and Equipment [Abstract]
Depreciation expense	$ 992	$ 934	$ 777

10. Related Party Transactions (Details Narrative) $ in Thousands	Dec. 31, 2018 USD ($)
Related Party Transactions [Abstract]
Related party amounts outstanding	$ 4,000

12. Employee Benefits (Details - Asset allocation)	Dec. 31, 2018	Dec. 31, 2017
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%	0.00%
Equity Securities [Member]
Weighted Average Asset Allocation at Year-End	78.00%	83.00%
Debt Securities [Member]
Weighted Average Asset Allocation at Year-End	22.00%	17.00%

13. Fair Value Measurements (Details - Delinquency status) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Finance receivables measured at fair value current	$ 790,727	$ 0
Finance receivables measured at fair value	829,039	0
31 to 60 Days [Member]
Finance receivables measured at fair value	26,285	0
61 to 90 Days [Member]
Finance receivables measured at fair value	8,350	0
91 + Days [Member]
Finance receivables measured at fair value	$ 3,677	$ 0