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Document and Entity Information - USD ($)	12 Months Ended
Document and Entity Information - USD ($)	Dec. 31, 2019	Mar. 10, 2020	Jun. 30, 2019
Cover [Abstract]
Entity Registrant Name	CONSUMER PORTFOLIO SERVICES INC
Entity Central Index Key	0000889609
Document Type	10-K
Document Period End Date	Dec. 31, 2019
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity File Number	1-14116
Entity a Well-known Seasoned Issuer	No
Entity a Voluntary Filer	No
Entity's Reporting Status Current	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Emerging Growth Company	false
Entity Small Business	true
Entity Shell Company	false
Entity Incorporation, State or Country Code	CA
Entity Public Float			$ 61,511,026
Entity Common Stock, Shares Outstanding		22,558,918
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2019

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
ASSETS
Cash and cash equivalents	$ 5,295	$ 12,787
Restricted cash and equivalents	135,537	117,323
Finance receivables	897,530	1,522,085
Less: Allowance for finance credit losses	(11,640)	(67,376)
Finance receivables, net	885,890	1,454,709
Finance receivables measured at fair value	1,444,038	821,066
Furniture and equipment, net	1,512	1,837
Deferred tax assets, net	15,480	19,188
Accrued interest receivable	11,645	31,969
Other assets	39,852	26,801
Total	2,539,249	2,485,680
Liabilities
Accounts payable and accrued expenses	47,077	31,692
Warehouse lines of credit	134,791	136,847
Residual interest financing	39,478	39,106
Securitization trust debt	2,097,728	2,063,627
Subordinated renewable notes	17,534	17,290
Total	2,336,608	2,288,562
COMMITMENTS AND CONTINGENCIES	0	0
Shareholders' Equity
Common stock, no par value; authorized 75,000,000 shares; 22,530,918 and 22,421,688 shares issued and outstanding at December 31, 2019 and December 31, 2018, respectively	71,257	70,273
Retained earnings	139,805	134,399
Accumulated other comprehensive loss	(8,421)	(7,554)
Total stockholders' equity	202,641	197,118
Total liabilities and stockholders' equity	2,539,249	2,485,680
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, 2019	Dec. 31, 2018
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	22,530,918	22,421,688
Common stock, outstanding	22,530,918	22,421,688
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, 2019	Dec. 31, 2018	Dec. 31, 2017
Revenues:
Interest income	$ 337,096	$ 380,297	$ 424,174
Other income	8,704	9,478	10,209
Total revenues	345,800	389,775	434,383
Expenses:
Employee costs	80,877	79,318	72,967
General and administrative	33,004	31,037	26,578
Interest	110,528	101,466	92,345
Provision for credit losses	85,773	133,080	186,713
Sales	17,893	17,572	15,613
Occupancy	7,487	7,607	7,162
Depreciation and amortization	1,076	992	934
Total operating expenses	336,638	371,072	402,312
Income before income tax expense	9,162	18,703	32,071
Income tax expense	3,756	3,841	28,306
Net income	$ 5,406	$ 14,862	$ 3,765
Earnings per share:
Basic (in dollars per share)	$ 0.24	$ 0.68	$ 0.17
Diluted (in dollars per share)	$ 0.22	$ 0.59	$ 0.14
Number of shares used in computing earnings per share:
Basic (in shares)	22,416	21,989	22,687
Diluted (in shares)	24,064	24,988	27,214

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Statement of Comprehensive Income [Abstract]
Net income	$ 5,406	$ 14,862	$ 3,765
Other comprehensive income (loss); change in funded status of pension plan, net of $508, $173 and $232 in tax for 2019, 2018 and 2017, respectively	(867)	(372)	(500)
Comprehensive income	$ 4,539	$ 14,490	$ 3,265

- 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 COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Statement of Comprehensive Income [Abstract]
Amount of tax expense (benefit) for (increase) decrease in value of benefit obligation	$ 508	$ 173	$ 232

CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY - USD ($) shares in Thousands, $ in Thousands	Common Stock [Member]	Retained Earnings	Accumulated Other Comprehensive Loss	Total
Balance at beginning at Dec. 31, 2016	$ 77,128	$ 115,772	$ (6,682)	$ 186,218
Balance at beginning (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
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Common stock issued upon exercise of options and warrants	$ 352			352
Common stock issued upon exercise of options and warrants (in shares)	488
Repurchase of common stock	$ (1,440)			(1,440)
Repurchase of common stock (in shares)	(379)
Pension benefit obligation			(867)	(867)
Stock-based compensation	2,072			2,072
Net income		5,406		5,406
Balance at end at Dec. 31, 2019	$ 71,257	$ 139,805	$ (8,421)	$ 202,641
Balance at end (in shares) at Dec. 31, 2019	22,531

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Cash flows from operating activities:
Net income	$ 5,406	$ 14,862	$ 3,765
Adjustments to reconcile net income to net cash provided by operating activities:
Accretion of deferred acquisition fees and origination costs	1,757	2,655	1,305
Net interest income accretion on fair value receivables	90,383	26,162	0
Depreciation and amortization	1,076	992	934
Amortization of deferred financing costs	8,281	8,453	8,738
Mark to fair value of finance receivables measured at fair value	(2,109)	0	0
Provision for credit losses	85,773	133,080	186,713
Stock-based compensation expense	2,072	3,515	5,715
Changes in assets and liabilities:
Accrued interest receivable	20,324	14,784	(10,520)
Other assets	7,464	(4,161)	5,361
Deferred tax assets, net	3,708	13,258	10,399
Accounts payable and accrued expenses	(7,351)	2,605	3,238
Net cash provided by operating activities	216,784	216,205	215,648
Cash flows from investing activities:
Originations of finance receivables held for investment	0	0	(859,069)
Payments received on finance receivables held for investment	481,289	605,353	647,619
Purchases of finance receivables measured at fair value	(1,004,194)	(914,949)	0
Payments on receivables portfolio at fair value	292,948	67,721	4
Change in repossessions held in inventory	1,354	757	1,490
Purchase of furniture and equipment	(751)	(1,077)	(669)
Net cash used in investing activities	(229,354)	(242,195)	(210,625)
Cash flows from financing activities:
Proceeds from issuance of securitization trust debt	1,000,501	855,828	852,615
Proceeds from issuance of subordinated renewable notes	5,764	3,175	4,083
Payments on subordinated renewable notes	(5,520)	(2,451)	(2,466)
Net proceeds from (repayments of) warehouse lines of credit	(1,300)	23,809	9,309
Net advances of residual interest financing debt	0	40,000	0
Repayment of securitization trust debt	(966,144)	(876,094)	(851,193)
Payment of financing costs	(8,921)	(8,039)	(8,104)
Repurchase of common stock	(1,440)	(5,307)	(12,346)
Exercise of options and warrants	352	483	1,085
Net cash provided by (used in) financing activities	23,292	31,404	(7,017)
Increase (decrease) in cash and cash equivalents	10,722	5,414	(1,994)
Cash and cash equivalents at beginning of year	130,110	124,696	126,690
Cash and cash equivalents at end of year	140,832	130,110	124,696
Cash paid (received) during the period for:
Interest	101,812	92,405	83,110
Income taxes	(5,156)	417	9,319
Non-cash financing activities:
Right-of-use asset, net	(21,869)	0	0
Lease liability	23,327	0	0
Deferred office rent	$ (1,458)	$ 0	$ 0

1. Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2019

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 California, Ohio, Indiana, North Carolina, Florida and represented 12.6%, 10.8%, 6.3%, 5.4% and 4.9%, respectively, of contracts purchased during 2019 compared with 8.7%, 8.8%, 5.2%, 6.2% and 6.0% respectively in 2018. No other state had a concentration in excess of 4.9% in 2019. 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, 2019, our unrestricted cash balance was $5.3 million, which exceeded the minimum amounts required by our financial covenants.

Finance Receivables

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

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

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. In the three-month period ended December 31, 2019, the net present value of the forecasted cash flows for the receivables acquired in the first and second quarter of 2018 exceeded the carrying value of that pool by $2.1 million, which we have recorded as a mark to market value of that pool of receivables.

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 $7.5 million and $8.9 million at December 31, 2019 and 2018, 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,
	2019		2018		2017
	(In thousands)
Direct mail revenues	$	4,659	$	5,829	$	6,432
Convenience fee revenue		2,440		1,700		1,900
Recoveries on previously charged-off contracts		158		248		563
Sales tax refunds		1,239		887		866
Other		208		814		448
Other income for the period	$	8,704	$	9,478	$	10,209

On 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.

Earnings Per Share

Earnings per share were calculated using the weighted average number of shares outstanding for the related period. The following table illustrates the computation of basic and diluted earnings per share:

	Year Ended December 31,
	2019		2018		2017
	(In thousands, except per share data)
Numerator:
Numerator for basic and diluted earnings per share	$	5,406	$	14,862	$	3,765
Denominator:
Denominator for basic earnings per share - weighted average number of common shares outstanding during the year		22,416		21,989		22,687
Incremental common shares attributable to exercise of outstanding options and warrants		1,648		2,999		4,527
Denominator for diluted earnings per share		24,064		24,988		27,214
Basic earnings per share	$	0.24	$	0.68	$	0.17
Diluted earnings per share	$	0.22	$	0.59	$	0.14

Incremental shares of 11.3 million, 10.3 million and 7.5 million related to stock options and warrants have been excluded from the diluted earnings per share calculation for the years ended December 31, 2019, 2018 and 2017, 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, 2019 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, 2019, 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 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. ASU 2016-13 was initially scheduled to become effective for interim and annual reporting periods beginning after December 15, 2019, however on October 16, 2019, the FASB changed the effective date for smaller reporting companies to interim and annual reporting periods beginning after December 15, 2022. Early adoption would still be permitted for interim and annual reporting periods beginning after December 15, 2019. The Company is currently evaluating whether to early adopt the provisions of ASU 2016-13, however, it is expected that the new CECL model will alter the assumptions used in calculating the Company's credit losses for receivables acquired prior to 2018, 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. Effective January 1, 2019, the Company adopted guidance Accounting Standards Update (“ASU 2016-02”) Topic 842, “Leases” using the modified retrospective transition method. Prior comparable periods are presented accordance with previous guidance under Accounting Standards Codification (“ASC”) Topic 840, “Leases.” The Company also elected the package of practical expedients, ASU 2018-11. This election allowed the Company to not reassess if expired or existing contracts contain leases, to not reassess lease classifications for any expired or existing leases and to not reassess existing leases initial direct costs.

2. Restricted Cash

12 Months Ended

Dec. 31, 2019

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 $135.5 million and $117.3 million as of December 31, 2019 and 2018, 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 $54.8 million and $48.5 million as of December 31, 2019 and 2018, respectively.

3. Finance Receivables

12 Months Ended

Dec. 31, 2019

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,
	2019		2018
	(In thousands)
Finance receivables
Automobile finance receivables, net of unearned interest	$	895,566	$	1,518,395
Unearned acquisition fees, discounts and deferred origination costs, net		1,964		3,690
Finance receivable	$	897,530	$	1,522,085

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, 2019 and 2018:

	December 31,
	2019		2018
	(In thousands)
Delinquency Status
Current	$	698,870	$	1,262,730
31 - 60 days		107,951		157,688
61 - 90 days		57,395		66,134
91 + days		31,350		31,843
	$	895,566	$	1,518,395

Finance receivables totaling $31.4 million and $31.8 million at December 31, 2019 and 2018, 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.

The following table presents a summary of the activity for the allowance for finance credit losses, for the years ended December 31, 2019, 2018 and 2017:

	December 31,
	2019			2018			2017
				(In thousands)
Balance at beginning of year	$	67,376		$	109,187		$	95,578
Provision for credit losses		85,773			133,080			186,713
Charge-offs		(184,449	)		(220,523	)		(211,948	)
Recoveries		42,940			45,632			38,844
Balance at end of year	$	11,640		$	67,376		$	109,187

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,
	2019			2018
	(In thousands)
Gross balance of repossessions in inventory	$	28,933		$	33,462
Allowance for losses on repossessed inventory		(21,389	)		(24,564	)
Net repossessed inventory included in other assets	$	7,544		$	8,898

4. Furniture and Equipment

12 Months Ended

Dec. 31, 2019

Property, Plant and Equipment [Abstract]

Furniture and Equipment

(4) Furniture and Equipment

The following table presents the components of furniture and equipment:

	December 31,
	2019			2018
	(In thousands)
Furniture and fixtures	$	1,648		$	1,647
Computer and telephone equipment		6,803			6,203
Leasehold improvements		1,507			1,507
		9,958			9,357
Less: accumulated depreciation and amortization		(8,446	)		(7,520	)
	$	1,512		$	1,837

Depreciation expense totaled $1,076,000, $992,000 and $934,000 for the years ended December 31, 2019, 2018 and 2017, respectively.

5. Securitization Trust Debt

12 Months Ended

Dec. 31, 2019

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:

										Weighted
										Average
	Final	Receivables				Outstanding		Outstanding		Contractual
	Scheduled	Pledged at				Principal at		Principal at		Interest Rate at
	Payment	December 31,		Initial		December 31,		December 31,		December 31,
Series	Date (1)	2019 (2)		Principal		2019		2018		2019
	(Dollars in thousands)
CPS 2014-A	June 2021		–		180,000		–		15,328		–
CPS 2014-B	September 2021		–		202,500		–		24,051		–
CPS 2014-C	December 2021		–		273,000		19,758		40,896		5.24%
CPS 2014-D	March 2022		24,090		267,500		23,755		46,489		5.53%
CPS 2015-A	June 2022		28,533		245,000		26,713		52,448		5.31%
CPS 2015-B	September 2022		35,509		250,000		36,338		64,591		5.10%
CPS 2015-C	December 2022		52,624		300,000		53,579		90,639		5.77%
CPS 2016-A	March 2023		69,830		329,460		71,599		119,444		6.10%
CPS 2016-B	June 2023		84,403		332,690		82,667		135,688		6.40%
CPS 2016-C	September 2023		85,473		318,500		83,696		136,114		6.42%
CPS 2016-D	April 2024		66,807		206,325		65,021		104,645		4.74%
CPS 2017-A	April 2024		73,549		206,320		71,450		113,527		4.81%
CPS 2017-B	December 2023		89,706		225,170		76,201		127,726		4.14%
CPS 2017-C	September 2024		91,672		224,825		80,315		131,845		4.08%
CPS 2017-D	June 2024		93,992		196,300		83,801		132,919		3.70%
CPS 2018-A	March 2025		100,639		190,000		91,258		142,643		3.61%
CPS 2018-B	December 2024		118,234		201,823		111,188		167,809		4.01%
CPS 2018-C	September 2025		140,405		230,275		130,064		204,418		4.09%
CPS 2018-D	June 2025		164,200		233,730		149,470		224,189		4.08%
CPS 2019-A	March 2026		202,830		254,400		186,900		–		3.95%
CPS 2019-B	June 2026		193,284		228,275		184,308		–		3.58%
CPS 2019-C	December 2026		223,764		243,513		216,650		–		3.02%
CPS 2019-D	March 2027		267,750		274,313		265,035		–		2.60%
		$	2,207,294	$	5,613,919	$	2,109,766	$	2,075,409

_________________________

(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 $806.7 million in 2020, $583.8 million in 2021, $358.1 million in 2022, $261.8 million in 2023, $57.5 million in 2024, and $29.9 million in 2025.

(2)

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

Debt issuance costs of $12.0 million and $11.8 million as of December 31, 2019 and December 31, 2018, 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, 2019.

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, 2019, restricted cash under the various agreements totaled approximately $135.5 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, 2019

Debt Disclosure [Abstract]

Debt

(6) Debt

The terms of our debt outstanding at December 31, 2019 and 2018 are summarized below:

			December 31,		December 31,
			2019		2018
			(In thousands)
Description	Interest Rate	Maturity

Warehouse lines of credit	5.50% over one month Libor (Minimum 6.50%)	February 2021	$	40,558	$	38,198

	3.00% over one month Libor (Minimum 3.75%)	September 2020		96,225		99,885

	4.00% over a commercial paper rate (Minimum 5.00%)	December 2021		–		–

Residual interest financing	8.60%	January 2026		40,000		40,000

Subordinated renewable notes	Weighted average rate of 9.75% and 8.53% at December 31, 2019 and December 31, 2018, respectively	Weighted average maturity of April 2022 and January 2021 at December 31, 2019 and December 31, 2018, respectively		17,534		17,290

			$	194,317	$	195,373

Debt issuance costs of $2.0 million and $1.2 million as of December 31, 2019 and December 31, 2018, 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, 2019 there was $96.2 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 February 2019, this facility was amended to extend the revolving period to February 2021 followed by an amortization period through February 2023 for any receivables pledged to the facility at the end of the revolving period. At December 31, 2019 there was $40.6 million outstanding under this facility.

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. The loans under the facility accrue interest at a commercial paper rate plus 4.00% per annum, with a minimum rate of 5.00% per annum. In December 2019, this facility was amended to extend the revolving period to December 2021 followed by an amortization period through December 2023 for any receivables pledged to the facility at the end of the revolving period. At December 31, 2019 there was no amount outstanding under this facility.

The total outstanding debt on our three warehouse lines of credit was $136.8 million as of December 31, 2019, compared to $138.1 million outstanding as of December 31, 2018.

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 $522,000 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, 2019:

	Subordinated
Contractual maturity	renewable
date	notes
	(In thousands)
2020	$	6,006
2021		4,316
2022		2,591
2023		2,121
2024		825
Thereafter		1,675
Total	$	17,534

7. Shareholders' Equity

12 Months Ended

Dec. 31, 2019

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, 2019, we purchased 378,470 shares of our common stock at an average price of $3.97. In October 2017 our board of directors authorized the repurchase of up to $10 million of our common stock. There is approximately $6.1 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, 2019 and 2018:

	Twelve Months Ended
	December 31, 2019				December 31, 2018

	Shares		Avg. Price		Shares		Avg. Price
Open market purchases		335,546	$	3.95		1,258,797	$	3.77
Shares redeemed upon net exercise of stock options		18,424		3.76		33,604		4.37
Other		24,500		4.20		90,000		4.13
Total stock purchases		378,470	$	3.97		1,382,401	$	3.81

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, 2019, 2018 and 2017 was $1.11, $1.06 and $1.32, 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 37% to 39% for 2019, 31% to 34% for 2018, and 35% to 37% for 2017. 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,
	2019		2018		2017
Expected life (years)		4.02		3.99		4.02
Risk-free interest rate		1.53%		2.74%		1.59%
Volatility		37%		34%		36%
Expected dividend yield		–		–		–

For the years ended December 31, 2019, 2018 and 2017, we recorded stock-based compensation costs in the amount of $2.1 million, $3.5 million and $5.7 million, respectively. As of December 31, 2019, the unrecognized stock-based compensation costs to be recognized over future periods was equal to $3.1 million. This amount will be recognized as expense over a weighted-average period of 2.1 years.

At December 31, 2019 and 2018, options outstanding had intrinsic values of $4.8 million and $4.9 million, respectively. At December 31, 2019 and 2018, options exercisable had intrinsic values of $4.8 million and $4.9 million, respectively. The total intrinsic value of options exercised was $1.4 million and $869,000 for the years ended December 31, 2019 and 2018, respectively. New shares were issued for all options exercised during the year ended December 2019 and cash of $422,000 was received. At December 31, 2019, there were a total of 1,458,000 additional shares available for grant under the 2006 Plan.

Stock option activity for the year ended December 31, 2019 for stock options under the 2006 and 1997 plans is as follows:

	Number of Shares (in thousands)			Weighted Average Exercise Price		Weighted Average Remaining Contractual Term
Options outstanding at the beginning of period		14,421		$	4.57	N/A
Granted		1,490			3.53	N/A
Exercised		(488	)		0.86	N/A
Forfeited/Expired		(75	)		4.00	N/A
Options outstanding at the end of period		15,348		$	4.59	3.34 years

Options exercisable at the end of period		11,717		$	4.87	2.69 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, 2019, 2018 and 2017.

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, 2019

Warehouse lines of credit [Member]

Interest Income and Interest Expense

(8) Interest Income and Interest Expense

The following table presents the components of interest income:

	Year Ended December 31,
	2019		2018		2017
	(In thousands)
Interest on finance receivables	$	211,138	$	334,634	$	423,567
Interest on finance receivables at fair value		123,059		43,863		–
Other interest income		2,899		1,800		607
Interest income	$	337,096	$	380,297	$	424,174

The following table presents the components of interest expense:

	Year Ended December 31,
	2019		2018		2017
	(In thousands)
Securitization trust debt	$	96,870	$	89,926	$	83,084
Warehouse lines of credit		8,402		7,752		7,933
Residual interest financing		3,822		2,343		–
Subordinated renewable notes		1,434		1,445		1,328
Interest expense	$	110,528	$	101,466	$	92,345

9. Income Taxes

12 Months Ended

Dec. 31, 2019

Income Tax Disclosure [Abstract]

Income Taxes

(9) Income Taxes

Income taxes consist of the following:

	Year Ended December 31,
	2019			2018			2017
	(In thousands)
Current federal tax expense	$	(574	)	$	(7,526	)	$	14,369
Current state tax expense		105			(2,064	)		3,305
Deferred federal tax expense		2,759			9,074			10,131
Deferred state tax expense		1,466			4,357			501
Income tax expense	$	3,756		$	3,841		$	28,306

Income tax expense for the years ended December 31, 2019, 2018 and 2017 differs from the amount determined by applying the statutory federal rate to income before income taxes as follows:

	Year Ended December 31,
	2019			2018			2017
	(In thousands)
Expense at federal tax rate	$	1,924		$	3,928		$	11,225
State taxes, net of federal income tax effect		1,027			1,718			1,831
Stock-based compensation		169			238			682
Non-deductible expenses		856			824			171
Effect of change in tax rate		–			–			15,117
Accounting method change		–			(2,100	)		–
Other		(220	)		(767	)		(720	)
	$	3,756		$	3,841		$	28,306

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, 2019 and 2018 are as follows:

	December 31,
	2019			2018
	(In thousands)
Deferred Tax Assets:
Finance receivables	$	–		$	1,867
Accrued liabilities		307			256
NOL carryforwards		17,240			7,736
Built in losses		4,008			4,651
Pension accrual		1,927			1,552
Stock compensation		4,385			4,161
Lease liability		5,232			–
Other		164			356
Total deferred tax assets		33,263			20,579
					$
Deferred Tax Liabilities:		$
Finance receivables	$	(12,180	)	$	–
Deferred loan costs		(542	)		(1,137	)
Lease right-of-use assets		(4,855	)		–
Furniture and equipment		(206	)		(254	)
Total deferred tax liabilities		(17,783	)		(1,391	)
					$
Net deferred tax asset	$	15,480		$	19,188

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 $15.5 million as of December 31, 2019 is more likely than not based on forecasted future net earnings. Our net deferred tax asset of $15.5 million consists of approximately $11.5 million of net U.S. federal deferred tax assets and $4.0 million of net state deferred tax assets. The major components of the deferred tax asset are $21.2 million in net operating loss carryforwards and built in losses.

As of December 31, 2019, we had net operating loss carryforwards for state income tax purposes of $70.5 million. These state net operating losses begin to expire in 2024.

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, 2019, 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 2016.

10. Related Party Transactions

12 Months Ended

Dec. 31, 2019

Related Party Transactions

(10) Related Party Transactions

In December 2007, one of our directors purchased a $4.0 million subordinated renewable note pursuant to our ongoing program of issuing such notes to the public. The note was purchased through the registered agent and under the same terms and conditions, including the interest rate, that were offered to other purchasers at the time the note was issued. The note was redeemed at par plus accrued interest in February 2019.

11. Commitments and Contingencies

12 Months Ended

Dec. 31, 2019

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

(11) Commitments and Contingencies

Leases

The Company has operating leases for corporate offices, equipment, software and hardware. The Company has entered into operating leases for the majority of its real estate locations, primarily office space. These leases are generally for periods of three to seven years with various renewal options. The depreciable life of leased assets is limited by the expected lease term. Leases with an initial term of 12 months or less are not recorded on the balance sheet and the related lease expense is recognized on a straight-line basis over the lease term.

We determine if a contract contains a lease at contract inception. Right-of-use assets and liabilities are recognized based on the present value of lease payments over the lease term. In determining the present value of lease payments, we use the Company’s incremental borrowing rate. Right-of-use assets are included in other assets and lease liabilities are included in accounts payable and accrued expenses in our Condensed Consolidated Balance Sheet at December 31, 2019.

The following table presents the supplemental balance sheet information related to leases:

	Year Ended,
	December 31, 2019
	(In thousands)
Operating Leases
Operating lease right-of-use assets	$	23,735
Less: Accumulated amortization right-of-use assets		(6,600	)
Operating lease right-of-use assets, net	$	17,135
		$
Operating lease liabilities		(18,527	)
		$
Finance Leases		$
Property and equipment, at cost	$	876
Less: Accumulated depreciation		(150	)
Property and equipment, net	$	726
		$
Finance lease liabilities	$	(718	)
		$
Weighted Average Discount Rate		$
Operating lease		5.0%
Finance lease		6.4%

Maturities of lease liabilities were as follows:
(In thousands)	Operating			Finance
Year Ending December 31,	Lease			Lease

2020	$	7,757		$	309
2021		7,449			305
2022		6,058			127
2023		1,389			27
2024		411			13
Thereafter		278			–
Total undiscounted lease payments		23,342			781
Less amounts representing interest		(4,815	)		(63	)
Lease Liability	$	18,527		$	718

The following table presents the leases expense included in Occupancy, General and administrative on our Condensed Consolidated Statement of Operations:

	Year Ended December 31,
	2019		2018		2017
	(In thousands)
Operating lease cost	$	7,521	$	7,124	$	6,266
Finance lease cost		160		–		–
Total lease cost	$	7,681	$	7,124	$	6,266

The following table presents the supplemental cash flow information related to leases:

	Year Ended December 31,
	2019		2018		2017
	(In thousands)
Cash paid for amounts included in the measurement of lease liabilities:	$		$
Operating cash flows from operating leases	$	7,584	$	6,809	$	6,053
Operating cash flows from finance leases		133		37		73
Financing cash flows from finance leases		27		9		17

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.

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 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 sales 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, 2019, 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, 2019 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, 2019 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 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, 2019

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 $1.6 million, $1.5 million, and $1.2 respectively, for the years ended December 31, 2019, 2018 and 2017.

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, 2019 and 2018:

	December 31,
	2019			2018
	(In thousands)
Change in Projected Benefit Obligation
Projected benefit obligation, beginning of year	$	20,085		$	22,562
Service cost		–			–
Interest cost		808			775
Assumption changes		3,047			(1,867	)
Actuarial (gain) loss		141			(361	)
Settlements		–			–
Benefits paid		(1,084	)		(1,024	)
Projected benefit obligation, end of year	$	22,997		$	20,085

Change in Plan Assets
Fair value of plan assets, beginning of year	$	14,368		$	16,446
Return on assets		3,017			(1,806	)
Employer contribution		–			1,000
Expenses		(391	)		(248	)
Settlements		–			–
Benefits paid		(1,084	)		(1,024	)
Fair value of plan assets, end of year	$	15,910		$	14,368

Funded Status at end of year	$	(7,087	)	$	(5,717	)

Additional Information

Weighted average assumptions used to determine benefit obligations and cost at December 31, 2019 and 2018 were as follows:

	December, 31
	2019		2018
Weighted average assumptions used to determine benefit obligations
Discount rate		3.07%		4.11%

Weighted average assumptions used to determine net periodic benefit cost
Discount rate		4.11%		3.50%
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, 2019. 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,
	2019			2018			2017
	(In thousands)
Amounts recognized on Consolidated Balance Sheet
Other assets	$	–		$	–		$	–
Other liabilities		(7,087	)		(5,717	)		(6,116	)
Net amount recognized	$	(7,087	)	$	(5,717	)	$	(6,116	)

Amounts recognized in accumulated other comprehensive loss consists of:
Net loss	$	13,092		$	11,896		$	11,350
Unrecognized transition asset		–			–			–
Net amount recognized	$	13,092		$	11,896		$	11,350

Components of net periodic benefit cost
Interest cost	$	808		$	775		$	855
Expected return on assets		(1,012	)		(1,163	)		(1,149	)
Amortization of transition asset		–			–			–
Amortization of net loss		376			443			405
Net periodic benefit cost		172			55			111
Settlement (gain)/loss		–			–			–
Total	$	172		$	55		$	111

Benefit Obligation Recognized in Other Comprehensive Loss (Income)
Net loss (gain)	$	1,197		$	545		$	732
Prior service cost (credit)		–			–			–
Amortization of prior service cost.		–			–			–
Net amount recognized in other comprehensive loss (income)	$	1,197		$	545		$	732

The estimated net loss that will be amortized from accumulated other comprehensive income into net periodic benefit cost in 2020 is $382,000.

The weighted average asset allocation of our pension benefits at December 31, 2019 and 2018 were as follows:

	December 31,
	2019		2018
Weighted Average Asset Allocation at Year-End
Asset Category
Equity securities		82%		78%
Debt securities		18%		22%
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)
2020	$	870
2021		906
2022		943
2023		966
2024		997
Years 2025 - 2029		5,592

Anticipated Contributions in 2020	$	1,052

The fair value of plan assets at December 31, 2019 and 2018, by asset category, is as follows:

	December 31, 2019
	Level 1 (1)		Level 2 (2)		Level 3 (3)		Total
	(in thousands)
Investment Name:
Company Common Stock	$	2,950	$	–	$	–	$	2,950
Large Cap Value		–		2,370		–		2,370
Mid Cap Index		–		658		–		658
Small Cap Growth		–		655		–		655
Small Cap Value		–		674		–		674
Large Cap Blend		–		683		–		683
Growth		–		2,342		–		2,342
International Growth		–		2,667		–		2,667
Core Bond		–		1,909		–		1,909
High Yield		–		386		–		386
Inflation Protected Bond		–		509		–		509
Money Market		–		107		–		107
Total.	$	2,950	$	12,960	$	–	$	15,910

	December 31, 2018
	Level 1 (1)		Level 2 (2)		Level 3 (3)		Total
	(in thousands)
Investment Name:
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

________________________

(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, 2019

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,
	2019			2018
	(In thousands)
Balance at beginning of period	$	821,066		$	–
Finance receivables at fair value acquired during period		1,004,194			914,949
Payments received on finance receivables at fair value		(292,948	)		(67,720	)
Net interest income accretion on fair value receivables		(90,383	)		(26,163	)
Mark to fair value		2,109			–
Balance at end of period	$	1,444,038		$	821,066

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

	December 31, 2019				December 31, 2018
	Contractual		Fair		Contractual		Fair
	Balance		Value		Balance		Value
	(In thousands)

Finance receivables measured at fair value	$	1,492,803	$	1,444,038	$	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,

2019

2018

Unobservable Inputs

2019

2018

(In thousands)

Assets:

Finance receivables measured at fair value

1,444,038

821,066

Discount rate

8.9% - 11.1%

8.9% - 9.9%

Cumulative net losses

15.0% - 16.1%

15% - 16%

The following table summarizes the delinquency status using the contractual balance of these finance receivables measured at fair value as of December 31, 2019 and December 31, 2018:

	December 31,		December 31,
	2019		2018
	(In thousands)
Delinquency Status
Current	$	1,344,883	$	787,707
31 - 60 days		81,262		26,285
61 - 90 days		34,280		8,350
91 + days		15,167		3,677
Repo		17,211		3,020
	$	1,492,803	$	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, 2019, the finance receivables related to the repossessed vehicles in inventory totaled $28.9 million. We have applied a valuation adjustment, or loss allowance, of $21.4 million, which is based on a recovery rate of approximately 26%, resulting in an estimated fair value and carrying amount of $7.5 million. The fair value and carrying amount of the repossessed inventory at December 31, 2018 was $8.9 million after applying a valuation adjustment of $24.6 million.

There were no transfers in or out of level 1 or level 2 assets and liabilities for 2019 and 2018. 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, 2019 and 2018, were as follows:

	As of December 31, 2019
Financial Instrument	(In thousands)
	Carrying		Fair Value Measurements Using:
	Value		Level 1		Level 2		Level 3		Total
Assets:
Cash and cash equivalents	$	5,295	$	5,295	$	–	$	–	$	5,295
Restricted cash and equivalents		135,537		135,537		–		–		135,537
Finance receivables, net		885,890		–		–		841,160		841,160
Accrued interest receivable		11,645		–		–		11,645		11,645
Liabilities:
Warehouse lines of credit	$	134,791	$	–	$	–	$	134,791	$	134,791
Accrued interest payable		5,254		–		–		5,254		5,254
Securitization trust debt		2,097,728		–		–		2,116,520		2,116,520
Subordinated renewable notes		17,534		–		–		17,534		17,534

	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

14. Subsequent Events

12 Months Ended

Dec. 31, 2019

Subsequent Events [Abstract]

Subsequent Events

14) Subsequent Events

On January 15, 2020 we executed our first securitization of 2020. In the transaction, qualified institutional buyers purchased $260.0 million of asset-backed notes secured by $260.0 million in automobile receivables originated by CPS. The sold notes, issued by CPS Auto Receivables Trust 2020-A, consist of six classes. Ratings of the notes were provided by Moody’s and DBRS, and were based on the structure of the transaction, the historical performance of similar receivables and CPS’s experience as a servicer. The weighted average yield on the notes is approximately 3.08%.

The 2020-A transaction has initial credit enhancement consisting of a cash deposit equal to 1.00% of the original receivable pool balance. The transaction agreements require accelerated payment of principal on the notes to reach overcollateralization of the lesser of 4.00% of the original receivable pool balance, or 11.00% of the then outstanding pool balance. The transaction utilized a pre-funding structure, in which CPS sold approximately $170.9 million of receivables at inception and approximately $89.1 million of additional receivables in February 2020. The transaction was a private offering of securities, not registered under the Securities Act of 1933, or any state securities law.

1. Summary of Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2019

Accounting Policies [Abstract]

Description of Business

Principles of Consolidation

Cash and Cash Equivalents

Finance Receivables

Finance Receivables Measured at Fair Value

Finance Receivables Measured at Fair Value

Allowance for Finance Credit Losses

Charge Off Policy

Contract Acquisition Fees and Origination Costs

Repossessed and Other Assets

Treatment of Securitizations

Treatment of Securitizations

Our term securitization structure has generally been as follows:

Servicing

Furniture and Equipment

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

Other Income

The following table presents the primary components of Other Income:

	Year Ended December 31,
	2019		2018		2017
	(In thousands)
Direct mail revenues	$	4,659	$	5,829	$	6,432
Convenience fee revenue		2,440		1,700		1,900
Recoveries on previously charged-off contracts		158		248		563
Sales tax refunds		1,239		887		866
Other		208		814		448
Other income for the period	$	8,704	$	9,478	$	10,209

Earnings Per Share

	Year Ended December 31,
	2019		2018		2017
	(In thousands, except per share data)
Numerator:
Numerator for basic and diluted earnings per share	$	5,406	$	14,862	$	3,765
Denominator:
Denominator for basic earnings per share - weighted average number of common shares outstanding during the year		22,416		21,989		22,687
Incremental common shares attributable to exercise of outstanding options and warrants		1,648		2,999		4,527
Denominator for diluted earnings per share		24,064		24,988		27,214
Basic earnings per share	$	0.24	$	0.68	$	0.17
Diluted earnings per share	$	0.22	$	0.59	$	0.14

Deferral and Amortization of Debt Issuance Costs

Income Taxes

Purchases of Company Stock

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

Stock Option Plan

Use of Estimates

Reclassification

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

Financial Covenants

Financial Covenants

Provision for Contingent Liabilities

Provision for Contingent Liabilities

Recently Issued Accounting Standards

1. Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2019

Accounting Policies [Abstract]

Schedule of other income

The following table presents the primary components of Other Income:

	Year Ended December 31,
	2019		2018		2017
	(In thousands)
Direct mail revenues	$	4,659	$	5,829	$	6,432
Convenience fee revenue		2,440		1,700		1,900
Recoveries on previously charged-off contracts		158		248		563
Sales tax refunds		1,239		887		866
Other		208		814		448
Other income for the period	$	8,704	$	9,478	$	10,209

Schedule of computation of earnings per share

	Year Ended December 31,
	2019		2018		2017
	(In thousands, except per share data)
Numerator:
Numerator for basic and diluted earnings per share	$	5,406	$	14,862	$	3,765
Denominator:
Denominator for basic earnings per share - weighted average number of common shares outstanding during the year		22,416		21,989		22,687
Incremental common shares attributable to exercise of outstanding options and warrants		1,648		2,999		4,527
Denominator for diluted earnings per share		24,064		24,988		27,214
Basic earnings per share	$	0.24	$	0.68	$	0.17
Diluted earnings per share	$	0.22	$	0.59	$	0.14

3. Finance Receivables (Tables)

12 Months Ended

Dec. 31, 2019

Finance Receivables

Schedule of finance receivables

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

	December 31,
	2019		2018
	(In thousands)
Finance receivables
Automobile finance receivables, net of unearned interest	$	895,566	$	1,518,395
Unearned acquisition fees, discounts and deferred origination costs, net		1,964		3,690
Finance receivable	$	897,530	$	1,522,085

Schedule of delinquency status of finance receivables

The following table summarizes the delinquency status of finance receivables as of December 31, 2019 and 2018:

	December 31,
	2019		2018
	(In thousands)
Delinquency Status
Current	$	698,870	$	1,262,730
31 - 60 days		107,951		157,688
61 - 90 days		57,395		66,134
91 + days		31,350		31,843
	$	895,566	$	1,518,395

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, 2019, 2018 and 2017:

	December 31,
	2019			2018			2017
				(In thousands)
Balance at beginning of year	$	67,376		$	109,187		$	95,578
Provision for credit losses		85,773			133,080			186,713
Charge-offs		(184,449	)		(220,523	)		(211,948	)
Recoveries		42,940			45,632			38,844
Balance at end of year	$	11,640		$	67,376		$	109,187

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,
	2019			2018
	(In thousands)
Gross balance of repossessions in inventory	$	28,933		$	33,462
Allowance for losses on repossessed inventory		(21,389	)		(24,564	)
Net repossessed inventory included in other assets	$	7,544		$	8,898

4. Furniture and Equipment (Tables)

12 Months Ended

Dec. 31, 2019

Property, Plant and Equipment [Abstract]

Schedule of furniture and equipment

The following table presents the components of furniture and equipment:

	December 31,
	2019			2018
	(In thousands)
Furniture and fixtures	$	1,648		$	1,647
Computer and telephone equipment		6,803			6,203
Leasehold improvements		1,507			1,507
		9,958			9,357
Less: accumulated depreciation and amortization		(8,446	)		(7,520	)
	$	1,512		$	1,837

5. Securitization Trust Debt (Tables)

12 Months Ended

Dec. 31, 2019

Securitization Trust Debt

Schedule of securitization trust debt

										Weighted
										Average
	Final	Receivables				Outstanding		Outstanding		Contractual
	Scheduled	Pledged at				Principal at		Principal at		Interest Rate at
	Payment	December 31,		Initial		December 31,		December 31,		December 31,
Series	Date (1)	2019 (2)		Principal		2019		2018		2019
	(Dollars in thousands)
CPS 2014-A	June 2021		–		180,000		–		15,328		–
CPS 2014-B	September 2021		–		202,500		–		24,051		–
CPS 2014-C	December 2021		–		273,000		19,758		40,896		5.24%
CPS 2014-D	March 2022		24,090		267,500		23,755		46,489		5.53%
CPS 2015-A	June 2022		28,533		245,000		26,713		52,448		5.31%
CPS 2015-B	September 2022		35,509		250,000		36,338		64,591		5.10%
CPS 2015-C	December 2022		52,624		300,000		53,579		90,639		5.77%
CPS 2016-A	March 2023		69,830		329,460		71,599		119,444		6.10%
CPS 2016-B	June 2023		84,403		332,690		82,667		135,688		6.40%
CPS 2016-C	September 2023		85,473		318,500		83,696		136,114		6.42%
CPS 2016-D	April 2024		66,807		206,325		65,021		104,645		4.74%
CPS 2017-A	April 2024		73,549		206,320		71,450		113,527		4.81%
CPS 2017-B	December 2023		89,706		225,170		76,201		127,726		4.14%
CPS 2017-C	September 2024		91,672		224,825		80,315		131,845		4.08%
CPS 2017-D	June 2024		93,992		196,300		83,801		132,919		3.70%
CPS 2018-A	March 2025		100,639		190,000		91,258		142,643		3.61%
CPS 2018-B	December 2024		118,234		201,823		111,188		167,809		4.01%
CPS 2018-C	September 2025		140,405		230,275		130,064		204,418		4.09%
CPS 2018-D	June 2025		164,200		233,730		149,470		224,189		4.08%
CPS 2019-A	March 2026		202,830		254,400		186,900		–		3.95%
CPS 2019-B	June 2026		193,284		228,275		184,308		–		3.58%
CPS 2019-C	December 2026		223,764		243,513		216,650		–		3.02%
CPS 2019-D	March 2027		267,750		274,313		265,035		–		2.60%
		$	2,207,294	$	5,613,919	$	2,109,766	$	2,075,409

_________________________

(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, 2019

Debt Disclosure [Abstract]

Schedule of debt outstanding

The terms of our debt outstanding at December 31, 2019 and 2018 are summarized below:

			December 31,		December 31,
			2019		2018
			(In thousands)
Description	Interest Rate	Maturity

Warehouse lines of credit	5.50% over one month Libor (Minimum 6.50%)	February 2021	$	40,558	$	38,198

	3.00% over one month Libor (Minimum 3.75%)	September 2020		96,225		99,885

	4.00% over a commercial paper rate (Minimum 5.00%)	December 2021		–		–

Residual interest financing	8.60%	January 2026		40,000		40,000

Subordinated renewable notes	Weighted average rate of 9.75% and 8.53% at December 31, 2019 and December 31, 2018, respectively	Weighted average maturity of April 2022 and January 2021 at December 31, 2019 and December 31, 2018, respectively		17,534		17,290

			$	194,317	$	195,373

Schedule of expected maturity amounts for long-term debt

	Subordinated
Contractual maturity	renewable
date	notes
	(In thousands)
2020	$	6,006
2021		4,316
2022		2,591
2023		2,121
2024		825
Thereafter		1,675
Total	$	17,534

7. Shareholders' Equity (Tables)

12 Months Ended

Dec. 31, 2019

Equity [Abstract]

Schedule of stock purchases

The table below describes the purchase of our common stock for the twelve-month periods ended December 31, 2019 and 2018:

	Twelve Months Ended
	December 31, 2019				December 31, 2018

	Shares		Avg. Price		Shares		Avg. Price
Open market purchases		335,546	$	3.95		1,258,797	$	3.77
Shares redeemed upon net exercise of stock options		18,424		3.76		33,604		4.37
Other		24,500		4.20		90,000		4.13
Total stock purchases		378,470	$	3.97		1,382,401	$	3.81

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,
	2019		2018		2017
Expected life (years)		4.02		3.99		4.02
Risk-free interest rate		1.53%		2.74%		1.59%
Volatility		37%		34%		36%
Expected dividend yield		–		–		–

Schedule of option activity

	Number of Shares (in thousands)			Weighted Average Exercise Price		Weighted Average Remaining Contractual Term
Options outstanding at the beginning of period		14,421		$	4.57	N/A
Granted		1,490			3.53	N/A
Exercised		(488	)		0.86	N/A
Forfeited/Expired		(75	)		4.00	N/A
Options outstanding at the end of period		15,348		$	4.59	3.34 years

Options exercisable at the end of period		11,717		$	4.87	2.69 years

8. Interest Income and Interest Expense (Tables)

12 Months Ended

Dec. 31, 2019

Warehouse lines of credit [Member]

Schedule of interest income

	Year Ended December 31,
	2019		2018		2017
	(In thousands)
Interest on finance receivables	$	211,138	$	334,634	$	423,567
Interest on finance receivables at fair value		123,059		43,863		–
Other interest income		2,899		1,800		607
Interest income	$	337,096	$	380,297	$	424,174

Schedule of interest expense

The following table presents the components of interest expense:

	Year Ended December 31,
	2019		2018		2017
	(In thousands)
Securitization trust debt	$	96,870	$	89,926	$	83,084
Warehouse lines of credit		8,402		7,752		7,933
Residual interest financing		3,822		2,343		–
Subordinated renewable notes		1,434		1,445		1,328
Interest expense	$	110,528	$	101,466	$	92,345

9. Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Income Tax Disclosure [Abstract]

Schedule of income tax expense

Income taxes consist of the following:

	Year Ended December 31,
	2019			2018			2017
	(In thousands)
Current federal tax expense	$	(574	)	$	(7,526	)	$	14,369
Current state tax expense		105			(2,064	)		3,305
Deferred federal tax expense		2,759			9,074			10,131
Deferred state tax expense		1,466			4,357			501
Income tax expense	$	3,756		$	3,841		$	28,306

Schedule of reconciliation of income taxes

Income tax expense for the years ended December 31, 2019, 2018 and 2017 differs from the amount determined by applying the statutory federal rate to income before income taxes as follows:

	Year Ended December 31,
	2019			2018			2017
	(In thousands)
Expense at federal tax rate	$	1,924		$	3,928		$	11,225
State taxes, net of federal income tax effect		1,027			1,718			1,831
Stock-based compensation		169			238			682
Non-deductible expenses		856			824			171
Effect of change in tax rate		–			–			15,117
Accounting method change		–			(2,100	)		–
Other		(220	)		(767	)		(720	)
	$	3,756		$	3,841		$	28,306

Schedule of deferred tax assets and liabilities

	December 31,
	2019			2018
	(In thousands)
Deferred Tax Assets:
Finance receivables	$	–		$	1,867
Accrued liabilities		307			256
NOL carryforwards		17,240			7,736
Built in losses		4,008			4,651
Pension accrual		1,927			1,552
Stock compensation		4,385			4,161
Lease liability		5,232			–
Other		164			356
Total deferred tax assets		33,263			20,579
					$
Deferred Tax Liabilities:		$
Finance receivables	$	(12,180	)	$	–
Deferred loan costs		(542	)		(1,137	)
Lease right-of-use assets		(4,855	)		–
Furniture and equipment		(206	)		(254	)
Total deferred tax liabilities		(17,783	)		(1,391	)
					$
Net deferred tax asset	$	15,480		$	19,188

11. Commitments and Contingencies (Tables)

12 Months Ended

Dec. 31, 2019

Commitments and Contingencies Disclosure [Abstract]

Operating lease table

The following table presents the supplemental balance sheet information related to leases:

	Year Ended,
	December 31, 2019
	(In thousands)
Operating Leases
Operating lease right-of-use assets	$	23,735
Less: Accumulated amortization right-of-use assets		(6,600	)
Operating lease right-of-use assets, net	$	17,135
		$
Operating lease liabilities		(18,527	)

Finance lease table

The following table presents the supplemental balance sheet information related to leases:

	Year Ended,
	December 31, 2019
	(In thousands)
Finance Leases		$
Property and equipment, at cost	$	876
Less: Accumulated depreciation		(150	)
Property and equipment, net	$	726
		$
Finance lease liabilities	$	(718	)
		$
Weighted Average Discount Rate		$
Operating lease		5.0%
Finance lease		6.4%

Maturities of lease liabilities

Maturities of lease liabilities were as follows:
(In thousands)	Operating			Finance
Year Ending December 31,	Lease			Lease

2020	$	7,757		$	309
2021		7,449			305
2022		6,058			127
2023		1,389			27
2024		411			13
Thereafter		278			–
Total undiscounted lease payments		23,342			781
Less amounts representing interest		(4,815	)		(63	)
Lease Liability	$	18,527		$	718

Schedule of lease costs

The following table presents the leases expense included in Occupancy, General and administrative on our Condensed Consolidated Statement of Operations:

	Year Ended December 31,
	2019		2018		2017
	(In thousands)
Operating lease cost	$	7,521	$	7,124	$	6,266
Finance lease cost		160		–		–
Total lease cost	$	7,681	$	7,124	$	6,266

Cash flow information related to leases

The following table presents the supplemental cash flow information related to leases:

	Year Ended December 31,
	2019		2018		2017
	(In thousands)
Cash paid for amounts included in the measurement of lease liabilities:	$		$
Operating cash flows from operating leases	$	7,584	$	6,809	$	6,053
Operating cash flows from finance leases		133		37		73
Financing cash flows from finance leases		27		9		17

12. Employee Benefits (Tables)

12 Months Ended

Dec. 31, 2019

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, 2019 and 2018:

	December 31,
	2019			2018
	(In thousands)
Change in Projected Benefit Obligation
Projected benefit obligation, beginning of year	$	20,085		$	22,562
Service cost		–			–
Interest cost		808			775
Assumption changes		3,047			(1,867	)
Actuarial (gain) loss		141			(361	)
Settlements		–			–
Benefits paid		(1,084	)		(1,024	)
Projected benefit obligation, end of year	$	22,997		$	20,085

Change in Plan Assets
Fair value of plan assets, beginning of year	$	14,368		$	16,446
Return on assets		3,017			(1,806	)
Employer contribution		–			1,000
Expenses		(391	)		(248	)
Settlements		–			–
Benefits paid		(1,084	)		(1,024	)
Fair value of plan assets, end of year	$	15,910		$	14,368

Funded Status at end of year	$	(7,087	)	$	(5,717	)

Schedule of weighted average assumptions used to determine pension benefit obligations

Weighted average assumptions used to determine benefit obligations and cost at December 31, 2019 and 2018 were as follows:

	December, 31
	2019		2018
Weighted average assumptions used to determine benefit obligations
Discount rate		3.07%		4.11%

Weighted average assumptions used to determine net periodic benefit cost
Discount rate		4.11%		3.50%
Expected return on plan assets		7.25%		7.25%

Schedule of components of net periodic benefit cost

	December 31,
	2019			2018			2017
	(In thousands)
Amounts recognized on Consolidated Balance Sheet
Other assets	$	–		$	–		$	–
Other liabilities		(7,087	)		(5,717	)		(6,116	)
Net amount recognized	$	(7,087	)	$	(5,717	)	$	(6,116	)

Amounts recognized in accumulated other comprehensive loss consists of:
Net loss	$	13,092		$	11,896		$	11,350
Unrecognized transition asset		–			–			–
Net amount recognized	$	13,092		$	11,896		$	11,350

Components of net periodic benefit cost
Interest cost	$	808		$	775		$	855
Expected return on assets		(1,012	)		(1,163	)		(1,149	)
Amortization of transition asset		–			–			–
Amortization of net loss		376			443			405
Net periodic benefit cost		172			55			111
Settlement (gain)/loss		–			–			–
Total	$	172		$	55		$	111

Benefit Obligation Recognized in Other Comprehensive Loss (Income)
Net loss (gain)	$	1,197		$	545		$	732
Prior service cost (credit)		–			–			–
Amortization of prior service cost		–			–			–
Net amount recognized in other comprehensive loss (income)	$	1,197		$	545		$	732

Schedule of weighted average asset allocation of our pension benefits

The weighted average asset allocation of our pension benefits at December 31, 2019 and 2018 were as follows:

	December 31,
	2019		2018
Weighted Average Asset Allocation at Year-End
Asset Category
Equity securities		82%		78%
Debt securities		18%		22%
Cash and cash equivalents		0%		0%
Total		100%		100%

Schedule of estimated Future Benefit Payments

Cash Flows

Estimated Future Benefit Payments (In thousands)
2020	$	870
2021		906
2022		943
2023		966
2024		997
Years 2025 - 2029		5,592

Anticipated Contributions in 2020	$	1,052

Schedule of fair value of plan assets

The fair value of plan assets at December 31, 2019 and 2018, by asset category, is as follows:

	December 31, 2019
	Level 1 (1)		Level 2 (2)		Level 3 (3)		Total
	(in thousands)
Investment Name:
Company Common Stock	$	2,950	$	–	$	–	$	2,950
Large Cap Value		–		2,370		–		2,370
Mid Cap Index		–		658		–		658
Small Cap Growth		–		655		–		655
Small Cap Value		–		674		–		674
Large Cap Blend		–		683		–		683
Growth		–		2,342		–		2,342
International Growth		–		2,667		–		2,667
Core Bond		–		1,909		–		1,909
High Yield		–		386		–		386
Inflation Protected Bond		–		509		–		509
Money Market		–		107		–		107
Total.	$	2,950	$	12,960	$	–	$	15,910

	December 31, 2018
	Level 1 (1)		Level 2 (2)		Level 3 (3)		Total
	(in thousands)
Investment Name:
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

________________________

(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, 2019

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,
	2019			2018
	(In thousands)
Balance at beginning of period	$	821,066		$	–
Finance receivables at fair value acquired during period		1,004,194			914,949
Payments received on finance receivables at fair value		(292,948	)		(67,720	)
Net interest income accretion on fair value receivables		(90,383	)		(26,163	)
Mark to fair value		2,109			–
Balance at end of period	$	1,444,038		$	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, 2019				December 31, 2018
	Contractual		Fair		Contractual		Fair
	Balance		Value		Balance		Value
	(In thousands)

Finance receivables measured at fair value	$	1,492,803	$	1,444,038	$	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,

2019

2018

Unobservable Inputs

2019

2018

(In thousands)

Assets:

Finance receivables measured at fair value

1,444,038

821,066

Discount rate

8.9% - 11.1%

8.9% - 9.9%

Cumulative net losses

15.0% - 16.1%

15% - 16%

Schedule of delinquency status of finance receivables measured at fair value

	December 31,		December 31,
	2019		2018
	(In thousands)
Delinquency Status
Current	$	1,344,883	$	787,707
31 - 60 days		81,262		26,285
61 - 90 days		34,280		8,350
91 + days		15,167		3,677
Repo		17,211		3,020
	$	1,492,803	$	829,039

Schedule of estimated fair values of financial assets and liabilities

The estimated fair values of financial assets and liabilities at December 31, 2019 and 2018, were as follows:

	As of December 31, 2019
Financial Instrument	(In thousands)
	Carrying		Fair Value Measurements Using:
	Value		Level 1		Level 2		Level 3		Total
Assets:
Cash and cash equivalents	$	5,295	$	5,295	$	–	$	–	$	5,295
Restricted cash and equivalents		135,537		135,537		–		–		135,537
Finance receivables, net		885,890		–		–		841,160		841,160
Accrued interest receivable		11,645		–		–		11,645		11,645
Liabilities:
Warehouse lines of credit	$	134,791	$	–	$	–	$	134,791	$	134,791
Accrued interest payable		5,254		–		–		5,254		5,254
Securitization trust debt		2,097,728		–		–		2,116,520		2,116,520
Subordinated renewable notes		17,534		–		–		17,534		17,534

	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

1. Summary of Significant Accounting Policies (Details - Other income) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Primary components of Other Income
Other income for the period	$ 8,704	$ 9,478	$ 10,209
Direct Mail Revenues [Member]
Primary components of Other Income
Other income for the period	4,659	5,829	6,432
Convenience Fee Revenue [Member]
Primary components of Other Income
Other income for the period	2,440	1,700	1,900
Recoveries on Previously Charged-Off Contracts [Member]
Primary components of Other Income
Other income for the period	158	248	563
Sales Tax Refunds [Member]
Primary components of Other Income
Other income for the period	1,239	887	866
Other Income [Member]
Primary components of Other Income
Other income for the period	$ 208	$ 814	$ 448

1. Summary of Significant Accounting Policies (Details - Earnings Per Share) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Accounting Policies [Abstract]
Numerator for basic and diluted earnings per share	$ 5,406	$ 14,862	$ 3,765
Denominator for basic earnings per share - weighted average number of common shares outstanding during the year	22,416	21,989	22,687
Incremental common shares attibutable to exercise of outstanding options and warrants	1,648	2,999	4,527
Denominator for diluted earnings per share	24,064	24,988	27,214
Basic earnings per share	$ 0.24	$ 0.68	$ 0.17
Diluted earnings per share	$ 0.22	$ 0.59	$ 0.14

- Definition

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

+ References

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-Name Accounting Standards Codification
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+ 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
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+ 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, 2019 USD ($) shares	Dec. 31, 2018 USD ($) shares	Dec. 31, 2017 shares
Unrestricted cash balance	$ 5,295	$ 12,787
Other assets	$ 39,852	$ 26,801
Incremental shares excluded from EPS calculation \| shares	11,300	10,300	7,500
CPS Leasing, Inc. [Member]
Ownership percentage in subsidiary	0.80
Repossessed Vehicles [Member]
Other assets	$ 7,500	$ 8,900
Dealer concentration [Member] \| Geographic Concentration [Member] \| CALIFORNIA
Concentration percentage	12.60%	8.70%
Dealer concentration [Member] \| Geographic Concentration [Member] \| OHIO
Concentration percentage	10.80%	8.80%
Dealer concentration [Member] \| Geographic Concentration [Member] \| INDIANA
Concentration percentage	6.30%	5.20%
Dealer concentration [Member] \| Geographic Concentration [Member] \| NORTH CAROLINA
Concentration percentage	5.40%	6.20%
Dealer concentration [Member] \| Geographic Concentration [Member] \| FLORIDA
Concentration percentage	4.90%	6.00%

2. Restricted Cash (Details Narrative) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Restricted cash	$ 135,537	$ 117,323
Securitizations and Credit Facility Reserves [Member]
Restricted cash	$ 54,800	$ 48,500

3. Finance Receivables (Details - Components of Finance Receivables) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Finance receivables
Automobile finance receivables, net of unearned interest	$ 895,566	$ 1,518,395
Unearned acquisition fees and originations costs	1,964	3,690
Finance Receivables	$ 897,530	$ 1,522,085

3. Finance Receivables (Details - Delinquency status) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Delinquency Status
Finance receivables, past due	$ 895,566	$ 1,518,395
Current [Member]
Delinquency Status
Finance receivables, past due	698,870	1,262,730
31 to 60 Days [Member]
Delinquency Status
Finance receivables, past due	107,951	157,688
61 to 90 Days [Member]
Delinquency Status
Finance receivables, past due	57,395	66,134
91 + Days [Member]
Delinquency Status
Finance receivables, past due	$ 31,350	$ 31,843

3. Finance Receivables (Details - Summary of activity) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Finance Receivables
Balance at beginning of year	$ 67,376	$ 109,187	$ 95,578
Provision for credit losses	85,773	133,080	186,713
Charge-offs	(184,449)	(220,523)	(211,948)
Recoveries	42,940	45,632	38,844
Balance at end of year	$ 11,640	$ 67,376	$ 109,187

3. Finance Receivables (Details - Repossessed inventory) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Finance Receivables
Gross balance of repossessions in inventory	$ 28,933	$ 33,462
Allowance for losses on repossessed inventory	(21,389)	(24,564)
Net repossessed inventory included in other assets	$ 7,544	$ 8,898

3. Finance Receivables (Details Narrative) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Finance Receivables
Finance receivables	$ 31,400	$ 31,800

4. Furniture and Equipment (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Furniture and equipment, gross	$ 9,958	$ 9,357
Less: accumulated depreciation and amortization	(8,446)	(7,520)
Furniture and equipment, net	1,512	1,837
Furniture and Fixtures [Member]
Furniture and equipment, gross	1,648	1,647
Computer and Telephone Equipment [Member]
Furniture and equipment, gross	6,803	6,203
Leasehold Improvements [Member]
Furniture and equipment, gross	$ 1,507	$ 1,507

4. Furniture and Equipment (Details Narrative) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Property, Plant and Equipment [Abstract]
Depreciation expense	$ 1,076	$ 992	$ 934

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

12 Months Ended

Dec. 31, 2019

Dec. 31, 2018

"Securitization trust debt," and components of debt

Receivables Pledged at end of period

^[1]

$ 2,207,294

Initial Principal

5,613,919

Outstanding Principal

$ 2,109,766

$ 2,075,409

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]

$ 0

Initial Principal

180,000

Outstanding Principal

$ 0

15,328

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]

$ 0

Initial Principal

202,500

Outstanding Principal

$ 0

24,051

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]

$ 0

Initial Principal

273,000

Outstanding Principal

$ 19,758

40,896

Weighted Average Contractual Interest Rate

5.24%

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]

$ 24,090

Initial Principal

267,500

Outstanding Principal

$ 23,755

46,489

Weighted Average Contractual Interest Rate

5.53%

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]

$ 28,533

Initial Principal

245,000

Outstanding Principal

$ 26,713

52,448

Weighted Average Contractual Interest Rate

5.31%

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]

$ 35,509

Initial Principal

250,000

Outstanding Principal

$ 36,338

64,591

Weighted Average Contractual Interest Rate

5.10%

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]

$ 52,624

Initial Principal

300,000

Outstanding Principal

$ 53,579

90,639

Weighted Average Contractual Interest Rate

5.77%

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]

$ 69,830

Initial Principal

329,460

Outstanding Principal

$ 71,599

119,444

Weighted Average Contractual Interest Rate

6.10%

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]

$ 84,403

Initial Principal

332,690

Outstanding Principal

$ 82,667

135,688

Weighted Average Contractual Interest Rate

6.40%

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]

$ 85,473

Initial Principal

318,500

Outstanding Principal

$ 83,696

136,114

Weighted Average Contractual Interest Rate

6.42%

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]

$ 66,807

Initial Principal

206,325

Outstanding Principal

$ 65,021

104,645

Weighted Average Contractual Interest Rate

4.74%

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]

$ 73,549

Initial Principal

206,320

Outstanding Principal

$ 71,450

113,527

Weighted Average Contractual Interest Rate

4.81%

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]

$ 89,706

Initial Principal

225,170

Outstanding Principal

$ 76,201

127,726

Weighted Average Contractual Interest Rate

4.14%

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]

$ 91,672

Initial Principal

224,825

Outstanding Principal

$ 80,315

131,845

Weighted Average Contractual Interest Rate

4.08%

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]

$ 93,992

Initial Principal

196,300

Outstanding Principal

$ 83,801

132,919

Weighted Average Contractual Interest Rate

3.70%

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]

$ 100,639

Initial Principal

190,000

Outstanding Principal

$ 91,258

142,643

Weighted Average Contractual Interest Rate

3.61%

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]

$ 118,234

Initial Principal

201,823

Outstanding Principal

$ 111,188

167,809

Weighted Average Contractual Interest Rate

4.01%

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]

$ 140,405

Initial Principal

230,275

Outstanding Principal

$ 130,064

204,418

Weighted Average Contractual Interest Rate

4.09%

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]

$ 164,200

Initial Principal

233,730

Outstanding Principal

$ 149,470

224,189

Weighted Average Contractual Interest Rate

4.08%

CPS 2019-A [Member]

"Securitization trust debt," and components of debt

Final Scheduled Payment Date

^[2]

March 2026

Receivables Pledged at end of period

^[1]

$ 202,830

Initial Principal

254,400

Outstanding Principal

$ 186,900

Weighted Average Contractual Interest Rate

3.95%

CPS 2019-B [Member]

"Securitization trust debt," and components of debt

Final Scheduled Payment Date

^[2]

June 2026

Receivables Pledged at end of period

^[1]

$ 193,284

Initial Principal

228,275

Outstanding Principal

$ 184,308

Weighted Average Contractual Interest Rate

3.58%

CPS 2019-C [Member]

"Securitization trust debt," and components of debt

Final Scheduled Payment Date

^[2]

December 2026

Receivables Pledged at end of period

^[1]

$ 223,764

Initial Principal

243,513

Outstanding Principal

$ 216,650

Weighted Average Contractual Interest Rate

3.02%

CPS 2019-D [Member]

"Securitization trust debt," and components of debt

Final Scheduled Payment Date

^[2]

March 2027

Receivables Pledged at end of period

^[1]

$ 267,750

Initial Principal

274,313

Outstanding Principal

$ 265,035

$ 0

Weighted Average Contractual Interest Rate

2.60%

[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, 2019	Dec. 31, 2018
Expected finance receivable payments 2020	$ 806,700
Expected finance receivable payments 2021	583,800
Expected finance receivable payments 2022	358,100
Expected finance receivable payments 2023	261,800
Expected finance receivable payments 2024	57,500
Expected finance receivable payments 2025	29,900
Restricted cash under various agreements	135,500
Securitization Trust Debt [Member]
Debt issuance costs	$ 12,000	$ 11,800

6. Debt (Details - Debt outstanding) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Warehouse lines of credit	$ 134,791	$ 136,847
Residual interest financing	39,478	39,106
Subordinated renewable notes	17,534	17,290
Total debt outstanding	194,317	195,373
Warehouse Lines Of Credit [Member]
Warehouse lines of credit	$ 40,558	38,198
Interest rate	5.50% over one month Libor (Minimum 6.50%)
Maturity date	Feb-21
Warehouse Lines Of Credit (2) [Member]
Warehouse lines of credit	$ 96,225	99,885
Interest rate	3.00% over one month Libor (Minimum 3.75%)
Maturity date	Sep-20
Warehouse Lines Of Credit (3) [Member]
Warehouse lines of credit	$ 0	0
Interest rate	4.00% over a commercial paper rate (Minimum 5.00%)
Maturity date	Dec-21
ResidualInterestFinancing [Member]
Residual interest financing	$ 40,000	40,000
Interest rate	8.60%
Maturity date	Jan-26
Subordinated Renewable Notes [Member]
Subordinated renewable notes	$ 17,534	$ 17,290
Interest rate	Weighted average rate of 9.75% and 8.53% at December 31, 2019 and December 31, 2018, respectively
Maturity date	Weighted average maturity of April 2022 and January 2021 at December 31, 2019 and December 31, 2018, respectively

6. Debt (Details - Debt maturity schedule) - Subordinated Renewable Notes [Member] $ in Thousands	Dec. 31, 2019 USD ($)
2020	$ 6,006
2021	4,316
2022	2,591
2023	2,121
2024	825
Thereafter	1,675
Total	$ 17,534

6. Debt (Details Narrative) - USD ($) $ in Thousands	4 Months Ended		5 Months Ended	11 Months Ended
6. Debt (Details Narrative) - USD ($) $ in Thousands	Apr. 17, 2015	May 11, 2012	May 16, 2018	Nov. 24, 2015	Dec. 31, 2019	Dec. 31, 2018
Debt issuance costs					$ 2,000	$ 1,200
Warehouse lines of credit amount outstanding					134,791	136,847
Unamortized debt issuance costs					522
Residual Interest Financings [Member]
Unamortized debt issuance costs					522
Proceeds from residual interest financings			$ 40,000
Warehouse Credit Facility [Member] \| Citibank [Member]
Credit line maximum		$ 100,000
Warehouse lines of credit amount outstanding					96,200
Credit line maturity date		Sep. 30, 2021
Warehouse Credit Facility [Member] \| Fortress Investment Group [Member]
Credit line maximum	$ 100,000
Warehouse lines of credit amount outstanding					40,600
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 amount outstanding					0
Credit line maturity date				Dec. 31, 2021
Three Warehouse Lines Of Credit [Member]
Warehouse lines of credit amount outstanding					$ 136,800	$ 138,100

7. Shareholders' Equity (Details - Stock purchases) - Common Stock [Member] - $ / shares	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Total stock purchases, shares	378,470	1,382,401
Total stock purchases, average price per share	$ 3.97	$ 3.81
Open Market Purchases [Member]
Total stock purchases, shares	335,546	1,258,797
Total stock purchases, average price per share	$ 3.95	$ 3.77
Shares redeemed upon net exercise of stock options [Member]
Total stock purchases, shares	18,424	33,604
Total stock purchases, average price per share	$ 3.76	$ 4.37
Other Repurchases [Member]
Total stock purchases, shares	24,500	90,000
Total stock purchases, average price per share	$ 4.20	$ 4.13

7. Shareholders' Equity (Details - Assumptions)	12 Months Ended
7. Shareholders' Equity (Details - Assumptions)	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Equity [Abstract]
Expected life (years)	4 years 7 days	3 years 11 months 26 days	4 years 7 days
Risk-free interest rate	1.53%	2.74%	1.59%
Volatility	37.00%	34.00%	36.00%
Expected dividend yield	0.00%	0.00%	0.00%

7. Shareholders' Equity (Details - Option activity) shares in Thousands	12 Months Ended
	Dec. 31, 2019 $ / shares shares
Number of Shares
Options outstanding at the beginning of period \| shares	14,421
Granted \| shares	1,490
Exercised \| shares	(488)
Forfeited/Expired \| shares	(75)
Options outstanding at the end of period \| shares	15,348
Options exercisable at the end of period \| shares	11,717
Weighted Average Exercise Price
Options outstanding at the beginning of period \| $ / shares	$ 4.57
Granted \| $ / shares	3.53
Exercised \| $ / shares	0.86
Forfeited/Expired \| $ / shares	4.00
Options outstanding at the end of period \| $ / shares	4.59
Options exercisable at the end of period \| $ / shares	$ 4.87
Weighted Average Remaining Contractual Term
Weighted average remaining contractual term, end of period	3 years 4 months 2 days
Weighted average remaining contractual term, exercisable at the end of period	2 years 8 months 9 days

7. Shareholders' Equity (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands	2 Months Ended	7 Months Ended	12 Months Ended
	Mar. 15, 2020	Jul. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2008
Weighted average exercise price of stock options granted per share			$ 1.11	$ 1.06	$ 1.32
Voliatility assumptions, minimum			37.00%	31.00%	35.00%
Voliatility assumptions, maximum			39.00%	34.00%	37.00%
Stock-based compensation			$ 2,072	$ 3,515	$ 5,715
Unrecognized stock-based compensation costs			$ 3,100
Weighted-average period for unrecognized costs			2 years 1 month 6 days
Intrinsic value options outstanding			$ 4,800	4,900
Intrinsic value of options exercisable			4,800	4,900
Intrinsic value of options exercised			1,400	$ 869
Proceeds from options exercised			$ 422
Warrants [Member]
Warrants exercised, shares		2,000,000
Common stock issued for warrants exercised, shares		1,999,995
Warrants [Member] \| Subsequent Event [Member]
Warrants repurchased, shares	500,000
Payment of repurchase of warrants	$ 1,000
Warrants [Member] \| 2008 Residual InterestFinancing [Member]
Warrants issued, shares						2,500,000
2006 Plan [Member]
Options authorized under plan			19,200,000
Shares available for grant			1,458,000
Common Stock [Member]
Stock repurchase program, total shares authorized to be repurchased			10,000,000
Amount remaining of stock repurchase authorized amount			$ 6,100,000
Common Stock [Member]
Repurchase of common stock, shares			378,470	1,382,401
Average price per share of common stock repurchased (in dollars per share)			$ 3.97	$ 3.81

8. Interest Income and Interest Expense (Details - Interest income) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Components of interest income
Interest on finance receivables	$ 211,138	$ 334,634	$ 423,567
Interest on finance receivables at fair value	123,059	43,863	0
Other interest income	2,899	1,800	607
Interest income	$ 337,096	$ 380,297	$ 424,174

8. Interest Income and Interest Expense (Details - Interest expense) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Total interest expense	$ 110,528	$ 101,466	$ 92,345
Securitization Trust Debt [Member]
Total interest expense	96,870	89,926	83,084
Warehouse Lines Of Credit [Member]
Total interest expense	8,402	7,752	7,933
Residual interest financing [Member]
Total interest expense	3,822	2,343	0
Subordinated Renewable Notes [Member]
Total interest expense	$ 1,434	$ 1,445	$ 1,328

9. Income Taxes (Details - Income tax expense) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Income Tax Disclosure [Abstract]
Current federal tax expense	$ (574)	$ (7,526)	$ 14,369
Current state tax expense	105	(2,064)	3,305
Deferred federal tax expense	2,759	9,074	10,131
Deferred state tax expense (benefit)	1,466	4,357	501
Income tax expense	$ 3,756	$ 3,841	$ 28,306

9. Income Taxes (Details - Tax rate effect) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Income Tax Disclosure [Abstract]
Expense at federal tax rate	$ 1,924	$ 3,928	$ 11,225
State taxes, net of federal income tax effect	1,027	1,718	1,831
Stock-based compensation	169	238	682
Non-deductible expenses	856	824	171
Effect of change in tax rate	0	0	15,117
Accounting method change	0	(2,100)	0
Other	(220)	(767)	(720)
Income tax expense	$ 3,756	$ 3,841	$ 28,306

9. Income Taxes (Details - Deferred taxes) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Deferred Tax Assets:
Finance receivables	$ 0	$ 1,867
Accrued liabilities	307	256
NOL carryforwards	17,240	7,736
Built in losses	4,008	4,651
Pension accrual	1,927	1,552
Stock compensation	4,385	4,161
Lease liability	5,232	0
Other	164	356
Total deferred tax assets	33,263	20,579
Deferred Tax Liabilities:
Finance receivables	(12,180)	0
Deferred loan costs	(542)	(1,137)
Lease right-of-use assets	(4,855)	0
Furniture and Equipment	(206)	(254)
Total deferred tax liabilities	(17,783)	(1,391)
Net deferred tax asset	$ 15,480	$ 19,188

9. Income Taxes (Details Narrative) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Income tax expense (benefit)	$ 3,756	$ 3,841	$ 28,306
Net deferred tax asset	15,500
Unrecognized tax benefits	0
Tax planning strategies [Member]
Income tax expense (benefit)		$ (2,100)
Federal [Member]
Net deferred tax asset	11,500
State [Member]
Net deferred tax asset	4,000
Net operating loss carryforward	$ 70,500
NOL beginning expiration date	Dec. 31, 2024

11. Commitments and Contingencies (Details - Operating leases) $ in Thousands	Dec. 31, 2019 USD ($)
Operating Leases
Operating lease right-of-use assets	$ 23,735
Less: Accumulated amortization right-of-use assets	(6,600)
Operating lease right-of-use assets, net	17,135
Operating lease liabilities	$ (18,527)

11. Commitments and Contingencies (Details - Finance Leases) $ in Thousands	Dec. 31, 2019 USD ($)
Finance Leases
Property and equipment, at cost	$ 876
Less: Accumulated depreciation	(150)
Property and equipment, net	726
Finance lease liabilities	$ (718)

11. Commitments and Contingencies (Details - Maturities of lease liabilities) $ in Thousands	Dec. 31, 2019 USD ($)
Maturities of Operating lease liabilities
2020	$ 7,757
2021	7,449
2022	6,058
2023	1,389
2024	411
Thereafter	278
Total undiscounted lease payments	23,342
Less amounts representing interest	(4,815)
Lease Liability	18,527
Maturities of Finance lease liabilities
2020	309
2021	305
2022	127
2023	27
2024	13
Thereafter	0
Total undiscounted lease payments	781
Less amounts representing interest	(63)
Lease Liability	$ 718

11. Commitments and Contingencies (Details - Lease - Statement of Operations) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Accounting Policies [Abstract]
Operating lease cost	$ 7,521	$ 7,124	$ 6,266
Finance lease cost	160	0	0
Total lease cost	$ 7,681	$ 7,124	$ 6,266

11. Commitments and Contingencies (Details - Lease - Cash flow) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$ 7,584	$ 6,809	$ 6,053
Operating cash flows from finance leases	133	37	73
Financing cash flows from finance leases	$ 27	$ 9	$ 17

11. Commitments and Contingencies (Details Narrative)	Dec. 31, 2019
Commitments and Contingencies Disclosure [Abstract]
Weighted Average Discount Rate Operating lease	5.00%
Weighted Average Discount Rate Finance lease	6.40%

12. Employee Benefits (Details - Reconciliation) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Change in Projected Benefit Obligation
Projected benefit obligation, beginning of year	$ 20,085	$ 22,562
Service cost	0	0
Interest cost	808	775	$ 855
Assumption changes	3,047	(1,867)
Actuarial (gain) loss	141	(361)
Settlements	0	0
Benefits paid	(1,084)	(1,024)
Projected benefit obligation, end of year	22,997	20,085	22,562
Change in Plan Assets
Fair value of plan assets, beginning of year	14,368	16,446
Return on assets	3,017	(1,806)
Employer contribution	0	1,000
Expenses	(391)	(248)
Settlements	0	0
Benefits paid	(1,084)	(1,024)
Fair value of plan assets, end of year	15,910	14,368	$ 16,446
Funded Status at end of year	$ (7,087)	$ (5,717)

12. Employee Benefits (Details - Weighted average assumptions)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Weighted average assumptions used to determine benefit obligations
Discount rate	3.07%	4.11%
Weighted average assumptions used to determine net periodic benefit cost
Discount rate	4.11%	3.50%
Expected return on plan assets	7.25%	7.25%

12. Employee Benefits (Details - Amounts recognized) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Amounts recognized on Consolidated Balance Sheet
Other assets	$ 0	$ 0	$ 0
Other liabilities	(7,087)	(5,717)	(6,116)
Net amount recognized	(7,087)	(5,717)	(6,116)
Amounts recognized in accumulated other comprehensive loss consists of:
Net loss	13,092	11,896	11,350
Unrecognized transition asset	0	0	0
Net amount recognized	13,092	11,896	11,350
Components of net periodic benefit cost
Interest Cost	808	775	855
Expected return on assets	(1,012)	(1,163)	(1,149)
Amortization of transition asset	0	0	0
Amortization of net loss	376	443	405
Net periodic benefit cost	172	55	111
Settlement (gain)/loss	0	0	0
Total	172	55	111
Benefit Obligation Recognized in Other Comprehensive Loss (Income)
Net loss (gain)	1,197	545	732
Prior service cost (credit)	0	0	0
Amortization of prior service cost	0	0	0
Net amount recognized in other comprehensive loss (income)	$ 1,197	$ 545	$ 732

12. Employee Benefits (Details - Asset allocation)	Dec. 31, 2019	Dec. 31, 2018
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	82.00%	78.00%
Debt Securities [Member]
Weighted Average Asset Allocation at Year-End	18.00%	22.00%

12. Employee Benefits (Details - Estimated future benefit payments) $ in Thousands	Dec. 31, 2019 USD ($)
Estimated Future Benefit Payments (In thousands)
2020	$ 870
2021	906
2022	943
2023	966
2024	997
Years 2025 - 2029	5,592
Anticipated Contributions in 2020	$ 1,052

12. Employee Benefits (Details - Fair value of plan assets) - USD ($)
$ in Thousands

Dec. 31, 2019

Dec. 31, 2018

Dec. 31, 2017

Fair value of plan assets

$ 15,910

$ 14,368

$ 16,446

Level 1 [Member]

Fair value of plan assets

^[1]

2,950

2,635

Level 2 [Member]

Fair value of plan assets

^[2]

12,960

11,733

Level 3 [Member]

Fair value of plan assets

^[3]

Company Common Stock [Member]

Fair value of plan assets

2,950

2,635

Company Common Stock [Member] | Level 1 [Member]

Fair value of plan assets

^[1]

2,950

2,635

Company Common Stock [Member] | Level 2 [Member]

Fair value of plan assets

^[2]

Company Common Stock [Member] | Level 3 [Member]

Fair value of plan assets

^[3]

Large Cap Value [Member]

Fair value of plan assets

2,370

1,983

Large Cap Value [Member] | Level 1 [Member]

Fair value of plan assets

^[1]

Large Cap Value [Member] | Level 2 [Member]

Fair value of plan assets

^[2]

2,370

1,983

Large Cap Value [Member] | Level 3 [Member]

Fair value of plan assets

^[3]

Mid Cap Index [Member]

Fair value of plan assets

658

563

Mid Cap Index [Member] | Level 1 [Member]

Fair value of plan assets

^[1]

Mid Cap Index [Member] | Level 2 [Member]

Fair value of plan assets

^[2]

658

563

Mid Cap Index [Member] | Level 3 [Member]

Fair value of plan assets

^[3]

Small Cap Growth [Member]

Fair value of plan assets

655

559

Small Cap Growth [Member] | Level 1 [Member]

Fair value of plan assets

^[1]

Small Cap Growth [Member] | Level 2 [Member]

Fair value of plan assets

^[2]

655

559

Small Cap Growth [Member] | Level 3 [Member]

Fair value of plan assets

^[3]

Small Cap Value [Member]

Fair value of plan assets

674

558

Small Cap Value [Member] | Level 1 [Member]

Fair value of plan assets

^[1]

Small Cap Value [Member] | Level 2 [Member]

Fair value of plan assets

^[2]

674

558

Small Cap Value [Member] | Level 3 [Member]

Fair value of plan assets

^[3]

Large Cap Blend [Member]

Fair value of plan assets

683

587

Large Cap Blend [Member] | Level 1 [Member]

Fair value of plan assets

^[1]

Large Cap Blend [Member] | Level 2 [Member]

Fair value of plan assets

^[2]

683

587

Large Cap Blend [Member] | Level 3 [Member]

Fair value of plan assets

^[3]

Growth [Member]

Fair value of plan assets

2,342

2,031

Growth [Member] | Level 1 [Member]

Fair value of plan assets

^[1]

Growth [Member] | Level 2 [Member]

Fair value of plan assets

^[2]

2,342

2,031

Growth [Member] | Level 3 [Member]

Fair value of plan assets

^[3]

International Growth [Member]

Fair value of plan assets

2,667

2,301

International Growth [Member] | Level 1 [Member]

Fair value of plan assets

^[1]

International Growth [Member] | Level 2 [Member]

Fair value of plan assets

^[2]

2,667

2,301

International Growth [Member] | Level 3 [Member]

Fair value of plan assets

^[3]

Core Bond [Member]

Fair value of plan assets

1,909

1,921

Core Bond [Member] | Level 1 [Member]

Fair value of plan assets

^[1]

Core Bond [Member] | Level 2 [Member]

Fair value of plan assets

^[2]

1,909

1,921

Core Bond [Member] | Level 3 [Member]

Fair value of plan assets

^[3]

High Yield [Member]

Fair value of plan assets

386

364

High Yield [Member] | Level 1 [Member]

Fair value of plan assets

^[1]

High Yield [Member] | Level 2 [Member]

Fair value of plan assets

^[2]

386

364

High Yield [Member] | Level 3 [Member]

Fair value of plan assets

^[3]

Inflation Protected Bond [Member]

Fair value of plan assets

509

510

Inflation Protected Bond [Member] | Level 1 [Member]

Fair value of plan assets

^[1]

Inflation Protected Bond [Member] | Level 2 [Member]

Fair value of plan assets

^[2]

509

510

Inflation Protected Bond [Member] | Level 3 [Member]

Fair value of plan assets

^[3]

Money Market [Member]

Fair value of plan assets

107

356

Money Market [Member] | Level 1 [Member]

Fair value of plan assets

^[1]

Money Market [Member] | Level 2 [Member]

Fair value of plan assets

^[2]

107

356

Money Market [Member] | Level 3 [Member]

Fair value of plan assets

^[3]

$ 0

[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.

12. Employee Benefits (Details Narrative) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Employee Benefits Details Narrative
401(k) plan contributions	$ 1,600	$ 1,500	$ 1,200
Expected long term rate of return	7.25%	7.25%
Estimated net loss amortized into net periodic benefit cost	$ 382

13. Fair Value Measurements (Details - Reconciliation of Finance Receivables) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Fair Value Disclosures [Abstract]
Balance at beginning of period	$ 821,066	$ 0
Finance receivables at fair value acquired during period	1,004,194	914,949	$ 0
Payments received on finance receivables at fair value	(292,948)	(67,720)
Net interest income accretion on fair value receivables	(90,383)	(26,162)	0
Mark to fair value	2,109	0
Balance at end of period	$ 1,444,038	$ 821,066	$ 0

13. Fair Value Measurements (Details - Finance Receivables to Their Contractual Balances) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Finance receivables measured at fair value	$ 1,444,038	$ 821,066	$ 0
Fair Value [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Finance receivables measured at fair value	1,444,038	821,066
Contractual Balance [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Finance receivables measured at fair value	$ 1,492,803	$ 829,039

13. Fair Value Measurements (Details - Level 3 Fair Value Measurements) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Finance receivables measured at fair value	$ 1,444,038	$ 821,066	$ 0
Fair Value [Member]
Finance receivables measured at fair value	1,444,038	821,066
Fair Value [Member] \| Level 3 [Member]
Finance receivables measured at fair value	$ 1,444,038	$ 821,066
Fair Value [Member] \| Level 3 [Member] \| Discount Rate [Member] \| Minimum [Member]
Unobservable Inputs	8.90%	8.90%
Fair Value [Member] \| Level 3 [Member] \| Discount Rate [Member] \| Maximum [Member]
Unobservable Inputs	11.10%	9.90%
Fair Value [Member] \| Level 3 [Member] \| Cumulative Net Losses [Member] \| Minimum [Member]
Unobservable Inputs	15.00%	15.00%
Fair Value [Member] \| Level 3 [Member] \| Cumulative Net Losses [Member] \| Maximum [Member]
Unobservable Inputs	16.10%	16.00%

13. Fair Value Measurements (Details - Delinquency status) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Finance receivables measured at fair value current	$ 1,344,883	$ 787,707
Finance receivables measured at fair value	1,492,803	829,039
31 to 60 Days [Member]
Finance receivables measured at fair value	81,262	26,285
61 to 90 Days [Member]
Finance receivables measured at fair value	34,280	8,350
91 + Days [Member]
Finance receivables measured at fair value	15,167	3,677
Repossessed Vehicles [Member]
Finance receivables measured at fair value	$ 17,211	$ 3,020

13. Fair Value Measurements (Details - Fair values) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Assets:
Cash and cash equivalents	$ 5,295	$ 12,787
Restricted cash and equivalents	135,537	117,323
Finance receivables, net	841,160	1,434,631
Accrued interest receivable	11,645	31,969
Liabilities:
Warehouse lines of credit	134,791	136,847
Accrued interest payable	5,254	4,819
Securitization trust debt	2,116,520	2,051,920
Subordinated renewable notes	17,534	17,290
Level 1 [Member]
Assets:
Cash and cash equivalents	5,295	12,787
Restricted cash and equivalents	135,537	117,323
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	841,160	1,434,631
Accrued interest receivable	11,645	31,969
Liabilities:
Warehouse lines of credit	134,791	136,847
Accrued interest payable	5,254	4,819
Securitization trust debt	2,116,520	2,051,920
Subordinated renewable notes	17,534	17,290
Carrying Value [Member]
Assets:
Cash and cash equivalents	5,295	12,787
Restricted cash and equivalents	135,537	117,323
Finance receivables, net	885,890	1,454,709
Accrued interest receivable	11,645	31,969
Liabilities:
Warehouse lines of credit	134,791	136,847
Accrued interest payable	5,254	4,819
Securitization trust debt	2,097,728	2,063,627
Subordinated renewable notes	$ 17,534	$ 17,290

13. Fair Value Measurements (Details Narrative) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Fair Value Measurements Details Narrative
Finance receivables related to reposessed vehicles in inventory	$ 28,933	$ 33,462
Valuation adjustment, loss allowance	$ 21,389	24,564
Recovery rate	26.00%
Estimated fair value and carrying amount of repossed inventory	$ 7,544	$ 8,898

14. Subsequent Events (Details Narrative) - Subsequent Event [Member] - Asset-backed Securities [Member] - USD ($) $ in Thousands		1 Months Ended
	Jan. 15, 2020	Feb. 28, 2020
Asset-backed notes sold	$ 260,000
Asset-backed notes secured by automobile receivables	$ 260,000
Weighted average yield on notes	3.08%
Receivables sold	$ 170,900	$ 89,100