0001683168-21-003483 | 10-Q | XBRL Viewer | Consumer Portfolio Services INC

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Cover - shares	6 Months Ended
Cover - shares	Jun. 30, 2021	Aug. 06, 2021
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Jun. 30, 2021
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2021
Current Fiscal Year End Date	--12-31
Entity File Number	1-11416
Entity Registrant Name	CONSUMER PORTFOLIO SERVICES, INC.
Entity Central Index Key	0000889609
Entity Tax Identification Number	33-0459135
Entity Incorporation, State or Country Code	CA
Entity Address, Address Line One	3800 Howard Hughes Parkway
Entity Address, Address Line Two	Suite 1400
Entity Address, City or Town	Las Vegas
Entity Address, State or Province	NV
Entity Address, Postal Zip Code	89169
City Area Code	(949)
Local Phone Number	753-6800
Title of 12(b) Security	Common Stock, no par value
Trading Symbol	CPSS
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		22,943,689

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
ASSETS
Cash and cash equivalents	$ 43,131	$ 13,466
Restricted cash and equivalents	155,776	130,686
Finance receivables measured at fair value	1,582,175	1,523,726
Finance receivables	340,470	492,133
Less: Allowance for finance credit losses	(72,242)	(80,790)
Finance receivables, net	268,228	411,343
Furniture and equipment, net	1,007	828
Deferred tax assets, net	27,131	28,512
Accrued interest receivable	3,601	5,017
Other assets	22,691	32,317
Total asset	2,103,740	2,145,895
Liabilities
Accounts payable and accrued expenses	52,142	43,112
Warehouse lines of credit	77,044	118,999
Residual interest financing	67,153	25,426
Securitization trust debt	1,732,879	1,803,673
Subordinated renewable notes	26,005	21,323
Total liabilities	1,955,223	2,012,533
COMMITMENTS AND CONTINGENCIES
Shareholders' Equity
Preferred Stock, Value, Issued	0	0
Common stock, no par value; authorized 75,000,000 shares; 23,055,239 and 22,737,342 shares issued and outstanding at June 30, 2021 and December 31, 2020, respectively	73,204	72,926
Retained earnings	83,884	69,007
Accumulated other comprehensive loss	(8,571)	(8,571)
Total stockholders’ equity	148,517	133,362
Total liability and stockholder’ equity	2,103,740	2,145,895
Series A Preferred Stock [Member]
Shareholders' Equity
Preferred Stock, Value, Issued	0	0
Series B Preferred Stock [Member]
Shareholders' Equity
Preferred Stock, Value, Issued	$ 0	$ 0

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares	Jun. 30, 2021	Dec. 31, 2020
Preferred stock, par value (in dollars per share)	$ 1	$ 1
Preferred stock, authorized	4,998,130	4,998,130
Preferred stock, issued	0	0
Common stock, no par value (in dollars per share)	$ 0	$ 0
Common Stock, Shares Authorized	75,000,000	75,000,000
Common Stock, Shares, Issued	23,055,239	22,737,342
Common Stock, Shares, Outstanding	23,055,239	22,737,342
Series A Preferred Stock [Member]
Preferred stock, par value (in dollars per share)	$ 1	$ 1
Preferred stock, authorized	5,000,000	5,000,000
Preferred stock, issued	0	0
Series B Preferred Stock [Member]
Preferred stock, par value (in dollars per share)	$ 1	$ 1
Preferred stock, authorized	1,870	1,870
Preferred stock, issued	0	0

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Revenues:
Interest income	$ 65,440	$ 75,552	$ 131,533	$ 154,689
Mark to finance receivables measured at fair value	0	(9,549)	(4,417)	(19,899)
Other income	1,329	1,289	2,765	3,269
Total revenues	66,769	67,292	129,881	138,059
Expenses:
Employee costs	19,448	19,828	39,607	41,671
General and administrative	7,831	7,837	15,579	16,506
Interest	18,980	26,485	39,925	53,476
Provision for credit losses	0	3,100	0	6,713
Sales	4,201	3,079	8,187	7,508
Occupancy	2,016	1,833	3,918	3,524
Depreciation and amortization	417	487	845	906
Total operating expenses	52,893	62,649	108,061	130,304
Income before income tax expense (benefit)	13,876	4,643	21,820	7,755
Income tax expense (benefit)	4,163	1,671	6,943	(6,009)
Net income	$ 9,713	$ 2,972	$ 14,877	$ 13,764
Earnings per share:
Basic	$ 0.43	$ 0.13	$ 0.65	$ 0.61
Diluted	$ 0.39	$ 0.13	$ 0.59	$ 0.58
Number of shares used in computing earnings per share:
Basic	22,842	22,685	22,791	22,612
Diluted	25,130	23,687	25,048	23,783

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Income Statement [Abstract]
Net income	$ 9,713	$ 2,972	$ 14,877	$ 13,764
Other comprehensive income/(loss); change in funded status of pension plan	0	0	0	0
Comprehensive income	$ 9,713	$ 2,972	$ 14,877	$ 13,764

- Definition

Amount after tax of increase (decrease) in equity from transactions and other events and circumstances from net income (loss) and other comprehensive income (loss), attributable to noncontrolling interests. Excludes changes in equity resulting from investments by owners and distributions to owners.

+ References + Details

- Definition

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

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+ Details

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
Cash flows from operating activities:
Net income	$ 14,877	$ 13,764
Adjustments to reconcile net income to net cash provided by operating activities:
Accretion of deferred acquisition fees and origination costs	651	641
Net interest income accretion on fair value receivables	66,812	64,156
Depreciation and amortization	845	906
Amortization of deferred financing costs	3,598	4,127
Mark to finance receivables measured at fair value	4,417	19,899
Provision for credit losses	0	6,713
Stock-based compensation expense	735	898
Changes in assets and liabilities:
Accrued interest receivable	1,416	4,416
Deferred tax assets, net	1,381	16,569
Other assets	8,644	(3,074)
Accounts payable and accrued expenses	9,030	338
Net cash provided by operating activities	112,406	129,353
Cash flows from investing activities:
Payments received on finance receivables held for investment	142,464	180,366
Purchases of finance receivables measured at fair value	(485,117)	(399,729)
Payments received on finance receivables at fair value	355,439	222,063
Change in repossessions held in inventory	982	2,888
Purchase of furniture and equipment	(1,024)	(660)
Net cash provided by investing activities	12,744	4,928
Cash flows from financing activities:
Proceeds from issuance of securitization trust debt	470,545	462,343
Proceeds from issuance of subordinated renewable notes	5,684	3,450
Payments on subordinated renewable notes	(1,002)	(1,404)
Repayments of warehouse lines of credit	(42,560)	(78,843)
Net Proceeds from (repayment of) residual interest financing debt	42,332	(2,120)
Repayment of securitization trust debt	(541,065)	(508,942)
Payment of financing costs	(3,872)	(3,178)
Purchase of common stock	(1,582)	(205)
Exercise of options and warrants	1,125	452
Net cash used in financing activities	(70,395)	(128,447)
Increase in cash and cash equivalents	54,755	5,834
Cash and restricted cash at beginning of period	144,152	140,832
Cash and restricted cash at end of period	198,907	146,666
Cash paid (received) during the period for:
Interest	36,665	49,372
Income taxes	$ 2,962	$ (17,580)

CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Unaudited) - USD ($) shares in Thousands, $ in Thousands	Common Stock [Member]	Retained Earnings [Member]	AOCI Attributable to Parent [Member]	Total
Balance, beginning of period, Shares at Dec. 31, 2019	22,531
Common stock issued upon exercise of options and warrants, Shares	256
Repurchase of common stock, Shares	(72)
Balance, end of period, Shares at Jun. 30, 2020	22,715
Balance, beginning of period at Dec. 31, 2019	$ 71,257	$ 139,805	$ (8,421)
Common stock issued upon exercise of options and warrants	452
Repurchase of common stock	(205)
Cumulative change in accounting principle		(92,469)
Balance, beginning of period (as adjusted for change in accounting principle)		47,336
Pension benefit obligation				$ 0
Stock-based compensation	898
Net income		13,764		13,764
Balance at end at Jun. 30, 2020	$ 72,402	61,100	(8,421)	125,081
Balance, beginning of period, Shares at Mar. 31, 2020	22,559
Common stock issued upon exercise of options and warrants, Shares	228
Repurchase of common stock, Shares	(72)
Balance, end of period, Shares at Jun. 30, 2020	22,715
Balance, beginning of period at Mar. 31, 2020	$ 71,792	58,128	(8,421)
Common stock issued upon exercise of options and warrants	404
Repurchase of common stock	(205)
Cumulative change in accounting principle		0
Balance, beginning of period (as adjusted for change in accounting principle)		58,128
Pension benefit obligation				0
Stock-based compensation	411
Net income		2,972		2,972
Balance at end at Jun. 30, 2020	$ 72,402	61,100	(8,421)	125,081
Balance, beginning of period, Shares at Dec. 31, 2020	22,737
Common stock issued upon exercise of options and warrants, Shares	676
Repurchase of common stock, Shares	(358)
Balance, end of period, Shares at Jun. 30, 2021	23,055
Balance, beginning of period at Dec. 31, 2020	$ 72,926	69,007	(8,571)	133,362
Common stock issued upon exercise of options and warrants	1,125
Repurchase of common stock	(1,582)
Cumulative change in accounting principle
Balance, beginning of period (as adjusted for change in accounting principle)		69,007
Pension benefit obligation				0
Stock-based compensation	735
Net income		14,877		14,877
Balance at end at Jun. 30, 2021	$ 73,204	83,884	(8,571)	148,517
Balance, beginning of period, Shares at Mar. 31, 2021	22,656
Common stock issued upon exercise of options and warrants, Shares	578
Repurchase of common stock, Shares	(179)
Balance, end of period, Shares at Jun. 30, 2021	23,055
Balance, beginning of period at Mar. 31, 2021	$ 72,877	74,171	(8,571)
Common stock issued upon exercise of options and warrants	827
Repurchase of common stock	(827)
Cumulative change in accounting principle
Balance, beginning of period (as adjusted for change in accounting principle)		74,171
Pension benefit obligation				0
Stock-based compensation	327
Net income		9,713		9,713
Balance at end at Jun. 30, 2021	$ 73,204	$ 83,884	$ (8,571)	$ 148,517

(1) Summary of Significant Accounting Policies

6 Months Ended

Jun. 30, 2021

Accounting Policies [Abstract]

(1) Summary of Significant Accounting Policies

(1) Summary of Significant Accounting Policies

Description of Business

We were formed in California on March 8, 1991. We specialize in purchasing and servicing retail automobile installment sale contracts (“automobile contracts” or “finance receivables”) originated by licensed motor vehicle dealers located throughout the United States (“dealers”) in the sale of new and used automobiles, light trucks and passenger vans. Through our purchases, we provide indirect financing to dealer customers for borrowers with limited credit histories or past credit problems (“sub-prime customers”). We serve as an alternative source of financing for dealers, allowing sales to customers who otherwise might not be able to obtain financing. In addition to purchasing installment purchase contracts directly from dealers, we have also (i) lent money directly to consumers for loans secured by vehicles, (ii) purchased immaterial amounts of vehicle purchase money loans from non-affiliated lenders, and (iii) acquired installment purchase contracts in four merger and acquisition transactions. In this report, we refer to all of such contracts and loans as "automobile contracts."

Basis of Presentation

Our Unaudited Condensed Consolidated Financial Statements have been prepared in conformity with accounting principles generally accepted in the United States of America, with the instructions to Form 10-Q and with Article 10 of Regulation S-X of the Securities and Exchange Commission, and include all adjustments that are, in management’s opinion, necessary for a fair presentation of the results for the interim periods presented. All such adjustments are, in the opinion of management, of a normal recurring nature. Results for the six-month period ended June 30, 2021 are not necessarily indicative of the operating results to be expected for the full year.

Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted from these Unaudited Condensed Consolidated Financial Statements. These Unaudited Condensed Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements and Notes to Consolidated Financial Statements included in our Annual Report on Form 10-K for the year ended December 31, 2020.

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.

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 recorded 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 recorded value, an adjustment would be required. There are no adjustments to the carrying value of the portion of the receivables portfolio accounted for at fair value in the second quarter of 2021. Results for the second quarter of 2020 include a $9.5 million mark down. Mark downs of $4.4 million and $19.9 million were included in the results for the six months ending June 30, 2021 and 2020, respectively. The mark down is an estimate based on our evaluation of the appropriate fair value and future earnings rate of existing receivables compared to recently acquired receivables and our assessment of potential additional future net losses. Mark downs are reflected as a reduction in revenue.

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 recorded 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.

Other Income

The following table presents the primary components of Other Income for the three-month and six-month periods ending June 30, 2021 and 2020:

Schedule of other income
	Three Months Ended				Six Months Ended
	June 30,				June 30,
		2021		2020		2021		2020
		(In thousands)				(In thousands)
Direct mail revenues	$	890	$	501	$	1,869	$	1,684
Convenience fee revenue		180		530		420		1,060
Recoveries on previously charged-off contracts		45		50		60		75
Sales tax refunds		118		208		289		409
Other		96		–		127		41
Other income for the period	$	1,329	$	1,289	$	2,765	$	3,269

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.

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


	June 30,			December 31,
	2021			2020
		(In thousands)
Operating Leases
Operating lease right-of-use assets	$	23,850		$	23,735
Less: Accumulated amortization right-of-use assets		(15,668	)		(12,792	)
Operating lease right-of-use assets, net	$	8,182		$	10,943

Operating lease liabilities	$	(9,143	)	$	(12,096	)

Finance Leases
Property and equipment, at cost	$	3,407		$	3,407
Less: Accumulated depreciation		(1,788	)		(1,226	)
Property and equipment, net	$	1,619		$	2,181

Finance lease liabilities	$	(1,691	)	$	(2,243	)

Weighted Average Discount Rate
Operating lease		5.0%			5.0%
Finance lease		6.5%			6.5%

Maturities of leases
Maturities of lease liabilities were as follows:
(In thousands)		Operating			Finance
Year Ending December 31,		Lease			Lease
2021 (excluding the six months ended June 30, 2021)	$	3,659		$	613
2022		6,092			1,050
2023		1,423			84
2024		445			26
2025		308			9
Thereafter		3			–
Total undiscounted lease payments		11,930			1,782
Less amounts representing interest		(2,787	)		(91	)
Lease Liability	$	9,143		$	1,691

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

Lease information
	Three Months Ended				Six Months Ended
	June 30,				June 30,
		2021		2020		2021		2020
		(In thousands)				(In thousands)
Operating lease cost	$	1,793	$	1,885	$	3,630	$	3,769
Finance lease cost		308		293		616		572
Total lease cost	$	2,101	$	2,178	$	4,246	$	4,341

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


	Three Months Ended				Six Months Ended
	June 30,				June 30,
		2021		2020		2021		2020
Cash paid for amounts included in the measurement of lease liabilities:		(In thousands)				(In thousands)
Operating cash flows from operating leases	$	1,892	$	1,932	$	3,822	$	3,858
Operating cash flows from finance leases		278		248		552		481
Financing cash flows from finance leases		30		45		65		91

Stock-based Compensation

We recognize compensation costs in the financial statements for all share-based payments based on the grant date fair value estimated in accordance with the provisions of ASC 718 “Stock Compensation”.

For the three and six months ended June 30, 2021, we recorded stock-based compensation costs in the amount of $327,000 and $735,000, respectively. These stock-based compensation costs were $412,000 and $898,000 for the three and six months ended June 30, 2020. As of June 30, 2021, unrecognized stock-based compensation costs to be recognized over future periods equaled $2.4 million. This amount will be recognized as expense over a weighted-average period of 2.1 years.

The following represents stock option activity for the six months ended June 30, 2021:


						Weighted
						Average
	Number of			Weighted		Remaining
	Shares			Average		Contractual
	(in thousands)			Exercise Price		Term
Options outstanding at the beginning of period		15,977		$	4.46	N/A
Granted		–			–	N/A
Exercised		(676	)		1.66	N/A
Forfeited		(272	)		5.07	N/A
Options outstanding at the end of period		15,029		$	4.57	2.38 years

Options exercisable at the end of period		12,741		$	4.85	1.86 years

The following table presents the price distribution of stock options outstanding and exercisable for the years ended June 30, 2021 and December 31, 2020:


	Number of shares as of			Number of shares as of
	June 30, 2021			December 31, 2020
		Outstanding	Exercisable		Outstanding	Exercisable
Range of exercise prices:		(In thousands)			(In thousands)
$0.95 - $1.99		1,390	1,390		1,904	1,904
$2.00 - $2.99		1,570	528		1,570	180
$3.00 - $3.99		4,774	3,469		4,973	3,306
$4.00 - $4.99		1,510	1,510		1,540	1,217
$5.00 - $5.99		–	–		–	-
$6.00 - $6.99		4,685	4,685		4,770	4,770
$7.00 - $7.99		1,190	1,190		1,220	1,220

Total shares		15,119	12,772		15,977	12,597

At June 30, 2021 the aggregate intrinsic value of options outstanding and exercisable was $12.3 million and $8.9 million, respectively. There were 676,000 options exercised for the six months ended June 30, 2021 compared to 256,600 for the comparable period in 2020. The total intrinsic value of options exercised was $1.9 million and $285,000 for the six-month periods ended June 30, 2021 and 2020. There were 453,000 shares available for future stock option grants under existing plans as of June 30, 2021.

Purchases of Company Stock

The table below describes the purchase of our common stock for the six-month ended June 30, 2021 and 2020:

Schedule of purchases of company stock
	Six Months Ended
	June 30, 2021				June 30, 2020
		Shares		Avg. Price		Shares		Avg. Price
Open market purchases		301,088	$	4.18		25,113	$	2.85
Shares redeemed upon net exercise of stock options		56,983		4.47		46,909		2.86
Total stock purchases		358,071	$	4.42		72,022	$	2.85

Reclassifications

Some items in the prior year financial statements were reclassified to conform to the current presentation. Reclassifications had no effect on net income or shareholders’ equity.

Financial Covenants

Certain of our securitization transactions, our warehouse credit facilities and our residual interest financing contain various financial covenants requiring minimum financial ratios and results. Such covenants include maintaining minimum levels of liquidity and net worth and not exceeding maximum leverage levels. As of June 30, 2021, we were in compliance with all such covenants. In addition, certain of our debt agreements other than our term securitizations contain cross-default provisions. Such cross-default provisions would allow the respective creditors to declare a default if an event of default occurred with respect to other indebtedness of ours, but only if such other event of default were to be accompanied by acceleration of such other indebtedness.

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.

Coronavirus Pandemic

In December 2019, a new strain of coronavirus (the “COVID-19 virus”) originated in Wuhan, China. Since its discovery, the COVID-19 virus has spread throughout the world, and the outbreak has been declared to be a pandemic by the World Health Organization. We refer from time to time in this report to the outbreak and spread of the COVID-19 virus as “the pandemic.”

We measure our portfolio of finance receivables carried at fair value with consideration for unobservable inputs that 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. The pandemic and the adverse effect it may have on the U.S. economy and our obligors may cause us to consider significant changes in any of those inputs, which in turn may have a significant effect on our fair value measurement.

(2) Finance Receivables

6 Months Ended

Jun. 30, 2021

Finance Receivables

(2) Finance Receivables

(2) 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. For key terms such as interest rate, length of contract, monthly payment and amount financed, there is relatively little variation from the average for the 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:

Schedule of finance receivables
	June 30,		December 31,
	2021		2020
Finance receivables	(In thousands)
Automobile finance receivables, net of unearned interest	$	340,470	$	491,307
Unearned acquisition fees and originations costs		–		826
Finance receivables	$	340,470	$	492,133

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 included. In certain circumstances we will grant obligors one-month payment extensions to assist them with temporary cash flow problems. 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 June 30, 2021 and December 31, 2020:


	June 30,		December 31,
	2021		2020
	(In thousands)
Delinquency Status
Current	$	294,043	$	406,693
31 - 60 days		34,437		56,572
61 - 90 days		10,093		22,660
91 + days		1,897		5,382
	$	340,470	$	491,307

Finance receivables totaling $1.9 million and $5.4 million at June 30, 2021 and December 31, 2020, respectively, including all receivables greater than 90 days delinquent, have been placed on non-accrual status as a result of their delinquency status.

Allowance for Credit Losses – Finance Receivables

The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of finance receivables to present the net amount expected to be collected. Charge offs are deducted from the allowance when management believes that collectability is unlikely.

Management estimates the allowance using relevant available information, from internal and external sources, relating to past events, current conditions and, reasonable and supportable forecasts. We believe our historical credit loss experience provides the best basis for the estimation of expected credit losses. Consequently, we use historical loss experience for older receivables, aggregated into vintage pools based on their calendar quarter of origination, to forecast expected losses for less seasoned quarterly vintage pools.

We measure the weighted average monthly incremental change in cumulative net losses for the vintage pools in the relevant historical period. For the pools in the relevant historical period, we consider each pool’s performance from its inception through the end of the current period. We then apply the results of the historical analysis to less seasoned vintage pools beginning with each vintage pool’s most recent actual cumulative net loss experience and extrapolating from that point based on the historical data. We believe the pattern and magnitude of losses on older vintages allows us to establish a reasonable and supportable forecast of less seasoned vintages.

Our contract purchase guidelines are designed to produce a homogenous portfolio. For key credit characteristics of individual contracts such as obligor credit history, job stability, residence stability and ability to pay, there is relatively little variation from the average for the portfolio. Similarly, for key structural characteristics such as loan-to-value, length of contract, monthly payment and amount financed, there is relatively little variation from the average for the portfolio. Consequently, we do not believe there are significant differences in risk characteristics between various segments of our portfolio.

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

In consideration of the depth and breadth of the historical period, and the homogeneity of our portfolio, we generally do not adjust historical loss information for differences in risk characteristics such as credit or structural composition of segments of the portfolio or for changes in environmental conditions such as changes in unemployment rates, collateral values or other factors. However, we have considered how certain qualitative factors may affect future credit losses and have incorporated our judgement of the effect of such factors into our estimates.

Effective January 1, 2020, the Company adopted Accounting Standards Codification ("ASC") 326, which changes the criteria under which credit losses on financial instruments (such as the Company’s finance receivables) are measured. ASC 326 introduced a new credit reserving model known as the Current Expected Credit Loss (“CECL”) model, which replaces the incurred loss impairment methodology previously used under U.S. GAAP with a methodology that records currently the expected lifetime credit losses on financial instruments. The adoption of CECL required that we establish an allowance for the remaining expected lifetime credit losses on the portion of the Company’s receivable portfolio for which the Company was not already using fair value accounting. We refer to that portion, which is those receivables that were originated prior to January 2018, as our “legacy portfolio”. To comply with CECL, the Company recorded an addition to its allowance for finance credit losses of $127.0 million. The offset to the addition to the allowance for finance credit losses was a tax affected reduction to retained earnings using the modified retrospective method.

The following table presents the amortized cost basis of our finance receivables by annual vintage as of June 30, 2021 and December 31, 2020.


	June 30,		December 31,
	2021		2020
	(In thousands)
Annual Vintage Pool
2012 and prior	$	306	$	608
2013		2,257		4,483
2014		12,750		23,115
2015		48,953		78,457
2016		113,339		163,677
2017		162,865		220,967
	$	340,470	$	491,307

The following table presents a summary of the activity for the allowance for finance credit losses for the three-month and six-month periods ended June 30, 2021 and 2020:


	Three Months Ended						Six Months Ended
	June 30,						June 30,
		2021			2020			2021			2020
		(In thousands)						(In thousands)
Balance at beginning of period	$	73,497		$	114,073		$	80,790		$	11,640
Early adoption of CECL		–			–			–			127,000
Provision for credit losses on finance receivables		–			3,100			–			6,713
Charge-offs		(6,699	)		(23,308	)		(18,820	)		(57,522	)
Recoveries		5,444			4,737			10,272			10,771
Balance at end of period	$	72,242		$	98,602		$	72,242		$	98,602

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 in repossessed inventory that is not included in the allowance for finance credit losses:


	June 30,			December 31,
	2021			2020
	(In thousands)
Gross balance of repossessions in inventory	$	6,154		$	15,589
Allowance for losses on repossessed inventory		(3,337	)		(11,790	)
Net repossessed inventory included in other assets	$	2,817		$	3,799

(3) Securitization Trust Debt

6 Months Ended

Jun. 30, 2021

Securitization Trust Debt

(3) Securitization Trust Debt

(3) Securitization Trust Debt

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

Schedule of Long-term Debt Instruments
										Weighted
										Average
	Final	Receivables				Outstanding		Outstanding		Contractual
	Scheduled	Pledged at				Principal at		Principal at		Interest Rate
	Payment	June 30,		Initial		June 30,		December 31,		at June 30,
Series	Date (1)	2021 (2)		Principal		2021		2020		2021
	(Dollars in thousands)
CPS 2015-B	September 2022		–		250,000		–		17,984		–
CPS 2015-C	December 2022		–		300,000		–		28,529		–
CPS 2016-A	March 2023		–		329,460		24,551		37,158		7.65%
CPS 2016-B	June 2023		30,449		332,690		30,632		46,079		7.84%
CPS 2016-C	September 2023		32,501		318,500		32,010		47,325		8.30%
CPS 2016-D	April 2024		27,003		206,325		24,564		36,455		6.43%
CPS 2017-A	April 2024		30,562		206,320		27,466		40,619		6.41%
CPS 2017-B	December 2023		38,953		225,170		23,983		39,016		5.65%
CPS 2017-C	September 2024		41,567		224,825		35,619		47,553		5.16%
CPS 2017-D	June 2024		42,475		196,300		36,645		49,297		4.62%
CPS 2018-A	March 2025		46,399		190,000		40,124		53,549		4.41%
CPS 2018-B	December 2024		56,439		201,823		48,683		66,955		4.86%
CPS 2018-C	September 2025		64,829		230,275		58,318		77,345		4.93%
CPS 2018-D	June 2025		78,903		233,730		67,767		88,228		4.81%
CPS 2019-A	March 2026		98,774		254,400		84,920		114,373		4.63%
CPS 2019-B	June 2026		97,182		228,275		87,833		118,982		4.24%
CPS 2019-C	September 2026		114,238		243,513		106,354		142,080		3.47%
CPS 2019-D	December 2026		145,606		274,313		137,180		181,485		2.98%
CPS 2020-A	March 2027		141,542		260,000		139,485		184,944		3.03%
CPS 2020-B	June 2027		145,858		202,343		124,382		164,403		3.71%
CPS 2020-C	November 2027		196,785		252,200		187,529		231,961		1.91%
CPS 2021-A	March 2028		211,575		230,545		197,170		–		0.81%
CPS 2021-B	June 2028		228,935		240,000		228,585		–		1.05%
		$	1,870,574	$	5,631,007	$	1,743,799	$	1,814,320

_________________

(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 $442.0 million in 2021, $543.0 million in 2022, $451.5 million in 2023, $112.3 million in 2024, $119.4 million in 2025, $53.2 million in 2026, and $11.4 million in 2027.

(2)

Includes repossessed assets that are included in Other assets on our Unaudited Condensed Consolidated Balance Sheet.

Debt issuance costs of $10.9 million and $10.6 million as of June 30, 2021 and December 31, 2020, 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 Unaudited Condensed Consolidated Balance Sheets.

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

The terms of the securitization agreements related to the issuance of the securitization trust debt and the warehouse credit facilities require that we meet certain delinquency and credit loss criteria with respect to the pool of receivables, and certain of the agreements require that we maintain minimum levels of liquidity and not exceed maximum leverage levels. As of June 30, 2021, we were in compliance with all such covenants.

We are responsible for the administration and collection of the automobile contracts. The securitization agreements also require certain funds be held in restricted cash accounts to provide additional collateral for the borrowings, to be applied to make payments on the securitization trust debt or as pre-funding proceeds from a term securitization prior to the purchase of additional collateral. As of June 30, 2021, restricted cash under the various agreements totaled approximately $155.8 million. Interest expense on the securitization trust debt consists of the stated rate of interest plus amortization of additional costs of borrowing. Additional costs of borrowing include facility fees, amortization of deferred financing costs and discounts on notes sold. Deferred financing costs and discounts on notes sold related to the securitization trust debt are amortized using a level yield method. Accordingly, the effective cost of the securitization trust debt is greater than the contractual rate of interest disclosed above.

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 credit facilities. 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 other creditors.

On July 28, 2021 we completed our third securitization transaction of 2021. In the transaction, qualified institutional buyers purchased $291.0 million of asset-backed notes secured by $300.0 million in automobile receivables originated by CPS. The sold notes, issued by CPS Auto Receivables Trust 2021-C, consist of five classes. Ratings of the notes were provided by Standard & Poor’s and DBRS Morningstar, 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 1.55%.

(4) Debt

6 Months Ended

Jun. 30, 2021

Debt Disclosure [Abstract]

(4) Debt

(4) Debt

The terms and amounts of our other debt outstanding at June 30, 2021 and December 31, 2020 are summarized below:

Schedule of debt outstanding
				Amount Outstanding at
				June		December 31,
				2021		2020
				(In thousands)
Description	Interest Rate	Maturity

Warehouse lines of credit	5.50% over one month Libor (Minimum 6.50%)		N/A	$	–	$	42,558

	3.00% over one month Libor (Minimum 3.75%)		December 2022		45,642		45,689

	4.00% over a commercial paper rate (Minimum 5.00%)		December 2021		32,310		32,265

Residual interest financing	8.60%		January 2026		17,908		25,576

	7.86%		June 2026		50,000		–

Subordinated renewable notes	Weighted average rate of 9.67% and 10.09% at June 30, 2021 and December 31, 2020, respectively		Weighted average maturity of April 2023 and January 2023 at June 30, 2021 and December 31, 2020, respectively		26,005		21,323

				$	171,865	$	167,411

As of December 31, 2020, we had short-term funding capacity of $300 million, comprising three credit facilities. We repaid the outstanding balance for the facility first established in April 2015 at its maturity date in February 2021 and elected not to renew it. As of June 30, 2021, our short-term funding capacity is $200 million, comprising two credit facilities.

On June 30, 2021, we completed a $50 million securitization of residual interests from previously issued securitizations. In this residual interest financing transaction, qualified institutional buyers purchased $50.0 million of asset-backed notes secured by residual interests in eleven CPS securitizations consecutively issued from January 2018 and September 2020. The sold notes, issued by CPS Auto Securitization Trust 2021-1, consist of a single class with a coupon of 7.86%.

Unamortized debt issuance costs of $755,000 and $150,000 as of June 30, 2021 and December 31, 2020, respectively, have been excluded from the amount reported above for residual interest financing. Similarly, unamortized debt issuance costs of $907,000 and $1.5 million as of June 30, 2021 and December 31, 2020, respectively, have been excluded from the Warehouse lines of credit amounts in the table above. These debt issuance costs are presented as a direct deduction to the carrying amount of the debt on our Unaudited Condensed Consolidated Balance Sheets.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
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-Topic 470
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

(5) Interest Income and Interest Expense

6 Months Ended

Jun. 30, 2021

Transfers and Servicing [Abstract]

(5) Interest Income and Interest Expense

(5) Interest Income and Interest Expense

The following table presents the components of interest income:

Schedule of interest income
	Three Months Ended					Six Months Ended
	June 30,					June 30,
		2021		2020			2021			2020
		(In thousands)					(In thousands)
Interest on finance receivables	$	18,491	$	33,773		$	40,590		$	71,580
Interest on finance receivables at fair value		46,943		41,659			90,931			82,465
Mark to finance receivables measured at fair value		–		(9,549	)		(4,417	)		(19,899	)
Other interest income		6		120			12			644
Interest income	$	65,440	$	66,003		$	127,116		$	134,790

The following table presents the components of interest expense:

Schedule of interest expense
	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2021		2020		2021		2020
	(In thousands)				(In thousands)
Securitization trust debt	$	16,823	$	22,367	$	35,276	$	46,165
Warehouse lines of credit		1,021		2,675		2,335		4,437
Residual interest financing		467		920		1,033		1,857
Subordinated renewable notes		669		523		1,281		1,017
Interest expense	$	18,980	$	26,485	$	39,925	$	53,476

(6) Earnings Per Share

6 Months Ended

Jun. 30, 2021

Earnings per share:

(6) Earnings Per Share

(6) Earnings Per Share

Earnings per share for the three-month and six-month periods ended June 30, 2021 and 2020 were calculated using the weighted average number of shares outstanding for the related period. The following table reconciles the number of shares used in the computations of basic and diluted earnings per share for the three-month and six-month periods ended June 30, 2021 and 2020:

Computation of earnings per share
	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2021		2020		2021		2020
	(In thousands)				(In thousands)
Weighted average number of common shares outstanding during the period used to compute basic earnings per share		22,842		22,685		22,791	22,612

Incremental common shares attributable to exercise of outstanding options and warrants		2,288		1,002		2,257	1,171

Weighted average number of common shares used to compute diluted earnings per share		25,130		23,687		25,048	23,783

If the anti-dilutive effects of common stock equivalents were considered, shares included in the diluted earnings per share calculation for the three-month and six-month periods ended June 30, 2021 would have included an additional 6.0 million and 6.9 million shares, respectively, attributable to the exercise of outstanding options and warrants. For the three-month and six-month periods ended June 30, 2020, an additional 13.3 million and 13.1 million shares, respectively, would be included in the diluted earnings per share calculation.

(7) Income Taxes

6 Months Ended

Jun. 30, 2021

Income Tax Disclosure [Abstract]

(7) Income Taxes

(7) Income Taxes

We file numerous consolidated and separate income tax returns with the United States and with many states. With few exceptions, we are no longer subject to U.S. federal, state, or local examinations by tax authorities for years before 2013.

On March 27, 2020, the Coronavirus Aid, Relief and Economic Security (“CARES”) Act was adopted, providing wide ranging economic relief for individuals and businesses. One component of the CARES Act provides the Company with an opportunity to carry back net operating losses (“NOLs”) arising from 2018, 2019 and 2020 to the prior five tax years. The Company has such NOLs reflected on its balance sheet as a portion of deferred tax assets. The Company has previously valued its NOLs at the federal corporate income tax rate of 21%. However, the provisions of the CARES Act provide for NOL carryback claims to be calculated based on a rate of 35%, which was the federal corporate tax rate in effect for the carryback years. Consequently, the Company has revalued the benefit from its NOLs to reflect a 35% tax rate. The result of the revaluation of NOLs and other tax adjustments is a net tax benefit of $8.8 million, which is reflected in income taxes for the six-month period ending June 30, 2020.

As of June 30, 2021, and December 31, 2020, we had no unrecognized tax benefits for uncertain tax positions. We do not anticipate that total unrecognized tax benefits will significantly change due to any settlements of audits or expirations of statutes of limitations over the next 12 months.

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.

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 judgments, 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 $27.1 million as of June 30, 2021 is more likely than not based on forecasted future net earnings. Our net deferred tax asset of $27.1 million consists of approximately $15.9 million of net U.S. federal deferred tax assets and $11.2 million of net state deferred tax assets.

Income tax expense was $4.2 million and $6.9 million for the three months and six months ended June 30, 2021, representing effective income tax rates of 30% and 32%, respectively. Income tax expense was $1.7 million for the three months ended June 30, 2020. Income tax benefit was $6.0 million for the six months ended June 30, 2020, which includes net tax benefits of $8.8 million. Excluding the tax benefit, income tax expense would have been $2.8 million for the six months ended June 30, 2020, representing an effective income tax rate of 36%.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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Reference 5: http://www.xbrl.org/2003/role/disclosureRef
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 30
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
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-Paragraph 1
-Subparagraph (SX 210.4-08(h)(2))
-URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

+ Details

(8) Legal Proceedings

6 Months Ended

Jun. 30, 2021

Commitments and Contingencies Disclosure [Abstract]

(8) 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 June 30, 2020, our best estimate of probable incurred losses for legal contingencies, including the matters identified above, and consumer claims. 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 June 30, 2021 is immaterial, and that the range of reasonably possible losses for the legal proceedings and contingencies we face, including those described or identified above, as of June 30, 2021 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.

(9) Fair Value Measurements

6 Months Ended

Jun. 30, 2021

Fair Value Disclosures [Abstract]

(9) 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 would be 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 effect on our fair value measurement.

For the quarter ended June 30, 2021, the Company evaluated the appropriate fair value and future earnings rate of existing receivables compared to recently acquired receivables and our assessment of potential additional future net losses on the portfolio of finance receivables carried at fair value and did not record a mark down to that portfolio.

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


	Three Months Ended						Six Months Ended
	June 30,						June 30,
		2021			2020			2021			2020
		(In thousands)						(In thousands)
Balance at beginning of period	$	1,533,723		$	1,559,697		$	1,523,726		$	1,444,038
Finance receivables at fair value acquired during period		279,658			134,447			485,117			399,729
Payments received on finance receivables at fair value		(199,419	)		(112,505	)		(355,439	)		(222,063	)
Net interest income accretion on fair value receivables		(31,787	)		(34,441	)		(66,812	)		(64,156	)
Mark to fair value		–			(9,549	)		(4,417	)		(19,899	)
Balance at end of period	$	1,582,175		$	1,537,649		$	1,582,175		$	1,537,649

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


	June 30, 2021				December 31, 2020
	Contractual		Fair		Contractual		Fair
	Balance		Value		Balance		Value
	(In thousands)

Finance receivables measured at fair value	$	1,768,988	$	1,582,175	$	1,668,076	$	1,523,726

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


Financial Instrument	Fair Values as of					Inputs as of
		June 30,		December 31,		June 30,	December 31,
		2021		2020	Unobservable Inputs	2021	2020
	(In thousands)
Assets:
Finance receivables measured at fair value	$	1,582,175	$	1,523,726	Discount rate	11.0% - 11.3%	10.4% - 11.1%
					Cumulative net losses	15.4% - 18.4%	15.3% - 18.4%

The following table summarizes the delinquency status of these finance receivables measured at fair value as of June 30, 2021 and December 31, 2020:


	June 30,		December 31,
	2021		2020
	(In thousands)
Delinquency Status
Current	$	1,646,257	$	1,505,486
31 - 60 days		80,719		96,296
61 - 90 days		23,034		36,436
91 + days		5,205		9,607
Repo		13,773		20,251
	$	1,768,988	$	1,668,076

Repossessed vehicle inventory, which is included in Other assets on our unaudited condensed consolidated balance sheet, is measured at fair value using level 2 assumptions based on our actual loss experience on sale of repossessed vehicles. At June 30, 2021 the finance receivables related to the repossessed vehicles in inventory totaled $6.1 million. We have applied a valuation adjustment, or loss allowance, of $3.3 million, which is based on a recovery rate of approximately 46%, resulting in an estimated fair value and carrying amount of $2.8 million. The fair value and carrying amount of the repossessed inventory at December 31, 2020 was $3.8 million after applying a valuation adjustment of $11.8 million.

There were no transfers in or out of level 1, level 2 or level 3 assets and liabilities for the six months ended June 30, 2021 and 2020.

The estimated fair values of financial assets and liabilities at June 30, 2021 and December 31, 2020, were as follows:


	As of June 30, 2021
Financial Instrument	(In thousands)
	Carrying		Fair Value Measurements Using:
	Value		Level 1		Level 2		Level 3		Total
Assets:
Cash and cash equivalents	$	43,131	$	43,131	$	–	$	–	$	43,131
Restricted cash and equivalents		155,776		155,776		–		–		155,776
Finance receivables, net		268,228		–		–		270,271		270,271
Accrued interest receivable		3,601		–		–		3,601		3,601
Liabilities:
Warehouse lines of credit	$	77,044	$	–	$	–	$	77,044	$	77,044
Accrued interest payable		4,582		–		–		4,582		4,582
Securitization trust debt		1,732,879		–		–		1,769,682		1,769,682
Subordinated renewable notes		26,005		–		–		26,005		26,005

	As of December 31, 2020
Financial Instrument	(In thousands)
	Carrying		Fair Value Measurements Using:
	Value		Level 1		Level 2		Level 3		Total
Assets:
Cash and cash equivalents	$	13,466	$	13,466	$	–	$	–	$	13,466
Restricted cash and equivalents		130,686		130,686		–		–		130,686
Finance receivables, net		411,343		–		–		429,972		429,972
Accrued interest receivable		5,017		–		–		5,017		5,017
Liabilities:
Warehouse lines of credit	$	118,999	$	–	$	–	$	118,999	$	118,999
Accrued interest payable		4,919		–		–		4,919		4,919
Securitization trust debt		1,803,673		–		–		1,862,630		1,862,630
Subordinated renewable notes		21,323		–		–		21,323		21,323

(1) Summary of Significant Accounting Policies (Policies)

6 Months Ended

Jun. 30, 2021

Accounting Policies [Abstract]

Description of Business

Description of Business

Basis of Presentation

Basis of Presentation

Use of Estimates

Use of Estimates

Finance Receivables Measured at Fair Value

Finance Receivables Measured at Fair Value

Other Income

Other Income

The following table presents the primary components of Other Income for the three-month and six-month periods ending June 30, 2021 and 2020:

Schedule of other income
	Three Months Ended				Six Months Ended
	June 30,				June 30,
		2021		2020		2021		2020
		(In thousands)				(In thousands)
Direct mail revenues	$	890	$	501	$	1,869	$	1,684
Convenience fee revenue		180		530		420		1,060
Recoveries on previously charged-off contracts		45		50		60		75
Sales tax refunds		118		208		289		409
Other		96		–		127		41
Other income for the period	$	1,329	$	1,289	$	2,765	$	3,269

Leases

Leases

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


	June 30,			December 31,
	2021			2020
		(In thousands)
Operating Leases
Operating lease right-of-use assets	$	23,850		$	23,735
Less: Accumulated amortization right-of-use assets		(15,668	)		(12,792	)
Operating lease right-of-use assets, net	$	8,182		$	10,943

Operating lease liabilities	$	(9,143	)	$	(12,096	)

Finance Leases
Property and equipment, at cost	$	3,407		$	3,407
Less: Accumulated depreciation		(1,788	)		(1,226	)
Property and equipment, net	$	1,619		$	2,181

Finance lease liabilities	$	(1,691	)	$	(2,243	)

Weighted Average Discount Rate
Operating lease		5.0%			5.0%
Finance lease		6.5%			6.5%

Maturities of leases
Maturities of lease liabilities were as follows:
(In thousands)		Operating			Finance
Year Ending December 31,		Lease			Lease
2021 (excluding the six months ended June 30, 2021)	$	3,659		$	613
2022		6,092			1,050
2023		1,423			84
2024		445			26
2025		308			9
Thereafter		3			–
Total undiscounted lease payments		11,930			1,782
Less amounts representing interest		(2,787	)		(91	)
Lease Liability	$	9,143		$	1,691

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

Lease information
	Three Months Ended				Six Months Ended
	June 30,				June 30,
		2021		2020		2021		2020
		(In thousands)				(In thousands)
Operating lease cost	$	1,793	$	1,885	$	3,630	$	3,769
Finance lease cost		308		293		616		572
Total lease cost	$	2,101	$	2,178	$	4,246	$	4,341

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


	Three Months Ended				Six Months Ended
	June 30,				June 30,
		2021		2020		2021		2020
Cash paid for amounts included in the measurement of lease liabilities:		(In thousands)				(In thousands)
Operating cash flows from operating leases	$	1,892	$	1,932	$	3,822	$	3,858
Operating cash flows from finance leases		278		248		552		481
Financing cash flows from finance leases		30		45		65		91

Stock-based Compensation

Stock-based Compensation

The following represents stock option activity for the six months ended June 30, 2021:


						Weighted
						Average
	Number of			Weighted		Remaining
	Shares			Average		Contractual
	(in thousands)			Exercise Price		Term
Options outstanding at the beginning of period		15,977		$	4.46	N/A
Granted		–			–	N/A
Exercised		(676	)		1.66	N/A
Forfeited		(272	)		5.07	N/A
Options outstanding at the end of period		15,029		$	4.57	2.38 years

Options exercisable at the end of period		12,741		$	4.85	1.86 years

The following table presents the price distribution of stock options outstanding and exercisable for the years ended June 30, 2021 and December 31, 2020:


	Number of shares as of			Number of shares as of
	June 30, 2021			December 31, 2020
		Outstanding	Exercisable		Outstanding	Exercisable
Range of exercise prices:		(In thousands)			(In thousands)
$0.95 - $1.99		1,390	1,390		1,904	1,904
$2.00 - $2.99		1,570	528		1,570	180
$3.00 - $3.99		4,774	3,469		4,973	3,306
$4.00 - $4.99		1,510	1,510		1,540	1,217
$5.00 - $5.99		–	–		–	-
$6.00 - $6.99		4,685	4,685		4,770	4,770
$7.00 - $7.99		1,190	1,190		1,220	1,220

Total shares		15,119	12,772		15,977	12,597

Purchases of Company Stock

Purchases of Company Stock

The table below describes the purchase of our common stock for the six-month ended June 30, 2021 and 2020:

Schedule of purchases of company stock
	Six Months Ended
	June 30, 2021				June 30, 2020
		Shares		Avg. Price		Shares		Avg. Price
Open market purchases		301,088	$	4.18		25,113	$	2.85
Shares redeemed upon net exercise of stock options		56,983		4.47		46,909		2.86
Total stock purchases		358,071	$	4.42		72,022	$	2.85

Reclassifications

Reclassifications

Some items in the prior year financial statements were reclassified to conform to the current presentation. Reclassifications had no effect on net income or shareholders’ equity.

Financial Covenants

Financial Covenants

Provision for Contingent Liabilities

Provision for Contingent Liabilities

Coronavirus Pandemic

Coronavirus Pandemic

(1) Summary of Significant Accounting Policies (Tables)

6 Months Ended

Jun. 30, 2021

Accounting Policies [Abstract]

Schedule of other income

Schedule of other income
	Three Months Ended				Six Months Ended
	June 30,				June 30,
		2021		2020		2021		2020
		(In thousands)				(In thousands)
Direct mail revenues	$	890	$	501	$	1,869	$	1,684
Convenience fee revenue		180		530		420		1,060
Recoveries on previously charged-off contracts		45		50		60		75
Sales tax refunds		118		208		289		409
Other		96		–		127		41
Other income for the period	$	1,329	$	1,289	$	2,765	$	3,269

Supplemental balance sheet information related to leases


	June 30,			December 31,
	2021			2020
		(In thousands)
Operating Leases
Operating lease right-of-use assets	$	23,850		$	23,735
Less: Accumulated amortization right-of-use assets		(15,668	)		(12,792	)
Operating lease right-of-use assets, net	$	8,182		$	10,943

Operating lease liabilities	$	(9,143	)	$	(12,096	)

Finance Leases
Property and equipment, at cost	$	3,407		$	3,407
Less: Accumulated depreciation		(1,788	)		(1,226	)
Property and equipment, net	$	1,619		$	2,181

Finance lease liabilities	$	(1,691	)	$	(2,243	)

Weighted Average Discount Rate
Operating lease		5.0%			5.0%
Finance lease		6.5%			6.5%

Maturities of leases

Maturities of leases
Maturities of lease liabilities were as follows:
(In thousands)		Operating			Finance
Year Ending December 31,		Lease			Lease
2021 (excluding the six months ended June 30, 2021)	$	3,659		$	613
2022		6,092			1,050
2023		1,423			84
2024		445			26
2025		308			9
Thereafter		3			–
Total undiscounted lease payments		11,930			1,782
Less amounts representing interest		(2,787	)		(91	)
Lease Liability	$	9,143		$	1,691

Lease information

Lease information
	Three Months Ended				Six Months Ended
	June 30,				June 30,
		2021		2020		2021		2020
		(In thousands)				(In thousands)
Operating lease cost	$	1,793	$	1,885	$	3,630	$	3,769
Finance lease cost		308		293		616		572
Total lease cost	$	2,101	$	2,178	$	4,246	$	4,341

Supplemental cash flow information related to leases


	Three Months Ended				Six Months Ended
	June 30,				June 30,
		2021		2020		2021		2020
Cash paid for amounts included in the measurement of lease liabilities:		(In thousands)				(In thousands)
Operating cash flows from operating leases	$	1,892	$	1,932	$	3,822	$	3,858
Operating cash flows from finance leases		278		248		552		481
Financing cash flows from finance leases		30		45		65		91

Share-based Payment Arrangement, Option, Activity


						Weighted
						Average
	Number of			Weighted		Remaining
	Shares			Average		Contractual
	(in thousands)			Exercise Price		Term
Options outstanding at the beginning of period		15,977		$	4.46	N/A
Granted		–			–	N/A
Exercised		(676	)		1.66	N/A
Forfeited		(272	)		5.07	N/A
Options outstanding at the end of period		15,029		$	4.57	2.38 years

Options exercisable at the end of period		12,741		$	4.85	1.86 years

Schedule of stock options outstanding and exercisable


	Number of shares as of			Number of shares as of
	June 30, 2021			December 31, 2020
		Outstanding	Exercisable		Outstanding	Exercisable
Range of exercise prices:		(In thousands)			(In thousands)
$0.95 - $1.99		1,390	1,390		1,904	1,904
$2.00 - $2.99		1,570	528		1,570	180
$3.00 - $3.99		4,774	3,469		4,973	3,306
$4.00 - $4.99		1,510	1,510		1,540	1,217
$5.00 - $5.99		–	–		–	-
$6.00 - $6.99		4,685	4,685		4,770	4,770
$7.00 - $7.99		1,190	1,190		1,220	1,220

Total shares		15,119	12,772		15,977	12,597

Schedule of purchases of company stock

Schedule of purchases of company stock
	Six Months Ended
	June 30, 2021				June 30, 2020
		Shares		Avg. Price		Shares		Avg. Price
Open market purchases		301,088	$	4.18		25,113	$	2.85
Shares redeemed upon net exercise of stock options		56,983		4.47		46,909		2.86
Total stock purchases		358,071	$	4.42		72,022	$	2.85

(2) Finance Receivables (Tables)

6 Months Ended

Jun. 30, 2021

Finance Receivables

Schedule of finance receivables

Schedule of finance receivables
	June 30,		December 31,
	2021		2020
Finance receivables	(In thousands)
Automobile finance receivables, net of unearned interest	$	340,470	$	491,307
Unearned acquisition fees and originations costs		–		826
Finance receivables	$	340,470	$	492,133

Schedule of delinquency status of finance receivables


	June 30,		December 31,
	2021		2020
	(In thousands)
Delinquency Status
Current	$	294,043	$	406,693
31 - 60 days		34,437		56,572
61 - 90 days		10,093		22,660
91 + days		1,897		5,382
	$	340,470	$	491,307

Schedule of amortized cost basis of finance receivables


	June 30,		December 31,
	2021		2020
	(In thousands)
Annual Vintage Pool
2012 and prior	$	306	$	608
2013		2,257		4,483
2014		12,750		23,115
2015		48,953		78,457
2016		113,339		163,677
2017		162,865		220,967
	$	340,470	$	491,307

Schedule of allowance for finance credit losses


	Three Months Ended						Six Months Ended
	June 30,						June 30,
		2021			2020			2021			2020
		(In thousands)						(In thousands)
Balance at beginning of period	$	73,497		$	114,073		$	80,790		$	11,640
Early adoption of CECL		–			–			–			127,000
Provision for credit losses on finance receivables		–			3,100			–			6,713
Charge-offs		(6,699	)		(23,308	)		(18,820	)		(57,522	)
Recoveries		5,444			4,737			10,272			10,771
Balance at end of period	$	72,242		$	98,602		$	72,242		$	98,602

Schedule of allowance for losses on repossessed inventory


	June 30,			December 31,
	2021			2020
	(In thousands)
Gross balance of repossessions in inventory	$	6,154		$	15,589
Allowance for losses on repossessed inventory		(3,337	)		(11,790	)
Net repossessed inventory included in other assets	$	2,817		$	3,799

(3) Securitization Trust Debt (Tables)

6 Months Ended

Jun. 30, 2021

Securitization Trust Debt

Schedule of Long-term Debt Instruments

Schedule of Long-term Debt Instruments
										Weighted
										Average
	Final	Receivables				Outstanding		Outstanding		Contractual
	Scheduled	Pledged at				Principal at		Principal at		Interest Rate
	Payment	June 30,		Initial		June 30,		December 31,		at June 30,
Series	Date (1)	2021 (2)		Principal		2021		2020		2021
	(Dollars in thousands)
CPS 2015-B	September 2022		–		250,000		–		17,984		–
CPS 2015-C	December 2022		–		300,000		–		28,529		–
CPS 2016-A	March 2023		–		329,460		24,551		37,158		7.65%
CPS 2016-B	June 2023		30,449		332,690		30,632		46,079		7.84%
CPS 2016-C	September 2023		32,501		318,500		32,010		47,325		8.30%
CPS 2016-D	April 2024		27,003		206,325		24,564		36,455		6.43%
CPS 2017-A	April 2024		30,562		206,320		27,466		40,619		6.41%
CPS 2017-B	December 2023		38,953		225,170		23,983		39,016		5.65%
CPS 2017-C	September 2024		41,567		224,825		35,619		47,553		5.16%
CPS 2017-D	June 2024		42,475		196,300		36,645		49,297		4.62%
CPS 2018-A	March 2025		46,399		190,000		40,124		53,549		4.41%
CPS 2018-B	December 2024		56,439		201,823		48,683		66,955		4.86%
CPS 2018-C	September 2025		64,829		230,275		58,318		77,345		4.93%
CPS 2018-D	June 2025		78,903		233,730		67,767		88,228		4.81%
CPS 2019-A	March 2026		98,774		254,400		84,920		114,373		4.63%
CPS 2019-B	June 2026		97,182		228,275		87,833		118,982		4.24%
CPS 2019-C	September 2026		114,238		243,513		106,354		142,080		3.47%
CPS 2019-D	December 2026		145,606		274,313		137,180		181,485		2.98%
CPS 2020-A	March 2027		141,542		260,000		139,485		184,944		3.03%
CPS 2020-B	June 2027		145,858		202,343		124,382		164,403		3.71%
CPS 2020-C	November 2027		196,785		252,200		187,529		231,961		1.91%
CPS 2021-A	March 2028		211,575		230,545		197,170		–		0.81%
CPS 2021-B	June 2028		228,935		240,000		228,585		–		1.05%
		$	1,870,574	$	5,631,007	$	1,743,799	$	1,814,320

_________________

(1)

(2)

Includes repossessed assets that are included in Other assets on our Unaudited Condensed Consolidated Balance Sheet.

- 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
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-Name Accounting Standards Codification
-Topic 210
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Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 3
-Subparagraph (SX 210.12-04(a))
-URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e24072-122690

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
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-Name Accounting Standards Codification
-Topic 835
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Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
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-Name Accounting Standards Codification
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Reference 5: http://www.xbrl.org/2003/role/exampleRef
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Reference 7: http://www.xbrl.org/2003/role/exampleRef
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Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef
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Reference 9: http://fasb.org/us-gaap/role/ref/legacyRef
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-URI http://asc.fasb.org/extlink&oid=123467817&loc=d3e21538-112644

Reference 10: 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=123599511&loc=d3e64711-112823

Reference 11: http://fasb.org/us-gaap/role/ref/legacyRef
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-Name Accounting Standards Codification
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-URI http://asc.fasb.org/extlink&oid=114775985&loc=d3e28878-108400

Reference 12: http://fasb.org/us-gaap/role/ref/legacyRef
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-Topic 505
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-URI http://asc.fasb.org/extlink&oid=123467817&loc=d3e21475-112644

+ Details

(4) Debt (Tables)

6 Months Ended

Jun. 30, 2021

Debt Disclosure [Abstract]

Schedule of debt outstanding

Schedule of debt outstanding
				Amount Outstanding at
				June		December 31,
				2021		2020
				(In thousands)
Description	Interest Rate	Maturity

Warehouse lines of credit	5.50% over one month Libor (Minimum 6.50%)		N/A	$	–	$	42,558

	3.00% over one month Libor (Minimum 3.75%)		December 2022		45,642		45,689

	4.00% over a commercial paper rate (Minimum 5.00%)		December 2021		32,310		32,265

Residual interest financing	8.60%		January 2026		17,908		25,576

	7.86%		June 2026		50,000		–

Subordinated renewable notes	Weighted average rate of 9.67% and 10.09% at June 30, 2021 and December 31, 2020, respectively		Weighted average maturity of April 2023 and January 2023 at June 30, 2021 and December 31, 2020, respectively		26,005		21,323

				$	171,865	$	167,411

(5) Interest Income and Interest Expense (Tables)

6 Months Ended

Jun. 30, 2021

Transfers and Servicing [Abstract]

Schedule of interest income

Schedule of interest income
	Three Months Ended					Six Months Ended
	June 30,					June 30,
		2021		2020			2021			2020
		(In thousands)					(In thousands)
Interest on finance receivables	$	18,491	$	33,773		$	40,590		$	71,580
Interest on finance receivables at fair value		46,943		41,659			90,931			82,465
Mark to finance receivables measured at fair value		–		(9,549	)		(4,417	)		(19,899	)
Other interest income		6		120			12			644
Interest income	$	65,440	$	66,003		$	127,116		$	134,790

Schedule of interest expense

Schedule of interest expense
	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2021		2020		2021		2020
	(In thousands)				(In thousands)
Securitization trust debt	$	16,823	$	22,367	$	35,276	$	46,165
Warehouse lines of credit		1,021		2,675		2,335		4,437
Residual interest financing		467		920		1,033		1,857
Subordinated renewable notes		669		523		1,281		1,017
Interest expense	$	18,980	$	26,485	$	39,925	$	53,476

(6) Earnings Per Share (Tables)

6 Months Ended

Jun. 30, 2021

Earnings per share:

Computation of earnings per share

Computation of earnings per share
	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2021		2020		2021		2020
	(In thousands)				(In thousands)
Weighted average number of common shares outstanding during the period used to compute basic earnings per share		22,842		22,685		22,791	22,612

Incremental common shares attributable to exercise of outstanding options and warrants		2,288		1,002		2,257	1,171

Weighted average number of common shares used to compute diluted earnings per share		25,130		23,687		25,048	23,783

(9) Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2021

Fair Value Disclosures [Abstract]

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


	Three Months Ended						Six Months Ended
	June 30,						June 30,
		2021			2020			2021			2020
		(In thousands)						(In thousands)
Balance at beginning of period	$	1,533,723		$	1,559,697		$	1,523,726		$	1,444,038
Finance receivables at fair value acquired during period		279,658			134,447			485,117			399,729
Payments received on finance receivables at fair value		(199,419	)		(112,505	)		(355,439	)		(222,063	)
Net interest income accretion on fair value receivables		(31,787	)		(34,441	)		(66,812	)		(64,156	)
Mark to fair value		–			(9,549	)		(4,417	)		(19,899	)
Balance at end of period	$	1,582,175		$	1,537,649		$	1,582,175		$	1,537,649

Schedule of finance receivables to their contractual balances


	June 30, 2021				December 31, 2020
	Contractual		Fair		Contractual		Fair
	Balance		Value		Balance		Value
	(In thousands)

Finance receivables measured at fair value	$	1,768,988	$	1,582,175	$	1,668,076	$	1,523,726

Schedule of level 3 fair value measurements


Financial Instrument	Fair Values as of					Inputs as of
		June 30,		December 31,		June 30,	December 31,
		2021		2020	Unobservable Inputs	2021	2020
	(In thousands)
Assets:
Finance receivables measured at fair value	$	1,582,175	$	1,523,726	Discount rate	11.0% - 11.3%	10.4% - 11.1%
					Cumulative net losses	15.4% - 18.4%	15.3% - 18.4%

Schedule of delinquency status of finance receivables measured at fair value


	June 30,		December 31,
	2021		2020
	(In thousands)
Delinquency Status
Current	$	1,646,257	$	1,505,486
31 - 60 days		80,719		96,296
61 - 90 days		23,034		36,436
91 + days		5,205		9,607
Repo		13,773		20,251
	$	1,768,988	$	1,668,076

Schedule of estimated fair values of financial assets and liabilities


	As of June 30, 2021
Financial Instrument	(In thousands)
	Carrying		Fair Value Measurements Using:
	Value		Level 1		Level 2		Level 3		Total
Assets:
Cash and cash equivalents	$	43,131	$	43,131	$	–	$	–	$	43,131
Restricted cash and equivalents		155,776		155,776		–		–		155,776
Finance receivables, net		268,228		–		–		270,271		270,271
Accrued interest receivable		3,601		–		–		3,601		3,601
Liabilities:
Warehouse lines of credit	$	77,044	$	–	$	–	$	77,044	$	77,044
Accrued interest payable		4,582		–		–		4,582		4,582
Securitization trust debt		1,732,879		–		–		1,769,682		1,769,682
Subordinated renewable notes		26,005		–		–		26,005		26,005

	As of December 31, 2020
Financial Instrument	(In thousands)
	Carrying		Fair Value Measurements Using:
	Value		Level 1		Level 2		Level 3		Total
Assets:
Cash and cash equivalents	$	13,466	$	13,466	$	–	$	–	$	13,466
Restricted cash and equivalents		130,686		130,686		–		–		130,686
Finance receivables, net		411,343		–		–		429,972		429,972
Accrued interest receivable		5,017		–		–		5,017		5,017
Liabilities:
Warehouse lines of credit	$	118,999	$	–	$	–	$	118,999	$	118,999
Accrued interest payable		4,919		–		–		4,919		4,919
Securitization trust debt		1,803,673		–		–		1,862,630		1,862,630
Subordinated renewable notes		21,323		–		–		21,323		21,323

(1) Summary of Significant Accounting Policies (Details - Other income) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Other income for the period	$ 1,329	$ 1,289	$ 2,765	$ 3,269
Direct Mail Revenues [Member]
Other income for the period	890	501	1,869	1,684
Convenience Fee Revenue [Member]
Other income for the period	180	530	420	1,060
Recoveries on previously charged-off contracts [Member]
Other income for the period	45	50	60	75
Sales Tax Refunds [Member]
Other income for the period	118	208	289	409
Other Income [Member]
Other income for the period	$ 96	$ 0	$ 127	$ 41

(1) Summary of Significant Accounting Policies (Details - Supplemental balance sheet information related to leases) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Operating Leases
Operating lease right-of-use assets	$ 23,850	$ 23,735
Less: Accumulated amortization right-of-use assets	15,668	12,792
Operating lease right-of-use assets, net	8,182	10,943
Operating lease liabilities	(9,143)	(12,096)
Finance Leases
Property and equipment, at cost	3,407	3,407
Less: Accumulated depreciation	1,788	1,226
Property and equipment, net	1,619	2,181
Finance lease liabilities	$ (1,691)	$ (2,243)
Operating lease	5.00%	5.00%
Finance lease	6.50%	6.50%

(1) Summary of Significant Accounting Policies (Details - Maturities of lease liabilities) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Lease Liability	$ 9,143	$ 12,096
Lease Liability	1,691	$ 2,243
Operating Lease [Member]
2021 (excluding the six months ended June 30, 2021)	3,659
2022	6,092
2023	1,423
2024	445
2025	308
Thereafter	3
Total undiscounted lease payments	11,930
Less amounts representing interest	(2,787)
Lease Liability	9,143
Finance Lease [Member]
2021 (excluding the six months ended June 30, 2021)	613
2022	1,050
2023	84
2024	26
2025	9
Thereafter	0
Total undiscounted lease payments	1,782
Less amounts representing interest	(91)
Lease Liability	$ 1,691

(1) Summary of Significant Accounting Policies (Details - Lease cost) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Accounting Policies [Abstract]
Operating lease cost	$ 1,793	$ 1,885	$ 3,630	$ 3,769
Finance lease cost	308	293	616	572
Total lease cost	$ 2,101	$ 2,178	$ 4,246	$ 4,341

(1) Summary of Significant Accounting Policies (Details - Cash flow) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$ 1,892	$ 1,932	$ 3,822	$ 3,858
Operating cash flows from finance leases	278	248	552	481
Financing cash flows from finance leases	$ 30	$ 45	$ 65	$ 91

(1) Summary of Significant Accounting Policies (Details - Option activity) - $ / shares	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options outstanding at the beginning of period	15,977,000
Exercised	(676,000)	(256,600)
Options outstanding at the end of period	15,119,000
Options exercisable at the end of period	12,772,000		12,597,000
Equity Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options outstanding at the beginning of period	15,977,000
Options outstanding at the beginning of period	$ 4.46
Granted	0
Granted
Exercised	(676,000)
Exercised	$ 1.66
Forfeited	(272,000)
Forfeited	$ 5.07
Options outstanding at the end of period	15,029,000
Options outstanding at the end of period	$ 4.57
Options Outstanding, Weighted Average Remaining Contractual Term	2 years 4 months 17 days
Options exercisable at the end of period	12,741,000
Options exercisable at the end of period	$ 4.85
Options Exercisable, Weighted Average Remaining Contractual Term	1 year 10 months 9 days

(1) Summary of Significant Accounting Policies (Details - Options outstanding and exercisable) - shares shares in Thousands	Jun. 30, 2021	Dec. 31, 2020
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Number of shares, outstanding	15,119	15,977
Number of shares, exercisable	12,772	12,597
$0.95 - $1.99 [Member]
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Number of shares, outstanding	1,390	1,904
Number of shares, exercisable	1,390	1,904
$2.00 - $2.99 [Member]
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Number of shares, outstanding	1,570	1,570
Number of shares, exercisable	528	180
$3.00 - $3.99 [Member]
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Number of shares, outstanding	4,774	4,973
Number of shares, exercisable	3,469	3,306
$4.00 - $4.99 [Member]
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Number of shares, outstanding	1,510	1,540
Number of shares, exercisable	1,510	1,217
$5.00 - $5.99 [Member]
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Number of shares, outstanding	0	0
Number of shares, exercisable	0	(0)
$6.00 - $6.99 [Member]
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Number of shares, outstanding	4,685	4,770
Number of shares, exercisable	4,685	4,770
$7.00 - $7.99 [Member]
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Number of shares, outstanding	1,190	1,220
Number of shares, exercisable	1,190	1,220

(1) Summary of Significant Accounting Policies (Details - Stock purchases) - Common Stock [Member] - $ / shares	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
StockPurchasesLineItems [Line Items]
Total stock purchases, shares	358,071	72,022
Total stock purchases, average price per share	$ 4.42	$ 2.85
Open Market Purchases[Member]
StockPurchasesLineItems [Line Items]
Total stock purchases, shares	301,088	25,113
Total stock purchases, average price per share	$ 4.18	$ 2.85
Shares Redeemed [Member]
StockPurchasesLineItems [Line Items]
Total stock purchases, shares	56,983	46,909
Total stock purchases, average price per share	$ 4.47	$ 2.86

(1) Summary of Significant Accounting Policies (Details Narrative) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Accounting Policies [Abstract]
Stock-based compensation	$ 327	$ 412	$ 735	$ 898
Unrecognized stock-based compensation costs	2,400		$ 2,400
Weighted-average period for unrecognized costs			2 years 1 month 6 days
Intrinsic value options outstanding	12,300		$ 12,300
Intrinsic value of options exercisable	$ 8,900		$ 8,900
Options exercised			676,000	256,600
Intrinsic value of options exercised			$ 1,900	$ 285
Shares available for grant	453,000		453,000

(2) Finance Receivables (Details - Components of Finance Receivables) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Finance receivables
Automobile finance receivables, net of unearned interest	$ 340,470	$ 491,307
Unearned acquisition fees and originations costs	0	826
Finance receivables	$ 340,470	$ 492,133

(2) Finance Receivables (Details - Delinquency status) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Financing Receivable, Past Due [Line Items]
Total finance receivables with delinquency status	$ 340,470	$ 491,307
Financial Asset, 1 to 29 Days Past Due [Member]
Financing Receivable, Past Due [Line Items]
Finance receivables	294,043	406,693
Financial Asset, 30 to 59 Days Past Due [Member]
Financing Receivable, Past Due [Line Items]
Finance receivables	34,437	56,572
Financial Asset, 60 to 89 Days Past Due [Member]
Financing Receivable, Past Due [Line Items]
Finance receivables	10,093	22,660
Financial Asset, Equal to or Greater than 90 Days Past Due [Member]
Financing Receivable, Past Due [Line Items]
Finance receivables	$ 1,897	$ 5,382

- Definition

Amount, before allowance for credit loss, of financing receivable.

+ References + Details

(2) Finance Receivables (Details - Amortized Cost Basis) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Securities Financing Transaction [Line Items]
Amortized cost basis	$ 340,470	$ 491,307
Vintage Pool 2012 [Member]
Securities Financing Transaction [Line Items]
Amortized cost basis	306	608
Vintage Pool 2013 [Member]
Securities Financing Transaction [Line Items]
Amortized cost basis	2,257	4,483
Vintage Pool 2014 [Member]
Securities Financing Transaction [Line Items]
Amortized cost basis	12,750	23,115
Vintage Pool 2015 [Member]
Securities Financing Transaction [Line Items]
Amortized cost basis	48,953	78,457
Vintage Pool 2016 [Member]
Securities Financing Transaction [Line Items]
Amortized cost basis	113,339	163,677
Vintage Pool 2017 [Member]
Securities Financing Transaction [Line Items]
Amortized cost basis	$ 162,865	$ 220,967

(2) Finance Receivables (Details - Summary of activity) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Finance Receivables
Balance at beginning of period	$ 73,497	$ 114,073	$ 80,790	$ 11,640
Early adoption of CECL	0	0	0	127,000
Provision for credit losses on finance receivables	0	3,100	0	6,713
Charge-offs	(6,699)	(23,308)	(18,820)	(57,522)
Recoveries	5,444	4,737	10,272	10,771
Balance at end of period	$ 72,242	$ 98,602	$ 72,242	$ 98,602

- Definition

Amount of allowance for credit loss on financing receivable. Excludes allowance for financing receivable covered under loss sharing agreement.

+ References + Details

(2) Finance Receivables (Details - Repossessed inventory) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2021	Dec. 31, 2020
Finance Receivables
Gross balance of repossessions in inventory	$ 6,154	$ 15,589
Allowance for losses on repossessed inventory	(3,337)	(11,790)
Net repossessed inventory included in other assets	$ 2,817	$ 3,799

(2) Finance Receivables (Details Narrative) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Finance Receivables
Finance receivables, non accrual status	$ 1,900	$ 5,400
Allowance for finance credit losses	$ 127,000

(3) Securitization Trust Debt (Details) - USD ($)
$ in Thousands

6 Months Ended

Jun. 30, 2021

Dec. 31, 2020

Fair Value Measurement Inputs and Valuation Techniques [Line Items]

Receivables Pledged at end of period

^[1]

$ 1,870,574

Initial Principal

5,631,007

Outstanding Principal

1,743,799

$ 1,814,320

Expected finance receivable payments 2021

442,000

Expected finance receivable payments 2022

543,000

Expected finance receivable payments 2023

451,500

Expected finance receivable payments 2024

112,300

Expected finance receivable payments 2025

119,400

Expected finance receivable payments 2026

53,200

Expected finance receivable payments 2027

$ 11,400

CPS 2015-B [Member]

Fair Value Measurement Inputs and Valuation Techniques [Line Items]

Final Scheduled Payment Date

^[2]

September 2022

Receivables Pledged at end of period

^[1]

$ 0

Initial Principal

250,000

Outstanding Principal

$ 0

17,984

Weighted Average Contractual Interest Rate

CPS 2015-C [Member]

Fair Value Measurement Inputs and Valuation Techniques [Line Items]

Final Scheduled Payment Date

^[2]

December 2022

Receivables Pledged at end of period

^[1]

$ 0

Initial Principal

300,000

Outstanding Principal

$ 0

28,529

Weighted Average Contractual Interest Rate

CPS 2016-A [Member]

Fair Value Measurement Inputs and Valuation Techniques [Line Items]

Final Scheduled Payment Date

^[2]

March 2023

Receivables Pledged at end of period

^[1]

$ 0

Initial Principal

329,460

Outstanding Principal

$ 24,551

37,158

Weighted Average Contractual Interest Rate

7.65%

CPS 2016-B [Member]

Fair Value Measurement Inputs and Valuation Techniques [Line Items]

Final Scheduled Payment Date

^[2]

June 2023

Receivables Pledged at end of period

^[1]

$ 30,449

Initial Principal

332,690

Outstanding Principal

$ 30,632

46,079

Weighted Average Contractual Interest Rate

7.84%

CPS 2016-C [Member]

Fair Value Measurement Inputs and Valuation Techniques [Line Items]

Final Scheduled Payment Date

^[2]

September 2023

Receivables Pledged at end of period

^[1]

$ 32,501

Initial Principal

318,500

Outstanding Principal

$ 32,010

47,325

Weighted Average Contractual Interest Rate

8.30%

CPS 2016-D [Member]

Fair Value Measurement Inputs and Valuation Techniques [Line Items]

Final Scheduled Payment Date

^[2]

April 2024

Receivables Pledged at end of period

^[1]

$ 27,003

Initial Principal

206,325

Outstanding Principal

$ 24,564

36,455

Weighted Average Contractual Interest Rate

6.43%

CPS 2017-A [Member]

Fair Value Measurement Inputs and Valuation Techniques [Line Items]

Final Scheduled Payment Date

^[2]

April 2024

Receivables Pledged at end of period

^[1]

$ 30,562

Initial Principal

206,320

Outstanding Principal

$ 27,466

40,619

Weighted Average Contractual Interest Rate

6.41%

CPS 2017-B [Member]

Fair Value Measurement Inputs and Valuation Techniques [Line Items]

Final Scheduled Payment Date

^[2]

December 2023

Receivables Pledged at end of period

^[1]

$ 38,953

Initial Principal

225,170

Outstanding Principal

$ 23,983

39,016

Weighted Average Contractual Interest Rate

5.65%

CPS 2017-C [Member]

Fair Value Measurement Inputs and Valuation Techniques [Line Items]

Final Scheduled Payment Date

^[2]

September 2024

Receivables Pledged at end of period

^[1]

$ 41,567

Initial Principal

224,825

Outstanding Principal

$ 35,619

47,553

Weighted Average Contractual Interest Rate

5.16%

CPS 2017-D [Member]

Fair Value Measurement Inputs and Valuation Techniques [Line Items]

Final Scheduled Payment Date

^[2]

June 2024

Receivables Pledged at end of period

^[1]

$ 42,475

Initial Principal

196,300

Outstanding Principal

$ 36,645

49,297

Weighted Average Contractual Interest Rate

4.62%

CPS 2018-A [Member]

Fair Value Measurement Inputs and Valuation Techniques [Line Items]

Final Scheduled Payment Date

^[2]

March 2025

Receivables Pledged at end of period

^[1]

$ 46,399

Initial Principal

190,000

Outstanding Principal

$ 40,124

53,549

Weighted Average Contractual Interest Rate

4.41%

CPS 2018-B [Member]

Fair Value Measurement Inputs and Valuation Techniques [Line Items]

Final Scheduled Payment Date

^[2]

December 2024

Receivables Pledged at end of period

^[1]

$ 56,439

Initial Principal

201,823

Outstanding Principal

$ 48,683

66,955

Weighted Average Contractual Interest Rate

4.86%

CPS 2018-C [Member]

Fair Value Measurement Inputs and Valuation Techniques [Line Items]

Final Scheduled Payment Date

^[2]

September 2025

Receivables Pledged at end of period

^[1]

$ 64,829

Initial Principal

230,275

Outstanding Principal

$ 58,318

77,345

Weighted Average Contractual Interest Rate

4.93%

CPS 2018-D [Member]

Fair Value Measurement Inputs and Valuation Techniques [Line Items]

Final Scheduled Payment Date

^[2]

June 2025

Receivables Pledged at end of period

^[1]

$ 78,903

Initial Principal

233,730

Outstanding Principal

$ 67,767

88,228

Weighted Average Contractual Interest Rate

4.81%

CPS 2019-A [Member]

Fair Value Measurement Inputs and Valuation Techniques [Line Items]

Final Scheduled Payment Date

^[2]

March 2026

Receivables Pledged at end of period

^[1]

$ 98,774

Initial Principal

254,400

Outstanding Principal

$ 84,920

114,373

Weighted Average Contractual Interest Rate

4.63%

CPS 2019-B [Member]

Fair Value Measurement Inputs and Valuation Techniques [Line Items]

Final Scheduled Payment Date

^[2]

June 2026

Receivables Pledged at end of period

^[1]

$ 97,182

Initial Principal

228,275

Outstanding Principal

$ 87,833

118,982

Weighted Average Contractual Interest Rate

4.24%

CPS 2019-C [Member]

Fair Value Measurement Inputs and Valuation Techniques [Line Items]

Final Scheduled Payment Date

^[2]

September 2026

Receivables Pledged at end of period

^[1]

$ 114,238

Initial Principal

243,513

Outstanding Principal

$ 106,354

142,080

Weighted Average Contractual Interest Rate

3.47%

CPS 2019-D [Member]

Fair Value Measurement Inputs and Valuation Techniques [Line Items]

Final Scheduled Payment Date

^[2]

December 2026

Receivables Pledged at end of period

^[1]

$ 145,606

Initial Principal

274,313

Outstanding Principal

$ 137,180

181,485

Weighted Average Contractual Interest Rate

2.98%

CPS 2020-A [Member]

Fair Value Measurement Inputs and Valuation Techniques [Line Items]

Final Scheduled Payment Date

^[2]

March 2027

Receivables Pledged at end of period

^[1]

$ 141,542

Initial Principal

260,000

Outstanding Principal

$ 139,485

184,944

Weighted Average Contractual Interest Rate

3.03%

CPS 2020-B [Member]

Fair Value Measurement Inputs and Valuation Techniques [Line Items]

Final Scheduled Payment Date

^[2]

June 2027

Receivables Pledged at end of period

^[1]

$ 145,858

Initial Principal

202,343

Outstanding Principal

$ 124,382

164,403

Weighted Average Contractual Interest Rate

3.71%

CPS 2020-C [Member]

Fair Value Measurement Inputs and Valuation Techniques [Line Items]

Final Scheduled Payment Date

^[2]

November 2027

Receivables Pledged at end of period

^[1]

$ 196,785

Initial Principal

252,200

Outstanding Principal

$ 187,529

231,961

Weighted Average Contractual Interest Rate

1.91%

CPS 2021-A [Member]

Fair Value Measurement Inputs and Valuation Techniques [Line Items]

Final Scheduled Payment Date

^[2]

March 2028

Receivables Pledged at end of period

^[1]

$ 211,575

Initial Principal

230,545

Outstanding Principal

$ 197,170

Weighted Average Contractual Interest Rate

0.81%

CPS 2021-B

Fair Value Measurement Inputs and Valuation Techniques [Line Items]

Final Scheduled Payment Date

^[2]

June 2028

Receivables Pledged at end of period

^[1]

$ 228,935

Initial Principal

240,000

Outstanding Principal

$ 228,585

$ 0

Weighted Average Contractual Interest Rate

1.05%

[1]

Includes repossessed assets that are included in Other assets on our Unaudited Condensed Consolidated Balance Sheet.

[2]

(3) Securitization Trust Debt (Details Narrative) - USD ($)
$ in Thousands

Jul. 28, 2021

Jun. 30, 2021

Dec. 31, 2020

Subsequent Event [Line Items]

Debt issuance costs

$ 10,900

$ 10,600

Restricted cash under various agreements

155,800

Initial Principal

5,631,007

Receivables Pledged at end of period

^[1]

1,870,574

CPS 2021-B

Subsequent Event [Line Items]

Initial Principal

240,000

Receivables Pledged at end of period

^[1]

$ 228,935

Weighted Average Contractual Interest Rate

1.05%

Subsequent Event [Member] | C P S 2021 C [Member]

Subsequent Event [Line Items]

Initial Principal

$ 291,000

Weighted Average Contractual Interest Rate

1.55%

Subsequent Event [Member] | CPS 2021-B

Subsequent Event [Line Items]

Receivables Pledged at end of period

$ 300,000

[1]	Includes repossessed assets that are included in Other assets on our Unaudited Condensed Consolidated Balance Sheet.

(4) Debt (Details - Debt outstanding) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2021	Dec. 31, 2020
Line of Credit Facility [Line Items]
Warehouse lines of credit	$ 77,044	$ 118,999
Residual interest financing	67,153	25,426
Subordinated renewable notes	26,005	21,323
Total debt outstanding	$ 171,865	167,411
Warehouse Lines Of Credit 1 [Member]
Line of Credit Facility [Line Items]
Interest rate	5.50% over one month Libor (Minimum 6.50%)
Warehouse lines of credit		42,558
Warehouse Lines Of Credit 2 [Member]
Line of Credit Facility [Line Items]
Interest rate	3.00% over one month Libor (Minimum 3.75%)
Warehouse lines of credit	$ 45,642	45,689
Maturity date description	December 2022
Warehouse Lines Of Credit 3 [Member]
Line of Credit Facility [Line Items]
Interest rate	4.00% over a commercial paper rate (Minimum 5.00%)
Warehouse lines of credit	$ 32,310	32,265
Maturity date description	December 2021
Residual interest financing [Member]
Line of Credit Facility [Line Items]
Maturity date description	January 2026
Interest rate	8.60%
Residual interest financing	$ 17,908	25,576
Residual Interest Financing 1 [Member]
Line of Credit Facility [Line Items]
Maturity date description	June 2026
Interest rate	7.86%
Residual interest financing	$ 50,000	0
Subordinated renewable notes [Member]
Line of Credit Facility [Line Items]
Interest rate	Weighted average rate of 9.67% and 10.09% at June 30, 2021 and December 31, 2020, respectively
Maturity date description	Weighted average maturity of April 2023 and January 2023 at June 30, 2021 and December 31, 2020, respectively
Subordinated renewable notes	$ 26,005	$ 21,323

(4) Debt (Details Narrative) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Line of Credit Facility [Line Items]
Short term credit facility	$ 200,000	$ 300,000
Securitization of residual interests	50,000
Warehouse Lines Of Credit [Member]
Line of Credit Facility [Line Items]
Unamortized debt issuance costs	907	1,500
Asset Backed [Member]
Line of Credit Facility [Line Items]
Securitization of residual interests	50,000
Residual Interest Financings [Member]
Line of Credit Facility [Line Items]
Unamortized debt issuance costs	$ 755	$ 150

(5) Interest Income and Interest Expense (Details - Interest income) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Transfers and Servicing [Abstract]
Interest on finance receivables	$ 18,491	$ 33,773	$ 40,590	$ 71,580
Interest on finance receivables at fair value	46,943	41,659	90,931	82,465
Mark to finance receivables measured at fair value	0	(9,549)	(4,417)	(19,899)
Other interest income	6	120	12	644
Interest income	$ 65,440	$ 66,003	$ 127,116	$ 134,790

(5) Interest Income and Interest Expense (Details - Interest expense) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Securities Financing Transaction [Line Items]
Total interest expense	$ 18,980	$ 26,485	$ 39,925	$ 53,476
Securitization Trust Debt [Member]
Securities Financing Transaction [Line Items]
Total interest expense	16,823	22,367	35,276	46,165
Warehouse Lines Of Credit [Member]
Securities Financing Transaction [Line Items]
Total interest expense	1,021	2,675	2,335	4,437
Residual interest financing [Member]
Securities Financing Transaction [Line Items]
Total interest expense	467	920	1,033	1,857
Subordinated renewable notes [Member]
Securities Financing Transaction [Line Items]
Total interest expense	$ 669	$ 523	$ 1,281	$ 1,017

(6) Earnings Per Share (Details - Earnings Per Share) - shares	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Earnings per share:
Weighted average number of common shares outstanding during the period used to compute basic earnings per share	22,842	22,685	22,791	22,612
Incremental common shares attributable to exercise of outstanding options and warrants	2,288	1,002	2,257	1,171
Weighted average number of common shares used to compute diluted earnings per share	25,130	23,687	25,048	23,783

(6) Earnings Per Share (Details Narrative) - shares shares in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Earnings per share:
Antidilutive shares	6,000	13,300	6,900	13,100

(7) Income Taxes (Details Narrative) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020
Operating Loss Carryforwards [Line Items]
Current tax benefit				$ 8,800
Unrecognized Tax Benefits	$ 0		$ 0		$ 0
Net deferred tax asset	27,100		27,100
Deferred tax assets approximately	27,100		27,100
Income Tax Expense (Benefit)	$ 4,200	$ 1,700	$ 6,900	$ 6,000
Effective tax rate	30.00%		32.00%	36.00%
Domestic Tax Authority [Member]
Operating Loss Carryforwards [Line Items]
Net deferred tax asset	$ 15,900		$ 15,900
State and Local Jurisdiction [Member]
Operating Loss Carryforwards [Line Items]
Net deferred tax asset	$ 11,200		$ 11,200

(9) Fair Value Measurements (Details - Reconciliation of Finance Receivables) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Fair Value Disclosures [Abstract]
Balance at beginning of period	$ 1,533,723	$ 1,559,697	$ 1,523,726	$ 1,444,038
Finance receivables at fair value acquired during period	279,658	134,447	485,117	399,729
Payments received on finance receivables at fair value	(199,419)	(112,505)	(355,439)	(222,063)
Net interest income accretion on fair value receivables	(31,787)	(34,441)	(66,812)	(64,156)
Mark to fair value	0	(9,549)	(4,417)	(19,899)
Balance at end of period	$ 1,582,175	$ 1,537,649	$ 1,582,175	$ 1,537,649

(9) Fair Value Measurements (Details - Finance Receivables to Their Contractual Balances) - USD ($) $ in Thousands	Jun. 30, 2021	Mar. 31, 2021	Dec. 31, 2020	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2019
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Finance receivables measured at fair value	$ 1,582,175	$ 1,533,723	$ 1,523,726	$ 1,537,649	$ 1,559,697	$ 1,444,038
Reported Value Measurement [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Finance receivables measured at fair value	1,768,988		1,668,076
Portion at Fair Value Measurement [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Finance receivables measured at fair value	$ 1,582,175		$ 1,523,726

(9) Fair Value Measurements (Details - Level 3 Fair Value Measurements) - USD ($) $ in Thousands	Jun. 30, 2021	Mar. 31, 2021	Dec. 31, 2020	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2019
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Finance receivables measured at fair value	$ 1,582,175	$ 1,533,723	$ 1,523,726	$ 1,537,649	$ 1,559,697	$ 1,444,038
Portion at Fair Value Measurement [Member] \| Fair Value, Inputs, Level 3 [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Finance receivables measured at fair value	$ 1,582,175		$ 1,523,726
Portion at Fair Value Measurement [Member] \| Fair Value, Inputs, Level 3 [Member] \| Measurement Input, Discount Rate [Member] \| Minimum [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Unobservable Inputs	11.00%		10.40%
Portion at Fair Value Measurement [Member] \| Fair Value, Inputs, Level 3 [Member] \| Measurement Input, Discount Rate [Member] \| Maximum [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Unobservable Inputs	11.30%		11.10%
Portion at Fair Value Measurement [Member] \| Fair Value, Inputs, Level 3 [Member] \| Measurement Input Cumulative Net Losses [Member] \| Minimum [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Unobservable Inputs	15.40%		15.30%
Portion at Fair Value Measurement [Member] \| Fair Value, Inputs, Level 3 [Member] \| Measurement Input Cumulative Net Losses [Member] \| Maximum [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Unobservable Inputs	18.40%		18.40%

(9) Fair Value Measurements (Details - Delinquency status) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Financing Receivable, Past Due [Line Items]
Initial Principal	$ 1,768,988	$ 1,668,076
Financial Asset, Not Past Due [Member]
Financing Receivable, Past Due [Line Items]
Initial Principal	1,646,257	1,505,486
Financial Asset, 30 to 59 Days Past Due [Member]
Financing Receivable, Past Due [Line Items]
Initial Principal	80,719	96,296
Financial Asset, 60 to 89 Days Past Due [Member]
Financing Receivable, Past Due [Line Items]
Initial Principal	23,034	36,436
Financial Asset, Equal to or Greater than 90 Days Past Due [Member]
Financing Receivable, Past Due [Line Items]
Initial Principal	5,205	9,607
Repossessed Vehicles
Financing Receivable, Past Due [Line Items]
Initial Principal	$ 13,773	$ 20,251

(9) Fair Value Measurements (Details - Fair values) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Cash and cash equivalents	$ 43,131	$ 13,466
Restricted cash and equivalents	155,776	130,686
Finance receivables, net	270,271	429,972
Accrued interest receivable	3,601	5,017
Warehouse lines of credit	77,044	118,999
Accrued interest payable	4,582	4,919
Securitization trust debt	1,769,682	1,862,630
Subordinated renewable notes	26,005	21,323
Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Cash and cash equivalents	43,131	13,466
Restricted cash and equivalents	155,776	130,686
Finance receivables, net	0	0
Accrued interest receivable	0	0
Warehouse lines of credit	0	0
Accrued interest payable	0	0
Securitization trust debt	0	0
Subordinated renewable notes	0	0
Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Cash and cash equivalents	0	0
Restricted cash and equivalents	0	0
Finance receivables, net	0	0
Accrued interest receivable	0	0
Warehouse lines of credit	0	0
Accrued interest payable	0	0
Securitization trust debt	0	0
Subordinated renewable notes	0	0
Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Cash and cash equivalents	0	0
Restricted cash and equivalents	0	0
Finance receivables, net	270,271	429,972
Accrued interest receivable	3,601	5,017
Warehouse lines of credit	77,044	118,999
Accrued interest payable	4,582	4,919
Securitization trust debt	1,769,682	1,862,630
Subordinated renewable notes	26,005	21,323
Carrying Value [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Cash and cash equivalents	43,131	13,466
Restricted cash and equivalents	155,776	130,686
Finance receivables, net	268,228	411,343
Accrued interest receivable	3,601	5,017
Warehouse lines of credit	77,044	118,999
Accrued interest payable	4,582	4,919
Securitization trust debt	1,732,879	1,803,673
Subordinated renewable notes	$ 26,005	$ 21,323

(9) Fair Value Measurements (Details Narrative) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2021	Dec. 31, 2020
Inventory [Line Items]
Gross balance of repossessions in inventory	$ 6,154	$ 15,589
Allowance for losses on repossessed inventory	3,337	11,790
Net repossessed inventory included in other assets	2,800
Repossessed Vehicles
Inventory [Line Items]
Gross balance of repossessions in inventory	6,100
Allowance for losses on repossessed inventory	$ 3,300	11,800
Net repossessed inventory included in other assets		$ 3,800