0001683168-22-003191 | 10-Q | XBRL Viewer | Consumer Portfolio Services INC

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Cover - shares	3 Months Ended
Cover - shares	Mar. 31, 2022	Apr. 29, 2022
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Mar. 31, 2022
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2022
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		21,065,973

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
ASSETS
Cash and cash equivalents	$ 21,726	$ 29,928
Restricted cash and equivalents	164,550	146,620
Finance receivables measured at fair value	1,903,857	1,749,098
Finance receivables	186,745	232,390
Less: Allowance for finance credit losses	(45,001)	(56,206)
Finance receivables, net	141,744	176,184
Furniture and equipment, net	987	1,129
Deferred tax assets, net	18,913	19,575
Accrued interest receivable	1,673	2,269
Other assets	24,100	34,775
Total assets	2,277,550	2,159,578
Liabilities
Accounts payable and accrued expenses	56,988	43,648
Warehouse lines of credit	147,026	105,610
Residual interest financing	49,434	53,682
Securitization trust debt	1,813,478	1,759,972
Subordinated renewable notes	26,756	26,459
Total liabilities	2,093,682	1,989,371
COMMITMENTS AND CONTINGENCIES
Shareholders' Equity
Preferred Stock, Value, Issued	0	0
December 31, 2021, respectively	47,844	55,298
Retained earnings	137,646	116,531
Accumulated other comprehensive loss	(1,622)	(1,622)
Total stockholders’ equity	183,868	170,207
Total liability and stockholder’ equity	2,277,550	2,159,578
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

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Mar. 31, 2022	Dec. 31, 2021
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	21,292,393	21,143,764
Common Stock, Shares, Outstanding	21,292,393	21,143,764
Series A Preferred Stock [Member]
Preferred stock, par value (in dollars per share)	$ 1,000	$ 1,000
Preferred stock, authorized	5,000,000,000	5,000,000,000
Preferred stock, issued	0	0
Series B Preferred Stock [Member]
Preferred stock, par value (in dollars per share)	$ 1,000	$ 1,000
Preferred stock, authorized	1,870,000	1,870,000
Preferred stock, issued	0	0

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Revenues:
Interest income	$ 70,060	$ 66,093
Mark to finance receivables measured at fair value	2,400	(4,417)
Other income	1,906	1,436
Total revenues	74,366	63,112
Expenses:
Employee costs	22,152	20,159
General and administrative	8,231	7,748
Interest	16,400	20,946
Provision for credit losses	(9,400)	0
Sales	5,386	3,986
Occupancy	1,852	1,901
Depreciation and amortization	417	428
Total operating expenses	45,038	55,168
Income before income tax expense	29,328	7,944
Income tax expense	8,213	2,780
Net income	$ 21,115	$ 5,164
Earnings per share:
Basic	$ 0.99	$ 0.23
Diluted	$ 0.75	$ 0.21
Number of shares used in computing earnings per share:
Basic	21,221	22,741
Diluted	28,197	24,967

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Income Statement [Abstract]
Net income	$ 21,115	$ 5,164
Other comprehensive income/(loss); change in funded status of pension plan	0	0
Comprehensive income	$ 21,115	$ 5,164

- 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

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Cash flows from operating activities:
Net income	$ 21,115	$ 5,164
Adjustments to reconcile net income to net cash provided by operating activities:
Accretion of deferred acquisition fees and origination costs	0	251
Net interest income accretion on fair value receivables	31,204	35,025
Depreciation and amortization	417	428
Amortization of deferred financing costs	1,782	1,873
Mark to fair value of finance receivables measured at fair value	(2,400)	4,417
Provision for credit losses	(9,400)	0
Stock-based compensation expense	790	408
Changes in assets and liabilities:
Accrued interest receivable	596	1,273
Deferred tax assets, net	662	1,009
Other assets	10,194	8,244
Accounts payable and accrued expenses	13,340	7,258
Net cash provided by operating activities	68,300	65,350
Cash flows from investing activities:
Payments received on finance receivables held for investment	43,840	73,480
Purchases of finance receivables measured at fair value	(393,407)	(205,459)
Payments received on finance receivables at fair value	209,844	156,020
Change in repossessions held in inventory	481	275
Purchase of furniture and equipment	(275)	(426)
Net cash provided by (used in) investing activities	(139,517)	23,890
Cash flows from financing activities:
Proceeds from issuance of securitization trust debt	316,800	230,545
Proceeds from issuance of subordinated renewable notes	1,059	2,750
Payments on subordinated renewable notes	(762)	(333)
Net advances (repayments) of warehouse lines of credit	42,170	(48,256)
Repayment of residual interest financing debt	(4,311)	(4,979)
Repayment of securitization trust debt	(262,737)	(242,489)
Payment of financing costs	(3,030)	(1,572)
Purchase of common stock	(14,104)	(755)
Exercise of options and warrants	5,860	298
Net cash provided by (used in) financing activities	80,945	(64,791)
Increase in cash and cash equivalents	9,728	24,449
Cash and restricted cash at beginning of period	176,548	144,152
Cash and restricted cash at end of period	186,276	168,601
Cash paid (received) during the period for:
Interest	14,380	19,252
Income taxes	$ 0	$ (123)

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Thousands	Common Stock [Member]	Retained Earnings [Member]	AOCI Attributable to Parent [Member]	Total
Balance, beginning of period, Shares at Dec. 31, 2020	22,737
Balance, beginning of period at Dec. 31, 2020	$ 72,926	$ 69,007	$ (8,571)
Common stock issued upon exercise of options and warrants, Shares	98
Stock Repurchased During Period, Shares	(179)
Common stock issued upon exercise of options and warrants	$ 298
Repurchase of common stock	(755)
Stock-based compensation	$ 408
Net income		5,164		5,164
Pension benefit obligation
Shares, Outstanding, Ending Balance at Mar. 31, 2021	22,656
Stockholders' Equity Attributable to Parent, Ending Balance at Mar. 31, 2021	$ 72,877	74,171	(8,571)	138,477
Balance, beginning of period, Shares at Dec. 31, 2021	21,144
Balance, beginning of period at Dec. 31, 2021	$ 55,298	116,531	(1,622)	170,207
Common stock issued upon exercise of options and warrants, Shares	1,366
Stock Repurchased During Period, Shares	(1,218)
Common stock issued upon exercise of options and warrants	$ 5,860
Repurchase of common stock	(14,104)
Stock-based compensation	$ 790
Net income		21,115		21,115
Pension benefit obligation
Shares, Outstanding, Ending Balance at Mar. 31, 2022	21,292
Stockholders' Equity Attributable to Parent, Ending Balance at Mar. 31, 2022	$ 47,844	$ 137,646	$ (1,622)	$ 183,868

- Definition

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

+ References

+ Details

- Definition

Total of all stockholders' equity (deficit) items, net of receivables from officers, directors, owners, and affiliates of the entity which are attributable to the parent. The amount of the economic entity's stockholders' equity attributable to the parent excludes the amount of stockholders' equity which is allocable to that ownership interest in subsidiary equity which is not attributable to the parent (noncontrolling interest, minority interest). This excludes temporary equity and is sometimes called permanent equity.

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+ Details

(1) Summary of Significant Accounting Policies

3 Months Ended

Mar. 31, 2022

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 three-month period ended March 31, 2022 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, 2021.

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. Results for the first quarter include a $2.4 million mark down reversal to the carrying value of the portion of the receivables portfolio accounted for at fair value. Results for the first quarter of 2021 include a $4.4 million mark down, and the mark down is 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 periods ending March 31, 2022 and 2021:

Schedule of other income
	Three Months Ended
	March 31,
	2022		2021
	(In thousands)
Direct mail revenues	$	774	$	979
Convenience fee revenue		80		240
Recoveries on previously charged-off contracts		20		15
Sales tax refunds		144		171
Other		888		31
Other income for the period	$	1,906	$	1,436

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:


	March 31,			December 31,
	2022			2021
	(In thousands)

Operating Leases
Operating lease right-of-use assets	$	25,820		$	25,819
Less: Accumulated amortization right-of-use assets		(18,972	)		(17,624	)
Operating lease right-of-use assets, net	$	6,848		$	8,195

Operating lease liabilities	$	(7,684	)	$	(9,058	)

Finance Leases
Property and equipment, at cost	$	3,407		$	3,407
Less: Accumulated depreciation		(2,620	)		(2,348	)
Property and equipment, net	$	787		$	1,059

Finance lease liabilities	$	(842	)	$	(1,124	)

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 March 31,		Lease			Lease
2022	$	4,644		$	752
2023		1,888			84
2024		920			26
2025		795			9
2026		501			–
Thereafter		1,160			–
Total undiscounted lease payments		9,908			871
Less amounts representing interest		(2,224	)		(29	)
Lease Liability	$	7,684		$	842

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
	March 31,
	2022		2021
	(In thousands)
Operating lease cost	$	1,761	$	1,837
Finance lease cost		298		308
Total lease cost	$	2,059	$	2,145

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


	Three Months Ended
	March 31,
	2022		2021
Cash paid for amounts included in the measurement of lease liabilities:	(In thousands)
Operating cash flows from operating leases	$	1,788	$	1,930
Operating cash flows from finance leases		282		274
Financing cash flows from finance leases		16		35

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 months ended March 31, 2022 and 2021, we recorded stock-based compensation costs in the amount of $790,000 and $408,000, respectively. As of March 31, 2022, unrecognized stock-based compensation costs to be recognized over future periods equaled $8.4 million. This amount will be recognized as expense over a weighted-average period of 2.4 years.

The following represents stock option activity for the three months ended March 31, 2022:


	Number of Shares (in thousands)		Weighted Average Exercise Price		Weighted Average Remaining Contractual Term
Options outstanding at the beginning of period	13,074		$	4.54	N/A
Granted	750			10.32	N/A
Exercised	(1,366	)		4.29	N/A
Forfeited	(430	)		7.51	N/A
Options outstanding at the end of period	12,028		$	4.82	3.18 years

Options exercisable at the end of period	8,068		$	4.74	2.00 years

The following table presents the price distribution of stock options outstanding and exercisable for the years ended March 31, 2022 and December 31, 2021:


	Number of shares as of		Number of shares as of
	March 31, 2022		December 31, 2021
	Outstanding	Exercisable	Outstanding	Exercisable
Range of exercise prices:	(In thousands)		(In thousands)
$0.95 - $1.99	34	34	577	577
$2.00 - $2.99	1,517	489	1,517	489
$3.00 - $3.99	4,172	3,270	4,285	3,382
$4.00 - $4.99	2,847	1,567	2,870	1,410
$5.00 - $5.99	–	–	–	–
$6.00 - $6.99	1,933	1,933	2,651	2,652
$7.00 - $7.99	775	775	1,175	1,175
$8.00 - $11.00	750	–	–	–

Total shares	12,028	8,068	13,074	9,685

At March 31, 2022 the aggregate intrinsic value of options outstanding and exercisable was $64.3 million and $43.7 million, respectively. There were 1,366,000 options exercised for the three months ended March 31, 2022 compared to 98,000 for the comparable period in 2021. The total intrinsic value of options exercised was $10.2 million and $122,000 for the three-month periods ended March 31, 2022 and 2021. There were 3,561,000 shares available for future stock option grants under existing plans as of March 31, 2022.

Purchases of Company Stock

The table below describes the purchase of our common stock for the three-month ended March 31, 2022 and 2021:

Schedule of purchases of company stock

Three Months Ended

March 31, 2022 March 31, 2021

Shares Avg. Price Shares Avg. Price

Open market purchases 922,363 $ 11.19 138,004 $ 4.18

Shares redeemed upon net exercise of stock options 295,088 12.68 40,727 4.36

Total stock purchases 1,217,451 $ 11.55 178,731 $ 4.22

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 March 31, 2022, 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

3 Months Ended

Mar. 31, 2022

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.

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. Automobile finance receivables, net of unearned interest was $186.7 million and $232.4 million as of March 31, 2022 and December 31, 2021, respectively. The following table summarizes the delinquency status of finance receivables as of March 31, 2022 and December 31, 2021:


	March 31,		December 31,
	2022		2021
	(In thousands)
Delinquency Status
Current	$	152,949	$	186,625
31 - 60 days		22,426		30,980
61 - 90 days		9,252		12,070
91 + days		2,118		2,715
	$	186,745	$	232,390

Finance receivables totaling $2.1 million and $2.7 million at March 31, 2022 and December 31, 2021, 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.

The following table presents the amortized cost basis of our finance receivables by annual vintage as of March 31, 2022 and 2021.


	March 31,		December 31,
	2022		2021
	(In thousands)
Annual Vintage Pool
2012 and prior	$	92	$	131
2013		721		1,091
2014		4,877		6,881
2015		22,037		29,695
2016		61,259		76,728
2017		97,759		117,864
	$	186,745	$	232,390

The following table presents a summary of the activity for the allowance for finance credit losses for the three-month periods ended March 31, 2022 and 2021:

Three Months Ended

March 31,

2022 2021

(In thousands)

Balance at beginning of period $ 56,206 $ 80,790

Provision for credit losses on finance receivables (9,400 ) –

Charge-offs (5,359 ) (12,122 )

Recoveries 3,554 4,829

Balance at end of period $ 45,001 $ 73,497

For the three months ended March 31, 2022, we recorded a reduction to provision for credit losses on finance receivables in the amount of $9.4 million. The reserve decrease was primarily due to a decrease in lifetime expected credit losses resulting from improved credit performance, an improved macroeconomic outlook and higher used car prices. The Company did not make additional provisions for credit losses for the three months ended March 31, 2021.

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:

March 31, December 31,

2022 2021

(In thousands)

Gross balance of repossessions in inventory $ 3,640 $ 4,341

Allowance for losses on repossessed inventory (1,652 ) (1,871 )

Net repossessed inventory included in other assets $ 1,988 $ 2,470

(3) Securitization Trust Debt

3 Months Ended

Mar. 31, 2022

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
Series	Final Scheduled Payment Date (1)	Receivables Pledged at March 31, 2022 (2)		Initial Principal		Outstanding Principal at March 31, 2022		Outstanding Principal at December 31, 2021		Weighted Average Contractual Interest Rate at March 31, 2022
	(Dollars in thousands)
CPS 2017-A	April 2024	$	–	$	206,320	$	–	$	17,644	–
CPS 2017-B	December 2023		22,739		225,170		7,491		12,491	5.75%
CPS 2017-C	September 2024		24,874		224,825		20,955		25,846	5.72%
CPS 2017-D	June 2024		25,965		196,300		22,589		26,744	5.17%
CPS 2018-A	March 2025		29,215		190,000		25,303		29,518	4.86%
CPS 2018-B	December 2024		35,386		201,823		30,749		36,092	5.24%
CPS 2018-C	September 2025		40,840		230,275		36,876		42,765	5.41%
CPS 2018-D	June 2025		50,069		233,730		42,922		49,634	5.24%
CPS 2019-A	March 2026		62,139		254,400		53,492		62,667	5.05%
CPS 2019-B	June 2026		62,243		228,275		53,392		61,730	4.77%
CPS 2019-C	September 2026		73,278		243,513		64,980		75,065	3.91%
CPS 2019-D	December 2026		94,335		274,313		83,924		98,625	3.32%
CPS 2020-A	March 2027		88,745		260,000		83,987		99,485	3.48%
CPS 2020-B	June 2027		96,567		202,343		72,955		87,048	4.98%
CPS 2020-C	November 2027		129,864		252,200		118,901		138,899	2.57%
CPS 2021-A	March 2028		138,427		230,545		123,688		147,516	1.08%
CPS 2021-B	June 2028		165,925		240,000		157,719		179,856	1.36%
CPS 2021-C	September 2028		235,461		291,000		222,432		250,003	1.21%
CPS 2021-D	December 2028		311,727		349,202		300,177		330,325	1.47%
CPS 2022-A	April 2029		315,574		316,800		303,481		–	1.85%
		$	2,003,373	$	4,851,034	$	1,826,016	$	1,771,953

_________________

(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 $556.3 million in 2022, $703.8 million in 2023, $178.0 million in 2024, $197.3 million in 2025, $114.1 million in 2026, $58.4 million in 2027, and $5.5 million in 2028.

(2)

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

Debt issuance costs of $12.5 million and $12.0 million as of March 31, 2022 and December 31, 2021, respectively, have been excluded from the table above. These debt issuance costs are presented as a direct deduction to the carrying amount of the Securitization trust debt on our Consolidated Balance Sheets.

All of the securitization trust debt was 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 March 31, 2022, 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 March 31, 2022, restricted cash under the various agreements totaled approximately $164.6 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.

(4) Debt

3 Months Ended

Mar. 31, 2022

Debt Disclosure [Abstract]

(4) Debt

(4) Debt

The terms and amounts of our other debt outstanding at March 31, 2022 and December 31, 2021 are summarized below:

Schedule of debt outstanding
				Amount Outstanding at
				March 31,		December 31,
				2022		2021
				(In thousands)
Description	Interest Rate	Maturity

Warehouse lines of credit	3.00% over one month Libor (Minimum 3.75%)		December 2022	$	69,430	$	70,590

	3.50% over a commercial paper rate (Minimum 4.50%)		January 2024		78,750		35,420

Residual interest financing	8.60%		January 2026		–		4,311

Residual interest financing	7.86%		June 2026		50,000		50,000

Subordinated renewable notes	Weighted average rate of 8.65% and 8.93% at March 31, 2022 and December 31, 2021, respectively		Weighted average maturity of March 2024 and January 2024 at March 31, 2022 and December 31, 2021, respectively		26,756		26,459

				$	224,936	$	186,780

Unamortized debt issuance costs of $566,000 and $629,000 as of March 31, 2022 and December 31, 2021, respectively, have been excluded from the amount reported above for residual interest financing. Similarly, unamortized debt issuance costs of $1.2 million and $400,000 as of March 31, 2022 and December 31, 2021, 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

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Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1I
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Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
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-Section 50
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-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611

+ Details

(5) Interest Income and Interest Expense

3 Months Ended

Mar. 31, 2022

Interest Income And Interest Expense

(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
	March 31,
	2022		2021
	(In thousands)
Interest on finance receivables	$	11,314	$	22,099
Interest on finance receivables at fair value		58,740		43,988
Mark to finance receivables measured at fair value		2,400		(4,417	)
Other interest income		6		6
Interest income	$	72,460	$	61,676

The following table presents the components of interest expense:

Schedule of interest expense
	Three Months Ended
	March 31,
	2022		2021
	(In thousands)
Securitization trust debt	$	13,528	$	18,453
Warehouse lines of credit		1,158		1,314
Residual interest financing		1,094		566
Subordinated renewable notes		620		613
Interest expense	$	16,400	$	20,946

(6) Earnings Per Share

3 Months Ended

Mar. 31, 2022

Earnings per share:

(6) Earnings Per Share

(6) Earnings Per Share

Earnings per share for the three-month periods ended March 31, 2022 and 2021 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 periods ended March 31, 2022 and 2021:

Computation of earnings per share
	Three Months Ended
	March 31,
	2022	2021
	(In thousands)
Weighted average number of common shares outstanding during the period used to compute basic earnings per share	21,221	22,741

Incremental common shares attributable to exercise of outstanding options and warrants	6,976	2,226

Weighted average number of common shares used to compute diluted earnings per share	28,197	24,967

If the anti-dilutive effects of common stock equivalents were considered, shares included in the diluted earnings per share calculation for the three-months ended March 31, 2022 and 2021 would have included an additional 558,000 and 7.5 million shares, respectively, attributable to the exercise of outstanding options and warrants.

(7) Income Taxes

3 Months Ended

Mar. 31, 2022

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 2015.

As of March 31,2022, and December 31, 2021, 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 $18.9 million as of March 31, 2022 is more likely than not based on forecasted future net earnings. Our net deferred tax asset of $18.9 million consists of approximately $11.6 million of net U.S. federal deferred tax assets and $7.3 million of net state deferred tax assets.

Income tax expense was $8.2 million for the three months ended March 31, 2022, representing effective income tax rates of 28%. For the prior year period, income tax expense was $2.8 million for the three months ended March 31, 2021 representing an effective tax rate of 35%.

- 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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-Section 50
-Paragraph 21
-URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32857-109319

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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-Paragraph 2
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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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 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
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-SubTopic 30
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-Paragraph 2
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-URI https://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
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-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(h)(2))
-URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

+ Details

(8) Legal Proceedings

3 Months Ended

Mar. 31, 2022

Commitments and Contingencies Disclosure [Abstract]

(8) Legal Proceedings

(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. There are as of the date of this report two civil actions that could possibly result in a material liability, if resolved adversely and on a class basis, as the respective plaintiffs allege would be appropriate.

Following our filing of a complaint for a deficiency judgment in the Superior Court at Waterbury, Connecticut, the defendant filed a cross-claim alleging that our deficiency notices were not compliant with Connecticut law, and seeking relief on behalf of a class of Connecticut obligors whose vehicles we had repossessed. The defendant’s contract provided for resolution of disputes exclusively by arbitration, and exclusively on an individual basis, not a class basis. Nevertheless, in August 2021, the court denied our motion to compel arbitration, without opinion. In April 2022, a motion for certification of a class was filed but has not been ruled upon. It is reasonable to expect that resolution of these claims will be on a class basis.

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.

Massachusetts Civil Investigative Demand. In September 2021, we received a civil investigative demand from the Office of the Attorney General of the Commonwealth of Massachusetts relating to the Company’s communications with and repossession notices sent to Massachusetts customers. We are cooperating with the inquiry. At this time, it is not possible to determine any amount of loss that is probable and measurable.

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 March 31, 2022, 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 March 31, 2022 is $3.4 million, and that the range of reasonably possible losses for the legal proceedings and contingencies we face, including those described or identified above, as of March 31, 2022 does not exceed $11.3 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

3 Months Ended

Mar. 31, 2022

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 March 31, 2022, 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
	March 31,
	2022			2021
	(In thousands)
Balance at beginning of period	$	1,749,098		$	1,523,726
Finance receivables at fair value acquired during period		393,407			205,459
Payments received on finance receivables at fair value		(209,844	)		(156,020	)
Net interest income accretion on fair value receivables		(31,204	)		(35,025	)
Mark to fair value		2,400			(4,417	)
Balance at end of period	$	1,903,857		$	1,533,723

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


	March 31, 2022				December 31, 2021
	Contractual		Fair		Contractual		Fair
	Balance		Value		Balance		Value
	(In thousands)

Finance receivables measured at fair value	$	2,133,969	$	1,903,857	$	1,972,699	$	1,749,098

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

Financial Instrument Fair Values as of Inputs as of

March 31, December 31, March 31, December 31,

2022 2021 Unobservable Inputs 2022 2021

(In thousands)

Assets:

Finance receivables measured at fair value $ 1,903,857 $ 1,749,098 Discount rate 9.9% - 11.3% 10.6% - 11.3%

Cumulative net losses 10.0% - 18.4% 10.00% - 18.4%

The following table summarizes the delinquency status of these finance receivables measured at fair value as of March 31, 2022 and December 31, 2021:


	March 31,		December 31,
	2022		2021
	(In thousands)
Delinquency Status
Current	$	1,971,766	$	1,787,641
31 - 60 days		92,440		115,924
61 - 90 days		35,714		38,999
91 + days		11,248		11,564
Repo		22,801		18,571
	$	2,133,969	$	1,972,699

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 March 31, 2022 the finance receivables related to the repossessed vehicles in inventory totaled $3.6 million. We have applied a valuation adjustment, or loss allowance, of $1.6 million, which is based on a recovery rate of approximately 56%, resulting in an estimated fair value and carrying amount of $2.0 million. The fair value and carrying amount of the repossessed inventory at December 31, 2021 was $2.4 million after applying a valuation adjustment of $1.9 million.

There were no transfers in or out of level 1, level 2 or level 3 assets and liabilities for the three months ended March 31, 2022 and 2021.

The estimated fair values of financial assets and liabilities at March 31, 2022 and December 31, 2021, were as follows:


	As of March 31, 2022
Financial Instrument	(In thousands)
	Carrying		Fair Value Measurements Using:
	Value		Level 1		Level 2		Level 3		Total
Assets:
Cash and cash equivalents	$	21,726	$	21,726	$	–	$	–	$	21,726
Restricted cash and equivalents		164,550		164,550		–		–		164,550
Finance receivables, net		141,711		–		–		144,178		144,178
Accrued interest receivable		1,673		–		–		1,673		1,673
Liabilities:
Warehouse lines of credit	$	147,026	$	–	$	–	$	147,026	$	147,026
Accrued interest payable		3,807		–		–		3,807		3,807
Securitization trust debt		1,813,478		–		–		1,727,163		1,727,163
Subordinated renewable notes		26,756		–		–		26,756		26,756


	As of December 31, 2021
Financial Instrument	(In thousands)
	Carrying		Fair Value Measurements Using:
	Value		Level 1		Level 2		Level 3		Total
Assets:
Cash and cash equivalents	$	29,928	$	29,928	$	–	$	–	$	29,928
Restricted cash and equivalents		146,620		146,620		–		–		146,620
Finance receivables, net		176,184		–		–		178,795		178,795
Accrued interest receivable		2,269		–		–		2,269		2,269
Liabilities:
Warehouse lines of credit	$	105,610	$	–	$	–	$	105,610	$	105,610
Accrued interest payable		3,568		–		–		3,568		3,568
Securitization trust debt		1,759,972		–		–		1,740,901		1,740,901
Subordinated renewable notes		26,459		–		–		26,459		26,459

(10) Subsequent Events

3 Months Ended

Mar. 31, 2022

Subsequent Events [Abstract]

(10) Subsequent Events

On April 20, 2022 we executed our second securitization of 2022. In the transaction, qualified institutional buyers purchased $395.6 million of asset-backed notes secured by $430.0 million in automobile receivables originated by CPS. The sold notes, issued by CPS Auto Receivables Trust 2022-B, consist of five classes. Ratings of the notes were provided by Moody’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 4.83%.

The 2022-B transaction has initial credit enhancement consisting of a cash deposit equal to 1.00% of the original receivable pool balance and overcollateralization of 8.00%. The transaction agreements require accelerated payment of principal on the notes to reach overcollateralization of the lesser of 9.00% of the original receivable pool balance, or 25.80% of the then outstanding pool balance. The transaction utilizes a pre-funding structure, in which CPS sold approximately $285.8 million of receivables at inception and plans to sell approximately $144.2 million of additional receivables in May 2022. The transaction was a private offering of securities, not registered under the Securities Act of 1933, or any state securities law.

(1) Summary of Significant Accounting Policies (Policies)

3 Months Ended

Mar. 31, 2022

Accounting Policies [Abstract]

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 periods ending March 31, 2022 and 2021:

Schedule of other income
	Three Months Ended
	March 31,
	2022		2021
	(In thousands)
Direct mail revenues	$	774	$	979
Convenience fee revenue		80		240
Recoveries on previously charged-off contracts		20		15
Sales tax refunds		144		171
Other		888		31
Other income for the period	$	1,906	$	1,436

Leases

Leases

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


	March 31,			December 31,
	2022			2021
	(In thousands)

Operating Leases
Operating lease right-of-use assets	$	25,820		$	25,819
Less: Accumulated amortization right-of-use assets		(18,972	)		(17,624	)
Operating lease right-of-use assets, net	$	6,848		$	8,195

Operating lease liabilities	$	(7,684	)	$	(9,058	)

Finance Leases
Property and equipment, at cost	$	3,407		$	3,407
Less: Accumulated depreciation		(2,620	)		(2,348	)
Property and equipment, net	$	787		$	1,059

Finance lease liabilities	$	(842	)	$	(1,124	)

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 March 31,		Lease			Lease
2022	$	4,644		$	752
2023		1,888			84
2024		920			26
2025		795			9
2026		501			–
Thereafter		1,160			–
Total undiscounted lease payments		9,908			871
Less amounts representing interest		(2,224	)		(29	)
Lease Liability	$	7,684		$	842

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
	March 31,
	2022		2021
	(In thousands)
Operating lease cost	$	1,761	$	1,837
Finance lease cost		298		308
Total lease cost	$	2,059	$	2,145

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


	Three Months Ended
	March 31,
	2022		2021
Cash paid for amounts included in the measurement of lease liabilities:	(In thousands)
Operating cash flows from operating leases	$	1,788	$	1,930
Operating cash flows from finance leases		282		274
Financing cash flows from finance leases		16		35

Stock-based Compensation

Stock-based Compensation

The following represents stock option activity for the three months ended March 31, 2022:


	Number of Shares (in thousands)		Weighted Average Exercise Price		Weighted Average Remaining Contractual Term
Options outstanding at the beginning of period	13,074		$	4.54	N/A
Granted	750			10.32	N/A
Exercised	(1,366	)		4.29	N/A
Forfeited	(430	)		7.51	N/A
Options outstanding at the end of period	12,028		$	4.82	3.18 years

Options exercisable at the end of period	8,068		$	4.74	2.00 years

The following table presents the price distribution of stock options outstanding and exercisable for the years ended March 31, 2022 and December 31, 2021:


	Number of shares as of		Number of shares as of
	March 31, 2022		December 31, 2021
	Outstanding	Exercisable	Outstanding	Exercisable
Range of exercise prices:	(In thousands)		(In thousands)
$0.95 - $1.99	34	34	577	577
$2.00 - $2.99	1,517	489	1,517	489
$3.00 - $3.99	4,172	3,270	4,285	3,382
$4.00 - $4.99	2,847	1,567	2,870	1,410
$5.00 - $5.99	–	–	–	–
$6.00 - $6.99	1,933	1,933	2,651	2,652
$7.00 - $7.99	775	775	1,175	1,175
$8.00 - $11.00	750	–	–	–

Total shares	12,028	8,068	13,074	9,685

Purchases of Company Stock

Purchases of Company Stock

The table below describes the purchase of our common stock for the three-month ended March 31, 2022 and 2021:

Schedule of purchases of company stock
	Three Months Ended
	March 31, 2022				March 31, 2021
		Shares		Avg. Price		Shares		Avg. Price
Open market purchases		922,363	$	11.19		138,004	$	4.18
Shares redeemed upon net exercise of stock options		295,088		12.68		40,727		4.36
Total stock purchases		1,217,451	$	11.55		178,731	$	4.22

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

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 March 31, 2022, 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

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

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.

(1) Summary of Significant Accounting Policies (Tables)

3 Months Ended

Mar. 31, 2022

Accounting Policies [Abstract]

Schedule of other income

Schedule of other income
	Three Months Ended
	March 31,
	2022		2021
	(In thousands)
Direct mail revenues	$	774	$	979
Convenience fee revenue		80		240
Recoveries on previously charged-off contracts		20		15
Sales tax refunds		144		171
Other		888		31
Other income for the period	$	1,906	$	1,436

Supplemental balance sheet information related to leases


	March 31,			December 31,
	2022			2021
	(In thousands)

Operating Leases
Operating lease right-of-use assets	$	25,820		$	25,819
Less: Accumulated amortization right-of-use assets		(18,972	)		(17,624	)
Operating lease right-of-use assets, net	$	6,848		$	8,195

Operating lease liabilities	$	(7,684	)	$	(9,058	)

Finance Leases
Property and equipment, at cost	$	3,407		$	3,407
Less: Accumulated depreciation		(2,620	)		(2,348	)
Property and equipment, net	$	787		$	1,059

Finance lease liabilities	$	(842	)	$	(1,124	)

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

(1) Summary of Significant Accounting Policies (Details - Maturities of lease liabilities)

Maturities of leases
Maturities of lease liabilities were as follows:
(In thousands)		Operating			Finance
Year Ending March 31,		Lease			Lease
2022	$	4,644		$	752
2023		1,888			84
2024		920			26
2025		795			9
2026		501			–
Thereafter		1,160			–
Total undiscounted lease payments		9,908			871
Less amounts representing interest		(2,224	)		(29	)
Lease Liability	$	7,684		$	842

Lease information

Lease information
	Three Months Ended
	March 31,
	2022		2021
	(In thousands)
Operating lease cost	$	1,761	$	1,837
Finance lease cost		298		308
Total lease cost	$	2,059	$	2,145

Supplemental cash flow information related to leases


	Three Months Ended
	March 31,
	2022		2021
Cash paid for amounts included in the measurement of lease liabilities:	(In thousands)
Operating cash flows from operating leases	$	1,788	$	1,930
Operating cash flows from finance leases		282		274
Financing cash flows from finance leases		16		35

Share-based Payment Arrangement, Option, Activity


	Number of Shares (in thousands)		Weighted Average Exercise Price		Weighted Average Remaining Contractual Term
Options outstanding at the beginning of period	13,074		$	4.54	N/A
Granted	750			10.32	N/A
Exercised	(1,366	)		4.29	N/A
Forfeited	(430	)		7.51	N/A
Options outstanding at the end of period	12,028		$	4.82	3.18 years

Options exercisable at the end of period	8,068		$	4.74	2.00 years

Schedule of stock options outstanding and exercisable


	Number of shares as of		Number of shares as of
	March 31, 2022		December 31, 2021
	Outstanding	Exercisable	Outstanding	Exercisable
Range of exercise prices:	(In thousands)		(In thousands)
$0.95 - $1.99	34	34	577	577
$2.00 - $2.99	1,517	489	1,517	489
$3.00 - $3.99	4,172	3,270	4,285	3,382
$4.00 - $4.99	2,847	1,567	2,870	1,410
$5.00 - $5.99	–	–	–	–
$6.00 - $6.99	1,933	1,933	2,651	2,652
$7.00 - $7.99	775	775	1,175	1,175
$8.00 - $11.00	750	–	–	–

Total shares	12,028	8,068	13,074	9,685

Schedule of purchases of company stock

Schedule of purchases of company stock
	Three Months Ended
	March 31, 2022				March 31, 2021
		Shares		Avg. Price		Shares		Avg. Price
Open market purchases		922,363	$	11.19		138,004	$	4.18
Shares redeemed upon net exercise of stock options		295,088		12.68		40,727		4.36
Total stock purchases		1,217,451	$	11.55		178,731	$	4.22

(2) Finance Receivables (Tables)

3 Months Ended

Mar. 31, 2022

Finance Receivables

Schedule of delinquency status of finance receivables


	March 31,		December 31,
	2022		2021
	(In thousands)
Delinquency Status
Current	$	152,949	$	186,625
31 - 60 days		22,426		30,980
61 - 90 days		9,252		12,070
91 + days		2,118		2,715
	$	186,745	$	232,390

Schedule of amortized cost basis of finance receivables


	March 31,		December 31,
	2022		2021
	(In thousands)
Annual Vintage Pool
2012 and prior	$	92	$	131
2013		721		1,091
2014		4,877		6,881
2015		22,037		29,695
2016		61,259		76,728
2017		97,759		117,864
	$	186,745	$	232,390

Schedule of allowance for finance credit losses


	Three Months Ended
	March 31,
	2022			2021
	(In thousands)
Balance at beginning of period	$	56,206		$	80,790
Provision for credit losses on finance receivables		(9,400	)		–
Charge-offs		(5,359	)		(12,122	)
Recoveries		3,554			4,829
Balance at end of period	$	45,001		$	73,497

Schedule of allowance for losses on repossessed inventory


	March 31,			December 31,
	2022			2021
	(In thousands)
Gross balance of repossessions in inventory	$	3,640		$	4,341
Allowance for losses on repossessed inventory		(1,652	)		(1,871	)
Net repossessed inventory included in other assets	$	1,988		$	2,470

(3) Securitization Trust Debt (Tables)

3 Months Ended

Mar. 31, 2022

Securitization Trust Debt

Schedule of Long-term Debt Instruments

Schedule of Long-term Debt Instruments
Series	Final Scheduled Payment Date (1)	Receivables Pledged at March 31, 2022 (2)		Initial Principal		Outstanding Principal at March 31, 2022		Outstanding Principal at December 31, 2021		Weighted Average Contractual Interest Rate at March 31, 2022
	(Dollars in thousands)
CPS 2017-A	April 2024	$	–	$	206,320	$	–	$	17,644	–
CPS 2017-B	December 2023		22,739		225,170		7,491		12,491	5.75%
CPS 2017-C	September 2024		24,874		224,825		20,955		25,846	5.72%
CPS 2017-D	June 2024		25,965		196,300		22,589		26,744	5.17%
CPS 2018-A	March 2025		29,215		190,000		25,303		29,518	4.86%
CPS 2018-B	December 2024		35,386		201,823		30,749		36,092	5.24%
CPS 2018-C	September 2025		40,840		230,275		36,876		42,765	5.41%
CPS 2018-D	June 2025		50,069		233,730		42,922		49,634	5.24%
CPS 2019-A	March 2026		62,139		254,400		53,492		62,667	5.05%
CPS 2019-B	June 2026		62,243		228,275		53,392		61,730	4.77%
CPS 2019-C	September 2026		73,278		243,513		64,980		75,065	3.91%
CPS 2019-D	December 2026		94,335		274,313		83,924		98,625	3.32%
CPS 2020-A	March 2027		88,745		260,000		83,987		99,485	3.48%
CPS 2020-B	June 2027		96,567		202,343		72,955		87,048	4.98%
CPS 2020-C	November 2027		129,864		252,200		118,901		138,899	2.57%
CPS 2021-A	March 2028		138,427		230,545		123,688		147,516	1.08%
CPS 2021-B	June 2028		165,925		240,000		157,719		179,856	1.36%
CPS 2021-C	September 2028		235,461		291,000		222,432		250,003	1.21%
CPS 2021-D	December 2028		311,727		349,202		300,177		330,325	1.47%
CPS 2022-A	April 2029		315,574		316,800		303,481		–	1.85%
		$	2,003,373	$	4,851,034	$	1,826,016	$	1,771,953

_________________

(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
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.22)
-URI https://asc.fasb.org/extlink&oid=120391452&loc=d3e13212-122682

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 https://asc.fasb.org/extlink&oid=120395691&loc=d3e24072-122690

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 1A
-URI https://asc.fasb.org/extlink&oid=124435984&loc=d3e28541-108399

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 6
-URI https://asc.fasb.org/extlink&oid=126973232&loc=d3e21506-112644

Reference 5: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 55
-Paragraph 69B
-URI https://asc.fasb.org/extlink&oid=123466577&loc=SL123495735-112612

Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 2
-URI https://asc.fasb.org/extlink&oid=124435984&loc=d3e28551-108399

Reference 7: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 55
-Paragraph 69E
-URI https://asc.fasb.org/extlink&oid=123466577&loc=SL123495743-112612

Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 7
-URI https://asc.fasb.org/extlink&oid=126973232&loc=d3e21521-112644

Reference 9: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 8
-URI https://asc.fasb.org/extlink&oid=126973232&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 https://asc.fasb.org/extlink&oid=123599511&loc=d3e64711-112823

Reference 11: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 55
-Paragraph 8
-URI https://asc.fasb.org/extlink&oid=114775985&loc=d3e28878-108400

Reference 12: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 3
-URI https://asc.fasb.org/extlink&oid=126973232&loc=d3e21475-112644

+ Details

(4) Debt (Tables)

3 Months Ended

Mar. 31, 2022

Debt Disclosure [Abstract]

Schedule of debt outstanding

Schedule of debt outstanding
				Amount Outstanding at
				March 31,		December 31,
				2022		2021
				(In thousands)
Description	Interest Rate	Maturity

Warehouse lines of credit	3.00% over one month Libor (Minimum 3.75%)		December 2022	$	69,430	$	70,590

	3.50% over a commercial paper rate (Minimum 4.50%)		January 2024		78,750		35,420

Residual interest financing	8.60%		January 2026		–		4,311

Residual interest financing	7.86%		June 2026		50,000		50,000

Subordinated renewable notes	Weighted average rate of 8.65% and 8.93% at March 31, 2022 and December 31, 2021, respectively		Weighted average maturity of March 2024 and January 2024 at March 31, 2022 and December 31, 2021, respectively		26,756		26,459

				$	224,936	$	186,780

(5) Interest Income and Interest Expense (Tables)

3 Months Ended

Mar. 31, 2022

Interest Income And Interest Expense

Schedule of interest income

Schedule of interest income
	Three Months Ended
	March 31,
	2022		2021
	(In thousands)
Interest on finance receivables	$	11,314	$	22,099
Interest on finance receivables at fair value		58,740		43,988
Mark to finance receivables measured at fair value		2,400		(4,417	)
Other interest income		6		6
Interest income	$	72,460	$	61,676

Schedule of interest expense

Schedule of interest expense
	Three Months Ended
	March 31,
	2022		2021
	(In thousands)
Securitization trust debt	$	13,528	$	18,453
Warehouse lines of credit		1,158		1,314
Residual interest financing		1,094		566
Subordinated renewable notes		620		613
Interest expense	$	16,400	$	20,946

(6) Earnings Per Share (Tables)

3 Months Ended

Mar. 31, 2022

Earnings per share:

Computation of earnings per share

Computation of earnings per share
	Three Months Ended
	March 31,
	2022	2021
	(In thousands)
Weighted average number of common shares outstanding during the period used to compute basic earnings per share	21,221	22,741

Incremental common shares attributable to exercise of outstanding options and warrants	6,976	2,226

Weighted average number of common shares used to compute diluted earnings per share	28,197	24,967

(9) Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2022

Fair Value Disclosures [Abstract]

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


	Three Months Ended
	March 31,
	2022			2021
	(In thousands)
Balance at beginning of period	$	1,749,098		$	1,523,726
Finance receivables at fair value acquired during period		393,407			205,459
Payments received on finance receivables at fair value		(209,844	)		(156,020	)
Net interest income accretion on fair value receivables		(31,204	)		(35,025	)
Mark to fair value		2,400			(4,417	)
Balance at end of period	$	1,903,857		$	1,533,723

Finance receivables fair and contractual balances


	March 31, 2022				December 31, 2021
	Contractual		Fair		Contractual		Fair
	Balance		Value		Balance		Value
	(In thousands)

Finance receivables measured at fair value	$	2,133,969	$	1,903,857	$	1,972,699	$	1,749,098

Schedule of level 3 fair value measurements


Financial Instrument	Fair Values as of					Inputs as of
	March 31,		December 31,			March 31,	December 31,
	2022		2021		Unobservable Inputs	2022	2021
	(In thousands)
Assets:
Finance receivables measured at fair value	$	1,903,857	$	1,749,098	Discount rate	9.9% - 11.3%	10.6% - 11.3%
					Cumulative net losses	10.0% - 18.4%	10.00% - 18.4%

Schedule of delinquency status of finance receivables measured at fair value


	March 31,		December 31,
	2022		2021
	(In thousands)
Delinquency Status
Current	$	1,971,766	$	1,787,641
31 - 60 days		92,440		115,924
61 - 90 days		35,714		38,999
91 + days		11,248		11,564
Repo		22,801		18,571
	$	2,133,969	$	1,972,699

Schedule of estimated fair values of financial assets and liabilities


	As of March 31, 2022
Financial Instrument	(In thousands)
	Carrying		Fair Value Measurements Using:
	Value		Level 1		Level 2		Level 3		Total
Assets:
Cash and cash equivalents	$	21,726	$	21,726	$	–	$	–	$	21,726
Restricted cash and equivalents		164,550		164,550		–		–		164,550
Finance receivables, net		141,711		–		–		144,178		144,178
Accrued interest receivable		1,673		–		–		1,673		1,673
Liabilities:
Warehouse lines of credit	$	147,026	$	–	$	–	$	147,026	$	147,026
Accrued interest payable		3,807		–		–		3,807		3,807
Securitization trust debt		1,813,478		–		–		1,727,163		1,727,163
Subordinated renewable notes		26,756		–		–		26,756		26,756


	As of December 31, 2021
Financial Instrument	(In thousands)
	Carrying		Fair Value Measurements Using:
	Value		Level 1		Level 2		Level 3		Total
Assets:
Cash and cash equivalents	$	29,928	$	29,928	$	–	$	–	$	29,928
Restricted cash and equivalents		146,620		146,620		–		–		146,620
Finance receivables, net		176,184		–		–		178,795		178,795
Accrued interest receivable		2,269		–		–		2,269		2,269
Liabilities:
Warehouse lines of credit	$	105,610	$	–	$	–	$	105,610	$	105,610
Accrued interest payable		3,568		–		–		3,568		3,568
Securitization trust debt		1,759,972		–		–		1,740,901		1,740,901
Subordinated renewable notes		26,459		–		–		26,459		26,459

(1) Summary of Significant Accounting Policies (Details - Other income) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Other Operating Income	$ 1,906	$ 1,436
Direct Mail Revenues [Member]
Other Operating Income	774	979
Convenience Fee [Member]
Other Operating Income	80	240
Recoveries [Member]
Other Operating Income	20	15
Sales Tax Refunds [Member]
Other Operating Income	144	171
Other Income [Member]
Other Operating Income	$ 888	$ 31

(1) Summary of Significant Accounting Policies (Details - Supplemental balance sheet information related to leases) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Operating Leases
Operating lease right-of-use assets	$ 25,820	$ 25,819
Less: Accumulated amortization right-of-use assets	18,972	17,624
Operating lease right-of-use assets, net	6,848	8,195
Operating lease liabilities	(7,684)	(9,058)
Finance Leases
Property and equipment, at cost	3,407	3,407
Less: Accumulated depreciation	2,620	2,348
Property and equipment, net	787	1,059
Finance lease liabilities	$ (842)	$ (1,124)
Operating Lease, Weighted Average Discount Rate, Percent	5.00%	5.00%
Finance Lease, Weighted Average Discount Rate, Percent	6.50%	6.50%

(1) Summary of Significant Accounting Policies (Details - Maturities of lease liabilities) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Lease Liability	$ 7,684	$ 9,058
Lease Liability	842	$ 1,124
Operating Lease [Member]
2022	4,644
2023	1,888
2024	920
2025	795
2026	501
Thereafter	1,160
Total undiscounted lease payments	9,908
Less amounts representing interest	(2,224)
Lease Liability	7,684
Finance Lease [Member]
2022	752
2023	84
2024	26
2025	9
2026	0
Thereafter	0
Total undiscounted lease payments	871
Less amounts representing interest	(29)
Lease Liability	$ 842

(1) Summary of Significant Accounting Policies (Details - Lease cost) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Accounting Policies [Abstract]
Operating lease cost	$ 1,761	$ 1,837
Finance lease cost	298	308
Total lease cost	$ 2,059	$ 2,145

(1) Summary of Significant Accounting Policies (Details - Cash flow) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$ 1,788	$ 1,930
Operating cash flows from finance leases	282	274
Financing cash flows from finance leases	$ 16	$ 35

(1) Summary of Significant Accounting Policies (Details - Option activity) - $ / shares	3 Months Ended
	Mar. 31, 2022	Dec. 31, 2021
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Options outstanding	13,074,000
Exercised	(1,366,000)
Options outstanding	12,028,000
Options exercisable at the end of period	8,068,000	9,685,000
Equity Option [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Options outstanding	13,074,000
Options outstanding at the beginning of period	$ 4.54
Granted	750,000
Granted	$ 10.32
Exercised	(1,366,000)
Exercised	$ 4.29
Forfeited	(430,000)
Forfeited	$ 7.51
Options outstanding	12,028,000
Options outstanding at the end of period	$ 4.82
Options Outstanding, Weighted Average Remaining Contractual Term	3 years 2 months 4 days
Options exercisable at the end of period	8,068,000
Options exercisable at the end of period	$ 4.74
Options Exercisable, Weighted Average Remaining Contractual Term	2 years

(1) Summary of Significant Accounting Policies (Details - Options outstanding and exercisable) - shares shares in Thousands	Mar. 31, 2022	Dec. 31, 2021
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items]
Number of shares, outstanding	12,028	13,074
Number of shares, exercisable	8,068	9,685
$0.95 - $1.99 [Member]
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items]
Number of shares, outstanding	34	577
Number of shares, exercisable	34	577
$2.00 - $2.99 [Member]
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items]
Number of shares, outstanding	1,517	1,517
Number of shares, exercisable	489	489
$3.00 - $3.99 [Member]
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items]
Number of shares, outstanding	4,172	4,285
Number of shares, exercisable	3,270	3,382
$4.00 - $4.99 [Member]
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items]
Number of shares, outstanding	2,847	2,870
Number of shares, exercisable	1,567	1,410
$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	1,933	2,651
Number of shares, exercisable	1,933	2,652
$7.00 - $7.99 [Member]
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items]
Number of shares, outstanding	775	1,175
Number of shares, exercisable	775	1,175
Range 8 [Member]
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items]
Number of shares, outstanding	750	0
Number of shares, exercisable	0	0

(1) Summary of Significant Accounting Policies (Details - Stock purchases) - Common Stock [Member] - $ / shares	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Equity, Class of Treasury Stock [Line Items]
Total stock purchases, shares	1,217,451	178,731
Total stock purchases, average price per share	$ 11.55	$ 4.22
Open Market Purchases[Member]
Equity, Class of Treasury Stock [Line Items]
Total stock purchases, shares	922,363	138,004
Total stock purchases, average price per share	$ 11.19	$ 4.18
Shares Redeemed [Member]
Equity, Class of Treasury Stock [Line Items]
Total stock purchases, shares	295,088	40,727
Total stock purchases, average price per share	$ 12.68	$ 4.36

(1) Summary of Significant Accounting Policies (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Stock-based compensation	$ 790,000	$ 408,000
Unrecognized stock-based compensation costs	$ 8,400,000
Weighted-average period for unrecognized costs	2 years 4 months 24 days
Intrinsic value options outstanding	$ 64,300,000
Intrinsic value of options exercisable	$ 43,700,000
Options exercised	1,366,000
Intrinsic value of options exercised	$ 10,200,000	$ 122,000
Shares available for grant	3,561,000
Options Exercised [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Options exercised	98,000

(2) Finance Receivables (Details - Delinquency status) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Financing Receivable, Past Due [Line Items]
Finance receivables	$ 186,745
Total finance receivables with delinquency status		$ 232,390
Financial Asset, 1 to 29 Days Past Due [Member]
Financing Receivable, Past Due [Line Items]
Finance receivables	152,949	186,625
Financial Asset, 30 to 59 Days Past Due [Member]
Financing Receivable, Past Due [Line Items]
Finance receivables	22,426	30,980
Financial Asset, 60 to 89 Days Past Due [Member]
Financing Receivable, Past Due [Line Items]
Finance receivables	9,252	12,070
Financial Asset, Equal to or Greater than 90 Days Past Due [Member]
Financing Receivable, Past Due [Line Items]
Finance receivables	$ 2,118	$ 2,715

- Definition

Amortized cost, before allowance for credit loss, of financing receivable. Excludes financing receivable covered under loss sharing agreement and net investment in lease.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 310
-SubTopic 10
-Section 50
-Paragraph 7A
-URI https://asc.fasb.org/extlink&oid=123577603&loc=SL6953401-111524

Reference 2: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 326
-SubTopic 20
-Section 55
-Paragraph 79
-URI https://asc.fasb.org/extlink&oid=124267575&loc=SL82922352-210448

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02(3)(b))
-URI https://asc.fasb.org/extlink&oid=120391452&loc=d3e13212-122682

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 326
-SubTopic 20
-Section 50
-Paragraph 14
-URI https://asc.fasb.org/extlink&oid=124255953&loc=SL82919253-210447

Reference 5: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 326
-SubTopic 20
-Section 45
-Paragraph 1
-URI https://asc.fasb.org/extlink&oid=124255206&loc=SL82895884-210446

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 326
-SubTopic 20
-Section 50
-Paragraph 5
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=124255953&loc=SL82919230-210447

Reference 7: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 326
-SubTopic 20
-Section 55
-Paragraph 80
-URI https://asc.fasb.org/extlink&oid=124267575&loc=SL82922355-210448

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher SEC
-Name Regulation S-K (SK)
-Number 229
-Section 1405
-Paragraph (a)
-Subparagraph (1)

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher SEC
-Name Regulation S-K (SK)
-Number 229
-Section 1405
-Paragraph (a)
-Subparagraph (2)

Reference 10: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher SEC
-Name Regulation S-K (SK)
-Number 229
-Section 1404
-Paragraph (a)

+ Details

(2) Finance Receivables (Details - Amortized Cost Basis) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Financing Receivable, Past Due [Line Items]
Amortized cost basis	$ 186,745	$ 232,390
Vintage Pool 2012 [Member]
Financing Receivable, Past Due [Line Items]
Amortized cost basis	92	131
Vintage Pool 2013 [Member]
Financing Receivable, Past Due [Line Items]
Amortized cost basis	721	1,091
Vintage Pool 2014 [Member]
Financing Receivable, Past Due [Line Items]
Amortized cost basis	4,877	6,881
Vintage Pool 2015 [Member]
Financing Receivable, Past Due [Line Items]
Amortized cost basis	22,037	29,695
Vintage Pool 2016 [Member]
Financing Receivable, Past Due [Line Items]
Amortized cost basis	61,259	76,728
Vintage Pool 2017 [Member]
Financing Receivable, Past Due [Line Items]
Amortized cost basis	$ 97,759	$ 117,864

(2) Finance Receivables (Details - Summary of activity) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Finance Receivables
Balance at beginning of period	$ 56,206	$ 80,790
Provision for credit losses on finance receivables	(9,400)	0
Charge-offs	(5,359)	(12,122)
Recoveries	3,554	4,829
Financing Receivable, Allowance for Credit Loss, Ending Balance	$ 45,001	$ 73,497

- 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	3 Months Ended	12 Months Ended
	Mar. 31, 2022	Dec. 31, 2021
Finance Receivables
Gross balance of repossessions in inventory	$ 3,640	$ 4,341
Allowance for losses on repossessed inventory	(1,652)	(1,871)
Net repossessed inventory included in other assets	$ 1,988	$ 2,470

(2) Finance Receivables (Details Narrative) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Dec. 31, 2021	Mar. 31, 2021
Finance Receivables
Interest Receivable	$ 186,700		$ 232,400
Finance receivables, non accrual status	2,100	$ 2,700
Credit losses on finance receivables	$ 9,400

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

3 Months Ended

Mar. 31, 2022

Dec. 31, 2023

Dec. 31, 2021

Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items]

Receivables Pledged at end of period

^[1]

$ 2,003,373

Initial Principal

4,851,034

Outstanding Principal

1,826,016

$ 1,771,953

Securitization Trust Debt, payable in 2022

556,300

Securitization Trust Debt, payable in 2023

703,800

Securitization Trust Debt, payable in 2024

178,000

Securitization Trust Debt, payable in 2025

197,300

Securitization Trust Debt, payable in 2026

114,100

Securitization Trust Debt, payable in 2027

58,400

Securitization Trust Debt, payable in 2028

$ 5,500

CPS 2017-A [Member]

Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items]

Final Scheduled Payment Date

^[2]

April 2024

Receivables Pledged at end of period

^[1]

$ 0

Initial Principal

206,320

Outstanding Principal

$ 0

17,644

Weighted Average Contractual Interest Rate

0.00%

CPS 2017-B [Member]

Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items]

Final Scheduled Payment Date

^[2]

December 2023

Receivables Pledged at end of period

^[1]

$ 22,739

Initial Principal

225,170

Outstanding Principal

$ 7,491

12,491

Weighted Average Contractual Interest Rate

5.75%

CPS 2017-C [Member]

Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items]

Final Scheduled Payment Date

^[2]

September 2024

Receivables Pledged at end of period

^[1]

$ 24,874

Initial Principal

224,825

Outstanding Principal

$ 20,955

$ 25,846

Weighted Average Contractual Interest Rate

5.72%

CPS 2017-D [Member]

Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items]

Final Scheduled Payment Date

^[2]

June 2024

Receivables Pledged at end of period

^[1]

$ 25,965

Initial Principal

196,300

Outstanding Principal

$ 22,589

26,744

Weighted Average Contractual Interest Rate

5.17%

CPS 2018-A [Member]

Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items]

Final Scheduled Payment Date

^[2]

March 2025

Receivables Pledged at end of period

^[1]

$ 29,215

Initial Principal

190,000

Outstanding Principal

$ 25,303

29,518

Weighted Average Contractual Interest Rate

4.86%

CPS 2018-B [Member]

Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items]

Final Scheduled Payment Date

^[2]

December 2024

Receivables Pledged at end of period

^[1]

$ 35,386

Initial Principal

201,823

Outstanding Principal

$ 30,749

36,092

Weighted Average Contractual Interest Rate

5.24%

CPS 2018-C [Member]

Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items]

Final Scheduled Payment Date

^[2]

September 2025

Receivables Pledged at end of period

^[1]

$ 40,840

Initial Principal

230,275

Outstanding Principal

$ 36,876

42,765

Weighted Average Contractual Interest Rate

5.41%

CPS 2018-D [Member]

Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items]

Final Scheduled Payment Date

^[2]

June 2025

Receivables Pledged at end of period

^[1]

$ 50,069

Initial Principal

233,730

Outstanding Principal

$ 42,922

49,634

Weighted Average Contractual Interest Rate

5.24%

CPS 2019-A [Member]

Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items]

Final Scheduled Payment Date

^[2]

March 2026

Receivables Pledged at end of period

^[1]

$ 62,139

Initial Principal

254,400

Outstanding Principal

$ 53,492

62,667

Weighted Average Contractual Interest Rate

5.05%

CPS 2019-B [Member]

Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items]

Final Scheduled Payment Date

^[2]

June 2026

Receivables Pledged at end of period

^[1]

$ 62,243

Initial Principal

228,275

Outstanding Principal

$ 53,392

61,730

Weighted Average Contractual Interest Rate

4.77%

CPS 2019-C [Member]

Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items]

Final Scheduled Payment Date

^[2]

September 2026

Receivables Pledged at end of period

^[1]

$ 73,278

Initial Principal

243,513

Outstanding Principal

$ 64,980

75,065

Weighted Average Contractual Interest Rate

3.91%

CPS 2019-D [Member]

Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items]

Final Scheduled Payment Date

^[2]

December 2026

Receivables Pledged at end of period

^[1]

$ 94,335

Initial Principal

274,313

Outstanding Principal

$ 83,924

98,625

Weighted Average Contractual Interest Rate

3.32%

CPS 2020-A [Member]

Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items]

Final Scheduled Payment Date

^[2]

March 2027

Receivables Pledged at end of period

^[1]

$ 88,745

Initial Principal

260,000

Outstanding Principal

$ 83,987

99,485

Weighted Average Contractual Interest Rate

3.48%

CPS 2020-B [Member]

Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items]

Final Scheduled Payment Date

^[2]

June 2027

Receivables Pledged at end of period

^[1]

$ 96,567

Initial Principal

202,343

Outstanding Principal

$ 72,955

87,048

Weighted Average Contractual Interest Rate

4.98%

CPS 2020-C [Member]

Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items]

Final Scheduled Payment Date

^[2]

November 2027

Receivables Pledged at end of period

^[1]

$ 129,864

Initial Principal

252,200

Outstanding Principal

$ 118,901

138,899

Weighted Average Contractual Interest Rate

2.57%

CPS 2021-A [Member]

Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items]

Final Scheduled Payment Date

^[2]

March 2028

Receivables Pledged at end of period

^[1]

$ 138,427

Initial Principal

230,545

Outstanding Principal

$ 123,688

147,516

Weighted Average Contractual Interest Rate

1.08%

CPS 2021-B

Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items]

Final Scheduled Payment Date

^[2]

June 2028

Receivables Pledged at end of period

^[1]

$ 165,925

Initial Principal

240,000

Outstanding Principal

$ 157,719

179,856

Weighted Average Contractual Interest Rate

1.36%

CPS 2021 C [Member]

Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items]

Final Scheduled Payment Date

^[2]

September 2028

Receivables Pledged at end of period

^[1]

$ 235,461

Initial Principal

291,000

Outstanding Principal

$ 222,432

250,003

Weighted Average Contractual Interest Rate

1.21%

C P S 2021 D [Member]

Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items]

Final Scheduled Payment Date

^[2]

December 2028

Receivables Pledged at end of period

^[1]

$ 311,727

Initial Principal

349,202

Outstanding Principal

$ 300,177

330,325

Weighted Average Contractual Interest Rate

1.47%

CPS 2020 D [Member]

Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items]

Final Scheduled Payment Date

^[2]

April 2029

CPS 2022 A [Member]

Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items]

Receivables Pledged at end of period

^[1]

$ 315,574

Initial Principal

316,800

Outstanding Principal

$ 303,481

$ 0

Weighted Average Contractual Interest Rate

1.85%

[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	Mar. 31, 2022	Dec. 31, 2021
Securitization Trust Debt
Debt issuance costs	$ 12,500	$ 12,000
Restricted cash under various agreements	$ 164,600

(4) Debt (Details - Debt outstanding) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2022	Dec. 31, 2021
Line of Credit Facility [Line Items]
Warehouse lines of credit	$ 147,026	$ 105,610
Residual interest financing	49,434	53,682
Subordinated renewable notes	26,756	26,459
Total debt outstanding	$ 224,936	$ 186,780
Subordinated renewable notes [Member]
Line of Credit Facility [Line Items]
Maturity date description	March 2024	January 2024
Debt Instrument, Interest Rate Terms	8.65%	8.93%
Warehouse Lines Of Credit 1 [Member]
Line of Credit Facility [Line Items]
Interest rate	3.00% over one month Libor (Minimum 3.75%)
Maturity date description	December 2022
Warehouse lines of credit	$ 69,430	$ 70,590
Warehouse Lines Of Credit 2 [Member]
Line of Credit Facility [Line Items]
Interest rate	3.50% over a commercial paper rate (Minimum 4.50%)
Maturity date description	January 2024
Warehouse lines of credit	$ 78,750	35,420
Residual interest financing [Member]
Line of Credit Facility [Line Items]
Maturity date description	January 2026
Interest rate	8.60%
Residual interest financing	$ 0	4,311
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	50,000
Subordinated renewable notes [Member]
Line of Credit Facility [Line Items]
Subordinated renewable notes	$ 26,756	$ 26,459

(4) Debt (Details Narrative) - USD ($)	Mar. 31, 2022	Dec. 31, 2021
Warehouse Lines Of Credit [Member]
Line of Credit Facility [Line Items]
Unamortized debt issuance costs	$ 566,000	$ 629,000
Warehouse Lines Of Credit 5 [Member]
Line of Credit Facility [Line Items]
Unamortized debt issuance costs	$ 1,200,000	$ 400,000

(5) Interest Income and Interest Expense (Details - Interest income) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Interest Income And Interest Expense
Interest on finance receivables	$ 11,314	$ 22,099
Interest on finance receivables at fair value	58,740	43,988
Mark to finance receivables measured at fair value	2,400	(4,417)
Other interest income	6	6
Interest income	$ 72,460	$ 61,676

(5) Interest Income and Interest Expense (Details - Interest expense) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Debt Instrument [Line Items]
Total interest expense	$ 16,400	$ 20,946
Securitization Trust Debt [Member]
Debt Instrument [Line Items]
Total interest expense	13,528	18,453
Warehouse lines of credit
Debt Instrument [Line Items]
Total interest expense	1,158	1,314
Residual interest financing [Member]
Debt Instrument [Line Items]
Total interest expense	1,094	566
Subordinated renewable notes [Member]
Debt Instrument [Line Items]
Total interest expense	$ 620	$ 613

(6) Earnings Per Share (Details - Earnings Per Share) - shares shares in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Earnings per share:
Weighted average number of common shares outstanding during the period used to compute basic earnings per share	21,221	22,741
Incremental common shares attributable to exercise of outstanding options and warrants	6,976	2,226
Weighted average number of common shares used to compute diluted earnings per share	28,197	24,967

(6) Earnings Per Share (Details Narrative) - shares	3 Months Ended
(6) Earnings Per Share (Details Narrative) - shares	Mar. 31, 2022	Mar. 31, 2021
Earnings per share:
Antidilutive shares	558,000	7,500,000

(7) Income Taxes (Details Narrative) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Operating Loss Carryforwards [Line Items]
Net deferred tax asset	$ 18,900
Current income tax expense	$ 8,200	$ 2,800
Effective Income Tax Rate Reconciliation, Percent	28.00%	35.00%
Domestic Tax Authority [Member]
Operating Loss Carryforwards [Line Items]
Net deferred tax asset	$ 11,600
State and Local Jurisdiction [Member]
Operating Loss Carryforwards [Line Items]
Net deferred tax asset	$ 7,300

(9) Fair Value Measurements (Details - Reconciliation of Finance Receivables) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Fair Value Disclosures [Abstract]
Balance at beginning of period	$ 1,749,098	$ 1,523,726
Finance receivables at fair value acquired during period	393,407	205,459
Payments received on finance receivables at fair value	(209,844)	(156,020)
Net interest income accretion on fair value receivables	(31,204)	(35,025)
Mark to fair value	2,400	(4,417)
Receivables, Fair Value Disclosure	$ 1,903,857	$ 1,533,723

(9) Fair Value Measurements (Details - Finance Receivables to Their Contractual Balances) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021	Mar. 31, 2021	Dec. 31, 2020
Fair Value Disclosures [Abstract]
[custom:FinanceReceivablesContractualBalance-0]	$ 2,133,969	$ 1,972,699
Receivables, Fair Value Disclosure	$ 1,903,857	$ 1,749,098	$ 1,533,723	$ 1,523,726

(9) Fair Value Measurements (Details - Level 3 Fair Value Measurements) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2022	Dec. 31, 2021	Mar. 31, 2021	Dec. 31, 2020
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Receivables, Fair Value Disclosure	$ 1,903,857	$ 1,749,098	$ 1,533,723	$ 1,523,726
Discount Rate on Finance Receivables	9.9% - 11.3%	10.6% - 11.3%
Cumulative Net Losses (Percent) on Finance Receivables	10.0% - 18.4%	10.00% - 18.4%
Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Receivables, Fair Value Disclosure	$ 1,903,857	$ 1,749,098

(9) Fair Value Measurements (Details - Delinquency status) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Financing Receivable, Past Due [Line Items]
Initial Principal [Default Label]	$ 2,133,969	$ 1,972,699
Financial Asset, Not Past Due [Member]
Financing Receivable, Past Due [Line Items]
Initial Principal [Default Label]	1,971,766	1,787,641
Financial Asset, 30 to 59 Days Past Due [Member]
Financing Receivable, Past Due [Line Items]
Initial Principal [Default Label]	92,440	115,924
Financial Asset, 60 to 89 Days Past Due [Member]
Financing Receivable, Past Due [Line Items]
Initial Principal [Default Label]	35,714	38,999
Financial Asset, Equal to or Greater than 90 Days Past Due [Member]
Financing Receivable, Past Due [Line Items]
Initial Principal [Default Label]	11,248	11,564
Repossessed Vehicles [Member]
Financing Receivable, Past Due [Line Items]
Initial Principal [Default Label]	$ 22,801	$ 18,571

(9) Fair Value Measurements (Details - Fair values) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Cash and cash equivalents	$ 21,726	$ 29,928
Restricted cash and equivalents	164,550	146,620
Finance receivables, net	144,178	178,795
Accrued interest receivable	1,673	2,269
Warehouse lines of credit	147,026	105,610
Accrued interest payable	3,807	3,568
Securitization trust debt	1,727,163	1,740,901
Subordinated renewable notes	26,756	26,459
Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Cash and cash equivalents	21,726	29,928
Restricted cash and equivalents	164,550	146,620
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	144,178	178,795
Accrued interest receivable	1,673	2,269
Warehouse lines of credit	147,026	105,610
Accrued interest payable	3,807	3,568
Securitization trust debt	1,727,163	1,740,901
Subordinated renewable notes	26,756	26,459
Carrying Value [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Cash and cash equivalents	21,726	29,928
Restricted cash and equivalents	164,550	146,620
Finance receivables, net	141,711	176,184
Accrued interest receivable	1,673	2,269
Warehouse lines of credit	147,026	105,610
Accrued interest payable	3,807	3,568
Securitization trust debt	1,813,478	1,759,972
Subordinated renewable notes	$ 26,756	$ 26,459

(9) Fair Value Measurements (Details Narrative) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2022	Dec. 31, 2021
Inventory [Line Items]
Gross balance of repossessions in inventory	$ 3,640	$ 4,341
Net repossessed inventory included in other assets	2,000
Allowance for losses on repossessed inventory	(1,652)	(1,871)
Repossessed Vehicles [Member]
Inventory [Line Items]
Gross balance of repossessions in inventory	$ 3,600
Net repossessed inventory included in other assets		2,400
Allowance for losses on repossessed inventory		$ 1,900