Consumer Portfolio Services (CPSS) 10-Q 31 Jul 17 2017 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2017	Jul. 26, 2017
Document And Entity Information
Entity Registrant Name	CONSUMER PORTFOLIO SERVICES INC
Entity Central Index Key	889,609
Document Type	10-Q
Document Period End Date	Jun. 30, 2017
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Is Entity a Well-known Seasoned Issuer?	No
Is Entity a Voluntary Filer?	No
Is Entity's Reporting Status Current?	Yes
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		22,732,017
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2,017

UNAUDITED CONDENSED CONSOLIDATE

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
ASSETS
Cash and cash equivalents	$ 15,810	$ 13,936
Restricted cash and equivalents	118,298	112,754
Finance receivables	2,314,522	2,267,943
Less: Allowance for finance credit losses	(107,315)	(95,578)
Finance receivables, net	2,207,207	2,172,365
Furniture and equipment, net	2,094	2,017
Deferred tax assets, net	45,198	42,845
Accrued interest receivable	36,952	36,233
Other assets	22,237	30,252
Total	2,447,796	2,410,402
Liabilities
Accounts payable and accrued expenses	25,204	24,977
Warehouse lines of credit	131,272	103,358
Securitization trust debt	2,081,989	2,080,900
Subordinated renewable notes	16,080	14,949
Total	2,254,545	2,224,184
Shareholders' Equity
Preferred stock, $1 par value; authorized	0	0
Common stock, no par value; authorized 75,000,000 shares; 22,883,867 and 23,587,126 shares issued and outstanding at June 30, 2017 and December 31, 2016, respectively	75,109	77,128
Retained earnings	124,824	115,772
Accumulated other comprehensive loss	(6,682)	(6,682)
Total stockholders' equity	193,251	186,218
Total liabilities and stockholders' equity	2,447,796	2,410,402
Series A Preferred Stock [Member]
Shareholders' Equity
Preferred stock, $1 par value; authorized	0	0
Series B Preferred Stock [Member]
Shareholders' Equity
Preferred stock, $1 par value; authorized	$ 0	$ 0

UNAUDITED CONDENSED CONSOLIDAT3

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Jun. 30, 2017	Dec. 31, 2016
Shareholders' Equity
Preferred Stock, Par Value	$ 1	$ 1
Preferred Stock, Authorized	4,998,130	4,998,130
Preferred Stock, Issued	0	0
Preferred Stock, Outstanding	0	0
Common Stock, No Par Value	$ 0	$ 0
Common Stock, Authorized	75,000,000	75,000,000
Common Stock, Issued	22,883,867	23,587,126
Common Stock, Outstanding	22,883,867	23,587,126
Series A Preferred Stock [Member]
Shareholders' Equity
Preferred Stock, Par Value	$ 1	$ 1
Preferred Stock, Authorized	5,000,000	5,000,000
Preferred Stock, Issued	0	0
Preferred Stock, Outstanding	0	0
Series B Preferred Stock [Member]
Shareholders' Equity
Preferred Stock, Par Value	$ 1	$ 1
Preferred Stock, Authorized	1,870	1,870
Preferred Stock, Issued	0	0
Preferred Stock, Outstanding	0	0

UNAUDITED CONDENSED CONSOLIDAT4

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Revenues:
Interest income	$ 107,485	$ 101,709	$ 212,060	$ 198,372
Other income	2,587	3,224	5,610	7,210
Total revenues	110,072	104,933	217,670	205,582
Expenses:
Employee costs	17,572	15,678	35,352	30,822
General and administrative	6,819	6,569	13,741	11,900
Interest	23,236	19,727	45,324	37,548
Provision for credit losses	48,550	44,423	95,717	88,619
Marketing	3,990	4,731	7,950	9,401
Occupancy	1,733	1,288	3,394	2,371
Depreciation and amortization	220	192	448	367
Total operating expenses	102,120	92,608	201,926	181,028
Income before income tax expense	7,952	12,325	15,744	24,554
Income tax expense	3,380	5,053	6,692	10,068
Net income	$ 4,572	$ 7,272	$ 9,052	$ 14,486
Earnings per share:
Basic	$ .20	$ .30	$ 0.39	$ 0.58
Diluted	$ 0.17	$ 0.25	$ 0.32	$ 0.49
Number of shares used in computing earnings per share:
Basic	23,076	24,538	23,296	24,917
Diluted	27,602	29,111	28,024	29,632

UNAUDITED CONDENSED CONSOLIDAT5

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Statement of Comprehensive Income [Abstract]
Net income	$ 4,572	$ 7,272	$ 9,052	$ 14,486
Other comprehensive income/(loss); change in funded status of pension plan	0	0	0	0
Comprehensive income	$ 4,572	$ 7,272	$ 9,052	$ 14,486

UNAUDITED CONDENSED CONSOLIDAT6

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Cash flows from operating activities:
Net income	$ 9,052	$ 14,486
Adjustments to reconcile net income to net cash provided by operating activities:
Accretion of deferred acquisition fees and origination costs	152	(2,114)
Amortization of discount on securitization trust debt	0	20
Depreciation and amortization	448	367
Amortization of deferred financing costs	4,367	4,129
Provision for credit losses	95,717	88,619
Stock-based compensation expense	2,622	2,595
Changes in assets and liabilities:
Accrued interest receivable	(719)	(2,051)
Deferred tax assets, net	(2,353)	(2,753)
Other assets	5,172	1,032
Accounts payable and accrued expenses	227	9,000
Net cash provided by operating activities	114,685	113,330
Cash flows from investing activities:
Purchases of finance receivables held for investment	(463,546)	(631,412)
Payments received on finance receivables held for investment	332,835	326,176
Payments received on receivables portfolio at fair value	4	48
Change in repossessions held in inventory	2,839	2,192
Increases in restricted cash and cash equivalents, net	(5,544)	(9,214)
Purchase of furniture and equipment	(525)	(444)
Net cash used in investing activities	(133,937)	(312,654)
Cash flows from financing activities:
Proceeds from issuance of securitization trust debt	431,490	662,150
Proceeds from issuance of subordinated renewable notes	2,340	904
Payments on subordinated renewable notes	(1,209)	(785)
Net advances of warehouse lines of credit	28,029	(29,853)
Repayments of residual interest financing debt	0	(1,587)
Repayment of securitization trust debt	(430,750)	(424,155)
Payment of financing costs	(4,133)	(4,645)
Purchase of common stock	(5,379)	(6,323)
Exercise of options and warrants	738	48
Net cash provided by financing activities	21,126	195,754
Increase (decrease) in cash and cash equivalents	1,874	(3,570)
Cash and cash equivalents at beginning of period	13,936	19,322
Cash and cash equivalents at end of period	15,810	15,752
Cash paid during the period for:
Interest	40,579	32,746
Income taxes	$ 3,302	$ 3,784

1. Summary of Significant Accou

1. Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2017
Accounting Policies [Abstract]
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) acquired installment purchase contracts in four merger and acquisition transactions, (ii) purchased immaterial amounts of vehicle purchase money loans from non-affiliated lenders, and (iii) lent money directly to consumers for an immaterial amount of loans secured by vehicles. In this report, we refer to all of such contracts and loans as "automobile contracts." Basis of Presentation Our Unaudited Condensed Consolidated Financial Statements have been prepared in conformity with accounting principles generally accepted in the United States of America, with the instructions to Form 10-Q and with Article 10 of Regulation S-X of the Securities and Exchange Commission, and include all adjustments that are, in management’s opinion, necessary for a fair presentation of the results for the interim periods presented. All such adjustments are, in the opinion of management, of a normal recurring nature. Results for the six month period ended June 30, 2017 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, 2016. 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. Other Income The following table presents the primary components of Other Income for the three-month and six-month periods ending June 30, 2017 and 2016: Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 (In thousands) (In thousands) Direct mail revenues $ 1,634 $ 2,378 $ 3,633 $ 5,222 Convenience fee revenue 510 460 1,080 1,105 Recoveries on previously charged-off contracts 138 122 324 365 Sales tax refunds 215 202 412 401 Other 90 62 161 117 Other income for the period $ 2,587 $ 3,224 $ 5,610 $ 7,210 Warrants In connection with the amendment to and partial repayment of our residual interest financing in July 2008, we issued warrants exercisable for 2,500,000 common shares for $4,071,429. The warrants represent the right to purchase 2,500,000 CPS common shares at a nominal exercise price, at any time prior to July 10, 2018. In March 2010 we repurchased warrants for 500,000 of these shares for $1.0 million. Warrants to purchase 2,000,000 shares remain outstanding as of June 30, 2017. Stock-based Compensation We recognize compensation costs in the financial statements for all share-based payments based on the grant date fair value estimated in accordance with the provisions of ASC 718 “Stock Compensation”. For the three and six months ended June 30, 2017, we recorded stock-based compensation costs in the amount of $1.3 million and $2.6 million, respectively. These stock-based compensation costs were $1.2 million and $2.6 million for the three and six months ended June 30, 2016. As of June 30, 2017, unrecognized stock-based compensation costs to be recognized over future periods equaled $9.0 million. This amount will be recognized as expense over a weighted-average period of 2.2 years. The following represents stock option activity for the six months ended June 30, 2017: Weighted Number of Weighted Average Shares Average Remaining (in thousands) Exercise Price Contractual Term Options outstanding at the beginning of period 12,595 $ 4.56 N/A Granted 1,470 4.35 N/A Exercised (429 ) 1.72 N/A Forfeited (178 ) 5.67 N/A Options outstanding at the end of period 13,458 $ 4.61 4.85 years Options exercisable at the end of period 8,475 $ 4.36 4.37 years At June 30, 2017, the aggregate intrinsic value of options outstanding and exercisable was $13.4 million and $11.6 million, respectively. There were 429,300 options exercised for the six months ended June 30, 2017 compared to 29,200 for the comparable period in 2016. The total intrinsic value of options exercised was $1.3 million and $91,000 for the six-month periods ended June 30, 2017 and 2016. There were 2.4 million shares available for future stock option grants under existing plans as of June 30, 2017. Purchases of Company Stock During the six-month period ended June 30, 2017, we purchased 1.1 million shares of our common stock, at an average price of $4.75. We purchased 1,102,410 shares of our stock in the open market at an average price of $4.74. The remaining purchases of 30,149 shares were related to net exercises of outstanding options. In transactions during the six-month period ended June 30, 2017, the holders of options to purchase 60,000 shares of our common stock paid the aggregate $149,000 exercise price by surrender to us of 30,149 of such 60,000 shares. During the six-month period ended June 30, 2016, we purchased 1.6 million shares of our stock in the open market at an average price of $4.06. Reclassifications Some items in the prior year financial statements were reclassified to conform to the current presentation. Reclassifications had no effect on prior year net income or total shareholders’ equity. Financial Covenants Certain of our securitization transactions, our warehouse credit facilities and our residual interest financing contain various financial covenants requiring minimum financial ratios and results. Such covenants include maintaining minimum levels of liquidity and net worth and not exceeding maximum leverage levels. As of June 30, 2017, 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. We record at each measurement date, most recently as of June 30, 2017, our best estimate of probable incurred losses for legal contingencies. The amount of losses that may ultimately be incurred cannot be estimated with certainty.

2. Finance Receivables

2. Finance Receivables	6 Months Ended
	Jun. 30, 2017
Finance Receivables
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. The following table presents the components of Finance Receivables, net of unearned interest: June 30, December 31, 2017 2016 Finance receivables (In thousands) Automobile finance receivables, net of unearned interest $ 2,310,103 $ 2,266,619 Unearned acquisition fees and originations costs 4,419 1,324 Finance receivables $ 2,314,522 $ 2,267,943 We consider an automobile contract delinquent when an obligor fails to make at least 90% of a contractually due payment by the following due date, which date may have been extended within limits specified in the servicing agreements. The period of delinquency is based on the number of days payments are contractually past due, as extended where applicable. Automobile contracts less than 31 days delinquent are not included. In certain circumstances we will grant obligors one-month payment extensions to assist them with temporary cash flow problems. The only modification of terms is to advance the obligor’s next due date by one month and extend the maturity date of the receivable by one month. In certain limited cases, a two-month extension may be granted. There are no other concessions such as a reduction in interest rate, forgiveness of principal or of accrued interest. Accordingly, we consider such extensions to be insignificant delays in payments rather than troubled debt restructurings. The following table summarizes the delinquency status of finance receivables as of June 30, 2017 and December 31, 2016: June 30, December 31, 2017 2016 (In thousands) Delinquency Status Current $ 2,115,708 $ 2,053,759 31 - 60 days 121,354 116,073 61 - 90 days 49,094 52,404 91 + days 23,947 44,383 $ 2,310,103 $ 2,266,619 Finance receivables totaling $23.9 million and $44.4 million at June 30, 2017 and December 31, 2016, respectively, including all receivables greater than 90 days delinquent, have been placed on non-accrual status as a result of their delinquency status. We use a loss allowance methodology commonly referred to as "static pooling," which stratifies our finance receivable portfolio into separately identified pools based on the period of origination. Using analytical and formula driven techniques, we estimate an allowance for finance credit losses, which we believe is adequate for probable incurred credit losses that can be reasonably estimated in our portfolio of automobile contracts. The estimate for probable incurred credit losses is reduced by our estimate for future recoveries on previously incurred losses. Provision for credit losses is charged to our consolidated statement of operations. Net losses incurred on finance receivables are charged to the allowance. We establish the allowance for new receivables over the 12-month period following their acquisition. The following table presents a summary of the activity for the allowance for finance credit losses for the three-month and six-month periods ended June 30, 2017 and 2016: Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 (In thousands) (In thousands) Balance at beginning of period $ 99,255 $ 79,867 $ 95,578 $ 75,603 Provision for credit losses on finance receivables 48,550 44,423 95,717 88,619 Charge-offs (48,474 ) (41,901 ) (98,773 ) (87,834 ) Recoveries 7,984 7,779 14,793 13,780 Balance at end of period $ 107,315 $ 90,168 $ 107,315 $ 90,168 Excluded from finance receivables are contracts that were previously classified as finance receivables but were reclassified as other assets because we have repossessed the vehicle securing the Contract. The following table presents a summary of such repossessed inventory together with the allowance for losses in repossessed inventory that is not included in the allowance for finance credit losses: June 30, December 31, 2017 2016 (In thousands) Gross balance of repossessions in inventory $ 31,382 $ 40,069 Allowance for losses on repossessed inventory (23,076 ) (28,924 ) Net repossessed inventory included in other assets $ 8,306 $ 11,145

3. Securitization Trust Debt

3. Securitization Trust Debt	6 Months Ended
	Jun. 30, 2017
Securitization Trust Debt
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: Weighted Average Final Receivables Outstanding Outstanding Contractual Scheduled Pledged at Principal at Principal at Interest Rate at Payment June 30, Initial June 30, December 31, June 30, Series Date (1) 2017 (2) Principal 2017 2016 2017 (Dollars in thousands) CPS 2012-C December 2019 $ – $ 147,000 $ – $ 14,421 – CPS 2012-D March 2020 – 160,000 – 17,865 – CPS 2013-A June 2020 21,277 185,000 19,482 28,661 1.72% CPS 2013-B September 2020 29,141 205,000 26,540 37,570 2.15% CPS 2013-C December 2020 35,387 205,000 34,653 46,830 5.23% CPS 2013-D March 2021 35,962 183,000 34,333 46,345 4.52% CPS 2014-A June 2021 43,308 180,000 41,114 54,988 3.83% CPS 2014-B September 2021 59,344 202,500 58,167 75,140 3.35% CPS 2014-C December 2021 93,080 273,000 91,285 116,280 3.53% CPS 2014-D March 2022 101,294 267,500 100,325 127,307 3.74% CPS 2015-A June 2022 109,649 245,000 108,821 134,466 3.29% CPS 2015-B September 2022 126,623 250,000 125,584 153,893 3.27% CPS 2015-C December 2022 172,332 300,000 171,144 207,636 3.74% CPS 2016-A March 2023 220,103 329,460 218,351 262,260 4.07% CPS 2016-B June 2023 247,067 332,690 240,209 284,752 4.11% CPS 2016-C September 2023 250,358 318,500 244,183 285,618 3.65% CPS 2016-D December 2023 180,742 206,325 175,822 200,221 2.90% CPS 2017-A April 2024 193,575 206,320 187,641 – 3.08% CPS 2017-B September 2024 223,593 225,170 217,340 – 2.74% $ 2,142,835 $ 4,421,465 $ 2,094,994 $ 2,094,253 _________________ (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 $445.5 million in 2017, $740.9 million in 2018, $479.2 million in 2019, $272.5 million in 2020, $127.2 million in 2021, $16.7 million in 2022. (2) Includes repossessed assets that are included in Other assets on our Unaudited Condensed Consolidated Balance Sheet. Debt issuance costs of $13.0 million and $13.4 million as of June 30, 2017 and December 31, 2016, respectively, have been excluded from the table above. These debt issuance costs are presented as a direct deduction to the carrying amount of the securitization trust debt on our Unaudited Condensed Consolidated Balance Sheets. All of the securitization trust debt was sold in private placement transactions to qualified institutional buyers. The debt was issued through our wholly-owned bankruptcy remote subsidiaries and is secured by the assets of such subsidiaries, but not by our other assets. The terms of the securitization agreements related to the issuance of the securitization trust debt and the warehouse credit facilities require that we meet certain delinquency and credit loss criteria with respect to the pool of receivables, and certain of the agreements require that we maintain minimum levels of liquidity and not exceed maximum leverage levels. As of June 30, 2017, we were in compliance with all such covenants. We are responsible for the administration and collection of the automobile contracts. The securitization agreements also require certain funds be held in restricted cash accounts to provide additional collateral for the borrowings, to be applied to make payments on the securitization trust debt or as pre-funding proceeds from a term securitization prior to the purchase of additional collateral. As of June 30, 2017, restricted cash under the various agreements totaled approximately $118.3 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

4. Debt	6 Months Ended
	Jun. 30, 2017
Debt Disclosure [Abstract]
Debt	The terms and amounts of our other debt outstanding at June 30, 2017 and December 31, 2016 are summarized below: Amount Outstanding at June 30, December 31, 2017 2016 (In thousands) Description Interest Rate Revolving Maturity Warehouse lines of credit 5.50% over one month Libor (Minimum 6.50%) April 2019 $ 60,602 $ 64,352 5.50% over one month Libor (Minimum 6.25%) August 2018 41,539 26,445 6.75% over a commercial paper rate (Minimum 7.75%) November 2017 30,853 14,168 Subordinated renewable notes Weighted average rate of 7.55% and 7.50% at June 30, 2017 and December 31, 2016 , respectively Weighted average maturity of July 2019 and January 2019 at June 30, 2017 and December 31, 2016, respectively 16,080 14,949 $ 149,074 $ 119,914 Debt issuance costs of $1.7 million and $1.6 million as of June 30, 2017 and December 31, 2016, respectively, have been excluded from the table above. These debt issuance costs are presented as a direct deduction to the carrying amount of the Warehouse lines of credit on our Unaudited Condensed Consolidated Balance Sheets. In April 2017, we renewed our $100 million warehouse credit line that was first established in May 2012. There was $60.6 million outstanding under this facility at June 30, 2017. The revolving period for this facility was extended to April 2019 followed by an amortization period through April 2021 for any receivables pledged at the end of the revolving period.

5. Interest Income and Interest

5. Interest Income and Interest Expense	6 Months Ended
	Jun. 30, 2017
Interest Income And Interest Expense
Interest Income and Interest Expense	The following table presents the components of interest income: Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 (In thousands) (In thousands) Interest on finance receivables $ 107,344 $ 101,624 $ 211,840 $198,252 Other interest income 141 85 220 120 Interest income $ 107,485 $ 101,709 $ 212,060 $198,372 The following table presents the components of interest expense: Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 (In thousands) (In thousands) Securitization trust debt $ 20,537 $ 16,875 $ 40,617 $ 31,639 Warehouse lines of credit 2,379 2,244 4,087 4,666 Residual interest financing – 245 – 516 Subordinated renewable notes 320 363 620 727 Interest expense $ 23,236 $ 19,727 $ 45,324 $ 37,548

6. Earnings Per Share

6. Earnings Per Share	6 Months Ended
	Jun. 30, 2017
Earnings per share:
Earnings Per Share	Earnings per share for the three-month and six-month periods ended June 30, 2017 and 2016 were calculated using the weighted average number of shares outstanding for the related period. The following table reconciles the number of shares used in the computations of basic and diluted earnings per share for the three-month and six-month periods ended June 30, 2017 and 2016: Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 (In thousands) (In thousands) Weighted average number of common shares outstanding during the period used to compute basic earnings per share 23,076 24,538 23,296 24,917 Incremental common shares attributable to exercise of outstanding options and warrants 4,526 4,573 4,728 4,715 Weighted average number of common shares used to compute diluted earnings per share 27,602 29,111 28,024 29,632 If the anti-dilutive effects of common stock equivalents were considered, shares included in the diluted earnings per share calculation for the three-month and six-month periods ended June 30, 2017 would have included an additional 8.7 million and 7.0 million shares, respectively attributable to the exercise of outstanding options and warrants. For the three-month and six-month periods ended June 30, 2016, an additional 7.9 million and 7.4 million shares, respectively, would be included in the diluted earnings per share calculation.

7. Income Taxes

7. Income Taxes	6 Months Ended
	Jun. 30, 2017
Income Tax Disclosure [Abstract]
Income Taxes	We file numerous consolidated and separate income tax returns with the United States and with many states. With few exceptions, we are no longer subject to U.S. federal, state, or local examinations by tax authorities for years before 2013. As of June 30, 2017 and December 31, 2016, 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 $45.2 million as of June 30, 2017 is more likely than not based on forecasted future net earnings. Our net deferred tax asset of $45.2 million consists of approximately $38.4 million of net U.S. federal deferred tax assets and $6.8 million of net state deferred tax assets. Income tax expense was $3.4 million and $6.7 million for the three months and six months ended June 30, 2017 and represents an effective income tax rate of 43%, compared to income tax expense of $5.1 million and $10.1 million for the three and six months ended June 30, 2016, and represents an effective income tax rate of and 41%.

8. Legal Proceedings

8. Legal Proceedings	6 Months Ended
	Jun. 30, 2017
Legal Proceedings
Legal Proceedings	Consumer Litigation. For the most part, we have legal and factual defenses to consumer claims, which we routinely contest or settle (for immaterial amounts) depending on the particular circumstances of each case. Department of Justice Subpoena. In General Accordingly, we believe that the ultimate resolution of such legal proceedings and contingencies, after taking into account our current litigation reserves, should not have a material adverse effect on our consolidated financial condition. We note, however, that in light of the uncertainties inherent in contested proceedings, the wide discretion vested in the U.S. Department of Justice and other government agencies, and the deference that courts may give to assertions made by government litigants, there can be no assurance that the ultimate resolution of these matters will not 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. Employee Benefits

9. Employee Benefits	6 Months Ended
	Jun. 30, 2017
Employee Benefits
Employee Benefits	On March 8, 2002 we acquired MFN Financial Corporation and its subsidiaries in a merger. We sponsor the MFN Financial Corporation Benefit Plan (the “Plan”). Plan benefits were frozen June 30, 2001. The table below sets forth the Plan’s net periodic benefit cost for the three-month and six-month periods ended June 30, 2017 and 2016. Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 (In thousands) (In thousands) Components of net periodic cost (benefit) Service cost $ – $ – $ – $ – Interest cost 214 221 428 442 Expected return on assets (287 ) (300 ) (574 ) (600 ) Amortization of transition (asset)/obligation – – – – Amortization of net (gain) / loss 101 138 202 276 Net periodic cost (benefit) $ 28 $ 59 $ 56 $ 118 We did not make any contributions to the Plan during the six-month periods ended June 30, 2017 and 2016. We do not anticipate making any contributions for the remainder of 2017.

10. Fair Value Measurements

10. Fair Value Measurements	6 Months Ended
	Jun. 30, 2017
Fair Value Disclosures [Abstract]
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. Repossessed vehicle inventory, which is included in Other assets on our unaudited condensed consolidated balance sheet, is measured at fair value using level 2 assumptions based on our actual loss experience on sale of repossessed vehicles. At June 30, 2017 the finance receivables related to the repossessed vehicles in inventory totaled $31.4 million. We have applied a valuation adjustment, or loss allowance, of $23.1 million, which is based on a recovery rate of approximately 26%, resulting in an estimated fair value and carrying amount of $8.3 million. The fair value and carrying amount of the repossessed inventory at December 31, 2016 was $11.1 million after applying a valuation adjustment of $28.9 million. There were no transfers in or out of level 1 or level 2 assets and liabilities for the three months ended June 30, 2017 and 2016. We have no material level 3 assets that are measured at fair value on a non-recurring basis. The estimated fair values of financial assets and liabilities at June 30, 2017 and December 31, 2016, were as follows: As of June 30, 2017 Financial Instrument (In thousands) Carrying Fair Value Measurements Using: Value Level 1 Level 2 Level 3 Total Assets: Cash and cash equivalents $ 15,810 $ 15,810 $ – $ – $ 15,810 Restricted cash and equivalents 118,298 118,298 – – 118,298 Finance receivables, net 2,207,207 – – 2,155,855 2,155,855 Accrued interest receivable 36,952 – – 36,952 36,952 Liabilities: Warehouse lines of credit $ 131,272 $ – $ – $ 131,272 $ 131,272 Accrued interest payable 4,094 – – 4,094 4,094 Securitization trust debt 2,081,989 – – 2,098,115 2,098,115 Subordinated renewable notes 16,080 – – 16,080 16,080 As of December 31, 2016 Financial Instrument (In thousands) Carrying Fair Value Measurements Using: Value Level 1 Level 2 Level 3 Total Assets: Cash and cash equivalents $ 13,936 $ 13,936 $ – $ – $ 13,936 Restricted cash and equivalents 112,754 112,754 – – 112,754 Finance receivables, net 2,172,365 – – 2,104,503 2,104,503 Accrued interest receivable 36,233 – – 36,233 36,233 Liabilities: Warehouse lines of credit $ 103,358 $ – $ – $ 103,358 $ 103,358 Accrued interest payable 3,715 – – 3,715 3,715 Securitization trust debt 2,080,900 – – 2,138,892 2,138,892 Subordinated renewable notes 14,949 – – 14,949 14,949 The following summary presents a description of the methodologies and assumptions used to estimate the fair value of our financial instruments. Much of the information used to determine fair value is highly subjective. When applicable, readily available market information has been utilized. However, for a significant portion of our financial instruments, active markets do not exist. , significant elements of judgment were required in estimating fair value for certain items. The subjective factors include, among other things, the estimated timing and amount of cash flows, risk characteristics, credit quality and interest rates, all of which are subject to change. Since the fair value is estimated as of June 30, 2017 and December 31, 2016, the amounts that will actually be realized or paid at settlement or maturity of the instruments could be significantly different. Cash, Cash Equivalents and Restricted Cash and Equivalents The carrying value equals fair value. Finance Receivables, net The fair value of finance receivables is estimated by discounting future cash flows expected to be collected using current rates at which similar receivables could be originated. Accrued Interest Receivable and Payable The carrying value approximates fair value. Warehouse Lines of Credit and Subordinated Renewable Notes The carrying value approximates fair value because the related interest rates are estimated to reflect current market conditions for similar types of secured instruments. Securitization Trust Debt The fair value is estimated by discounting future cash flows using interest rates that we believe reflect the current market rates.

1. Summary of Significant Acc17

1. Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2017
Accounting Policies [Abstract]
Description of Business	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) acquired installment purchase contracts in four merger and acquisition transactions, (ii) purchased immaterial amounts of vehicle purchase money loans from non-affiliated lenders, and (iii) lent money directly to consumers for an immaterial amount of loans secured by vehicles. In this report, we refer to all of such contracts and loans as "automobile contracts."
Basis of Presentation	Our Unaudited Condensed Consolidated Financial Statements have been prepared in conformity with accounting principles generally accepted in the United States of America, with the instructions to Form 10-Q and with Article 10 of Regulation S-X of the Securities and Exchange Commission, and include all adjustments that are, in management’s opinion, necessary for a fair presentation of the results for the interim periods presented. All such adjustments are, in the opinion of management, of a normal recurring nature. Results for the six month period ended June 30, 2017 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, 2016.
Use of Estimates	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.
Other Income	The following table presents the primary components of Other Income for the three-month and six-month periods ending June 30, 2017 and 2016: Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 (In thousands) (In thousands) Direct mail revenues $ 1,634 $ 2,378 $ 3,633 $ 5,222 Convenience fee revenue 510 460 1,080 1,105 Recoveries on previously charged-off contracts 138 122 324 365 Sales tax refunds 215 202 412 401 Other 90 62 161 117 Other income for the period $ 2,587 $ 3,224 $ 5,610 $ 7,210
Warrants	In connection with the amendment to and partial repayment of our residual interest financing in July 2008, we issued warrants exercisable for 2,500,000 common shares for $4,071,429. The warrants represent the right to purchase 2,500,000 CPS common shares at a nominal exercise price, at any time prior to July 10, 2018. In March 2010 we repurchased warrants for 500,000 of these shares for $1.0 million. Warrants to purchase 2,000,000 shares remain outstanding as of June 30, 2017.
Stock-based Compensation	We recognize compensation costs in the financial statements for all share-based payments based on the grant date fair value estimated in accordance with the provisions of ASC 718 “Stock Compensation”. For the three and six months ended June 30, 2017, we recorded stock-based compensation costs in the amount of $1.3 million and $2.6 million, respectively. These stock-based compensation costs were $1.2 million and $2.6 million for the three and six months ended June 30, 2016. As of June 30, 2017, unrecognized stock-based compensation costs to be recognized over future periods equaled $9.0 million. This amount will be recognized as expense over a weighted-average period of 2.2 years. The following represents stock option activity for the six months ended June 30, 2017: Weighted Number of Weighted Average Shares Average Remaining (in thousands) Exercise Price Contractual Term Options outstanding at the beginning of period 12,595 $ 4.56 N/A Granted 1,470 4.35 N/A Exercised (429 ) 1.72 N/A Forfeited (178 ) 5.67 N/A Options outstanding at the end of period 13,458 $ 4.61 4.85 years Options exercisable at the end of period 8,475 $ 4.36 4.37 years At June 30, 2017, the aggregate intrinsic value of options outstanding and exercisable was $13.4 million and $11.6 million, respectively. There were 429,300 options exercised for the six months ended June 30, 2017 compared to 29,200 for the comparable period in 2016. The total intrinsic value of options exercised was $1.3 million and $91,000 for the six-month periods ended June 30, 2017 and 2016. There were 2.4 million shares available for future stock option grants under existing plans as of June 30, 2017.
Purchases of Company Stock	During the six-month period ended June 30, 2017, we purchased 1.1 million shares of our common stock, at an average price of $4.75. We purchased 1,102,410 shares of our stock in the open market at an average price of $4.74. The remaining purchases of 30,149 shares were related to net exercises of outstanding options. In transactions during the six-month period ended June 30, 2017, the holders of options to purchase 60,000 shares of our common stock paid the aggregate $149,000 exercise price by surrender to us of 30,149 of such 60,000 shares. During the six-month period ended June 30, 2016, we purchased 1.6 million shares of our stock in the open market at an average price of $4.06.
Reclassifications	Reclassifications Some items in the prior year financial statements were reclassified to conform to the current presentation. Reclassifications had no effect on prior year net income or total shareholders’ equity.
Financial Covenants	Certain of our securitization transactions, our warehouse credit facilities and our residual interest financing contain various financial covenants requiring minimum financial ratios and results. Such covenants include maintaining minimum levels of liquidity and net worth and not exceeding maximum leverage levels. As of June 30, 2017, 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. We record at each measurement date, most recently as of June 30, 2017, our best estimate of probable incurred losses for legal contingencies. The amount of losses that may ultimately be incurred cannot be estimated with certainty.

1. Summary of Significant Acc18

1. Summary of Significant Accounting Policies (Tables)	6 Months Ended
	Jun. 30, 2017
Accounting Policies [Abstract]
Other Income	Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 (In thousands) (In thousands) Direct mail revenues $ 1,634 $ 2,378 $ 3,633 $ 5,222 Convenience fee revenue 510 460 1,080 1,105 Recoveries on previously charged-off contracts 138 122 324 365 Sales tax refunds 215 202 412 401 Other 90 62 161 117 Other income for the period $ 2,587 $ 3,224 $ 5,610 $ 7,210
Stock option activity	Weighted Number of Weighted Average Shares Average Remaining (in thousands) Exercise Price Contractual Term Options outstanding at the beginning of period 12,595 $ 4.56 N/A Granted 1,470 4.35 N/A Exercised (429 ) 1.72 N/A Forfeited (178 ) 5.67 N/A Options outstanding at the end of period 13,458 $ 4.61 4.85 years Options exercisable at the end of period 8,475 $ 4.36 4.37 years

2. Finance Receivables (Tables)

2. Finance Receivables (Tables)	6 Months Ended
	Jun. 30, 2017
Finance Receivables
Financial Receivables	June 30, December 31, 2017 2016 Finance receivables (In thousands) Automobile finance receivables, net of unearned interest $ 2,310,103 $ 2,266,619 Unearned acquisition fees and originations costs 4,419 1,324 Finance receivables $ 2,314,522 $ 2,267,943
Delinquency status of finance receivables	June 30, December 31, 2017 2016 (In thousands) Delinquency Status Current $ 2,115,708 $ 2,053,759 31 - 60 days 121,354 116,073 61 - 90 days 49,094 52,404 91 + days 23,947 44,383 $ 2,310,103 $ 2,266,619
Allowance for credit losses	Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 (In thousands) (In thousands) Balance at beginning of period $ 99,255 $ 79,867 $ 95,578 $ 75,603 Provision for credit losses on finance receivables 48,550 44,423 95,717 88,619 Charge-offs (48,474 ) (41,901 ) (98,773 ) (87,834 ) Recoveries 7,984 7,779 14,793 13,780 Balance at end of period $ 107,315 $ 90,168 $ 107,315 $ 90,168
Allowance for losses on repossessed inventory	June 30, December 31, 2017 2016 (In thousands) Gross balance of repossessions in inventory $ 31,382 $ 40,069 Allowance for losses on repossessed inventory (23,076 ) (28,924 ) Net repossessed inventory included in other assets $ 8,306 $ 11,145

3. Securitization Trust Debt (T

3. Securitization Trust Debt (Tables)	6 Months Ended
	Jun. 30, 2017
Securitization Trust Debt
Securitization trust debt	Weighted Average Final Receivables Outstanding Outstanding Contractual Scheduled Pledged at Principal at Principal at Interest Rate at Payment June 30, Initial June 30, December 31, June 30, Series Date (1) 2017 (2) Principal 2017 2016 2017 (Dollars in thousands) CPS 2012-C December 2019 $ – $ 147,000 $ – $ 14,421 – CPS 2012-D March 2020 – 160,000 – 17,865 – CPS 2013-A June 2020 21,277 185,000 19,482 28,661 1.72% CPS 2013-B September 2020 29,141 205,000 26,540 37,570 2.15% CPS 2013-C December 2020 35,387 205,000 34,653 46,830 5.23% CPS 2013-D March 2021 35,962 183,000 34,333 46,345 4.52% CPS 2014-A June 2021 43,308 180,000 41,114 54,988 3.83% CPS 2014-B September 2021 59,344 202,500 58,167 75,140 3.35% CPS 2014-C December 2021 93,080 273,000 91,285 116,280 3.53% CPS 2014-D March 2022 101,294 267,500 100,325 127,307 3.74% CPS 2015-A June 2022 109,649 245,000 108,821 134,466 3.29% CPS 2015-B September 2022 126,623 250,000 125,584 153,893 3.27% CPS 2015-C December 2022 172,332 300,000 171,144 207,636 3.74% CPS 2016-A March 2023 220,103 329,460 218,351 262,260 4.07% CPS 2016-B June 2023 247,067 332,690 240,209 284,752 4.11% CPS 2016-C September 2023 250,358 318,500 244,183 285,618 3.65% CPS 2016-D December 2023 180,742 206,325 175,822 200,221 2.90% CPS 2017-A April 2024 193,575 206,320 187,641 – 3.08% CPS 2017-B September 2024 223,593 225,170 217,340 – 2.74% $ 2,142,835 $ 4,421,465 $ 2,094,994 $ 2,094,253

4. Debt (Tables)

4. Debt (Tables)	6 Months Ended
	Jun. 30, 2017
Debt Disclosure [Abstract]
Debt Outstanding	Amount Outstanding at June 30, December 31, 2017 2016 (In thousands) Description Interest Rate Revolving Maturity Warehouse lines of credit 5.50% over one month Libor (Minimum 6.50%) April 2019 $ 60,602 $ 64,352 5.50% over one month Libor (Minimum 6.25%) August 2018 41,539 26,445 6.75% over a commercial paper rate (Minimum 7.75%) November 2017 30,853 14,168 Subordinated renewable notes Weighted average rate of 7.55% and 7.50% at June 30, 2017 and December 31, 2016 , respectively Weighted average maturity of July 2019 and January 2019 at June 30, 2017 and December 31, 2016, respectively 16,080 14,949 $ 149,074 $ 119,914

5. Interest Income and Intere22

5. Interest Income and Interest Expense (Tables)	6 Months Ended
	Jun. 30, 2017
Interest Income And Interest Expense Tables
Interest income	Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 (In thousands) (In thousands) Interest on finance receivables $ 107,344 $ 101,624 $ 211,840 $198,252 Other interest income 141 85 220 120 Interest income $ 107,485 $ 101,709 $ 212,060 $198,372
Interest expense	Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 (In thousands) (In thousands) Securitization trust debt $ 20,537 $ 16,875 $ 40,617 $ 31,639 Warehouse lines of credit 2,379 2,244 4,087 4,666 Residual interest financing – 245 – 516 Subordinated renewable notes 320 363 620 727 Interest expense $ 23,236 $ 19,727 $ 45,324 $ 37,548

6. Earnings Per Share (Tables)

6. Earnings Per Share (Tables)	6 Months Ended
	Jun. 30, 2017
Earnings per share:
Computation of basic and diluted earnings per share	Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 (In thousands) (In thousands) Weighted average number of common shares outstanding during the period used to compute basic earnings per share 23,076 24,538 23,296 24,917 Incremental common shares attributable to exercise of outstanding options and warrants 4,526 4,573 4,728 4,715 Weighted average number of common shares used to compute diluted earnings per share 27,602 29,111 28,024 29,632

9. Employee Benefits (Tables)

9. Employee Benefits (Tables)	6 Months Ended
	Jun. 30, 2017
Employee Benefits
Net periodic cost (benefit)	Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 (In thousands) (In thousands) Components of net periodic cost (benefit) Service cost $ – $ – $ – $ – Interest cost 214 221 428 442 Expected return on assets (287 ) (300 ) (574 ) (600 ) Amortization of transition (asset)/obligation – – – – Amortization of net (gain) / loss 101 138 202 276 Net periodic cost (benefit) $ 28 $ 59 $ 56 $ 118

10. Fair Value Measurements (Ta

10. Fair Value Measurements (Tables)	6 Months Ended
	Jun. 30, 2017
Fair Value Disclosures [Abstract]
Estimated fair values of financial assets and liabilities	As of June 30, 2017 Financial Instrument (In thousands) Carrying Fair Value Measurements Using: Value Level 1 Level 2 Level 3 Total Assets: Cash and cash equivalents $ 15,810 $ 15,810 $ – $ – $ 15,810 Restricted cash and equivalents 118,298 118,298 – – 118,298 Finance receivables, net 2,207,207 – – 2,155,855 2,155,855 Accrued interest receivable 36,952 – – 36,952 36,952 Liabilities: Warehouse lines of credit $ 131,272 $ – $ – $ 131,272 $ 131,272 Accrued interest payable 4,094 – – 4,094 4,094 Securitization trust debt 2,081,989 – – 2,098,115 2,098,115 Subordinated renewable notes 16,080 – – 16,080 16,080 As of December 31, 2016 Financial Instrument (In thousands) Carrying Fair Value Measurements Using: Value Level 1 Level 2 Level 3 Total Assets: Cash and cash equivalents $ 13,936 $ 13,936 $ – $ – $ 13,936 Restricted cash and equivalents 112,754 112,754 – – 112,754 Finance receivables, net 2,172,365 – – 2,104,503 2,104,503 Accrued interest receivable 36,233 – – 36,233 36,233 Liabilities: Warehouse lines of credit $ 103,358 $ – $ – $ 103,358 $ 103,358 Accrued interest payable 3,715 – – 3,715 3,715 Securitization trust debt 2,080,900 – – 2,138,892 2,138,892 Subordinated renewable notes 14,949 – – 14,949 14,949

1. Summary of Significant Acc26

1. Summary of Significant Accounting Policies - Schedule of Other Income (Details-Other Income) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Other income for the period	$ 2,587	$ 3,224	$ 5,610	$ 7,210
Direct Mail Revenues [Member]
Other income for the period	1,634	2,378	3,633	5,222
Convenience Fee Revenue [Member]
Other income for the period	510	460	1,080	1,105
Recoveries on previously charged-off contracts [Member]
Other income for the period	138	122	324	365
Sales Tax Refunds [Member]
Other income for the period	215	202	412	401
Other Income [Member]
Other income for the period	$ 90	$ 62	$ 161	$ 117

1. Summary of Significant Acc27

1. Summary of Significant Accounting Policies (Details-Options outstanding) - $ / shares	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Number of Shares
Outstanding options, beginning balance	12,595,000
Granted	1,470,000
Exercised	(429,300)	(29,200)
Forfeited	(178,000)
Outstanding options, ending balance	13,458,000
Options exercisable at the end of period	8,475,000
Weighted Average Exercise Price
Outstanding options, beginning balance	$ 4.56
Granted	4.35
Exercised	1.72
Forfeited	5.67
Outstanding options, ending balance	4.61
Options exercisable at the end of period	$ 4.36
Weighted Average Remaining Contractual Term
Weighted Average Remaining Contractual Term, ending	4 years 10 months 6 days
Options exercisable at the end of period	4 years 4 months 13 days

1. Summary of Significant Acc28

1. Summary of Significant Accounting Policies (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Warrants outstanding, shares	2,000,000		2,000,000
Stock based compensation costs	$ 1,300	$ 1,200	$ 2,622	$ 2,595
Unrecognized stock-based compensation costs	9,000		$ 9,000
Unrecognized stock-based compensation costs amortization period			2 years 2 months 12 days
Aggregate intrinsic value outstanding	13,400		$ 13,400
Aggregate intrinsic value exercisable	$ 11,600		$ 11,600
Options exercised, shares			429,300	29,200
Total intrinsic value of options exercised			$ 1,300	$ 91
Shares available for future grants	2,400,000		2,400,000
Repurchase of common stock, shares repurchased			1,600,000	0
Repurchase of common stock average share price			$ 4.06
Proceeds from exercise of options			$ 738	$ 48
Options [Member]
Proceeds from exercise of options			$ 149
Surrender of option shares			30,149
Common Stock [Member]
Repurchase of common stock, shares repurchased			1,100,000
Repurchase of common stock average share price			$ 4.75
Common Stock [Member] | Open market [Member]
Repurchase of common stock, shares repurchased			1,102,410
Repurchase of common stock average share price			$ 4.74
Common Stock [Member] | Net exercises of outstanding options [Member]
Repurchase of common stock, shares repurchased			30,149

2. Finance Receivables (Details

2. Finance Receivables (Details-Finance receivables) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Finance Receivables
Automobile finance receivables, net of unearned interest	$ 2,310,103	$ 2,266,619
Unearned acquisition fees and originations costs	4,419	1,324
Finance Receivables	$ 2,314,522	$ 2,267,943

2. Finance Receivables (Detai30

2. Finance Receivables (Details-Delinquency status) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Delinquency Status
Current	$ 2,115,708	$ 2,053,759
Total financed receivables	2,310,103	2,266,619
Financing Receivables, 31 to 60 Days Past Due [Member]
Delinquency Status
Finance receivables	121,354	116,073
Financing Receivables, 61 to 90 Days Past Due [Member]
Delinquency Status
Finance receivables	49,094	52,404
Financing Receivables, Equal to Greater than 91 Days Past Due [Member]
Delinquency Status
Finance receivables	$ 23,947	$ 44,383

2. Finance Receivables (Detai31

2. Finance Receivables (Details-Allowance for finance credit losses) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Finance Receivables
Balance at beginning of period	$ 99,255	$ 79,867	$ 95,578	$ 75,603
Provision for credit losses on finance receivables	48,550	44,423	95,717	88,619
Charge-offs	(48,474)	(41,901)	(98,773)	(87,834)
Recoveries	7,984	7,779	14,793	13,780
Balance at end of period	$ 107,315	$ 90,168	$ 107,315	$ 90,168

2. Finance Receivables (Detai32

2. Finance Receivables (Details-Repossessions) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2017	Dec. 31, 2016
Finance Receivables
Gross balance of repossessions in inventory	$ 31,382	$ 40,069
Allowance for losses on repossessed inventory	(23,076)	(28,924)
Net repossessed inventory included in other assets	$ 8,306	$ 11,145

2. Finance Receivables (Detai33

2. Finance Receivables (Details Narrative) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Finance Receivables
Finance receivables	$ 23,900	$ 44,400

3. Securitization Trust Debt (D

3. Securitization Trust Debt (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2017	Dec. 31, 2016
"Securitization trust debt," and components of debt
Receivables Pledged at end of period	$ 2,142,835
Initial Principal	4,421,465
Outstanding Principal	$ 2,094,994	$ 2,094,253
CPS 2012-C [Member]
"Securitization trust debt," and components of debt
Final Scheduled Payment Date	December 2,019
Receivables Pledged at end of period	$ 0
Initial Principal	147,000
Outstanding Principal	$ 0	14,421
Weighted Average Contractual Interest Rate	0.00%
CPS 2012-D [Member]
"Securitization trust debt," and components of debt
Final Scheduled Payment Date	March 2,020
Receivables Pledged at end of period	$ 0
Initial Principal	160,000
Outstanding Principal	$ 0	17,865
Weighted Average Contractual Interest Rate	0.00%
CPS 2013-A [Member]
"Securitization trust debt," and components of debt
Final Scheduled Payment Date	June 2,020
Receivables Pledged at end of period	$ 21,277
Initial Principal	185,000
Outstanding Principal	$ 19,482	28,661
Weighted Average Contractual Interest Rate	1.72%
CPS 2013-B [Member]
"Securitization trust debt," and components of debt
Final Scheduled Payment Date	September 2,020
Receivables Pledged at end of period	$ 29,141
Initial Principal	205,000
Outstanding Principal	$ 26,540	37,570
Weighted Average Contractual Interest Rate	2.15%
CPS 2013-C [Member]
"Securitization trust debt," and components of debt
Final Scheduled Payment Date	December 2,020
Receivables Pledged at end of period	$ 35,387
Initial Principal	205,000
Outstanding Principal	$ 34,653	46,830
Weighted Average Contractual Interest Rate	5.23%
CPS 2013-D [Member]
"Securitization trust debt," and components of debt
Final Scheduled Payment Date	March 2,021
Receivables Pledged at end of period	$ 35,962
Initial Principal	183,000
Outstanding Principal	$ 34,333	46,345
Weighted Average Contractual Interest Rate	4.52%
CPS 2014-A [Member]
"Securitization trust debt," and components of debt
Final Scheduled Payment Date	June 2,021
Receivables Pledged at end of period	$ 43,308
Initial Principal	180,000
Outstanding Principal	$ 41,114	54,988
Weighted Average Contractual Interest Rate	3.83%
CPS 2014-B [Member]
"Securitization trust debt," and components of debt
Final Scheduled Payment Date	September 2,021
Receivables Pledged at end of period	$ 59,344
Initial Principal	202,500
Outstanding Principal	$ 58,167	75,140
Weighted Average Contractual Interest Rate	3.35%
CPS 2014-C [Member]
"Securitization trust debt," and components of debt
Final Scheduled Payment Date	December 2,021
Receivables Pledged at end of period	$ 93,080
Initial Principal	273,000
Outstanding Principal	$ 91,285	116,280
Weighted Average Contractual Interest Rate	3.53%
CPS 2014-D [Member]
"Securitization trust debt," and components of debt
Final Scheduled Payment Date	March 2,022
Receivables Pledged at end of period	$ 101,294
Initial Principal	267,500
Outstanding Principal	$ 100,325	127,307
Weighted Average Contractual Interest Rate	3.74%
CPS 2015-A [Member]
"Securitization trust debt," and components of debt
Final Scheduled Payment Date	June 2,022
Receivables Pledged at end of period	$ 109,649
Initial Principal	245,000
Outstanding Principal	$ 108,821	134,466
Weighted Average Contractual Interest Rate	3.29%
CPS 2015-B [Member]
"Securitization trust debt," and components of debt
Final Scheduled Payment Date	September 2,022
Receivables Pledged at end of period	$ 126,623
Initial Principal	250,000
Outstanding Principal	$ 125,584	153,893
Weighted Average Contractual Interest Rate	3.27%
CPS 2015-C [Member]
"Securitization trust debt," and components of debt
Final Scheduled Payment Date	December 2,022
Receivables Pledged at end of period	$ 172,332
Initial Principal	300,000
Outstanding Principal	$ 171,144	207,636
Weighted Average Contractual Interest Rate	3.74%
CPS 2016-A [Member]
"Securitization trust debt," and components of debt
Final Scheduled Payment Date	March 2,023
Receivables Pledged at end of period	$ 220,103
Initial Principal	329,460
Outstanding Principal	$ 218,351	262,260
Weighted Average Contractual Interest Rate	4.07%
CPS 2016-B [Member]
"Securitization trust debt," and components of debt
Final Scheduled Payment Date	June 2,023
Receivables Pledged at end of period	$ 247,067
Initial Principal	332,690
Outstanding Principal	$ 240,209	284,752
Weighted Average Contractual Interest Rate	4.11%
CPS 2016-C [Member]
"Securitization trust debt," and components of debt
Final Scheduled Payment Date	September 2,023
Receivables Pledged at end of period	$ 250,358
Initial Principal	318,500
Outstanding Principal	$ 244,183	285,618
Weighted Average Contractual Interest Rate	3.65%
CPS 2016-D [Member]
"Securitization trust debt," and components of debt
Final Scheduled Payment Date	December 2,023
Receivables Pledged at end of period	$ 180,742
Initial Principal	206,325
Outstanding Principal	$ 175,822	200,221
Weighted Average Contractual Interest Rate	2.90%
CPS 2017-A [Member]
"Securitization trust debt," and components of debt
Final Scheduled Payment Date	April 2,024
Receivables Pledged at end of period	$ 193,575
Initial Principal	206,320
Outstanding Principal	$ 187,641	0
Weighted Average Contractual Interest Rate	3.08%
CPS 2017-B [Member]
"Securitization trust debt," and components of debt
Final Scheduled Payment Date	September 2,024
Receivables Pledged at end of period	$ 223,593
Initial Principal	225,170
Outstanding Principal	$ 217,340	$ 0
Weighted Average Contractual Interest Rate	2.74%

3. Securitization Trust Debt 35

3. Securitization Trust Debt (Details Narrative) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Restricted Cash for securitization trust debt	$ 118,300
Expected finance receivable payments 2017	445,500
Expected finance receivable payments 2018	740,900
Expected finance receivable payments 2019	479,200
Expected finance receivable payments 2020	272,500
Expected finance receivable payments 2021	127,200
Expected finance receivable payments 2022	16,700
Securitization Trust Debt [Member]
Debt issuance costs	$ 13,000	$ 13,400

4. Debt (Details)

4. Debt (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2017	Dec. 31, 2016
Fair Value, Option, Qualitative Disclosures Related to Election [Line Items]
Warehouse lines of credit	$ 131,272	$ 103,358
Subordinated renewable notes	16,080	14,949
Total other debt outstanding	$ 149,074	119,914
Subordinated renewable notes [Member]
Fair Value, Option, Qualitative Disclosures Related to Election [Line Items]
Interest rate	Weighted average rate of 7.55% and 7.50% at June 30, 2017 and December 31, 2016 , respectively
Revolving Maturity date	Weighted average maturity of July 2019 and January 2019 at June 30, 2017 and December 31, 2016, respectively
Warehouse lines of credit [Member]
Fair Value, Option, Qualitative Disclosures Related to Election [Line Items]
Warehouse lines of credit	$ 60,602	64,352
Interest rate	5.50% over one month Libor (Minimum 6.50%)
Revolving Maturity date	April 2,019
Warehouse lines of credit (2) [Member]
Fair Value, Option, Qualitative Disclosures Related to Election [Line Items]
Warehouse lines of credit	$ 41,539	26,445
Interest rate	5.50% over one month Libor (Minimum 6.25%)
Revolving Maturity date	August 2,018
Warehouse lines of credit (3) [Member]
Fair Value, Option, Qualitative Disclosures Related to Election [Line Items]
Warehouse lines of credit	$ 30,853	14,168
Interest rate	6.75% over a commercial paper rate (Minimum 7.75%)
Revolving Maturity date	November 2,017
Subordinated renewable notes [Member]
Fair Value, Option, Qualitative Disclosures Related to Election [Line Items]
Subordinated renewable notes	$ 16,080	$ 14,949

4. Debt (Details Narrative)

4. Debt (Details Narrative) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
WarehouseLinesOfCreditMember
Debt issuance costs	$ 1,700	$ 1,600

5. Interest Income (Details)

5. Interest Income (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Components of interest income
Interest on Finance Receivables	$ 107,344	$ 101,624	$ 211,840	$ 198,252
Other interest income	141	85	220	120
Interest income	$ 107,485	$ 101,709	$ 212,060	$ 198,372

5. Interest Expense (Details)

5. Interest Expense (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Total interest expense	$ 23,236	$ 19,727	$ 45,324	$ 37,548
Securitization Trust Debt [Member]
Total interest expense	20,537	16,875	40,617	31,639
WarehouseLinesOfCreditMember
Total interest expense	2,379	2,244	4,087	4,666
Residual interest financing [Member]
Total interest expense	0	245	0	516
Subordinated renewable notes [Member]
Total interest expense	$ 320	$ 363	$ 620	$ 727

6. Earnings Per Share (Details)

6. Earnings Per Share (Details) - shares shares in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Earnings per share:
Weighted average common shares - basic	23,076	24,538	23,296	24,917
Incremental common shares attibutable to exercise of outstanding options and warrants	4,526	4,573	4,728	4,715
Weighted average number of common shares used to compute diluted earnings per share	27,602	29,111	28,024	29,632

6. Earnings Per Share (Details

6. Earnings Per Share (Details Narrative) - shares	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Earnings per share:
Antidilutive common stock equivalents	8,700,000	7,900,000	7,000,000	7,400,000

7. Income Taxes (Details Narrat

7. Income Taxes (Details Narrative) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
Income Tax Disclosure [Abstract]
Unrecognized tax benefits	$ 0		$ 0		$ 0
Deferred tax asset	45,200		45,200
U.S. federal deferred tax assets	34,800		34,800
State deferred tax assets	6,800		6,800
Income tax expense	$ 3,380	$ 5,053	$ 6,692	$ 10,068
Effective income tax rate	43.00%	41.00%	43.00%	41.00%

8. Legal Proceedings (Details N

8. Legal Proceedings (Details Narrative) $ in Thousands	Jun. 30, 2017USD ($)
Legal Proceedings
Litigation accrual	$ 0

9. Employee Benefits (Details)

9. Employee Benefits (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Components of net periodic cost (benefit)
Service cost	$ 0	$ 0	$ 0	$ 0
Interest cost	214	221	428	442
Expected return on assets	(287)	(300)	(574)	(600)
Amortization of transition (asset)/obligation	0	0	0	0
Amortization of net (gain)/loss	101	138	202	276
Net periodic cost (benefit)	$ 28	$ 59	$ 56	$ 118

9. Employee Benefits (Details N

9. Employee Benefits (Details Narrative) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Employee Benefits
Plan contribution	$ 0	$ 0

10. Fair Value Measurements (De

10. Fair Value Measurements (Details - Fair Value Financial Assets) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Assets:
Cash and cash equivalents	$ 15,810	$ 13,936
Restricted cash and equivalents	118,298	112,754
Finance receivables, net	2,155,855	2,104,503
Accrued interest receivable	36,952	36,233
Liabilities:
Warehouse lines of credit	131,272	103,358
Accrued interest payable	4,094	3,715
Securitization trust debt	2,098,115	2,138,892
Subordinated renewable notes	16,080	14,949
Carrying Value [Member]
Assets:
Cash and cash equivalents	15,810	13,936
Restricted cash and equivalents	118,298	112,754
Finance receivables, net	2,207,207	2,172,365
Accrued interest receivable	36,952	36,233
Liabilities:
Warehouse lines of credit	131,272	103,358
Accrued interest payable	4,094	3,715
Securitization trust debt	2,081,989	2,080,900
Subordinated renewable notes	16,080	14,949
Level 1 [Member]
Assets:
Cash and cash equivalents	15,810	13,936
Restricted cash and equivalents	118,298	112,754
Finance receivables, net	0	0
Accrued interest receivable	0	0
Liabilities:
Warehouse lines of credit	0	0
Accrued interest payable	0	0
Securitization trust debt	0	0
Subordinated renewable notes	0	0
Level 2 [Member]
Assets:
Cash and cash equivalents	0	0
Restricted cash and equivalents	0	0
Finance receivables, net	0	0
Accrued interest receivable	0	0
Liabilities:
Warehouse lines of credit	0	0
Accrued interest payable	0	0
Securitization trust debt	0	0
Subordinated renewable notes	0	0
Level 3 [Member]
Assets:
Cash and cash equivalents	0	0
Restricted cash and equivalents	0	0
Finance receivables, net	2,155,855	2,104,503
Accrued interest receivable	36,952	36,233
Liabilities:
Warehouse lines of credit	131,272	103,358
Accrued interest payable	4,094	3,715
Securitization trust debt	2,098,115	2,138,892
Subordinated renewable notes	$ 16,080	$ 14,949

10. Fair Value Measurements (47

10. Fair Value Measurements (Details Narrative) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2017	Dec. 31, 2016
Fair Value Measurements Details Narrative
Finance receivables related to reposessed vehicles in inventory	$ 31,382	$ 40,069
Valuation adjustment, loss allowance	$ 23,076	28,924
Recovery rate	26.00%
Estimated fair value and carrying amount of repossed inventory	$ 8,306	$ 11,145